| Mortality Assumption Changes (7/17/09) |
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The PERS Board must adopt actuarial equivalency factors (AEFs) every two years. Statute (ORS 238.607) requires that the factors “must use the best actuarial information on mortality available at the time.” The Board will adopt new AEFs using the updated mortality tables at its November 2009 meeting and they will be effective January 1, 2010.
The PERS Board adopted the actuary’s recommendation that the basis for those tables be changed from “static” to “generational” at its July 16, 2009 meeting. With generational mortality tables, longevity is based on the year a member was born, as opposed to everyone who reaches a certain age having the same life expectancy.
Examples of how the new mortality tables will affect an initial Money Match or Formula Plus Annuity benefit payment are being developed and will be posted on the PERS website.
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