PROVIDENCE, R.I. – General Treasurer Gina M. Raimondo, chair of the State Retirement Board, today released the following statement regarding the April 13 Retirement Board meeting, during which the recommendations from the Actuarial Experience Study for the Six-Year Period Ending June 30, 2010 were approved:
“I applaud the Board for its hard work and dedication during this entire process. Accepting the Experience Study recommendations was the most responsible course of action for the health and sustainability of the state’s retirement system. By approving the proposed assumptions, the state is able to keep to its schedule of a May actuarial valuation report, which will give the state the most up-to-date information for its next bond offering.”
The approved major recommendations of the Experience Study include:
- Lowering the inflation assumption from 3 percent to 2.75 percent
- Lowering the net real investment return assumption from 5.25 percent to 4.75 percent (the combination lowers the nominal assumed investment return from 8.25 percent to 7.5 percent)
- Increasing the life expectancy for all groups, and adding an explicit provision for continual future mortality improvement
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