New York State Teachers’ Retirement System, Albany, will reduce its assumed rate of return to 7.5% from 8%, effective July 1, the beginning of the pension fund’s next fiscal year.
“The revised assumptions are more consistent with recent member experiences and future expectations,” John Cardillo, a spokesman for the pension fund, wrote in an e-mail. “The 7.5% assumed rate of return will be effective with the actuarial valuation as of June 30, 2015, which will be applicable to salaries paid in July 1, 2016-June 30, 2017.”
The change in the assumed rate of return was approved unanimously by the plan’s governing board Thursday.
The pension fund also reported an audited return on investment of 5.2%, net of fees, for the fiscal year ended June 30. Total assets were $109.7 billion.
The five-year annualized return, net of fees, was 12.4%, and the 10-year return, 7.2%, Mr. Cardillo wrote.
Last month, the $182.5 billion New York State Common Retirement Fund, Albany, announced a reduction in its assumed rate of return to 7% from 7.5%.