The MainePERS Board of Trustees has voted to increase employer contribution rates for the PLD Consolidated Plan based upon actuarial recommendations. This action strengthens the ongoing financial stability of the Plan.  The chart below shows the rates for Fiscal Year 2011 beginning July 1, 2010, as well as estimated rates for 2012 and 2013.

The System sets rates annually based upon an actuarial valuation report prepared by the System’s actuary to establish the value of the Consolidated Plan’s assets and liabilities as of June 30.  This review includes measurements of the Plan’s investment performance and establishes the Plan’s funding level, which is the ratio of the Plan’s assets to the Plan’s liabilities.

The significant market fluctuations during 2008-09 resulted in the Consolidated Plan falling below full funding for the first time in the history of the Plan, but to a still healthy funding ratio of 98%.  In adopting new employer rates, the Board chose an incremental approach to steadily increasing the rates over time instead of a larger immediate rate increase.  This complements local governments’ budget processes while maintaining plan funding strength.

The System’s actuary presented the findings for the FY2009 valuation to the PLD Advisory Committee at its recent meeting.  The Committee discussed how best to implement an increased employer rate and it was the sense of the Committee that employers would prefer an incremental approach to any necessary rate increases.  The Board values the Committee’s perspective on this important issue.

Employers will receive the Statement of Consolidated Plan Costs (green sheets) by early February.  If you have any questions regarding the rate adjustments, please contact Stephanie Fecteau at 512-3305 or by e-mail at stephanie.fecteau@mainepers.org.