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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