CalPERS approves plan to gradually reduce assumed rate of return to 6.5%

2015-11-19T17:08:39-08:00November 19th, 2015|Categories: Pension Funding|Tags: , |

CalPERS’ board on Wednesday approved a risk-reduction plan that will shift investments away from equities and could reduce the expected rate of return of the nation’s largest pension fund to 6.5% from 7.5%. The reduction could take more than 20 years to occur, prompting some criticism during the meeting that the pension fund is acting too slowly. Equities make up around half of CalPERS’ $289.3 billion portfolio as of Sept. 30, and the plan is aimed at moving money [...]