PRSAC Approves 2022 TRSL Valuation

On Thursday, December 15 the Public Retirement Systems’ Actuarial Committee (PRSAC) approved the actuarial valuation report for the Teachers’ Retirement System of Louisiana (TRSL). While the TRSL Board of Trustees approved the valuation report in November, PRSAC must also approve the report.

What does this mean for Louisiana retired teachers?

The approval from PRSAC essentially confirms the valuation report, which shows TRSL continues to be in good financial standing. The funded status of the system increased to 73.7 percent from 71.8 percent. The “funded status” of a retirement system refers to the funding ratio, which is a measure of the retirement system’s assets against its liabilities. Or, how much funds (assets) the retirement system has compared to its debts (liabilities). The funded ratio is a metric commonly used to gauge a pension plan’s financial position.

In addition, TRSL was able to pay down nearly $227 million of the Unfunded Accrued Liability (UAL) or debt.

The recommended DROP rate must also be adopted by PRSAC before it is considered final and interest can be posted to eligible DROP accounts. The DROP interest rate for members who were eligible to participate in DROP before January 1, 2004 is 8.46%. Members who were eligible to participate in the program on or after January 1, 2004 earn interest at the liquid asset money market rate. The DROP interest rate for members who were eligible to participate in DROP on/after January 1, 2004 is 0.00%. TRSL will communicate with eligible members regarding the posting of DROP interest rates.

The approved valuation report is indicative of research that shows defined benefit plans (or pensions) are designed to withstand volatile economic markets while maintaining retirement benefits. The valuation report also highlights the sound fiduciary decisions the TRSL Board of Trustees has made to maintain the financial health of the retirement system.

Make sure to stay connected with LRTA. Like our Facebook page and check out our website, www.lrta.net. And, please encourage fellow retirees to join LRTA if they are not already a member. There’s strength in our numbers!