Office of Program Policy Analysis and Government Accountability
Office of Program Policy Analysis and Government Accountability

Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard

Report 06-38, April 2006




Report Summary

Our actuarial consultant, Gabriel, Roeder, Smith & Company, concluded that the 2005 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 2005 valuation were generally reasonable. However, our consultant also made several technical recommendations and observations.

  • 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. For example, the valuation could be improved by providing prior year results along with side-by-side current year results as appropriate. This information would provide a ready comparison both in terms of changes in absolute value and percentage changes.
  • Additional analysis of the causes of the greater than expected increase in actuarial liabilities should be conducted. For example, additional analysis and detail is warranted for the liability loss of $1.317 billion that was attributed to inactive data clean up.

Based on observations made by our consultant and our review of the 2005 valuation and experience study, we made two additional recommendations.

  • We continue to recommend that all information required for actuarial reports for local public employee retirement systems as specified in Chapter 60T‑1, Florida Administrative Code, also be included in the FRS actuarial valuation report.
  • We also recommend that the Legislature, the Department of Management Services, and the department's consulting actuary continue to monitor closely the FRS pension plan's funding status.


Related Reports
  1. Actuarial Review of the July 1, 2013 Actuarial Valuation of the Florida Retirement System
    Report 14-FRS July 2014
  2. Actuarial Review of the July 1, 2012 Actuarial Valuation of the Florida Retirement System
    Report 13-FRS August 2013
  3. Florida Retirement System Pension Plan Valuation Met Standards
    Report 12-09 July 2012
  4. Florida Retirement System Pension Plan Valuation Met Standards
    Report 11-17 May 2011
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.
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