Despite the fact that a number of Texas’ 93 state and localpension funds reduced their target rate beloweight percent, a new report from the Texas Association ofPublic Employee Retirement Systems says that the funds combined in 2016–2017 to maintainpositive trend performance in the key metric recommended by theTexas Pension Review Board.

The reduction in the target rate, the report finds, despitebeing a conservative move that, “mathematically, could have movedpension systems in undesirable directions,” did not interrupt the“steady trend data.”

According to the report, TEXPERS based its assessment on thePRB’s year-over-year comparisons of pension funds’ amortizationperiods—the number of years needed to pay off all present andfuture projected benefits to employees.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.