Independent peer review finds 2025 pension valuation "accurate and reasonable"

A Milliman actuary told the Lehi Plan 2 Board that Milliman replicated the Office of State Actuary's (OSA) 2025 valuation and confirmed the contribution-rate calculations.

"We have completed that peer review...and we believe those calculations are accurate and reasonable," the Milliman actuary said during the board's July 22 meeting. Milliman reported independent checks of benefits, assumptions, asset smoothing and liability calculations and said the results were closely aligned with OSA's work.

A second Milliman presenter described the firm's independent processes: they compared source data from the Department of Retirement Systems (DRS) to the valuation, reviewed economic assumptions (including a 7.25% investment-return assumption), and ran separate asset and liability calculations. The presenter said Milliman saw only minor, expected differences and that the liability replication was an unusually close match.

Board members were given the validation as background before taking up contribution-rate decisions. Milliman emphasized the board's funding policy choices still determine the appropriate adopted rate and that staff analysis of funding at levels below the board policy will be available in October.

The presentation did not recommend immediate changes to the valuation; Milliman positioned its report as validation of OSA calculations for the board's further policy deliberations.