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Chester County trustees review actuarial assumptions; consultant recommends keeping 7% return and updating mortality tables
Summary
At the Aug. 26, 2025 meeting of the Chester County Employees' Retirement Fund, the board received a five‑year actuarial experience study and recommendations to update demographic assumptions and adopt an explicit administrative expense loading while retaining a 7% long‑term return assumption.
At the Aug. 26, 2025 meeting of the Chester County Employees' Retirement Fund, the board received a detailed five‑year actuarial experience review and a set of recommended updates to the plan’s actuarial assumptions. The consultant recommended no change to the fund’s 7% long‑term investment return assumption but proposed updates to demographic and expense assumptions that would take effect Jan. 1, 2026 if adopted.
Why it matters: actuarial assumptions underpin the plan’s reported liability and annual contribution requirements. Changes affect how much the county and employees must contribute and the plan’s funded ratio.
Key recommendations and rationale - Investment return and inflation: The consultant recommended retaining a 7% investment return assumption and a long‑term inflation assumption of 2.75%. The consultant said a Monte Carlo simulation of the fund’s asset mix produces a median long‑term return above 7% and that Pennsylvania counties commonly retain a 7% assumption. - Salary…
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