Read the full Actuarial Experience Study here for the following FPPA plans:
At least every five years the FPPA Board of Directors, in accordance with best practices, reviews its economic and demographic actuarial assumptions. At its June 2015 meeting, the Board of Directors reviewed and approved recommended changes to the actuarial assumptions. The recommendations were made by FPPA’s actuaries, Gabriel, Roeder, Smith & Co., based upon their analysis of FPPA’s past experience and expectations of the future.
The assumption changes will be effective for actuarial valuations beginning January 1, 2016. The actuarial assumptions will also impact actuarial factors for benefit purposes such as purchases of service credit and other benefits where actuarial factors are used. The date the new actuarial assumptions will be effective for benefit purposes will be October 1, 2016.
The main actuarial factor changes were:
A number of other actuarial factors had modest changes as well.These new actuarial assumptions position FPPA more conservatively as it proceeds forward. As always, the assumptions will be reviewed against actual experience each year and gains or losses recognized in accordance with Governmental Accounting Standards Board standards and our actuarial methods and policies.