HomeMy WebLinkAbout06-26-2015 Barasch1
Mejia, Anthony
From:Padilla, Wayne
Sent:Monday, June 29, 2015 5:23 PM
To:barascharc@aol.com
Subject:RE: Summary of the Most Current CalPERS Retirement Plans as of June 30, 2015
(Released to all Member Participants in October 2014)
Attachments:6-30-13 valuation report copies.pdf
Steve –The value quoted in the paper by Cynthia as the City’s unfunded pension liability is based on the last
CalPERS valuation report for the period ending 6/30/13. I have attached copies of the pertinent pages from
those reports which agree with the amount that was reported last week in the Tribune. The two amounts
taken together represent $115.6 million.
As I have stated before, the Investment Oversight Committee does not have jurisdiction over this subject area.
From: barascharc@aol.com [mailto:barascharc@aol.com]
Sent: Friday, June 26, 2015 10:08 AM
To: Padilla, Wayne
Subject: Summary of the Most Current CalPERS Retirement Plans as of June 30, 2015 (Released to all Member
Participants in October 2014)
Hi Wayne,
In reference to your comment regarding the City of SLO's "Underfunded Retirement Related Obligations) on page A4 of
Cynthia Lambert's June 25, 2015 article in the local Tribune Newspaper, may I suggest you review the most recent
retirement summaries from CalPERS which was provided by directly to ALL participant members as well as myself to you
and all members of the city council in an early November 2014 public meeting.
Perhaps it might be useful for creditability purposes to state the most recent retirement plan related information rather
than refer back to the June 30, 2012 data which was used yet again in your newspaper comments which referenced a
June 30, 2013 date.
Your lack of the use of the most current CalPERS published updates of the City of SLO's most current status does not
serve you nor other members of the city's Investment Oversight Committee well and furthermore suggests that the City of
San Luis Obispo might me "sugar coating" or "spinning" the actual data to suit the city and/or the staff's best interests.
I hope you might correct your public comments on this subject in the very near future.
Respectfully yours,
Stephen B. Barasch, AIA, NCARB, Ph.D
Public Member of the City of San Luis Obispo's
Investment Oversight Committee
cc. Cynthia Lambert, Local Reporter for the Tribune Newspaper
clambert@thetribunenews.com
barascharc@aol.com
CALPERS ACTUARIAL VALUATION - June 30, 2013
SAFETY PLAN OF THE CITY OF SAN LUIS OBISPO
CalPERS ID: 7574628515
Development of the Pun's Share of Pool's
Unfunded Accrue! Liability
It is the policy of the CalPERS to ensure equity within the risk pools by allocating the pool's unfunded
accrued liability in a manner that treats each employer fairly and that maintains benefit security for the
members of the System while minimizing substantial variations in employer contributions. Commencing with
the June 30, 2013 actuarial valuations and for purposes of allocating the pool's unfunded accrued liability to -
all the individual plans within the pool, an individual plan's total unfunded accrued liability (Preliminary Plan
UAL) on a specific valuation date will be set equal to the sum of the outstanding unamortized balances on
the valuation date for the following:
a) Side Fund
b) Plan's share of Pool UAL due to benefit changes (including golden handshakes) provided to the
members of that plan
c) Plan's share of the Pool UAL created before the valuation date for reasons other than benefit
changes
I.
, Plan's Accrued Liability
$
154,745,704
2.
Plan's Side Fund
24,618,639 .;
3.
Increase in Plan's AL for amendments in FY 2012 -13
0
4.
Pool's Accrued Liability
$
12,307,135,447
5.
Sum of Pool's Individual Plan Side Funds
461,094,417
6.
Increase in Pool's AL for amendments in FY 2012 -13
817,039
7.
Pre -2013 Pool's UAL
$
1,391,710,886
B.
Plan's Share of Pre -2013 Pool's UAL [(1)- (2)- (3)]/[(4 )-(5) -(6)] * (7)
$
15,288,799
9.
Pool's 2013 Investment & Asset (Gain) /Loss
1,285,245,280
10.
Pool's 2013 Other (Gain) /Loss
(15,159,479)
11.
Plan's Share of Pool's Asset (Gain) /Loss [(1)- (2)- (3)]/[(4)- (5) -(6)] * (9)
14,119,209
12.
Plan's Share of Pool's Other (Gain) /Loss [(1)]/[(4)] * (10)
(190,610)
13.
Plan's UAL as of 6/30/2013 [(2) +(8) +(11) +(12)]
$
53,836,037
Development of the Plan's Share of Pool's ' darlket
Value of Assets
I. Plan's Accrued Liability $ 154,745,704
2. Plan's UAL $ 53,836,037
3. Plan's Share of Pool's MVA (1) -(2) $ 100,909,667
Rate Plan belonging to the Safety Risk Pool Page 11
CALPERS ACTUARIAL VALUATION - June 30, 2013
MISCELLANEOUS PLAN OF THE CITY OF SAN LUIS OBISPO
CalPERS ID: 7574628515
The use of this report for any other purposes may be inappropriate. In particular, this report does not
contain information applicable to alternative benefit costs. The employer should contact their actuary before
disseminating any portion of this report for any reason that is not explicitly described above.
Actuarially Determined Employer Contributions
1. Contribution in Projected Dollars
a) Total Normal Cost
b) Employee Contribution'
c) Employer Normal Cost [(1a) — (lb)]
d) Unfunded Liability Contribution
e) Required Employer Contribution [(lc) + (1d)]
Projected Annual Payroll for Contribution Year
2. Contribution as a Percentage of Payroll
a) Total Normal Cost
b) Employee Contribution'
c) Employer Normal Cost [(2a) — (2b)]
d) Unfunded Liability Rate
e) Required Employer Rate [(2c) + (2d)]
Minimum Employer Contribution Rate
Annual Lump Sum Prepayment Option
Fiscal Year Fiscal Year
2014 -15 2015 -16
$ 3,920,804
$
3,792,898
1,685,008
1,618,297
2,235,796
2,174,601
3,294,273
3,600,62_8
$ 5,530,069
$
5,775,229
$ 21,062,601
$
20,407,279
18.615%
18.586%
8.000%
7.930%
10.615%
10.656%
15.640%
17.644%
26.255%
28.300%
26.255%
28.300%
$ 5,333,672
$
5,570,125
'For classic members this is the percentage specified in the Public Employees Retirement Law, net of any
reduction from the use of a modified formula or other factors. For PEPRA members the member contribution
rate is based on 50 percent of the normal cost. A development of PEPRA member contribution rates can be
found in Appendix D. Employee cost sharing is not shown in this report.
ZThe Minimum Employer Contribution Rate under PEPRA is the greater of the required employer rate or the
employer normal cost.
3Payment must be received by Ca1PERS before the first payroll reported to CalPERS of the new fiscal year
and after June 30. If there is contractual cost sharing or other change, this amount will change.
r
flnmw
1. Present Value of Projected Benefits
2. Entry Age Normal Accrued Liability
3. Market Value of Assets (MVA)
4. Unfunded Liability [(2) — (3)]
5. Funded Ratio [(3) / (2)]
Superfunded Status
June 30, 2012 June 30, 2013
$ 183,114,403 $ 188,893,171
157,222,583 163,764,694
$ _ 91,667,733 $ 101,989,051
$ 65,554,850 $ 61,775,643
58.3% 62.3%
No No
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