CHARLESTON, W.Va. – Department of Administration Cabinet Secretary Allan McVey announced today that the West Virginia Consolidated Public Retirement Board (CPRB) has been awarded the 2019 Public Pension Standards Award. This award, offered by the Public Pension Coordinating Council (PPCC), recognizes public retirement organizations that meet or exceed professional standards in plan funding and administration.
“I’m very excited for the Consolidated Public Retirement Board to receive this prestigious award for the first time,” said CPRB Executive Director Jeffrey Fleck. “West Virginia’s public pension plans are among the best-funded and administered plans in the country, and this award just validates the hard work and dedication of our wonderful employees. We take pride in our motto: ‘Serving those who serve West Virginia.’ We also thank Governor Jim Justice and the West Virginia Legislature for their support.”
To receive the Recognition Award for Funding, a retirement system must certify that it meets the requirements for funding adequacy, as defined as meeting one or more of the following criteria:
1. A funded ratio of 100% (as of June 30, 2018, PERS was 92.9% funded and TRS was 69.6% funded);
2. Contribution rates equal to or greater than 100% of the Actuarially Determined Contribution Rate (both PERS and TRS contribution rates currently meet this criterion); or
3. A plan has been approved by the governing body to achieve one or both of these criteria within five years.
To receive the Recognition Award for Administration, a retirement system must certify that it meets the requirements in five areas of assessment. Those areas are:
1. Comprehensive Benefit Program. The system must provide a comprehensive benefit program including service retirement benefits, in-service death benefits, disability benefits, vesting and provisions for granting a cost-of-living adjustment.
2. Actuarial. An actuarial valuation must be completed at least every two years using generally recognized and accepted actuarial principles and practices.
3. Audit. The system must obtain an unbiased opinion from an independent audit conducted in accordance with government auditing standards generally accepted in the United States.
4. Investments. The system must follow written investment policies and written fiduciary standards and the system must obtain an annual investment performance evaluation from an outside investment review entity.
5. Communications. Members must be provided a handbook or summary plan description, regular updates to the documents, and an annual benefit statement. Meetings of the governing board of the system must be conducted at least quarterly with adequate public notice.
The PPCC is a coalition of three national associations that represent retirement systems and administrators. Combined, these associations serve retirement systems that provide pension coverage for most of the nation’s employees of state and local government. They are:
• The National Association of State Retirement Administrators (NASRA)
• The National Council on Teacher Retirement (NCTR)
• The National Conference on Public Employee Retirement Systems (NCPERS)
The Public Pension Standards reflect minimum expectations for public retirement systems management and administration and serve as a benchmark by which all defined benefit public pension plans should be measured.
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