Actuarial Methods and Assumptions
To calculate the contribution rates necessar y to pre-fund a plan’s benefits, an actuary uses an actuarial cost method, an
asset valuation method, economic assumptions, and demographic assumptions. This section, together with the web pages
linked below, lists the actuarial methods and assumptions used for this valuation.
Actuarial Methods
Please see the Actuarial Methods web page for descriptions of the actuarial cost methods and asset valuation method
we use for this valuation.
Actuarial Assumptions
This section lists the assumptions that change regularly, along with new assumption and method changes since the last
actuaria l valuation report. Please see the Actua rial Assumptions web page for descriptions of all remaining assumptions.
Economic Assumptions
We adjust the general salary growth assumption for TRS each year to model
the salar y bonus payable to members who attain national board certification.
These bonuses are includable in compensation for pension purposes.
Demographic Assumptions
The Employee Contribution Rate
assumption helps us estimate the value
of accumulated employee contributions
with interest if a member elects a refund of
contributions instead of a deferred retirement
allowance upon terminat ion.
TRS General Salary
Increase by Year
Employee Contribution Rates for Savings Fund Accrual
Year TRS 1 TRS 2/3
2016 3.75% 3.75%
2017 3.75% 3.75%
2018 3.85% 3.85%
2019 3.84% 3.84%
2020 3.83% 3.83%
2021 3.83% 3.82%
2022 3.82% 3.82%
2023 3.81% 3.81%
2024 3.80% 3.80%
2025 3.79% 3.79%
2026 3.78% 3.78%
2027 3.77% 3.77%
2028 3.77% 3.77%
2029+ 3.75% 3.75%
Note: Includes inflation.
Employee Contribution Rates for Savings Fund Accrual
System/Plans Contribution Rate*
PERS 2 5.42%
TRS 2 6.42%
SERS 2 5.66%
PSERS 2 7.06%
LEOFF 2 8.75%
WSPRS 1/2 7.34%
*PERS 1 and TRS 1 employee rates are set in statute at 6%.
No LEOFF 1 rates are required as long as the plan remains fully funded.
Plan 3 members do not contribute to the defined benefit plan.
2016 Actuarial Valuation Report
IV. Appendices
47
