Actuarial Reports

Overview

Actuarial Reports

Actuarial Funding Status

SCERS’ overall funding objective is to meet long-term benefit promises by maintaining a well-funded plan status through a combination of superior investment returns and employer and employee contributions which are both minimized and maintained as level as possible for each generation of active members. The greater the level of overall plan funding, the larger the ratio of assets accumulated to the actuarial accrued liability and the greater the investment potential. The advantage of a well-funded plan is that the benefits earned by participants are funded during their working careers and not by future generations of taxpayers. To help reduce year-to-year volatility in employer contribution rates due to fluctuations in investment performance, SCERS smoothes the calculation of actuarial assets over a rolling seven-year period. This not only stabilizes contribution rates but also improves the ability of the employer to plan for possible future increases or decreases in the rates.

SCERS has engaged an independent actuarial consulting firm, Segal, to conduct its annual actuarial valuation. Triennially, the System requests that its actuary perform an analysis of the appropriateness of all economic and non-economic assumptions. The most recent triennial analysis was performed as of June 30, 2022.

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Actuarial Valuation and Reviews

The Actuarial Valuation Report is a funding tool that evaluates assets, participant data, benefit plans, and assumptions against demographic and economic experience to determine the annual amount needed to finance current and future obligations of the pension plan. The objective is maintaining a well-funded, sustainable plan that minimizes contribution-rate volatility.

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GASB 68 Report and Audit

The GASB 68 Report provides pension liability and expense information for financial reporting purposes for employers.  

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The Employer and Member Contribution Rates

The Employer and Member Contribution Rates are calculated based on the results of the Actuarial Valuation Report and are approved by the SCERS Board to fund current and future retirement benefits for current and former employees, retirees, and their beneficiaries. These rates are applied each fiscal year to employers and members who share the responsibility to contribute to the pension system.  

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7-Year Employer Rate Projection

The 7-Year Employer Rate Projection provides information regarding employer estimated contribution rates for the next seven (7) years based on information available, and funding policies at the time of the modeling projection.  Assumptions such as investment returns and salary increases may differ from actual experience at the time of the modeling projection, which may significantly impact future contributions.     

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Actuarial Audit

The Actuarial Audit is an audit opinion of the Actuarial Valuation Report and the Actuarial Experience Study conducted every 4-5 years in accordance with the Code of Professional Conduct and Actuarial Standards of Practice set by the Actuarial Standards Board.