Calstrs Should Cut Assumed Return to 7.5%, Actuary Recommends
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The California State Teachers’ Retirement System, the second-largest U.S. public pension, should lower its assumed annual rate of return to 7.5 percent from the current target of 7.75 percent, its actuary said.
The board of the $144.8 billion fund is scheduled to vote Feb. 2 on the recommendation, which would add $5.9 billion to its $56 billion funding shortfall, according to a report by Milliman Inc., the fund’s consulting actuary.