| Assumed Rate (5/29/09) |
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PERS’ actuary, Mercer, presented the first part of the 2008 Experience Study to the PERS Board at its May 29, 2009 meeting. Mercer will present the second part of the study at the July 16, 2009 Board meeting.
Based on the Experience Study, the Board adopts the actuarial methods and economic assumptions that the actuary will use to value system liabilities and set employer rates.
One of these assumptions is the investment return assumption (or assumed rate). Since 1989, the actuary has used an assumed rate of 8 percent. That rate is used to credit earnings to Tier One member regular accounts and in actuarial factors used to calculate benefits.
Mercer also presented a financial modeling study at the May 29, 2009 Board meeting.
Assumed Rate Frequently Asked Questions
2008 Experience Study
Financial Modeling: Economic Projections
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