Longevity is a Mixed Blessing (for the Pension)

From time to time, the actuarial assumptions underlying the UC pension plan are re-examined by an outside consultant. For the July Regents meeting, the agenda includes officially changing various assumptions in the light of experience, the net of which raise the normal cost of the plan (by 1%) and the unfunded liability (by 3.7%).

The main factor raising costs is a finding that participants are living longer.

Full report at http://www.universityofcalifornia.edu/regents/regmeet/jul11/f4.pdf