US. Public pension plans stay on cost-efficient course – NCPERS
Public retirement systems continued to manage expenses in fiscal 2021, with many also reducing their assumed rates of return, according to an annual study released Wednesday by the National Conference on Public Employee Retirement Systems.
In fiscal 2021, the pension systems averaged 54 basis points in administrative costs and investment manager fees, down from 60 basis points the year before.
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Systems lowered their assumed rates of returns to an average 7.07%, from 7.26% a year earlier. Among all respondents, 70% said they lowered those rates of return during the year, above the 52% that had lowered their assumed rates of return in fiscal 2020.
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NCPERS also said in the study that 40% of respondents raised their benefit age and service requirements, up from 32% the year before, and 37% increased employee contributions, up from 31%.
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Many responding funds did not offer a cost-of-living adjustment in the most recent fiscal year, and the average adjustment was 1.7%, the same as the previous year.
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