California Public Employees’ Retirement System Reduces Interest Rate of Return
The California Public Employees’ Retirement System (CalPERS) Board of Administration this week voted to reduce the rate of return to 7.5 percent (from 7.75%), affirming the recommendation made by its Pension and Health Benefits Committee earlier. CalPERS Board also directed its Chief Actuary to analyze and bring back an option for consideration to phase in the increased pension costs to employers over a 2-year period. This affects state and local government workers, as well as any organization participating in the CalPERS retirement system. For more information please visit http://www.calpers.ca.gov/index.jsp?bc=/about/press/pr-2012/mar/discount-rate.xml.