The Board of Retirement voted to lower the assumed rate of return from 7 percent to 6.75 percent. By lowering the assumed rate of return, the Board increases the probability the adopted asset allocation will generate returns that meet or exceed the assumed rate and the likelihood that SJCERA’s funding progress will continue to improve over time. While the demographic assumption changes more than offset the cost of lowering the assumed rate of return on the whole, a few employers and employee groups may see a slight increase in their 2023 contribution rates because the demographic assumption changes affect different groups differently.
