The California Public Employees' Retirement System, or CalPERS, board said this week it prefers to switch its investment portfolio over to a less risky, lower yielding option, but said it would like to keep the discount rate used to offset future pension costs at 7.5 percent or higher.
CalPERS, one of the largest pensions in the country, took a $100 billion investment loss during the recession. The organization has spent the last two years trying to find a way to reach full funding of its pension plans in 30 years.
It lowered the discount rate from 7.75 percent to 7.5 percent in March last year, which triggered an employer rate increase. A second rate increase was approved in April.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
