Florida Retirement System sticks with 7.75% return assumption
By Barry B. Burr | October 2, 2012 3:37 pm
Florida Retirement System will retain its 7.75% investment return assumption, said John Kuczwanski, communications manager for the Florida State Board of Administration, Tallahassee, which oversees the pension fund.
The Florida Retirement System Actuarial Assumption Conference on Monday agreed to accept the recommendation of Milliman, actuarial consultant to the Department of Management Services, Division of Retirement, which conducts the official actuarial valuation.
Milliman is expected to issue its new actuarial report in December. It will provide required contributions for the next fiscal year, beginning July 1, 2014.
Milliman's preliminary valuation increases the FRS' unfunded liability to $19.2 billion, lowering its funded status to 86.9% as of June 30, according to a report Milliman submitted to the conference.
A year earlier, FRS was 87.5% funded, with an unfunded liability of $18 billion.
The FRS defined benefit plan has $127.1 billion in assets. The FSBA oversees a total of $156 billion. The asset figures are as of Monday.
The conference consists of representatives of FSBA; Gov. Rick Scott, who is one of the three FSBA trustees; the Florida Legislature's Office of Economic and Demographic Research; and the Department of Management Services, Division of Retirement.