Calpers Should Cut Assumed Return to 7.25%, Actuary Says
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The California Public Employees’ Retirement System, the largest U.S. public pension, may cut its assumed rate of return on assets for the first time since the global recession dragged down stock and real-estate prices.
Actuary Alan Milligan recommended trimming the annual return estimate yesterday to 7.25 percent from 7.75 percent, potentially driving up what the fund, known as Calpers, requires from taxpayers to provide benefits for more than 1.6 million employees, retirees and their families.