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Milliman audit finds PERS' 2024 valuation 'reasonable'; calculated rates remain below statutory thresholds
Summary
Milliman's actuarial audit of Nevada PERS' 06/30/2024 valuation found the valuation 'reasonable' and generally compliant with actuarial standards; PERS staff said the FY2025 calculated rates are lower than current statutory rates but would not trigger statutory decreases in this non‑rate‑setting year.
Milliman, an independent actuarial firm, completed an audit of the Public Employees Retirement System's 06/30/2024 actuarial valuation and concluded the valuation was reasonable and generally complied with actuarial standards of practice, PERS staff told the Interim Retirement and Benefits Committee on Jan. 28.
Tina List, executive officer of Nevada PERS, said Milliman replicated the retained actuary's liability and asset numbers and provided "some observations and recommendations" that are marginal and intended for future experience‑study consideration. "In other words, Milliman gave a clean audit," List told committee members.
Key figures and implications: PERS reported a FY2025 investment return of about 10.12%, unrecognized gains of roughly $2.1 billion (regular fund) and $640 million (police/fire fund), and an increase in the actuarial funded ratio from 75.6% to 77.3% (market value basis 78.1% to 80.5%). Staff said calculated actuarial contribution rates for 2025 are lower than current statutory rates, but statutory decreases require specific statutory thresholds (for example, employer pay rate must be at least 2 percentage points lower) that are not met in this non‑rate‑setting valuation.
Assemblymember Carter asked what PERS would do to follow audit recommendations. List said PERS is already running additional data checks (for example, the spouse‑option valuation for police/fire retirees who retired in earlier periods), and will analyze the statutory timing lag that affects contribution‑rate roll forward as part of the next experience study. The staff did not expect the auditor's marginal recommendations to require changes to the 2025 calculated rates but said the observations will inform the 2026 rate‑setting valuation and the 2027 experience study.
Background: PERS conducts annual actuarial valuations to monitor assets and liabilities; statutes limit rate changes to specific years and thresholds. Milliman's audit was undertaken to validate procedures and assumptions ahead of future statutory and experience‑study milestones.
