CalPERS keeps 7 percent discount rate; city manager believes rate is unrealistic - Lodinews.com: News

CalPERS keeps 7 percent discount rate; city manager believes rate is unrealistic

By Danielle Vaughn/News-Sentinel Staff Writer | Posted: Friday, December 29, 2017 9:00 am

The CalPERS Board of Administration decided to keep its discount rate at 7 percent during its Dec. 20 meeting — a number that Lodi City Manager Steve Schwabauer said he believes is not realistic.

“They’re not likely to earn 7 percent, and so they have said by their own standards they won’t earn 7 percent in the next 10 years,” Schwabauer said. “To me, that just means they’re just kicking the can down the road. Does that mean that I want them to raise the rates that the City of Lodi pays? No, it doesn’t, because it’d be a challenge for us to afford it.”

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