The State Universities Retirement (SURS) Board of Trustees on June 9, voted to keep the System’s long-term expected rate of investment return at 7.25 percent for FY 2018. SURS annually reviews the rate for reasonableness with the assistance of actuarial and investment consultants. The rate was most recently reduced in 2014 from 7.75 percent to the current rate.
A five-year private equity funding plan was approved committing $300 million in both 2017 and 2018, $350 million in both 2019 and 2020, and $400 million in 2021.
In other business:
- A search was approved to help identify possible minority-, female- and persons with a disability-owned (MFDB) US equity managers. The RFP will be available no later than June 26, 2017.
- The second, and final, phase of the passive provider search was concluded. Results include:
- SURS existing passive providers (BlackRock, Northern Trust, Rhumbline and State Street) being retained to continue management of their existing products, and
- The expansion of product offerings by existing passive providers to include newly proposed products (with no current funding).
- The board voted to add Piedmont Investment Advisors to the list of possible future passive providers.
- SURS Self-Managed Plan investment options were updated. Revisions include:
- Termination of the CREF Money Market Account
- Addition of the Vanguard Federal Money Market Fund – all current CREF Money Market Funds will be moved to Vanguard, except for assets restricted by TIAA-CREF
- Addition of DFA Retirement Income Funds as the default option for new enrollees in TIAA