Since 1984, the Legislative Commission on Pensions and Retirement has retained a consulting actuarial firm for the purpose of preparing the regular official annual actuarial valuations of the statewide and major local public retirement plans as well as providing periodic consulting services to the Commission. The Commission currently retains the consulting actuarial firm of Milliman USA, formerly Milliman & Robertson, Inc., of Brookfield (suburban Milwaukee), Wisconsin. The Commission has retained Milliman USA since 1991 and the current contract is in force until June 30, 2002. Recent legislative and other developments require that the Commission’s contract with Milliman USA be amended.

The contract for the provision of actuarial services between the Legislative Commission on Pensions and Retirement and Milliman USA, formerly Milliman & Robertson, Inc., needs updating because of legislation enacted in 1999 and 2000, chiefly the merger of the local police and salaried firefighter consolidation accounts with the Public Employees Police and Fire Retirement Plan (PERA-P&F), and because of a recent name change by the actuarial firm.

The following summarizes the various revisions proposed for the actuarial services contract with Milliman USA and indicates the affected provisions of the contract:

1. Name Change to Milliman USA. The actuarial consulting firm of Milliman & Robertson, Inc. has changed its name to Milliman USA. Amendments to pages 1, 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 16, 17, 18, 19, 20, and 28.
2. Elimination of Quadrennial Projection Valuation Requirement. Laws 2000, Chapter 461, Article 1, Sections 2 and 4, made the projection valuations optional with the Department of Finance rather than mandatory for the Commission. Amendments to pages 3 and 4.
3. Elimination of Police and Fire Consolidation Account Valuation Exhibits. Laws 1999, Chapter 222, Article 4, merged the various local police and salaried firefighters consolidation accounts with the Public Employees Police and Fire Plan (PERA-P&F), thereby eliminating the need for the preparation of separate consolidation account actuarial exhibits. Amendment to page 4.
4. Clarification of the Names of Legislative Committees. Both the House of Representatives and the Senate have changed the names of the applicable committees since the initial execution of the actuarial contract. Amendment to page 8.
5. Elimination of Projection Valuation Compensation Provision. Amendment to page 13.
6. Revision of Actuarial Compensation Rates to Accommodate the PERA-P&F/Consolidation Account Merger. Amendments to pages 13 and 14.
7. Cross-References, Grammar, and Language Usage Updates. Amendments to pages 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, and 20.
8. Update of Actuarial Work Contents Items Specification. The contract sets forth the specific items and format for the contents of various actuarial reports. Some of these content items must be revised to match the current actuarial report contents and style. (Appendix A.) Amendments to pages 21, 22, and 24.

Although the contract revisions do not require formal Commission approval, since the Commission Chair is responsible for executing the contract and any amendments, it has been the past practice of the Commission staff to present proposed actuarial contract revisions to the Commission. The Commission may wish to review the proposed contract revisions, receive any related testimony, and comment on them for the benefit of the Commission Chair.