Lower the Pension Plan Benchmark? Well, Not So Easy
A lot of assumed return rates are unrealistically high. But lowering them can turn a retirement program into a political buzzsaw. Some plans just say no to that idea.
Tag: Assumed Rate of Return
Research
State Pension Funds Adjust to ‘New Normal’ of Lower Returns
Some states employ clever tactics to compensate for reduced return on assets.
Risk
New York Cuts Investment Return Assumptions to 6.8%
DiNapoli says a ‘more conservative approach’ needed for lower return environment.
Risk
Oregon PERS Keeping Assumed Rate at 7.2%
Past returns over five years are lower, at 6.5% annually. The fund cites investing uncertainty in standing pat.
Asset Allocation
Ohio PERS Advances New Asset Allocation Studies
$100 billion pension debates new approaches after reducing assumed rate of return twice in recent periods.
100 Largest Funds Cutting Assumptions
Funding levels improving, but market volatility left some scars.
US Corporate Pensions Will Likely Miss Return Assumptions
Investment performances miss mark for third time in 10 years.
Public Pension Return Assumptions Fall to All-Time Low
Lowered projections could increase financial burden on state, local governments.