PERAC Memo #10 - 1998: Target Rate of Return

Target Rate of Return

Summary

PERAC Memo #10/1998 announces a survey of all Massachusetts contributory retirement systems comparing each board's actuarial rate of return assumption to the target rate of return derived from its most recently approved asset allocation. Boards are required to complete the short form provided—listing the system name, actuarial assumption, and target rate of return—and return it to PERAC by mail or fax.

Full Text

PERAC MEMO #10/1998 M E M O R A N D U M TO:All Retirement Boards FROM:Joseph I. Martin, Deputy Executive Director RE:Target Rate of Return DATE:February 27, 1998 The Public Employee Retirement Administration Commission (PERAC) is conducting a survey of all Massachusetts Contributory Retirement Systems with regard to the board’s target rate of return on investment and the actuarial rate of return assumption. The target rate of return on investment, which is a different calculation from the actuarial rate of return assumption, is calculated in conjunction with the board’s asset allocation and expected return of each asset class. The target rate of return is typically calculated by reviewing the historical rate of return attributed to each class in conjunction with the expected allocation to each asset class. In this regard, please complete the following section: Retirement System______________________ System Actuarial Rate of Return Assumption______________________ Target Rate of Return As Expected From Your Most Recent Board Approved Asset Allocation______________________ Please mail the completed form to this office or fax it to (617) 227-2320. If you have any questions, please call Robert Shaw, Director of the Pension Investment Advisory Unit at (617) 727-9380 ext. 637. /msoffice