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NI � MORANDUNI
TO: �111 Plorida Detined Bcnel7t Plans
FROIvI: Klausner KauCman Jensen & Levinson
R�: Pending PRS uiortality table
DATE: Novembei•23, 2016
"1'he Plorida Retirement System (`'FRS") flctuarial Assumption Conference recently votecl to
revise its mortality assumptions for active employees. As set torth below, the new pending rRS
mortality table mei•its discussion with yo�u� actua�y. As a i•esult of this chan�e, yOUI' BO�lI'CI lll�ly
have the option of immediately adopting the pencling rRS table in yoiu• ne�t valuation, or
C011�lillllll� to use the current FRS mortality table for ��nother year. Interestinbly, rather than
�ssuming that employees �votild live longer, the new I�RS mortality table for �ctive employees
seemingly contemplates less improvement in mortality.
ACIC�ICIOI1S�Iy, the PRS ��ill be lowering its investment reiurn assumption by 5 basis points from
7.65% to 7.6%. TIIe PRS actuai•y recommendeci lo�vci•ing the investment return ilSSlI111p11011 t0
7`%, ho�vever. FRS is takin� an incremental approach, targetin� 7.�% as the longer term
objective. � �
I-Iere is a link to the e�ecutive summary of the FRS actuarial estimatin�� conference:
httt�://edr.state.i].tis/Co»tent/conlerences/Fll'lll�ll'11I/I'RSt\�Cl1IIV(;5LI111111.�C�1
This process tits precisely �vith the trend of�vhat many municipal plans have been doing for the
past several years, incrementally lo�vering lllEll' IIIVESIIlll.11l 1'C;1111'll aSSLIIlIOt1011 1ItE',1' COI]SUlt�ition
with their investment consultant and actuary.
Our ol'lice is �vailavle to lnswer any questions.
�050 NORTFI�VEST=�1'H S7'REE'I', �LAN1'.1"I'IOIV, FLoxtD.� 33317
Pxo�tE: (9�4) 9]6-1202 • FAX: (954) 916-1?32
{0007969�4.DOCX;1; w«,��v.robertdklausner.com
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