June 27, 2022

These highlights are a summary of topics discussed and actions taken by the COAERS Board.

COAERS Actuarial Valuation Report

At the March meeting of the COAERS Board, Trustees approved the December 31, 2021 actuarial valuation results and adopted a new assumed rate of 6.75%, reduced from 7%. The COAERS actuarial consultant reported that the Fund showed strong investment returns for 2021 which exceeded the assumed rate of return. However, the results based on the reduced assumed rate increased the funding period from 32 years in 2020 to 33 years. The Plan’s funded ratio is 66.5% (70.8% on market value of assets), which is up from 65.3% in 2020. While the results show positive returns on investments over the past three years, which have increased the actuarial value of assets above expectations, the funding period for COAERS is still above the Board’s funding policy target.

Investment Update

The Board also approved updates to the Investment Policy Statement (IPS) and Investment Implementation Plan (IIP). During the meeting, Interim Chief Investment Officer David Stafford reviewed key changes proposed to the IPS and IIP, which require annual reviews of the strategic goals of the investment program, risk budget, the strategic asset allocation parameters, performance benchmarks of the Fund and the key policies that govern its management. Additionally, COAERS Executive Director Christopher Hanson presented reports on the updated administrative budget. To learn about upcoming Board and Committee meetings, visit www.coaers. org/calendar.

2021 Annual Comprehensive Financial Report

The 2021 Annual Comprehensive Financial Report for COAERS is now available. The annual report provides an overview of the retirement system including detailed information about the financial, investment and actuarial aspects of the System. The report reflects the combined efforts of COAERS Staff under the leadership of the Board of Trustees. For the latest copy of the report, visit www.coaers.org/resources/publications. If you have any questions regarding the report and how to access it, please contact us at news@coaers.org or call (512) 458-2551.