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.
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