As approved by the Board of Directors in March, a
3.9 percent experience apportionment for the Pension Plan became effective July 1. The apportionment is the sixth in as many years.
For the five-year period 2013-2017, the apportionments' cumulative increase is
18.4 percent. Cumulative increases in the consumer price index for the same period amount to only 7.4 percent.
The Pension Plan's funded status as of December 31, 2017, was 131 percent.
An experience apportionment is a lifelong increase in pension benefits for retirees and eligible survivors and an increase in accrued pension credits for active and terminated vested members. The experience apportionment allows members to share in the favorable experience of the funds and provides some protection against inflation.
The Board of Pensions uses experience apportionment policy guidelines to tie apportionments to the
overall funded status of the plan. The guidelines seek to balance short- and long-term goals: ensure the long-term financial stability of the plan, protect members against inflation, and maintain generational equity.
Retirees and eligible survivors will see an increase beginning with their July pension checks.
Terminated vested members are being notified of the increase in their pension credits.
Active members will see an increase in their projected pension benefit on Benefits Connect.
Want to know more? Learn about the
experience apportionment process.