Mo. Code Regs. tit. 16 § 20-4.010
Current through Register Vol. 49, No. 24, December 16, 2024
Section 16 CSR 20-4.010 - Actuarial AssumptionsPURPOSE: This proposed amendment updates the actuarial assumptions used by the Retirement System.
(1) Beginning with the Retirement System's July 2021-June 2022 fiscal year, the investment return rate used in making the valuations is seven percent (7.00%) per year, compounded annually. This rate of return is not the assumed real rate of return. The real rate of return is the rate of investment return in excess of the wage inflation rate. Considering other financial assumptions, the seven percent (7.00%) investment return rate translates to an assumed real rate of return of four and twenty-five hundredths percent (4.25%).(2) Beginning with the Retirement System's July 2021-June 2022 fiscal year, the mortality table used in evaluating allowances to be paid is PubG-2010 Retiree Mortality Tables (published February 2019 by the Society of Actuaries Retirement Plans Experience Committee, 475 N. Martingale Road, Suite 600, Shaumberg, IL 60173, www.soa.org), increased by fifteen percent (15%). Future mortality improvements are assumed each year based on the two- (2-) dimensional sex-distinct mortality improvement scale MP-2020 (published October 2020 by the Society of Actuaries Retirement Plans Experience Committee, 475 N. Martingale Road, Suite 600, Shaumberg, IL 60173, www.soa.org). Both Society of Actuaries Retirement Plans Experience Committee documents referenced herein do not include any amendments or additions subsequent to the stated publish dates.(3) Beginning with the Retirement System's July 2021-June 2022 fiscal year, the probabilities of general members' retirement with an age and service allowance are shown in Table 1, included herein and the probabilities of firefighters, police officers and public safety personnel (as defined in section 70.631 RSMo.) members' retirement with an age and service allowance are shown in Table 2, included herein.(4) Beginning with the Retirement System's July 2021-June 2022 fiscal year, the probabilities of withdrawal from service together with individual pay increase assumptions are shown in Table 3, included herein.(5) Beginning with the Retirement System's July 2021-June 2022 fiscal year, total active member payroll is assumed to increase two and seventy-five hundredths percent (2.75%) per year, which is the portion of the individual pay increase assumptions attributable to inflation. In effect, this assumes no change in the number of active members per employer. Click to view image
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AUTHORITY: section 70.605.14, RSMo Supp. 2011.* Original rule filed Dec. 29, 1975, effective Jan. 8, 1976. Amended: Filed July 1, 1977, effective Oct. 13, 1977. Amended: Filed Oct. 31, 1979, effective Feb. 11, 1980. Amended: Filed Sept. 9, 1985, effective Dec. 15, 1985. Rescinded and read-opted: Filed Aug. 3, 1987, effective Nov. 23, 1987. Amended: Filed Feb. 16, 1999, effective July 30, 1999. Amended: Filed Sept. 26, 2011, effective March 30, 2012. Amended by Missouri Register January 3, 2017/Volume 42, Number 1, effective 2/28/2017Amended by Missouri Register December 1, 2021/Volume 46, Number 23, effective 1/29/2022*Original authority 70.605, RSMo 1967, amended 1974, 1992, 2000, 2003.