Some municipal pension plans to receive cost-of-living adjustment
PROVIDENCE, R.I. – The Employees' Retirement System of Rhode Island Board today voted to approve the fiscal year 2014 valuations for state employees, including state police and judges, teachers and the Municipal Employees' Retirement System.
These reports continue to show that the system is on a healthy funding track, as determined in 2011 when the General Assembly voted to overhaul the state administered pension system.
"The most recent actuarial valuations are further verification that the 2011 Retirement Security legislation is working," Raimondo said. "Reports like this demonstrate to state employees and retirees the thoughtfulness of data-driven reform that assures the sustainability of the state's retirement system."
This valuation will be used to set the system's contribution rates for fiscal year 2017. The valuation confirmed the following:
- The funded ratio is 57.4 percent for state employees and 59.6 percent for teachers
- For FY2017 taxpayer contribution rates and projected dollar amounts are lower than anticipated: 23.78 percent for state employees and 22.76 percent for teachers
- For FY2015 MERS plans that are over 80 percent funded will experience a 2.73 percent cost-of-living-adjustment (58 MERS plans fit this criteria)
- FY2014 investment performance was above plan expectations
State employee, teacher and MERS valuations are completed before the end of the calendar year in order to determine cost-of-living adjustment payments for the following calendar year.