The Governance of State and Local Retirement Systems: A Deterministic Simulation of Actuarial Inputs on Pension Funding Ratios and Actuarially-Determined Contributions

by David S. T. Matkin and Gang Chen, The State University of New York at Albany

The purpose of this study is to: (1) develop software to simulate the actuarial liabilities and actuarially-determined contributions (ADC) of pension systems under different actuarial inputs, participant contributions, and asset levels; (2) produce a dataset of the funding ratios, liabilities and ADC combinations that result from all combinations of actuarial inputs under different conditions; and (3) analyze the data to better understand the influence of actuarial inputs on state and local government retirement policies. Our research questions are: (1) how do actuarial inputs affect the financial condition and budgetary cost of public pensions?; (2) how do actuarial inputs affect the policy decisions?; and (3) how do asset levels and participant characteristics interact with actuarial inputs?

Back to 2015 Sandell Grant Program Recipients

The CRR wants to hear from our website users like you. Would be you willing to take a short survey?

Yes, take me to it.       No, thanks.      Not now, but ask me later.