PROVIDENCE, R.I. – In its monthly meeting today, the State Retirement Board unanimously approved recommendations from the Actuarial Experience Study for the period ending June 30, 2013. General Treasurer Gina M. Raimondo, chair of the State Retirement Board, released the following statement:
"I applaud the Board for its continuing hard work and dedication to making sound decisions for our retirees and hardworking public servants. The actuary's analysis of the retirement system's performance over the previous three years shows that the changes the Board made in 2011 were necessary and reasonable. Today's report is another data point that should give all members of the retirement system further confidence that we are on a safe and sustainable path to providing retirement security."
The approved recommendations of the actuary's Experience Study included:
- Maintaining the current 7.50 percent investment return assumption, including the 2.75 percent inflation assumption - Maintaining the current actuarial methodologies and policies - Maintaining the current mortality assumptions - Making minor adjustments in other demographic and economic assumptions such as expected payroll growth
These authorized assumptions will be used in the June 30, 2014 valuation by the state's actuary, Gabriel, Roeder, Smith and Company (GRS).
Treasurer Raimondo noted that the independent audit done by Cheiron in September 2013 validated the actuarial work of GRS, reinforcing confidence in the efforts of the Retirement Board to provide retirement security.
The Retirement Board also voted to accept the rates as presented by the actuary for the State Police Retirement Benefits Trust as of June 30, 2013.