As US public pension funds grapple with the thorny question of what is an achievable rate of return, a survey of 126 public pension funds has revealed the median actuarial rate of return remains at 8 per cent.
A potentially bitter legal battle shaping up between a municipal hospital and Colorado’s public pension fund demonstrates the likely pressures that underfunded funds face as they are caught up in local and state government efforts to slash their budgets.
Premature efforts to eliminate the use of credit ratings agencies without an adequate alternative would increase risk to investors, warned Gregory Smith, the chief operating officer of the Public Employee’ Retirement Association of Colorado (PERA).
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