As mentioned in our post on Monday, the Demographic Experience Study focuses on assumptions that are people and behavior related, like mortality. We make assumptions around how long a person will live in order to more accurately model future expected costs to the pension system. During the latest demographic experience study cycle, we saw big improvements in mortality. What this means is that people are living longer than we currently assume. The State Actuary recommended that the assumption reflect the observed lower mortality rates for current retirees and even lower rates for future retirees which increases short-term costs but strengthens future plan health.
Posted on: Thu, 07 Aug 2014 23:36:50 +0000
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