National Association of State Retirement Administrators


Latest Investment Return Assumptions

Investment Return Assumption by Plan

Rates reflect all known announced rates as of July 2022. The footnotes at the bottom of the page, which reflect additional explanations, qualifications, and scheduled future developments for certain plans, are a critical component of this data set.


Plan                                                                         
Rate (%) Plan Rate (%)
Alabama ERS                                               7.45 Montana PERS 7.30
Alabama Teachers 7.45 Montana Teachers 7.30
Alaska PERS 7.25 Nebraska Schools10 7.108
Alaska Teachers 7.25 Nevada Police Officer and Firefighter 7.25
Arizona Public Safety Personnel1 7.20 Nevada Regular Employees 7.25
Arizona SRS 7.0 New Hampshire Retirement System 6.75
Arkansas PERS 7.15 New Jersey PERS 7.0
Arkansas State Highway ERS 7.50 New Jersey Police & Fire 7.0
Arkansas Teachers 7.25 New Jersey Teachers 7.0
California PERF2 6.80 New Mexico PERA 7.25
California Teachers 7.0 New Mexico Teachers 7.0
Chicago Teachers 6.75 New York City ERS 7.0
City of Austin ERS 6.75 New York City Teachers 7.0
Colorado Affiliated Local 7.0 New York State Teachers 6.95
Colorado Fire & Police Statewide 7.0 North Carolina Local Government 6.50
Colorado Municipal 7.25 North Carolina Teachers and State Employees 6.50
Colorado School 7.25 North Dakota PERS 6.5
Colorado State 7.25 North Dakota Teachers 7.25
Connecticut SERS 6.90 NY State & Local ERS 5.90
Connecticut Teachers 6.90 NY State & Local Police & Fire 5.90
Contra Costa County 7.0 Ohio PERS 6.90
DC Police & Fire 6.25 Ohio Police & Fire 7.50
DC Teachers 6.25 Ohio School Employees 7.0
Delaware State Employees 7.0 Ohio Teachers 7.0
Denver Employees 7.25 Oklahoma PERS 6.50
Denver Public Schools 7.25 Oklahoma Teachers 7.0
Fairfax County Schools 7.25 Orange County ERS 7.0
Florida RS 6.80 Oregon PERS 6.90
Georgia ERS3 7.20 Pennsylvania School Employees 7.0
Georgia Teachers 6.90 Pennsylvania State ERS 6.875
Hawaii ERS 7.0 Phoenix ERS 7.0
Houston Firefighters 7.0 Rhode Island ERS 7.0
Idaho PERS 6.30 Rhode Island Municipal 7.0
Illinois Municipal 7.25 Richmond Retirement System 7.0
Illinois SERS 6.75 San Diego City  6.50
Illinois Teachers 7.0 San Diego County 7.0
Illinois Universities 6.50 San Francisco City & County 7.20
Indiana PERF 6.25 South Carolina Police 7.0
Indiana Teachers 6.25 South Carolina RS 7.0
Iowa PERS 7.0 South Dakota RS 6.50
Kansas PERS 7.0 St. Louis School Employees 7.0
Kentucky County 6.25 St. Paul Teachers 7.50
Kentucky ERS4 5.25 Texas County & District 7.50
Kentucky Teachers 7.10 Texas ERS 7.0
LA County ERA 7.0 Texas LECOS 7.0
Louisiana Parochial Employees 6.40 Texas Municipal 6.75
Louisiana SERS5 7.25 Texas Teachers 7.0
Louisiana Teachers6 7.25 TN Political Subdivisions 6.75
Maine Local 6.50 TN State and Teachers 6.75
Maine State and Teacher 6.50 University of California 6.75
Maryland PERS 6.80 Utah Noncontributory 6.85
Maryland Teachers 6.80 Vermont State Employees 7.0
Massachusetts SERS 7.0 Vermont Teachers 7.0
Massachusetts Teachers 7.0 Virginia Retirement System 6.75
Michigan Municipal7 7.0 Washington LEOFF Plan 1 7.0
Michigan Public Schools8 6.0 Washington LEOFF Plan 2 7.0
Michigan SERS8 6.0 Washington PERS 1 7.0
Minnesota PERF 7.50 Washington PERS 2/3 7.0
Minnesota State Employees 7.50 Washington School Employees Plan 2/3 7.0
Minnesota Teachers 7.50 Washington Teachers Plan 1 7.0
Mississippi PERS9 7.55 Washington Teachers Plan 2/3 7.0
Missouri DOT and Highway Patrol 7.0 West Virginia PERS 7.25
Missouri Local 7.0 West Virginia Teachers 7.25
Missouri PEERS 7.30 Wisconsin Retirement System 6.80
Missouri State Employees 6.95 Wyoming Retirement System  6.80
Missouri Teachers 7.30    

 

Download latest return assumptions

  1. The Arizona Public Safety Personnel Retirement System administers a plan for public safety personnel comprised of three tiers depending on participants' date of hire. The rate shown applies to Tiers 1 & 2. The investment return assumption used for Tier 3 is 7.0%.​

  2. ​In February 2017 the CalPERS Board adopted a risk mitigation policy, effective beginning FY 2021, that calls for a reduction in the system’s investment return assumption commensurate with the pension fund achieving a specified level of investment return. Details are available online: https://www.calpers.ca.gov/docs/board-agendas/201702/financeadmin/item-9a-02.pdf.

  3. ​For each year in which the actual rate of investment return exceeds the target rate of return, the Georgia ERS will reduce its investment return assumption by 0.1% (10 basis points) until a target rate of return assumption of 7.0% is reached.​

  4. The Kentucky ERS is composed of two plans: Hazardous and Non-Hazardous. The rate shown applies to the plan’s Non-Hazardous plan, which accounts for more than 90 percent of the Kentucky ERS plan liabilities. The investment return assumption used for the Hazardous plan is 6.25 percent.

  5. The discount rate used to determine the FY 2022/2023 funding requirement is 7.25%, which is net of gain-sharing. The investment return assumption differs from the discount rate because of the effective cost of providing potential future ad hoc postretirement benefit increases, or gain-sharing. The investment return assumption, which includes gain-sharing, is currently 7.60%.

  6. TThe investment return assumption differs from the discount rate because of the effective cost of providing potential future ad hoc postretirement benefit increases, or gain-sharing. The investment return assumption, which includes gain-sharing, is currently 7.60%.

  7. In February 2022 the MERS Board adopted a dedicated gains policy for systematically reducing the investment return assumption when actual investment returns exceed the plan's current assumed rate of return. Whether the assumed rate of return is lowered, and the magnitude of any reduction, depends on the excess gains available and the most recent range of reasonable economic assumptions as provided by MERS' consulting actuary. Under this policy a portion of the excess returns will continue to be smoothed over a five year period, and some of the excess return will be immediately recognized to offset the increase in contributions. 

    • If the current assumed rate of return is at or above the mid-point in the range, the full amount of excess gains will be used to lower the assumption. If the current assumed rate of return is below the mid-point in the range, half of the excess gains will be used to lower the assumption. 

    • The assumed rate of return will not be reduced below the bottom of the range

    • If the ratio of Actuarial Value of Assets to Market Value of Assets is below 80% or above 120%, excess market gains will not be used to lower or buy down the rate of return, and the normal smoothing method will be applied. 

  8. Rates for the Michigan PSERS and SERS plans are subject to the Dedicated Gains Policy, a method for reducing the investment return assumption when actual investment returns exceed the assumed rate of return.

  9. A 2019 amendment to the Mississippi PERS funding policy stipulates that the investment return assumption will be reduced until it reaches the rate recommended by the actuary in the most recent experience study using investment gains based on the following parameters:

    • 2% excess return over assumed rate, lower assumption by 5 basis points

    • 5% excess return over assumed rate, lower assumption by 10 basis points

    • 8% excess return over assumed rate, lower assumption by 15 basis points

    • 12% excess return over assumed rate, lower assumption by 20 basis points

  10. The assumed rate of return for the Nebraska School Retirement System will decline by 10 basis points each year until reaching 7.0 percent effective FY 24.