PRB Plan Review Chart

PRB Actuarial Committee Refines Tools to Evaluate Pension Funds

In April, the actuarial committee of the Pension Review Board made adjustments to metrics formed to help them determine when to begin investigations into systems that show signs of weakening. 

“These are metrics that this committee and the Pension Review Board has been looking at for some time,” said committee chair Keith Brainard. “What is new this time is an effort to mathematically try to continue to refine these numbers in this case by identifying the distance from the average to be more easily able to identify outliers.”
 
The new plan review data chart includes a color coding and dashboarding treatment to amortization periods, funded ratios, discount rates, actual contributions as a percentage of actuarial defined contributions, payroll growth rate and unfunded liabilities as a percentage of payroll.
 
A quick glance shows that systems with longer or infinite amortization periods have the most orange color notations illustrating distance from the average of all systems. Systems with lower amortization periods have many fewer flags to their underlying dynamics. Click to view the chart: Plan Review Chart
 
The actuarial committee expects to meet again in September.