TRSL valuation report: System assets rise again in fiscal year 2014

October 6, 2014

Baton Rouge – The actuarial value of assets held by the Teachers’ Retirement System of Louisiana (TRSL) jumped from $14.7 billion to $16.1 billion for fiscal year ended June 30, 2014—a $1.4 billion increase—as reported in TRSL’s latest valuation report. This marks the second year in a row that System assets grew by more than $1 billion.

TRSL actuary, Shelley Johnson, of Foster & Foster Actuaries and Consultants presented the annual valuation report to the TRSL Board at its October meeting. 

Johnson also reported that the retirement system’s funding status increased to 57.4% from 56.4% compared to the previous fiscal year, which means that TRSL has more money on hand to pay the cost of present and future benefits.

In more good news, the projected total employer contribution rate for FY 2015-16, decreased by 1.7% of payroll for K-12 employers. The total employer contribution rate includes a shared payment to the unfunded accrued liability (UAL). The valuation report did show an increase in the UAL.

“The increase is due to a restatement of pension liabilities based upon changes the board adopted this year,” said TRSL Director Maureen H. Westgard. “The board moved to a new valuation method for calculating assets and liabilities, and it lowered the discount rate to 7.75% from 8.0%. Both changes were approved by either the Legislature or the Public Retirement Systems’ Actuarial Committee as a means to contain future costs and ensure plan sustainability.”

In plan demographics, the number of actively employed TRSL members remained steady at 82,866, while the number of retirees grew by about 2,000 to 73,195.