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Oklahoma Public Employees tweaks equity allocations, lowers assumed rate of return

Oklahoma Public Employees Retirement System, Oklahoma City, tweaked its target asset allocation and lowered its assumed rate of return, said Joseph A. Fox, executive director, in an email.

The new targets are 40% U.S. equity (down from 44% previously), 32% fixed income (unchanged) and 28% non-U.S. equity (up from 24%).

Separately, the pension fund board approved lowering its assumed rate of return to 7% from 7.25%, its inflation assumption to 2.75% from 3% and its real wage growth assumption to 0.75% from 1%. For its mortality assumptions, the pension fund will also move to a modified 2014 table from a 2000 table. The asset allocation changes were recommended by the pension fund's investment consultant, Verus Advisory, and follow an asset-liability study. The economic and demographic assumption changes were recommended by the pension fund's actuary, Cavanaugh Macdonald Consulting.

Oklahoma PERS administers roughly $9 billion in defined benefit assets and roughly $1 billion in defined contribution assets.