An actuarial valuation measures our financial health in the present, and then forecasts the expense of our future retirement payouts and our capacity to afford them. We are looking pretty good. Investment earnings outpaced added retirement benefits enough that we were able to shorten the payment schedule by two years, and, pull back our target investment rate from 7.875 to 7.75%. We rose from 63% to 70% funded from the last valuation two years ago. Considering we are 65% of the way through the 40-year funding schedule (1988 to 2028) – we are ahead by 5 points.
See page 15, and page 17 for quick numbers, but the rest of the report is a good read as well.
Click here: 2014 Valuation Report
Click here to see prior reports and other information: Valuation page – particularly the link to PERAC’s list of funded ratios throughout the State.