Retirement Services Division State Employees Retirement Commission's Actuarial Subcommittee April 20, 2011 Minutes


April 20, 2011

Robert Baus
Charles Casella
Claude Poulin
Linda Yelmini

Jeanne Kopek, Acting Director, Retirement Services Division
Hon. Paul J. Knierim, Probate Court Administrator
Bonnie Bennett, Esq., Probate Court Administration

The meeting began at about 4:15 p.m.

The Honorable Paul J. Knierim, Probate Court Administrator, appeared before the Subcommittee accompanied by Bonnie Bennet, an attorney with the Probate Court Administration, to advocate for the Subcommittee's approval of his request for authorization to make contributions to the Probate Judges & Employees Retirement System (PJERS) in excess of those required by the December 31, 2009 actuarial report of the system.

Judge Knierim explained that the Probate Court Administration contacted Cavanaugh MacDonald Consulting, LLC, the State Employees Retirement Commission's actuary for PJERS, to request an analysis of the impact that the January 2011 consolidation of the Probate Courts made to the financial condition of PJERS. The result of that analysis revealed that these changes have increased the total accrued liability of PJERS by almost $5 million and increased the estimated employer contribution required for the fiscal year ending June 30, 2012 from $0 to over $100,000 and projected the required contribution for the fiscal year ending June 30, 2013 to be more than $600,000. Judge Knierim explained that, while he understands that the next full actuarial valuation (effective December 31, 2011 scheduled to be completed in the Spring of 2012) will refine the results achieved through the analysis, in order to offset the increased liability and smooth the transition to larger employer contributions anticipated for the future, he was seeking the Commission's authorization to contribute $200,000 to PJERS in the current fiscal year and $200,000 to PJERS in the fiscal year ending June 30, 2012.

Mr. Baus moved, seconded by Mr. Poulin to recommend that in light of the recent Probate Court consolidation and the expected increased liability to PJERS the Commission approve the Probate Court Administrator's request and certify to the State Treasurer the transfer of these additional funds. Unanimous decision.

The meeting adjourned at about 4:45 p.m.

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