Franklin Regional Retirement System – The FY2012 appropriation amounts have been approved by PERAC and the letters certifying each unit’s assessment amount are being mailed on January 11, 2011.
The assessment amounts are based on each unit’s percentage of total annual salaries of all the units. Each unit is then assessed a share of the annual appropriation based on that salary percentage. (See page 16 of the 1/1/2010 actuarial report to see the current funding schedule.)
The list of assessment amounts has been uploaded to the “Reports” page on the FRRS website (FY2012 Assessments). The second and third to last columns on the right of the list are the two assessment payment options. If a unit can make full payment on July 1 (or shortly thereafter), the unit will save the amount of the discount, otherwise payments are due semiannually on July 1 and January 1 for (half) the amount in the “Semi Annual Total” column. The percentage listed in the “percent” column is each unit’s percentage of total annual salaries of all the units for this year. Also of note on this list is the percentage listed in the second column, “percent of assessments to salaries”. This represents the units’ “match” when funding the system. Currently it is higher than the expected normal rate of 4 – 5% because it is making up for the “pay-as-you-go” years prior to 1988. In 1988, all retirement systems began a forty-year funding schedule to become “fully funded”. FRRS is scheduled to do so by the year 2030, at which point, the “percent of assessments to salaries” is expected to settle to around 5% – however, the schedule is updated every two years to incorporate current economic results and changes in future factors – so full funding might happen sooner, or later, depending on conditions. Dale Kowacki, Executive Director