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Office of Program Policy Analysis and Government Accountability

Florida Retirement System Pension Plan Fully Funded and Valuation Met Standards, Report No. 05-25, April 2005
 
Full report in PDF format


The Florida Retirement System pension plan continues to be fully funded. The 2004 actuarial valuation determined that the plan’s assets exceed its liabilities, with a surplus of $11.3 billion as of July 1, 2004. However, the 2004 actuarial valuation also shows that the plan’s funding status (as measured by the ratio of its assets to liabilities) has experienced a decline over the last five fiscal years (from 118% in Fiscal Year 1999-00 to 112% in Fiscal Year 2003-04. Our actuarial consultant, Gabriel, Roeder, Smith & Company, concluded that the 2004 valuation was made in accordance with relevant state laws and rules and actuarial standards. It further concluded that the assumptions and methods used in the 2004 valuation were generally reasonable. However, our consultant also made several technical recommendations.
  • The department’s consulting actuary should demonstrate their rationale for each of their recommended changes in the actuarial assumptions.
  • The department’s consulting actuary should include a more detailed analysis of the causes of gains and losses to the system’s liabilities, which would enable an outside actuary to better assess the factors causing recent gains and losses.
  • All information required for actuarial reports for local public employee retirement systems as specified in Chapter 60T 1 should also be included in the FRS Actuarial Valuation Report.
  • The Legislature, the Department of Management Services, and the department’s consulting actuary should continue to closely monitor the FRS pension plan’s funding status.

Based on observations made by our consultant and our review of the 2004 valuation, we made two additional recommendations.

  • All information required for actuarial reports for local public employee retirement systems as specified in Chapter 60T 1 should also be included in the FRS Actuarial Valuation Report.
  • The Legislature, the Department of Management Services, and the department’s consulting actuary should continue to closely monitor the FRS pension plan’s funding status.

Which Government Program Summaries contain related information?

Department of Management Services
Retirement Benefits Administration

What other OPPAGA-related materials are available?

  • Report No. 14-FRS Actuarial Review of the July 1, 2013 Actuarial Valuation of the Florida Retirement System,published in July 2014.
  • Report No. 14-99 Actuarial Review of the July 1, 2013 Actuarial Valuation of the Florida Retirement System,published in July 2014.
  • Report No. 13-FRS Actuarial Review of the July 1, 2012 Actuarial Valuation of the Florida Retirement System,published in August 2013.
  • Report No. 13-99 Actuarial Review of the July 1, 2012 Actuarial Valuation of the Florida Retirement System,published in August 2013.
  • Report No. 12-09 Florida Retirement System Pension Plan Valuation Met Standards,published in July 2012.
  • Report No. 11-17 Florida Retirement System Pension Plan Valuation Met Standards,published in May 2011.
  • Report No. 10-46 Florida Retirement System Pension Plan Valuation Met Standards,published in June 2010.
  • Report No. 09-24 Florida Retirement System Pension Plan Valuation Met Standards,published in April 2009.
  • 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.

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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