The Teacher Retirement System of Texas needs to adjust its investment return assumptions 

In Politics by Michael Rae

Actuarial consultants recently presented their evaluation of the Texas Teachers Retirement System (TRS) assumptions to the system’s board. The consultants suggested that the public pension plan should lower its return investment return rate target, putting it in line with the national average return. The consultants advised the TRS board to reduce the pension return assumption from 7.25% to 7.00%, stating that “a 7.00% return assumption would be a longer-term hedge against market returns not meeting the 7.25% [target].” 

The turbulence across financial markets to this point in 2022, with virtually all U.S. companies in the S&P 500 index in the red,