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Florida Retirement System Pension Plan Valuation Met Standards, Report No. 09-24, April 2009
 
Full report in PDF format


Our actuarial consultant, Gabriel, Roeder, Smith & Company, concluded that the 2008 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 2008 valuation were generally reasonable. However, our consultant also made several noteworthy observations and recommendations.
  • Our consultant noted that the 2008 valuation disclosed the actuarial present value of future benefits and the actuarial present values of future pay. However, these values do not take into account an assumption for the probability that system members will participate in the Deferred Retirement Option Program (DROP). As a result, our consultant recommended that future valuations include such disclosures that fully reflect the effect of expected DROP participation.
  • Additionally, our consultant continues to recommend that the valuation be improved by providing prior-year results in a side-by-side comparison with current-year results as appropriate. This information would provide a ready comparison of changes in values and percentage changes in the Florida Retirement System’s membership, assets, and benefits.
Although the 2008 valuation determined that pension plan’s assets exceeded its liabilities, State Board of Administration officials do not anticipate these surpluses will carry forward into the coming fiscal years. The most recent SBA-commissioned study to assess the likelihood that different investment strategies will earn rates of return sufficient to pay pension plan obligations projects that, because of poor investment returns related to the economic downturn, the pension plan’s liabilities will exceed assets by $8.7 billion, resulting in a funding status of 93% for 2009.

Which Government Program Summaries contain related information?

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. 08-30 Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard, published in April 2008.
  • Report No. 07-24 Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard,published in April 2007.
  • Report No. 06-68 Progress Report: Use of Investment Returns Has Increased; Plan for Addressing Associated Risks Should Be Documented,published in November 2006.
  • Report No. 06-38 Florida Retirement System Pension Plan Fully Funded and Valuation Met Standard,published in April 2006.
  • Report No. 05-25 Florida Retirement System Pension Plan Fully Funded and Valuation Met Standards,published in April 2005.
  • Report No. 04-70 Multi-Year Projections of Retirement System Funding Should Be Provided to the Legislature,published in October 2004.
  • 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. 02-37 While State Board of Administration Investments Perform Relatively Well, the SBA Should Reassess Planned Expansion of Alternative Investments,published in June 2002.

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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