The change was adopted at the October 17, 2011 OCERS Board meeting. At the meeting, Paul Angelo of The Segal Company (OCERS’ consulting actuary) presented. He noted that changes in the assumptions impact contribution rates, but are also important in maintaining adequate funding while paying promised benefit amounts to participants already retired and to those near retirement.
Among the assumption changes approved by the Board of Retirement:
• A decrease in the current retirement rates to anticipate later retirements;
• Adjust the termination rates to reflect the recent trend on the number of members who withdraw their contributions rather than defer until they are eligible to receive a monthly retirement allowance;
• Adjust mortality rates to reflect data that general members are living longer; and
• Increase the salary assumption rate to 3.75%.
Also, OCERS’ investment return assumption, currently set at 7.75% will remain the same, and will be reviewed again next year.