New Actuarial Assumptions Changes Postponed
During the March 31 meeting of the COAERS Board of Trustees, the Board voted to postpone implementing the recent changes in actuarial assumptions, which were scheduled to go into effect on July 1, 2020.
How does this affect your benefit calculations?
Typically, when new actuarial assumption changes are implemented, they may affect several categories of benefits calculations including:
- Service Purchase Calculations
- Partial Lump Sum Calculations Early Retirement Reduction
- Factors for Group B Members
- Joint & Survivor Annuity Factors
- Internal Revenue Code Section 415 Limitations
- Retirees Who Returned to Work and Suspended Benefits
As a result of the Board’s decision to delay implementing the changes, COAERS will continue to use its current methods of calculating benefits so our members don’t have to worry about calculations changing after July 1, 2020 if they request an estimate for a service purchase, a future retirement annuity with a partial lump sum payment, or a future joint and survivor annuity. Furthermore, members who are seeking to purchase service credit will no longer see large cost increases to service purchases made on or after July 1, 2020.
If you recently had a service purchase estimate or a retirement benefit estimate calculated based on the actuarial assumptions changes that were going into effect July 1, 2020, we encourage you to request a new one, especially if you are considering making a purchase or retiring in 2020.
For a new estimate, contact Member Services at (512) 458-2551 or email Member.Services@coaers.org.
When will the actuarial assumptions changes go into effect?
As the Board of Trustees reevaluates any future implementation of actuarial assumption changes, we will continue to keep our membership well-informed of these decisions and provide advanced notice of any impact it may have. COAERS is dedicated to its unwavering service to members and to upholding its mission to provide reliable retirement benefits.
If you have any questions about your retirement benefits or need assistance, please contact Member Services for more information at (512) 458-2551 or email Member.Services@coaers.org.