CalPERS to lower discount rate to 7% over next three years

The $284.6 billion California Public Employees’ Retirement System plans to lower its discount rate from 7.5 percent to 7.0 percent over the next three years, according to a pension fund document. The decision came after the fund failed to meet its 7.5 percent target the past two years.

“This was a very difficult decision to make, but it is an important step to ensure the long-term sustainability of the Fund,” said Rob Feckner, president of the CalPERS board of administration.

CalPERS recently failed to meet its real estate portfolio benchmark as well, delivering a 7.06 percent net return for fiscal year 2015-2016, underperforming by 557 basis poi