Lower investment bar for Mass. pension fund
State pension funds around the country are lowering the investment bar for their portfolios. State Treasurer Steve Grossman believes Massachusetts should do the same and reduce the portfolio’s expected annual investment return form 8.25 percent to 8 percent. That lower profit forecast would put Massachusetts in the middle of the national pack among state pension funds. But it would also boost the state’s funded pension liability by about $1.25 billion. That’s a deal worth making.