Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Actuarial Methods topic
No spam. Unsubscribe anytime.
Actuary offers asset‑smoothing briefing and educational options to committee
Summary
Michael Harbour, actuary for the Office of the State Actuary, provided materials and offered either one-on-one Q&A or a deeper session on asset smoothing and its effects on funded ratios and contribution rates; members noted different smoothing periods used by other states (6, 8, 10 years) and requested a future educational briefing.
Michael Harbour, actuary for the Office of the State Actuary, told the executive committee he had shared an OSA resource on asset smoothing and offered follow-up options, saying the materials "may be helpful to newer members or, simply a good refresher for others on how asset smoothing works, along with the way it impacts funded ratios and contribution rates." He offered to connect individually with committee members for Q&A or to present a deeper educational session in an interim meeting.
Members discussed differing smoothing-period practices. Chair Conway and other members noted that some states use a six-year smoothing period while "in our case, a 10 year smoothing" (discussion corrected to eight years during the meeting). Members agreed an educational session would be valuable but most thought September would be too soon and suggested later in the year. Harbour said a targeted educational briefing could be scheduled to accompany any future actuarial valuation discussion.
