Despite a 32% investment return in the last fiscal year, Marin County’s public pension fund is playing it safe.
The board of the Marin County Employees’ Retirement Association decided to factor in the extraordinary gain over four years rather than immediately when assigning annual employer contributions.
The association includes Marin County and eight other public entities. Its net investment return was $829.8 million for the fiscal year that ended June 30.
Last year, when the association’s board voted to cut the fund’s assumed annual rate of return from 7% to 6.75%, Block advocated reducing it to 6%. At that time, the association also lowered its assumed annual rate of inflation from 2.75% to 2.5%.
The Cheiron actuaries, however, said the association’s assumptions regarding inflation and the annual rate of return remain valid.
Author(s): Richard Halstead
Publication Date: 16 Jan 2022
Publication Site: Marin Indepedent