Proposed changes to administrative factors will take effect in October 2020

Posted 25-Oct-2019

The Office of the State Actuary has proposed changes to the administrative factors used by DRS to calculate benefit adjustments. If the recommended changes are adopted, they will take effect Oct. 1, 2020. In addition to calculating benefit adjustments, the factors are used to determine benefit amounts for survivors and for members who retire early, the costs of purchasing service credit or an annuity, and other changes.

Although the proposed factors will not take effect until Oct. 1, 2020, DRS is providing the factors now to help our customers make informed decisions regarding retirement.

The Office of the State Actuary proposes administrative factors based upon demographic experience studies and valuation reports. They also take the impacts of recent legislation into consideration.

Thirty-day public comment period to begin Nov. 6

Before the factors are officially adopted, a 30-day comment and review period will be held beginning Wednesday, Nov. 6, 2019, followed by a public hearing on Tuesday, Dec. 10, to allow comments on the proposed factors.

To see the new factors, visit the Administrative Factors webpage.

If you have questions about the factors, please contact DRS.

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