Colorado Public Employees' Retirement Association, Denver, lowered its assumed rate of return to 7.5% from 8%, confirmed spokeswoman Katie Kaufmanis.
The board of the $42.3 billion pension plan completed its annual review of actuarial assumptions on Friday. It also lowered the long-term inflation expectation to 2.8% from 3.5%.
The board heard recommendations from its actuary, Cavanaugh Macdonald Consulting, as well as from Buck Consultants, which was hired to provide an independent recommendation.
The pension plan returned 8.4% annualized for the 10 years ended Dec. 31, and 9.4% for the past 30 years.