The Legislative PEER Committee is releasing its report titled 2018 Update on Financial Soundness of the Public Employees’ Retirement System.
Some of the Committee’s major findings include:
- The funding ratio at June 30, 2018 was 61.8%, which is an increase from 61.1% at the end of FY 2017.
- In FY 2018, there was 1.40 active employees for each retired member. The ratio of active members to retired members in the PERS plan has decreased approximately 36% over the past ten years. This decrease results in funding future pension obligations over the payroll of fewer active members
- The PERS actuarial model currently assumes a 3.25% increase in annual payroll. For FY 2018, payroll decreased by .065% when compared to FY 2017 payroll.
- In June 2018, the PERS Board adopted a new funding policy. Included in the new funding policy are three metrics to track the plan’s progress in achieving the goals and objectives of the PERS Board. These metrics assess the plan’s funding ratio, cash flow as percentage of assets, and actuarially determined contribution.
- In consideration of results from an annually calculated actuarial valuation under the new funding policy, the PERS Board raised the employer contribution rate percentage to 17.40% of annual compensation, an increase of 1.65% (effective July 1, 2019). Under the prior measurement system, a rate increase would also have been needed.
You can view the full report below:
Peer Report Pers 01/30/2019 by on Scribd