This report presents the results of the actuarial valuation of the Springfield Contributory Retirement System. The valuation was performed as of January 1, 2022 pursuant to Chapter 32 of the General Laws of the Commonwealth of Massachusetts. The actuarial assumptions used in this valuation are the same as those used in the January 1, 2020 valuation except the investment return assumption was reduced from 7.25% to 7.0% and the mortality assumption was modified to reflect a more current mortality improvement scale.
This valuation was based on member data as of December 31, 2021, 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, 2021 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.
This report was prepared by PERAC for the exclusive use of the Springfield Retirement Board, its staff and its auditors. The report was performed to determine the funded status of the System and the contribution requirements to ensure that System assets along with the contributions are sufficient to provide the prescribed benefits. Use of this report by other parties may not be appropriate and may result in mistaken conclusions because of the failure to understand applicable assumptions, methods or the inapplicability of the report for purposes other than those intended. PERAC should be asked to review any statement to be made based on the results presented in this report. PERAC will accept no responsibility for any such statement made without its prior review.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as plan experience differing from that anticipated by the economic or demographic assumptions, changes in economic and demographic assumptions, and 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.
We, the undersigned actuaries, are members 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 our 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. We 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.
Respectfully submitted,
Public Employee Retirement Administration Commission