N.D. official defends fund assumptions

BISMARCK (AP) — A North Dakota pension official said it’s reasonable to expect state pension funds for teachers and state workers to average 8 percent yearly growth over the long term.

Last year the funds gained about 13 percent, and the year before they both lost more than 24 percent. Some state lawmakers say with the recent stock market turbulence, it may be too much to expect North Dakota’s pension funds to average 8 percent annual gains.

Interim state Retirement and Investment Office director LeRoy Gilbertson said most of the nation’s pension funds assume 8 percent annual returns.

He said that’s a prudent assumption, and it’s backed up by years of data. Gilbertson said North Dakota’s funds have averaged more than 8 percent growth each year over the last 25 years.

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