Each year, LAGERS employers receive an annual actuarial valuation, which is a report that outlines your employer’s funding progress in LAGERS and provides updated contribution rates for the upcoming fiscal year.
While the valuation may seem complex, it contains valuable insights that can help you make informed decisions about benefits, contributions, and long-term financial planning.
Below is a breakdown of what your annual valuation includes and how to make the most of it. For more information, visit: Your Annual Actuarial Valuation on our website or register for our Reading Your Valuation webinar.
When will I receive my annual actuarial valuation?
Your valuation will be available beginning in July. The information in your valuation is effective with the start of your fiscal year, beginning in 2026. LAGERS sends your valuation a minimum of six months before the effective fiscal year, to ensure you have your new LAGERS contribution rate(s) during your annual budgeting process.
What is included in the annual actuarial valuation?
The annual actuarial valuation includes your updated contribution rate, funding progress, and demographic experience, such as recent retirements, employee turnover, and salary increases.
Contribution rates
One of the most important components of the valuation is your updated employer contribution rate. This rate is adjusted annually to ensure that your benefits are being funded at the appropriate levels.
Each employer’s rate is unique and is based on your elected benefit level, as well as the combined experiences of your organization and the LAGERS system. Even small changes in your workforce can affect the rate, making it essential to review your valuation each year.
LAGERS uses several mechanisms to help stabilize employer contribution rates and reduce year-to-year volatility. One key safeguard is a 1% cap on annual rate increases, meaning your employer’s contribution rate cannot rise by more than 1% of payroll in a given year (unless you have adopted a benefit enhancement).
Additionally, LAGERS uses five-year smoothing of investment gains and losses to help cushion the impact of market fluctuations. Smoothing helps keep contribution rates stable even in turbulent markets.
What if my organization is considering a benefit change?
If you’re thinking about adjusting your benefit level or making an additional contribution, you’ll need to request a supplemental actuarial valuation. This is a customized report that reflects how those changes would impact your rates and funding status. It amends the annual valuation and ensures any decisions you make are based on accurate data.
For more information or to request a supplemental valuation, call LAGERS at 800-447-4334 or by email [email protected].
What if my organization has an unfunded liability?
Factors such as prior service elections, workforce changes (retirements, turnover, wage increases), benefit adjustments, and LAGERS’ investment performance can impact your unfunded liability. Your unfunded liability is paid off as part of your monthly contribution rate to LAGERS. Although your rates are designed to pay your liability down over time, you also have the option to make a lump-sum contribution to reduce your unfunded liability more quickly. This can lower your monthly contribution rate and improve your long-term funding health.
Where can I access my report?
Your full annual actuarial valuation is always available on ECLIPSE, LAGERS’ secure employer portal. To locate your valuation in ECLIPSE:
- In ECLIPSE, click ‘Profile’ under agency details.
- Within your profile, open the Valuation Reports tab and locate your “Annual Valuations.”
- Check the circle for the year you wish to view (2025 will contain your FY 2026 rates, and 2024 will contain your FY 2025 rates).
- Once you have selected the year, click the ‘View Annual’ button above.
- FY 2026 Rates can be located on Page 12 of the valuation.
