Actuary recommends changes to Norwalk pension assumptions, suggests separate amortization for new gains/losses; trustees defer vote

An actuarial presentation at the Feb. 12 Norwalk City pension boards meeting proposed multiple changes to long‑term assumptions and to the amortization approach used to pay down unfunded liabilities. The consultant said trustees should consider (1) lowering the inflation assumption to 2.5 percent, (2) keeping the investment rate of return at 6.5 percent, (3) adopting the Public 2010 family of mortality tables with Connecticut adjustments, and (4) keeping the current legacy closed amortization schedule for existing bases while amortizing any new gains or losses on separate closed bases (the consultant recommended a new base length of 15–20 years).

Dan, the lead actuary from CABMAC (Kavanaugh McDonald), told trustees that an experience study reviews all assumptions that feed valuation reports: "What is an experience study? ... it's basically all of the assumptions that go into the valuation reports." He said the firm typically performs these reviews on a five‑year cadence and that the current presentation covered a…