§ 95890 Retirement System Actuarial Valuation

• •Every 4 years, the retirement system must check how much money it has and how much it owes.
• •After checking, they can change how much people pay in, how long they need to work, and how much money retirees get.
• •This is to make sure there’s enough money for everyone who retires.

Imagine a big piggy bank for all the teachers in a city. Every few years, someone counts how much money is in the piggy bank and how much will be needed for teachers who retire.

If there isn’t enough money in the piggy bank, they might ask teachers to put in a little more money each month or change when they can retire. If there’s extra money, maybe teachers can retire a little earlier or get more money each month when they retire.