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Aurora General Employees lowers assumed rate of return 50 basis points

Aurora (Colo.) General Employees’ Retirement Plan lowered it assumed rate of return to 7.25% from 7.75%, said Thomas Connell, pension plan administrator, in an email.

The $420 million pension fund’s inflation/cost-of-living assumption was also reduced to 2.75% from 3.25%.

The changes were based on advice from the pension fund’s actuary, Milliman, and its investment consultant, Callan Associates. “Both had projected lower capital market performance over the coming 10-year period, leaving it unlikely that our portfolio would reach its previous 7.75% (return) target,” Mr. Connell wrote.

That being said, the pension fund returned a net 8% for 2016, above its benchmark return of 7.8%.