Friday, September 29, 2023

New administrative factors take effect in October 2020

From DRS

Administrative factors used by the Department of Retirement Systems to calculate benefit adjustments will be changing next October. The changes, proposed by the Office of the State Actuary, were recently adopted by DRS following a comment period and a public hearing. The new factors will take effect Oct. 1, 2020.

In addition to benefit adjustment calculations, the factors are used to determine benefit amounts for survivors and for members who retire early, the costs of purchasing service credit or an annuity, and other changes. The Actuary proposes administrative factor updates based on demographic experience studies and valuation reports, as well as any impacts of recently adopted legislation.

Although the new factors will not take effect until next October, DRS is publishing them now to help customers make informed decisions regarding retirement. To see both the updated and current factors, visit the Administrative Factors webpage.

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