Friday, November 4, 2022
Categories:
Retirement
The NDPERS Board moved to reduce the actuarial rate of return assumption from 7% to 6.5% for members of the Defined Benefit and the Highway Patrol Retirement Plans effective for the July 1, 2022 valuation. The change comes after a recommendation from Gabriel, Roeder, Smith & Company, the actuarial firm that provides the annual valuation to NDPERS to determine the liabilities within each plan.
The reduction to 6.5% will impact the interest rate NDPERS pays on member retirement accounts, retirement and service purchase actuarial tables, and the interest accrual on service purchase payment plans starting on January 1, 2023. The Retiree Health Insurance Credit (RHIC) actuarial rate of return assumption was also reduced to 5.75% from 6.5%.