National Association of State Retirement Administrators


Latest Investment Return Assumptions

Investment Return Assumption by Plan

Rates reflect all known announced rates as of July 2024. 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 Schools 7.0
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 7.0 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 PERF 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 6.50
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 6.75 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 7.0 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 6.70 Oregon PERS 6.90
Georgia ERS 7.0 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 6.5
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 6.50 St. Paul Teachers 7.0
Kentucky ERS2 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 SERS3 7.25 Texas Teachers 7.0
Louisiana Teachers4 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 Municipal5 7.0 Washington LEOFF Plan 1 7.0
Michigan Public Schools 6.0 Washington LEOFF Plan 2 7.0
Michigan SERS 6.0 Washington PERS 1 7.0
Minnesota PERF 7.0 Washington PERS 2/3 7.0
Minnesota State Employees 7.0 Washington School Employees Plan 2/3 7.0
Minnesota Teachers 7.0 Washington Teachers Plan 1 7.0
Mississippi PERS 7.0 Washington Teachers Plan 2/3 7.0
Missouri DOT and Highway Patrol 6.50 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. 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.

  3. 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 post-retirement benefit increases, or gain-sharing. The investment return assumption, which includes gain-sharing, is currently 7.60%.

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

  5. 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. ​

 

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