Calpers board lowers fund’s return target
canada goose SAN canada goose uk black friday FRANCISCO, March 14 (Reuters) canada goose coats on sale The board of California pension fund for public employees voted on Wednesday to lower the fund assumed rate of return, a move that will increase contributions to the fund from government employers across the state who use its services. canada goose
buy canada goose jacket cheap The board of Calpers, the $235 billion California Public Employees Retirement System, approved lowering the rate to 7.5 canada goose clearance sale percent from its longstanding rate of 7.75 percent a day after buy canada goose jacket cheap the fund pension and health benefits committee endorsed a reduction. buy canada goose jacket cheap
canada goose store Calpers staff had recommended dropping the rate to 7.25 percent. But fund President Rob Feckner said that would be too burdensome for government employers that pay into the fund including state agencies, canada goose uk outlet school districts and uk canada goose outlet local governments at a time when their finances remain pressured by Canada Goose online weak revenue. canada goose store
Calpers, however, needs to update its so called discount rate to take into consideration economic prospects that could limit the fund returns, Feckner said.
Canada Goose sale understand the impact this will have on our employers in meeting contribution requirements, Feckner said. current canadian goose jacket economic uk canada goose conditions impelled us to make this change Canada Goose Parka now, and our actuaries will continue to evaluate the discount rate in the coming years. Canada Goose sale
Canada Goose Parka The decision in favor of a new rate coincides with the three year anniversary of Joseph Dear arriving at Calpers to take the role of its chief investment officer, as well as the value of the fund assets sinking to a recession low of about canada goose $160 billion, down from a peak of about $260 billion in October 2007. Canada Goose Parka
Canada Goose Outlet One of Dear top priorities has been to better position the pension system to navigate and withstand risks to its Canada Goose Jackets investment portfolio. It includes stocks, fixed income, commodities, real estate, infrastructure, private equity, venture capital and hedge fund investments. Canada Goose Outlet
canada goose black friday sale A more resilient fund would be able to better meet its rate of return target while mitigating the potential for steep losses during economic and market downturns. canada goose black friday sale
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cheap Canada Goose Former state Canada Goose Online lawmaker Joe Nation, now at the cheap Canada Goose Stanford Institute for Economic Policy Research, said in a buy canada goose jacket report in December that if the next 30 years mirror roughly the last 30, Calpers would face even odds of earning a return of at least 7.1 percent per year. cheap Canada Goose
canada goose coats on sale The fund odds of a 7.75 canada goose coats percent return per year over the same period were lower, at 42.1 percent, Nation added. canada goose coats on sale
Canada Goose online congratulate the canada goose black friday sale (Calpers) board in moving in the right direction but I wish it could be a larger step, Nation said, adding that the pension fund discount rate should, at the most, be about 6.5 percent. Canada Goose online
buy canada goose jacket most economists Canada Goose Outlet here at SIEPR would argue with me that even overly optimistic, Nation said. buy canada goose jacket
canada goose clearance Calpers has countered such criticism by pointing to its long term results, noting that over a 20 year period through June 2011 it earned an average annual return of 8.4 percent and that the value of its portfolio is up substantially from its March 2009 low. canada goose clearance
canada goose clearance sale Local government officials lobbied Calpers not to drop its assumed rate of return as that would raise their pension costs at the same time they are looking to clamp down on spending, including on pensions, which are among the fastest rising expenses for municipalities. canada goose clearance sale
canada goose deals Stockton, canada goose clearance California, which could file for Chapter 9 bankruptcy protection if a fiscal restructuring plan that includes defaulting on some debt payments and seeking concessions from major bondholders, employees and retirees doesn work out, canada goose uk shop expects an canada goose factory sale additional $730,000 cost from a lower Calpers discount rate, according to a city spokeswoman. canada goose deals
Canada Goose Jackets In Canada Goose sale a nod to concerns about ripple effects of a lower rate, Calpers board directed the fund chief actuary to plan for a potential 2 year period for phasing in increased pension costs to ease their financial cheap canada goose uk burden. Canada Goose Jackets
Calpers projects the new rate will increase pension expenses in the state budget by $167 million in the next fiscal year. Schools districts, many of them mailing notices of potential layoffs to teachers and other employees ahead of a March 15 notification deadline, would see their pension expenses increase by $137 million.
canada goose coats Other government agencies with retirement plans managed by Calpers would see their contributions to the fund increase in the following fiscal canada goose jacket year. (Reporting By Jim Christie; Editing by Dan Grebler) canada goose coats.
