MINUTES OF MEETING
STATE EMPLOYEES RETIREMENT COMMISSION
July 16, 2008
Peter R. Blum, Chairman
Dr. Thomas Woodruff, Director, Retirement Services Division
Jeanne Kopek, Assistant Director, Retirement Services Division
Althea Schwartz, Milliman
Rebecca Sielman, Milliman
The meeting began at about 2:00.
Becky Sielman presented the demographic results of the 2008 State Employees Retirement System experience study.
Healthy Retired Mortality - based upon the findings, Milliman proposed using the RP2000 table - 15 years for males, 25 years for females - for projecting healthy retired mortality. The Subcommittee members agreed.
Disabled Mortality - Milliman proposed using the RP2000 disabled table -75% of RP2000 for males, 115% of RP2000 for females. The Subcommittee members agreed.
Turnover - Milliman proposed "tweaking" the non- hazardous percentages to better fit the actual experience. For hazardous change multiplier to 35% of non-hazardous for males, 55% for females. The Subcommittee members agreed.
Retirement - Milliman proposed "tweaking" numbers to match actual experience. The Subcommittee members agreed.
The Director asked for capability of modeling impact of an ERIP using 2003 as an example so that the Division could estimate financial impact of any future proposed ERIP. Milliman agreed could look at "what if" scenario following completion of the 2008 SERS actuarial valuation to anticipate cost and could build in medical costs as well.
Disability - experience changed due to reduction in disability backlog.
Refine to look at last two years, less data but more representative of true
results. Change percentages hazardous duty service related 20%, non-hazardous
duty service related 12%, non-service related 30%. Becky will send revised info
to subcommittee members and can review at next meeting.
Becky explained that the next meeting would be to review economic assumptions: COLAs, salary rates, interest rate. Becky requested that the Director get the Capital Market Assumptions from the Treasurer's Office.
Incorporating SERS administrative expenses into system valuation was discussed; explicit load for administrative expenses or build into normal cost. Becky suggested looking at last couple of years' expenses. Division will put together administrative costs, Milliman, MEB, Commission trustees, chairman, etc., for consideration.
Meeting adjourned at about 4:15.
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