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Office of Program Policy Analysis and Government Accountability

Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard, Report No. 06-38, April 2006
 
Full report in PDF format


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.

Which Government Program Summaries contain related information?

Retirement Benefits Administration
Department of Management Services

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. 10-15 Several Options Are Available for Modifying the Florida Retirement System’s Class Structure to Reduce System Costs,published in January 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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