State actuary outlines pension evaluations, including volunteer firefighter plan review

Sarah Baker, actuary with the Office of the State Actuary, briefed the executive committee on the office's upcoming and ongoing work, including a full actuarial evaluation of the state's DRS pension plans, cash-flow analysis support for the State Investment Board and a six-year outlook of pension contributions to aid budget riders. "You did just hear about one of the biggest projects, which is the actuarial evaluation report on the DRS pension plans," Baker told the committee.

Baker said OSA's work will also include support for the GATE program and WA Cares, and she said the office will prepare an actuarial evaluation of the volunteer firefighter pension plan that will serve as a starting point for study of the fire insurance premium tax, which is the plan's primary funding source. On transfer bills that allow members to move into PSERS, Baker said such bills have "generally" increased costs for PCERS in prior cases because transferring members tend to be farther along in their careers and have higher salaries; she emphasized that total cost impacts depend on bill structure and the demographics of affected members.

Committee members asked staff to ensure any future materials include options for members who would transfer between systems and to provide comparative data that will feed into actuarial work. Baker closed by offering to return for further questions and to provide the requested analyses.