SDRS Board of Trustees meeting review
Friday, July 20, 2012 I spent most of yesterday at the South Dakota Retirement System's board of trustees meeting. Lots of things happened with one vote that will affect state employees and the rest of the members of the SDRS. The vote was taken on "recommended actuarial assumption changes." Here's the breakdown:
- The board voted 8-3 to reduce the long-term investment return assumption from 7.75% to a short-term/long-term assumption of 7.25% for five years, then to 7.50%. This action will reduce the total dollars available when system planning. There is no date for implementation, but expect something within the next couple months.
- Specific assumptions that will be looked at: post-termination mortality, pre-termination mortality, salary scale, retirement, termination, disability, inflation, COLA, and interest on accumulated contributions. "Assumptions" are things the SDRS considers when planning the system (e.g., fewer terminations than planned for leads to system financial losses, as the SDRS plans for, or assumes, those terminations).
- With the same vote, the board elected to look at changes to nearly all SDRS benefits. COLA, special early retirement, early retirement, vested benefits, and nearly everything else will be looked at. So, the overall SDRS plan design (i.e., its goals) will also be looked at.
The next meeting of the SDRS board will be Sept. 5-6.
Categories: Meetings, South Dakota Retirement System