During their September 23, 2021, Board of Trustees meeting, the Trustees voted to lower its actuarial assumption to 6.5% from the current assumption of 6.75%.
The decision to lower the assumption was based on the recommendation from GRS the Fund’s actuary, following their analysis of the expected investment returns, the current inflation assumption of 2.25 percent, the current target asset allocation, and CTPF's investment consultant’s 10‐year expected geometric return.
The actuary noted that an assumption of 6.5% increases the probability of the assumption being achieved in the future. The lower amount will have the effect of decreasing the funded ratio and increasing the contribution rate required from the State of Illinois. The recent favorable investment experience during fiscal year 2021 will mitigate some of the changes from this recommended decrease to the investment return assumption.