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Pension Funding Council directs actuarial evaluation of higher‑education supplemental retirement plan
Summary
The council voted 5–0 (1 excused) to direct the Office of State Actuary to perform an institution‑by‑institution actuarial evaluation of the Higher Education Supplemental Retirement Plan, with analysis and funding options due by July 1, 2028.
The Pension Funding Council on June 23 voted to direct the Office of State Actuary to conduct a full actuarial evaluation and analysis of each institution’s Higher Education Supplemental Retirement Plan (SRP), tasking OSA to assess institution‑specific contribution rates, sufficiency of trust assets, and funding policy options and to deliver findings by July 1, 2028.
The motion followed an educational briefing about the SRP from David Pringle (pension counsel, Appropriations Committee, Office of Program Research) and an overview from Mitch DeCamp and other actuaries from OSA. Council members had heard that the 2025 valuation presented earlier in the meeting was an accounting valuation intended for GASB reporting and not a funding valuation for setting contribution policy.
"The current rates are set in statute, but the council does have the authority to adopt contribution rates," the council chair said while introducing the motion. The motion asked OSA to analyze each institution’s supplemental‑benefit liability, determine whether an institution’s SRP liability is sufficiently funded, and provide funding‑policy options no later than 07/01/2028.
Council action and vote: the motion was moved and seconded and passed on a roll call vote of 5 ayes, 0 nays and 1 excused. The roll call named Representatives and Directors present; Senator Gildan was recorded as excused. The council’s action also precedented a later vote adopting the OSA‑calculated 2027–29 contribution rates.
Why it matters: SRP benefits are sensitive to market conditions and to the timing of members’ retirements because the plan’s assumed‑income component changes with market performance. OSA and the council said the requested actuarial evaluation would be the appropriate tool for assessing whether institution‑specific contribution changes are warranted and for developing funding options.
Next steps: OSA will commence the directed actuarial evaluation and deliver the requested analysis and funding‑policy options to the Pension Funding Council no later than July 1, 2028.
