The combination of reality and responsible caution is getting expensive for Marin public agencies that provide their workers with generous pensions.
The member agencies in the Marin County Employees’ Retirement Association are getting the latest dose and the association’s board voted to reduce its annual assumption rate on investment returns to 6.75%. It is a quarter of one percent reduction, but one that will cost agencies such as the county and the city of San Rafael thousands of dollars every year.
It recognizes a combination of expected returns on its stock market and real estate investments and that the number of pensioners is not only growing, but they are living longer and drawing more from the fund.
Living longer may be great news for the retirees, but it is an increased cost for MCERA.
Author(s): MARIN IJ EDITORIAL BOARD
Publication Date: 28 January 2021
Publication Site: Marin Independent Journal