TRSL adds nearly $1 billion in assets, DROP interest announced

October 6, 2017

Baton Rouge—The TRSL Board of Trustees received good news at its October meeting when results of the system’s annual valuation report were presented. According to the report, TRSL’s assets and funded status are up, and employer contributions will remain stable.

The system’s valuation assets increased by almost $1 billion over the previous fiscal year. Assets now stand at an all-time high of $19.2 billion, increasing the system’s funded status to 64.5%. The report also showed the employer contribution rate will hold steady at 26.5% (aggregate rate). Additionally, the unfunded accrued liability (UAL), which is debt owed by the state to TRSL, decreased by $466 million. TRSL’s actuarial rate of return for FY 2017 is 9.15%, exceeding its assumed rate of 7.70%. Over the long-term, TRSL’s 30-year average actuarial rate of return is 8.08%.

 “We are very pleased with the results of this valuation report,” said TRSL Director Dana L. Vicknair. “It shows that the work done over the past 25 years to protect the soundness of the retirement system is paying off.”

DROP interest: Fiscal Year 2017 interest for DROP accounts belonging to members who were eligible to participate in the program prior to January 1, 2004, is 8.65%. DROP accounts for members who were eligible to participate on or after January 1, 2004, earn interest at the liquid asset money market rate of return, which averaged 0.2214% in FY 2017.

The valuation report, which includes the recommended 8.65% DROP interest rate, must now be approved by the Public Retirement Systems’ Actuarial Committee (PRSAC). 
Fiscal Year 2017 Valuation Highlights
  • Valuation assets - $19.2 billion
  • Actuarial rate of return - 9.15%
  • Funded ratio - 64.5%
  • DROP interest (eligibility prior to Jan. 1, 2004) - 8.65%
  • DROP interest (eligibility on/after to Jan. 1, 2004) - 0.2214%
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