Actuarial Valuation.Report as inadecuate

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This report presents the results of the actuarial valuation of assets and liabilities as well as funding requirements for the Teachers Retirement System of Louisiana as of June 30, 1996. Data reported include current funding, actuarial assets and valuation assets. These include the Louisiana State University Agriculture and Extension Service Fund, the Texaco Settlement Fund, and the Experience Account Fund. The rate of return for investments is reported as ranging from 9.9 percent (1992) to 16.28 (1996) with a 5-year average of 10.54 percent. Demographic analysis shows that the system continues to show properties of an aging population that is indicative of the problem the state faces in its ability to attract and retain graduates to the profession. Additionally, the cost of allowing retirees to return to work, even with partial offsets, is higher than the cost to fund an additional year s accrual as an active participant. Further, the issue of 20-year retirement eligibility for newly hired teachers requires legislative resolution. The Retirement Board is prohibited from granting cost of living raises unless the system meets its funding target. For the plan year ending June 30, 1996 the target has not been met and, therefore, the Board cannot grant cost of living increases. Extensive data tables and exhibits provide supporting detail. (JLS)

Descriptors: Accounting, Cost Estimates, Costs, Elementary Secondary Education, Financial Audits, Government Employees, Personnel Policy, Retirement Benefits, School Personnel, State Programs, Statewide Planning, Teacher Employment Benefits, Teacher Retirement, Teachers

Author: Teachers Retirement System of Louisiana, Baton Rouge.


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