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Pension Funds

Chicago Public School Teachers to lower assumed return rate to 7% next fiscal year

Chicago Public School Teachers' Pension & Retirement Fund is lowering its assumed actuarial rate of return to 7% from 7.25%, said Angela Miller-May, chief investment officer, in an email.

The change will be effective at the end of the current fiscal year on June 30, 2019, and was approved by the $10.8 billion pension fund's board at its Sept. 20 meeting following the recommendation of its actuary, Gabriel Roeder Smith.

For the fiscal year ended June 30, the pension fund returned a net 8.69%, 63 basis points above its benchmark. The pension fund returned a net 13.6% for the fiscal year ended June 30, 2017.

For the three, five and 10 years ended June 30, the pension fund returned an annualized net 7.28%, 8.52% and 6.41%, respectively, compared to their respective benchmarks of 7.2%, 8.22% and 6.42%.

As of June 30, the actual allocation was 32% international equities, 31% domestic equities, 22% fixed income, 7% real estate, 3% each cash and private equity, and 2% infrastructure.