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Pension Modeling Application Overview

The Illinois Pension Modeling Application is an open-source web application that calculates the Actuarial Liability and Funded Ratio for the Illinois General Assembly Retirement System (GARS). Our goal is to provide an independent tool to both validate the Actuarial Liability calculation and to allow policy-makers to assess the impact of changing valuation assumptions. The application allows users to change key assumptions about the discount rate, benefit growth, inflation, mortality and retirement rates to assess their impact on the Actuarial Liability. We also calculate the Unfunded Accrued Actuarial Liability (UAAL) and provide a tool for assessing the impact of amortizing the UAAL.
To calculate the Actuarial Liability we estimate the present value of all benefits earned through June 2015. We follow the methodology described in the Annual Actuarial Valuation as-of June 30, 2014 for GARS. We forecast annual cash flows paid to current beneficiaries and future retirees who are active or inactive plan participants. We account for the impact of mortality, retirement rates and survivors and include forecasts of future salary and benefit increases. We do not forecast future hires, nor future contributions of active members, nor do we estimate the annual normal cost of the plan.