Illinois’s Biggest Pension Cuts Investment Return Rate to 7%
- Pension board votes after actuary report recommends change
- Change will force state to pour more money into fund
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Illinois’s largest public pension reduced its forecast for how much it expects to earn from its investments each year, a step that will likely force the state to boost its annual contributions to the cash-strapped retirement plan.
The Board of Trustees for the Illinois Teachers’ Retirement System, which serves almost 400,000 teachers, voted Friday to cut the assumed rate of return to 7 percent from 7.5 percent. The rate assumption is used to decide how much taxpayer money needs to be set aside each year to cover pension checks due in the coming decades.