The PERA Board of Trustees met on Friday, January 20, and learned more about the impact of recent Board action on PERA’s funded status.
At the November 2016 meeting, the Board adopted new mortality tables to reflect longer life expectancies and lowered the expected investment rate of return to 7.25 percent to reflect anticipated market conditions. (Read more about the impact of these changes.) As a result of these changes, PERA’s amortization period extends beyond the Board’s policy of 30 years. A longer amortization period increases the risks facing PERA members and therefore, the Board has directed PERA staff to open a broad dialogue on PERA’s funded status and future. To learn more about upcoming plans for a statewide engagement and education effort to explore options for improving PERA’s funded status, please visit PERA on the Issues. Additional updates will be provided as more information becomes available.