Missouri Pension Fund Annual Report

MISSOURI STATE EMPLOYEES
RETIREMENT SYSTEM
ACTUARIAL VALUATION REPORT

as of June 30, 2017
Contribution Rates for Fiscal Year Ending

June 30, 2019
TABLE OF CONTENTS
Sections Page
Actuarial Certification Letter
Section 1 Board Summary....................................................................................................................... 1
Section 2 Scope of the Report................................................................................................................ 11
Section 3 System Assets ......................................................................................................................... 12

Table 1 Asset Summary..................................................................................................................... 13
Table 2 Development of Actuarial Value of Assets .......................................................................... 14
Section 4 System Liabilities ................................................................................................................... 15

Table 3 Unfunded Actuarial Accrued Liability ................................................................................. 16
Table 4 Amortization Schedule for UAAL ....................................................................................... 17
Table 5 Actuarial Balance Sheet ....................................................................................................... 18
Table 6 Analysis of Gain/(Loss)........................................................................................................ 19
Table 7 Gain/(Loss) Analysis by Source ........................................................................................... 20
Table 8 Historical Experience Gains and Losses by Source ............................................................. 21
Section 5 Employer Contributions ....................................................................................................... 22

Table 9 UAAL Contribution Rate ..................................................................................................... 23
Table 10 Computed Employer Contribution Rate ............................................................................. 24
Table 11 Comparison of Valuation Results Under Alternate Assumptions ...................................... 25
Section 6 Projections .............................................................................................................................. 26

Table 12 30-Year Projection of Actuarial Valuation Results ............................................................ 27
Table 13 30-Year Projection of Net Cash Flows............................................................................... 28
Section 7 Other Information ................................................................................................................. 29

Table 14 Schedule of Funding Progress ............................................................................................ 30
Table 15 Historical Employer Contributions..................................................................................... 31
Table 16 Historical Member Statistics .............................................................................................. 32
Appendix A Membership Data ................................................................................................................ 33
Appendix B Demographic Experience .................................................................................................... 45
Appendix C Summary of Plan Provisions ............................................................................................... 52
Appendix D Summary of Actuarial Assumptions ................................................................................... 65
Appendix E Glossary of Terms ................................................................................................................ 72
June 30, 2017 Actuarial Valuation Missouri State Employees Retirement Plan
Cavanaugh Macdonald
C O N S U L T I N G, L L C
The experience and dedication you deserve
September 8, 2017
Board of Trustees
Missouri State Employees Retirement System
907 Wildewood Drive
Jefferson City, MO 65102
Dear Members of the Board:
At your request, we performed an actuarial valuation of the Missouri State Employees Retirement System
(MOSERS) as of June 30, 2017 for the purpose of determining the employer required contribution rate for
the plan year ending June 30, 2019. This report provides valuation results for the Missouri State
Employees Plan (MSEPs). The major findings of the valuation are contained in this report, which reflects
the benefit provisions in place on June 30, 2017.
There were changes to the actuarial assumptions and plan provisions since the prior valuation. At their
meeting on June 22, 2017, the Board reaffirmed the change in the investment return assumption from 7.65%
to 7.50% for the June 30, 2017 actuarial valuation. In addition, Senate Bill 62 (SB 62), which contained
changes to the benefit structure for MSEP 2011, was passed by the 2017 Legislature. The provisions of the
bill decreased vesting from ten to five years of service, but also included provisions that essentially offset
the cost of the vesting change. As a result, SB 62 had no impact on the employer contribution rate and
created a decrease to the UAAL of $1.6 million.
This is the first actuarial valuation report prepared by Cavanaugh Macdonald Consulting, LLC (CMC). As
part of our transition work, we replicated the June 30, 2016 actuarial valuation. Results were well within
acceptable limits, but as is typical in a takeover situation, there were some differences in the key valuation
results. Based on our experience, these differences are neither unusual nor significant. In our replication,
we matched the actuarial liability within 0.6% and the normal cost rate within 4.2%.
In preparing our report, we relied, without audit, on information (some oral and some in writing) supplied
by the Systems staff. This information includes, but is not limited to, statutory provisions, member data
and financial information. We found this information to be reasonably consistent and comparable with the
information received in the prior year. The valuation results depend on the integrity of this information. If
any of this information is inaccurate or incomplete, our results may be different and our calculations may
need to be revised.
3906 Raynor Pkwy, Suite 106, Bellevue, NE 68123

Phone (402) 905-4461 Fax (402) 905-4464
www.CavMacConsulting.com
Offices in Englewood, CO Off
Kennesaw, GA Bellevue, NE
Board of Trustees
September 8, 2017
Page 2
We further certify that all costs, liabilities, rates of interest and other factors for MSEPs have been
determined on the basis of actuarial assumptions and methods which are individually reasonable (taking
into account the experience of each Plan and reasonable expectations); and which, in combination, offer
the best estimate of anticipated experience affecting MSEPs. Nevertheless, the emerging costs will vary
from those presented in this report to the extent actual experience differs from that projected by the actuarial
assumptions. The MOSERS Board has the final decision regarding the appropriateness of the assumptions
and adopted them as indicated in Appendix C.
Future actuarial measurements may differ significantly from the current measurements presented in this
report due to such factors as the following: plan experience differing from that anticipated by the economic
or demographic assumptions; changes in economic or demographic assumptions; increases or decreases
expected as part of the natural operation of the methodology used for these measurements (such as the end
of an amortization period or additional cost or contribution requirements based on the plan's funded status);
and changes in plan provisions or applicable law. Due to the limited scope of our assignment, we did not
perform an analysis of the potential range of future measurements.
The actuarial computations presented in this report are for purposes of determining the funding amounts
for MSEPs as set out in the Missouri state statutes. The calculations in the enclosed report have been made
on a basis consistent with our understanding of MOSERS funding requirements and goals. Determinations
for purposes other than meeting these requirements may be significantly different from the results contained
in this report. Accordingly, additional determinations may be needed for other purposes. For example,
actuarial computations for purposes of fulfilling financial accounting requirements for the System under
Governmental Accounting Standard No. 67 will be presented in a completely separate report.
The consultants who worked on this assignment are pension actuaries. Cavanaugh Macdonalds advice is
not intended to be a substitute for qualified legal or accounting counsel.
On the basis of the foregoing, we hereby certify that, to the best of our knowledge and belief, this report is
complete and accurate and has been prepared in accordance with generally recognized and accepted
actuarial principles and practices. We are members of the American Academy of Actuaries and meet the
Qualification Standards to render the actuarial opinion contained herein. We are available to answer any
questions on the material contained in the report or to provide explanations or further details as may be
appropriate.
We respectfully submit the following report and look forward to discussing it with you.
Sincerely,
Patrice A. Beckham, FSA, EA, FCA, MAAA Joseph A. Nichols, ASA, EA, MSPA, MAAA, FCA
Principal and Consulting Actuary Consulting Actuary
SECTION 1 BOARD SUMMARY
This report presents the results of the June 30, 2017 actuarial valuation of the Missouri State Employees
Plan (MSEPs). The primary purposes of performing this actuarial valuation are to:
Determine the employer contribution rate defined in the Missouri state statutes and dictated by the
Boards funding policy for the fiscal year ending June 30, 2019;
Disclose asset and liability measurements as well as the current funded status of MSEPs on the
valuation date;
Compare the actual and expected experience of MSEPs during the plan year ended June 30, 2017;
and
Analyze and report on trends in MSEPs contributions, assets and liabilities over the past several
years.
Key Results
The actuarial valuation results provide a snapshot view of the Systems financial condition on June 30,
2017. The MSEPs unfunded actuarial accrued liability (UAAL) increased from $3.873 billion last year to
$4.280 billion this year and the funded ratio decreased from 69.6% to 67.5%. In addition, the employer
actuarial contribution rate increased from 19.45% of pay last year to 20.21% of pay in this years valuation,
an increase of 0.76% of pay.
The valuation results reflect net unfavorable experience for the past plan year as demonstrated by an UAAL
that was higher than expected (actual UAAL of $4.280 billion compared to an expected UAAL of $4.069
billion). The unfavorable experience was due to a combination of an experience loss on assets and an
experience gain on MSEPs liabilities.
A summary of the key results from the June 30, 2017 actuarial valuation is shown in the following table.
Further detail on the changes and experience losses affecting valuation results can be found in the following
sections of this Board Summary.
June 30, 2017 June 30, 2016
Unfunded Actuarial Accrued Liability ($M) $4,280 $3,873

Funded Ratio (Actuarial Assets) 67.46% 69.60%
Normal Cost Rate 8.39% 8.60%
UAAL Amortization Rate 13.16% 12.26%
Total Actuarial Required Contribution 21.55% 20.86%
Member Contribution Rate (1.34%) (1.41%)
Employer Contribution Rate 20.21% 19.45%
1
Replication Results
results. Based on our experience, these differences are neither unusual nor significant. A summary of the
key actuarial measurements in the replication results is shown in the following table:
June 30, 2016 Valuation Results

Dollars in Thousands CMC GRS CMC/GRS
Present Value of Future Benefits $13,633,859,529 $13,754,353,387 99.1%
Actuarial Accrued Liability 12,668,934,391 12,751,162,753 99.4%
Normal Cost Rate 8.24% 8.60% 95.8%
Assumption Changes
There was one change to the actuarial assumptions from last years valuation. At their June 17, 2017
meeting, the Board reaffirmed the scheduled decrease in the investment return assumption from 7.65% to
7.50%, per the Boards policy. The remaining assumptions and methods used in this years valuation are
unchanged from last year. The impact of the change in the investment return assumption (before the impact
of SB 62) is shown below.
7.65% 7.50% Difference

Actuarial Accrued Liability $12,951,415,168 $13,153,969,954 $202,554,786
Actuarial Value of Assets 8,872,381,848 8,872,381,848 -
Unfunded Actuarial Accrued Liability $4,079,033,320 $4,281,588,106 $202,554,786
Normal Cost 8.11% 8.38% 0.27%

UAAL Amortization 12.71% 13.17% 0.46%
Actuarial Contribution 20.82% 21.55% 0.73%
Had the investment return assumption remained at 7.65% for this valuation, the actuarial contribution rate
would have been 0.04% less than the rate determined in last years valuation (20.86%).
Benefit Provision Changes
Senate Bill 62, passed in the 2017 session and signed into law on July 14, made the following changes to
the MSEP 2011 benefit provisions:
MSEP 2011 active members are now eligible for:

o Normal Retirement at age 67 with 5 years of service (previously age 67 with 10 years of
service)
o Early Retirement at age 62 with 5 years of service (previously age 62 with 10 years of
service)
o Vested after 5 years of service (previously 10 years of service)
Cost-of-living adjustments for MSEP 2011 vested former members now commence on the second
anniversary of the annuity starting date (previously commenced on first anniversary).
2
Service credit for unused sick leave is only applied for MSEP 2011 members who terminate service
at their early or normal retirement date.
Survivor benefits for MSEP 2011 terminated vested members start at the date the member would
have been eligible for normal retirement, not at date of death.
The change in MSEP 2011 plan provisions created a very small net decrease in liabilities and no impact on
the actuarial contribution rate. Results using the current and previous benefit provisions are shown below:
Prior Provisions With SB 62* Difference

Actuarial Accrued Liability $13,153,969,954 $13,152,273,895 ($1,696,059)
Actuarial Value of Assets 8,872,381,848 8,872,381,848 -
Unfunded Actuarial Accrued Liability $4,281,588,106 $4,279,892,047 ($1,696,059)
Normal Cost 8.38% 8.39% 0.01%

UAAL Amortization 13.17% 13.16% (0.01%)
Actuarial Contribution 21.55% 21.55% 0.00%
*The change in liability due to the vested terminated buyout program will be reflected in the June 30, 2018 valuation.
Experience for the Last Plan Year
Numerous factors contributed to the change in the MSEPs assets, liabilities, and actuarial required
contribution rate between June 30, 2016 and June 30, 2017. The components are examined in the following
discussion.
Assets
As of June 30, 2017, MSEPs had net assets of $7.945 billion, when measured on a market value basis, a
decrease of $164 million from the prior year value of $8.109 billion.
The market value of assets is not used directly in the calculation of the unfunded actuarial accrued liability
and the employer actuarial contribution rate. An asset valuation method, which smoothes the effect of
market fluctuations, is applied to determine the value of assets used in the valuation. The resulting amount
is called the actuarial value of assets. In this years valuation, the actuarial value of assets for MSEPs is
$8.872 billion, a decreases of $6 million from the prior year. The components of change in the asset values
are shown in the following table:
1 Market Value ($M) Actuarial Value ($M)
Net Assets, June 30, 2016 $ 8,109.16 $ 8,878.06

- Employer and Member Contributions + 366.33 + 366.33
- Benefit Payments - 793.96 - 793.96
- Net Investment Income + 272.59 + 430.71
- Administrative Expenses - 8.76 - 8.76
Net Assets, June 30, 2017 $ 7,945.36 $ 8,872.38
Estimated Net Rate of Return 3.45% 4.97%
3
The estimated rate of return on the actuarial value of assets was 4.97%, which is lower than the investment
return assumption in place for FY 2017 of 7.65%. As a result, there was an experience loss on assets of
$232 million. The investment return on the market value of assets for FY 2017 of 3.45% increased the
deferred investment loss from $769 million in last years valuation to $927 million in the current valuation.
Please see Section 3 of this report for more detailed information on the market and actuarial value of assets.
Rate of Return on Assets

30%
20%
The rate of return of the actuarial value
10%
of assets has been less volatile than the
0% market value return, illustrating the
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
benefit of using an asset smoothing
(10%)
method.
(20%)
(30%)
Plan Year Ending
Market Value Actuarial Value Expected
$10
$9
$8
$7
As is expected when using an asset
$6
$ Billions
smoothing method, the actuarial value of

$5
assets has been both higher and lower
$4
$3
than the market value of assets over a
$2
longer time period.
$1
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Valuation Date (June 30)
Mar ket Value Actuarial Value
Liabilities
The actuarial accrued liability is that portion of the present value of future benefits that will not be paid by
future normal costs. The difference between this liability and the actuarial value of assets as of the valuation
date is called the unfunded actuarial accrued liability (UAAL). The dollar amount of unfunded actuarial
accrued liability is reduced if the contributions to the System exceed the normal cost for the year plus
interest on the prior years UAAL.
4
The unfunded actuarial accrued liability is shown as of June 30, 2017 in the following table:
Actuarial Market
Value of Assets Value of Assets
Actuarial Accrued Liability $13,152,273,895 $13,152,273,895
Value of Assets 8,872,381,848 7,945,358,298
Unfunded Actuarial Accrued Liability $4,279,892,047 $5,206,915,597
Funded Ratio 67.46% 60.41%
See Section 4 of the report for the detailed development of the unfunded actuarial accrued liability.
The net change in the UAAL from June 30, 2016 to June 30, 2017 was an increase of $407 million. The
components of this net change are shown in the following table:
($ Millions)
Unfunded Actuarial Accrued Liability, June 30, 2016 $3,873.0
- Expected increase from amortization method 97.7

- Actual vs. Expected Contributions (12.9)
- Investment experience 232.1
- Liability experience (21.6)
- Change from revised assumptions/methods 202.6
- Change from benefit changes (1.7)
- Transition/actuarial software (88.5)
- Other experience (0.8)
Unfunded Actuarial Accrued Liability, June 30, 2017 $4,279.9
As shown above, various components impacted the dollar amount of the UAAL. Actuarial gains (losses),
which result from actual experience that is more (less) favorable than anticipated based on the actuarial
assumptions, are reflected in the UAAL and are measured as the difference between the expected UAAL
and the actual UAAL, taking into account any changes due to actuarial assumptions and methods, or benefit
provision changes. Overall, MSEPs experienced a net actuarial loss of $210 million. The actuarial loss
may be explained by considering the separate experience of assets and liabilities. As noted earlier, there
was a $22 million experience gain on the System liabilities and an experience loss of $232 million on the
actuarial value of assets. The liability gain was the net result of various components of actuarial gains and
losses, the largest of which was a gain from cost-of-living adjustments that were lower than expected. A
breakdown of the components of experience gains and losses can be found in Table 7 of this report.
As the following graph of historical actuarial assets and accrued liabilities shows, the Systems liabilities
have been growing at a faster pace than the Systems assets since 2001. The actuarial required contribution
has been made each year, but unfavorable asset and liability experience, along with significant changes in
the actuarial assumptions, has caused MSEPs to go from almost 100% funded in 2001 to the current 67%
level.
5
An evaluation of the UAAL on a pure dollar basis may not provide a complete analysis since only the
difference between the assets and liabilities (which are both very large numbers) is reflected. Another way
to evaluate the UAAL and the progress made in its funding is to track the funded ratio, the ratio of the
actuarial value of assets to the actuarial accrued liability. The funded status information, using the actuarial
value of assets, is shown below (in millions).
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017

Funded Ratio 73.2% 72.7% 75.1% 75.0% 69.6% 67.5%
UAAL ($M) $2,897 $3,039 $2,857 $2,936 $3,873 $4,280
Note that the funded ratio does not indicate whether or not the System assets are sufficient to settle benefits
earned to date. The funded ratio, by itself, also may not be indicative of future funding requirements. If
the funded ratios were shown using the market value of assets, the results would differ.
The funded ratio over a longer period is shown in the following graph:
6
Actuarial Required Contribution Rate
The System is funded by contributions from employers (actuarially determined) and from employees hired
after December 31, 2010 (4.00% of pay). Under the Entry Age Normal cost method, the actuarial
contribution rate consists of two components:
A normal cost for the portion of projected liabilities allocated by the actuarial cost method to
service of members during the year following the valuation date.
An unfunded actuarial accrued liability contribution for the excess of the portion of projected
liabilities allocated to service to date over the actuarial value of assets.
The UAAL contribution rate is determined by calculating the amortization payment, as a level percentage
of payroll, over a closed 30-year period that began in 2014 (27 years remain as of June 30, 2017). This
methodology results in payments that are lower amounts than level dollar payments in the initial years of
the amortization period, but increase each year in the future with the assumed payroll growth assumption
of 3%. Because the UAAL contribution rate is determined as a level percent of payroll, the dollar amount
of the UAAL contribution is scheduled to increase 3% each year in the future even if all actuarial
assumptions are met. In addition, the UAAL is expected to increase for nearly ten years before starting to
decline, even if all actuarial assumptions are met.
See Section 5 of the report for the detailed development of the employer contribution rate, which is
summarized in the following table:
June 30 Valuation*
Contribution Rates 2017 2016
1. Normal Cost Rate 8.39% 8.60%
2. UAAL Contribution Rate 13.16% 12.26%
3. Total Actuarial Required Contribution Rate 21.55% 20.86%
4. Member Contribution Rate (1.34%) (1.41%)
5. Employer Contribution Rate 20.21% 19.45%
The total actuarial contribution rate in the June 30, 2017 valuation is 21.55%. The member contribution
rate (as a percentage of total payroll) is anticipated to be 1.34%, resulting in an employer contribution for
the fiscal year ending June 30, 2019 of 20.21%. This amount is above the minimum employer contribution
of 16.97%.
7
The following table shows the reconciliation of the Computed Employer Contribution Rate from June 30,
2016 to June 30, 2017:
% of Payroll
6/30/2016 Computed Employer Contribution Rate 19.45%
Asset (Gain)/Loss 0.76%
Liability (Gain)/Loss (0.07%)
Assumption Changes 0.72%
Projected Payroll Lower than Expected 0.05%
Additional UAAL Contribution* (0.04%)
Normal Cost (0.13%)
Change in Effective Employee Contribution Rate 0.07%
Plan Provision Changes 0.00%
Transition/Actuarial Software (0.65%)
Other Experience 0.05%
* Impact, if any, of the Policy Minimum Employer Contribution Rate in excess of the Computed Employer Contribution Rate.
As the following table of computed employer contribution rates and actual contribution amounts shows,
the employer contribution has been at 100% of the full actuarial contribution in all years:
Actuarially Determined Actual Percent

Fiscal Year Ending Employer Contribution Dollar Amount Contributed
June 30, 2005 $195.6 $195.6 100.0%

June 30, 2006 227.2 227.2 100.0%
June 30, 2007 239.5 239.5 100.0%
June 30, 2008 249.8 249.8 100.0%
June 30, 2009 252.1 252.1 100.0%
June 30, 2010 251.2 251.2 100.0%

June 30, 2011 263.4 263.4 100.0%
June 30, 2012 263.4 263.4 100.0%
June 30, 2013 290.3 290.3 100.0%
June 30, 2014 326.4 326.4 100.0%
June 30, 2015 329.8 329.8 100.0%

June 30, 2016 330.0 330.0 100.0%
June 30, 2017 322.8 335.2 103.8%
8
The historical computed employer contribution rates, determined on each valuation date, are shown
graphically below:
Computed Employer Contribution Rates

24%
20.2%
19.5%
20%
17.0% 17.0%
16.3%
1 6 .0 %
16% 14.0%
14.5%
13.8%
12.6% 12.8% 12.8% 1 2 .5 % 12.8%
11.6% 1 1 .6 %
12% 10.6%
9 .4 %
8 .8 %
8%
4%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
The computed employer contribution rate, which is determined based on the snapshot of the System taken
on the valuation date, is anticipated to increase over the short term as the deferred investment experience is
recognized through the asset smoothing method. Anticipated increases in the employee contributions, as a
percentage of total payroll, will provide some offset to the increased UAAL payment. Future experience
(both investment and demographic) will also have an impact on the ultimate level of MSEPs contributions.
The next page contains a comprehensive summary of valuation results for the current and prior year.
Detailed exhibits deriving the results are in the following sections.
9
SUMMARY OF PRINCIPAL RESULTS

($ in millions)
Valuation Date June 30, 2017 June 30, 2016

Contribution for Fiscal Year Ending June 30, 2019 June 30, 2018 % Change
Computed Employer Contribution
Annual Amount (Estimated) $423 $397 6.5%
Percentage of Covered Payroll 20.21% 19.45% 3.9%
Benefit Payments $794 $757 4.9%
Membership
Number of
- Active Members 48,910 49,464 (1.1%)
- Retirees and Beneficiaries 46,560 44,828 3.9%
- Terminated Vested Members 19,578 19,512 0.3%
- Leave-of-Absence Members 178 132 34.8%
- Long Term Disability Members 849 928 (8.5%)
- Terminated Nonvested Members 3,899 3,233 20.6%
- Total 116,075 118,097 (1.7%)
- Reported Payroll $1,942 $1,922 1.0%
Assets
Market Value (MVA) $7,945 $8,109 (2.0%)
Actuarial Value (AVA) $8,872 $8,878 (0.1%)
Ratio - Actuarial Value to Market Value 111.67% 109.48%
Return on Market Value 3.45% 0.02%
Return on Actuarial Value 4.97% 5.76%
Actuarial Information
Actuarial Accrued Liability (AAL) $13,152 $12,751 3.1%
Unfunded Actuarial Accrued Liability (UAAL) $4,280 $3,873 10.5%
Funded Ratio 67.5% 69.6% (3.1%)
Amortization Period 27 years 28 years
Ratio of AVA to Payroll 4.6 4.6
Ratio of AAL to Payroll 6.8 6.6
Normal Cost Rate 8.39% 8.60% (2.4%)
UAAL Contribution Rate 13.16% 12.26% 7.3%
Total Contribution Rate 21.55% 20.86% 3.3%
Member Contribution Rate (1.34%) (1.41%) (5.0%)
Employer Contribution Rate 20.21% 19.45% 3.9%
10
SECTION 2 SCOPE OF THE REPORT
This report presents the actuarial valuation results of the Missouri State Employees Retirement System as
of June 30, 2017. This valuation was prepared at the request of the MOSERS Board.
Please pay particular attention to our actuarial certification letter, where the guidelines employed in the
preparation of this report are outlined. We also comment on the sources and reliability of both the data and
the actuarial assumptions upon which our findings are based. Those comments are the basis for our
certification that this report is complete and accurate to the best of our knowledge and belief.
A summary of the findings which result from this valuation is presented in the previous section. Section 3
describes the assets and investment experience of the System. Sections 4 and 5 describe how the obligations
of the System are to be met under the Systems funding policy. Section 6 contains projections of future
valuation results, assuming all actuarial assumptions are met. Section 7 includes some historical funding
information that was required by the Governmental Accounting Standards Board (GASB) in the past.
11
SECTION 3 SYSTEM ASSETS
In many respects, an actuarial valuation can be thought of as an inventory process. The inventory is taken
as of the actuarial valuation date, which for this valuation is June 30, 2017. On that date, the assets available
for the payment of benefits are appraised. The assets are compared with the liabilities of the System, which
are generally in excess of assets. The actuarial process then leads to a method of determining the
contributions needed by members and the employer in the future to balance the System assets and liabilities.
Market Value of Assets
The current market value represents the "snapshot" or "cash-out" value of System assets as of the valuation
date. In addition, the market value of assets provides a basis for measuring investment performance from
time to time. Table 1 shows a summary of changes to both the market and the actuarial value assets for the
year beginning June 30, 2016 and ending June 30, 2017.
Actuarial Value of Assets
Neither the market value of assets, representing a "cash-out" value of System assets, nor the book values of
assets, representing the cost of investments, may be the best measure of the System's ongoing ability to
meet its obligations.
To arrive at a suitable value of assets for the actuarial valuation, a technique for determining the actuarial
value of assets is used which dampens swings in the market value while still indirectly recognizing market
values.
Table 2 shows the development of the actuarial value of assets (AVA) as of the valuation date.
12
TABLE 1
ASSET SUMMARY
Market Value Actuarial Value
1. Assets at June 30, 2016 8,109,161,214 8,878,057,191
2. Contributions
State Contributions 335,217,422 335,217,422
Employee Contributions 25,439,343 25,439,343
Member Purchases of Service Credit 1,691,046 1,691,046
Service Transfer Contributions 3,977,803 3,977,803
Total 366,325,614 366,325,614
3. Investment Income, Net of Investment Expenses 272,595,668 430,723,241
4. Benefit Payments and Transfers Out

Monthly Benefit Payments 700,281,256 700,281,256
BackDROP and Lump Sum Payments 87,019,072 87,019,072
Service Transfer Payments 1,843,792 1,843,792
Contribution Refunds 4,820,737 4,820,737
Total 793,964,857 793,964,857
5. Administrative and Misc. Expenses 8,759,341 8,759,341
6. Assets at June 30, 2017 7,945,358,298 8,872,381,848

(1) + (2) + (3) - (4) - (5)
7. Rate of Return, Net of Investment Expenses* 3.45% 4.97%
* Based on the approximation formula: I / [.5 x (A+B-I)], where

I = Investment Increment
A = Beginning of year asset value
B = End of year asset value
13
TABLE 2
DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS
Valuation Date: June 30 2014 2015 2016 2017
A. Actuarial Value at Beginning of Year $ 8,096,436,929 $ 8,637,758,955 $ 8,792,485,658 $ 8,878,057,191
B. Market Value at End of Year 9,136,781,826 8,516,654,912 8,109,161,214 7,945,358,298
C. Market Value at Beginning of Year 7,993,837,570 9,136,781,826 8,516,654,912 8,109,161,214
D. Cash Flow
D1. Contributions 345,557,293 353,287,107 356,565,911 366,325,614
D2. Benefit payments (680,436,106) (728,265,800) (757,310,503) (793,964,857)
D3. Administrative expenses (7,336,922) (8,077,692) (8,489,375) (8,759,341)
D4. Net (342,215,735) (383,056,385) (409,233,967) (436,398,584)
E. Investment Income, Net of Investment Expenses

E1. Market total (B - C - D4) 1,485,159,991 (237,070,529) 1,740,269 272,595,668
E2. Assumed rate 8.00% 8.00% 8.00% 7.65%
E3. Amount for immediate recognition (A + .5 * D4) * E2 634,026,325 675,698,461 687,029,494 662,479,129
E4. Amount for phased-in recognition (E1 - E3) 851,133,666 (912,768,990) (685,289,225) (389,883,461)
F. Unrecognized Gains/(Losses) From Prior Years (102,599,359) 499,022,871 (275,830,746) (768,895,977)
G. Phased-in Recognition of Investment Income (E4 + F) / 5* 249,511,436 (137,915,373) (192,223,994) (231,755,888)
H. End of Year Adjustment 0 0 0 0
I. Actuarial Value at End of Year

I1. Preliminary value (A + D4 + E3 + G + H) 8,637,758,955 8,792,485,658 8,878,057,191 8,872,381,848
I2. Upper corridor limit: 125% x B 11,420,977,283 10,645,818,640 10,136,451,518 9,931,697,873
I3. Lower corridor limit: 80% x B 7,309,425,461 6,813,323,930 6,487,328,971 6,356,286,638
I4. Corridor adjustment 0 0 0 0
I5. Funding value end of year: I1 + I4 8,637,758,955 8,792,485,658 8,878,057,191 8,872,381,848
J. Difference Between Market and Actuarial Values (B - I5) 499,022,871 (275,830,746) (768,895,977) (927,023,550)
K. Actuarial Value Rate of Return 11.15% 6.37% 5.76% 4.97%
L. Market Value Rate of Return 18.99% (2.65%) 0.02% 3.45%
M. Actuarial Value as a % of Market Value: I5 / B 95% 103% 109% 112%
N. Net Cash Flow as a % of Actuarial Value D4 / I5 (4.0%) (4.4%) (4.6%) (4.9%)
* Phased-in over 3 years prior to 2016.
The actuarial value of assets recognizes assumed investment income (line E3) fully each year. Differences
between actual and assumed investment income (line E4) are phased-in over an open 5-year period. During
periods when investment performance exceeds the assumed rate, the actuarial value of assets will tend to
be less than market value. During periods when investment performance is less than assumed, the actuarial
value will tend to be greater than market value.
14
SECTION 4 SYSTEM LIABILITIES
In the previous section, an analysis of Systems current assets was given as of June 30, 2017. In this section,
the discussion will focus on the commitments (future benefit payments) of the System, which are referred
to as its liabilities.
Table 3 contains an analysis of the actuarial present value of all future benefits (PVFB) for contributing
members, inactive members, retirees and their beneficiaries. The liabilities summarized in Table 3 include
the actuarial present value of all future benefits expected to be paid with respect to each member. For an
active member, this value includes measures of both benefits already earned and future benefits expected
to be earned. For all members, active and retired, the value extends over benefits earnable and payable for
the rest of their lives and, if an optional benefit is chosen, for the lives of their surviving spouses.
The actuarial assumptions used to determine liabilities are based on the results of the latest experience
study. These assumptions are outlined in Appendix C.
Table 4 illustrates the amortization schedule of the UAAL, given the Boards funding policy that amortizes
the UAAL over a closed 30-year period, beginning with the June 30, 2014 actuarial valuation, with
payments calculated as a level percentage of payroll.
All liabilities reflect the benefit provisions in place as of June 30, 2017, as amended by any legislation in
the 2017 Legislative Session.
Actuarial Accrued Liability
A fundamental principle in financing the liabilities of a retirement program is that the cost of its benefits
should be related to the period in which benefits are earned, rather than to the period of benefit distribution.
An actuarial cost method is a mathematical technique that allocates the present value of future benefits into
annual costs. In order to do this allocation, it is necessary for the funding method to "breakdown" the present
value of future benefits into two components:
(1) that which is attributable to the past and
(2) that which is attributable to the future.
Actuarial terminology calls the part attributable to the past the "past service liability" or the "actuarial
accrued liability." The portion allocated to the future is known as the present value of future normal costs,
with the specific piece of it allocated to the current year being called the "normal cost." Table 5 contains
the actuarial balance sheet for the System. The Entry Age Normal actuarial cost method is used to develop
the actuarial accrued liability. Tables 6 and 7 show the gain/(loss) analysis in total and by source for the
System. Table 8 shows historical data for gain/(loss) experience by source.
15
TABLE 3
UNFUNDED ACTUARIAL ACCRUED LIABILITY
As of June 30, 2017
(1) (2) (3) = (1) - (2)

Present Value Actuarial
Actuarial of Future Normal Accrued
Present Value Cost Contributions Liabilities
Active Members
Service retirement benefits based on
service rendered before and likely
to be rendered after valuation date $5,333,879,237 $741,465,417 $4,592,413,820
Disability benefits likely to be paid to
present active members who become
totally and permanently disabled 155,214,308 98,421,685 56,792,623
Survivor benefits likely to be paid to
widows and children of present active
members who die before retiring 62,950,941 16,883,733 46,067,208
Separation benefits likely to be paid to
present active members 222,057,440 141,299,477 80,757,963
Active Member Totals $5,774,101,926 $998,070,312 $4,776,031,614

Members on Leave of Absence & LTD
Service retirement benefits based
on service rendered before the
valuation date 107,083,816
Terminated Vested Members
Retired Lives 7,559,623,100
Pending Refunds 6,877,330
Total Actuarial Accrued Liability $13,152,273,895

Actuarial Value of Assets 8,872,381,848
Unfunded Actuarial Accrued Liability $4,279,892,047

Funded Ratio 67.5%
16
TABLE 4
AMORTIZATION SCHEDULE FOR UAAL
(Based on the current 7.5% investment return assumption)
($ in millions)
Unfunded Annual Contributions

Fiscal Projected Actuarial UAAL
Year Active Accrued Adjusted for Amortization UAAL BOY
Ending Member Liability Wage Inflation Years Dollars % of as % of Funded
June 30 Payroll (BOY) (BOY) Remaining ($M) Payroll Payroll Ratio*
2018 $2,031 $4,280 $4,280 28 $249 12.26 % 210.74 % 67.5 %

2019 2,092 4,343 4,216 27 275 13.16 207.61 66.2
2020 2,155 4,383 4,131 26 284 13.16 203.43 65.2
2021 2,219 4,417 4,042 25 292 13.16 199.03 64.4
2022 2,286 4,446 3,950 24 301 13.16 194.52 63.8
2023 2,354 4,469 3,855 23 310 13.16 189.81 63.4
2024 2,425 4,483 3,754 22 319 13.16 184.86 63.1
2025 2,498 4,488 3,649 21 329 13.16 179.69 62.9
2026 2,573 4,484 3,540 20 339 13.16 174.29 62.8
2027 2,650 4,469 3,425 19 349 13.16 168.66 62.8
2028 2,729 4,443 3,306 18 359 13.16 162.78 62.9
2029 2,811 4,404 3,181 17 370 13.16 156.65 63.1
2030 2,896 4,350 3,051 16 381 13.16 150.24 63.4
2031 2,982 4,281 2,915 15 392 13.16 143.56 63.9
2032 3,072 4,196 2,774 14 404 13.16 136.58 64.4
2033 3,164 4,091 2,626 13 416 13.16 129.30 65.1
2034 3,259 3,966 2,472 12 429 13.16 121.71 66.0
2035 3,357 3,819 2,311 11 442 13.16 113.78 67.1
2036 3,457 3,648 2,143 10 455 13.16 105.50 68.4
2037 3,561 3,449 1,967 9 469 13.16 96.86 70.0
2038 3,668 3,222 1,784 8 483 13.16 87.85 71.8
2039 3,778 2,963 1,593 7 497 13.16 78.44 74.0
2040 3,891 2,670 1,394 6 512 13.16 68.62 76.4
2041 4,008 2,339 1,185 5 527 13.16 58.37 79.3
2042 4,128 1,968 968 4 543 13.16 47.67 82.6
2043 4,252 1,552 741 3 560 13.16 36.51 86.3
2044 4,380 1,089 505 2 576 13.16 24.85 90.5
2045 4,511 573 258 1 594 13.16 12.69 95.1
2046 4,646 0 0 0 611 13.16 0.00 100.0
17
TABLE 5
ACTUARIAL BALANCE SHEET
ASSETS
Actuarial Value of Assets $ 8,872,381,848
Unfunded Actuarial Accrued Liability 4,279,892,047
Present Value of Future Normal Costs 998,070,312
Total Assets $ 14,150,344,207
LIABILITIES
Present Value of Future Benefits

Active members
Retirement $ 5,333,879,237
Withdrawal 222,057,440
Death 62,950,941
Disability 155,214,308
Total $ 5,774,101,926
Inactive members
Currently receiving benefits 7,559,623,100
Not currently receiving benefits 816,619,181
Total $ 8,376,242,281
Total Liabilities $ 14,150,344,207
18
TABLE 6
ANALYSIS OF GAIN/(LOSS)
(1) (2) (3) = (1) - (2)

Actuarial
Accrued Valuation
Liabilities Assets UAAL
(1) Value at start of year $ 12,751,162,753 $ 8,878,057,191 $ 3,873,105,562
(2) Total normal cost from last valuation 141,910,018 0 141,910,018
(3) Actual contributions (Employer and Member) 0 360,656,765 (360,656,765)
(4) Benefit payments (793,964,857) (793,964,857) 0
(5) Administrative expenses 0 (8,759,341) 8,759,341
(6) Service Purchases/Transfers 5,668,849 5,668,849 0
(7) Interest on (1), (2), (3), (4), (5) and (6) at 7.65% 956,723,352 662,786,712 293,936,640
(8) Expected value before changes $ 13,061,500,115 $ 9,104,445,319 $ 3,957,054,796
(9) Change from benefit changes (SB 62) (1,696,059) 0 (1,696,059)
(10) Change in investment return assumption 202,554,786 0 202,554,786
(11) Transition/actuarial software (88,518,832) 0 (88,518,832)
(12) Expected value after changes: (8) + (9) + (10) + (11) $ 13,173,840,010 $ 9,104,445,319 $ 4,069,394,691
(13) Actual value at end of year 13,152,273,895 8,872,381,848 4,279,892,047
(14) Gain / (Loss) $ 21,566,115 $ (232,063,471) $ (210,497,356)
(15) Gain / (Loss) as percent of expected actuarial accrued

liabilities: $13,061,500,115 0.2% (1.8%) (1.6%)
19
TABLE 7
GAIN/(LOSS) ANALYSIS BY SOURCE
Gain or (Loss)
Type of Activity for Year Ended 6/30/2017
Age & Service Retirements. If members retire at older ages or

with lower final average pay than assumed, there is a gain. If ($53,337,396) (0.4%)
younger ages or higher average pays, a loss.
Death-in-Service Benefits. If survivor claims are less than

assumed, there is a gain. If more claims, there is a loss. 6,165,742 0.0%
Withdrawal From Employment. If more liabilities are

released by withdrawals than assumed, there is a gain. (28,207,416) (0.2%)
If smaller releases, a loss.
Long Term Disability. The occurrence of a gain or loss depends

upon the age at disability and the incidence of disability. (566,348) (0.0%)
Pay Increases. If there are smaller pay increases

than assumed, there is a gain. If greater increases, a loss. 16,990,648 0.1%
Investment Income. If there is greater investment return on

assets than assumed, there is a gain. If less return, a loss. (232,063,471) (1.8%)
Retiree Mortality. If more deaths than assumed, there is a gain.

if fewer deaths, a loss. 14,330,274 0.1%
COLAs. If Cost of Living Adjustments are less than expected,

a gain; if more a loss. 68,345,099 0.5%
Other. Miscellaneous gains and losses resulting from

data adjustments, timing of financial transactions, (2,154,488) (0.0%)
valuation methods, etc.
Gain (or Loss) During Year From Experience ($210,497,356) (1.6%)
20
TABLE 8
HISTORICAL EXPERIENCE GAINS AND LOSSES BY SOURCE
Exper.
Gain (Loss) By Risk Area Total Gain Accrued
Year Age & Death Exper. (Loss) Liability
Ending Salary Service In- Retired Gain as % of Beginning
June 30 Increases Investments Retirement Disability Service Withdrawal Lives# COLAs Other (Loss) AAL of Year
1998 (56.9) 325.9 9.6 0.2 (0.3) (1.7) 16.3 (48.3) 244.8 5.5 4,484
1999 (21.9) 299.8 (1.3) (0.3) (0.9) 1.7 10.5 (58.1) 229.5 4.7 4,919
2000* (6.4) 162.0 1.7 (0.5) (0.7) 8.9 18.5 (34.7) 148.8 2.7 5,506
2001* (23.2) (67.9) (59.8) (1.0) (0.2) (28.2) (13.1) (66.1) (259.5) (4.4) 5,921
2002 115.0 (284.6) (14.4) (0.5) (1.3) (21.4) 37.1 (62.6) (232.8) (3.8) 6,065
2003 7.7 (314.1) (27.2) (0.6) (2.6) (14.6) 9.6 (63.1) (404.9) (6.5) 6,294
2004* (40.0) (240.1) (51.5) (1.4) (1.3) (6.7) (4.3) (53.8) (399.1) (6.0) 6,662
2005 (3.4) (196.6) 3.1 (2.0) (1.7) (0.9) (11.7) (35.5) (248.7) (3.4) 7,230
2006 (29.5) 38.0 (1.7) (2.3) (2.4) 15.5 (21.1) (3.6) (7.1) (0.1) 7,578
2007 (11.5) 179.4 (17.3) (2.1) (2.4) 3.8 (29.7) (43.0) 77.2 1.0 8,013
2008* (10.5) 78.3 (22.9) (2.0) (3.4) 6.6 8.7 (49.8) 5.0 0.1 8,500
2009* (15.9) (354.3) 8.8 (1.5) 0.0 (31.3) (39.8) (37.6) (471.6) (5.2) 9,128
2010 23.2 (313.6) (19.0) 8.4 8.0 (30.6) 4.7 (56.9) (375.8) (3.9) 9,495
2011 49.6 (204.0) (52.8) 10.8 7.5 (21.0) 32.7 (60.4) (237.6) (2.4) 9,853
2012* 12.3 (447.2) (24.3) 8.3 8.9 8.1 10.3 (53.6) (477.2) (4.7) 10,124
2013** 60.4 (313.7) 6.7 11.1 7.4 2.0 (7.7) (3.1) (70.4) (307.3) (2.8) 10,794
2014 52.6 249.5 (6.9) (4.2) (2.5) (12.7) 6.3 18.0 (68.3) 231.8 2.1 11,135
2015 51.4 (137.9) (29.1) (1.6) (0.5) 15.6 18.9 30.0 (54.0) (107.2) (0.9) 11,495
2016*** (59.3) (320.4) 7.5 (1.2) 3.0 (8.3) 16.9 50.3 (70.0) (381.5) (3.3) 11,728
2017* 17.0 (232.1) (53.3) (0.6) 6.2 (28.2) 14.3 68.3 (2.2) (210.5) (1.6) 12,751
* Revision in assumptions.
** Revision in asset valuation method.
*** Revision in assumptions & asset valuation method.
# Prior to the 2013 valuation, this amount included COLAs.
21
SECTION 5 EMPLOYER CONTRIBUTIONS
The previous two sections were devoted to a discussion of the assets and liabilities the Missouri State
Employees Retirement System. Table 5 indicates that current assets fall short of meeting the present value
of future benefits (total liability). This is expected in all but a completely closed fund, where no further
contributions are anticipated. In an active system, there will almost always be a difference between the
actuarial value of assets and total liabilities. This deficiency has to be made up by future contributions and
investment returns. An actuarial valuation sets out a schedule of future contributions that will deal with this
deficiency in an orderly fashion.
The method used to determine the incidence of the contributions in various years is called the actuarial cost
method. Under an actuarial cost method, the contributions required to meet the difference between current
assets and current liabilities are allocated each year between two elements: (1) the normal cost rate and (2)
the unfunded actuarial accrued liability contribution rate.
The term "fully funded" is often applied to a system in which contributions at the normal cost rate are
sufficient to pay for the benefits of existing employees as well as for those of new employees. More often
than not, systems are not fully funded, either because of past benefit improvements that have not been
completely funded or because of actuarial deficiencies that have occurred because experience has not been
as favorable as anticipated by the actuarial assumptions. Under these circumstances, an unfunded actuarial
accrued liability (UAAL) exists. Likewise, when the actuarial value of assets is greater than the actuarial
accrued liability, a surplus exists.
Description of Contribution Rate Components
The Entry Age Normal (EAN) actuarial cost method is used for the valuation. Under that method, the
normal cost for each year from entry age to assumed exit age is a constant percentage of the member's year
by year projected compensation. The portion of the present value of future benefits not provided by the
present value of future normal costs is the actuarial accrued liability. The unfunded actuarial accrued
liability represents the difference between the actuarial accrued liability and the actuarial value of assets as
of the valuation date. The unfunded actuarial accrued liability is calculated each year and reflects experience
gains and losses.
In general, contributions are computed in accordance with a level percent-of-payroll funding objective. The
contribution rate based on the June 30, 2017 actuarial valuation will be used to determine the employer
contribution rate for the plan year ending June 30, 2019. In this context, the term "contribution rate" means
the percentage, which is applied to a particular active member payroll to determine the actual employer
contribution amount (i.e., in dollars) for the group.
Contribution Rate Summary
In Table 9 the amortization payment related to the unfunded actuarial accrued liability, as of June 30, 2017,
is developed. Table 10 develops the computed employer contribution rate for the Plan and the estimated
amount of required State contributions. Table 11 shows a summary what the actuarial results would be
under different investment return assumptions.
The contribution rates shown in this report are based on the actuarial assumptions and cost methods
described in Appendix C.
22
TABLE 9
UAAL CONTRIBUTION RATE
(1) Total Contribution Rate as a Percent-of-Payroll for the Year after

the Valuation Date (as determined by the prior valuation)
(a) Total Normal Cost Rate Beginning of Year 8.60%
(b) UAAL Beginning of Year 12.26%
(c) Total Contribution Rate Beginning of Year* 20.86%
(2) UAAL on Valuation Date 4,279,892,047
(3) Expected Interest on UAAL at 7.50% 320,991,904
(4) Projected Payroll for the Year After the Valuation Date 2,030,854,231
(5) Total Normal Cost [ (1)(a) x (4) ] 174,653,464
(6) 1/2 Year Interest on Normal Cost at 7.50% 6,431,102
(7) Total Expected Contributions [ (1)(c) x (4) ] 423,636,193
(8) 1/2 Year Interest on Contributions at 7.50% 15,599,161
(9) Projected UAAL [ (2) + (3) + (5) + (6) - (7) - (8) ] 4,342,733,163
(10) Amortization Factor (27 years) 15.77829
(11) Projected Payroll for Second Year after Valuation Date 2,091,779,858
(12) UAAL Contribution Rate [ (9) / (10) / (11) ] 13.16%
*The Total Contribution Rate was the employer rate of 19.45% plus the weighted average member
rate of 1.41% of payroll.
23
TABLE 10
COMPUTED EMPLOYER CONTRIBUTION RATE
FOR THE FISCAL YEAR ENDING JUNE 30, 2019
ACTUARIAL VALUATION RESULTS AS OF JUNE 30, 2017
Percents of Payroll
MSEP & Weighted
MSEP 2000 MSEP 2011 Average
A. Normal Cost
(1) Service retirement benefits 6.49 % 4.82 % 5.95 %
(2) Termination benefits 0.94 1.49 1.12
(3) Survivor benefits 0.13 0.14 0.13
(4) Disability benefits 0.78 0.74 0.76
(5) Administrative expenses 0.43 0.43 0.43
(6) Total 8.77 7.62 8.39
B. Less Member Contributions 0.00 4.00 1.34
C. Employer Normal Cost [A(6) - B] 8.77 3.62 7.05
D. Unfunded Actuarial Accrued Liabilities (UAAL)

(27-year level percent-of-payroll amortization*) 13.16
E. TOTAL COMPUTED EMPLOYER CONTRIBUTION RATE [C. + D.] 20.21 %
F. POLICY MINIMUM EMPLOYER CONTRIBUTION RATE 16.97 %
G. ESTIMATED EMPLOYER CONTRIBUTION ($Millions)# $422.7
The amortization period is a 30-year closed period beginning with the June 30, 2014 valuation determining
the contribution rate for the fiscal year ending June 30, 2016 as described in the Funding Policy adopted by
the Board as of June 30, 2013. As of the June 30, 2017 valuation, 27 years remain starting with the fiscal
year ending June 30, 2019 and concluding with the fiscal year ending June 30, 2045.
At the September 18, 2014 meeting, the Board adopted a policy minimum contribution rate so that the
employer shall not fall below the fiscal 2015 rate (16.97% of payroll) until the plan is 80% funded.
* This corresponds to an amortization factor of 15.77829 applied to the unfunded actuarial accrued liability at the beginning of the
applicable fiscal year assuming payroll growth of 3% per year.
# Illustrative only. Estimated employer contribution amounts (shown in millions) are based on the greater of the Total Computed
Employer Contribution Rate and the Policy Minimum Contribution Rate shown and the valuation payroll projected two years into
the applicable fiscal year using the valuation assumption of 3% per year.
24
TABLE 11
COMPARISON OF VALUATION RESULTS UNDER ALTERNATE
INVESTMENT RETURN ASSUMPTIONS
Investment Return Assumption 6.50% 7.00% 7.50% 8.00% 8.50%
Contributions
Total Normal Cost 10.58% 9.40% 8.39% 7.50% 6.73%
Member Contributions 1.34% 1.34% 1.34% 1.34% 1.34%
Employer Normal Cost 9.24% 8.06% 7.05% 6.16% 5.39%
Unfunded Actuarial Accrued Liability 16.08% 14.64% 13.16% 11.64% 10.10%
Total Employer Contribution 25.32% 22.70% 20.21% 17.80% 15.49%

Total Employer Contribution ($ in millions) $529.6 $474.8 $422.7 $372.3 $324.0
Actuarial Value of Assets $8,872.4 $8,872.4 $8,872.4 $8,872.4 $8,872.4

Actuarial Accrued Liability $14,649.4 $13,867.7 $13,152.3 $12,496.1 $11,893.0
Funded Ratio 60.6% 64.0% 67.5% 71.0% 74.6%
Note: All other assumptions are unchanged for purposes of this sensitivity analysis.
25
SECTION 6 PROJECTIONS
The June 30, 2017 valuation results present the Systems financial status at a single point in time and
contribution requirements for a single fiscal year. Historical valuation results allow analysis of past trends,
but no insight into future trends. A projection model provides insight into the longer term trend of (1) the
projected Employer contributions; (2) the projected System funded status (ratio of actuarial assets over
liabilities); (3) net cash flow patterns; and (4) the unfunded actuarial accrued liability (actuarial accrued
liability minus actuarial assets). Projections can also be used to demonstrate how sensitive the valuation
results are to the key variables being modeled, but such projections are not included in this report.
For MSEPs, projections are particularly important and insightful due to the multiple-tiered benefit structure.
The current valuation produces a normal cost and accrued liability based on the composition of active
members on the valuation date, June 30, 2017. Without a tiered structure, systems can assume that the
normal cost, as a percentage of payroll, will remain relatively level. However, since all new employees are
covered under a less costly benefit structure, until all new employees are covered under MSEP 2011
benefits, the normal cost percentage will continue to decrease. In addition, MSEP 2011 members are the
only group making employee contributions so projections allow for the projected payroll to be segregated
by tier so that total future contributions reflect an estimate of the amounts to be contributed by employees.
The member data (active and in-pay status) is projected for each year in the future using current
assumptions. After the first year, a new-member profile is used to estimate the demographics of new
employees replacing members who are projected to terminate, retire, die or become disabled in future years.
For this modeling, the number of active members is assumed to remain level over the projection period.
These projections assume that all actuarial assumptions are met in all future years, including the investment
return assumption of 7.50%, and that the Employers makes contributions equal to the full amount of the
actuarially determined contribution, as calculated by the valuation, based on the Boards Funding Policy.
The projections are also based on the current plan provisions and assume that all new members joining after
June 30, 2017 will make employee contributions and be in the MSEP 2011 plan.
The projections do not predict the Systems financial condition or its ability to pay benefits in the future
and do not provide any guarantee of future financial soundness of the System nor do they, on their own,
indicate future funding requirements. Over time, a defined benefit plans total cost will depend on a number
of factors, including the amount of benefits paid, the number of people paid benefits, plan expenses and the
amount of earnings on assets invested to pay benefits. These amounts, and other variables, are uncertain
and unknowable at the time the projections were prepared. Because not all of the assumptions will unfold
exactly as expected, actual results will differ from the projections shown.
26
TABLE 12
30-YEAR PROJECTION OF ACTUARIAL VALUATION RESULTS
AS OF JUNE 30, 2017
Projection Based on 7.50% Investment Return
Amounts in thousands
Estimated
Covered Actuarial UAAL Actuarial Member Employer Dollar Amount
Valuation as of Payroll at Accrued Actuarial Value of Unfunded Funded Ratio Normal Cost Amortization Contribution Contribution Actuarial of Employer
June 30, Valuation Liability (AAL) Assets (AVA) AAL Using AVA Rate Payment Rate Rate Rate Contribution Rate Contribution*
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
2017 $2,030,854 $13,152,274 $8,872,382 $4,279,892 67.5% 8.39% 13.16% 21.55% 1.34% 20.21% $422,749
2018 2,040,899 13,449,162 8,907,741 4,541,421 66.2% 8.21% 14.16% 22.37% 1.54% 20.83% 437,873
2019 2,064,407 13,728,438 8,955,227 4,773,211 65.2% 8.09% 15.01% 23.10% 1.73% 21.37% 454,399
2020 2,094,871 13,988,753 9,015,599 4,973,154 64.4% 7.96% 15.74% 23.70% 1.90% 21.80% 470,382
2021 2,125,425 14,217,083 9,074,058 5,143,026 63.8% 7.82% 16.41% 24.23% 2.07% 22.16% 485,124
2022 2,159,568 14,434,477 9,148,776 5,285,702 63.4% 7.70% 17.01% 24.71% 2.25% 22.46% 499,590
2023 2,195,124 14,628,780 9,224,216 5,404,564 63.1% 7.59% 17.57% 25.16% 2.42% 22.74% 514,146
2024 2,236,188 14,801,434 9,303,590 5,497,845 62.9% 7.52% 18.04% 25.56% 2.57% 22.99% 529,523
2025 2,283,030 14,948,471 9,383,153 5,565,319 62.8% 7.43% 18.43% 25.86% 2.71% 23.15% 544,377
2026 2,325,775 15,054,092 9,447,383 5,606,709 62.8% 7.32% 18.84% 26.16% 2.85% 23.31% 558,402
2027 2,375,281 15,139,609 9,515,987 5,623,622 62.9% 7.25% 19.17% 26.42% 2.98% 23.44% 573,469
2028 2,427,392 15,204,517 9,589,299 5,615,218 63.1% 7.16% 19.46% 26.62% 3.11% 23.51% 587,800
2029 2,484,775 15,248,101 9,668,291 5,579,809 63.4% 7.08% 19.69% 26.77% 3.22% 23.55% 602,719
2030 2,546,377 15,268,878 9,751,878 5,517,001 63.9% 7.00% 19.88% 26.88% 3.32% 23.56% 617,924
2031 2,606,063 15,256,625 9,830,117 5,426,509 64.4% 6.91% 20.08% 26.99% 3.42% 23.57% 632,677
2032 2,672,095 15,225,768 9,918,405 5,307,364 65.1% 6.85% 20.23% 27.08% 3.50% 23.58% 648,983
2033 2,740,553 15,183,585 10,026,311 5,157,274 66.0% 6.79% 20.36% 27.15% 3.59% 23.56% 665,044
2034 2,813,052 15,126,665 10,153,214 4,973,451 67.1% 6.75% 20.46% 27.21% 3.65% 23.56% 682,638
2035 2,890,839 15,066,605 10,311,948 4,754,657 68.4% 6.71% 20.52% 27.23% 3.71% 23.52% 700,323
2036 2,966,357 14,986,248 10,488,581 4,497,667 70.0% 6.66% 20.61% 27.27% 3.76% 23.51% 718,312
2037 3,048,846 14,900,109 10,699,245 4,200,863 71.8% 6.63% 20.65% 27.28% 3.81% 23.47% 737,031
2038 3,134,495 14,819,656 10,959,677 3,859,979 74.0% 6.60% 20.66% 27.26% 3.85% 23.41% 755,799
2039 3,223,388 14,740,733 11,269,176 3,471,557 76.4% 6.57% 20.65% 27.22% 3.88% 23.34% 774,909
2040 3,317,627 14,678,311 11,644,692 3,033,619 79.3% 6.55% 20.61% 27.16% 3.91% 23.25% 794,489
2041 3,412,558 14,624,850 12,082,779 2,542,071 82.6% 6.52% 20.55% 27.07% 3.93% 23.14% 813,356
2042 3,511,562 14,590,577 12,597,113 1,993,464 86.3% 6.50% 20.42% 26.92% 3.94% 22.98% 831,166
2043 3,612,466 14,576,640 13,192,538 1,384,102 90.5% 6.48% 20.15% 26.63% 3.96% 22.67% 843,514
2044 3,716,817 14,580,324 13,869,185 711,139 95.1% 6.46% -0.33% 6.13% 3.97% 2.16% 82,692
2045 3,826,217 14,613,767 14,638,132 (24,365) 100.2% 6.45% -0.34% 6.11% 3.98% 2.13% 83,943
2046 3,935,774 14,667,905 14,692,952 (25,048) 100.2% 6.44% -0.33% 6.11% 3.98% 2.13% 86,347
* Amounts shown are contributions in the fiscal year ending two years after the valuation date.
27
TABLE 13
30-YEAR PROJECTION OF NET CASH FLOWS
AS OF JUNE 30, 2017
Net Cash
Valuation as of Total Benefit Administrative Net Market Value Flow as a
June 30, Contributions Payments Expenses Cash Flows of Assets (MVA) % of MVA
(1) (2) (3) (4) (5) (6) (7)
2017 $423,636 $829,902 $8,978 ($415,244) $7,945,358 (5.23%)

2018 439,814 863,666 9,203 (433,055) 8,110,726 (5.34%)
2019 461,808 899,617 9,433 (447,242) 8,270,029 (5.41%)
2020 483,915 947,629 9,669 (473,382) 8,426,571 (5.62%)
2021 503,726 972,895 9,910 (479,080) 8,567,751 (5.59%)
2022 523,263 1,011,636 10,158 (498,531) 8,713,611 (5.72%)
2023 542,415 1,044,878 10,412 (512,875) 8,850,245 (5.80%)
2024 562,625 1,081,293 10,672 (529,340) 8,982,253 (5.89%)
2025 583,543 1,131,860 10,939 (559,256) 9,107,090 (6.14%)
2026 601,445 1,157,990 11,213 (567,757) 9,210,273 (6.16%)
2027 621,374 1,185,003 11,493 (575,123) 9,312,380 (6.18%)
2028 641,317 1,210,456 11,780 (580,919) 9,414,509 (6.17%)
2029 661,447 1,236,711 12,075 (587,339) 9,518,287 (6.17%)
2030 681,665 1,272,244 12,377 (602,955) 9,623,192 (6.27%)
2031 700,510 1,290,550 12,686 (602,727) 9,719,774 (6.20%)
2032 721,199 1,301,663 13,003 (593,468) 9,823,837 (6.04%)
2033 742,142 1,314,580 13,328 (585,767) 9,945,304 (5.89%)
2034 763,744 1,316,755 13,662 (566,673) 10,083,866 (5.62%)
2035 786,597 1,335,566 14,003 (562,972) 10,252,617 (5.49%)
2036 807,739 1,338,107 14,353 (544,721) 10,437,861 (5.22%)
2037 831,420 1,330,218 14,712 (513,510) 10,655,922 (4.82%)
2038 855,090 1,326,364 15,080 (486,354) 10,922,697 (4.45%)
2039 878,696 1,309,457 15,457 (446,218) 11,237,637 (3.97%)
2040 903,058 1,301,231 15,843 (414,016) 11,617,811 (3.56%)
2041 926,851 1,283,627 16,239 (373,015) 12,059,886 (3.09%)
2042 950,580 1,266,671 16,645 (332,737) 12,577,627 (2.65%)
2043 972,476 1,253,506 17,061 (298,091) 13,175,960 (2.26%)
2044 989,788 1,230,851 17,488 (258,551) 13,855,090 (1.87%)
2045 234,547 1,219,609 17,925 (1,002,987) 14,626,150 (6.86%)
2046 240,476 1,209,037 18,373 (986,934) 14,683,192 (6.72%)
Net Cash Flow

0%
Contributions less Benefit Payments and Expenses as a
-1%
-2%
% of Marke t Value
-3%
-4%
-5%
-6%
-7%
-8%
28
SECTION 7 OTHER INFORMATION
HISTORICAL FUNDING AND OTHER INFORMATION

This section of the report provides a historical perspective on the Systems funding and contribution
practices, along with other information that may be of interest.
The information required for financial reporting by the System and participating employers is established
by the Governmental Accounting Standards Board (GASB). GASB 67 separates accounting and financial
reporting from funding requirements by creating disclosure and reporting requirements that are independent
of the basis used for funding the System. A separate report that contains all of the information and exhibits
of an actuarial nature that are necessary for the Systems financial reporting under GASB 67 will be issued
in the future.
GASB Statement No. 68 establishes standards for the measurement, recognition, and display of pension
expense and related liabilities. Annual pension cost is measured and disclosed on the accrual basis of
accounting. A separate report containing all of the pertinent information under GASB 68 reporting will
also be prepared in the future.
29
TABLE 14
SCHEDULE OF FUNDING PROGRESS
Unfunded
Actuarial Actuarial UAAL
Actuarial Accrued Accrued as a %
Actuarial Value of Liability Liability Funded Covered of Covered
Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Date (a) (b) (b - a) (a / b) (c) [(b - a) / c]
June 30, 2004 $6,118 $7,230 $1,112 84.6% $1,737 64.0%

June 30, 2005 6,435 7,578 1,143 84.9% 1,807 63.3%
June 30, 2006 6,837 8,013 1,176 85.3% 1,777 66.2%
June 30, 2007 7,377 8,500 1,123 86.8% 1,847 60.8%
June 30, 2008 7,838 9,128 1,290 85.9% 1,917 67.3%
June 30, 2009 7,876 9,495 1,619 83.0% 2,002 80.9%
June 30, 2010 7,923 9,853 1,930 80.4% 1,945 99.2%
June 30, 2011 8,022 10,124 2,102 79.2% 1,876 112.0%
June 30, 2012 7,897 10,794 2,897 73.2% 1,864 155.4%
June 30, 2013 8,096 11,135 3,039 72.7% 1,880 161.6%
June 30, 2014 8,638 11,495 2,857 75.1% 1,903 150.1%
June 30, 2015 8,792 11,728 2,936 75.0% 1,919 153.0%
June 30, 2016 8,878 12,751 3,873 69.6% 1,922 201.5%
June 30, 2017 8,872 13,152 4,280 67.5% 1,942 220.4%
Notes: Information before 2017 was produced by the prior actuary. Numbers may not add due to rounding.
30
TABLE 15
HISTORICAL EMPLOYER CONTRIBUTIONS

June 30, 2005 $195.6 $195.6 100.0%

June 30, 2006 227.2 227.2 100.0%
June 30, 2007 239.5 239.5 100.0%
June 30, 2008 249.8 249.8 100.0%
June 30, 2009 252.1 252.1 100.0%
June 30, 2010 251.2 251.2 100.0%

June 30, 2011 263.4 263.4 100.0%
June 30, 2012 263.4 263.4 100.0%
June 30, 2013 290.3 290.3 100.0%
June 30, 2014 326.4 326.4 100.0%
June 30, 2015 329.8 329.8 100.0%

June 30, 2016 330.0 330.0 100.0%
June 30, 2017 322.8 335.2 103.8%
Notes: Information before 2017 was produced by the prior actuary.
31
TABLE 16
HISTORICAL MEMBER STATISTICS
Valuation Active Members Retired Members

Date Payroll Average Salary Active/ Annual Benefits
June 30 Number $ Millions $ % Incr. Number Retired $ Millions % Incr.
2004 55,914 $1,737 $31,074 24,757 2.3 $324.6

2005 55,944 1,807 32,293 3.9 25,780 2.2 348.1 7.2
2006 54,493 1,777 32,615 1.0 27,052 2.0 373.6 7.3
2007 54,363 1,847 33,969 4.2 28,692 1.9 406.4 8.8
2008 54,542 1,917 35,139 3.4 30,132 1.8 434.6 6.9
2009 55,057 2,002 36,370 3.5 31,637 1.7 465.4 7.1
2010 53,478 1,945 36,372 0.0 33,251 1.6 493.7 6.1
2011 51,660 1,876 36,306 (0.2) 35,315 1.5 525.6 6.5
2012 51,332 1,864 36,314 0.0 37,308 1.4 558.6 6.3
2013 50,833 1,880 36,988 1.9 39,139 1.3 589.9 5.6
2014 50,621 1,903 37,588 1.6 41,000 1.2 618.7 4.9
2015 49,980 1,919 38,386 2.1 42,964 1.2 650.9 5.2
2016 49,464 1,922 38,847 1.2 44,828 1.1 680.8 4.6
2017 48,910 1,942 39,705 2.2 46,560 1.1 710.2 4.3
MSEP
Number of Active Members per Benefit Recipients
3
2.3
2.2
2.0
1.9
2 1.8
1.7
1.6
1.5
1.4
1.3
1.2 1.2
1.1 1.1
1
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
June 30
32
APPENDIX A MEMBERSHIP DATA
MEMBER DATA RECONCILIATION
Active Inactive Inactive Leave of Long-term Retirees and

Members Vested Nonvested Absence Disability Beneficiaries Total
As of June 30, 2016 49,464 19,512 3,233 132 928 44,828 118,097
Changes in status:
a) Retirement (1,876) (773) 0 (2) (79) 2,730 0
b) Death (78) (71) 0 (1) (25) (1,354) (1,529)
c) Non-vested termination (2,287) 0 2,321 (22) (12) 0 0
d) Leave of absence (122) (1) (1) 124 0 0 0
e) Vested termination (1,140) 1,222 0 (12) (70) 0 0
f) Contribution refund (1,278) (19) (3,033) (16) (8) 0 (4,354)
g) Beneficiary in receipt 0 0 0 0 0 459 459
h) Long-term disability (111) (6) (1) (5) 123 0 0
i) Disability retirement 0 0 0 0 0 0 0
j) Return to active service 501 (281) (136) (49) (7) (28) 0
k) Expired benefit 0 0 0 0 0 (62) (62)
l) Transfer to MPERS (36) (19) 0 0 0 0 (55)
m) Data adjustment (19) 14 0 (3) (1) (13) (22)
Total changes in status (6,446) 66 (850) 14 (79) 1,732 (5,563)
New entrants 5,892 0 1,516 32 0 0 7,440

Net Change (554) 66 666 46 (79) 1,732 1,877
As of June 30, 2017 48,910 19,578 3,899 178 849 46,560 119,974
33
SUMMARY OF MEMBERSHIP DATA
A. ACTIVE MEMBERS June 30, 2017 June 30, 2016 % Change
1. Number of Active Members

(a) MSEP 12,977 14,551 (10.8)
(b) MSEP 2000 16,950 17,975 (5.7)
(c) MSEP 2011 18,983 16,938 12.1
(d) Total 48,910 49,464 (1.1)
2. Annualized Reported Salary
(a) MSEP $ 611,186,626 $ 667,926,207 (8.5)
(b) MSEP 2000 679,044,458 691,166,904 (1.8)
(c) MSEP 2011 651,738,702 562,435,825 15.9
(d) Total $ 1,941,969,786 $ 1,921,528,936 1.1
3. Accumulated Member Contributions $ 62,971,479 $ 47,797,134 31.7
4. Active Member Averages
(a) Age 45.4 45.5 (0.2)
(b) Service 11.0 11.2 (1.8)
(c) Compensation $ 39,705 $ 38,847 2.2
B. INACTIVE MEMBERS
1. Number of Inactive Members

(a) Terminated vested 19,578 19,512 0.3
(b) Terminated nonvested (refund only) 3,899 3,233 20.6
(c) Leave of absence 178 132 34.8
(d) Long-term disability 849 928 (8.5)
(e) Total 24,504 23,805 2.9
2. Accumulated Member Contributions $ 7,442,984 $ N/A N/A
3. Inactive Member Averages

(a) Age (vesteds only) 48.4 N/A N/A
(b) Monthly benefit (vesteds only) $ 487 $ N/A N/A
(c) Accumulated member contributions $ 304 $ N/A N/A
C. RETIREES, DISABLEDS, AND BENEFICIARIES
1. Number of Members
(a) Service retirees and disableds 41,365 39,803 3.9
(b) Beneficiaries 5,195 5,025 3.4
(c) Total 46,560 44,828 3.9
2. Total Monthly Benefits
(a) Service retirees and disableds $ 54,121,380 $ 51,929,552 4.2
(b) Beneficiaries 5,061,637 4,805,032 5.3
(c) Total $ 59,183,017 $ 56,734,584 4.3
34
MEMBERSHIP DATA BY GROUP
Group Averages
Valuation Group Number Payroll Salary Age(yrs.) Service(yrs.)
Regular State Employees 46,219 $ 1,785,837,129 $ 38,639 45.1 10.7

Elected Officials 6 659,985 109,998 44.0 1.3
Legislative Clerks 11 381,400 34,673 65.5 19.6
Legislators 193 6,941,688 35,967 51.7 4.8
Uniformed Water Patrol 10 697,444 69,744 41.0 15.2
Conservation Department 1,373 61,206,748 44,579 44.3 14.1
School-Term Salaried Employees 1,076 83,638,379 77,731 57.7 21.8
Administrative Law Judges 22 2,607,013 118,501 59.8 22.7
Total MSEP 48,910 $ 1,941,969,786 $ 39,705 45.4 11.0
The total number of System active members includes 12,977 MSEP members, 16,950 MSEP 2000 members
and 18,983 MSEP 2011 members.
Monthly Group Averages

Type of Benefit Payment No. Benefit Benefit Age(yrs.)
Retirement 41,362 $ 54,120,422 $ 1,308 69.9

Disability 3 958 319 63.7
Survivor of Active Member 1,686 1,515,470 899 62.9
Survivor of Retired Member 3,509 3,546,167 1,011 75.7
Total MSEP 46,560 $ 59,183,017 $ 1,271 70.1
This valuation also includes 19,578 terminated vested members, 3,899 terminated members who have a
refund pending, 178 members on leave and 849 members on long-term disability.
35
ACTIVE MEMBERS
AS OF JUNE 30, 2017
MSEP
Count of Members Reported Annualized Earnings for Current Members
Age Male Female Total Male Female Total

24 & Under 0 0 0 $ 0 $ 0 $ 0
25-29 0 0 0 0 0 0
30-34 0 0 0 0 0 0
35-39 48 140 188 2,089,501 5,450,436 7,539,937
40-44 430 816 1,246 19,460,309 34,288,320 53,748,629
45-49 908 1,686 2,594 43,658,248 73,290,289 116,948,537
50-54 1,253 1,971 3,224 64,129,700 87,329,311 151,459,011
55-59 1,191 1,813 3,004 62,962,609 78,533,679 141,496,288
60-64 797 1,126 1,923 45,794,815 50,103,742 95,898,557
65 & Up 357 441 798 23,765,451 20,330,216 44,095,667
Total 4,984 7,993 12,977 $ 261,860,633 $ 349,325,993 $ 611,186,626
Count
3,500
3,000
2,500
2,000
1,500
1,000
500
0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Average Salary
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
36
ACTIVE MEMBERS
AS OF JUNE 30, 2017
MSEP 2000

24 & Under 0 0 0 $ 0 $ 0 $ 0
25-29 103 176 279 3,478,390 5,743,605 9,221,995
30-34 721 972 1,693 28,729,235 35,574,308 64,303,543
35-39 1,083 1,793 2,876 45,048,803 70,882,863 115,931,666
40-44 1,017 1,601 2,618 44,636,652 63,655,521 108,292,173
45-49 993 1,562 2,555 44,967,684 59,467,210 104,434,894
50-54 864 1,481 2,345 37,513,518 55,943,668 93,457,186
55-59 839 1,390 2,229 35,855,220 52,176,168 88,031,388
60-64 658 985 1,643 29,167,315 36,508,292 65,675,607
65 & Up 352 360 712 16,334,137 13,361,869 29,696,006
Total 6,630 10,320 16,950 $ 285,730,954 $ 393,313,504 $ 679,044,458
Count
3,500
3,000
2,500
2,000
1,500
1,000
500
0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Average Salary
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
37
ACTIVE MEMBERS
AS OF JUNE 30, 2017
MSEP 2011

24 & Under 1,007 1,329 2,336 $ 30,067,533 $ 36,785,387 $ 66,852,920
25-29 1,873 2,395 4,268 64,393,290 77,429,959 141,823,249
30-34 1,305 1,876 3,181 48,934,182 64,894,143 113,828,325
35-39 877 1,374 2,251 34,516,796 47,010,973 81,527,769
40-44 616 1,019 1,635 24,532,119 35,774,465 60,306,584
45-49 518 1,080 1,598 19,755,808 36,123,203 55,879,011
50-54 507 991 1,498 19,532,142 32,907,915 52,440,057
55-59 469 801 1,270 17,880,624 26,675,955 44,556,579
60-64 305 423 728 11,612,978 14,082,562 25,695,540
65 & Up 102 116 218 4,471,695 4,356,973 8,828,668
Total 7,579 11,404 18,983 $ 275,697,167 $ 376,041,535 $ 651,738,702
Count
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Average Salary
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
38
ACTIVE MEMBERS
AS OF JUNE 30, 2017
TOTAL

24 & Under 1,007 1,329 2,336 $ 30,067,533 $ 36,785,387 $ 66,852,920
25-29 1,976 2,571 4,547 67,871,680 83,173,564 151,045,244
30-34 2,026 2,848 4,874 77,663,417 100,468,451 178,131,868
35-39 2,008 3,307 5,315 81,655,100 123,344,272 204,999,372
40-44 2,063 3,436 5,499 88,629,080 133,718,306 222,347,386
45-49 2,419 4,328 6,747 108,381,740 168,880,702 277,262,442
50-54 2,624 4,443 7,067 121,175,360 176,180,894 297,356,254
55-59 2,499 4,004 6,503 116,698,453 157,385,802 274,084,255
60-64 1,760 2,534 4,294 86,575,108 100,694,596 187,269,704
65 & Up 811 917 1,728 44,571,283 38,049,058 82,620,341
Total 19,193 29,717 48,910 $ 823,288,754 $ 1,118,681,032 $ 1,941,969,786
Count
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Average Salary
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
24 & Under 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
39
AGE AND SERVICE DISTRIBUTION

AS OF JUNE 30, 2017
Age 0-4 5-9 10-14 15-19 20-24 25-29 30-34 Over 34 Total
24 & Number 2,327 9 0 0 0 0 0 0 2,336
Under Total Salary $ 66,590,409 $ 262,511 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 66,852,920
Average Sal. $ 28,616 $ 29,168 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 28,619
25-29 Number 3,988 541 18 0 0 0 0 0 4,547
Total Salary $ 131,870,539 $ 18,606,882 $ 567,823 $ 0 $ 0 $ 0 $ 0 $ 0 $ 151,045,244
Average Sal. $ 33,067 $ 34,394 $ 31,546 $ 0 $ 0 $ 0 $ 0 $ 0 $ 33,219
30-34 Number 2,808 1,529 525 12 0 0 0 0 4,874
Total Salary $ 99,231,027 $ 59,172,943 $ 19,304,248 $ 423,650 $ 0 $ 0 $ 0 $ 0 $ 178,131,868
Average Sal. $ 35,339 $ 38,700 $ 36,770 $ 35,304 $ 0 $ 0 $ 0 $ 0 $ 36,547
35-39 Number 2,059 1,363 1,338 539 16 0 0 0 5,315
Total Salary $ 73,894,644 $ 53,882,624 $ 54,754,912 $ 21,771,155 $ 696,037 $ 0 $ 0 $ 0 $ 204,999,372
Average Sal. $ 35,889 $ 39,532 $ 40,923 $ 40,392 $ 43,502 $ 0 $ 0 $ 0 $ 38,570
40-44 Number 1,554 1,062 1,082 1,331 456 14 0 0 5,499
Total Salary $ 58,054,643 $ 42,707,693 $ 43,871,324 $ 57,305,427 $ 19,753,294 $ 655,005 $ 0 $ 0 $ 222,347,386
Average Sal. $ 37,358 $ 40,214 $ 40,547 $ 43,054 $ 43,319 $ 46,786 $ 0 $ 0 $ 40,434
45-49 Number 1,575 1,051 981 1,367 1,311 419 43 0 6,747
Total Salary $ 57,151,446 $ 40,906,630 $ 38,255,511 $ 59,043,894 $ 60,166,798 $ 19,951,175 $ 1,786,988 $ 0 $ 277,262,442
Average Sal. $ 36,287 $ 38,922 $ 38,996 $ 43,192 $ 45,894 $ 47,616 $ 41,558 $ 0 $ 41,094
50-54 Number 1,352 995 974 1,277 1,149 931 365 24 7,067
Total Salary $ 48,385,799 $ 38,179,440 $ 36,993,287 $ 55,160,790 $ 53,703,987 $ 45,920,732 $ 18,028,092 $ 984,127 $ 297,356,254
Average Sal. $ 35,788 $ 38,371 $ 37,981 $ 43,196 $ 46,740 $ 49,324 $ 49,392 $ 41,005 $ 42,077
55-59 Number 1,166 912 930 1,254 979 663 444 155 6,503
Total Salary $ 42,449,438 $ 33,979,410 $ 34,976,223 $ 53,255,158 $ 44,838,767 $ 33,779,521 $ 23,763,334 $ 7,042,404 $ 274,084,255
Average Sal. $ 36,406 $ 37,258 $ 37,609 $ 42,468 $ 45,801 $ 50,950 $ 53,521 $ 45,435 $ 42,147
60-64 Number 639 663 728 892 588 408 225 151 4,294
Total Salary $ 23,782,431 $ 25,783,776 $ 27,260,697 $ 37,300,165 $ 27,889,550 $ 23,282,075 $ 13,537,777 $ 8,433,233 $ 187,269,704
Average Sal. $ 37,218 $ 38,890 $ 37,446 $ 41,816 $ 47,431 $ 57,064 $ 60,168 $ 55,849 $ 43,612
65 & Number 184 288 300 348 214 145 103 146 1,728
Up Total Salary $ 7,640,390 $ 11,768,559 $ 12,064,105 $ 15,206,722 $ 10,835,898 $ 8,588,010 $ 6,387,382 $ 10,129,275 $ 82,620,341
Average Sal. $ 41,524 $ 40,863 $ 40,214 $ 43,697 $ 50,635 $ 59,228 $ 62,013 $ 69,379 $ 47,813
Total Number 17,652 8,413 6,876 7,020 4,713 2,580 1,180 476 48,910
Total Salary $ 609,050,766 $ 325,250,468 $ 268,048,130 $ 299,466,961 $ 217,884,331 $ 132,176,518 $ 63,503,573 $ 26,589,039 $ 1,941,969,786
Average Sal. $ 34,503 $ 38,660 $ 38,983 $ 42,659 $ 46,231 $ 51,231 $ 53,817 $ 55,859 $ 39,705
40
INACTIVE VESTED MEMBERS

AS OF JUNE 30, 2017
Count of Members* Monthly Deferred Benefits*

24 & Under 25 3 28 $ 4,163 $ 106 $ 4,269
25-29 61 111 172 21,080 33,463 54,543
30-34 454 704 1,158 156,496 233,077 389,573
35-39 844 1,421 2,265 363,518 557,732 921,250
40-44 1,153 2,070 3,223 532,108 915,185 1,447,293
45-49 1,536 2,709 4,245 851,149 1,371,621 2,222,770
50-54 1,610 2,887 4,497 1,039,201 1,500,658 2,539,859
55-59 1,234 2,543 3,777 704,821 1,195,078 1,899,899
60-64 419 741 1,160 200,651 292,222 492,873
65 & Up 41 39 80 37,336 27,333 64,669
Total 7,377 13,228 20,605 $ 3,910,523 $ 6,126,475 $ 10,036,998
* There are 178 members currently on leave and 849 members on LTD. Their counts and estimated deferred monthly benefits are included.
Count
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
24 & 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Under
Age
Average Benefit
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
24 & 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Under
Age
41
RETIRED MEMBERS
AS OF JUNE 30, 2017
Count of Members Monthly Benefits

54 & Under 166 349 515 $ 472,798 $ 905,211 $ 1,378,009
55-59 1,134 2,262 3,396 2,080,650 4,053,764 6,134,414
60-64 3,109 5,312 8,421 4,178,524 6,306,555 10,485,079
65-69 4,387 6,753 11,140 5,570,337 6,811,884 12,382,221
70-74 3,348 4,697 8,045 5,022,942 4,878,794 9,901,736
75-79 1,885 2,831 4,716 3,484,891 3,118,533 6,603,424
80-84 1,051 1,718 2,769 2,129,421 1,917,977 4,047,398
85-89 542 983 1,525 1,125,218 1,076,663 2,201,881
90 & Over 228 610 838 371,244 615,974 987,218
Total 15,850 25,515 41,365 $ 24,436,025 $ 29,685,355 $ 54,121,380
Count
12,000
10,000
8,000
6,000
4,000
2,000
0
54 & 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90 & Over
Under
Age
Average Benefit
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
54 & 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90 & Over
Under
Age
42
BENEFICIARIES RECEIVING BENEFITS

AS OF JUNE 30, 2017

54 & Under 228 334 562 $ 118,398 $ 231,739 $ 350,137
55-59 105 245 350 64,672 217,791 282,463
60-64 141 359 500 102,849 356,321 459,170
65-69 205 525 730 139,689 543,326 683,015
70-74 182 550 732 145,253 661,359 806,612
75-79 183 562 745 148,272 741,613 889,885
80-84 174 550 724 123,892 622,887 746,779
85-89 135 399 534 84,566 468,614 553,180
90 & Over 87 231 318 45,049 245,347 290,396
Total 1,440 3,755 5,195 $ 972,640 $ 4,088,997 $ 5,061,637
Count
800
700
600
500
400
300
200
100
0
54 & 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90 & Over
Under
Age
Average Benefit
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
54 & 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90 & Over
Under
Age
43
RETIRED LIVES BENEFITS PAYABLE AS OF JUNE 30, 2017

TABULATED BY OPTION AND TYPE OF BENEFIT
MSEP Benefits
Total Monthly
Type of Benefit No. Benefits
Service Retirement
Life Annuity 5,805 $ 6,941,503
50% Joint and Survivor 5,204 8,092,343
5-Year Certain and Life 139 132,844
Survivor Beneficiary 2,577 2,800,684
Total 16,914 23,534,792
Disability Retirement 3 958
Death-in-Service 1,465 1,432,089
Total 18,382 $ 24,967,839
MSEP 2000 Benefits
Total Monthly
Service Retirement
Life Annuity 16,847 $ 19,555,473
15-Year Certain and Life 623 428314
Survivor Beneficiary 932 745,483
Total 27,955 34,130,301
Death-in-Service 220 82,065
Total 28,175 $ 34,212,366
There are 3 MSEP 2011 members receiving benefits totaling $2,812 payable monthly.
44
APPENDIX B DEMOGRAPHIC EXPERIENCE
SALARY INCREASES
DURING PLAN YEAR 2016-2017
Salary Increases
Age Count Actual* Expected
Under 20 15 -1.5% 5.7%

20 - 24 1,142 7.4% 5.0%
25 - 29 3,387 6.7% 4.5%
30 - 34 4,040 5.2% 4.1%
35 - 39 4,708 4.9% 3.9%
40 - 44 5,024 4.2% 3.8%

45 - 49 6,272 3.7% 3.6%
50 - 54 6,737 3.2% 3.6%
55 - 59 6,129 3.1% 3.6%
60 - 64 4,371 2.8% 3.5%
65 & Over 1,077 2.9% 3.5%
Total 42,902
Average 4.0% 3.8%

* Excludes new entrants and terminations.
Payroll Growth
2017 2016 2015
Actual 1.1% 0.2% 0.8%
Assumed 3.0% 0.0% 3.0%
45
ACTIVE MEMBERS WHO RETIRED WITH

SERVICE RETIREMENT BENEFITS
Male Female Total

Age Actual Expected Actual Expected Actual Expected
Under 50 1 0.0 10 3.2 11 3.2

50 5 1.4 7 7.4 12 8.8
51 11 4.6 17 9.6 28 14.2
52 20 11.3 27 18.7 47 30.0
53 25 19.9 34 27.8 59 47.7
54 20 18.9 46 32.6 66 51.5
55 22 23.8 60 41.8 82 65.6
56 27 24.7 54 36.9 81 61.6
57 40 35.9 63 49.3 103 85.3
58 32 34.6 59 58.0 91 92.6
59 37 40.0 63 55.5 100 95.6
60 38 51.6 77 77.8 115 129.3
61 48 43.3 88 60.8 136 104.1
62 70 78.1 100 102.3 170 180.5
63 49 55.2 60 85.8 109 141.0
64 61 44.5 79 58.6 140 103.1
65 67 57.5 86 77.0 153 134.5
66 49 43.0 67 54.7 116 97.8
67 31 29.3 42 31.7 73 61.0
68 19 19.2 19 19.2 38 38.3
69 43 31.9 43 29.0 86 60.9
70 & Over 29 50.1 31 41.6 60 91.7
Total 744 718.7 1,132 979.2 1,876 1,697.9
Male Female Total

Average age at retirement 61.8 years 60.8 years 61.2 years
Average service at retirement 22.2 years 22.6 years 22.5 years
46
ACTIVE MEMBERS WHO BECAME DISABLED

Male Female Total

Under 25 0 0.8 0 1.0 0 1.8

25 - 29 2 2.0 1 2.6 3 4.5
30 - 34 1 2.1 4 2.9 5 5.0
35 - 39 3 5.1 2 8.4 5 13.5
40 - 44 4 7.7 5 12.7 9 20.4
45 - 49 8 11.3 13 19.5 21 30.8

50 - 54 8 15.6 16 26.1 24 41.7
55 - 59 9 15.6 24 26.0 33 41.6
60 & Over 4 6.9 7 10.4 11 17.3
Total 39 67.1 72 109.6 111 176.7
Male Female Total

Average age at disability 49.3 years 51.2 years 50.5 years
Average service at disability 10.1 years 10.4 years 10.3 years
47
ACTIVE MEMBERS WHO DIED

Male Female Total

Under 30 3 0.8 1 0.5 4 1.3

30 - 34 1 0.7 1 0.6 2 1.3
35 - 39 0 0.8 4 0.9 4 1.8
40 - 44 3 1.1 1 1.3 4 2.4
45 - 49 1 2.2 3 2.6 4 4.8
50 - 54 8 4.4 2 4.8 10 9.2

55 - 59 10 7.3 6 6.8 16 14.1
60 - 64 9 9.4 11 6.4 20 15.8
65 & Over 13 8.9 1 4.1 14 13.0
Total 48 35.7 30 28.1 78 63.8
Male Female Total

Average age at death 57.1 years 53.0 years 55.5 years
Average service at death 15.6 years 13.3 years 14.7 years
Of the 78 active members who died in service during plan year 2016-2017, 27 members had a
benefit payable to a survivor.
48
ACTIVE MEMBERS WHO TERMINATED EMPLOYMENT

WITH A DEFERRED BENEFIT
Male Female Total

Under 30 20 18.2 40 31.8 60 50.0

30 - 34 90 82.6 119 108.4 209 191.0
35 - 39 101 88.4 156 150.7 257 239.2
40 - 44 90 81.5 121 130.9 211 212.4
45 - 49 79 72.4 123 125.1 202 197.5
50 - 54 69 55.4 115 90.6 184 146.0

55 - 59 28 18.8 61 30.1 89 48.9
60 & Over 16 1.3 21 1.6 37 2.9
Total 493 418.5 756 669.2 1,249 1,087.8
Male Female Total

Average age at termination 42.3 years 42.7 years 42.6 years
Average service at termination 10.4 years 10.7 years 10.6 years
49
ACTIVE MEMBERS WHO TERMINATED EMPLOYMENT

WITHOUT A DEFERRED BENEFIT PAYABLE
Male Female Total

Under 20 8 0.0 13 0.0 21 0.0

20 - 24 256 152.0 349 209.6 605 361.6
25 - 29 422 294.7 584 411.2 1,006 705.9
30 - 34 254 184.4 367 290.2 621 474.6
35 - 39 140 120.6 261 225.8 401 346.4
40 - 44 97 85.9 187 167.0 284 252.9

45 - 49 81 80.4 158 172.8 239 253.2
50 - 54 61 72.7 136 152.5 197 225.2
55 - 59 30 60.4 86 119.5 116 179.9
60 - 64 40 42.8 52 61.7 92 104.5
65 - 69 12 11.0 13 11.9 25 22.8

70 & Over 5 2.6 2 1.5 7 4.1
Total 1,406 1,107.5 2,208 1,823.7 3,614 2,931.2
Male Female Total

Service Actual Expected Actual Expected Actual Expected
0-1 554 424.8 939 762.6 1,493 1,187.4

1-2 338 278.6 521 458.0 859 736.6
2-3 221 190.3 323 278.0 544 468.3
3-4 156 133.7 267 204.0 423 337.6
4-5 137 80.1 158 121.1 295 201.3
Total 1,406 1,107.5 2,208 1,823.7 3,614 2,931.2
Male Female Total

Average age at termination 33.3 years 34.7 years 34.2 years
Average service at termination 1.7 years 1.6 years 1.7 years
50
COMPARISON OF ACTUAL TO EXPECTED DEATHS

AMONG RETIRED LIVES
(SERVICE RETIREMENT ONLY)
Male Female Total

Age Actual Expected Exposures Actual Expected Exposures Actual Expected Exposures
Under 45 0 0.0 0 0 0.0 0 0 0.0 0

50 - 54 2 0.6 111 0 0.9 274 2 1.5 385
55 - 59 7 7.0 986 15 9.6 1,968 22 16.6 2,954
60 - 64 42 28.8 2,942 57 35.2 5,061 99 64.0 8,003
65 - 69 76 60.8 4,348 70 68.1 6,552 146 128.9 10,900
70 - 74 69 67.3 3,151 91 72.6 4,435 160 139.9 7,586

75 - 79 73 64.5 1,845 93 75.7 2,775 166 140.1 4,620
80 - 84 66 64.6 1,074 116 83.6 1,757 182 148.3 2,831
85 - 89 75 58.2 561 94 88.1 1,031 169 146.3 1,592
90 - 94 44 37.9 220 82 72.3 510 126 110.2 730
95 - 99 23 12.0 45 41 31.0 136 64 43.0 181

100 & Over 1 0.4 1 4 5.8 16 5 6.2 17
Total 478 402.1 15,284 663 543.0 24,515 1,141 945.0 39,799
Average
Ages 77.6 77.5 69.8 79.2 79.6 69.7 78.5 78.7 69.7
51
APPENDIX C SUMMARY OF PLAN PROVISIONS
MSEP MSEP 2000 MSEP 2011

(Missouri State Employees Plan) (Missouri State Employees Plan 2000) (Missouri State Employees Plan 2011)
DEFINITIONS
Participants
All MOSERS members, vested former (1) All new employees who first become (1) All new employees who first become
members, retirees and survivors who first members on or after July 1, 2000, except employees on or after January 1, 2011,
became members prior to July 1, 2000 and full-time teaching and senior except full-time teaching and senior
who do not elect to transfer to the MSEP administrative personnel of the regional administrative personnel of the regional
2000 plan. Election is made at the time colleges and universities hired on or colleges and universities hired on or after
benefits commence. after July 1, 2002 who will be July 1, 2002 who will be participants in
participants in the Colleges and the Colleges and Universities Retirement
Universities Retirement Plan (CURP). Plan (CURP).
(2) MSEP active members and vested (2) Members hired on or after January 1,
former members who elect to transfer to 2011 participating in the CURP for six
the MSEP 2000 plan prior to retirement. years may elect to change to MOSERS.
(3) MSEP retirees who elect to transfer to Transferred service is for vesting
the MSEP 2000 plan during the election purposes only.
window from July 1, 2000 through June
30, 2001, and their survivors.
(4) MSEP non-vested terminations rehired
on or after July 1, 2000.
(5) Members hired prior to January 1, 2011
participating in the CURP for six years
may elect to change to MOSERS.
Transferred service is for vesting
purposes only.
52

Final average earnings
The average annual compensation of a The average annual compensation of a member The average annual compensation of a member
member for the three consecutive years of for the three consecutive years of service for the three consecutive years of service
service during which pay was highest during which pay was highest (overtime pay is during which pay was highest (overtime pay is
(overtime pay is included for purposes of included for purposes of determining Average included for purposes of determining Average
determining Average Compensation). Non- Compensation). Non-recurring lump sum Compensation). Non-recurring lump sum
recurring lump sum payments are excluded. payments are excluded. Unused sick leave may payments are excluded. Unused sick leave may
Unused sick leave may be converted to be converted to additional credited service be converted to additional credited service
additional credited service (usable only for (usable only for benefit computation, not (usable only for benefit computation, not
benefit computation, not eligibility). eligibility). eligibility).
Member contributions
None. Same as MSEP. 4.0% of salary, with interest credited to

member contributions based on the 52-week
Treasury bill rate (4% prior to June 30, 2014).
53

ELIGIBILITY FOR BENEFITS
Normal retirement
Members of the General Assembly: Members of the General Assembly: Members of the General Assembly:
Age 55 with completion of at least 3 full The earliest of attaining: The earliest of attaining:
biennial assemblies. (1) Age 55 with completion of at least 3 full (1) Age 62 with completion of at least 3 full
biennial assemblies. biennial assemblies.
Statewide Elected Officials: (2) Age 50 with completion of at least 3 full (2) Age 55 with completion of at least 3 full
The earliest of attaining: biennial assemblies and with age plus biennial assemblies and with age plus
(1) Age 65 with at least 4 years of credited credited service equal to 80 or more. credited service equal to 90 or more.
service.
(2) Age 60 with at least 15 years of credited Statewide Elected Officials: Statewide Elected Officials:
service. The earliest of attaining: The earliest of attaining:
(3) Age 50 with age plus credited service (1) Age 55 with at least 4 years of credited (1) Age 62 with at least 4 years of credited
equal to 80 or more. service. service as a statewide elected official.
(2) Age 50 with age plus credited service (2) Age 55 with age plus credited service
General Employees: equal to 80 or more. equal to 90 or more.
The earliest of attaining:
(1) Age 65 and active with at least 4 years of General Employees: General Employees:
credited service. The earliest of attaining: The earliest of attaining:
(2) Age 65 with at least 5 years of credited (1) Age 62 with at least 5 years of credited (1) Age 67 with at least 10 years of credited
service. service. service (5 years effective January 1, 2018).
(3) Age 60 with at least 15 years of credited (2) Age 48 with age plus credited service (2) Age 55 with age plus credited service
service. equal to 80 or more. equal to 90 or more.
(4) Age 48 with age plus credited service
equal to 80 or more.
54

Uniformed Water Patrol Employees:

(1) Age 55 and active with at least 4 years of
credited service.
(2) Age 55 with at least 5 years of credited
service.
(3) Age 48 with age plus credited service
equal to 80 or more.
Administrative Law Judges:

(1) Age 62 and active with at least 12 years of
credited service.
service.
service.
Early retirement for general employees
Age 55 with at least 10 years of credited Age 57 with at least 5 years of credited service. Age 62 with at least 10 years of credited
service. service (5 years effective January 1, 2018).
55

MONTHLY BENEFITS PAYABLE
Normal Retirement
Members of the General Assembly: Members of the General Assembly: Members of the General Assembly:
$150 per month per biennial assembly served. 1/24 of pay times first 24 years of credited 1/24 of pay times first 24 years of credited
service as a member of the General Assembly. service as a member of the General Assembly.
Statewide Elected Officials:
1) Less than 12 years of credited service: Statewide Elected Officials: Statewide Elected Officials:
1.6% of Average Compensation times 1/24 of pay (of the highest elected position held 1/24 of pay (of the highest elected position held
years of credited service. prior to retirement) times the first 12 years of prior to retirement) times the first 12 years of
2) 12 or more years of credited service: credited service as a statewide elected official. credited service as a statewide elected official.
50% of pay of the highest elected
position held prior to retirement. General Employees: General Employees:
1.7% of Average Compensation times years of 1.7% of Average Compensation times years of
General Employees: credited service. credited service.
1.6% of Average Compensation times years of
credited service. Temporary Benefit: Temporary Benefit:
If member retires between ages 48 and 62 with If member retires between ages 55 and 62 with
2.1% of Average Compensation times years of age plus credited service equal to 80 or more, age plus credited service equal to 90 or more,
credited service for any period of non-social a temporary benefit is payable until the a temporary benefit is payable until the
security covered employment transferred from attainment of the minimum age at which attainment of the minimum age at which
the Public School Retirement System. reduced social security benefits are payable, in reduced social security benefits are payable, in
the amount of 0.8% of Average Compensation the amount of 0.8% of Average Compensation
Uniformed Water Patrol: times years of credited service. times years of credited service.
2.13% of Average Compensation times years
of credited service.
56

Administrative Law Judges: Non-Social Security Covered Service: Non-Social Security Covered Service:
50% of Compensation 2.5% of Average Compensation times years 2.5% of Average Compensation times years of
of credited service for any period of non- credited service for any period of non-social
social security covered employment security covered employment transferred from
transferred from the Public School the Public School Retirement System.
Retirement System.
Early retirement for general employees

Normal retirement amount reduced by % for
Normal retirement amount reduced by % Normal retirement amount reduced by % each month that retirement precedes eligibility
for each month that retirement precedes for each month that retirement precedes for normal retirement, age 67.
eligibility for normal retirement. eligibility for normal retirement, age 62.
1) Less than 15 years of service: Normal
retirement amount actuarially reduced
for years younger than age 65.
2) 15 years but less than 20 years of service,
and less than the number of years of
service necessary for age and service to
total 80: Normal retirement amount
actuarially reduced for years younger
than age 60.
3) 20 or more years of service, but less than
the number of years of service necessary
for age and service to total 80: Normal
retirement amount reduced for years
younger than the 80 and out eligibility
date.
57

Vested deferred benefits
Benefits for employees who terminate prior to Benefits for employees who terminate prior to Benefits for employees who terminate prior to
eligibility for an immediate benefit are eligibility for an immediate benefit are eligibility for an immediate benefit are
considered to be vested in accordance with the considered to be vested in accordance with the considered to be vested in accordance with the
following schedule (benefits commence at the following schedule (benefits commence at age following schedule (benefits commence at age
age the individual would have been eligible for 57 for early retirement or 62 for normal 67 normal retirement). Unused sick leave is not
early or normal retirement, considering years retirement). Unused sick leave is converted. converted for any new deferred vested
of credited service). Unused sick leave is not CURP to MOSERS transfers with 6 years of members on or after January 1, 2018.
converted. service are immediately vested.
Years of General Elected General Years of General Elected General Years of General Elected General
Service Assembly Officials Employees Service Assembly Officials Employees Service Assembly Officials Employees
4 100% 4 100% 4 100%
5 100% 5 100% 6* 100%
6* 100% 6* 100% 10** 100%
*3 Assemblies *3 Assemblies, HB1455 prospectively *3 Assemblies, HB1455 prospectively
**5 years of service for General Employees on or after
Death prior to retirement January 1, 2018.
The surviving spouse benefit is computed as The surviving spouse benefit is computed as if The surviving spouse benefit is computed as if
if the member had been normal retirement the member had been normal retirement age on the member had been normal retirement age on
age on the date of death and elected the joint the date of death and elected the joint and the date of death* and elected the joint and
and 100% survivor optional form of 100% survivor optional form of payment, 100% survivor optional form of payment,
payment, provided the member had at least provided the member had at least 5 years of provided the member had at least 5 years of
5 years of credited service and was married credited service (3 full assemblies for a credited service (2 full assemblies for a
on the date of death. If no eligible spouse member of the General Assembly, 4 years of member of the General Assembly, 4 years of
survives, 80% of the members life income credited service for a statewide elected credited service for a statewide elected
annuity is paid to eligible children until age official). If no eligible spouse survives, 80% of official). If no eligible spouse survives, 80% of
21. If the death is duty related, the service the members life income annuity is paid to the members life income annuity is paid to
requirement is waived and the minimum eligible children until age 21. If the death is eligible children until age 21. If the death is
duty related, the duty related, the
58

spouse benefit is 50% of Average service requirement is waived and the service requirement is waived and the
Compensation (rate of compensation for minimum spouse benefit is 50% of Average minimum spouse benefit is 50% of Average
members of the General Assembly). Compensation (rate of compensation for Compensation (rate of compensation for
members of the General Assembly). members of the General Assembly).
*Effective January 1, 2018, the surviving spouse benefit
for terminated vested participants is payable when
Death after retirement member would have reached normal retirement age.
50% of the benefit the retired member was The benefit payable under the joint and The benefit payable under the joint and
receiving on the date of death (the normal survivor or period certain form of payment, if survivor or period certain form of payment, if
form of payment), or the benefit payable the member elected an optional form of the member elected an optional form of
under the joint and survivor or period certain payment at time of retirement. A member who payment at time of retirement. A member who
form of payment, if the member elected an is not married at retirement but marries is not married at retirement but marries
optional form of payment at time of thereafter may designate a spouse as thereafter may designate a spouse as
retirement and provided the member was beneficiary within one year of marriage. beneficiary upon completion of one year of
married on their date of retirement. Effective Additionally, a member may designate a new marriage. Additionally, a member may
July 1, 2000, a member who is not married spouse as beneficiary within one year of designate a new spouse as beneficiary upon
at retirement but marries thereafter may marriage in the event of the death of the spouse completion of one year of marriage in the event
designate a spouse as beneficiary within one the member was married to at the date of of the death of the spouse the member was
year of marriage. Additionally, a member retirement (this provision does not apply to married to at the date of retirement (this
may designate a new spouse as beneficiary period certain annuities). provision does not apply to period certain
within one year of marriage in the event of annuities).
the death of the spouse the member was
married to at the date of retirement (this
provision does not apply to period certain
annuities).
59

Disability
Normal retirement benefits become payable Normal retirement benefits become payable at Normal retirement benefits become payable at
at the time the member is eligible for normal the time the member is eligible for normal the time the member is eligible for normal
retirement, and are computed based on: i) retirement, and are computed based on: i) the retirement, and are computed based on: i) the
the service that would have accrued to the service that would have accrued to the member service that would have accrued to the member
member if active employment had if active employment had continued; and ii) the if active employment had continued; and ii) the
continued; and ii) the member's rate of pay member's rate of pay at the time of disability member's rate of pay at the time of disability
at the time of disability (if the member indexed to the time of benefit commencement. indexed to the time of benefit commencement.
retires on or after August 28, 1999, the The annual percentage increase in the pay used The annual percentage increase in the pay used
members rate of pay is based on the rate of to compute benefits is the lesser of: i) 80% of to compute benefits is the lesser of: i) 80% of
pay at the time of disability indexed to the the CPI increase and ii) 5%. the CPI increase and ii) 5%.
time of benefit commencement). An
exception is Uniformed Water Patrol
employees who are eligible for an
immediate occupational disability benefit
equal to 50% of pay at time of disability.
Post-retirement benefit adjustments
Benefits are increased to retired members Benefits are increased to retired members Benefits are increased to retired members
(including survivors) annually in accordance (including survivors) annually in accordance (including survivors) annually in accordance
with the following formulas: with the following: with the following:
Formula 1 Formula 2 Members of the General Assembly: Members of the General Assembly:
Increase in Benefit Benefit Benefit is adjusted annually based on the Benefit is adjusted annually based on the
CPI Increase Increase
5.00% or less 4% 80% of CPI increase in the pay for an active member of the increase in the pay for an active member of the
increase General Assembly. General Assembly.
5.01% - 6.24% 80% of CPI 80% of CPI
increase increase
6.25% or more 5% 5%
60

Members first hired prior to August 28, 1997 Statewide Elected Officials: Statewide Elected Officials:
receive COLAs based on Formula 1 until an Benefit is adjusted annually based on the Benefit is adjusted annually based on the
aggregate increase of 65% is reached. At that increase in the pay for an active statewide increase in the pay for an active statewide
point subsequent COLAs based on Formula 2 elected official in the retired members highest elected official in the retired members highest
are granted. elected position. elected position.
Members first hired on or after August 28, General Employees: General Employees:
1997 receive COLAs based solely on Formula Annual benefit percentage increase equal to Annual benefit percentage increase equal to
2. the lesser of: i) 80% of the CPI increase, and the lesser of: i) 80% of the CPI increase, and
5%. 5%.
Statewide Elected Officials with 12 or more
years of service have their benefit adjusted CPI: For the basis of determining CPI, the CPI: For the basis of determining CPI, the
annually based on the increase in the pay for an average monthly reported CPI for the prior average monthly reported CPI for the prior
active statewide elected official in the calendar year is divided by the average calendar year is divided by the average
members highest elected position. monthly reported CPI for the second prior monthly reported CPI for the second prior
calendar year to determine the current year calendar year to determine the current year
Members who are fully vested and work increases, if any. If this amount is less than one, increases, if any. If this amount is less than one,
beyond age 65 will have their monthly benefit benefits are not reduced, nor is there any benefits are not reduced, nor is there any
increased upon retirement. The percentage cumulative effect on future years cumulative effect on future years
increase in benefit is equal to all COLAs for determination of CPI. determination of CPI.
the years between age 65 and date of
retirement, not to exceed 65% and counts Timing of Increase: Benefits are adjusted on Timing of Increase: Benefits are adjusted on
toward the Formula 1 65% maximum. the anniversary of the effective date of the anniversary of the effective date of
retirement for most members. Members retirement.
retiring under the BackDROP provisions have
an anniversary based on the retroactive starting
date for the BackDROP.
61

Pop-up provision
Benefits to members who choose a survivor Same. Same.

form of payment and whose spouse precedes
the member in death, will "pop-up" or revert to
the amount the member would have received
had he/she not elected a survivor option.
Portability
Purchase/Transfer Provisions (in addition to Purchase/Transfer Provisions (in addition to May purchase qualifying public sector service
military). Effective August 28, 1999, a military). A member may purchase up to four at full actuarial cost.
member may purchase up to four years of non- years of non-federal full-time Missouri public
federal full-time Missouri public service, service, provided the member is not vested in
provided the member is not vested in another another retirement system for that same
retirement system for that same service. service. Local vested service credit granted
after 10 years of state service if the other
retirement plan agrees to transfer assets equal
to the accrued liability to MOSERS.
62

BackDROP
To be eligible to participate in the BackDROP, Same as MSEP. Not eligible for the BackDROP.
a member must have been eligible to retire
under normal retirement age and/or service
conditions for at least two years. A retroactive
starting date is established for BackDROP
purposes which is the later of: 1) the members
normal retirement date or 2) five years prior to
the annuity starting date under the retirement
plan selected by the member.
A member may elect the BackDROP period for

the accumulation of the BackDROP account in
12 month increments prior to their actual
retirement date or back to the earliest possible
date. This results in a BackDROP period of one
to five years depending upon the individual
situation.
A theoretical BackDROP account is

accumulated that includes 90% of the value of
the benefit payments that would have been
paid during the BackDROP period had the
member retired at the retroactive starting date
with their respective option election. These
payments include applicable post-retirement
benefit increases.
63

The member is paid the resulting lump sum

value of the BackDROP account as of the
annuity starting date or as three equal annual
installments beginning at the annuity
starting date.
The annuity benefit payable from the actual

retirement date is computed with years of
service and average pay as of the retroactive
starting date for the BackDROP. Post-
retirement benefit increases that occurred
during the BackDROP period are applied in
the calculation of the monthly annuity.
64
APPENDIX D SUMMARY OF ACTUARIAL ASSUMPTIONS
ACTUARIAL METHODS
1. Calculation of Normal Cost and Actuarial Accrued Liability: The funding method used to
determine the normal cost and actuarial accrued liability was the Entry Age Actuarial Cost Method
described below.
Entry Age Actuarial Cost Method
Under the entry age normal cost method, the actuarial present value of each members projected
benefit is allocated on a level basis over the members compensation between the entry age of the
member and their assumed exit age. The portion of the actuarial present value allocated to the
valuation year is called the normal cost. The actuarial present value of benefits allocated to prior
years of service is called the actuarial accrued liability. The unfunded actuarial accrued liability
represents the difference between the actuarial accrued liability and the actuarial value of assets as
of the valuation date. The unfunded actuarial accrued liability is calculated each year and reflects
experience gains/losses.
2. Calculation of the Actuarial Value of Assets: Calculation of the Actuarial Value of Assets
(AVA): The AVA is based on an open five-year smoothing method and is determined by spreading
the difference between the actual investment income on market value and expected investment
income on actuarial value. The difference is added to the net unrecognized gains or losses from
previous years (difference between the beginning of year market value and beginning of year
actuarial value) and then divided by 5 to create a phased-in amount. This phased-in amount is then
added to the expected AVA at the valuation date (BOY AVA plus actual cash flow plus expected
investment income). The AVA is limited by a corridor and must be no less than 80% of MVA and
no greater than 125% of MVA.
Changes in Methods and Assumptions since the Prior Year
The assumed rate of investment return was decreased from 7.65% to 7.50%.
65
ACTUARIAL ASSUMPTIONS
Economic Assumptions
1. Investment Return 7.50%, compounded annually, net of investment expenses.

(7.65% in June 30, 2016 valuation)
2. Inflation 2.50% per year
3. Salary Increases Rates vary by service. Sample rates are as follows:
Rates by Service
Years Rate
1 8.75 %
2 5.50
3 4.50
4 4.25
5 4.00
9 3.75
10 3.50
25+ 3.25
General Assembly members have a flat 3.00% assumption
4. Payroll Growth 3.00% per year
5. Cost-of-Living Adjustment (COLA) 4.00% on a compounded basis when a minimum COLA of

4.00% is in effect. 2.00% on a compounded basis when no
minimum COLA is in effect.
6. Interest on Member Contributions 1.50% per year
Demographic Assumptions
1. Mortality The mortality assumption includes an appropriate level of

conservatism that reflects expected future mortality
improvement.
a. Post-retirement RP-2014 Healthy Annuitant mortality table, projected from

2006 to 2026 with Scale MP-2015 and scaled by 120%
66
b. Pre-retirement RP-2014 Employee mortality table, projected from 2006 to

2026 with Scale MP-2015 and scaled by 95% for males and
90% for females
c. Long-term disability RP-2014 Disabled mortality table, projected from 2006 to

2026 with Scale MP-2015 and scaled by 95% for males and
90% for females
2. Retirement Assumption
Normal Retirement Early Retirement

MSEP MSEP MSEP
MSEP and MSEP 2000* 2011** and 2011
MSEP
2000
Retirement Percent Retiring Percent Retirement Percent Percent
Age 1st Year 2nd Year 3rd Year Retiring Age Retiring Retiring
48 20 %
49 20 10 %
50 20 10 21 %
51 20 10 21
52 20 10 21
53 20 10 21
54 20 10 21
55 20 10 21 45 %
56 20 10 21 45
57 20 10 21 35 57 2.4 %
58 20 10 21 35 58 3.1
59 20 10 21 30 59 3.0
60 20 10 21 35 60 5.1
61 19 10 21 25 61 6.0
62 18 22 29 40 62 6.0 10 %
63 16 18 24 30 63 6.0 10
64 15 17 17 20 64 6.0 10
65 19 19 27 30 65 50
66 24 25 28 25 66 50
67 10 25 23 20 67
68 20 25 23 20 68
69 20 25 23 20 69
70 20 25 23 20 70
71 20 25 23 20 71
72 20 25 23 20 72
73 20 25 23 20 73
74 20 25 23 20 74
75 50 50 23 50 75
76 50 50 23 50 76
77 75 75 23 75 77
78 100 100 100 100 78
* For members hired prior to January 1, 2011.
** For members hired on or after January 1, 2011.
67
3 Termination From Active Employment
Percent of Active Members

Separating within the Next Year
Years of
Sample Service Termination** Death* Disability
Age Males Females Males Females Males Females
0-1 24.0 % 27.5 %
1-2 19.0 21.5
2-3 15.5 16.3
3-4 13.3 13.5
4-5 11.2 11.3
25 5+ 13.5 % 14.0 % 0.03 % 0.01% 0.10 % 0.10 %

30 10.6 11.0 0.03 0.02 0.10 0.10
35 8.2 8.5 0.04 0.03 0.10 0.10
40 5.8 6.0 0.05 0.03 0.36 0.36
45 4.3 4.5 0.07 0.05 0.41 0.41
50 2.9 3.0 0.13 0.08 0.57 0.57
55 2.9 3.0 0.22 0.14 0.77 0.77
60 2.9 3.0 0.40 0.20 1.02 1.02
65 2.9 3.0 0.70 0.30 1.23 1.23
70 2.9 3.0 1.17 0.50 1.23 1.23
* The pre-retirement mortality table used was the RP-2014 Employee mortality table, projected from 2006 to
2026 with Scale MP-2015 and scaled by 95% for males and 90% for females. 2% of the deaths in active service
are assumed to be duty related.
** Does not apply to Elected Officials and Legislators.
Elected Officials and Legislators
Percent of Active
Members Separating
within the Next Year
Years of Termination
Service Male/Female
0-1 8.0 %
1-2 8.0
2-3 8.0
3-4 8.0
4-5 12.0
5-6 12.0
6-7 12.0
7+ 35.0
68
Other Assumptions
1. Form of Payment MSEP 50% joint and survivor

MSEP 2000 and MSEP 2011 Straight life annuity
2. Marital Status
a. Percent married 70% married at retirement, 60% of those dying in

active service are married
b. Spouses age Females assumed to be three years younger than

males.
3. Pay Increase Timing Beginning of the fiscal year.
4. Decrement Timing Decrements of all types are assumed to occur mid-

year.
5. Eligibility Testing Eligibility for benefits is determined based upon

the age nearest birthday and service nearest whole
year on the date the decrement is assumed to occur.
6. Benefit Service Exact fractional service is used to determine the

amount of the benefit payable.
7. Decrement Relativity Decrement rates are used directly from the

experience study, without adjustment for multiple
decrement table effects.
8. Decrement Operation Disability and withdrawal do not operate during

normal retirement eligibility.
9. Other Liability Adjustments Pre-Retirement Survivor Benefits for Spouse of

Terminated Vested Member
Age Male/Female
<30 1.57/1.31
30-39 1.24/1.13
40-49 1.09/1.05
>50 1.02/1.01
These factors are used to estimate the cost of

immediate unreduced survivor annuities upon the
death of a vested member.
10. Incidence of Contributions Contributions are assumed to be received

continuously throughout the year based upon the
computed percent of payroll shown in this report,
and the actual payroll payable at the time
contributions are made. New entrant normal cost
69
contributions are applied to the funding of new

entrant benefits.
11. MSEP 2000 Election All regular state employees hired on or before June
30, 2000 are assumed to elect MSEP 2000 prior to
age 62 and MSEP on or after age 62. Elected
Officials, General Assembly, and Uniformed
Water Patrol Members hired before July 1, 2000
and Administrative Law Judges hired before April
26, 2005 are assumed to elect MSEP at retirement.
12. Service Adjustment It is assumed that each member will be granted 8

months of service credit, 4 months for unused leave
upon retirement and 4 months for military service
purchases. For members hired on or after January
1, 2011 it is assumed that each member will be
granted 5 months for unused leave.
13. Forfeitures MSEP - For those hired on or after January 1, 2011,

50% of state employees terminating at first vesting
eligibility are assumed to take a refund and forfeit
their deferred pension. This percentage decreases
to 0% at first retirement eligibility.
14. Salary and Benefit Limits For purposes of the valuation, no limits were
applied to member compensation or benefits.
15. Commencement age for deferred Normal Retirement Date

vested benefit
70
Data Adjustments
Active and retired member data was reported as of May 31, 2017. It was brought forward to June 30,
2017 by adding one month of service for all active members and the June COLA for certain retired
members. Financial information continues to be reported as of June 30. This procedure was instituted
to provide sufficient time for the Board of Trustees to certify the appropriate contribution rate prior to
the October 1 statutory deadline.
Active members reported with less than a $100 annualized salary were assumed to receive the average
active member pay.
When the option of choosing plans is available, terminated vested members are reported with two
records, one with benefits under the MSEP plan and one with benefits under the MSEP 2000 plan.
Because it is unknown what the member will elect at retirement, both records are valued and the plan
that produces the higher present value of future benefits is used for valuation purposes.
For any retired member who has elected a joint and survivor benefit yet has no beneficiary date of birth
provided, it was assumed that the beneficiary is 3 years younger for male retirees and 3 years older for
female retirees.
For members reported with no gender, the member is assumed to be male.
Due to limitations in our valuation program, members who are not eligible for normal retirement prior
to age 85 had their date of birth adjusted.
TECHNICAL VALUATION PROCEDURES
Other Valuation Procedures
Salary increases are assumed to apply to annual amounts.
Decrements are assumed to occur mid-year, except that immediate retirement is assumed for those who are at
or above the age at which retirement rates are 100%. Standard adjustments are made for multiple decrements.
No actuarial liability is included for participants who terminated without being vested prior to the valuation
date, except those due a refund of contributions.
71
APPENDIX E GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between the actuarial present value of system
benefits and the actuarial value of future normal costs. Also
referred to as accrued liability or actuarial liability.
Actuarial Assumptions Estimates of future experience with respect to rates of mortality,

disability, turnover, retirement, rate or rates of investment income
and salary increases. Decrement assumptions (rates of mortality,
disability, turnover and retirement) are generally based on past
experience, often modified for projected changes in conditions.
Economic assumptions (salary increases and investment income)
consist of an underlying rate in an inflation-free environment plus
a provision for a long-term average rate of inflation.
Accrued Service Service credited under the system which was rendered before the
date of the actuarial valuation.
Actuarial Equivalent A single amount or series of amounts of equal actuarial value to

another single amount or series of amounts, computed on the basis
of appropriate assumptions.
Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar
amount of the actuarial present value of retirement system benefit
between future normal cost and actuarial accrued liability.
Sometimes referred to as the actuarial funding method.
Experience Gain (Loss) The difference between actual experience and actuarial
assumptions anticipated experience during the period between
two actuarial valuation dates.
Actuarial Present Value The amount of funds currently required to provide a payment or
series of payments in the future. It is determined by discounting
future payments at predetermined rates of interest and by
probabilities of payment.
Amortization Paying off an interest-discounted amount with periodic payments

of interest and principal, as opposed to paying off with lump sum
payment.
Normal Cost The actuarial present value of retirement system benefits allocated
to the current year by the actuarial cost method.
Unfunded Actuarial Accrued Liability The difference between actuarial accrued liability and the
valuation assets. Sometimes referred to as unfunded
actuarial liability or unfunded accrued liability.
Most retirement systems have unfunded actuarial accrued

liability. They arise each time new benefits are added and
each time an actuarial loss is realized.
72
This Page Intentionally Left Blank

MISSOURI STATE EMPLOYEES

RETIREMENT SYSTEM - JUDGES
ACTUARIAL VALUATION REPORT

as of June 30, 2017
Contribution Rates for Fiscal Year Ending

June 30, 2019
TABLE OF CONTENTS
Sections Page
Actuarial Certification Letter
Section 1 Board Summary....................................................................................................................... 1
Section 2 Scope of the Report.................................................................................................................. 9
Section 3 System Assets ......................................................................................................................... 10

Table 1 Asset Summary..................................................................................................................... 11
Table 2 Development of Actuarial Value of Assets .......................................................................... 12
Section 4 System Liabilities ................................................................................................................... 13

Table 3 Unfunded Actuarial Accrued Liability ................................................................................. 14
Table 4 Amortization Schedule for UAAL ....................................................................................... 15
Table 5 Actuarial Balance Sheet ....................................................................................................... 16
Table 6 Analysis of Gain/(Loss)........................................................................................................ 17
Section 5 Employer Contributions ....................................................................................................... 18

Table 7 UAAL Contribution Rate ..................................................................................................... 19
Table 8 Computed Employer Contribution Rate ............................................................................... 20
Table 9 Comparison of Valuation Results Under Alternate Assumptions ........................................ 21
Section 6 Projections .............................................................................................................................. 22

Table 10 30-Year Projection of Actuarial Valuation Results ............................................................ 23
Table 11 30-Year Projection of Net Cash Flows ............................................................................... 24
Section 7 Other Information ................................................................................................................. 25

Table 12 Schedule of Funding Progress ............................................................................................ 26
Table 13 Historical Employer Contributions..................................................................................... 27
Table 14 Historical Member Statistics .............................................................................................. 28
Appendix A Membership Data ................................................................................................................ 29
Appendix B Summary of Plan Provisions ............................................................................................... 39
Appendix C Summary of Actuarial Assumptions.................................................................................... 42
Appendix D Glossary of Terms ............................................................................................................... 47
June 30, 2017 Actuarial Valuation Missouri State Employees Retirement System Judges
Cavanaugh Macdonald
C O N S U L T I N G, L L C
The experience and dedication you deserve
September 8, 2017
Board of Trustees
Missouri State Employees Retirement System
907 Wildewood Drive
Jefferson City, MO 65102
Dear Members of the Board:
At your request, we performed an actuarial valuation of the Missouri State Employees Retirement System
(MOSERS) as of June 30, 2017 for the purpose of determining the employer required contribution rate for
the plan year ending June 30, 2019. This report provides valuation results for the Missouri State
Employees Retirement System - Judges (Judges). The major findings of the valuation are contained in this
report, which reflects the benefit provisions in place on June 30, 2017. The have been no changes to the
benefit provisions or actuarial methods since the prior valuation.
There was one change to the actuarial assumptions since the prior valuation. At their meeting on June 22,
2017, the Board reaffirmed the change in the investment return assumption from 7.65% to 7.50% for the
June 30, 2017 actuarial valuation.
results. Based on our experience, these differences are neither unusual nor significant. In our replication,
we matched the actuarial liability within 1.5% and the normal cost rate within 6.1%.
In preparing our report, we relied, without audit, on information (some oral and some in writing) supplied
by the Systems staff. This information includes, but is not limited to, statutory provisions, member data
and financial information. We found this information to be reasonably consistent and comparable with the
information received in the prior year. The valuation results depend on the integrity of this information. If
any of this information is inaccurate or incomplete, our results may be different and our calculations may
need to be revised.
We further certify that all costs, liabilities, rates of interest and other factors for Judges have been
determined on the basis of actuarial assumptions and methods which are individually reasonable (taking
into account the experience of each Plan and reasonable expectations); and which, in combination, offer
the best estimate of anticipated experience affecting Judges. Nevertheless, the emerging costs will vary
from those presented in this report to the extent actual experience differs from that projected by the actuarial
assumptions. The MOSERS Board has the final decision regarding the appropriateness of the assumptions
and adopted them as indicated in Appendix C.
3906 Raynor Pkwy, Suite 106, Bellevue, NE 68123

Phone (402) 905-4461 Fax (402) 905-4464
www.CavMacConsulting.com
Offices in Englewood, CO Off
Kennesaw, GA Bellevue, NE
Board of Trustees
September 8, 2017
Page 2
Future actuarial measurements may differ significantly from the current measurements presented in this
report due to such factors as the following: plan experience differing from that anticipated by the economic
or demographic assumptions; changes in economic or demographic assumptions; increases or decreases
expected as part of the natural operation of the methodology used for these measurements (such as the end
of an amortization period or additional cost or contribution requirements based on the plan's funded status);
and changes in plan provisions or applicable law. Due to the limited scope of our assignment, we did not
perform an analysis of the potential range of future measurements.
The actuarial computations presented in this report are for purposes of determining the funding amounts
for Judges as set out in the Missouri state statutes. The calculations in the enclosed report have been made
on a basis consistent with our understanding of MOSERS funding requirements and goals. Determinations
for purposes other than meeting these requirements may be significantly different from the results contained
in this report. Accordingly, additional determinations may be needed for other purposes. For example,
actuarial computations for purposes of fulfilling financial accounting requirements for the System under
Governmental Accounting Standard No. 67 will be presented in a completely separate report.
The consultants who worked on this assignment are pension actuaries. Cavanaugh Macdonalds advice is
not intended to be a substitute for qualified legal or accounting counsel.
On the basis of the foregoing, we hereby certify that, to the best of our knowledge and belief, this report is
complete and accurate and has been prepared in accordance with generally recognized and accepted
actuarial principles and practices. We are members of the American Academy of Actuaries and meet the
Qualification Standards to render the actuarial opinion contained herein. We are available to answer any
questions on the material contained in the report or to provide explanations or further details as may be
appropriate.
We respectfully submit the following report and look forward to discussing it with you.
Sincerely,
Patrice A. Beckham, FSA, EA, FCA, MAAA Joseph A. Nichols, ASA, EA, MSPA, MAAA, FCA
Principal and Consulting Actuary Consulting Actuary
This report presents the results of the June 30, 2017 actuarial valuation of the Missouri State Employees
System Judges (Judges). The primary purposes of performing this actuarial valuation are to:
Determine the employer and member contribution rates defined in the Missouri state statutes and
dictated by the Boards funding policy for the fiscal year ending June 30, 2019 ;
Disclose asset and liability measurements as well as the current funded status of Judges on the
valuation date;
Compare the actual and expected experience of Judges during the plan year ended June 30, 2017;
and
Analyze and report on trends in Judges contributions, assets and liabilities over the past several
years.
Key Results
The actuarial valuation results provide a snapshot view of the Systems financial condition on June 30,
2017. The Judges funded ratio increased from 26.2% to 26.9% despite an increase in the unfunded actuarial
accrued liability (UAAL) from $404 million last year to $413 million this year. In addition, the employer
actuarial contribution rate increased from 62.09% of pay last year to 63.71% of pay in this years valuation,
an increase of 1.62% of pay.
The valuation results reflect net unfavorable experience for the past plan year as demonstrated by an UAAL
that was higher than expected (actual UAAL of $413 million compared to an expected UAAL of $411
million). The unfavorable experience was due to a combination of an investment loss on assets and a net
experience gain on liabilities.
A summary of the key results from the June 30, 2017 actuarial valuation is shown in the following table.
Further detail on the changes and experience losses affecting valuation results can be found in the following
sections of this Board Summary.
June 30, 2017 June 30, 2016
Unfunded Actuarial Accrued Liability ($M) $413 $404

Funded Ratio (Actuarial Assets) 26.9% 26.2%
Normal Cost Rate 22.29% 21.00%
UAAL Amortization Rate 42.71% 42.48%
Total Actuarial Required Contribution 65.00% 63.48%
Employer Contribution Rate 63.71% 62.09%
1
Replication Results
This is the first actuarial valuation report prepared by Cavanaugh Macdonald Consulting, LLC (CMC) for
Judges. As part of our transition work, we replicated the June 30, 2016 actuarial valuation. Results were
well within acceptable limits, but as is typical in a takeover situation, there were some differences in the
key valuation results. Based on our experience, these differences are neither unusual nor significant. A
summary of the key actuarial measurements in the replication results is shown in the following table:
June 30, 2016 Results

CMC GRS CMC/GRS
Present Value of Future Benefits $621,629,535 $624,515,679 99.5%
Actuarial Accrued Liability $539,475,700 $547,621,617 98.5%
Normal Cost 22.29% 21.00% 106.1%
Assumption Changes
There was one change to the actuarial assumptions from last years valuation. At their June 17, 2017
meeting, the Board reaffirmed the scheduled decrease in the investment return assumption from 7.65% to
7.50%, per the Boards policy. The remaining assumptions and methods used in this years valuation are
unchanged from last year. The impact of the change in the investment return assumption is shown below.
7.65% 7.50% Difference

Actuarial Accrued Liability $556,512,459 $564,417,925 $7,905,466
Actuarial Value of Assets 151,828,631 151,828,631 -
Unfunded Actuarial Accrued Liability $404,683,828 $412,589,294 $7,905,466
Normal Cost Amount 21.68% 22.29% 0.61%

UAAL Amortization Amount 42.54% 42.71% 0.17%
Actuarial Contribution Amount 64.22% 65.00% 0.78%
Experience for the Last Plan Year
Numerous factors contributed to the change in the Judges assets, liabilities, and actuarial required
contribution rate between June 30, 2016 and June 30, 2017. The components are examined in the following
discussion.
Assets
As of June 30, 2017, Judges had net assets of $138 million, when measured on a market value basis, an
increase of $6 million from the prior year value of $132 million.
The market value of assets is not used directly in the calculation of the unfunded actuarial accrued liability
and the employer actuarial contribution rate. An asset valuation method, which smoothes the effect of
market fluctuations, is applied to determine the value of assets used in the valuation. The resulting amount
is called the actuarial value of assets. In this years valuation, the actuarial value of assets for Judges is
$152 million, an increases of $9 million from the prior year. The components of change in the asset values
are shown in the following table:
2
Market Value ($M) Actuarial Value ($M)
Net Assets, June 30, 2016 $ 132.06 $ 143.47

- Employer and Member Contributions + 35.03 + 35.03
- Benefit Payments - 33.98 - 33.98
- Net Investment Income + 4.67 + 7.46
- Administrative Expenses - 0.15 - 0.15
Net Assets, June 30, 2017 $ 137.63 $ 151.83
Rate of Return, Net of Expenses 3.53% 5.18%
The estimated rate of return on the actuarial value of assets was 5.18%, which is lower than the investment
return assumption in place for FY 2017 of 7.65%. As a result, there was an experience loss on assets of
$3.5 million. The investment return on the market value of assets for FY 2017 of 3.53% increased the
deferred investment loss from $11 million in last years valuation to $14 million in the current valuation.
Please see Section 3 of this report for more detailed information on the market and actuarial value of assets.
Liabilities
The actuarial accrued liability is that portion of the present value of future benefits that will not be paid by
future normal costs. The difference between this liability and the actuarial value of assets as of the valuation
date is called the unfunded actuarial accrued liability (UAAL). The dollar amount of unfunded actuarial
accrued liability is reduced if the contributions to the System exceed the sum of the normal cost for the year
plus interest on the prior years UAAL.
The unfunded actuarial accrued liability is shown as of June 30, 2017 in the following table:
Actuarial Market
Value of Assets Value of Assets
Actuarial Accrued Liability $564,417,925 $564,417,925
Value of Assets 151,828,631 137,634,941
Unfunded Actuarial Accrued Liability $412,589,294 $426,782,984
Funded Ratio 26.90% 24.39%
See Section 4 of the report for the detailed development of the unfunded actuarial accrued liability.
3
The net change in the UAAL from June 30, 2016 to June 30, 2017 was an increase of $8.4 million. The
components of this net change are shown in the following table:
($ Millions)
Unfunded Actuarial Accrued Liability, June 30, 2016 $404.2
- Expected increase from amortization method 7.4

- Actual vs. Expected Contributions (1.6)
- Investment experience 3.5
- Liability experience (1.9)
- Change from revised assumptions/methods 7.9
- Transition/actuarial software (8.8)
- Other experience 1.9
Unfunded Actuarial Accrued Liability, June 30, 2017 $412.6
As shown above, various components impacted the dollar amount of the UAAL. Actuarial gains (losses),
which result from actual experience that is more (less) favorable than anticipated based on the actuarial
assumptions, are reflected in the UAAL and are measured as the difference between the expected UAAL
and the actual UAAL, taking into account any changes due to actuarial assumptions and methods, or benefit
provision changes. Overall, Judges experienced a net actuarial loss of $1.6 million. The actuarial loss may
be explained by considering the separate experience of assets and liabilities. As noted earlier, there was a
$1.9 million experience gain on the System liabilities and an experience loss of $3.5 million on the actuarial
value of assets.
As the following graph of historical actuarial assets and accrued liabilities shows, the Systems liabilities
have been growing at a faster pace than the Systems assets since the FY 2009 market downturn. As a
result, the funded ratio declined over that period.
Judges
Actuarial Value of Assets vs Actuarial Accrued Liability
$600
$500
$ Millions
$400
$300
$200
$100
$0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Actuarial Accrued Liability Actuarial Value of Assets
4
An evaluation of the UAAL on a pure dollar basis may not provide a complete analysis since only the
difference between the assets and liabilities (which are both very large numbers) is reflected. Another way
to evaluate the UAAL and the progress made in its funding is to track the funded ratio, which is equal to
the ratio of the actuarial value of assets to the actuarial accrued liability. The funded status information,
using the actuarial value of assets, is shown below (in millions).
6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017

Funded Ratio 24.8% 25.5% 28.0% 27.8% 26.2% 26.9%
UAAL ($M) $311 $324 $338 $349 $404 $413
Note that the funded ratio does not indicate whether or not the System assets are sufficient to settle benefits
earned to date. The funded ratio, by itself, also may not be indicative of future funding requirements. If
the funded ratios were shown using the market value of assets, the results would differ.
The funded ratio over a longer period is shown in the following graph:
Funded Ratio
30%
25%
20%
15%
10%
5%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Funded Ratio
Typically plans that have been in existence as long as Judges (over 40 years) have a funded ratio well above
the current 26.9% level. However, until 1999, Judges was funded on a pay-as-you-go basis. As a result,
each years contribution was equal to the benefits and administrative expenses for that year only. In other
words, the funded ratio was 0%. As a result of a change in funding policy that required contributions to
equal the normal cost plus a UAAL amortization payment, the funded ratio has steadily increased over the
last 18 years. Assuming future experience follows the current assumptions, continued funding at the current
policy will allow the funding ratio to increase, until the UAAL is fully amortized in 2044, and the funded
ratio reaches 100%.
5
Actuarial Required Contribution Rate
The System is funded by contributions from employers (actuarially determined) and employees hired after
December 31, 2010 (4.00% of pay). Under the Entry Age Normal cost method, the actuarial contribution
rate consists of two components:
A normal cost for the portion of projected liabilities allocated by the actuarial cost method to
service of members during the year following the valuation date.
An unfunded actuarial accrued liability contribution for the excess of the portion of projected
liabilities allocated to service to date over the actuarial value of assets.
The UAAL contribution rate is determined by calculating the amortization payment, as a level percentage
of payroll, over a closed 30-year period starting in 2014 (27 years remain as of June 30, 2017). This
methodology results in payments that are lower amounts than level dollar payments in the initial years of
the amortization period, but increase each year in the future with the assumed payroll growth assumption
of 3%. Because the UAAL contribution rate is determined as a level percent of payroll, the dollar amount
of the UAAL contribution is scheduled to increase 3% each year in the future even if all actuarial
assumptions are met. In addition, the UAAL is expected to increase for nearly ten years before starting to
decline, even if all actuarial assumptions are met.
See Section 5 of the report for the detailed development of the employer contribution rate, which is
summarized in the following table:
June 30 Valuation*
Contribution Rates 2017 2016
1. Normal Cost Rate 22.29% 21.00%
2. UAAL Contribution Rate 42.71% 42.48%
3. Total Actuarial Required Contribution Rate 65.00% 63.48%
4. Member Contribution Rate (1.29%) (1.39%)
5. Employer Contribution Rate 63.71% 62.09%
The total actuarial required contribution rate in the June 30, 2017 valuation is 65.00%. The member
contribution rate (as a percentage of total payroll) is anticipated to be 1.29%, resulting in an employer
contribution for the fiscal year ending June 30, 2019 of 63.71%. This amount is above the minimum
employer contribution of 58.45%.
6
The following table shows the reconciliation of the Computed Employer Contribution Rate from
June 30, 2016 to June 30, 2017:
% of Payroll
Asset (Gain)/Loss 0.39%
Liability (Gain)/Loss (0.21%)
Assumption Changes 0.78%
Projected Payroll Lower than Expected 0.59%
Additional UAAL Contribution* (0.18%)
Normal Cost (0.62%)
Change in Effective Employee Contribution Rate 0.10%
Transition/Actuarial Software 0.32%
Other Experience 0.45%
* Impact, if any, of the Policy Minimum Employer Contribution Rate in excess of the Computed Employer Contribution Rate.
As the following table of computed employer contribution rates and actual contribution amounts shows,
the employer contribution has been at 100% of the full actuarial contribution in all years:

June 30, 2005 $21.9 $21.9 100.0%

June 30, 2006 22.4 22.4 100.0%
June 30, 2007 23.7 23.7 100.0%
June 30, 2008 26.2 26.2 100.0%
June 30, 2009 27.7 27.7 100.0%
June 30, 2010 27.0 27.0 100.0%

June 30, 2011 27.8 27.8 100.0%
June 30, 2012 26.3 26.3 100.0%
June 30, 2013 28.3 28.3 100.0%
June 30, 2014 29.3 29.3 100.0%
June 30, 2015 32.7 32.7 100.0%

June 30, 2016 33.6 33.6 100.0%
June 30, 2017 32.7 34.2 104.6%
The computed employer contribution rate, which is determined based on the snapshot of the System taken
on the valuation date, is anticipated to increase over the short term as the deferred investment experience is
recognized through the asset smoothing method. Anticipated increases in employee contributions, as a
percentage of total pay, will provide some offset to the increased UAAL payment. Future experience (both
investment and demographic) will also have an impact on the ultimate level of Judges contributions.
The next page contains a comprehensive summary of valuation results for the current and prior year.
Detailed exhibits deriving the results are in the following sections.
7
SUMMARY OF PRINCIPAL RESULTS

($ in millions)
Valuation Date June 30, 2017 June 30, 2016

Contribution for Fiscal Year Ending June 30, 2019 June 30, 2018 % Change
Computed Employer Contribution
Annual Amount (Estimated) $39.4 $37.8 4.2%
Percentage of Covered Payroll 63.71% 62.09% 2.6%
Benefit Payments $34.0 $33.0 3.0%
Membership
Number of
- Active Members 410 408 0.5%
- Retirees and Beneficiaries 559 540 3.5%
- Terminated Vested Members 25 26 (3.8%)
- Leave-of-Absence Members 1 0 0.0%
- Long Term Disability Members 0 1 (100.0%)
- Total 995 975 2.1%
- Reported Payroll $58.2 $57.4 1.4%
Assets
Market Value (MVA) $137.6 $132.1 4.2%
Actuarial Value (AVA) $151.8 $143.5 5.8%
Ratio - Actuarial Value to Market Value 110% 109%
Return on Market Value 3.53% 0.02%
Return on Actuarial Value 5.18% 5.89%
Actuarial Information
Actuarial Accrued Liability (AAL) $564.4 $547.6 3.1%
Unfunded Actuarial Accrued Liability (UAAL) $412.6 $404.2 2.1%
Funded Ratio 26.9% 26.2% 2.7%
Amortization Period 27 years 28 years
Ratio of AVA to Payroll 2.6 2.5
Ratio of AAL to Payroll 9.7 9.5
Normal Cost Rate 22.29% 21.00% 6.1%
UAAL Contribution Rate 42.71% 42.48% 0.5%
Total Contribution Rate 65.00% 63.48%
8
SECTION 2 SCOPE OF THE REPORT
This report presents the actuarial valuation results of the Missouri State Employees Retirement System
Judges as of June 30, 2017. This valuation was prepared at the request of the MOSERS Board.
Please pay particular attention to our actuarial certification letter, where the guidelines employed in the
preparation of this report are outlined. We also comment on the sources and reliability of both the data and
the actuarial assumptions upon which our findings are based. Those comments are the basis for our
certification that this report is complete and accurate to the best of our knowledge and belief.
A summary of the findings which result from this valuation is presented in the previous section. Section 3
describes the assets and investment experience of the System. Sections 4 and 5 describe how the obligations
of the System are to be met under the Systems funding policy. Section 6 contains projections of future
valuation results, assuming all actuarial assumptions are met. Section 7 includes some historical funding
information that was required by the Governmental Accounting Standards Board (GASB) in the past.
9
In many respects, an actuarial valuation can be thought of as an inventory process. The inventory is taken
as of the actuarial valuation date, which for this valuation is June 30, 2017. On that date, the assets available
for the payment of benefits are appraised. The assets are compared with the liabilities of the System, which
are generally in excess of assets. The actuarial process then leads to a method of determining the
contributions needed by members and the employer in the future to balance the System assets and liabilities.
Market Value of Assets
The current market value represents the "snapshot" or "cash-out" value of System assets as of the valuation
date. In addition, the market value of assets provides a basis for measuring investment performance from
time to time. Table 1 shows a summary of changes to both the market and the actuarial value assets for the
year beginning June 30, 2016 and ending June 30, 2017.
Actuarial Value of Assets
Neither the market value of assets, representing a "cash-out" value of System assets, nor the book values of
assets, representing the cost of investments, may be the best measure of the System's ongoing ability to
meet its obligations.
To arrive at a suitable value of assets for the actuarial valuation, a technique for determining the actuarial
value of assets is used which dampens swings in the market value while still indirectly recognizing market
values.
Table 2 shows the development of the actuarial value of assets (AVA) as of the valuation date.
10
TABLE 1
ASSET SUMMARY
Judges
Market Value Actuarial Value
1. Assets at June 30, 2016 132,056,351 143,468,860
2. Contributions
State Contributions 34,246,826 34,246,826
Employee Contributions 786,745 786,745
Member Purchases of Service Credit 0 0
Total 35,033,571 35,033,571
3. Investment Income, Net of Investment Expenses 4,680,131 7,461,312
4. Benefit Payments
Monthly Benefit Payments 33,979,837 33,979,837
Contribution Refunds 4,888 4,888
Total 33,984,725 33,984,725
5. Administrative and Misc. Expenses 150,387 150,387
6. Assets at June 30, 2017 137,634,941 151,828,631

(1) + (2) + (3) - (4) - (5)
7. Rate of Return, Net of Investment Expenses* 3.53% 5.18%
* Based on the approximation formula: I / [.5 x (A+B-I)], where

I = Investment Increment
A = Beginning of year asset value
B = End of year asset value
11
TABLE 2
DEVELOPMENT OF ACTUARIAL VALUE OF ASSETS
Valuation Date: June 30 2014 2015 2016 2017
A. Actuarial Value at Beginning of Year $ 111,140,339 $ 124,269,105 $ 134,349,908 $ 143,468,860
B. Market Value at End of Year 132,645,657 130,851,263 132,056,351 137,634,941
C. Market Value at Beginning of Year 111,203,538 132,645,657 130,851,263 132,056,351
D. Cash Flow
D1. Contributions 29,559,687 33,184,879 34,303,703 35,033,571
D2. Benefit payments (29,406,626) (31,245,906) (32,989,714) (33,984,725)
D3. Administrative expenses (105,693) (123,015) (136,983) (150,387)
D4. Net 47,368 1,815,958 1,177,006 898,459
E. Investment Income, Net of Investment Expenses

E1. Market total (B - C - D4) 21,394,751 (3,610,352) 28,082 4,680,131
E2. Assumed rate 8.00% 8.00% 8.00% 7.65%
E3. Amount for immediate recognition (A + .5 * D4) * E2 8,893,122 10,014,167 10,795,073 11,009,734
E4. Amount for phased-in recognition (E1 - E3) 12,501,629 (13,624,519) (10,766,991) (6,329,603)
F. Unrecognized Gains/(Losses) From Prior Years 63,199 8,376,552 (3,498,645) (11,412,509)
G. Phased-in Recognition of Investment Income (E4 + F) / 5* 4,188,276 (1,749,322) (2,853,127) (3,548,422)
H. End of Year Adjustment 0 0 0 0
I. Actuarial Value at End of Year

I1. Preliminary value (A + D4 + E3 + G + H) 124,269,105 134,349,908 143,468,860 151,828,631
I2. Upper corridor limit: 125% x B 165,807,071 163,564,079 165,070,439 172,043,676
I3. Lower corridor limit: 80% x B 106,116,526 104,681,010 105,645,081 110,107,953
I4. Corridor adjustment 0 0 0 0
I5. Funding value end of year: I1 + I4 124,269,105 134,349,908 143,468,860 151,828,631
J. Difference Between Market and Actuarial Values (B - I5) 8,376,552 (3,498,645) (11,412,509) (14,193,690)
K. Actuarial Value Rate of Return 11.77% 6.60% 5.89% 5.18%
L. Market Value Rate of Return 19.24% (2.70%) 0.02% 3.53%
M. Actuarial Value as a % of Market Value: I5 / B 94% 103% 109% 110%
N. Net Cash Flow as a % of Actuarial Value D4 / I5 0.0% 1.4% 0.8% 0.6%
* Phased-in over 3 years prior to 2016.
12
In the previous section, an analysis of Systems current assets was given as of June 30, 2017. In this section,
the discussion will focus on the commitments (future benefit payments) of the System, which are referred
to as its liabilities.
Table 3 contains an analysis of the actuarial present value of all future benefits (PVFB) for contributing
members, inactive members, retirees and their beneficiaries. The liabilities summarized in Table 3 include
the actuarial present value of all future benefits expected to be paid with respect to each member. For an
active member, this value includes measures of both benefits already earned and future benefits expected
to be earned. For all members, active and retired, the value extends over benefits earnable and payable for
the rest of their lives and, if an optional benefit is chosen, for the lives of their surviving spouses.
The actuarial assumptions used to determine liabilities are based on the results of the latest experience
study. These assumptions are outlined in Appendix C.
Table 4 illustrates the amortization schedule of the UAAL, given the Boards funding policy that amortizes
the UAAL over a closed 30-year period, beginning with the June 30, 2014 actuarial valuation, with
payments calculated as a level percentage of payroll.
All liabilities reflect the benefit provisions in place as of June 30, 2017, as amended by any legislation in
the 2017 Legislative Session.
Actuarial Accrued Liability
A fundamental principle in financing the liabilities of a retirement program is that the cost of its benefits
should be related to the period in which benefits are earned, rather than to the period of benefit distribution.
An actuarial cost method is a mathematical technique that allocates the present value of future benefits into
annual costs. In order to do this allocation, it is necessary for the funding method to "breakdown" the present
value of future benefits into two components:
(1) that which is attributable to the past and
(2) that which is attributable to the future.
Actuarial terminology calls the part attributable to the past the "past service liability" or the "actuarial
accrued liability." The portion allocated to the future is known as the present value of future normal costs,
with the specific piece of it allocated to the current year being called the "normal cost." Table 5 contains
the actuarial balance sheet for the System. The Entry Age Normal actuarial cost method is used to develop
the actuarial accrued liability. Table 6 shows the gain/(loss) analysis in total for the System.
13
TABLE 3
UNFUNDED ACTUARIAL ACCRUED LIABILITY
(1) (2) (3) = (1) - (2)

Present Value Actuarial
Actuarial of Future Normal Accrued
Present Value Cost Contributions Liabilities
Active Members
Service retirement benefits based on
service rendered before and likely
to be rendered after valuation date $246,659,691 $72,113,464 $174,546,227
Disability benefits likely to be paid to
present active members who become
totally and permanently disabled 1,366,910 1,233,476 133,434
Survivor benefits likely to be paid to
widows and children of present active
members who die before retiring 5,102,166 3,146,899 1,955,267
Separation benefits likely to be paid to
present active members 8,392,578 8,749,482 (356,904)
Active Member Totals $261,521,345 $85,243,321 $176,278,024

Members on Leave of Absence & LTD
valuation date 0
Terminated Vested Members
Retired Lives 377,099,534
Total Actuarial Accrued Liability $564,417,925

Actuarial Value of Assets 151,828,631
Unfunded Actuarial Accrued Liability $412,589,294

Funded Ratio 26.9%
14
TABLE 4
AMORTIZATION SCHEDULE FOR UAAL
($ in millions)
Unfunded Annual Contributions

Fiscal Projected Actuarial UAAL
Year Active Accrued Adjusted for Amortization UAAL BOY
Ending Member Liability Wage Inflation Years Dollars % of as % of Funded
June 30 Payroll (BOY) (BOY) Remaining ($M) Payroll Payroll Ratio*
2018 $60 $413 $413 28 $26 42.48 % 686.67 % 26.9 %

2019 62 417 405 27 26 42.71 673.91 27.8
2020 64 421 397 26 27 42.71 660.36 28.8
2021 66 424 388 25 28 42.71 646.22 29.9
2022 68 427 379 24 29 42.71 631.46 30.9
2023 70 429 370 23 30 42.71 616.06 31.9
2024 72 430 360 22 31 42.71 599.98 32.9
2025 74 431 350 21 32 42.71 583.20 34.0
2026 76 431 340 20 33 42.71 565.68 35.1
2027 78 429 329 19 33 42.71 547.41 36.2
2028 81 427 317 18 34 42.71 528.33 37.5
2029 83 423 305 17 36 42.71 508.42 38.8
2030 86 418 293 16 37 42.71 487.64 40.2
2031 88 411 280 15 38 42.71 465.95 41.8
2032 91 403 266 14 39 42.71 443.31 43.5
2033 94 393 252 13 40 42.71 419.69 45.4
2034 96 381 237 12 41 42.71 395.03 47.6
2035 99 367 222 11 42 42.71 369.30 50.0
2036 102 350 206 10 44 42.71 342.44 52.7
2037 105 331 189 9 45 42.71 314.41 55.7
2038 109 309 171 8 46 42.71 285.15 59.1
2039 112 285 153 7 48 42.71 254.62 62.9
2040 115 256 134 6 49 42.71 222.75 67.0
2041 119 225 114 5 51 42.71 189.49 71.5
2042 122 189 93 4 52 42.71 154.77 76.4
2043 126 149 71 3 54 42.71 118.54 81.7
2044 130 105 49 2 55 42.71 80.73 87.4
2045 133 55 25 1 57 42.71 41.26 93.6
2046 137 0 0 0 59 42.71 0.07 100.2
15
TABLE 5
ACTUARIAL BALANCE SHEET
ASSETS
Actuarial Value of Assets $ 151,828,631
Unfunded Actuarial Accrued Liability 412,589,294
Present Value of Future Normal Costs 85,243,321
Total Assets $ 649,661,246
LIABILITIES
Present Value of Future Benefits

Active members
Retirement $ 246,659,691
Withdrawal 8,392,578
Death 5,102,166
Disability 1,366,910
Total $ 261,521,345
Inactive members
Currently receiving benefits 377,099,534
Not currently receiving benefits 11,040,367
Total $ 388,139,901
Total Liabilities $ 649,661,246
16
TABLE 6
ANALYSIS OF GAIN/(LOSS)
(1) (2) (3) = (1) - (2)

Actuarial
Accrued Valuation
Liabilities Assets UAAL
(1) Value at start of year $ 547,621,617 $ 143,468,860 $ 404,152,757
(2) Total normal cost from last valuation 12,025,608 0 12,025,608
(3) Actual contributions (Employer and Member) 0 35,033,571 (35,033,571)
(4) Benefit payments (33,984,725) (33,984,725) 0
(5) Administrative expenses 0 (150,387) 150,387
(6) Interest on (1), (2), (3), (4) and (5) at 7.65% 41,537,050 11,009,101 30,527,949
(7) Expected value before changes $ 567,199,550 $ 155,376,420 $ 411,823,130
(8) Change from benefit changes 0 0 0
(9) Change in investment return assumption 7,905,466 0 7,905,466
(10) Transition/actuarial software (8,769,080) 0 (8,769,080)
(11) Expected value after changes: (7) + (8) + (9) + (10) $ 566,335,936 $ 155,376,420 $ 410,959,516
(12) Actual value at end of year 564,417,925 151,828,631 412,589,294
(13) Gain / (Loss) $ 1,918,011 $ (3,547,789) $ (1,629,778)
(14) Gain / (Loss) as percent of expected actuarial accrued

liabilities: $567,199,550 0.3% (0.6%) (0.3%)
17
The previous two sections were devoted to a discussion of the Systems assets and liabilities. Table 5
indicates that current assets fall short of meeting the present value of future benefits (total liability). This is
expected in all but a completely closed fund, where no further contributions are anticipated. In an active
system, there will almost always be a difference between the actuarial value of assets and total liabilities.
This deficiency has to be made up by future contributions and investment returns. An actuarial valuation
sets out a schedule of future contributions that will deal with this deficiency in an orderly fashion.
The method used to determine the incidence of the contributions in various years is called the actuarial cost
method. Under an actuarial cost method, the contributions required to meet the difference between current
assets and current liabilities are allocated each year between two elements: (1) the normal cost rate and (2)
the unfunded actuarial accrued liability contribution rate.
The term "fully funded" is often applied to a system in which contributions at the normal cost rate are
sufficient to pay for the benefits of existing employees as well as for those of new employees. More often
than not, systems are not fully funded, either because of past benefit improvements that have not been
completely funded or because of actuarial deficiencies that have occurred because experience has not been
as favorable as anticipated by the actuarial assumptions. Under these circumstances, an unfunded actuarial
accrued liability (UAAL) exists. Likewise, when the actuarial value of assets is greater than the actuarial
accrued liability, a surplus exists.
Description of Contribution Rate Components
The Entry Age Normal (EAN) actuarial cost method is used for the valuation. Under that method, the
normal cost for each year from entry age to assumed exit age is a constant percentage of the member's year
by year projected compensation. The portion of the present value of future benefits not provided by the
present value of future normal costs is the actuarial accrued liability. The unfunded actuarial accrued
liability/ (surplus) represents the difference between the actuarial accrued liability and the actuarial value
of assets as of the valuation date. The unfunded actuarial accrued liability is calculated each year and reflects
experience gains and losses.
In general, contributions are computed in accordance with a level percent-of-payroll funding objective. The
contribution rate based on the June 30, 2017 actuarial valuation will be used to determine the actuarial
required employer contribution rate for the plan year ending June 30, 2019. In this context, the term
"contribution rate" means the percentage, which is applied to a particular active member payroll to
determine the actual employer contribution amount (i.e., in dollars) for the group.
Contribution Rate Summary
In Table 7 the amortization payment related to the unfunded actuarial accrued liability, as of June 30, 2017,
is developed. Table 8 develops the actuarial required contribution rate for the System and the amount of
required State contributions. Table 9 shows a summary what the actuarial results would be under different
investment return assumptions.
The contribution rates shown in this report are based on the actuarial assumptions and cost methods
described in Appendix C.
18
TABLE 7
UAAL CONTRIBUTION RATE
(1) Total Contribution Rate as a Percent-of-Payroll for the Year after

the Valuation Date (as determined by the prior valuation)
(a) Total Normal Cost Rate Beginning of Year 21.00%
(b) UAAL Beginning of Year 42.48%
(c) Total Contribution Rate Beginning of Year* 63.48%
(2) UAAL on Valuation Date 412,589,294
(3) Expected Interest on UAAL at 7.50% 30,944,197
(4) Projected Payroll for the Year After the Valuation Date 60,085,205
(5) Total Normal Cost [ (1)(a) x (4) ] 12,617,893
(6) 1/2 Year Interest on Normal Cost at 7.50% 464,617
(7) Total Expected Contributions [ (1)(c) x (4) ] 38,142,088
(8) 1/2 Year Interest on Contributions at 7.50% 1,404,471
(9) Projected UAAL [ (2) + (3) + (5) + (6) - (7) - (8) ] 417,069,442
(10) Amortization Factor (27 years) 15.77829
(11) Projected Payroll for Second Year after Valuation Date 61,887,761
(12) UAAL Contribution Rate [ (9) / (10) / (11) ] 42.71%
*The Total Contribution Rate was the employer rate of 62.09% plus the weighted average member
rate of 1.39% of payroll.
19
TABLE 8
COMPUTED EMPLOYER CONTRIBUTION RATE
FOR THE FISCAL YEAR ENDING JUNE 30, 2019
ACTUARIAL VALUATION RESULTS AS OF JUNE 30, 2017
Percents of Payroll
Pre 1/1/2011 Post 1/1/2011 Weighted
Hires Hires Average
A. Normal Cost
(1) Service retirement benefits 19.71 % 17.05 % 18.84 %
(2) Termination benefits 2.38 1.46 2.08
(3) Survivor benefits 0.77 0.87 0.81
(4) Disability benefits 0.31 0.30 0.31
(5) Administrative expenses 0.25 0.25 0.25
(6) Total 23.42 19.93 22.29
B. Less Member Contributions 0.00 4.00 1.29
C. Employer Normal Cost [A(6) - B] 23.42 15.93 21.00
D. Unfunded Actuarial Accrued Liabilities (UAAL)

(27-year level percent-of-payroll amortization*) 42.71
E. TOTAL COMPUTED EMPLOYER CONTRIBUTION RATE [C. + D.] 63.71 %
F. POLICY MINIMUM EMPLOYER CONTRIBUTION RATE 58.45 %
G. ESTIMATED EMPLOYER CONTRIBUTION ($Millions)# $39.4
The amortization period is a 30-year closed period beginning with the June 30, 2014 valuation determining
the contribution rate for the fiscal year ending June 30, 2016 as described in the Funding Policy adopted by
the Board as of June 30, 2013. As of the June 30, 2017 valuation, 27 years remain starting with the fiscal
year ending June 30, 2019 and concluding with the fiscal year ending June 30, 2045.
At the September 18, 2014 meeting, the Board adopted a policy minimum contribution rate so that the
employer shall not fall below the fiscal 2015 rate (58.45% of payroll) until the plan is 80% funded.
* This corresponds to an amortization factor of 15.77829 applied to the unfunded actuarial accrued liability at the beginning of the
applicable fiscal year assuming payroll growth of 3% per year.
# Illustrative only. Estimated employer contribution amounts (shown in millions) are based on the greater of the Total Computed
Employer Contribution Rate and the Policy Minimum Contribution Rate shown and the valuation payroll projected two years
into the applicable fiscal year using the valuation assumption of 3% per year.
20
TABLE 9
COMPARISON OF VALUATION RESULTS UNDER ALTERNATE
INVESTMENT RETURN ASSUMPTIONS
Investment Return Assumption 6.50% 7.00% 7.50% 8.00% 8.50%
Contributions
Total Normal Cost 26.97% 24.50% 22.29% 20.32% 18.54%
Member Contributions 1.29% 1.29% 1.29% 1.29% 1.29%
Employer Normal Cost 25.68% 23.21% 21.00% 19.03% 17.25%
Unfunded Actuarial Accrued Liability 43.76% 43.25% 42.71% 42.14% 41.55%
Total Employer Contribution 69.44% 66.46% 63.71% 61.17% 58.80%

Total Employer Contribution ($ in millions) $43.0 $41.1 $39.4 $37.9 $36.4
Actuarial Value of Assets $151.8 $151.8 $151.8 $151.8 $151.8

Actuarial Accrued Liability $622.2 $592.2 $564.4 $538.8 $515.0
Funded Ratio 24.4% 25.6% 26.9% 28.2% 29.5%
Note: All other assumptions are unchanged for purposes of this sensitivity analysis.
21
The June 30, 2017 valuation results present the Systems financial status at a single point in time and
contribution requirements for a single fiscal year. Historical valuation results allow analysis of past trends,
but no insight into future trends. A projection model provides insight into the longer term trend of (1) the
projected Employer contributions; (2) the projected System funded status (ratio of actuarial assets over
liabilities); (3) net cash flow patterns; and (4) the unfunded actuarial accrued liability (actuarial accrued
liability minus actuarial assets). Projections can also be used to demonstrate how sensitive the valuation
results are to the key variables being modeled, but such sensitivities are not included in this report.
For Judges, projections are particularly important and insightful due to the multiple-tiered benefit structure.
The current valuation produces a normal cost and accrued liability based on the composition of active
members on the valuation date, June 30, 2017. Without a tiered structure, systems can assume that the
normal cost, as a percentage of payroll, will remain relatively level. However, since all new employees are
covered under a less costly benefit structure, until all new employees are covered under the post-2010
benefit structure, the normal cost percentage will continue to decrease. In addition, members hired after
2010 are the only group making employee contributions so projections allow for the projected payroll to be
segregated by tier so that total future contributions reflect an estimate of the amounts to be contributed by
employees.
The member data (active and in-pay status) is projected for each year in the future using current
assumptions. After the first year, a new-member profile is used to estimate the demographics of new
employees replacing members who are projected to terminate, retire, die or become disabled in future years.
For this modeling, the number of active members is assumed to remain level over the projection period.
These projections assume that all actuarial assumptions are met in all future years, including the investment
return assumption of 7.50%, and that the Employers makes contributions equal to the full amount of the
actuarially determined contribution, as calculated by the valuation, based on the Boards Funding Policy.
The projections are also based on the current plan provisions and assume that all new members joining after
June 30, 2017 will make employee contributions and be in the post-2010 benefit structure.
The projections do not predict the Systems financial condition or its ability to pay benefits in the future
and do not provide any guarantee of future financial soundness of the System nor do they, on their own,
indicate future funding requirements. Over time, a defined benefit plans total cost will depend on a number
of factors, including the amount of benefits paid, the number of people paid benefits, plan expenses and the
amount of earnings on assets invested to pay benefits. These amounts, and other variables, are uncertain
and unknowable at the time the projections were prepared. Because not all of the assumptions will unfold
exactly as expected, actual results will differ from the projections shown.
22
TABLE 10
30-YEAR PROJECTION OF ACTUARIAL VALUATION RESULTS
AS OF JUNE 30, 2017
Estimated
Covered Actuarial UAAL Actuarial Member Employer Dollar Amount
Valuation as of Payroll at Accrued Actuarial Value of Unfunded Funded Ratio Normal Cost Amortization Contribution Contribution Actuarial of Employer
June 30, Valuation Liability (AAL) Assets (AVA) AAL Using AVA Rate Payment Rate Rate Rate Contribution Rate Contribution*
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
2017 $60,085 $564,418 $151,829 $412,589 26.9% 22.29% 42.71% 65.00% 1.29% 63.71% $39,429
2018 61,447 582,221 161,853 420,368 27.8% 21.66% 43.40% 65.06% 1.56% 63.50% 40,189
2019 62,950 599,379 172,881 426,499 28.8% 21.16% 43.85% 65.01% 1.79% 63.22% 40,991
2020 64,519 615,628 183,980 431,647 29.9% 20.53% 44.24% 64.77% 2.02% 62.75% 41,700
2021 66,140 630,650 194,880 435,770 30.9% 20.09% 44.59% 64.68% 2.25% 62.43% 42,530
2022 67,844 644,787 205,695 439,092 31.9% 19.62% 44.89% 64.51% 2.46% 62.05% 43,360
2023 69,622 658,040 216,706 441,334 32.9% 19.24% 45.14% 64.38% 2.65% 61.73% 44,267
2024 71,370 670,185 227,726 442,459 34.0% 18.87% 45.42% 64.29% 2.83% 61.46% 45,180
2025 73,308 681,750 239,149 442,601 35.1% 18.56% 45.60% 64.16% 2.98% 61.18% 46,195
2026 75,273 692,379 250,916 441,463 36.2% 18.32% 45.77% 64.09% 3.11% 60.98% 47,279
2027 77,380 702,622 263,421 439,201 37.5% 17.82% 45.90% 63.72% 3.22% 60.50% 48,220
2028 79,402 711,153 276,144 435,009 38.8% 17.55% 46.04% 63.59% 3.34% 60.25% 49,275
2029 81,597 719,282 289,506 429,775 40.2% 17.22% 46.14% 63.36% 3.44% 59.92% 50,360
2030 83,850 726,566 303,810 422,756 41.8% 16.99% 46.23% 63.22% 3.54% 59.68% 51,543
2031 86,159 733,182 319,164 414,019 43.5% 16.87% 46.31% 63.18% 3.62% 59.56% 52,856
2032 88,512 739,608 336,062 403,545 45.4% 16.78% 46.41% 63.19% 3.68% 59.51% 54,254
2033 90,993 746,132 355,015 391,117 47.6% 16.71% 46.49% 63.20% 3.74% 59.46% 55,728
2034 93,538 752,510 376,168 376,341 50.0% 16.65% 46.54% 63.19% 3.79% 59.40% 57,229
2035 96,190 759,183 400,067 359,116 52.7% 16.64% 46.57% 63.21% 3.83% 59.38% 58,831
2036 98,928 766,610 427,266 339,344 55.7% 16.63% 46.61% 63.24% 3.87% 59.37% 60,495
2037 101,808 774,775 458,071 316,704 59.1% 16.64% 46.60% 63.24% 3.91% 59.33% 62,215
2038 104,749 783,835 492,919 290,916 62.9% 16.66% 46.60% 63.26% 3.93% 59.33% 64,012
2039 107,655 793,196 531,558 261,637 67.0% 16.68% 46.61% 63.29% 3.95% 59.34% 65,799
2040 110,776 802,793 574,082 228,711 71.5% 16.70% 46.53% 63.23% 3.96% 59.27% 67,627
2041 113,907 811,993 620,384 191,608 76.4% 16.73% 46.40% 63.13% 3.97% 59.16% 69,409
2042 117,026 820,660 670,460 150,201 81.7% 16.76% 46.20% 62.96% 3.98% 58.98% 71,092
2043 120,356 829,286 724,895 104,391 87.4% 16.80% 45.64% 62.44% 3.99% 58.45% 72,459
2044 123,746 837,741 784,006 53,735 93.6% 16.83% -0.64% 16.19% 3.99% 12.20% 15,550
2045 127,297 846,336 847,975 (1,639) 100.2% 16.86% -0.73% 16.13% 3.99% 12.14% 15,917
2046 131,033 855,406 857,123 (1,716) 100.2% 16.87% -0.66% 16.21% 4.00% 12.21% 16,479
* Amounts shown are contributions in the fiscal year ending two years after the valuation date.
23
TABLE 11
30-YEAR PROJECTION OF NET CASH FLOWS
AS OF JUNE 30, 2017
Net Cash
Valuation as of Total Benefit Administrative Net Market Value Flow as a
June 30, Contributions Payments Expenses Cash Flows of Assets (MVA) % of MVA
(1) (2) (3) (4) (5) (6) (7)
2017 $38,142 $36,360 $154 $1,628 $137,635 1.18%

2018 39,941 38,324 158 1,459 149,646 0.97%
2019 40,955 40,416 162 377 162,381 0.23%
2020 41,944 42,701 166 (923) 174,951 (0.53%)
2021 42,839 44,724 170 (2,055) 187,115 (1.10%)
2022 43,882 46,581 174 (2,874) 199,018 (1.44%)
2023 44,913 48,589 179 (3,855) 210,966 (1.83%)
2024 45,948 50,194 183 (4,429) 222,791 (1.99%)
2025 47,130 52,010 188 (5,069) 234,908 (2.16%)
2026 48,295 53,433 193 (5,330) 247,271 (2.16%)
2027 49,593 55,527 197 (6,132) 260,290 (2.36%)
2028 50,595 56,919 202 (6,526) 273,454 (2.39%)
2029 51,888 58,344 207 (6,664) 287,197 (2.32%)
2030 53,127 59,668 212 (6,753) 301,827 (2.24%)
2031 54,470 60,684 218 (6,432) 317,462 (2.03%)
2032 55,922 61,423 223 (5,724) 334,603 (1.71%)
2033 57,499 62,286 229 (5,016) 353,763 (1.42%)
2034 59,116 62,818 235 (3,936) 375,094 (1.05%)
2035 60,782 63,056 240 (2,514) 399,145 (0.63%)
2036 62,532 63,318 246 (1,032) 426,475 (0.24%)
2037 64,384 63,514 253 617 457,391 0.13%
2038 66,243 64,253 259 1,731 492,334 0.35%
2039 68,102 65,171 265 2,666 531,054 0.50%
2040 70,110 66,619 272 3,219 573,647 0.56%
2041 72,023 68,248 279 3,497 620,008 0.56%
2042 73,878 69,524 286 4,068 670,134 0.61%
2043 75,776 70,851 293 4,632 724,613 0.64%
2044 77,267 71,934 300 5,033 783,761 0.64%
2045 20,609 72,746 308 (52,445) 847,762 (6.19%)
2046 21,136 73,573 315 (52,753) 856,968 (6.16%)
Net Cash Flow

2%
Contributions less Benefit Payments and Expe nses as a
1%
0%
-1%
% of Market Value
-2%
-3%
-4%
-5%
-6%
-7%
24
HISTORICAL FUNDING AND OTHER INFORMATION

This section of the report provides a historical perspective on the Systems funding and contribution
practices, along with other information that may be of interest.
The information required for financial reporting by the System and participating employers is established
by the Governmental Accounting Standards Board (GASB). GASB 67 separates accounting and financial
reporting from funding requirements by creating disclosure and reporting requirements that are independent
of the basis used for funding the System. A separate report that contains all of the information and exhibits
of an actuarial nature that are necessary for the Systems financial reporting under GASB 67 will be issued
in the future.
GASB Statement No. 68 establishes standards for the measurement, recognition, and display of pension
expense and related liabilities. Annual pension cost is measured and disclosed on the accrual basis of
accounting. A separate report containing all of the pertinent information under GASB 68 reporting will
also be prepared in the future.
25
TABLE 12
SCHEDULE OF FUNDING PROGRESS
Unfunded
Actuarial Actuarial UAAL
Actuarial Accrued Accrued as a %
Actuarial Value of Liability Liability Funded Covered of Covered
Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Date (a) (b) (b - a) (a / b) (c) [(b - a) / c]
June 30, 2004 $39 $280 $241 14.0% $40 604.0%

June 30, 2005 44 292 248 15.1% 40.0 620.0%
June 30, 2006 52 309 257 16.7% 40.3 637.7%
June 30, 2007 62 327 265 18.9% 40.8 649.5%
June 30, 2008 73 355 282 20.6% 44.5 633.7%
June 30, 2009 81 369 288 22.0% 45.5 633.0%
June 30, 2010 89 382 293 23.3% 46.1 635.6%
June 30, 2011 98 393 295 25.0% 45.9 642.7%
June 30, 2012 102 413 311 24.8% 45.8 679.0%
June 30, 2013 111 435 324 25.5% 48.7 665.3%
June 30, 2014 124 462 338 28.0% 49.6 681.5%
June 30, 2015 134 483 349 27.8% 55.7 626.6%
June 30, 2016 143 548 404 26.2% 57.4 703.8%
June 30, 2017 152 564 413 26.9% 58.2 708.9%
Note: Information before 2017 was produced by the prior actuary. Numbers may not add due to rounding.
26
TABLE 13
HISTORICAL EMPLOYER CONTRIBUTIONS

June 30, 2005 $21.9 $21.9 100.0%

June 30, 2006 22.4 22.4 100.0%
June 30, 2007 23.7 23.7 100.0%
June 30, 2008 26.2 26.2 100.0%
June 30, 2009 27.7 27.7 100.0%
June 30, 2010 27.0 27.0 100.0%

June 30, 2011 27.8 27.8 100.0%
June 30, 2012 26.3 26.3 100.0%
June 30, 2013 28.3 28.3 100.0%
June 30, 2014 29.3 29.3 100.0%
June 30, 2015 32.7 32.7 100.0%

June 30, 2016 33.6 33.6 100.0%
June 30, 2017 32.7 34.2 104.6%
Note: Information before 2017 was produced by the prior actuary.
27
TABLE 14
HISTORICAL MEMBER STATISTICS
Valuation Active Members Retired Members

Date Payroll Average Salary Active/ Annual Benefits
June 30 Number $ Millions $ % Incr. Number Retired $ Millions % Incr.
2004 391 $40 $101,911 397 1.0 $18.0

2005 392 40 102,082 0.2 397 1.0 18.8 4.4
2006 394 40 102,209 0.1 398 1.0 19.4 3.2
2007 400 41 102,116 (0.1) 437 0.9 21.7 11.9
2008 401 45 111,079 8.8 440 0.9 22.5 3.7
2009 397 46 114,623 3.2 463 0.9 24.0 6.7
2010 402 46 114,708 0.1 465 0.9 24.5 2.1
2011 399 46 115,008 0.3 486 0.8 26.5 8.2
2012 398 46 115,165 0.1 488 0.8 27.0 1.9
2013 400 49 121,744 5.7 497 0.8 28.4 5.2
2014 405 50 122,439 0.6 511 0.8 29.8 4.9
2015 405 56 137,423 12.2 539 0.8 32.4 8.7
2016 408 57 140,738 2.4 540 0.8 33.2 2.5
2017 410 58 141,832 0.8 559 0.7 34.6 4.2
28
MEMBER DATA RECONCILIATION
Active Inactive Leave of Long-term Retirees and

Members Vested Absence Disability Beneficiaries Total
As of June 30, 2016 408 26 0 1 540 975
Changes in status:
a) Retirement (19) (4) 0 0 23 0
b) Death (1) 0 0 (1) (20) (22)
c) Leave of absence (1) 0 1 0 0 0
d) Vested termination (4) 4 0 0 0 0
e) Contribution refund 0 0 0 0 0 0
f) Beneficiary in receipt 0 0 0 0 16 16
g) Disability retirement 0 0 0 0 0 0
h) Return to active service 1 (1) 0 0 0 0
i) Expired benefit 0 0 0 0 0 0
j) Data adjustment (2) 0 0 0 0 (2)
Total changes in status (26) (1) 1 (1) 19 (8)
New entrants 28 0 0 0 0 28
Net Change 2 (1) 1 (1) 19 20
As of June 30, 2017 410 25 1 0 559 995
29
SUMMARY OF MEMBERSHIP DATA
A. ACTIVE MEMBERS June 30, 2017 June 30, 2016 % Change
1. Number of Active Members 410 408 0.5

2. Annualized Reported Salary 58,150,935 57,421,016 1.3
3. Accumulated Member Contributions $ 2,232,404 $ 1,595,883 39.9
4. Active Member Averages
(a) Age 56.6 56.7 (0.2)
(b) Service 11.8 12.0 (1.7)
(c) Compensation $ 141,832 $ 140,738 0.8
B. INACTIVE MEMBERS
1. Number of Inactive Vested Members 26 27 (3.7)

2. Inactive Vested Member Averages
(a) Age 53.8 N/A N/A
(b) Monthly benefit $ 2,830 N/A N/A
C. RETIREES, DISABLEDS, AND BENEFICIARIES
1. Number of Members
(a) Retirees 398 393 1.3
(b) Beneficiaries 161 147 9.5
(c) Total 559 540 3.5
2. Total Monthly Benefits
(a) Retired $ 2,394,264 $ 2,321,902 3.1
(b) Beneficiaries 491,355 443,918 10.7
(c) Total $ 2,885,619 $ 2,765,820 4.3
30
ACTIVE MEMBERS
AS OF JUNE 30, 2017
HIRED BEFORE JANUARY 1, 2011

39 & Under 1 0 1 136,178 0 136,178
40-44 5 2 7 705,152 272,580 977,732
45-49 15 9 24 2,081,704 1,285,865 3,367,569
50-54 34 9 43 4,862,308 1,282,865 6,145,173
55-59 42 22 64 5,983,928 3,191,510 9,175,438
60-64 63 18 81 9,045,604 2,661,937 11,707,541
65 & Up 45 15 60 6,530,576 2,168,731 8,699,307
Total 205 75 280 $ 29,345,450 $ 10,863,488 $ 40,208,938
Count
90
80
70
60
50
40
30
20
10
0
39 & Under 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Average Salary
$146,000
$144,000
$142,000
$140,000
$138,000
$136,000
$134,000
$132,000
$130,000
39 & Under 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
31
ACTIVE MEMBERS
AS OF JUNE 30, 2017
HIRED ON OR AFTER JANUARY 1, 2011

39 & Under 8 7 15 1,123,566 966,104 2,089,670
40-44 9 11 20 1,226,814 1,511,021 2,737,835
45-49 18 5 23 2,395,793 681,654 3,077,447
50-54 23 6 29 3,136,517 865,406 4,001,923
55-59 16 10 26 2,272,579 1,362,992 3,635,571
60-64 10 2 12 1,410,192 284,319 1,694,511
65 & Up 4 1 5 568,750 136,290 705,040
Total 88 42 130 $ 12,134,211 $ 5,807,786 $ 17,941,997
Average Salary
$142,000
$140,000
$138,000
$136,000
$134,000
$132,000
$130,000
39 & Under 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Count
35
30
25
20
15
10
0
39 & Under 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
32
ACTIVE MEMBERS
AS OF JUNE 30, 2017
TOTAL

39 & Under 9 7 16 $1,259,744 $966,104 $2,225,848
40-44 14 13 27 1,931,966 1,783,601 3,715,567
45-49 33 14 47 4,477,497 1,967,519 6,445,016
50-54 57 15 72 7,998,825 2,148,271 10,147,096
55-59 58 32 90 8,256,507 4,554,502 12,811,009
60-64 73 20 93 10,455,796 2,946,256 13,402,052
65 & Up 49 16 65 7,099,326 2,305,021 9,404,347
Total 293 117 410 $ 41,479,661 $ 16,671,274 $ 58,150,935
Average Salary
$146,000
$144,000
$142,000
$140,000
$138,000
$136,000
$134,000
$132,000
39 & Under 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Count
100
90
80
70
60
50
40
30
20
10
0
39 & Under 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
33
AGE AND SERVICE DISTRIBUTION

AS OF JUNE 30, 2017
Age 0-4 5-9 10-14 15-19 20-24 25-29 Over 29 Total

39 & Number 16 0 0 0 0 0 0 16
Under Total Salary $ 2,225,848 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 2,225,848
Average Sal. $ 139,116 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 139,116
40-44 Number 17 6 4 0 0 0 0 27
Total Salary $ 2,340,816 $ 829,591 $ 545,160 $ 0 $ 0 $ 0 $ 0 $ 3,715,567
Average Sal. $ 137,695 $ 138,265 $ 136,290 $ 0 $ 0 $ 0 $ 0 $ 137,614
45-49 Number 20 12 12 3 0 0 0 47
Total Salary $ 2,647,753 $ 1,717,472 $ 1,670,921 $ 408,870 $ 0 $ 0 $ 0 $ 6,445,016
Average Sal. $ 132,388 $ 143,123 $ 139,243 $ 136,290 $ 0 $ 0 $ 0 $ 137,128
50-54 Number 25 22 14 8 3 0 0 72
Total Salary $ 3,363,787 $ 3,146,141 $ 2,037,075 $ 1,191,223 $ 408,870 $ 0 $ 0 $ 10,147,096
Average Sal. $ 134,551 $ 143,006 $ 145,505 $ 148,903 $ 136,290 $ 0 $ 0 $ 140,932
55-59 Number 24 17 15 19 12 3 0 90
Total Salary $ 3,339,289 $ 2,441,341 $ 2,159,758 $ 2,708,287 $ 1,741,613 $ 420,721 $ 0 $ 12,811,009
Average Sal. $ 139,137 $ 143,608 $ 143,984 $ 142,541 $ 145,134 $ 140,240 $ 0 $ 142,345
60-64 Number 12 16 15 10 22 8 10 93
Total Salary $ 1,703,561 $ 2,305,021 $ 2,099,743 $ 1,410,304 $ 3,217,629 $ 1,158,548 $ 1,507,246 $ 13,402,052
Average Sal. $ 141,963 $ 144,064 $ 139,983 $ 141,030 $ 146,256 $ 144,819 $ 150,725 $ 144,108
65 & Number 1 5 16 22 12 4 5 65
Up Total Salary $ 136,290 $ 716,891 $ 2,281,543 $ 3,193,876 $ 1,739,261 $ 568,862 $ 767,624 $ 9,404,347
Average Sal. $ 136,290 $ 143,378 $ 142,596 $ 145,176 $ 144,938 $ 142,216 $ 153,525 $ 144,682
Total Number 115 78 76 62 49 15 15 410
Total Salary $ 15,757,344 $ 11,156,457 $ 10,794,200 $ 8,912,560 $ 7,107,373 $ 2,148,131 $ 2,274,870 $ 58,150,935
Average Sal. $ 137,020 $ 143,032 $ 142,029 $ 143,751 $ 145,048 $ 143,209 $ 151,658 $ 141,832
34
INACTIVE VESTED MEMBERS

AS OF JUNE 30, 2017
Count of Members* Monthly Deferred Benefits*

34 & Under 0 0 0 0 0 0
35-39 1 0 1 213 0 213
40-44 0 1 1 0 203 203
45-49 2 1 3 1,008 0 1,008
50-54 6 3 9 23,500 3,113 26,613
55-59 6 5 11 22,999 21,878 44,877
60-64 1 0 1 675 0 675
65 & Up 0 0 0 0 0 0
Total 16 10 26 $ 48,395 $ 25,194 $ 73,589
* There is 1 member currently on leave. Her count and estimated deferred monthly benefit are included.
Count
12
10
0
34 & Under 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
Average Benefit
$4,500
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
34 & Under 35-39 40-44 45-49 50-54 55-59 60-64 65 & Up
Age
35
RETIRED MEMBERS
AS OF JUNE 30, 2017

64 & Under 21 7 28 $ 111,891 $ 26,616 $ 138,507
65-69 91 12 103 524,227 65,970 590,197
70-74 92 16 108 563,873 99,759 663,632
75-79 69 8 77 419,257 49,639 468,896
80-84 38 0 38 258,608 0 258,608
85-89 27 1 28 174,479 6,512 180,991
90 & Over 15 1 16 89,040 4,393 93,433
Total 353 45 398 $ 2,141,375 $ 252,889 $ 2,394,264
Count
120
100
80
60
40
20
0
64 & Under 65-69 70-74 75-79 80-84 85-89 90 & Over
Age
Average Benefit
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
64 & Under 65-69 70-74 75-79 80-84 85-89 90 & Over
Age
36
BENEFICIARIES RECEIVING BENEFITS

AS OF JUNE 30, 2017

64 & Under 2 11 13 $ 7,848 $ 33,133 $ 40,981
65-69 1 12 13 2,725 35,936 38,661
70-74 2 22 24 6,004 62,029 68,033
75-79 0 18 18 0 53,949 53,949
80-84 0 22 22 0 75,041 75,041
85-89 0 39 39 0 115,976 115,976
90 & Over 0 32 32 0 98,714 98,714
Total 5 156 161 $ 16,577 $ 474,778 $ 491,355
Count
45
40
35
30
25
20
15
10
5
0
64 & Under 65-69 70-74 75-79 80-84 85-89 90 & Over
Age
Average Benefit
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
64 & Under 65-69 70-74 75-79 80-84 85-89 90 & Over
Age
37
RETIRED LIVES BENEFITS PAYABLE

TABULATED BY OPTION AND TYPE OF BENEFIT
AS OF JUNE 30, 2017
Judges Hired Before January 1, 2011
Total Monthly
Service Retirement
Life Annuity 4 $ 26,193
50% Joint and Survivor 392 2,366,137
Survivor Beneficiary 126 393,947
Total 522 2,786,277
Death-in-Service 35 97,408
Total 557 $ 2,883,685
Judges Hired On or After January 1, 2011
Total Monthly
Service Retirement
Life Annuity 1 $ 1,045
100% Joint and Survivor 1 889
Survivor Beneficiary 0 0
Total 2 1,934
Death-in-Service 0 0
Total 2 $ 1,934
38
APPENDIX B SUMMARY OF PLAN PROVISIONS
Age and Service Retirement
Eligibility for Unreduced Benefit (for Members Hired Before 1/1/2011)
(1) At least 62 with 12 years of creditable service.

Eligibility for Unreduced Benefit (for Members Hired On or After 1/1/2011)

Benefit Amount
50% of compensation
Early Retirement
Eligibility for Reduced Benefit (for Members Hired Before 1/1/2011)
Age 60
Benefit Amount
(1) If between 60 and 62, years of service divided by 15 multiplied by 50% of compensation.
(2) If at least 62, years of service divided by 12 and multiplied by 50% of compensation.
Eligibility for Reduced Benefit (for Members Hired On or After 1/1/2011)
Age 62
Benefit Amount
(1) If between 60 and 67, years of service divided by 20 multiplied by 50% of compensation.
(2) If at least 67, years of service divided by 12 and multiplied by 50% of compensation.
Compensation used for Benefit Determination
The annual salary at date of termination of the highest position held.
39
Vested Deferred Benefits
Benefits for employees who terminate prior to eligibility for an immediate benefit are
considered to be vested. Benefits commence once the individual qualifies for normal or early
retirement based on age and service.
Death Benefits
Death Prior to Retirement
50% of the benefit the member would have been eligible to receive based on service to age 70
is payable to an eligible spouse or minor children.
Death After Retirement
50% of the benefit the retired member was receiving at the date of death to an eligible surviving
spouse for members hired before January 1, 2011.
Disability Benefits
Disability benefits become payable at the time the member is eligible for normal retirement
(50% of salary for remainder of term) and are computed based on the service that would have
accrued if active employment had continued until normal retirement age, and members
compensation while an active employee.
Post-Retirement Benefit Adjustments
Benefits are increased to benefit recipients (including survivors) annually in accordance with
the following formulas:
Formula 1 Formula 2
Increase in CPI Benefit Increase Benefit Increase
5.00% or less 4.00% 80% of CPI increase
5.01% - 6.24% 80% of CPI increase 80% of CPI increase
6.25% or more 5.00% 5.00%
Members first hired prior to August 28, 1997 receive COLAs based on Formula 1 until an
aggregate increase of 65% is reached. At that point, subsequent COLAs based on Formula 2
are granted.
Members first hired on or after August 28, 1997 receive COLAs based solely on Formula 2.
Members hired prior to January 1, 2011 who work beyond the later of age 60 or the date when
first eligible for age and service retirement will have their monthly benefit increased upon
retirement. The percentage increase is equal to all COLAs for the years between (i) the later
of age 60 or the date when first eligible for age and service retirement and (ii) date of actual
retirement, not to exceed 65%.
40
Member Contributions
For members hired prior to 1/1/2011: None
For members hired on or after 1/1/2011: 4.00% of salary, with interest credited at the 52-
week Treasury bill rate.
41
APPENDIX C SUMMARY OF ACTUARIAL ASSUMPTIONS
ACTUARIAL METHODS
1. Calculation of Normal Cost and Actuarial Accrued Liability: The funding method used to
determine the normal cost and actuarial accrued liability was the Entry Age Actuarial Cost Method
described below.
Entry Age Actuarial Cost Method
Under the entry age normal cost method, the actuarial present value of each members projected
benefit is allocated on a level basis over the members compensation between the entry age of the
member and their assumed exit age. The portion of the actuarial present value allocated to the
valuation year is called the normal cost. The actuarial present value of benefits allocated to prior
years of service is called the actuarial accrued liability. The unfunded actuarial accrued liability
represents the difference between the actuarial accrued liability and the actuarial value of assets as
of the valuation date. The unfunded actuarial accrued liability is calculated each year and reflects
experience gains/losses.
2. Calculation of the Actuarial Value of Assets: Calculation of the Actuarial Value of Assets
(AVA): The AVA is based on an open five-year smoothing method and is determined by spreading
the difference between the actual investment income on market value and expected investment
income on actuarial value. The difference is added to the net unrecognized gains or losses from
previous years (difference between the beginning of year market value and beginning of year
actuarial value) and then divided by 5 to create a phased-in amount. This phased-in amount is then
added to the expected AVA at the valuation date (BOY AVA plus actual cash flow plus expected
investment income). The AVA is limited by a corridor and must be no less than 80% of MVA and
no greater than 125% of MVA.
42
ACTUARIAL ASSUMPTIONS
Economic Assumptions
1. Investment Return 7.50%, compounded annually, net of investment expenses.

(7.65% in June 30, 2016 valuation)
2. Inflation 2.50% per year
3. Salary Increases See items 3 under Demographic Assumptions
4. Payroll Growth 3.00% per year
5. Cost-of-Living Adjustment (COLA) 4.00% on a compounded basis when a minimum COLA of

4.00% is in effect. 2.00% on a compounded basis when no
minimum COLA is in effect.
6. Interest on Member Contributions 1.50% per year
Demographic Assumptions
1. Mortality The mortality assumption includes an appropriate level of

conservatism that reflects expected future mortality
improvement.
a. Post-retirement RP-2014 Healthy Annuitant mortality table, projected from

2006 to 2026 with Scale MP-2015 and scaled by 98%
b. Pre-retirement RP-2014 Employee mortality table, projected from 2006 to

2026 with Scale MP-2015
c. Long-term disability RP-2014 Disabled mortality table, projected from 2006 to

2026 with Scale MP-2015
43
2. Retirement Assumption
Hired Before 1/1/2011 Hired On or After 1/1/2011

Retirement Normal Retirement Early Retirement Retirement Normal Retirement
Age Male Female Male Female Age Male Female
55 20% 3%
56 16% 3%
57 13% 3%
58 9% 3%
59 5% 3%
60 8% 8%
61 5% 8%
62 8% 8% 6% 3% 62 30% 35%
63 10% 8% 6% 3% 63 20% 20%
64 12% 8% 6% 3% 64 15% 20%
65 12% 15% 6% 3% 65 30% 50%
66 20% 15% 6% 3% 66 25% 25%
67 20% 15% 6% 3% 67 20% 25%
68 30% 15% 6% 3% 68 20% 25%
69 30% 15% 6% 3% 69 30% 50%
70 100% 100% 100% 100% 70 100% 100%
3. Termination From Active Employment
Percent of Active Members Separating Pay Increase Assumptions for an

within the Next Year Individual Employee
Sample Death* Disability Merit & Base Increase
Ages Males Females Males Females Seniority (Economy) Next Year
25 0.03 % 0.01 % 0.01 % 0.01 % 2.20 % 3.00 % 5.20 %

30 0.03 0.02 0.02 0.01 2.20 3.00 5.20
35 0.04 0.03 0.03 0.02 1.48 3.00 4.48
40 0.05 0.04 0.04 0.03 0.76 3.00 3.76
45 0.07 0.05 0.05 0.04 0.60 3.00 3.60
50 0.13 0.09 0.08 0.07 0.54 3.00 3.54
55 0.24 0.16 0.13 0.12 0.44 3.00 3.44
60 0.42 0.23 0.20 0.19 0.00 3.00 3.00
65 0.74 0.33 0.20 0.19 0.00 3.00 3.00
70 1.23 0.55 0.20 0.19 0.00 3.00 3.00
* The pre-retirement mortality table used was the RP-2014 Employee mortality table, projected from 2006 to
2026 with Scale MP-2015.
44
Percent of Active Members

Separating within the Next Year
Service Withdrawal
Index Males Females
1 0.040 % 0.040 %
2 0.010 0.023
3 0.013 0.023
4 0.013 0.023
5 0.013 0.023
6-10 0.013 0.023
11-15 0.017 0.023
16+ 0.010 0.010
Other Assumptions
1. Form of Payment Hired before 1/1/2011 50% joint and survivor

Hired on or before 1/1/2011 Straight life annuity
2. Marital Status
a. Percent married 100% married
b. Spouses age Females assumed to be four years younger than

males.
3. Pay Increase Timing Beginning of the fiscal year.
4. Decrement Timing Decrements of all types are assumed to occur mid-

year.
5. Eligibility Testing Eligibility for benefits is determined based upon

the age nearest birthday and service nearest whole
year on the date the decrement is assumed to occur.
6. Benefit Service Exact fractional service is used to determine the

amount of the benefit payable.
7. Decrement Relativity Decrement rates are used directly from the

experience study, without adjustment for multiple
decrement table effects.
8. Decrement Operation Disability and withdrawal do not operate during

normal retirement eligibility.
9. Other Liability Adjustments None
45
10. Incidence of Contributions Contributions are assumed to be received

continuously throughout the year based upon the
computed percent of payroll shown in this report,
and the actual payroll payable at the time
contributions are made. New entrant normal cost
contributions are applied to the funding of new
entrant benefits.
11. Forfeitures No vested member are assumed to take a refund of

employee contributions.
12. Salary and Benefit Limits For purposes of the valuation, no limits were
applied to member compensation or benefits.
13. Commencement age for deferred Normal retirement age

vested benefit
Data Adjustments
Active and retired member data was reported as of May 31, 2017. It was brought forward to June 30, 2017
by adding one month of service for all active members and the June COLA for certain retired members.
Financial information continues to be reported as of June 30. This procedure was instituted to provide
sufficient time for the Board of Trustees to certify the appropriate contribution rate prior to the October 1
statutory deadline.
Active members reported with no annualized salary were assumed to receive the average active member
pay.
TECHNICAL VALUATION PROCEDURES
Other Valuation Procedures
Salary increases are assumed to apply to annual amounts.
Decrements are assumed to occur mid-year, except that immediate retirement is assumed for those who are at
or above the age at which retirement rates are 100%. Standard adjustments are made for multiple decrements.
No actuarial liability is included for participants who terminated without being vested prior to the valuation
date, except those due a refund of contributions.
46
APPENDIX D GLOSSARY OF TERMS
Actuarial Accrued Liability The difference between the actuarial present value of system
benefits and the actuarial value of future normal costs. Also
referred to as accrued liability or actuarial liability.
Actuarial Assumptions Estimates of future experience with respect to rates of mortality,

disability, turnover, retirement, rate or rates of investment income
and salary increases. Decrement assumptions (rates of mortality,
disability, turnover and retirement) are generally based on past
experience, often modified for projected changes in conditions.
Economic assumptions (salary increases and investment income)
consist of an underlying rate in an inflation-free environment plus
a provision for a long-term average rate of inflation.
Accrued Service Service credited under the system which was rendered before the
date of the actuarial valuation.
Actuarial Equivalent A single amount or series of amounts of equal actuarial value to

another single amount or series of amounts, computed on the basis
of appropriate assumptions.
Actuarial Cost Method A mathematical budgeting procedure for allocating the dollar
amount of the actuarial present value of retirement system benefit
between future normal cost and actuarial accrued liability.
Sometimes referred to as the actuarial funding method.
Experience Gain (Loss) The difference between actual experience and actuarial
assumptions anticipated experience during the period between
two actuarial valuation dates.
Actuarial Present Value The amount of funds currently required to provide a payment or
series of payments in the future. It is determined by discounting
future payments at predetermined rates of interest and by
probabilities of payment.
Amortization Paying off an interest-discounted amount with periodic payments

of interest and principal, as opposed to paying off with lump sum
payment.
Normal Cost The actuarial present value of retirement system benefits allocated
to the current year by the actuarial cost method.
Unfunded Actuarial Accrued Liability The difference between actuarial accrued liability and the
valuation assets. Sometimes referred to as unfunded
actuarial liability or unfunded accrued liability.
Most retirement systems have unfunded actuarial accrued

liability. They arise each time new benefits are added and
each time an actuarial loss is realized.
47

Missouri Pension Fund Annual Report

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Missouri Pension Fund Annual Report

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MISSOURI STATE EMPLOYEES

ACTUARIAL VALUATION REPORT

Contribution Rates for Fiscal Year Ending

Actuarial Certification Letter

Section 1 Board Summary....................................................................................................................... 1

Section 2 Scope of the Report................................................................................................................ 11

Section 3 System Assets ......................................................................................................................... 12

Section 4 System Liabilities ................................................................................................................... 15

Section 5 Employer Contributions ....................................................................................................... 22

Section 6 Projections .............................................................................................................................. 26

Section 7 Other Information ................................................................................................................. 29

Appendix A Membership Data ................................................................................................................ 33

Appendix B Demographic Experience .................................................................................................... 45

Appendix C Summary of Plan Provisions ............................................................................................... 52

Appendix D Summary of Actuarial Assumptions ................................................................................... 65

Appendix E Glossary of Terms ................................................................................................................ 72

Dear Members of the Board:

3906 Raynor Pkwy, Suite 106, Bellevue, NE 68123

June 30, 2017 June 30, 2016

Unfunded Actuarial Accrued Liability ($M) $4,280 $3,873

June 30, 2016 Valuation Results

7.65% 7.50% Difference

Normal Cost 8.11% 8.38% 0.27%

Benefit Provision Changes

MSEP 2011 active members are now eligible for:

Prior Provisions With SB 62* Difference

Normal Cost 8.38% 8.39% 0.01%

Experience for the Last Plan Year

1 Market Value ($M) Actuarial Value ($M)

Net Assets, June 30, 2016 $ 8,109.16 $ 8,878.06

Rate of Return on Assets

Market Value Actuarial Value Expected

smoothing method, the actuarial value of

Valuation Date (June 30)

Mar ket Value Actuarial Value

- Expected increase from amortization method 97.7

Unfunded Actuarial Accrued Liability, June 30, 2017 $4,279.9

6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017

Actuarial Required Contribution Rate

Actuarially Determined Actual Percent

June 30, 2005 $195.6 $195.6 100.0%

June 30, 2010 251.2 251.2 100.0%

June 30, 2015 329.8 329.8 100.0%

Computed Employer Contribution Rates

SUMMARY OF PRINCIPAL RESULTS

Valuation Date June 30, 2017 June 30, 2016

Market Value of Assets

Actuarial Value of Assets

Market Value Actuarial Value

1. Assets at June 30, 2016 8,109,161,214 8,878,057,191

3. Investment Income, Net of Investment Expenses 272,595,668 430,723,241

4. Benefit Payments and Transfers Out

5. Administrative and Misc. Expenses 8,759,341 8,759,341

6. Assets at June 30, 2017 7,945,358,298 8,872,381,848

7. Rate of Return, Net of Investment Expenses* 3.45% 4.97%

* Based on the approximation formula: I / [.5 x (A+B-I)], where

Valuation Date: June 30 2014 2015 2016 2017

A. Actuarial Value at Beginning of Year $ 8,096,436,929 $ 8,637,758,955 $ 8,792,485,658 $ 8,878,057,191

B. Market Value at End of Year 9,136,781,826 8,516,654,912 8,109,161,214 7,945,358,298

C. Market Value at Beginning of Year 7,993,837,570 9,136,781,826 8,516,654,912 8,109,161,214

E. Investment Income, Net of Investment Expenses

F. Unrecognized Gains/(Losses) From Prior Years (102,599,359) 499,022,871 (275,830,746) (768,895,977)

G. Phased-in Recognition of Investment Income (E4 + F) / 5* 249,511,436 (137,915,373) (192,223,994) (231,755,888)

H. End of Year Adjustment 0 0 0 0