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M � MORANDUIVI
TO; All Plorida Defined Benetit Plans
FRONi: Klausner Kaufman Jensen & Levinson
R�: Pending F'RS mortality table
DATE: November 23, 2016
1'he Ploi•ida Retirement System ("FRS"� AC111�11'1�1� ASSUIll]�t1011 COilfel'eI1Cz recently voted to
revise its mortality assumptions for active empfoyees. As set forth below, the new pending rRS
mortality table merits discussion with your actuary. As �i result of this change, your Qoard may
have the option of immediately adopting the pending TRS table in your ne�t V1IL17C1017, or
continuing to use the current FRS mortality table for another year. Interestingly, rather than
assuming that employees would live longer, the new PRS mortality table for active employees
seemingly contemplates less improvement in mortalily.
Additionally, l�l(; PRS W11I b2 IOWel'lll� 1tS lI7V(',S1111L111 1't1:111'll c15511I11]�t1011 �y J �aS1S ])O1I1LS Il'Ol]7
7.65% to 7.6`%. The PRS actuary recommended lowering the investment return assumption to
7`%, howevcr, FRS is taking an increment�ll approach, targeting 7.�% as the longer tcrm
ol�jective.
I-Iere is a link to the e�ecutive suminaiy of tl�e I��RS actuarial estimating conference:
l�ttp://edi•.state.tl.us/Content/conferences/actuarial/1�RSezecutivesumm.pdf
T�]IS �)COCCSS �1tS pl'eC1SeIy" VVltll tlle tl'e11CI OI`1V�l�ll lll�llly municipal plans have been doin`� �OI' 1�1e
past several y(',Zl'S, incrementally lo�verin� lllf;ll' il]VCSt177�11t 1'Ctlll'll �15SL1111�t1011 1�t(',I' CO11S1lI1ftll01l
with their investment consultant and actuary.
Oiu•ol7ice is availaUle to answer any qtiestioils.
�UbO NORTH�VEST=�"Cfi S"1'REE'I', I�LAN'I'A'I'ION, FLORIDA 33�1�
Pxo�+E (9�4) 916-1202 • FAx: (954) 916-1232
{0007969�I.UOCX;1; w�i�w,robertdklausner.com
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