Aug. 10 (Bloomberg) — Massachusetts Treasurer Steven Grossman wants to reduce the assumed rate of return on the state's $50 billion in pension-fund assets, currently at 8.25 percent and among the highest for U.S. public retirement plans.

Grossman, a former Democratic National Committee chairman, said he's gathering legislative support for a cut to 8 percent, with an option to go lower. That would put Massachusetts more in line with other states, yet the move would cost taxpayers and covered workers $1.7 billion to maintain funding commitments.

"I will predict right now with a fair degree of confidence that we will be using the 8 percent number for our expected return," Grossman, 66, said in an interview. The rate is set by law, and the earliest it could be changed would be next year.

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