What Are Actuarial Experience Studies?
TMRS generally performs an actuarial experience investigation study once every four years. These experience studies are conducted in accordance with generally accepted actuarial principles and practices and in compliance with Actuarial Standards of Practice issued by the Actuarial Standards Board. The actuarial assumptions used in the annual actuarial valuations and reviewed as part of the experience study are generally grouped into the following two major categories:
- Economic assumptions – including investment return, individual salary increases, overall payroll growth, inflation, etc.
- Demographic assumptions – including rates of termination, forfeiture, service retirement, disability retirement, mortality, etc.
During 2015, TMRS’s consulting actuary conducted a four-year experience investigation study, for the period ending December 31, 2014. This experience study included a full scale review by the actuaries of all actuarial assumptions – economic and demographic. In 2013, a mortality experience investigation study was performed by the consulting actuary covering the three-year period of January 1, 2009 to December 31, 2011, with updates through 2012, as known.