Valuations
One of the most important responsibilities of IPERS is to annually assess the value of the Trust Fund and its ability to finance benefits for members into the future. This assessment is called an actuarial valuation. IPERS hires independent, professional actuaries to perform these studies.
| Actuary: Milliman Inc.—Omaha, NE |
Responsibilities:
- Certify the adequacy of the contribution rates used by IPERS.
- Measure and report on the assets and liabilities of IPERS.
- Review and analyze trends in IPERS’ membership and actuarial assumptions.
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What Do Actuaries Look For? Actuaries look at all kinds of factors to determine the health of the fund. For example, they analyze:
- The amount of contributions coming into the fund.
- Benefits promised to current and future retirees.
- Investment returns.
- Long-term economic trends.
- Life expectancy trends.
- Risks associated with anticipated events, such as early retirements.
After assessing these and other factors, actuaries produce actuarial valuation reports that document their findings and recommendations. Recommendations may include contribution rate adjustments.
Actuarial Valuations: 2007 (pdf) | Previous Years
Actuaries also complete experience studies, which compare assumptions they used in their valuations to reality; e.g., comparing when people were expected to retire versus when they actually did retire. The information is used to make future actuarial valuations more accurate.
Experience Studies: 2006 (pdf) | Previous Years
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