The PERA Board of Trustees met for its last meeting of 2022 on Nov. 18. The Board heard updates from PERA staff and consultants, and considered several important issues, including the next Board election, the member contribution interest rate, the results of the actuarial audit, and the Board’s strategic planning process.
2023 Board election
The Board approved the calendar for the 2023 Board election, where four seats will be up for election:
- School Division – currently held by JB Phillips
- Local Government Division – currently held by Trina Ruhland
- Judicial Division – currently held by Hon. Rebecca R. Freyre
- Retiree – currently held by Timothy M. O’Brien
Candidacy application will begin January 3 and the election will be held in May
Member contribution interest rate
By statute, the PERA Board is required to set the interest rate paid on PERA Defined Benefit (DB) Plan accounts. In 2020, the Board updated their policy regarding the setting of the interest rate. The policy reflects the Board’s principles and evaluates the interest rate as a component of members’ overall retirement benefit. Based on the guidance provided in the policy, the Board voted to keep the current rate of 3% (compounded annually) for 2023.
If a PERA member leaves PERA-covered employment and requests a refund of their DB account, they receive their contributions, the interest earned on that balance, and any applicable employer match. If that member keeps their account with PERA, however, their balance will continue to accrue interest and the member will be eligible for a lifetime monthly benefit when reaching retirement eligibility.
Results of actuarial audit
The Board heard the results of an independent audit of the work of PERA’s actuarial consultants, The Segal Group, Inc. The audit, by consulting firm Buck Global, LLC, found that Segal’s actuarial assumptions and methods are sound and in compliance with actuarial standards of practice.
Strategic plan update
Executive Director Ron Baker spoke about how the Board is continuing with its yearlong process to develop a new strategic plan to guide the organization and emphasized the current plan’s four key goals: (1) To fortify PERA’s financial resilience and adaptability, (2) to elevate PERA’s identity among stakeholders to that of a partner, (3) to strengthen organizational health and performance, and (4) to improve retirement security through “best fit” products, services, and education.
The Board will continue working on a draft plan throughout 2023, with the goal of adopting a new strategic plan for 2024 – 2029 by the end of the year. The strategic plan will guide the efforts of PERA staff.
Actuarial assumptionData such as demographics, mortality rates, and investment returns that retirement plans use to calculate future assets and liabilities.Defined benefitAlso known as a pension, this is a type of pooled retirement plan in which the plan promises to pay a lifetime benefit to the employee at retirement. The plan manages investments on behalf of members, and the retirement benefit is based on factors such as age at retirement, years of employment and salary history.