NPERS is happy to announce a dividend has been approved for eligible members of the State and County Cash Balance plans!
Each year an actuarial study is conducted to review the funded status of the Cash Balance plans. If the study finds adequate funding, the Public Employees Retirement Board (PERB) may issue a dividend, based on the recommendation of the actuary, to eligible Cash Balance participants. Per state statute and PERB policy, the plan must remain 100% actuarially funded after the dividend is issued.
The 2017 Cash Balance Actuarial Reports for the State and County plans were presented at the April 24 meeting of the Retirement Board. These reports found both Cash Balance plans sufficiently funded to allow the PERB to grant a dividend. After reviewing the actuarial reports and recommendations from the plan actuary, the PERB voted at the May 15 meeting to grant a 3.07% dividend for State Cash Balance plan members, and a 0.51% dividend for County Cash Balance plan members.
To be eligible for the dividend, a State or County plan member must have had an account balance on December 31, 2016. The amount of the dividend will be calculated using the members Cash Balance account balance as of that date. Dividends will be issued to eligible Cash Balance member accounts by September 1, 2017, or as soon as administratively possible.