HomeMy WebLinkAbout2014-03-11 Item 12 - Presentation (CalPERS) I I
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CITY OF C t1 VISTA
MISCE1,LANEOUSAND SAFETY PLANS
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CaIPERS Actuarial Issues 6/30/12 Valuation
Prelijil j,nay Results
Presented rated by John E. Bartel
Preywred by Bianca Lin
Tina Haugbr+
Bartel Associates, SLC
Agenda
Topic
CAPERS Upcomingissues
isce11 rye tr Plan:
Contribtition Rates & Projections 10
Safety P11111,:'
Plan Funded StatL,IS 21
Contribution ibut o Rates Projections
GASB 68, 29
1" PR , Cost Shming, 31,
1
bI
' A����ai�'ul'�wa��lei��yr�<reclgdwt� q1 of �-°311 Mvbaw^,�mdhvl�lag W-01-11,uijj%;rNinEsc sakiy 12doex
�.w
F° of M.w-fits
Ju�,30,2012
�,u�'kra•-��8
M PIV13 - Present Value of all Projected Benefits:
Discounted VILIC (a %,ra lation, date - 6/3,0/12), of all fititure expected benellit
jrmyments based on, v rOLI (actuarial) uni tioll
M Actuarial Liabilir
Discounted value ("at valuation, date), of ben,efilts carnedt1i (.,),ugl'leu valuation date
N,,,a:lu of lest service benel it
0 Portion of PV'13 "'earned" cit illeasureinent
M Current Normal Cost.-
0 Portion l '"°l= callocat (o, ( r- " r n "yur ing) current year
Value ofernplolvee and m loyet- current service bene'slt
Nlfauch 11, 2:014 1
�.w
i /� �.�uudsMlarr�
"1"arget I-lave nione ° in the bankto over Actuarial Liability (pestservice)
Unfunded, Liability Money abort of tar g t ate v akiation date
Excess Assets Surplus:
f 'lone over a.' d above tar, tat; ilutt �int uor tdm .
1 oesn t m eali, you're done contributing.
Assets cover Nvii,ol pig (PVB
If everythirig gees exactly like P "AS cal Wulat , 'OLI,1 l neNM, r hav to PLIt another
(employer orn.i loye diine in.
Lv
Mauch 1 1„ 2014
CALPERS UPCOMING ISSUES
C 11 E S actuarial staffr recommended & CaIPERS Board opted changes t
n'tribution policy, Fou.r reasons why:
0, Assetcorridor generates volatility with extreme events
, Stow funded statusprogress,
0 GASB 68 enCOUrages aster funding by requiring' a lower discount rate for
slower fUr din
U Changes , .- Direct rate stnoothingbase n
r -year ramp Irl
41 N'o asset sm.00thing,
• lr Utrrr a Gains/losses 25 Year amortization period
13 With 5 year ramp up rneans paid over 30 years
• Method & Assumption changes1 r amlorrtization period.
13 With 5 year ramp, up means paid over, 20 years
■ No cap on rate incil-eases each year
I;
CALVERS ISSUES
u
• CaIPERS actuarial t 1W" , ini. 1 1 & CaIPERS Board adopted asstimptioll
bras.
0, No changes on econoniic asSUMptions
0, F LIture niortality irnprovement with 0 years Projection
0 Earlier retirements for .police Safety and
Higher Future pay increases r Sal ty,
• Itnpa t on assumption changes using newly a,dopted contribUtion lig 20
—
years ,mt zat n with 5 yem.-s ramp up and 5 years ratilp down.
0 MI-ectRate Smoothing:
0 Included in 6/30/13 a ti (first irripact 2015/16rates)
13 Full imt in 20,19/20 ,rates.
0 Assumption, changes:
Included in 6/30/14 vaI atl (first inn t 2016 17 rates)
0 Fa11 inipa,et in 2020,/2 '1 rte
SUMNIARY OF, Di,,',MOCRAPUII(,' INFoRN'tA'I'ION - P" I,"
...............
'1994' L
_1- 00;3 I 2,O]t" 2 -2:
A,ctives
• COLInts 579 '797 591 605
• Average
• Age 4-3t 44 46 47
• it Service 1 10 8 12 12,
• PERSable Wagres $42,00 $56,000 $69,600 $68,40'O
• Total PERS,ablewLag 24.0 49. 1 44.9 45.2
Receiving Pay ineii,ts
m counts
• Service 2,69 519 5,25
• Disablity 41 53 58
Beneficiaries 42 59 67
Total 216 352 63, 1 650
N Averarge Annual Clity Provided, Benellit
Service $ 13,400 $28,500 $29 ' '100
0 Disability 7,300 71,400 6,70�O
0 Service Reltireti.i.ents, iti �last 5 ears 20200 34,200 34,900
....... . ...... .....Y
........... , ...............
Average City pr(Alided pensions are based on, City service &, City bmeth fon-nula, and are not
representative of benefits 'For long service unployees.
qm4utfill,2014 a
MEN1.13ERS INCIA)DE'D INVALUWTION - MISCLIA"ANEOUS
900 ................................................................... .... .......................................... ......................................................................
------- -------- .......
. ....................................... ............
700 ................ .......... .... ........... ........................... .................................
�600 ---------
500
400
300
20(0)
1,00
±9"(9)4 1 05 1996 1997 11cpcm 1999 2,000 200 2002, 2003 20,04 200,5 20M� 2007 200, 2009, 20,40, 2'101 t 2(1
5 7() 661 730, 81,15 7�P7 821 878 915 05 TPP 821 879 g,)15 891 762-� X689 65i 511)], CrM6
I 6f) 189 '226 2 7 -?90, 2 7�9 29�3 319 267 290 271) 293 '318 357 -,;7,6 �3 7$ 381 3 74 170
107 114 1,37 1,35 1138, INO 205 224 11,3� 1")8 180 205 2 33 265, Z6$ 704 289 20
Rece iv it] Pay ateni s 116 224 219 23 7' L)-r:,: 2=9 311(1, , 37:4 X77 :432 , 191 4 2 .157 473 344 .578 60.1 611 655
Majch 11, 2:014 6,
LAN FU'NDED STATUS - MISCELLANEOUS
--------------------------------------------------------------------------------------------------------------------------------------
J ae"1,vi lie M.J°J np rfs, J'mWDI;Bahl waJ"Jars era J
r�
wil iV
�� wtCcrario6 /�'
june all, 2011 Jane 30, 201:
381 ,600,000 Actuarial Liability 396,000,000
287,900,000 Actuarial Asset Value 299,700,000
(93,700,000) (Unfunded, Liability (96,3010,(")00),
i u ne 30 2111, 1 Jung 30 2 11.2
255,300,000 Mark t asset Value ` 5 ,0 ,000
( 1,216,300,00,0) (Unfunded, Liability) (1,46,000,000),
1 11
..........
2;2�.5
AL, 'a
-5,7%Unmodtfiad
5(Y�16
4,K W,,. -- 4, 94
FT-6 996 19,97 1998 191)9 2000 20I)l 2002 2o,(].'i 20(14 2,005 2006 2.007 2008 20,09 2010 NM 21M2 2013 2M4
.........................
..........................
........................ .............
4- '21 1 1 7
A!�7,A` 9,41"60 ]13 J9,(,1;5,4A" 9,6'N 1 1,7",112 4'N 5,3"N� �2,894_3,7"Nr, 7,61%, 7$%. 7,811,4 7;31N�� 7,711N� �5 5,91N) 6,944) 5,5 Q,�i 6,69�
% 11,2 1�1, 7,50,v��'
M VA I s - .(p 111%1 1)34!� 12 �0%1 -72% 6(0,til 12 'kt,,,A I 04�/,19; WN'.5 .2"4 o 1,'1
Abave aSSUIlleS Cantribulk ns I
.) , payments, etc. received evenly throtighout ye� r.
June 30, 2013 return of 13.2% I�om CalPERS 6/30/13
1iis11, 2A)Y4 8,
FUN'tn'm RA4710 - MISCELLANEOUS
----------------------------------------------------------------------------------------------------------------------------------------------------------------
140'No — ------------------------------------
12 0'�,4m -
--
6 1'
201'
M. Z
I"-IV v '�A 2111 E Y 1 2 w", 7 4u
.`�gw aur relu rods
OF"ndoil Ralio-,/1VA (),I'%, �A 02`,,� 109"44 41,�"M'I I��V�I 4 1"; a 4 "1.................III................ FA)"i'., 77 '7 6
a 1 1 5� 4 9,�i, ""'Em""'i S,I, 70,N, 7"1 9 1 NI", 4""
IL, 0 8i I'M
16/30/13 & 6�/30/14 funded status esi imated
AVA is being set equal, w MVA and a &piratc ,AVA will 111m be tised in fluturc years,
Mai d t 11,20,14 91
CON'll.RIBU]" CY Rik"FE - MISCELLANEOUS
I
211.0* Y
1 Y N° o
d 1 $ `Ql ^� '� r ti k w ^,�; a
�� � e �u�,odrp�l V u g, ,t a �pr t,J�"x. �Jf 1 tofu 1�,�o°N�i p �1 N 1P VI„ J 1 p,uo 14 N I�
fi:1�.a�naw�'��'Nw�.�!C..�.,0�4: drJ��. C��q+� 4 pw �� '�'.�� uw ,Nr 1����N N�. p. v, N�' �:�t mrw �-ii 12 �',r,� ��; ��' �a..11 r� ,tii ,��
"" �1�C:✓t��1.1�M�.'a xYYf��E,N�dI(�= .N � Y�d'N�'.ar CA f"wrn(y, f�Y d� aa �.�.�,��rA L��d�'�n� �4.r.��''m ,�V.N l.`�i°�r ��9 �'S��s NNS.ro"�/'++,,' � �N'op' p�&1"✓Na 14��wu,u� °��_.'S"1 ix e��.."�'�'n �5 �"EYFw ��" ��fi�
a
11aich 11, 211114 10
0 JUnc 30, 2012
June 1 2014 - 2017 Poor I n trend l ter m. 0.20/4') - 4.3%
I-Apectedfilvestincill Ret: 7.50%
Good n tinent Reftlfll 1:0. % - 1.5. 1 %
■
No Other: Gains/Losses , Method/Assumption Changes, Benefit lriprovemnt
■I Excludes Em loyet Paid we° viii er Montt-i but;ion (lr P
• CoritributIon prqjections, InClUdes impact of year, ha in, 'or° 2011. assr mption
changes
• Tier-22( 61 A E F e tive /1 1 11. 1
• New Iiire assu mtiort
• SSLI, 7 oll"2013 rihires, will be Classic "I" r 2 ^'ler be.j' 2%( 60)
K: it 0% will 'New Meni ei tli 1" I"TRA. bencrits,
• Assumes lassic Members will clect-ease fiom 50 to 0% oftiew h,ires, over 20
ea,r .
Based on (AVERS CAPR-
1 ) Mauch 11, 2:014 11
CON" I ] F ION -JEC IONS - ,MAiSCELLANE.OLIS
In, additiabove assurnptions, contr-ibution prqjectionsalso include new
Contribution P'olicy Changes
Changes will take placeJune , 1, affecting 2015/16 contribution 17ales
CONTRIM]"'FION PRO.JECIIONS - ,MlS,CfAA,ANEOUS
5 0,
4 1 5"'o
4,0 0% .............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
lfl 3 7,W,o
pf 3
J
""qr d ft,
3V% .......... ........... li��Amow' '1110, .............................
T........................
oo
60"PI"411, 2 S',
27 3
111[ 26 094
V
22,9�/o
21/22 rate before TEPR A projimiA to be 3 L
1 ........................ ............. ......................... .......................... ......................... .......................... ........................ .......................... ........................
,13/14 14/15 15/16 16/17 17/18 118/1,9 19/210 20/2 1 21/22
PE PRA and Direct Rate Stnooth iiLiL, Before 1,1[E
.........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
CON" IM] T ell ROJEC ,F IONS - ,MAlSCE'L ,.Atl^1EOU
t I+ r Contribution Rate if Market Value of Assets wem used
tual' l Ma'• t
2014/15 2
N Plan Assets AVA MVA
■ Amortization bases: 15.0% 23.8%
0 Tota,l ContilbUtion Rade 26.2% 35.E '
N Aniortization period 23 yearsyears,
CO�N'-!'R�l�Bt,."']�'.ION .PRO.I�EC'I"]�ONS WITut APPROVED M.owr,xt,irry
AND, 01'11'Eii Asst,�'NIPTION CHANGES - M ISCEIA-AM"OuS
In, addition con'tributi.on, projections a,lso include new aSSLIMPti011 changes
0 Changes, will take place in June 30, 2,014 valuation firstaffecting2016/17
con.trilbuaion rates
Mamech 11, 2:014 15
Ol WITut APPROVED MORTALITY
AND, OTHEit AsstIMPTION CHANGES - M ISCEL'IANEOus"
---------------
........... .............................................................................................................................................................................................................................................................................. ...............
I T2
,4 5 6%6
41.M46,
40'1�io
....................................,........................
3 4 7
3W,i)
3 01 8 9,4
........17 4 2&6%
29AP
2 'b
------------ ------------- ----------- -------------1�-----------7-----------I
13/14 14/15 15/16 1,6/17 17/18 18/1.9 19/20 20/2 1 21/22
March H, 201 4 16
SUNINLN11YOF D,EN'IO(:,,R.A.PIIIC INFORNIATSON - SAFE"UN,
'2012,
'19,94 041, 1
Actives
M COU to 256 301 344 333
�m Average
* Age 37 38 41 42
* City Service I 1 10 12 1, 3
PERSable Wages $52,300 $68,700 $9920,0
mTotal, 14.6 22.8 37.2 36. 1
Receiviing Payments
0 COUnts
• Service 91 137 136
• Disablity 97 116 119
• Beneficiaries 23 27 27
Total 1, 34 211 28,0 282
m Average Annuc,-11 City Provided 13enefit,4
• Service $3300 $53200 $5 7,41200,
• Disabilit ,300 3 7',900 39"90,0
• Service Relfi-einentin, last 5 years 8,-') 74, 00 69,900
m, -
City ovid ted pe-nsioiis are based on City service City benefit forniuka, and air n ),
Avege pi
represe n tall i ve, of beriefits For lorig service etInployees.
qmmth 11, 2014 17
MEMBERS INCLUDED IN 'VAIA.JA'l`1(')NN - 11"
400 - ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
. ..............................................................................
350
300
250 ...........
200 - ------
150 . ........
I(0)o
5,0
119% 1995 1,9196 1997 1,999 20,010 2001 2002 2003 21104 2005 211 HS 20 2,(),09 2009 2.010 2011
jj 20 20 1,
2.,56 256 252 2i5 248 254', 274 28,4 1.00 "101 31.1 '311 335 182 X70 15 1 5(i, 1,55 31,.1' '3;;
2 23 mmmmmm -"t
21 311 37 37 58 61 59 6 6,4 (59 66 68 67 6") 67
..........—.-..................... E- l",1-111-�� -��.1111111-1-1111"I'll"I'll I'll-.1111-111111 11-1�111-111-11111-11111-111111.11-1m-11111111-1111111111�1111111.—I.-
Iti 20 27 28 '3:) ^2; -'?�
3 X 21 ll 31 3;1 7$ 1, 4:) 39 43 K
Nkc-ceiving PaNatvflls I 13 34 1 144 118 158
t'8 1191 189 193 20) 1,1, 220 1 1 248, 2(12 27() 276
Nfaudt 11, 2014 19
PPI.i',%N FLUADED STAIVIUS - SAFETY
Vuluc cof MmAlm Ilm-Sent V4 lur tot lk,nerpts
ju"c 30,2011 3 u ne 311 2'11
,fun c 30,2011 Junc 30.,_2012
319,800,000 Actuarial Liability 33,7,400,000
273,,80(-,),000 Actuaria,I Asset Valli 289,300,000
(46,000,000) (IJnfunded-Liability) (48, 100,000),
J une 30 jung 30,,,,2(')12,
2011
319,800,000 Actuarial Liability S 337,400,000
244,600,000 Market Asset Value 242,500,(,)()()
(75,200,000) (Unfunded. Liability) (94,900,000),
Nfaudt 11, 2014 19
Ac"I"UARIAL INN/F.S"I'ME"IN'r Ri4.-,rtjRN' - SAFFI"),,
L-L..............................................
wry.5
A
"A,
1 5.4„K)( ,6 -
I 1996 6 19,97 1998 9 21A)f W 2 0 0 2 20,03 2004 2,005 2.006 - 20,09 20,10 24M 21M2 2013 ,2M4
q..........
.4�,ve 1 0 t, 71%
Mm 1,3.5 9”,1;5,0�" 'e 13, 12 51'1 5,5`N� �2 79,� 3,411Nr, 7,69%1 7,9%. H 'Nwi q,I'N�� 7,8`N5 �5 6A,6 �6,1 IN) 7,044) 6A%, 6
I I It `�—, —... --- —M
L4
ill�,�Nk�p�34!� N2 ��,�,-Illt,"I,5� -72:% I 'A I w,--s .2"4 o I. VI", rl,Ll -I
71�11�11 �6(slki 12 �V'�J-� I tP�,,
Abave aSSUI)leS contdbttfi(� ns
.) , payments, etc. received evenly throtighout year.
June 30, 2013 return; of 13,2% I�om CaIPERS 6/30/13 CAFR-
Maich 11, 2A)H 20
"FLIA'Di'm RA�7110 SAVEl"I"
. ................................................................
11 20'%�
409,,(',
2(Wio
L Zi,Lr o
ZI UIQ
........... 77'��
—7-7774
JuFt"ndq"]
IWFundoA Rot-�,NIVAJ w I 14:u+v,4 141N' 1291,14 1 38"I'll, 14 31IR"I'll42`%,, 9 5 3 WN9". 901"', AWN 4, 101"M" 9M4, 6 k%
6/3W 13 ,& 6/30/14 funded matus eslit'nated
,AVA is being set equal to MVA and a separate AVA will not be used in fluty re years,
Nfaichi 11, 2('114 21
CON 11111)"I"LSV I XIT - SA.FE"" "
Mo
2 S.A00i,
2RO16
N M016 Jm
,,,,,
)_ 02o� 03AW (r,IA)h (Yq�)7 0�,08 wv10 Noe'I� 131 1 IMMi
�.I R,NoTin,a.l Com 14, 1 I.N"�'r��', I�!!; M4 1.3 p"ti% 14.Mor 11 18 "4 1 5"M,, III I�(046 17,911N, I IIs E P) au C', ("mv'i
Ammus a'ldll l,il.4.�^,r vMil 77 It 2K 0"
r
Ihmch I t 2014 22
COQ',r R i t�'.'['I O `IR,0.11". .," µ w - S AFE"I"N"
Rine30, 201. 3 13.2%
June 30, - Invest-nient Return,:
Expected Investnient, Ret: 7.50%
Good, 1nvestm,ent Return:: 1 .6 - 15.101(
E No Other. Gains/Losses, Metbod/ASSUIllption Changes, Benefit InIprovenlents
0 Excitides Employer Paid Member Contributions (E.PMC)
E Contribution pro.jections include irnpact of 2 year phase, in for 2011 assuniption.
changes
Tier p55 F'AE3 effective 4/11 /2011,
R "New hire assutnO
+fir, Assunr 50% of 2013 new sires will be Class,ic Tier 2 M t,nr %( 55
and 50% will be New Members with PERRA benefits.
0 Assunies Classic Members will decrease froni 50% t % of new hires over 1
years.
Based on ("allIERS CAFR.
a Based on aIVERS CAFR-
:77
NIlaucIt V I, 2:0 14 23
G
u
In, additiabove assumptions, tr-ib do r j t n also include new
Contribution P'olicy Changes
Changes wi II teas pla J ane 3 0, 201 :. affecting 2015/16 contributi on 17ale
C 7A. NT RI, UIO N REX.,: F ON S �.".' WwS.. d' F E" W N",
3a1 4 7. ",4
4 5Nhzro 11y. . t �a.
B 42 60/'w'
I r
IlU1� �
Nk � ,,; / /r1,,.,
I e ,
a
u� , , Q7, N', 9� � �1D1 3 ,�� °�°au
n,,r�o i , a �, �? 'w,�
1 011
1".U JAI/ �111A. ,s2 9 K M1',,P
N�u
IN, 2 4 0`�
2 ,d' rate r,a� N tI t 1 m,aa'>
Nws,
131 14/115 1511 16/17 17/18 18/19 119/20 20,/2 11/22
frrrrJrJrrrfrrrrrrJ31"Afier IIIEP RA an sect Rete Smoothing --_-.
CO N',r R I,1t�l' O N ,@M 1 ,0. i*,.Y ..1: 'l' A'N,9 W:.,,,A - AFE" W.N"
t I+ r Contribution Rate if Market Value of Assets wem used
tual' l Ma'• t
2014/15 2
N Plan Assets AVA MVA
■ Amortization bases: 9.2% 19.0%
0 Tota,l ContilbUtion Rade 28.9% 38.6"Vo
N Aniortization period 25 years 25 years,
• In addition +numb t n projections also include new asstimptillon changes
t Changes will take p�la,ce in June 30, 2,014valuation r t ff t ng 1 11
contrilbu,tion rates
1) amech 11, 2:014 27
C�ON"1,'R.I�131,,.!']�"1(')N .PROJ�E(',"'I"]�ONS Wril I tj APPROVED MOWI'Au.�rry
AND 0i"jit,71i, AssiPTION CHAM.P'E'S - SAff:7.N�',
......................................................................................................................................................................................................................................................................................................................................... ....................
--------------------------------------------------------------------------------------------------------------------------------------------------------
50V,'�
47'.4%
................ ...............................................................
.............." '
'S
3 5 ------------------------------------------------------------------------------------------ ------------------------------------------------/------------------------------------------------------------
33,6%
"a"
.3 i9
2 74K
25%
1519,,E --T...................................71,11,111,111,111,11,'ll""I'll""I'll"'ll""I'll""I'll",","7""""'ll""I'll""I'll",'ll""I'll""I'll,Ill""I'll"'I 7...................................7..................................................................r...................................
13/14 14/15 1,5/16 16/1'7 17/18 18/191 19/20, 20/21 21/22
M,) lity and 011�ieer,Assilli�ii.1)�l�ioi�i(7lialiges
...................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................I',,",,,........................................
Marchi H., 2(l,14 28 a
ILGASB 6
�M Pension, Accounting:
GASB 68, Accounting for Employers, approved hme25, 2012
Replaccs GASB 27
0 1�Iffestive2014/15
IN Major Issues:
• thifunI'l ; ilmyon balance Il i
• Expense callculation. discorinected t-o�m contribution al ul tim'I
40 Discount tate i
11 I.l ect d, r tut-n on platy assets when assets sufiden;t to pay benefits
0 Municipal bond i-ate whri assets n tU17111 e t to pqy b tt �fit
0 Jeune 30, 201.2 'Unfunded, Actuarial Lilt in Million
l` ty $337.4 $242,5 94.9
250.0 146.0
Total Net Pension UaWlit $240.9
I G,ASB 6
V
■I " l P ,
0 Actuaries have approval fro Cal PIERS Board to make ne es l'y system
changes have, un word.
, Willlikel not d ° to provide roll' Amation for fiscal years < 2014/15.
Expect to pravide in rinationi but only aeon mi st.
Will charge srnal l &.
. E R , Cos"r kS4,11 R,ING
■ Target of 0 o l't t l n rum .l cost for everyone
0 New inembers mut pad ,greater °" of tota,l not"m al cost r- bargained
u I uur1t ifhigher
M Employer r a:nn t Pay any part of nit, men,iber i-eqUired employee contribUtiOlIS
0 Employei, may impose current employees Pay, 50% oftotal not-usual east Iii'D to
to certain amounts) ifn not, i- e 1 through, collective bargainung by 1 1 /] 8
0 Miscellaneous, Plan:
Current Members New Members
Tier 1 "Tier 2 Tier 3
FA E I FAE3 FAE3
, Employer Normal Ct 11 .2% 7.2% 6.
r Member Normal Cost 8.0% 7.0% 6.75%,
March I I rt,21414, 31
Sal"ety Plan,
Current Members New Members
Tier 1. Tier 2 Tier 3
0, Employer Not-inal Cost 19.6% 16.8% 12.25%
Member Normal Cost .0% 9.0% 1 .2 '
Total Nonni. l Cost: 28, E .8 : ,