New York State Common Retirement Fund lowers assumed rate of return to 5,9 percent

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The Comptroller of the New York State, Thomas DiNapoli, lowered the assumed rate of return of the New York State Common Retirement Fund to 5,9% from 6,8%.

In previous years the fund’s long-term assumed rate of return was reduced to 7,5% (from 8%) in 2010 and continued to reduce it further. The median assumed rate of return of U.S. public pension funds is 7% (Source: NASRA – National Association of State Retirement Administrators).

Michael R. Dutcher Retirement Systems Actuary: “I recommend that we take advantage of the stellar FY 2021 CRF performance and implement a market restart while reducing the assumed return from 6.8% to 5.9%.” ANNUAL REPORT TO THE COMPTROLLER ON ACTUARIAL ASSUMPTIONS.

The FY 2021 investment rate of return, as reported by the PICM is 33.55%. The 3, 5, 10, and 20-year returns are 11.00%, 11.17%, 9.19%, and 7.65% respectively.

 

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