Directors Guild of America - Producer Pension and Health Plans, Los Angeles, is reducing its assumed rate of return of its basic defined benefit plan to 7.15% from 7.25% effective Jan. 1, 2018, the plan announced in a newsletter on its website.
The plan's board of trustees approved the change, which is the second such change since the plan reduced the assumed rate of return from 7.5% in 2011, following a recommendation by the finance committee due to the plan's healthy funded status.
The plan's one-year return as of Dec. 31 was 7.2% net of fees.
As of May 31, the actual allocation was: 23.8% diversification (alternatives), 21% fixed income, 18.9% domestic equity, 15.9% international equity, 5.5% real estate, 5.4% higher risk/higher return (alternatives), 3.8% private equity and the rest in cash.
Further information about the plan's funded status was not immediately available.
As of Dec. 31, 2015, the Directors Guild of America - Producer Pension Plan Basic Benefit Plan had $1.4 billion in assets, according to the plan's most recent Form 5500 filing.
A plan spokesman could not immediately provide further information.