Ore. pension board keeps 8 percent return rate
Thursday, July 28, 2011
PORTLAND, Ore. (AP) -- The board that oversees Oregon's Public Employees Retirement System has voted 4-1 to maintain the system's assumed rate of return at 8 percent. That's although a majority of the board said Friday they doubt the pension fund investments will generate returns averaging 8 percent annually over the long run.
The Oregonian says actual returns over the last five years have averaged only 5 percent.
The newspaper says the $59 billion pension fund has about 79 cents in assets for every dollar it will owe pensioners.
Lowering the assumed rate would have increased the amount employers have to pay into the pension fund.
Information from: The Oregonian, http://www.oregonlive.com