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April 21, 2018      1:14 PM

TRS board deadlocks over decision to reduce rate of return on investments

Good returns are likely to come to an end in the future; as one board member put it: TRS has spent too long paying rent with a credit card…but to lower the rate to 7.5 percent or 7.25 percent would blow a big hole in the contribution side of the equation

The Teacher Retirement System board was deadlocked on Friday over a vote to decrease the rate of return on pension fund investments, pushing a decision off to a July board meeting.

A growing number of new teachers and better-than-average returns on the pension fund has made it easy for TRS to maintain an 8 percent rate of return.

A recent actuarial study indicates 7.25 percent, or even 7 percent might be better options for long-term solvency.

By Kimberly Reeves

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