Milwaukee City Employes' Retirement System decreased its annual assumed rate of return to 7.5%, confirmed Jerry Allen, executive director, in an email.
The $5.3 billion pension fund's previous assumed rate of return was 8% for 2018 through 2022, and then 8.25% thereafter, Mr. Allen said.
He said the rate was reduced based on advice from actuarial consultant Cavanaugh Macdonald Consulting and investment consultant Callan due in part to updated capital market assumptions for 2019.
As of March 31, the pension fund's actual allocation was 47.4% public equities, 24.4% fixed income, 11.1% real assets, 9.4% absolute return, 7.2% private equity and the rest in cash.
The pension fund's funding ratio was 89.9% as of Jan. 1, 2018, according to its most recently available actuarial valuation report.