KCERA Announces Assumed Rate of Return to Hold Steady at 7.25%

The Board of Retirement of the Kern County Employees’ Retirement Association has voted to keep the assumed rate of return steady at 7.25% for the next three years.  This will save the County of Kern over 50 million dollars in retirement contributions over the next three years, and save additional retirement contributions for other plan sponsors including Kern Medical, Kern County Superior Court, and many other plan sponsors.

The vote was part of the Board’s review of the tri-annual Actuarial Experience Study, which is conducted by KCERA’s actuary, Segal.  The Experience Study is conducted once every three years to review the recent experience of the plan, and to make adjustments to the economic and demographic assumptions affecting the future of the plan.  Although the inflation assumption was lowered, the investment outlook was increased because of the work done by KCERA’s investment team, led by Chief Investment Officer Daryn Miller, CFA.  Upon staff’s recommendation, the Board approved changes to the asset allocation in April of this year, which led to improvement of the investment outlook.

“We are very fortunate to have Daryn Miller here at KCERA, and I look forward to the continued development of our investment team to manage investment risk and continue to add value to the fund, which currently stands at $4.4 billion,” said Rick Kratt, KCERA Board Chair.

The Kern County Employees’ Retirement Association is an approximately $4.4 billion public pension plan that provides service retirement, disability retirement and death benefits to approximately 20,000 members and surviving beneficiaries. For more information about KCERA, please visit www.kcera.org.

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