The CalSTRS board was told this month that financial experts are
forecasting investment earnings of 7 percent a year or less during the
next decade, below the 7.5 percent assumed by the pension fund. If the new forecast turns out to be correct, long-sought legislation
in June that phases in a $5 billion CalSTRS rate increase over the next
seven years could fall short of the goal of projecting full funding in
three decades.
It’s even possible that with new power granted by the legislation
the California State Teachers Retirement System board could, in three to
seven years, add another rate increase for the state and school
districts to get full funding back on track. The new forecast from eight consultants and five asset managers also
casts a shadow on the 7.5 percent earnings assumptions of the
California Public Employees Retirement System and the UC Retirement
Plan...
Full story at http://calpensions.com/2014/10/27/experts-tell-calstrs-earnings-may-fall-short/
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