The consulting actuary for the retirement and pension systems, other than the Mass .Transit
Administration Pension Plan, prepared valuations as of June 30, 1986, using the entry age actuarial cost
method. Retirement costs for 1987 on this basis aggregated approximately $390,891,000 for governmental
fund types and $42,610,000 for the higher education fund, including amortization of unfunded liabilities over
40 years and interest thereon. Such amortization is being calculated using the straight-line method which
began in fiscal year 1981.
The consulting actuary for the Mass Transit Administration Pension Plan prepared a valuation as of June
30, 1987, using the entry age normal cost method. Retirement costs for 1987 on this basis aggregated
approximately $5,200,000 for governmental fund types, including amortization of unfunded liabilities over 30
years.
Retirement expenditures applicable to governmental fund types for the year ended June 30, 1987,
aggregated approximately $439,157,000. The excess of retirement expenditures over retirement costs of
approximately $32,061,000, is included in the general long-term debt account group. Retirement expenditures
for the Mass Transit Administration Pension Plan on the pay-as-you-go basis aggregated approximately
$3,571,000 for the year ended June 30, 1987.
Selected data (amounts expressed in thousands) compiled in accordance with Financial Accounting
Standards Board Statement No. 35, with respect to each plan is as follows:
|
|
Actuarial Present Value
|
|
|
|
of Accumulated
|
Net Assets
|
|
State Contributions for
|
Plan Benefits as of
|
available for
|
|
the year ended June 30, 1987
|
June 30, 1986(a)
|
Plan Benefits(b)
|
Employees' Retirement System ......
|
. . . . $ 48,142
|
$2,694,065
|
$1,820,189
|
Teachers' Retirement System ........
|
. . . . 164,330
|
5,657,166
|
3,583,307
|
State Police Retirement System ......
|
. . . . 16,460
|
239,030
|
256,561
|
Employees' Pension System .........
|
. . . . 89,958
|
266,996
|
617,056
|
Teachers' Pension System ..........
|
. . . . 158,712
|
256,349
|
483,460
|
Judges' Pension System ............
|
. . . . 7,842
|
88,769
|
26,571
|
Mass Transit Administration
|
|
|
|
Pension Plan . ..................
|
. . . . 3,571
|
N/A
|
N/A
|
Total .......................
|
$489,015
|
$9,202,375
|
$6,787,144
|
(a) The following assumed rates of returns, as promulgated by the Pension Benefit Guaranty Corporation,
were used in determining the actuarial present value of accumulated plan benefits:
for immediate annuities - 73/4%
for deferred annuities - 7% for the first 7 years prior to benefit comencement, 53/4% for the next 8 years,
4% thereafter
(b) Net assets at actuarially determined market value as of June 30, 1986.
N/A-Not applicable
The actuarially computed value of the unfunded accrued liabilities (amounts expressed in thousands) for
each plan is as follows:
54
|
June 30, 1987
|
Employees' Retirement System ..................................................
|
$2,038,675
|
Teachers' Retirement System ...................................................
|
4,793,510
|
State Police Retirement System .................................................
|
134,509
|
Employees' Pension System ....................................................
|
(43,210)
|
Teachers' Pension System ......................................................
|
279,082
|
Judges' Pension System ........................................................
|
67,855
|
Mass Transit Administration Pension Plan ........................................
|
52,398
|
Total ......................................................................
|
$7,322,819
|
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