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HomeMy WebLinkAboutTC Minutes 2015-02-18 (2)MISCELLANEOUS AND SAFETY PLANS H �-r Ca1PERS Actuarial Issues — 6/30/13 Valuation Preliminary Results J • ch 1 U C4 ,_, ci Y "r = U �� < Ifs acr)-�CA , N 4 '▪ = 0 OC MI ert +41 74 c) a •- r PmD =fixi. J -.C, �� ese 's LL) '3 0 ri •r. O -- (NI n V) O1/4 O N kr) 04 O c^, cz •••1— •-I N N Cl. N Q 0 O V) C) o � 0C ••tD uCO UUu at /W W'' c 3 .-1:: Or .4:: ao 73 !.:1 cO y O 4):4 ...... (47, ,4 c+,. = • • . a 4,--. cci ,4-._ . •o• a, . p: CCS U ci),.. ....... U • _"" 0 •— -ci a fl.. g.. i-.+ 3 O b!) ,s bA . o*r a) O(y� ;_ •c� 0Lt.•, Ov) cn •� (L1E.V �L1a.0 �C =C a) o ••I a Z cY X ( CALPERS CHANGES Contribution policy changes: No asset smoothing 5 -year ramp up in 6/30/13 valuation (first impact 2015/16 rates; full 73 U • • • Risk Pool changes u All Risk Pools combined into one Miscellaneous & one Safety 0 ct� S1. Ct t. O cz 71 ••• a � C O O N CC o N c bA Q � O O a) O U O >, R% 0 c U Assumption changes: • 0) U • • • LI 0 00 eJ SUMMARY IARY OF DEMOGRAPHIC INFORMATION - MISCELLANEOUS en O N In N O 0 N ON 6A M c,\1 vn ^, co d' M1.-• N O N .0 N O 0(�' c; 00 6A M 71' �-- 00 M en — — O N \O N O 0 O 00 00 Com? M (V '1f G` d' M NN0 0 N N O O ,:r: V4 N v7 N Actives ■ Counts ■ Average PERSable Wages ■ Total PERSable Wages (millions) Inactive Counts ■ Transferred ■ Separated ■ Receiving Payments I'nfunded 1'1'11 3 nfuldcd 1'1'11 z z ' +'+-' % ... . 0.1 cc .et itto L cc v L +r L C =" GO ▪ = C v R Q 0 00 nfunded Liability) o 06 INVES'1'N1ENT RETURN - M ISCELLANEO > e e o o o • N •r. r— = r- h fY ., r4 7 r. CI f. ^I Oy A v N O r. y O e. e y Y. r• ri February 18, 2015 0 v; E: Cn n O 1001 2014/2015 2014/2015 0 cl 00 (--; 4110 40 _oZ 0n�� C CO Y.i. r 5.. r. •�0 C _W OQZ O•NW W =• •5'r%E-rxQE.E. -aO a) >L)c4 ••••••• ■ ■ ■ — O O O ■ What Happened from 6/30/12 to 6/30/13: • 2014/15 Rate • Asset Method • Risk Pool Changes (Gains)/Losses • M, • 2015/16 Rate •n 00 r� L CONTRIBUTION RATES (ALL TIERS COMBINED)— MISC. Market Value Investment 0 C4) • • • June 30, 2013 `. o 06 June 30, 2014 "t3 0 tra O 0 o- June 30, 2015 - 2020 • • O a CQ vi a) O •15 2 a) cA c • as C7 a) O O N 0 U ct 4-1 O O '.0 s. cis as CC CL w t/) a) a a 0 • a) Z • • be New Members with PEPRA benefits. 0 • C4 • • ¢<< C.) C.)� rr fC CJLdCd 0 0 0 VAI U U cr r ILI cc - ri February 18, 2015 CONTRIBUTION RA'Z'ES (ALL TIERS COMBINED) - MISC. Go N.0 o C1 M C1 N N 0- O N O 114 00 7�1 in 7 O M 0 a O 0" o o 0, o in O in 0 M !V C'7 -- .o �o o a" V') O C• , es C`, (V M N f'1 O' ('1 O C�1 00 00 1— 1' • Normal Cost .v O N February 18, 2015 C0NTRIBuTioN RATES (ALL TIERS COMBINED) - MISC. • t` O O O O O O O o EA CA (N1 (V ("1 ('I O G1 00 00 r Normal Cost 00 SUMMARY OF DEMOGRAPHIC INFORMATION - SAFETY "-IM O N N 0 EA N r. O N M O M d0 n M C dg kr) c.' O rn .-• I 0 N d' O 000 n N O V) ^ kr) 00 00 N N O 0 N d' O .-. 0 C• 64 O N r - tr1 kr) Actives ■ Counts ■ Average PERSab1e Wages ■ Total PERSable Wages (millions) Inactive Counts ■ Transferred ■ Separated ■ Receiving Payments February 18, 2015 PIAN FUNDED STA-rus - SAFETY $ 12.100.000 February I8, 2015 CONTRIBUTION RATES (ALL TIERS COiNIBINED)- SAFETY 2014/2015 2014/2015 trio 0 0 0 4:1 CT O Lei 6 CA a) v) as C4 O u. c U u0 . N 5ii . .� sm.to7o ° .r C C CU O 2 r- A i : V V t — U . c,,, o 6 . G oZ tocza.. 0 0 teo 6 VI .2 -6. 0. WO>Ow� Z *alr =.5,c�.E'c <E - E- > V cu • • • • • • • ■ ■ ■ What Happened from 6/30/12 to 6/30/13: 0 0 0 0 d' 7' d' — O O a) 0 • ■ • Asset Method Change • Risk Pool Changes (Gain)/Losses 2015/16 Rate • • February 18, 2015 Market Value Investment Return: ■ -r O o r1 Tzt; p M 00 0 (1) • • • June 30, 2013 June 30, 2014 0 0 V 0 a 0.2% - 4.3% CU G W 0 7.1 V E") E a) C.. 0 w Av} a) U w New hire assumptions: a) C 0 CCS N a) o a) 0 y O 0 O C.) O .&) CO E U Q 11.1 � a) • w_ a •• 3 a az M N (1] o 2 2 O tu Z to .� U a a o • • C`1 CONTRIBUTION RATES (ALL TIERS COMBINED)- SAFETY M, 0 ('1 00 r Q Gs., 16.4% 16.1% 15.9% 15.7% 15, 23.5% 21.4° ,A. . ....a „ iii 7 \ ., 91/CI SUhE 0 0 o0 0 0 �o 0 0 0 o \ o. \ \ . \ \ \ O In O in 0 In 0 in 0 r, c^, el el M, 0 ('1 00 r Q Gs., 00 a0 00 No ere err 00 00 00 CC ~ Tr 00 v M M to S a 0 0 N V1 M N bR 649 4, (R Vi FA 4, Employers, approved June 25, 2012 N N tr eeN rr CV UC.) V•1 J;"" N (- • • Major Issues: C U C U r C.) 0 U Cr 0 c • I.. CZ Q ^' CZ v U C C C •C C. X � W • • • L/1 J roC >, CI 0 C.) U rr'. C) r U LLI C. C 0 "O U U U X ❑ ❑ Neel •..• 1n O C ter_ 4 li ,. E Ctj te " • .. . u "2 O •CC C ,.a Wee v U CC h GO S114, Q .. v Rfte 11:1 C 4 C f N C • O M t C v low c ti 4.r w ■ ■ ■ Net Pension Liability (UAL) kr) r~ Et? k 1 •— O M EA Fiduciary Net Position (MVA) M ^ Estimated Total Net Pension Liability - f�4 - Total Pension Liability (AAL) .f' M EA C Miscellaneous 1 CLS Qr , 1 C) , Cr in 0 PEPRA COST SHARING O - .-e pp =c •O CCS 0 U C4 U - a) P� 0 Co 0 c CA .c Ol. ice., cti U O cts U O ..2 O > U c N 0 .� ,� U O cC > 4? r. U Uo CA .. o' O O O O (_ Cl) - .c O O 0 13 'a 0 - N .� U t 5 2-..) r a) Q- cts ° = 0 o cc cc a3 c cz a, >1 o `^ oCA 4.0 a. O P y O . Er a' O <•- U E a 4-• `• 0 y c W CO ° Cl. C. U vs H ctt L W O Miscellaneous Plan: New Members Current Members NN Vr V O o ClGiN kr) N Employer Normal Cost Member Normal Cost Total Normal Cost • • • • LI February 18, 2015 PEPRA COST SHARING cz; a • New Members Current Members Employer Normal Cost 4-4 0 V Member Norma Total Normal Cost N 1:11 ,n c a O C oar Pension Obligation Bond (POB) ■ O CL crs crs ra) Lir V Iw/„i i� U U ca O Q • O } Council resolution to use portion of one time money ■ ■ ■ internal Service Fund vs. • Internal Service Fund • Restricted investments investment returns •L 0 O 0 000 0 a) 0 • • rC‘3 0 a) N 4.0 C4 a) E—� 0 PARS & PFM less restricted P ❑ ❑ ❑ 0 a) 0 O X00 ❑ ❑ February 18, 2015 TOWN'S RETIREE H cAL i i-iCARE PLAN 7/1/14 Projection 6.00% c as c c 0 1 as • e° EA 0 c n M 000 00 e,c. 03 cri r' 1000 --1 1 4.00% (NI a, .-. 00 S N N EA 1 O G1 N 1m.. 0 CT N O N 0 0 it - 71- V • N10.4 00 1 (N 00 N cc; cri ■ Valuation ■ Discount Rate ■ Actuarial Accrued Liability • Actives • Retirees • Total ■ Actuarial Value of Assets ■ Unfunded Liability ■ internal Service Fund ■ Unfunded AAL w/ Assets8 tZ February 18, 2015 TOWN'S RETIREE HEAL 'l ICARE PLAN June 30, 2014 Valuation required Pre -fund obligation? ■ ■ Reduces liability investment return Higher expected • • Valuation issues ■ Mortality should include anticipated future improvement Implicit rate subsidy • • r'I 00 r. 1 Towti's RETIREE HEAL,TF[CARE PLAN This page intentionally left blank. In 00 .264;. C DEFINITIONS 7. 7- t PVB - Present Value of all Projected Benefits: r= v CIJ L p J L J'...— t^i P" r v n ^ J . J .� •� rl` ^I U r-• > Ce) e— ;-. L .^.r J O , r— O .z1: 1) r *7:3— M cn —CC +-• 'B J C7'. r-. J .. C• i AJ J L J CZ ct cr ci, cL 4 .J c ^J :' �y !.^..', � p �. Cy CZ 1.) `V r• r f"V V �' J - y �.. :s y CZ .. > �"..• r :am U v :v v JCZ •. /.... 0 v ? J v' c�Co) r = ot > ; >— > c. .0 -C ., .� tom, '^_' R ^, O "' L..1 J Vi R -� G L G �� „j O O r O y ..1 4) O Z y o° C) E •4 C) •.r I1+ •..d .:*J U L ^ C L �. Cv > •� u 4.1 L e,.) CIO • Q • • U • • ■ ■ ■ DEFINITIONS N a 1 'nhnuk•d 1.3 I.) V) CZ n V • crs c c •. ,) Cv > Ci" �J c 01) U I.-. ▪ 0110. •A Cl.' 8 r, .s- L c — '-' $ '-� rte. C) • J 1 n 44 ) tt ; > •••• • CZ; i, 'B ▪ V = • • J ...., IkI I.) Ct> `• �' > L V> E c a) :-,- ^ r CA ,i — Z' '/: C' u C.) VI = VJ Q Q c y GL ,� > a C r1 J r•-• L r a MOci. 4,i C. • •CI) • • never have to put another MI • Cs CA1.PERS CHANGES Contribution policy changes: ■ No asset smoothing 5 -year ramp up T3 O • a) fl crs O (I) CA L. c °3 o >, 'E >, C. O C N o s.. c� s... O > c > '4-• O U 0 U N ' al FSO 0 Q — C..r.. CL = Cl G) to a e-- r al : � U U •- U U _C a: a CI) c U c Gam) U a N fl. 0 fa.`n . ^ S O o OC1)t Un L., $� o v) 0- — .... �n to citt Q23 ..c as 7-7)as P 3 0 . ,� • a a tiU +r eli) OAzw. ❑ 2 zQ w • • • • • ¢ • • • • ■ n February 18, 2015 CALPERS CHANGES Risk Pool changes ■ aneous & one Safety ..� omol o O 0 o "a CA IS mom./.,..; CZ 0 O_ c� O C .O >, ?. cz C.r_ U 0 ClC "1 _ C, Ci- p O aa O •C cc ai) p ... 0 cC +-� E V U C ti) C V A >, Cr- O — cn C .-. OW 1) QCZ CZ/ =.� CZ � ._ C U a) Q] •.: y P _c a) o - O o O ca •- o a. share will see contr. decreases V V C. Z -J F2 ❑ ❑ ❑ ❑ ❑ • • Risk Pool's normal cost payment • Continue payment as % of pay M s c a) v) 4° a Q a0 E 17!) • Q Q� ❑ ❑ Side fund method • CALPERS CHANGES bA H ■ Full impact in 2020/21 rates in 6/30/13 valuation impacts 2015/16 rates u❑❑Q❑❑•❑❑ • • • N f`1