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HomeMy WebLinkAbout04/17/2018 - CC - Public Presentation - Barasch, Item 11CalPERS — Who We Are and How We Put Your Money to Work Presentation for San Luis Obispo Property & Business Owners' Association Barbara Ware, Senior Pension Actuary November 20, 2014 Specifics for San Luis Obispo, 'continued • Funded Status is an indicator of how "on track" your plan is 9 100% is the desired target. • Average, plan is- about 70% on 6/30/13 Miscellaneous is 62.3% • Safety is 65.2% A. CaIPERS 2 Specifics for San Luis Obispo, continued °miscellaneous plan" The table below shows projected employer contribution rates (before cost sharing) for the next five Fiscal Years, assuming CaIPERS earns 18 percent for fiscal year 2013-14 and 7.50 percent every fiscal year thereafter, and assuming that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur. CaIPERS New Rate Projected Future Employer Contribution Rates 2015-16 2016-17 2017-18 2018-19 2019-20 E 2020-21 28.300% 30.2% 31.4% 32.6% 33.8% 34.0% Contribution Rates: CaIPERS Specifics for San Luis Obispo, continued it safety plan It The table below shows projected employer contribution rates (before cost sharing) for the next five Fiscal Years, assuming CaMERS earnsIao% ,for fiva/ year 2013-14 and 7.50 percent every fiscal year thereafi!+er, and assuming that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur. Normal Cost %: UAL $ A, CAPERS New Rate Projected Future Emp yer Contribution Rates 2015-16 2016-17 2017-18 1 2018-19 2019-20 2020-21 20.230% 21.3% 21.3% 21.3% 21.3% 21.3% > 3 056,723 $ 3,402 670 3 766,621 $ 4,149,349 $ 4.551 _Fi51 t a 711 an 2C � CALPERS ACTUARIAL VALUATION - June 30, 2013 MISCELLANEOUS PLAN OF THE CITY OF SAN LUIS OBISPO CalPERS ID: 7574628515 - Volatility Ratios The actuarial calculations supplied in this communication are based on a number of assumptions about very long- term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and Investment retum) are exactly realized each year, there will be differences on a yearz..o-year basis. The year-to-year differences Between -actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise the employer's rates from one year to the next: Therefore, the' rates will inevitably fluctuate, especially due to the ups and downs of investment returns. Asset Volatility Ratio (AVR) Plans that have higher asset to payroll ratios produce more volatile employer rates due to investment return. For example, a plan with an asset to payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility, than a plan with an asset to payroll ratio of 4. Below we have shown your asset volatility ratio, a measure of the plan's current rate volatility. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. Uabil-ity Volatility Ratio (LVR) Plans that have higher liability to payroll ratios produce more volatile employer rates due to investment return and changes in liability. For example, a plan with a liability to payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability to payroll ratio of 4. The liability volatility ratio is also included in the table below. It should be noted that this ratio indicates a longer-term potential for contribution volatility and the asset volatility ratio, described above, will tend to move closer to this ratio as the plan matures. Rate Volatility 1. Market Value of Assets without Receivables 2. Payroll 3. Asset Volatility Ratio (AVR = 1. / 2.) 4. Accred Liability �W Al I cv� 4 SGo PrWAS 5. Liability Volatility Ratio (LVR = 4. / 2.) As of June 30, 2013 / 101,773,549 18,675,551 5.4 163,764,694 ✓ 8.8 Page 25 Amortization Schedules for the City of San Luis Obispo Pension Plans Miscellaneous Plan Benefit Method Assumption Assumption Special G/L Special G/L Special G/L change (10) change (11) change (16) change (18) (26) (27) (28) Gain[Loss (29) Gain/Loss (30) Total 711 Balance Payment Payment Payment Payment Payment Payment Payment Payment Payment Payment $ 61,775,643 $ 35,839 $ (26,906) $ 646,210 $ 85,360 $ 459,965 $ 74,747 $ 100,365 $ 1,501,408 $ (165,122) $ 2,711,86E $ 63,597,094 $ 36,914 $ (27,713) $ 665,596 $ 277,574 $ 473,764 $ 76,989 $ - 103,376 $ 1,687,773 $ (189,792) $ 3,104,48: $ 65,148,081 $ 38,022 $ (28,545) $ 685,564 $ 285,901 $ 487,977 $ 79,299 $ 106,477 $ 1,738,406 $ 207,525 $ 3,600,62-,. $ 66,300,977 $ 39,162 $ (29,401) $ 706,131 $ 294,478 $ 502,616 $ 81,678 $ 109,672 $ 1,790,558 427,502 $ 3,922,39E $ 67,206,724 $ 40,337 $ (30,283) $ 727,315 $ 303,313 $ 517,695 $ 84,128 $ 112,962 $ 1,844,275 660,490 $ 4,260,23: $ 67,830,126 $ 41,547 $ (31,191) $ 749,134 $ 312,412 $ 533,225 $ 86,652 $ 116,351 $ 1,899,603 907,073 $ 4,614,80; $ 68,132,652 $ 42,794 $ (32,127) $ 771,609 $ 321,784 $ 549,222 $ 89,252 $ 119,841 $ 1,956,591 1,167,856 $ 4,986182: $ 68,072,154 $ 44,077 $ (33,091) $ 794,757 $ 331,438 $ 565,699 $ 91,929 $ 123,436 $ 2,015,289 1,202,892 $ 5,136,42; $ 67,852,005 $ 45,400 $ (34,084) $ 818,599 $ 341,381 $ 582,670 $ 94,687 $ 127,139 $ 2,075,748'- 1,238,979 $ 5,290,52( $ 67,455,578 $ 46,762 $ (35,106) $ 843,157 $ 351,622 $ 600,150 $ 97,528 $ 130,954 $ 2,138,020 1,276,148 $ 5,449,23! $ 66,864,859 $ 48,165 $ (36,159) $ 868,452 $ 362,171 $ 618,154 $ 100,454 $ 134,882 $ 2,202,161 1,314,432 $ 5,612,71: $ 66,060,339 $ 49,610 $ (37,244) $ 894,506 $ 373,036 $ 636,699 $ 103,467 $ 138,929 $ 2,268,226 1,353,865 $ 5,781,09' $ 65,020,899 $ (38,362) $ 921,341 $ 384,227 $ 655,800 $ 106,571 $ 143,096 $ 2,336,273 1,394,481 $ 5,903,42E $ 63,776,662 $ 948,981 $ 395,754 $ 675,474 $ 109,768 $ 147,389 $ 2,406,361 1,436,316 $ 6,120,04U $ 62,214,515 $ 977,451 $ 407,627 $ 695,738 $ 113,062 $ 151,811 $ 2,478,552 1,479,405 $ 6,303,64` $ 60,344,846 $ 1,006,774 $ 419,856 $ 716,610 $ 116,453 $ 156,365 $ 2,552,908 1,523,787 $ 6,492,75L $ 58,138,878 $ 1,036,977 $ 432,451 $ 738,109 $ 119,947 $ 1611056 $ 2,629,495 1,569,501 $ 6,687,531 $ 55,565,508 $ 1,068,087 $ 445,425 $ 760,252 $ 123,545 $ 165,888 $ 2,708,380 1,616,586 $ 6,888,162 $ 52,591,121 $ 458,788 $ 783,060 $ 127,252 $ 170,865 $ 2,789,632 1,665,084 $ 5,994,67S $ 50,320,040 $ 472,551 $ 806,551 $ 131,069 $ 175,991 $ 2,873,321 1,715,036 $ 6,174,51S $ 47,692,166 $ 830,748 $ 135,001 $ 181,270 $ 2,959,520 1,766,487 $ 5,87-3,021 $ 45,179,794 $ 855,670 $ 139,051 $ 186,708 $ 3,048,306 1,819,482 $ 6,049,21E $ 42,296,316 $ 881,341 $ 143,223 $ 192,310 $ 3,139,755 1,874,066 $ 6,230,694 $ 39,008,419 $ 907,781 $ 147,520 $ 198,679 $ 3,233,948 1,930,288 $ 6,417,61! $ 35,280,125 $ 935,014 $ 151,945 $ 204,021 $ 3,330,966 1,988,197 $ 6,610,144 $ 31,072,591 $ 963,065 $ 156,504 $ 210,142 $ 3,430,895 2,047,843 $ 6,808,44E $ 26,343,8, 87 _. $ 991,957 $ 161,199 $ 216,446 $ 3,533,822 2,109,278 $ 7,012,703 $ 21,048,755 $ 1,021,715 $ 166,035 $ 222,940 $ 3,639,837 2,172,556 $ 7 223 081 $ 15,138,360 I71,016 229,628 $ 3,749,032 1,790,186 $ 5,939,862 $ 10,115,158 $ 236,517 $ 3,861,503 1,382,919 $ 5,480,938 $ 5,191,037 $ 3,977,348 949,604 $ 4,926,952 $ 471,992 489,046 $ 489,04E