Agenda Packets - 2025/05/11 - Laserfiche WebLink

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NOTE 9—DEFINED BENEFIT PENSION PLANS—STATE-WIDE(CONTINUED) The following changes in actuarial assumptions and plan provisions occurred in 2025: 1. GERF CHANGES IN ACTUARIAL ASSUMPTIONS • The combined service annuity loading factors increased from 15.00 percent to 19.00 percent for vested terminated members and from 3.00 percent to 44.00 percent for nonvested, terminated members. • The assumed post-retirement benefit increase changed from 1.25 percent to 1.50 percent. CHANGES IN PLAN PROVISIONS • The post-retirement benefit increase formula changed to 100.00 percent of the Social Security annual increase, between 1.00 percent and 1.75 percent , beginning January 1, 2026. If the funded ratio (on a market value of assets basis) is less than 85.00 percent for the last two consecutive annual valuations or is less than 80.00 percent in the most recent actuarial valuation, the maximum is reduced to 1.50 percent. Previously, the benefit increase was 50.00 percent of the Social Security annual increase,between 1.00 percent and 1.50 percent. • The 1.00 percent additional employer contribution is eliminated when the plan reaches 98.00 percent funded status (on an actuarial value of assets basis); this contribution was previously scheduled to stop when the plan reached 100.00 percent funded status. 2. PEPFF CHANGES IN ACTUARIAL ASSUMPTIONS • Assumed rates of salary increases were reduced slightly. • Assumed rates of retirement were adjusted,resulting in an overall increase in unreduced(full) retirements and an overall increase in reduced(early)retirements. • Assumed rates of withdrawal were modified;the new rates will increase predicted terminations, especially in the first few years of employment. • Assumed rates of disabled retirement were significantly increased, especially for ages over age 30. • Continued used of Pub-2010 Public Safety Mortality Table with rates adjusted to better fit observed experience. • Percent married assumption for female retirees lowered from 70.00 percent to 65.00 percent. • Minor changes were made to form of payment assumptions for retirees. • Minor changes were made to assumptions made with respect to missing participant data. • The combined service annuity load changed from 33.00 percent to 13.00 percent for vested, terminated members and from 2.00 percent to 38.00 percent for nonvested, terminated members. -57-