Hey, STRS....are you still sticking with your 8% figure?

From John Curry, June 15, 2010

CalPERS cuts expected return rates

Pensions & Investments, June 14, 2010
By Randy Diamond

CalPERS lowered its estimate of how much it expects to earn in the 10 years ended 2021.

Return estimates discussed at Monday’s investment committee meeting calculate an annualized return of 7.54% for the 10-year period.

This compares to the 8.3% fund officials previously concluded they could earn. They attributed the drop to changes in the global economy and their increased inflation estimate of an average 3% per year over the period vs. last year’s estimate of 2.5%.

Given inflation, CalPERS real returns for the 10-year period are estimated to be an annualized 4.54%, vs. last year’s estimate of 5.8%.

(Read complete article here.)