National Association of State Retirement Administrators


Latest Investment Return Assumptions

Investment Return Assumption by Plan

As of February 2019


Plan                                                                         
Rate (%) Plan Rate (%)
Alabama ERS                                               7.75   7.25
Alabama Teachers 7.75 Missouri Teachers 7.60
Alaska PERS 8.0 Montana PERS 7.65
Alaska Teachers 8.0 Montana Teachers 7.75
Arizona Public Safety Personnel 7.30 Nebraska Schools 7.50
Arizona SRS 7.50 Nevada Police Officer and Firefighter 7.50
Arkansas PERS 7.15 Nevada Regular Employees 7.50
Arkansas State Highway ERS 8.0 New Hampshire Retirement System 7.25
Arkansas Teachers 7.50 New Jersey PERS7 7.50
California PERF1 7.0 New Jersey Police & Fire7 7.50
California Teachers 7.0 New Jersey Teachers7 7.50
Chicago Teachers 7.0 New Mexico PERA 7.25
City of Austin ERS 7.50 New Mexico Teachers 7.25
Colorado Affiliated Local 7.0 New York City ERS 7.0
Colorado Fire & Police Statewide 7.0 New York City Teachers 7.0
Colorado Municipal 7.25 New York State Teachers 7.25
Colorado School 7.25 North Carolina Local Government 7.0
Colorado State 7.25 North Carolina Teachers and State Employees 7.0
Connecticut SERS 6.90 North Dakota PERS 7.75
Connecticut Teachers 8.0 North Dakota Teachers 7.75
Contra Costa County 7.0 NY State & Local ERS 7.0
DC Police & Fire 6.50 NY State & Local Police & Fire 7.0
DC Teachers 6.50 Ohio PERS 7.20
Delaware State Employees 7.0 Ohio Police & Fire 8.0
Denver Employees 7.75 Ohio School Employees 7.50
Denver Public Schools 7.25 Ohio Teachers 7.45
Fairfax County Schools 7.50 Oklahoma PERS 7.0
Florida RS 7.40 Oklahoma Teachers 7.50
Georgia ERS2 7.40 Orange County ERS 7.0
Georgia Teachers 7.50 Oregon PERS 7.20
Hawaii ERS 7.0 Pennsylvania School Employees 7.25
Houston Firefighters 7.0 Pennsylvania State ERS 7.25
Idaho PERS 7.0 Phoenix ERS 7.50
Illinois Municipal 7.25 Rhode Island ERS 7.0
Illinois SERS 7.0 Rhode Island Municipal 7.0
Illinois Teachers 7.0 Richmond Retirement System 7.0
Illinois Universities 6.75 San Diego County 7.25
Indiana PERF 6.75 San Francisco City & County 7.4
Indiana Teachers 6.75 South Carolina Police 7.25
Iowa PERS 7.0 South Carolina RS 7.25
Kansas PERS 7.75 South Dakota RS 6.50
Kentucky County 6.25 St. Louis School Employees 7.50
Kentucky ERS3 5.25 St. Paul Teachers 7.50
Kentucky Teachers 7.50 Texas County & District 8.0
LA County ERA 7.25 Texas ERS 7.50
Louisiana Parochial Employees 6.75 Texas LECOS 7.50
Louisiana SERS4 7.65 Texas Municipal 6.75
Louisiana Teachers4 7.65 Texas Teachers 7.25
Maine Local 6.75 TN Political Subdivisions 7.25
Maine State and Teacher 6.75 TN State and Teachers 7.25
Maryland PERS 7.45 Utah Noncontributory 6.95
Maryland Teachers 7.45 Vermont State Employees 7.50
Massachusetts SERS 7.35 Vermont Teachers 7.50
Massachusetts Teachers 7.35 Virginia Retirement System 7.0
Michigan Municipal 7.75 Washington LEOFF Plan 1 7.50
Michigan Public Schools5,6 6.80 Washington LEOFF Plan 2 7.40
Michigan SERS6 6.70 Washington PERS 1 7.50
Minnesota PERF 7.50 Washington PERS 2/3 7.50
Minnesota State Employees 7.50 Washington School Employees Plan 2/3 7.50
Minnesota Teachers 7.50 Washington Teachers Plan 1 7.50
Mississippi PERS 7.75 Washington Teachers Plan 2/3 7.50
Missouri DOT and Highway Patrol 7.0 West Virginia PERS 7.50
Missouri Local 7.25 West Virginia Teachers 7.50
Missouri PEERS 7.60 Wisconsin Retirement System 7.0
Missouri State Employees 7.25 Wyoming Retirement System 7.0

 

  1. 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.

  2. ​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. 

  3. 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.

  4. The Louisiana State Employees’ Retirement System and Teachers’ Retirement System are reducing their discount rate from 7.75 percent to 7.50 percent by 2021 in annual increments of 0.05 percent. The discount rate used to determine the FY 2018/2019 funding requirement is 7.65%, which is net of gain-sharing. The investment return assumption, which includes gain-sharing, is reducing incrementally to 7.90% by 2021.

  5. ​​The Michigan Public School Employees’ Retirement System administers three plans: a defined benefit plan and two hybrid plans (Pension Plus and Pension Plus 2). The rate shown applies to the defined benefit plan and the Pension Plus Plan. The investment return assumption used for the Pension Plus 2 plan is 6.0 percent. 

  6. 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.

  7. The assumed rate of return for the New Jersey PERS, Police & Fire, and Teachers plans is scheduled to decrease to 7.3 percent for FY 21 and FY 22, and to 7.0 percent effective FY 23.