(Bloomberg) The California Public Employees’ Retirement System, the largest U.S. pension plan, should reduce its assumed return rate to 7 percent from 7.5 percent over the next three years amid long-term projections for slow growth and unfavorable demographics, according to its chief financial officer.
Cheryl Eason, CFO for the $303 billion retirement system, proposed starting with a reduction to 7.375 percent in fiscal 2017-2018 that will allow agencies to prepare for the change in the fiscal year starting June 30, with additional target reductions to follow.
