Updated FRS mortality tables will raise plan costs, early calculation available for a fee

Presenters told the board the state’s updated FRS mortality tables must be incorporated into local law plans and will increase the plan’s cost as the tables reflect longer life expectancy. Pedro said local plans “must use one of the two most recent mortality tables incorporated or utilized by FRS” for the Oct. 1, 2025 valuation and that the change will raise liabilities.

Board members discussed whether to pay for an early, separate calculation from the actuary so municipalities could budget ahead of the formal valuation. Troy said an early calculation has run about “$1,600,” and that some towns request that earlier estimate for planning purposes; the actuary would perform a special calculation now or include it in the regular valuation later.

Members pressed for visibility into the numbers before voting on related budget items. One member summarized the board’s preference: “We’ll just wait till it comes out and pay it all one time anyway,” and the board did not authorize an early calculation at this meeting. Pedro recommended asking constituent cities whether they want an early estimate for local budgeting needs; otherwise the board will adopt the updated table when the actuary issues the valuation (staff expects results to appear around the February–March meeting cycle).

Next steps: staff will report the formal valuation and any quantified impact at the meeting that follows the actuary’s work; cities may separately request an interim calculation if they want an earlier estimate for budgeting.