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Lembo: Extra pension payments mean big savings now — and down the road

Lembo: Extra pension payments mean big savings now — and down the road
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Ohio School Employees trims assumed rate of return

Ohio School Employees trims assumed rate of return Bloomberg Ohio School Employees Retirement System, Columbus, lowered its assumed rate of return to 7% from 7.5% following a five-year experience study. The $16.6 billion pension fund s board at its April 15-16 meeting approved the change based on the recommendation of actuarial consultant Cavanaugh Macdonald Consulting, spokesman Tim Barbour said in an email. The overall change in return assumptions was due to the consultant s recommendation to lower the price inflation assumption to 2.4% from 3%, which was partially offset by the recommendation to raise the real rate of return to 4.6% from 4.5%. According to a summary report of the experience study, while SERS funding ratio would be lowered by the lower return assumption, it would do so by only 62 basis points, to 70.87% from 71.49%.

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