Video & Transcript Research : 'actuarial assumptions'

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TX
TX

Texas 89th Regular

Senate Committee on Finance Mar 19th, 2025 at 09:00 am

Finance

TX
TX

Texas 89th Regular

Finance Mar 19th, 2025

Finance

KY
KY

Kentucky 2025 Regular Session

Public Pension Oversight Board (12-12-25) - Part 1

Transcript Highlights:
  • Now, again, predicated on that assumption of contributing, it would be actuarial neutral, but it did
  • made some changes to the uh the actuary made some changes to the assumptions. assumptions. assumptions
  • The actuary just concluded a two-year economic assumption study and made no recommended changes.
  • So what the actuary does every year, they look at major assumptions. it shows how TRS and the actuary
  • <00:48:07.720> those, assumptions, but the actuary sets those, assumptions, but the actuary
Keywords: Meeting Start: 00:00:00 Attendance Roll Call: 00:00:12 Approval of Minutes: 00:01:34 Actuarial Valuation Update – KPPA: 00:02:10 Actuarial Valuation Update – TRS: 00:25:32, 958, all
Summary: The meeting began with roll call, confirmation of a quorum, and approval of the prior minutes. The main presentation was from KPPA officials Ryan Barrow and Erin Saratt on the annual actuarial valuations for the retirement and insurance systems. They said the systems’ funding status improved overall, with three of five insurance funds fully funded, CERS hazardous dropping from over 100% funded to 90.9% because of premium changes, and KRS receiving $650 million in supplemental funding over the biennium. They also reported strong investment returns above assumed rates, higher payroll and membership counts, and resulting actuarial losses tied to higher salaries and premiums, especially on the insurance side. Members asked several questions about what drove the actuarial losses and whether legislation affected them. KPPA said the CERS insurance loss was driven by premium increases and Senate Bill 10, while the pension-side losses were largely due to higher payroll and benefits for Tier 1 and Tier 2 members. They explained that new Tier 3 employees are designed to add no additional unfunded liability, and that the state administers the systems but does not directly control all hiring. Questions also focused on retiree health premiums, which KPPA said rose about 15% for non-Medicare retirees and 38% for Medicare retirees, with the increase attributed to utilization, prescription costs, and the Inflation Reduction Act. The committee then heard from TRS Deputy Executive Secretary and General Counsel Beau Barnes on the 2025 TRS actuarial valuation. He reported that the Retirement Annuity Trust and Health Insurance Trust both received full funding, the retirement trust’s funded ratio improved to 61%, TRS 4 remains well funded with no liability, and the health insurance trust improved to 89.1%. Barnes said TRS is on track to fully fund legacy liabilities within the amortization period, with 2044 as the point when the system reflects 100% funding and 2046 as the last year needing additional dollars for the legacy liability. He also explained that lower assumed investment returns and updated mortality assumptions increased liabilities, but that TRS uses direct rate smoothing for budgeting purposes. At the end of the meeting, the chair circulated a proposed set of “do’s and don’ts of pensions,” emphasizing that future legislation should not create unfunded liabilities. Barnes also noted he would later discuss several legislative proposals for the 2026 session, but the transcript provided ends before that discussion or any votes on those proposals.
KY
KY

Kentucky 2026 Regular Session

Public Pension Oversight Board (11-20-23)

KY
KY

Kentucky 2026 Regular Session

Public Pensions Oversight Board (4-24-23)

KY
KY

Kentucky 2026 Regular Session

Public Pensions Oversight Board (5-22-23)

TX
TX

Texas 89th Regular

Pensions, Investments & Financial Services Apr 23rd, 2025

Pensions, Investments & Financial Services

Transcript Highlights:
  • Would it be OK if I had our staff actuary come up and answer that?
  • Because I'm not the actuary, I don't have the technical pension expertise.
  • So I think that's always an opportunity for the actuary of the system to reassess their assumptions and
  • the assumptions aren't on target.
  • And as long as we're fully covering the actuarial cost of the benefit, it's a fantastic bill.
Bills: HB886, HB1514, HB2434, HB2688, HB2802, HB3161, HB3221, HB4029, HB4339, HB4591, HB4774, HB4802, HB4853, HB5627, SB1737
Keywords: retirement, supplemental payment, benefits, Employees Retirement System, eligible annuitants, legislation, annuity, service credit, Employees Retirement System of Texas, employee benefits, pension reform, public retirement systems, municipality pensions, firefighters, police officers, retirement age, DROP program, actuarial studies, pension benefits, municipal retirement
TX
TX

Texas 89th Regular

Pensions, Investments & Financial Services Apr 23rd, 2025

Pensions, Investments & Financial Services

Transcript Highlights:
  • I want to put in context, though, we have put significant resources into ERS to improve the actuarial
  • Unfortunately, since the fund became actuarially unsound during that period, all retirees were not able
  • valuation, which pointed out that the fund is actuarially sound.
  • We're actuarially sound, and actually, because of the funding that the legislature has provided for in
  • The actuarial cost is reported by TRS to be $806 million, and their reported actuarial cost, of course
Bills: HB886, HB1514, HB2434, HB2688, HB2802, HB3161, HB3221, HB4029, HB4339, HB4591, HB4774, HB4802, HB4853, HB5627, SB1737
Keywords: retirement, supplemental payment, benefits, Employees Retirement System, eligible annuitants, legislation, annuity, service credit, Employees Retirement System of Texas, employee benefits, pension reform, public retirement systems, municipality pensions, firefighters, police officers, retirement age, DROP program, actuarial studies, pension benefits, municipal retirement
MN
MN

Minnesota 2025 1st Special Session

House Ways and Means Committee 3/3/25 - Part 1

Ways and Means

MN
MN

Minnesota 2025 1st Special Session

House Ways and Means Committee 3/3/25 - Part 2

Ways and Means

Transcript Highlights:
  • They changed that all of a sudden and went to an actuarial study, so it depends on the version of the
  • different ways of costing out the bill, including a microsimulation process in 2022 and then an actuarial
  • He said they changed that all of a sudden and went to an actuarial study, so it depends on the version
Bills: HF11
Keywords: Minnesota Paid Leave, paid family and medical leave, family leave, medical leave, implementation delay, premium collection, employer premiums, state payroll tax, workforce, labor, benefits administration, DEED, Department of Employment and Economic Development, employer notice, seasonal employees, private plans, actuarial study, outreach and education, employee rights, reinstatement
KY
KY

Kentucky 2026 Regular Session

Public Pension Oversight Board (6-1-26)

Transcript Highlights:
  • Uh, out of those assumptions and methods, we're trying to figure out or the actuary is trying to figure
  • That review is in statute and it is done by the actuary from the systems, and they'll look at the assumption
  • actuary system retains by a different actuary years<00:09:41.200> ago.
  • It’ll also look at the actuarial processes. Actuaries have actuarial standards of practice.
  • Is the assumption good? correct number? Is the assumption good?
Keywords: Meeting Start: 00:00:09 Attendance Roll Call: 00:01:42 Approval of Minutes: 00:03:23 Overview of Actuarial Audit Process: 00:03:47 Overview of Reemployment After Retirement Provisions: 00:25:26 Teachers’ Retirement System: 00:25:26 Kentucky Public Pensions Authority: 00:50:32 Adjournment: 01:02:55, 958, all
Summary: The meeting began with quorum, approval of the prior minutes, and an announcement that the June meeting had been canceled and replaced by this combined May/June meeting; the next official PPOB meeting was announced for July 21 at 2:30. Staff then gave an overview of the Public Pension Oversight Board’s required actuarial audit process, explaining that House Bill 238 requires a review every five years of the retirement systems’ actuarial assumptions and methods, funded by the systems themselves. The presentation distinguished this audit from a financial or forensic audit, described the three possible audit levels (full replication, limited/spot review, or basic review), and noted that the last audit in 2021 was a level one performed by Milleman Consulting at a cost of about $190,000. Members discussed timing for the next audit cycle, with a request to LRC likely needed in July or August to target the June 30, 2026 valuation, and several members expressed interest in another level one review. Questions also addressed whether prior audits found major issues; staff said the 2021 review was generally clean but recommended more consistency in reporting and assumptions across systems. The committee then welcomed new staff and interns, including Odet Guanzi of KPPPA and Team Kentucky intern Amamira Bowman. Bo Barnes of the Teachers Retirement System presented an overview of the statutory framework for reemployment after retirement under KRS 161.605. He explained that the law is intended to let retirees return to help with staffing needs, do so in an actuarially sound way through required contributions, and keep TRS compliant with federal tax rules for a qualified plan under section 401(a). Barnes described the required breaks in service and earnings limits for retirees returning part-time or full-time, including the three-month or 12-month break depending on the employer, the 6,900-day limit, and the daily wage threshold based on years of service. He also noted a lightly used critical shortage program that allows school districts to hire retirees without a wage cap, while still observing the break-in-service rules. Members asked questions about who decides the scope and level of the actuarial audit, how the audit would treat leave balances and other benefit-related items, and whether the prior level one audit identified substantial problems. Staff said the committee would request the audit, but LRC would handle contracting, and that the audit scope could include items like sick leave and annual leave costs if requested. On the reemployment topic, Barnes emphasized that the rules are designed to avoid pre-arranged retire-and-return arrangements that could jeopardize TRS’s tax-qualified status. No formal votes were taken beyond approving the minutes, and the meeting concluded with the presentations and discussion of these pension oversight issues.
MN
MN

Minnesota 2025-2026 Regular Session

State Committee Meeting - 2026-04-16

State Government Finance and Policy

MN
MN

Minnesota 2025-2026 Regular Session

House Ways and Means Committee 5/18/25

Ways and Means

OK
OK

Oklahoma 2026 Regular Session

House of Representatives Second Regular Session of the 60th Legislature Day 58-2 May 14th, 2026 at 02:00 pm

Oklahoma House Floor Meeting

OK
OK

Oklahoma 2026 Regular Session

House of Representatives Second Regular Session of the 60th Legislature Day 58-1 May 14th, 2026 at 09:30 am

Oklahoma House Floor Meeting

OK
OK

Oklahoma 2026 Regular Session

House of Representatives Second Regular Session of the 60th Legislature Day 57 May 13th, 2026 at 01:30 pm

Oklahoma House Floor Meeting

FL
FL

Florida 2026 Regular Session

Governmental Oversight and Accountability Jan 20th, 2026

Governmental Oversight and Accountability

Transcript Highlights:
  • This addresses an unfunded actuarial liability with the FRS system.
  • This addresses an unfunded actuarial liability with the FRS system.
Bills: S0774, S7028, S7024, S7026
Keywords: mental health, first responders, employment benefits, 911 telecommunicators, nervous injuries, retirement, elected officials, Deferred Retirement Option Program, DROP, cost-of-living adjustment, trade secret, public records exemption, public meetings exemption, open government, sunset review, agency confidentiality, proprietary business information, proprietary confidential business information, confidential records, Florida public records law
Summary: The Committee on Governmental Oversight and Accountability met and first heard Senate Bill 774, which would extend workers’ compensation medical benefits for employment-related mental or nervous injuries to 911 public safety telecommunicators, even without a physical injury. The sponsor and several dispatchers, a clinician, and communications directors testified in support, describing repeated exposure to traumatic calls, chronic understaffing, and the need for mental health treatment and retention support. Senator DiCeglie and Chair Mayfield praised dispatchers’ work, and the bill was reported favorably by committee vote, with Senator McClain later recorded as voting yes on the bill. The committee then took up SPB 7028, a retirement bill that sets Florida Retirement System employer contribution rates beginning July 1, 2026, leaves the 3% employee contribution unchanged, allows certain elected officers to receive a DROP payout under specified conditions, and provides a 1.5% alternative cost-of-living adjustment for eligible special risk retirees. Firefighters, police, sheriffs, and chiefs’ groups spoke in support, emphasizing recruitment and retention. The committee voted to submit the proposal as a committee bill and reported it favorably. Finally, the committee considered SPB 7024 and SPB 7026, both open-government-related bills. SPB 7024 would repeal the current public records and public meeting exemption for cybersecurity information and consolidate agency-specific cybersecurity exemptions into one agency-wide exemption. SPB 7026 would repeal the current public records exemption for trade secrets held by an agency and similarly consolidate specific trade secret exemptions into one agency-wide exemption. Neither bill drew testimony or debate, and both were submitted as committee bills and reported favorably. The meeting then adjourned.
OK
OK

Oklahoma 2026 Regular Session

Retirement and Government Resources REVISED Feb 17th, 2026 at 10:30 am

Retirement and Government Resources

Transcript Highlights:
  • It would be my assumption that OMES would take this into the bidding process, knowing what funds they
  • It passed 8-0 and was referred to the actuary.
  • The increase from the actuarial came back as unfunded actuarial liability, amount of contribution increase
  • There's no actuarial expense to that.
  • There's because if they, the actuarial is gonna set them out... That value of that money.
Bills: SB134, SB1356, SB1407, SB1611, SB1639, SB169, SB1722, SB182, SB1870, SB2039, SB432, SB609, SB715, SB716
Keywords: retirement, public employees, reemployment, benefit adjustment, Oklahoma Public Employees Retirement System, state government, OMES, Office of Management and Enterprise Services, Department of Labor, Department of Veterans Affairs, Department of Rehabilitation Services, civil service, human capital management, state employee disputes, whistleblower, veterans employment, veterans placement, fleet management, state fleet, motor vehicles
OK
OK

Oklahoma 2026 Regular Session

Commerce and Economic Development Oversight REVISION 2: HB3127 - Added Mar 5th, 2026 at 10:30 am

Commerce & Economic Development Oversight

WA
WA

Washington 2025-2026 Regular Session

Pension Funding Council Oct 8th, 2025

Pension Funding Council

Transcript Highlights:
  • For the record, Luke Maslink, Senior Actuary with OSA, you will also be hearing from your state actuary
  • There are three key economic assumptions and one non-economic assumption.
  • How is this assumption used?
  • GSG assumption.
  • assumption.
Summary: The Pension Funding Council met on October 8 with introductions from council members and staff, then received a detailed presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems are currently 100% funded on a smoothed basis, with open plans above 95% funded, and that legacy Plan 1 systems remain on a path toward full funding under current policy. The actuaries recommended updating assumptions to 3% inflation, 3.5% general salary growth, and a 7.25% investment return, while keeping Plan 1 membership growth at 1%. They also explained asset smoothing, the role of recent strong investment returns, and the expected budget impacts of the recommended changes. Representatives from the Economic and Revenue Forecast Council and the State Investment Board offered supporting perspectives, generally describing the assumptions as reasonable and consistent with their own outlooks. The council also heard an overview of the Long-Term Services and Supports Trust Program (WACares) from DSHS and OSA. Program staff described the program’s social insurance structure, premium collection, benefit eligibility, and upcoming implementation milestones. OSA reported that the program’s first actuarial valuation showed a positive actuarial balance under the base scenario and recommended no change to the current 0.58% premium rate during the program’s early learning phase, noting that future changes would depend on experience and the program’s risk-management framework. OSA also said the recommendation would remain the same regardless of the outcome of the pending ballot measure affecting investment options. During public comment, a representative of the Washington State School Retirees Association urged continued work on Plan 1 funding and related legislation, while the Association of Washington Cities cautioned against increasing pension assumptions in a way that could raise future employer costs and reduce flexibility for current local government services. In action, the council adopted a motion to maintain the current long-term economic assumptions by a 4-2 vote, adopted the recommendation to keep the WACares premium rate at 0.58% by a 6-0 vote, and then elected Katie Chapman as council chair by unanimous vote. The meeting then adjourned.