PSRS and PEERS Receive National Public Pension Standards Awards for Funding and Administration
PSRS and PEERS received the Public Pension Coordinating Council's (PPCC) 2020 Public Pension Standards Awards for meeting professional standards in plan funding and administration.
PSRS has received the awards each year since 2004, and PEERS each year since 2005. Once again, this year, both Systems not only met, but also substantially exceeded the requirements for both the plan funding and administration awards.
“These awards are an affirmation that we continue to meet our organizational and strategic goals for maintaining healthy funding for the Systems, which in turn allows us to provide outstanding member service and help our members achieve financial security in retirement,” said PSRS/PEERS Executive Director Steve Yoakum. “We are honored to receive these awards again this year.”
To receive the Recognition Award for Funding, a retirement system must certify that it meets the requirements for funding adequacy, as defined as meeting one or more of the following criteria:
- A funded ratio of 100% (as of June 30, 2020 PSRS was 84.0% funded and PEERS was 86.3% funded),
- Contribution rates equal to or greater than 100% of the Actuarially Determined Contribution Rate (both PSRS and PEERS contribution rates currently meet this criterion), or
- A plan has been approved by the governing body to achieve one or both of these criteria within five years.
To receive the Recognition Award for Administration, a retirement system must certify that it meets the requirements in five areas of assessment. Those areas are:
- Comprehensive Benefit Program. The system must provide a comprehensive benefit program including service retirement benefits, in-service death benefits, disability benefits, vesting and provisions for granting a cost-of-living adjustment.
- Actuarial. An actuarial valuation must be completed at least every two years using generally recognized and accepted actuarial principles and practices.
- Audit. The system must obtain an unbiased opinion from an independent audit conducted in accordance with government auditing standards generally accepted in the United States.
- Investments. The system must follow written investment policies and written fiduciary standards and the system must obtain an annual investment performance evaluation from an outside investment review entity.
- Communications. Members must be provided a handbook or summary plan description, regular updates to the documents, and an annual benefit statement. Meetings of the governing board of the system must be conducted at least quarterly with adequate public notice.
The PPCC is a coalition of three national associations that represent retirement systems and administrators. Combined, these associations serve retirement systems that provide pension coverage for most of the nation’s employees of state and local government.
- The National Association of State Retirement Administrators (NASRA)
- The National Council on Teacher Retirement (NCTR)
- The National Conference on Public Employee Retirement Systems (NCPERS)
The Public Pension Standards reflect minimum expectations for public retirement systems management and administration and serve as a benchmark by which all defined benefit public pension plans should be measured.