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Office of Program Policy Analysis and Government Accountability

Recommended Florida Retirement System Contribution Rates Remain Reasonable; Asset Growth Has Slowed, Report No. 03-21, March 2003
 
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The Florida Retirement System continues to be fully funded. The 2002 actuarial valuation determined that the system’s assets continued to exceed its liabilities, with a surplus of $12.936 billion as of July 1, 2002. However, the 2002 actuarial valuation also shows that the growth rate in the system’s ratio of assets to liabilities has leveled off and begun a downward trend. The system’s ratio of assets to liabilities was 118.09% in Fiscal Year 1999-00, 117.93% in Fiscal Year 2000-01, and 114.96% in Fiscal Year 2001-02.

Buck Consultants, Inc., concluded that the 2002 valuation recommended reasonable contribution rates and was made in accordance with relevant state laws and rules, and actuarial standards. It further concluded that the assumptions and methods used in the 2002 valuation were generally reasonable.

However, it also made several technical recommendations.

  • Although improvements have been made since the 2001 valuation, the department’s consulting actuary should include a more detailed analysis of the causes of gains and losses to the system’s liabilities.  This would enable an outside actuary to better assess the factors causing recent gains and losses.
  • Retirement rate assumptions should be monitored for appropriateness, especially for younger system members.

Which Government Program Summaries contain related information?

Retirement Benefits Administration

What other OPPAGA-related materials are available?

  • Report No. 08-30 Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard, published in April 2008.
  • Report No. 07-24 Program Review: Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard, published in April 2007.
  • Report No. 04-13 Program Review of the Florida Retirement System Pension Plan Fully Funded and Valuation Met Standards, published in February 2004.
  • Report No. 02-20 Program Review: Recommended Florida Retirement System Contribution Rates Are Reasonable, published in March 2002.
  • Report No. 01-19 Status Report: Jobs for Florida’s Graduates Program Appears to Be Improving Its Performance, published in March 2001.
  • Report No. 99-52 Program Review: Investment of Florida Retirement System Assets Meets Goals, But Earnings Could Be Increased, published in May 2000.
  • Report No.  99-50 Program Review: The Florida Retirement System Continues to Be Fully Funded; Unfunded Liability Eliminated, published in May 2000.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
e-mail address: oppaga@oppaga.fl.gov


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