California Public Employees' Retirement System, Sacramento, will consider lowering its assumed rate of return to 7.25% from 7.75%, according to agenda materials for the $233.4 billion retirement system's March 13 pension and health benefits committee meeting.
The committee will be asked to lower the discount rate, which would equate to a real rate of return of 4.5%, according to the agenda materials.
If the committee approves the staff's proposal to lower the rate, it will go to the full board of the $233.4 billion CalPERS on March 14, said Wayne Davis, spokesman, in an e-mailed response to questions.
The discount rate assumption is based on a price inflation assumption that would be reduced to 2.75% from 3%.
