Kansas considers lowering pension system's rate of return
TOPEKA, Kan. (AP) — Officials are considering lowering the expected rate of return for Kansas' public employee pension investments in a move that could further strain the state's budget.
The Kansas Public Employee Retirement System has assumed an annual return on investment of 8 percent for three decades, The Topeka Capital-Journal (http://bit.ly/2eXNdvj) reported. A lower expected return on investments would mean taxpayers and possibly employees would need to chip in more money.
Consultants have been meeting with the pension's board for months to weigh options. A final decision might be made at the Nov. 18 meeting or put off until January.
"They're in the thick of considering it," said Alan Conroy, executive director of KPERS, adding that the investment return appraisal is among the fundamental assumptions reassessed every three years by the board. The system's return averaged slightly above the target during the last quarter century despite swings in the market.
Read more: http://www.salina.com/news/state/kansas-considers-lowering-pension-system-s-rate-of-return/article_4f7cea64-998e-5561-b918-b4251bb43721.html
