percentage point: The move would squeeze the budgets of public authorities and employees but secure funding for retirees, according to Global Times China. If the US government-pension bellwether can do it, others will follow. The 300 billion California public employees' pension manager is considering cutting its investment-return assumption. Public-pension funds in the US have long relied on unrealistic investment assumptions, but the financial crisis and lackluster market performance have exposed that game. Annualized returns were 5.1 percent over the past 10 years. CalPERS took a baby step in 2012 by lowering its return assumption by 0.25 percentage point, to 7.5 percent, but the fund generated a return of just 0.61 percent in the 12 months ended June 30.
(news.financializer.com). As
reported in the news.
Tagged under percentage point, investment assumptions topics.