PERS’ actuary, Mercer, presented the first part of the 2010 Experience Study to the PERS Board at its May 26, 2011 meeting. This included actuarial methods and economic assumptions proposed for use in the December 31, 2010 and December 31, 2011 actuarial valuations.
Mercer will present the second part of the study at the July 29, 2011 Board meeting. This will include proposed investment return and demographic assumptions for use in the December 31, 2010 and December 31, 2011 actuarial valuations.
Based on the Experience Study, the Board adopts the actuarial methods and economic and demographic assumptions that the actuary will use to value system liabilities and set employer rates.
One of these economic 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.
2010 Experience Study for December 31, 2010 Actuarial Valuation, Actuarial Methods, and Economic Assumptions from May 26, 2011
Assumed Rate Frequently Asked Questions