Anchorage (Alaska) Police and Fire Retirement System lowered its assumed rate of return to 7% from 7.7%, said Edward Jarvis, director. The change was approved at Wednesday's board of trustees meeting at the recommendation of the retirement system's actuary.
Mr. Jarvis said the retirement system had previously been on a glidepath to lower its assumed rate of return to 7.6% in 2018 and 7.5% in 2019, but decided to lower it to 7% now.
The board also approved extending the amortization period for two of the system's three underlying pension plans to 20 years from 15 years currently. The three plans, which have $337 million in assets combined, were closed to new employees in 1995.
Under the old amortization periods and assumed rate of return, the plans faced $75 million in unfunded liabilities combined as of Jan. 1.