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Old 09-17-2018, 01:10 PM
felipe_R felipe_R is offline
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Default Can anyone skim and interpet this Actuarial valuation of my retiremenent system?

Passed 2 exams like 10 years ago but then stayed in education.

Anyhow a large part of my compensation is a rare defined benefits program.

But I kind of wonder about their ability to meet their obligations.

Can anyone have a peek at this and grade the overall health? I dont expect anyone to read this, Im just having a hard time intepreting it since I dont work in the industry.

https://www.fairfaxcounty.gov/retire...ort%202017.pdf
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Old 09-17-2018, 01:30 PM
StillCrazed StillCrazed is offline
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Thanks for asking. The pension/Social Security forum has lots of discussion on these types of plans. In general, public school educators are in pension funds where the administrators are very optimistic about their investment yield assumptions.
This means that future benefit payments will come from current funds, future investment earnings, employee contributions, and tax revenues. You are well to ask. Taxpayers will probably be forced to pay more in the future than the rates now. This may also require you to make additional employee contributions. But hang in there, because teachers usually get far more benefits than they pay for.
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Old 09-17-2018, 02:37 PM
Dr T Non-Fan Dr T Non-Fan is offline
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The main thing to look at is the assumed discount rate. it's probably stated at some level similar to the assumed rate of return on assets, in order to make the NPV low. (DISCLAIMER: I have not read your county's valuation. Just going off of The Late Dr J Gold.)

It is important for you to retire earlier than the suckers who retire later. You'll get yours.
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Old 09-17-2018, 02:45 PM
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Dang, those are some ugly graphs (just talking about the color scheme)

The discount rate is 7.25% -- page 45. That is a driving valuation assumption, as DTNF says.
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Old 09-17-2018, 02:48 PM
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Mary Pat Campbell
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Okay, the contribution rate graph is ugly (top of page 4). It's not unusual for public plans, but that is not something you want to see.
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Old 09-18-2018, 06:16 AM
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Mary Pat Campbell
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This may explain the escalating costs:
https://www.fairfaxcounty.gov/retire...option-program
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Old 09-18-2018, 07:20 AM
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In addition to those important assumptions the other posters have pointed out, another key stat a lot of people will look at is the "funded level." If it is above 80% (or even 70% or in some cases 60%), people will say the plan is healthy.





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Old 09-18-2018, 09:40 AM
nonactuarialactuary nonactuarialactuary is offline
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Iím not a pension actuary (and only briefly skimmed the report), but the fact that this is Fairfax County, VA has to help, right? This is one of the wealthiest counties in the country (I think only neighboring Loudoun County, VA is wealthier). Unlike a place like Detroit that has seen massive poverty and depopulation in recent decades, canít Fairfax County always tap into its existing taxpayer base to fund any shortfall should the time come?
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Old 09-18-2018, 10:49 AM
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Mary Pat Campbell
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Well, a lot of that population increased in the Obama years... and may not want to stick around.

I will note that the vice chair of the Fairfax pension: https://www.fairfaxcounty.gov/retire...board-trustees

is Hank Kim, who is also the Executive Director of NCPERS: https://www.ncpers.org/staff
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