National Association of State Retirement Administrators


Latest Investment Return Assumptions

Investment Return Assumption by Plan

As of June 2018

Plan                                                                          Rate (%) Plan Rate (%)
Alabama ERS                                               7.75 Missouri State Employees 7.35
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 PERS8 7.50
California PERF1 7.25 New Jersey Police & Fire8 7.50
California Teachers2 7.0 New Jersey Teachers8 7.50
Chicago Teachers 7.75 New Mexico PERA9 7.51
City of Austin ERS 7.50 New Mexico Teachers 7.25
Colorado Affiliated Local 7.50 New York City ERS 7.0
Colorado Fire & Police Statewide 7.50 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 7.50
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 7.50 Oklahoma Teachers 7.50
Georgia ERS3 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 7.50 Rhode Island ERS 7.0
Illinois SERS 7.25 Rhode Island Municipal 7.0
Illinois Teachers 7.0 San Diego County 7.25
Illinois Universities 6.75 San Francisco City & County 7.46
Indiana PERF 6.75 South Carolina Police 7.25
Indiana Teachers 6.75 South Carolina RS 7.25
Iowa PERS 7.0 South Dakota RS 6.50
Kansas PERS 7.75 St. Louis School Employees 7.50
Kentucky County 6.25 St. Paul Teachers 7.50
Kentucky ERS4 5.25 Texas County & District 8.0
Kentucky Teachers 7.50 Texas ERS 7.50
LA County ERA 7.25 Texas LECOS 7.50
Louisiana Parochial Employees 7.0 Texas Municipal 6.75
Louisiana SERS5 7.65 Texas Teachers 8.0
Louisiana Teachers5 7.65 TN Political Subdivisions 7.25
Maine Local 6.875 TN State and Teachers 7.25
Maine State and Teacher 6.75 Utah Noncontributory 6.95
Maryland PERS6 7.45 Vermont State Employees 7.50
Maryland Teachers6 7.45 Vermont Teachers 7.50
Massachusetts SERS 7.35 Virginia Retirement System 7.0
Massachusetts Teachers 7.35 Washington LEOFF Plan 110 7.50
Michigan Municipal 7.75 Washington LEOFF Plan 211 7.50
Michigan Public Schools7 7.05 Washington PERS 110 7.50
Michigan SERS 7.0 Washington PERS 2/310 7.50
Minnesota PERF 7.50 Washington School Employees Plan 2/310 7.50
Minnesota State Employees 7.50 Washington Teachers Plan 110 7.50
Minnesota Teachers 7.50 Washington Teachers Plan 2/310 7.50
Mississippi PERS 7.75 West Virginia PERS 7.50
Missouri DOT and Highway Patrol 7.75 West Virginia Teachers 7.50
Missouri Local 7.25 Wisconsin Retirement System 7.20
Missouri PEERS 7.60 Wyoming Retirement System 7.0

 

  1. CalPERS is reducing its investment return assumption from 7.50 percent to 7.0 percent over three years. 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. CalSTRS is reducing its investment return assumption from 7.50 percent to 7.0 percent over two years.

  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 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.

  6. The assumed rate of return for the Maryland Public Employees’ Retirement System and Teachers Retirement Systems is scheduled to decrease to 7.45 percent beginning July 1, 2018.

  7. 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. The investment return assumption used for the Pension Plus plan is 7.0 percent, and 6.0 percent for Pension Plus 2.

  8. 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. 

  9. Reflects a weighted average rate based on 7.25 percent for FY17-26 and 7.75 percent thereafter.

  10. For all Washington State plans except LEOFF Plan 2, the assumed rate of return is scheduled to decrease to 7.5 percent for the 2019-21 biennium.

  11. The assumed rate of return for the Washington LEOFF Plan 2 is scheduled to decrease to 7.4 percent for the 2019-2021 biennium.