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Meeting Date:
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3/29/2012 - 6:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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8. Action on Changes in the Actuarial Assumptions for the Milwaukee Board of School Directors Supplemental Early Retirement Plan for Teachers
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Strategic Plan Compatibility Statement:
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Goal 6 The district is accountable for measurable results
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Attachments
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1. Teacher Pension Plan Actuarial Assumptions March 2012 FINAL.pdf
2. GRS Study.pdf
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File Attachment:
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Background:
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The Administration secured an experience study from its actuary, Gabriel, Roeder, Smith and Company (GRS), for the Milwaukee Board of School Directors Supplemental Early Retirement Plan for Teachers (“Teachers Plan”) for years July 1, 2006 to July 1, 2011. The purpose of the study is to review the actuarial assumptions used to value the Teachers Plan by comparing actual experience to expected or assumed experience and to review the current methods used to develop the recommended annual contribution to the plan. Experience studies are performed on a periodic basis, typically every 3-5 years, to evaluate and ensure that the funding and the valuation of the actuarial liabilities of the Plan are on track.
Included in the experience study is a review of the economic and demographic assumptions used to value the plan. The economic assumptions reviewed include the assumed rate of price inflation, the long-term rate of return on investments, general wage increases and rate of payroll growth. The demographic assumptions reviewed include mortality, retirement, withdrawal rates and disability rates.
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Fiscal Impact Statement:
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This item authorizes expenditures that are in accordance with the provisions of the Teachers Plan and will be included the District’s annual budget commencing FY13.
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Implementation and Assessment Plan
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This item authorizes expenditures that are in accordance with the provisions of the Teachers Plan and will be included the District’s annual budget commencing FY13.
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Recommendation:
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Your Committee recommends that the Board approve the changes in actuarial assumptions for the Teachers Plan as summarized in Attachment 1, item 3, and as further detailed in the attached experience study, effective as of July 1, 2012.
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Approvals:
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Recommended By:
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Signed By:
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Lynne A Sobczak - Director, OBG
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