CalPERS Predicts 5.8% Return Under New Allocation, Far Short of 7% Goal

The California Public Employees’ Retirement System is expecting a significantly lower annual investment return under its newly-adopted portfolio asset allocation. According to documents released Monday, the pension fund is now banking on 5.8 percent, which is far lower than the previous assumption of a 7 percent rate of return by 2020.

The new and much more cautionary asset allocation was adopted five months ago and announced in December. It will be reviewed again in 2018.

Reuters has more on the story, including a statement from CalPERS spokesman Megan White and reactions from pension analysts.


Comments

Top Stories

Thursday, March 23, 2017 - 05:36

Cities across the globe are showing solidarity with London after a terrorist killed three people and injured dozens of others outside the British Parliament on Wednesday.

Rev & Tax

Thursday, March 16, 2017 - 06:13

With soaring retirement costs and a projected $100 million annual deficit by Fiscal Year 2019-20, the City of Oakland is standing at a financial precipice that could thrust it straight into recessi