Actuary says time to change pension assumptions
The public employee pension system is being told it should expect less on future investment earnings.
A consultant told the retirement board Thursday that it should slightly reduce the expectation of earning 7.75 percent interest on invested pension funds.
The key assumption is used to predict how much money will be in the system. Decreasing the figure would increase projected shortfalls.
But the board decided against making any changes because the system is still adjusting to all the changes in the Legislature's pension fix.
The consultant said that fix could ensure the system balances in about 16 years - although a portion is still subject to a lawsuit.
The board was also told it doesn't have to worry about a technical snafu that could have inadvertently gutted the fix.