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SURS Hires DC Consultant, Core Real Estate Managers; Lowers Assumed Rate

March 9, 2018 - 15:31
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Champaign, IL - The State Universities Retirement (SURS) Board of Trustees today approved hiring Cammack Retirement Group as the System’s defined contribution consultant, subject to successful completion of contract negotiations. Aon Hewitt Investment Consulting was also considered.

Trustees also voted to hire the Blackstone Group and the Carlyle Group to provide open-end core-plus real estate fund investment management services. Blackstone will receive an allocation of $200 million. Carlyle will receive $100 million to manage.  Cabrera Capital Partners was also a finalist in the search process.

In other business, the board voted to reduce SURS long-term assumed rate of investment return to 6.75 percent from 7.25 percent effective June 30, 2018. The reduction in the assumed investment rate was made following a review of the FY 2014-2017 Experience Study by Gabriel Roeder Smith and Company. 

This rate also impacts money purchase factors used in calculating retirement benefits.  The board voted for the change to the money purchase factors and other actuarial tables to take effect July 2, 2019. 

SURS Hires DC Consultant, Core Real Estate Managers; Lowers Assumed Rate