Actuarial sensitivity analysis explained; lawmakers ask for methodology

A technical exchange centered on the actuarial assumptions behind new projections. S3 (staff/analyst) described a sensitivity analysis done for GRS that assumes the next decade will mirror the last decade's volatility, not the 7.5% assumed return often used in projections. "It was a sensitivity analysis that was done to demonstrate what happened if the next decade is as poor and as volatile as the last decade," S3 said, explaining why some figures looked more pessimistic than earlier runs.