This report presents the results of the actuarial valuation of the Springfield Contributory Retirement System. The valuation was performed as of January 1, 2016 pursuant to Chapter 32 of the General Laws of the Commonwealth of Massachusetts. There were several changes in the actuarial assumptions used in this valuation. The investment return assumption was reduced from 7.875% to 7.65%, the salary increase assumption now reflects our standard salary increase assumption, and the mortality assumption now reflects a fully generational table. This valuation was based on member data as of December 31, 2015, which was supplied by the Retirement Board. Such tests as we deemed necessary were performed on the data to ensure accuracy. Asset information as of December 31, 2015 was provided in the Annual Statement for the Financial Condition as
submitted to this office in accordance with G.L. c. 32, ss. 20(5)(h), 23(1) and 23(2)(e). Both the membership data and financial information were reviewed for reasonableness, but were not audited by us. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions, changes in economic and demographic assumptions, increases or decreases expected as part of natural operation of the methodology used for these measurements such as additional contribution requirements based on the plan’s funded status and changes in plan provisions or applicable law. As part of this valuation, we have not performed an analysis of the potential range of future measurements.
I am a member of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this report. In my opinion, the actuarial assumptions used in this report are reasonable, are related to plan experience and expectations, and represent our best estimate of anticipated experience under the system. I believe this report represents an accurate appraisal of the actuarial status of the system performed in accordance with generally accepted actuarial principles and practices relating to pension plans.
Public Employee Retirement Administration Commission