In accordance with RSMo. 536.016, below are the proposed rules of the LAGERS system which have been recently published by the Missouri Register.
Click here to view the official text of the following proposed rules in the Missouri Register.
16 CSR 20-4.010 Actuarial Assumptions
08/16/21
Summary of Proposed Amendment: The Retirement System is amending the rule by updating the actuarial assumptions stated in sections (1)–(5), updating Table 1, moving and amending Table 2 to Table 3, and adding a new Table 2.
Title 16-RETIREMENT SYSTEMS
Division 20-Missouri Local Government Employees’ Retirement System (LAGERS)
Chapter 4—Actuarial Assumptions
16 CSR 20-4.010 Actuarial Assumptions
PURPOSE: This proposed amendment updates the actuarial assumptions used by the Retirement System.
(1) Beginning with the Retirement System’s July 2021-June 2022 fiscal year, [T]the investment return rate used in making the valuations is seven [and twenty-five hundredths] percent (7.[25]00%) per year, compounded annually. This rate of return is not the assumed real rate of return. The real rate of return is the rate of investment return in excess of the wage inflation rate. Considering other financial assumptions, the seven [and twenty-five hundredths] percent (7.[25]00%) investment return rate translates to an assumed real rate of return of four and twenty-five hundredths percent (4.[00]25%). [Adopted 2016.]
(2) Beginning with the Retirement System’s July 2021-June 2022 fiscal year, [T]the mortality table used in evaluating allowances to be paid is [RP-2014 Healthy Annuitant Table (adjusted backward to 2006) with base year of 2017 for males and 2006 for females] PubG-2010 Retiree Mortality Tables, increased by fifteen percent (15%). Future mortality improvements are assumed each year based on the two- (2-) dimensional sex-distinct mortality
improvement scale MP-[2015]2020. [Adopted 2016.]
(3) Beginning with the Retirement System’s July 2021-June 2022 fiscal year, [T]the probabilities of general members’ retirement with an age and service allowance are shown in Table 1, included herein and the probabilities of firefighters, police officers and public safety personnel (as defined in section 70.631 RSMo.) members’ retirement with an age and service allowance are shown in Table 2, included herein. [Adopted 2016.]
(4) Beginning with the Retirement System’s July 2021-June 2022 fiscal year, [T]the probabilities of withdrawal from service together with individual pay increase assumptions are shown in Table [2] 3, included herein. [Adopted 2016.]
(5) Beginning with the Retirement System’s July 2021-June 2022 fiscal year, [T]total active member payroll is assumed to increase [three and twenty-five] two and seventy-five hundredths percent ([3.25]2.75%) per year, which is the portion of the individual pay increase assumptions attributable to inflation. In effect, this assumes
no change in the number of active members per employer. [Adopted 2016.]
Click Here to View Fiscal Note
AUTHORITY: section 70.605.14, RSMo 2016. Original rule filed Dec. 29, 1975, effective Jan. 8, 1976. For intervening history, please consult the Code of State Regulations. Amended: Filed July 7, 2021.
PUBLIC COST: This proposed amendment will not cost state agencies more than five hundred dollars ($500) in the aggregate. This proposed amendment may result in a cost in an undetermined amount to a political subdivision that participates in the retirement system pursuant to section 70.600-70.755, RSMo.
PRIVATE COST: This proposed amendment will not cost private entities more than five hundred dollars ($500) in the aggregate.
NOTICE TO SUBMIT COMMENTS: Any interested person or entity may submit written comments in support of or in opposition to the proposed rule(s). Comments should be directed to the Missouri Local Government Employees Retirement System (LAGERS), Attn: Jason A. Paulsmeyer, Chief Counsel, P.O. Box 1665, Jefferson City, MO 65102. To be considered, comments must be received within thirty (30) days after publication of this notice in the Missouri Register. No public hearing is scheduled.
