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HomeMy WebLinkAbout98.ONLINE 07-26-2017 Steering Meeting Item 3 Attachment B - 2002-10-21 Towers Perrin Actuarial.pdf RETIREMENT SYSTEM S,,ving do A,rhr m,n' LUC0 October 21, 2002 Crn u, Saan'JuN, Gmsm mv, GKN II VI OWkN(I °a'°, G"'"" Gui uRI:N n Mr. Blake Anderson F„Iu G,A,AII«M•: Orange County Sanitation District Post Office Box 8127 Fountain Valley, California 92728 Snn Jo,pua Hlu• 7Ranenuuno� G,RRIw, AwNM1 Subject: AB 161 General Member Study—Orange County Sanitation District ORAII.L Gx5.1, c,,,,,:,,.ln D„,R„ , Dear Mr. Anderson: oR,ul.rGn^'*+ The Orange County Sanitation District (OCSD) requested an actuarial study K,ww,,.,, be completed which analyzed the impact on OCSD and members Rolniw,i Swaa: P Y P contributions of changing retirement benefits for all OCSD general members. Ox,6LI.G,ICr,FRI Enclosed for your information are the results of that study, which were A`.'"°""' completed by Towers Perrin. ORtu:r Gnl V 11 Lau Umcw•. If you have any questions, please call me at (714) 558-6222. OR116LCM11) Sincerely, G+Nuun Devn: L Keith Bozarth s.,Nll'aII1,N D,s IRII'I PI Chief Executive Offic r 0.1..F G,L,",,. Enclosed Em...... IdnscA m nrn' memlxrsl UCI NJ1.1 k:u Gsnu Idoud rn tk v memlx,S ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM. 222J IUell inglon Arenrre. Santa Ana. CA 9270/ Telephone(714;558-6200 Fa.,'r 714) 58-6230 Fascllumac�er/Plan Sponsors/OCSD study t IOrange County Employees Retirement System AB 616 General Member Study Orange County Sanitation District r The Orange County Sanitation District asked Towers Perrin to analyze the impact on ` the Orange County Sanitation District (OCSD) and Member contributions of changing retirement benefits for all General Members employed by OCSD. The Board of Retirement approved this study requesting that results be provided to the Board and then to OCSD. The benefits under consideration are those formulas allowed under AB 616. fThis report provides necessary background,actuarial assumptions and results for the study. BACKGROUND General Members currently participate in the Orange County Employees Retirement System (OCERS) under either Tier 1 or Tier 2, depending on their date of employment. Benefits and the corresponding member contributions differ significantly between the two tiers as described more fully below. Benefits Retirement benefits for Tier 1 members are based on a formula of 2% of final earnings multiplied by years of service. Benefits for Tier 2 members are based on a formula of 1.667% of final earnings multiplied by years of service. In each case,the benefits are multiplied by a factor, described below, based on age at retirement. Final earnings for Tier 1 members is based on the highest 12 months of earnings; final earnings for Tier 2 members is based on the highest 36-month average. Member contributions Member contributions for Tier 1 General Members are determined under California Government Code Section 31621.5. This section specifies that basic member contributions should be sufficient to provide an annuity at age 60 equal to one two- hundredth (1/200) of the member's final earnings per year of service. Member contributions for Tier 2 General Members are determined under California Government Code Section 31621. This section specifies that member contributions should be sufficient to provide an annuity at age 60 equal to one one-hundredth twentieth (1/120) of the member's final earnings per year of service. The above portion of the member contribution is called the "basic" or "normal" member contribution rate. These rates are determined using only three actuarial assumptions: interest rate (8.0%), salary increase (5.5%) and healthy mortality (1983 Group Annuity Mortality). Essentially, the basic contribution rate for a Tier 2 member is about 1.5 times the basic contribution rate for a Tier 1 member who entered the System at the same age. TerversHrrin i As required under Section 31873, both Tier 1 and Tier 2 members also contribute an amount to fund one-half of the additional cost for the system's automatic three percent cost-of-living benefit. This additional contribution is determined as a factor that is applied uniformly to the basic contribution rate. This cost-of-living load factor is determined based on all benefits provided and all the actuarial assumptions used in the annual actuarial valuation, including for example: termination,withdrawal and disability. DETAILS OF PROPOSED CHANGES This analysis was prepared for three benefit formulas with two definitions of final earnings. Each of the three formulas is based on a 2.0% accrual rate. The formulas differ only in the age factor used to determine the final benefit. 3.0% at 60 (Section 31676.171 The first formula,which will be referred to as "3.0% at 60", provides a benefit of two percent of final earnings multiplied by years of service and multiplied by a factor based on age at commencement. These age factors, based on factors contained in California Government Code Section 31676.17,are 1.000 at age 50 increasing to 1.500 at age 60. It is the benefit at age 60 that provides the basis for the name "3.0% at 60" (i.e.,2.0% times an age factor of 1.500 equals 3.0%). Please note that since the age factor is 1.000 at age 50,the benefit accrual under this formula (and, as seen below, all three formulas) is 2% at age 50. 2.5% at 55 (Section 31676.18) The second formula,which will be referred to as"2.5% at 55", provides a benefit of two percent of final earnings multiplied by years of service and multiplied by an age factor. These age factors, based on factors contained in California Government Code Section 31676.18,are 1.000 at age 50 increasing to 1.250 at age 55. It is the benefit at age 55 that provides the basis for the name "2.5% at 55"(i.e., 2.0% times an age factor of 1.250 equals 2.5%). 2.7% at 55 (Section 31676.19) The third formula,which will be referred to as "2.7% at 55", provides a benefit of two percent of final earnings multiplied by years of service and multiplied by an age factor. These age factors, based on factors contained in California Government Code Section 31676.19,are 1.000 at age 50 increasing to 1.350 at age 55. Again, it is the benefit at age 55 that provides the basis for the name "2.7% at 55" (i.e., 2.0% times an age factor of 1.350 equals 2.7%). A complete set of age factors for the current formula, as well as the 2.5% at 55, 2.7% at 55 and 3.0% at 60 formulas, are shown in Exhibit 1. For each of these formulas,final earnings were analyzed using both a 12-month and 36-month averaging period. 2 Towersarrin IMPORTANT CONSIDERATIONS Member contributions Member contributions under each of the three formulas are very different than the current member contributions. For each formula,the basic member contribution is the percent of pay sufficient to provide an annuity at age 55 equal to one one- hundredth (1/100) of the member's final earnings per year of service. This represents more than a doubling of the basic member contributions for Tier 1 members and a roughly 20% increase in basic member contributions for Tier 2 members. The cost- of living load would provide a further increase in member contributions. Benefit considerations It should be noted that: ■ All three formulas provide an increase in benefits for all Tier 2 members regardless of age at retirement and regardless of whether final earnings is based on a 12-month or 36-month average. For the 3% at 60 and 2.5% at 55 formulas, the percent increase decreases with increasing age. For the 2.7% at 57 formula, the percent increase in benefits grows from age 50 to 53 (12-month final earnings) or 54 (36-month final earnings) and then decreases with increasing age. ■ The 3% at 60 formula provides an increase in benefits for all Tier 1 members regardless of age at retirement and regardless of whether final earnings is based on a 12-month or 36-month average. In all cases, the percent increase decreases with increasing age. ■ The 2.7% at 55 formula provides an increase in benefits for all Tier 1 members at all ages if final earnings is based on a 12-month average. If final earnings is based on a 36-month average, however, the current formula is expected to provide a larger benefit at ages above 61. This"crossover age" is dependent on change in compensation during the 36 months averaging period. The percent increase in benefits grows from age 50 to 53 (12-month final earnings) or 54 (36- month final earnings) and then decreases with increasing age. ■ The 2.5% at 55 formula provides an increase in benefits for Tier 1 members at most ages if final earnings is based on a 12-month average. This formula provides an increase for all retirement ages before age 62 (the crossover age). For commencement ages at and after 62, however, the current formula provides benefits that are about five percent greater than the 2.5% at 55 formula. If final earnings is based on a 36-month average,the crossover age drops to age 61. Again,the crossover age is dependent on change in compensation during the 36- month averaging period. In all cases, the percent increase decreases with increasing age. For purposes of this analysis, we assumed that the current plan benefit would be applied as a minimum (i.e.,the benefit provided under any of the alternative formulas would not be less than the benefit provided under the current formula). 3 TbwersPerrin Service Used We prepared our analysis assuming that the change to the new benefit formulas would apply only to future service and, separately, to all service. If the change applies to all service, then arguably, members have not contributed as much in the past as expected to fund the required member contribution account (recall that member contributions are considerably greater under all three alternative formulas). This leads to a "shortfall' in member contributions. We prepared our analysis assuming that the members contribute this shortfall and, separately,that the shortfall is added to the unfunded actuarial accrued liability (UAAL). In total, this shortfall exceeds $250 million under all formulas studied. Obviously, the payment of this shortfall should be carefully considered. Exhibits 2 and 3 show the percent change in benefit under the different formulas for a Tier 1 and Tier 2 member, respectively, retiring at various ages. For purposes of these exhibits,we have not included a minimum of the current benefit formula. ACTUARIAL ASSUMPTIONS This analysis was prepared using the same assumptions as those used for the December 31, 2001 actuarial valuation. As you recall, the non-economic assumptions (e.g., mortality, retirement, termination) are reviewed during the triennial investigation. At this point, we have no reason to suspect that changing the formula to 2.5% at 55, 2.7% at 55 or 3% at 60 will change the incidence of retirement (i.e.,the percentage of members retiring at various ages). This assumption, however, should be carefully monitored in future experience studies. RESULTS The remaining exhibits show, by bargaining unit and in total,the change in normal cost, actuarial accrued liability, and the corresponding amortization of the unfunded actuarial accrued liability (UAAL) of the change in benefit formula. We have shown results assuming the revised formula applies to all service and, separately to future service only. We have estimated the shortfall in accumulated member contributions and calculated the change in employer contributions assuming the shortfall is paid by members and, separately,the shortfall is added to the UAAL. In each case,the change in UAAL has been amortized over thirty years. Results are shown in dollar terms and as a percentage of pay. You will notice that for certain bargaining units and in total,the change in employer normal cost is negative (i.e., a decrease). In addition,for certain bargaining units, the change to the new formula decreases the total employer contribution. This results from a combination of the sharp increase in member contributions,the small increase in benefits for certain ages and the fact that certain of the bargaining units are quite small. Obviously, the overall employer contribution will be constrained to not less than zero. 4 5tvers Perrin PARTICIPANT DATA The participant data used for this analysis was the December 31, 2001 actuarial valuation data supplemented with bargaining unit codes provided by OCERS. The bargaining unit codes were matched to the valuation data. Only matched records are included in the results shown in this report. Results for the unmatched records are available. i I 5 owers Perrin i ' Exhibit 1 Orange County Employees Retirement System AB 616 General Member Pricing AGE FACTORS TIER 1 TIER 2 Proposed 1 Proposed 2 Proposed 3 Age at Section Section Section Section Section Retirement 31676.12 31676.1 31676.17 31676.18 31676.19 3%at 60 2.5% at 55 2.7% at 55 50 0.6681 0.7091 1.000 1.000 1.000 51 0.7056 0.7457 1.050 1.050 1.070 52 0.7454 0.7816 1.100 1.100 1.140 53 0.7882 0.8181 1.150 1.150 1.210 54 0.8348 0.8556 1.200 1.200 1.280 55 0.8850 0.8954 1.250 1.250 1.350 56 0.9399 0.9382 1.300 1.250 1.350 57 1.0000 0.9846 1.350 1.250 1.350 58 1.0447 1.0350 1.400 1.250 1.350 59 1.1048 1.0899 1.450 1.250 1.350 60 1.1686 1.1500 1.500 1.250 1.350 61 1.2365 1.1947 1.500 1.250 1.350 62 1.3093 1.2548 1.500 1.250 1.350 63 1.3093 1.3186 1.500 1.250 1.350 64 1.3093 1.3865 1.500 1.250 1.350 65 1.3093 1.4593 1.500 1.250 1.350 69007 5MWRET ,.d t Pm00s10en.W Mamber PoCInglCompanson of Ben.ffl, .(Age FWtl .) MW0021138 NJ Divers Rrrin II Exhibit 2 Orange County Employees Retirement System f Percent Increase In Benefits for Tier 1 Member Under AB 616 Section Section Section Age at 31676.17 31676.18 31676.19 Retirement 3% at 60 2.5% at 55 2.7% at 65 FAE 1 FAE 3 FAE 1 FAE 3 FAE 1 FAE 3 50 50% 42% 50% 42% 50% 42% 51 49% 41% 49% 41% 52% 44% 52 48% 40% 48% 40% 53% 45% 53 46% 39% 46% 39% 54% 46% 54 44% 37% 44% 37% 53% 46% 55 41% 34% 41% 34% 53% 45% 56 38% 31% 33% 26% 44% 36% 57 35% 28% 25% 19% 35% 28% 58 34% 27% 20% 14% 29% 23% 59 31% 25% 13% 7% 22% 16% 60 28% 22% 7% 2% 16% 10% 61 21% 15% 1% -4% 9% 4% 62 15% 9% -5% -9% 3% -2% 63 15% 9% -5% -9% 3% -20A 64 15% 9% -5% -9% 3% -2% 65 15% 9% -5% -9% 3% -2% All benefits are based on final 12 months earnings i Towers Hrrin ■ Exhibit 3 Orange County Employees Retirement System Percent Increase in Benefits for Tier 2 Member Under AB 616 Section Section Section Age at 31676.17 31676.18 31676.19 Retirement 3% at 60 2.5% at 55 2.7% at 55 FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 50 75% 69% 78% 69% 78% 69% 51 78% 69% 78% 69% 81% 72% 1 52 78°A 69% 78% 69% 84% 75% 53 78% 69% 78% 69% 87% 77% 54 77% 68% 77% 68% 89% 80% 55 76% 68% 76% 68% 90% 81% 56 76% 66% 68% 60% 82% 73% 57 73% 65% 60% 52% 73% 65% 58 71% 62% 53% 45% 65% 57% 59 68% 60% 45% 38% 56% 49% 60 65% 57% 37% 30% 48% 41% 61 59% 51% 32% 26% 43% 36% 62 51% 43% 26% 20% 36% 29% 63 44% 37% 20% 14% 29% 23% ' 64 37% 30% 14% 8% 23% 17% 65 30% 23% 8% 3% 17% 11% 1 ' Diver Rerr•in Onroe Carty Enplgees 12etirxfent SysNm All 616 Study Employer so-sanitation Sargainlrg Unit CI. Active Ms.M,Count 0 All Service Employer pays sMrttall TIE0.1 G%at 60 2.6%at 66 2.2%at 66 Change ln; FAE1 FAES FAEI FAES FAEI PACs Name,Co., $ - If - S - f - f - S Act-al acaued Wbady(ML) $ - S - S - $ - $ - S - Amon0ali0nof change inML S - $ - S - S - $ - $ - Change in contribution: -polar, If - S S $ $ - S - .PxmnlolPay O.% ON% OM% am% 0.00% O.W% Shortfall Amount S - S - f - $ - $ Member pays shonfall S%a160 2.6%at 56 2.7%at 66 Change In: Fall FAES FAEI FAES FAEI FAE0 Nomul Com S - $ - S - S - $ - S - AduanalAccruedLabildy(ML) S - S - s - f - $ - S - Aimniza,ionofchangeinML S - $ - $ - $ - S - S - Change in conirgWion: -Coen. s s s s f f -P.,..of Pay 0uu% am% gbp% o.M% o.M% am% Future Service only 2%at 6p 2.6%rt66 2.7%a166 Change ln: FAE1 FAES FAEI FAES FAEI FAE2 Nmmal Coal If - S - $ S S - S Muarial Accroea Lahhly(MU o 0 0 0 0 0 Amonhation of change in ML o 0 0 0 0 0 Change in..Inbulion: -Dolan If - S - S - S S - $ - -percent of pay 000% O00% am% OM% O00% ON% Reese see aaemp.ny ng Mort raryn for aawmpnona and meiho0s TOWMRrrin Orange County Employees Retirement System AB616Stucty Employer 50-Sanitation Bar9alning Unit 'CL'ili: Adlve MemiserCouM 1 All SeMce Employer pays shortfall TIER 2 3%at 60 2.6%at 66 IMAM ch.N.In: FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 No.]Coat $ (29T) S (331) $ (352) $ (383) $ (322) S (354) Aduanal Oc.W Labilily(AAL) $ 719 S 682 $ so S 606 $ "I $ 615 Ammfvalnnol Nangein AAL $ W S 61 3 ST S 54 $ 60 S 57 C.,.in mnOib0ion: -Collars S CM $ aTq 3 (295) S (329) $ (262) $ (297) -Pefmnl of Pay 4.59% -0.66% 4.74% U.93% -0.66% 4.75% StiMlall A-1 S 263 S P3 3 259 $ 250 $ 271 $ 261 M.mber pays sternest 3%at 60 2.6%at66 2]%R66 Chang.ln: FAEI FAE3 FAE1 FAE3 FAE1 FAE3 NmrvlG I S 997) S (331) S (=) $ (363) S (322) $ (354) Actuarial Acoue6 L"¢6ilty(AAL) S 436 $ 409 S 351 S ass S 410 S 381 Amoniz.tlon of change in AAL S 3B S 36 S 3s S 32 S 36 S M Change in mnmorion: -Dollars $ (266) S (295) S (318) S (351) S (zam S (320) Percent of Pay —OM% -074% .08014 -0689, AT2% 401% Future SeMce only 3%at 60 2.6%at 66 2.7%atM Ca.N.ln: FAE1 FAE3 FAE1 FAE3 FAE1 FAE. Nomul Cost S (297) S (331) S (354 S (383) S f322) S (M4) Actuarial AEnu.a Liability(AAL) 0 0 0 0 0 0 Amortization of G W in PAL 0 0 0 0 0 0 Change in cvntribulion: -Collars $ (297) $ (331) S (152) S (383) S (322) S (354) -Persant of Pay ATS% -0.83% 4.9% L.97% -0.61% 459% Pkaae see aCMTOaMrng Isoer tepml la assump.ws-o memWE Towers Perrin 0..,.County Employees Rellnment System AB 116 May Employer 60-Sanitation Bargainin00nd [[[CL A.U.Member Count 1 All Samice Emptoyer Pap..W.1l I TIER 1 S 2 3%at 60 a.6%at 66 2A%at 66 China.in: FAE1 PAN PAN PAN PAN PAN N-1 CPa1 $ (207) 3 (331) $ M2) S (m,f) 3 (322) 3 C] ) Actuarial Acaued Lialaly(AAL) $ 319 3 682 5 640 5 60a 3 "1 3 S45 Amonixalien of mane.in AAL $ 64 3 at $ 53 $ 54 $ 60 $ 63 Cean9e In mnflow.: O.Yn S (233) S (270) S (29s) 3 (329) 3 (262) S (297) Percent of Pay 0.59% 0.58% A74% .0.83% -am% 4]5% SMOf.DArmure S 283 5 273 $ 252 3 250 S 271 $ 251 M..b.r pays.NOTall 3%a150 2.6%at 66 2.7%966 Craig.in: PAN FAE3 PAN PAN PAN FAE3 N. 1Cool 1 (297) 3 (331) 3 (352) S (383) S (322) S (354) AduarialA ed LNbINIy(AAL) $ 4M S am $ Mt $ 356 $ 41D S 384 AI1loniza0on of mange In AAL $ 39 S 36 S 30 S 32 S m S N Crane.in mnblbunnan -Warr $ (2M) $ (295) $ (318) S (MI) 3 (286) S (320) -Parcenl of Pay D.65% -0.74% Dwy, 0.0% .0.72% 0.81% Put..Spvlu only Manor) 2.6%a166 2A%M 65 Change In: FAE1 FAE3 PAN FAE3 PAN PAN Nerm.lC $ (297) $ (331) 3 (352) $ (383) S (322) S (350 Actuarial Ataund Liability(Al 0 0 0 0 0 0 Ammllnlion of an,in AAL 0 0 0 0 0 0 Chu,.in mnlributloo -0o6an 3 (292) S (331) $ 1352) S (383) S (322) S (35Q -Pon..of Pay .0.75% -oID% 4.89% .0.92% 0.311, 0.60% P mmpnPn b n 01e1oon fa wmMlm rational. aMrational.rational.rF� lVwirs In babble MEMBER INNER Orange Cwny Employees parliament System AS 616 StuRy Employer 50-Samitatbn Bargaining YNl xx j Active Member Court A All Servle. Employs pryer allertfall TIER 1 3%Al 2.1%at 65 2.7%At 65 Changelre FAE1 PASS PAE1 FAE3 FAB1 ME3 NormalCwl S (16,192) $ (17.132) S 1,296 s lsA s 2.124 $ (1,0M Acuarial Accrued Li.b,Wy(AAy $ 351,059 $ 270,551 f 69,065 3 (43,583) $ 190,041 S 371544 Amortization of change In PAL $ 3111" f 24,032 S 7.913 f (1.870) 3 16A51 $ am Change in co erhuhion'. Duran S 16,992 $ 6.900 S 9.211 S 12.210 s 19.w s 5,999 -Pemnt of Pry 4A1% 1.96% 2.85% 3,65% 5.68% tAT% Shuthl Amount S e24,581 S 115,025 S e01 S 393.935 s 41317W $ 404A81 Member pays shortfall 3%at s0 2.6%9 66 2.T%at 66 Change fine FAES FAE3 ME3 PA93 PAE1 FAE3 Moral Cos f (15.192) S (0.132) 3 1.206 S 111.560 $ 2.126 S 0Os9) Poll ACerva6 Liabilty(AAL) S (?3,522) f (144,474) S p11.418) 6 (492.499) $ (223,666) S (326,037) Amoeiorem.lNane.mAAL $ (61531) $ (12,M) s (22,6a0) f (31102) f (19.666) S Mull Charge in contribution: Dollars S (22.723) S (29.985) $ (26,542) $ (22,252) $ (12,732) $ (30,130) Panama of Pay AMIA 4,01% 4.63% ."% .5.10% 2.56% Future Service only 3%also 2.5%at 66 2.2%at 55 Change In: PAS1 FAE3 FAEI FAE3 PAE1 ME3 Normal Coil S (16.194 S (17.132) i 12" $ ls$W $ 2.128 $ (1,0N3) Acluerhl ACcrua6 LiabiWy(ML) 0 0 0 0 0 0 AmcAiaalion of change in PAL 0 0 0 0 0 0 Change in contribution: Doman S (10.194 f (17.132) 3 1," $ 15,560 f 2.125 $ (1,069) Percenrpfpay An% 4.92% 0.33% 436% 0.61% 4.31% Plea cmmlmngng lean rgvn tar asaumpuonaane memM: TownAT+rHn i Onnga County Emplayees ReOnmenl System AS Sig Study Em player 50-Sanitation Eargaun,Unit , )U[ '! Active Member Count 18 All Service EmMoyer pays eborMall TIER 2 3%a160 2.6%at56 2]%atM Change IS: FAEI FAE3 FAEI FAE3 FAEI FAE3 Nornal Cosl $ 22608 S 13.1141 S (INS) 6 (9.132) S 9333 S 1461 Achorol Accrued Liability(AAL) 5 758,351 $ 633,246 S 391.727 $ 284.758 S 554.993 $ A39,85e ARmniaalion of change in AAL S 67362 $ 56.250 3 34.796 $ 25294 $ 49299 S 39.072 Chalgain wmMmlon: -Dollars s N.610 $ 70,091 $ 32.931 S 16,162 s 59,632 S 40,533 -P..hI of pay 8.21% 5,40% 3.01% 1.0% 535% 3.70% ShanfallAmunl S 396,971 S 362$21 S 363,564 s 350632 $ 380.527 S 366.576 Member pays ahoMall 3%at 50 2.6%at 66 22%at 66 Change in: FAEI FAE3 FAEI PAS FAEI FAE3 Normal COat S 22.508 $ 13'"1 $ (1,865) S (9,132) S 9,333 S 1461 Anualul Acvuel Labi3ly(AAL) $ 361.380 3 250.725 $ 28.143 s 165.874) S 124.466 S 232M Amanitalion of change in AAL S 32,100 S 22.271 $ 2,W $ (5.851) S 15,497 $ 6,510 Change in contribution: -pagan S 541.605 $ 38,112 $ MIS S (14,583) $ 24.SW 3 7.931 -Perwnlof Pay 49996 3,30% 006% -1.37% 2.22% 0.73% Future Servce only S%at 6a 2.M.1 US 2.7%at 56 Chenille.: FAE1 FAE3 FAEI FAE3 PAS FAE3 Normal Cost S n2 m $ 13,801 s (1.116S) $ (9,132) S 9.333 $ 1Aet A.-,W Accrued LWIS.Wy AAL) 0 0 0 o a 0 AmMitalion of change a AFL 0 0 0 0 a 0 Change in conbibudion: -CoMare $ 22AN $ 13,841 S (INS) S (91132) S 9,333 3 1.461 -Plant of Pay 306% 1.26% 4.17% .083% 085% 0,13% Pla.ta.a.acrnmperrym9le.er unpae Nlassumplcn—af methods Towers Penin onlge cwmy EmgOyeez Reeremem sysrem ABB166NEy Employer 50-Sanitation Bargaining Unit XX Active Member Count 22 All Service Employer pays s0olzlall TIER 162 J%rt 60 2.614at 66 2]%at66 Change In: FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Normal Cast S 6.315 f (3.291) $ (56T) J 7.447 S 11,455 5 371 Aduaall Acweol Lankly(AAL) S 1,109,410 $ 903.797 $ 4W.611 $ 241p96 S 745,03f S 517,409 AmaOizalbn of charge in AAL $ 98,546 5 80.282 S 42,209 5 21.425 S 66,179 $ 4,960 Change in mritlbNnn: Colors If 1d,861 $ 78.991 $ 42.142 S 28.972 S 77,637 $ 46331 Percent of Pay 7.27% S.A% 2.92% 2.W9e 538% 321% StortallAmaml $ 82102 S 797$45 5 765.087 S 744,568 S 794,23s S 771,09 Member pays shortfall 3%at 60 2.6%at 66 2.7%at 66 Chage I.: FAEt FAES FAE1 FAE3 PAS PASS Normi Cost $ SA15 S 0,291) $ (567) S 7.447 $ 11.458 S 371 Actuarial AcweE Luhi3ry(AAL) S 287.858 S IN.251 $ (285.276) $ (59372) S (49200) 5 (253.649) Amanaalion el change..AAL $ 25.STo $ 9,438 $ (25.340) $ (44.713) $ (4.370) $ (22.531) Change in contribution: -Cars. $ 31.665 $ 6.147 5 R5.9J7) J 133.266) $ 7.06 $ (22.1601 -Pwmnf of Pay 2.21% 043% -180% -2.58% 0.49% -1.54% Future Service only 3%at 60 2.5%.65 22%at 65 Change in: FAEI FAES PAS FAE3 FAE1 FAE3 Normal Coal $ 6,315 $ 0.291) $ (567) $ 7.447 $ 11458 $ 371 Actuarial Acauad Liability(AAL) 0 0 0 0 0 0 Amanpalion of change in PAL 0 0 0 0 0 0 Change in congbmibnr Oolars $ 6.315 $ (3.291) S (%T) $ 7.447 5 11.458 S 371 Percent of Pay 044% 423% -0O4% 052% 079% 003% Please see accompanying leper repon for asuunplionz aM nwlhMz TmversPerrin parge Cmmy E�rylgees Deli remem system AB 616 SmP/ Employer 50-Sanitation Bargaining Unit AdWe M.mOer Cunt 0 All Service Employer pays sMMali TIER 1 3%ac60 2.6%At 66 3]%At 65 Change in: FAEI FAES FAEI FAN] FAEI FAES Normal Cast f - S - E - f - f - $ - Ad-nal Acaued CoeiNy(AAL) $ - f - f - $ - E - S - An'onizalion of chap.in AAL f - f - S - $ - $ - $ Changa in ummlalian: -MO.. $ f f - S - E - f - -Percent of Pay 0.00% 0.00% 000% 000% 000% 000% Shoniall Amount i - f - S - S - f - f - Mem.er pay.show." ]%at 50 36%At Siff 2.7%at 55 Change In: FAEI FAE] FAEI FAE] FAEI FAE] N.—I Cast f - f - S - f - f - It - AduaralAcuuedLlahl6ry(ML) S - S - f - i - s - f - Amonizaimafcha limMIL f - f - S - i - $ - S - ChanOa in mnl�lWiml -WIIars i f E - $ - S - f Permntaf Pay 000% 00006 000% 000% 0.00% 000% Future Service only E%a160 2.6%at Siff 2P%a165 Clumcl. n: FAEI FAE] FAEI FAE] FAEI FAES NooW CoM S - f - S i S - f Aduanni Anaued CUOilny(ML) 0 0 0 0 0 0 Amortization of Gang.in ML 0 0 0 0 0 0 Clwnge in anhieution: -Dollars S E 5 i f f - Penentaf Pay OW% 000% 0.00% 0.00% 0.00% Owe, Pease I.a cmmparryin0lallw repan tar assariv arts end mMe]s Towen nin orange County Employee,aeurement System AB 616 a,., Employer 60-Sanitation Bargaining Unit , $B Astiye Wimber Cminl 1 All Servlee Employer pays elnrtall 21E112 MAN 2.6%at 66 2.7%At 66 Change In: FAE1 FAES FAE1 FAES FAE1 FAES Nnmul Cos, $ nB S ate S Rq S (M) S 411 $ 62 Achemal Aemea Liabildy(AAL) S 24.9115 $ 21,931 S 16,301 S 15,61a $ 21859 $ 18,02 Arrome.11.of Na,e,in AAL S 2.217 S 1.946 $ 1.626 $ 1,%t $ 1.941 $ 1.665 Charge in mnliibu,un: -l2allam $ ]jets S 2.358 S 1,602 S 1,035 $ 2.152 If 1.?" - Perron!of Pay 35S% 229% 190% 123% 2.98% 2.03% SlwnhllAmoum $ 16.553 $ ISp52 S 15,10 $ 14.625 $ 15,669 $ 152M Member Pays shortall $%960 2.9%at 66 2]%at 65 Change in FAE1 FAIR FAE1 FAE$ FAEI FAE2 Nmnol Cost $ 228 S 410 $ (24) S (352) S Ht $ 82 Actuarial AevueC LpGNy(My S 8A03 S 5.939 S 3,136 S 966 $ 5.9641 S 3p93 Amortisation of Mange mPAL S 74 S M, S 209 S M S 533 $ 3" Change in constitution Miss; $ 1.524 S 9a1 $ 255 $ (26a) $ M3 S 390 -Pemanl cif Pay I'M 111% 0.30% 431% 1.12% BN% Future SeMse only MAIN 2.6%a1 IS 2]%at 65 Cnage ln: FA51 FAES FAE1 FAES FAE1 FAES Normal Cosl $ 173 $ 410 $ (2i) $ (352) $ 411 $ 62 Aduatal AmueE Wbikly(AAL) 0 0 0 0 0 0 Amortization of Mange in AAL 0 0 0 0 0 0 Cessna in mnWbu,ion: Dolan, $ tie S 410 $ (24) $ (352) S 611 S 62 -Pemanl of Pay A92% 0.09% -0A3% Al2% 049% 007% I Finesse see a[WmpaMing knei repM rar asaumpppns and metno05 TOWCTSPCi n i orangeC byi Employees ReelemaM System AB 6165NEy Employer 50-Sanitation Bargaining Unit Active Member C.mA 1 All Service Employer pays sMMall TIER 162 3%al No 2.6%at 65 2.7%at 65 Change In! FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Nomal COM $ 238 S 410 S (24) S (352) S 411 3 62 Aeuarkl Acomed Liability(AAL) $ 24,955 $ 21.01 $ 18.Ml $ 15614 3 2169 $ 10.932 Anrotixaliin of change in AAL $ 2.212 S 1940 $ 1.6M $ 1387 $ 1.941 $ 1.686 CM1ange in contribution: -Dollars $ 2.995 3 21358 3 1,602 $ 1035 $ 2.352 S 1,748 -Percent of Pay 355% 2.79% 1.90% 1,23% 2.78% 202% Shortfall Amount $ 16,553 $ 15,952 $ 15.165 % 14,626 $ 15,869 $ 15109 Member wya sll0mall 3%960 2A%.166 2l%966 Charge in: FAEI FAE3 FAE1 FAE3 FAE1 FAE3 Normal Cost $ 776 3 410 S 94) $ (Mill 1 411 $ 62 Aeuarnl AcuuM Liability(My S 8p03 3 5.979 $ 3.136 S we $ 5,984 $ 3.693 AnnesIaminin oltltan,m ML $ 246 S 531 1 239 S M $ 532 $ 328 CO.,.inPonOi Non: Dollars $ 1.524 S 941 $ 255 $ (264) $ 943 $ 390 -Pa..of Pay IM% 1A1% 0.M% -031% 112% 0M% Future Service Only 3%M60 2A%.16a 2.7%a165 Charge in: FAE1 FAE3 FAE1 FAE3 PAS FAE3 Normal Cost $ 328 3 410 3 (24) S (352) $ 411 $ 62 Anvers]AcvuaJ Liability(Mq 0 0 0 0 0 0 Amptization cl change in ML 0 0 0 0 0 0 Change In oontrixtue, -DON.. $ 378 3 410 $ (24) $ (M2) $ 411 $ 62 Payment of Pay 092% 0,49% 4.03% 4A2% D49% D07% Please see acmmpyrym0 knor morn 1praceump4ons no nabons Taw mItmn Orange County Employees Perri System AB 616 Sou ty Employer 50-Sanitation Bargaining UM SZ Active 81emMr Count 36 All Service Employer pays shortfall TIER 1 ]X at 60 2A%a165 2.7%at 66 Change in: FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Narnal Coal S (58.580) $ (48,372) S (58.207) 1 (BSR17) $ (56918) $ (62,491) Actuarial Acouna L'abiily(ML) S 3266.725 S 2,443,1% S 1, 1.253 $ 560.197 S 2.118926 S 1,284,495 Angel oMeni of Mange in MIL $ 290.175 S 217.020 $ 120,561 $ 49.761 S 188.183 S 114.098 Change in oortn ulim: -ChAae S 231,595 $ 166,648 S 62.354 S (35.4w S 13120 S S1.6Ur, -Permnl of Pay 8.37% 809% 225% -1.28% 074% 1.116% ShonfallAnounl S 3,136,129 S 3.055A95 $ 2.972,946 S 2.909.615 $ 3.055.755 S 2987.559 Word,..pays.MMall 3%at so 2.5%al S6 2.7%at 65 Changem FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Normal Carl S (50.580) $ (46.372) S (11 10]) $ aS,217) S (55918) S (62.491) Aa--I oco ani Luellny(ML) $ 13g596 S (622.329) $ (1,615,693) S (2. 9,428) S (937,229) $ (1,700.064) Arroa¢alun of change in ML $ 11,601 S (55.280) S (143.518) $ (200.694) $ (83,252) S (161279) C6anga in melNauloari Caere $ (46.979) $ (103.02) $ (201725) S (293.911) S (140,1T0) S (213,770) Permnl of Pay -1.70% -3.75% _729% -te62% -SAM -7329, Faroe Service only 3%at 60 2.M.66 2.7%a165 Change In- FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Normal Cori S (511,40) $ (48.372) S (58.207) S (85,17) S (56918) S (62,491) Aauar¢I Aco nal L'a8iey(AAL) 0 0 0 0 0 0 Amonizalun of Mange in ML 0 0 0 0 0 0 Change in m�lMulioh: -Doug S (58$80) S (49.372) S (SB.207) S (85.211) $ (56,918) $ (62491) -Permnl of Pay 5212% -175% -2.10% J.OB% -2.06% -2.26% Travers='n c mmpan/Np k0er repel In awnpMla eM meIMM Onnpe c—.,Enplgees Retirement Syrtem AS 6166tury Employer 50-Sanitation Bargaining hilt _S$.':1 Active Member Count a56 All Service Employer pays shoMall TIER 2 3%at 60 2A%atM 2]%H66 Change In: FAE1 PAS FAEt FAE3 FAE1 PASS Normal Cast $ 655,690 S 405,425 S 112.967 $ (21p68) $ 363.921 S 185,010 Actuarul Acwee Leon,(AAL) $ 19,719,139 $ 16,909,855 S 12$56,030 $ 10A93,220 $ 16,132,458 $ 13,426.4M Amortization of Mange in AAL S 1.754,265 $ 1501793 S 1,115,320 $ 896.559 S 1433,008 $ 1,197.W7 Change in mnlliBNim: -Dollars S 2.41005 S 1.947,218 S 1220.287 S 825,4191 S 1.816.905 $ 1.303.092 -cement of Pay 8.11% 6.55% e.13% 2.78% 6AI% 4,65% SMNaIIAmounl $ 10.110.197 $ 9.742,294 $ 9,260.240 $ 8.930,378 $ 9.691,555 S 9,336,M5 Member Pays shortfall 3%a160 2.6%at 65 2]%at 65 Change ln: FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Normal Cost $ 655690 $ 445,425 S 112.967 8 91,058) $ 383.977 S 186,010 Atluar.icvuea Went,(AAL) $ 9,638,942 S 7.164.561 S 3,295,793 S 1162892 3 64e0,933 S e,10,066 Amaization vl Burge in AAL $ 856.202 S 06.e10 S 292.157 $ 103392 S 572,132 S 361,79 Change in contribution: -Colars S 1512,892 $ 1031835 S 405.724 5 32129 S g56.103 S 5 .?Sa -Percent of Pay 009% 3.64% 1]2% 0,11% 322% 186016 FNme Service only 3%at 60 2.6%a166 2A%Me be Cluing.In: FAE1 FAE3 Fall FAE3 FAE1 FAE3 Norman Coal S Oti $ e15,425 3 112,967 S (21,068) $ 3031977 S 1861010 Actuarlg Ac>uad Willity(AAL) 0 0 0 0 0 0 Apgrlintion atNang.in AAL 0 0 0 0 0 0 Changeincentrinnim: Dollars 3 6%,690 $ 445425 $ 112,967 S p1,068) S 383,977 S 156,010 Pemenl of Pay 2.21% 1.50% 036% .0.24% 1,29% 0.0% class.-a acwmvammp leeer repNur as:umnuonf ana mails TonymPemn s O ranfle Cwnly Empl%eex Re4RTenl Syxlem As$165tuoy Employer 50-Sanitation Bargaining Unit Active Member Count 092 All Service Employer pays slawall TIER l 8 2 3%at 0 2.6%At 66 21%M66 Change In: FAEI FAE3 FAEI FAR FAEI FAEI Normal Cost S 5981111 $ 397.O64 6 54.261 S (156.284) f 327.060 6 123.519 ACuarol Aeauva L®MIOy IANq S 23,015.30 S 19,350.020 $ 13913,282 f 10.653.466 $ 13.251.013 S 14,760.928 AmoAiaation of change In PAL S 2.044.e40 S 1.718.813 $ 1,235,681 S 946,320 If 1,621.191 S 1.311.175 Change in contribution: -Collars S 2.612,551 i 2.115,867 $ 1291 f 790.036 $ 1.9e8131 S I.436,694 .Percentol Pay 8.14% 6.51% 3.92% 2.0% 600% 4.42% ShonfallAmount $ 13,246,326 $ 12.807.70 6 122M.186 S 11,84U.003 $ 12.747,310 $ 12,323.901 Member pays Shortfall 3%at 69 2.6%at 66 2A%at 66 Change in: FAEI FAEI FAEI FAE3 FAEI FAES Nwmel Coal $ 596.111 f 397,0N S 51,261 S (156,284) S 322,060 S 123.519 Achieved Ac.ad LANIIy(AAL) f 9,]69,53] S 6.W.231 f I.M. fi f (1,166537) S 5,503,703 S 3.I32.o2e American.al .as.is AAL S 962,313 S 581,130 S 1e9.239 $ (105.392) S MISM $ 216.05 Change in contribution: -Coven S 1.465.914 6 W8.161 S 206,000 $ (261.681) S 815.960 $ 339,99e -Percent of Pay 4.51% 3.01% 0.63% -081% 2.51% 1.05% Future Service only 3%at so 2.5%at 56 2.7%at 66 Change In: FAEI FAE3 FAEI FAE3 FAEI FAES Normal Cost i 598.11, $ 392,05a S Si 6 (156.284) S 327,060 S 123,519 Anusnal Accrued Lability(AAL) 0 0 0 0 0 0 Amoriaalien of change in AAL 0 0 0 0 0 0 Change to contribution: -Covam i 596,111 $ 397,054 S 51,261 $ p56,204) $ 322,060 $ 123,519 -Percent of Pay 1.64% I.n% 0.17% -0.46% 1.01% 0.38% Money see accompa%mg loner moon f0v assomauMs ant MPrPU Dwm PC2 in Cougs County Emplgrees Rnmorant System AS 616 son, Employer So-Sanitation Bargaining Unit (Tour Active Member count 60 All Servlcs Employer pays Momelt TIER 1 3%460 2.6%at 66 2A1,6166 Cnnge ln: FAEI FAE3 FAE1 FAE3 FAE1 FAE3 Normal Can $ (74,772) S (65.W) S (56909) S ("ISIT) If (56.792) $ (63,580) Amaral Acwel UaNny(AALI S 3.617.76a S 2.713717 S 1,446,338 S 516.6N S 2,3011,567 S 1,31i2.0A Amortization of Mange in AAL S 321,35E $ 241,053 S 1211.474 S 45.891 S 205,06a $ 120y60 m C6an9aimnrig,din: .ooli s S 266.W $ 175.569 S 71555 S (22.745) S 10,272 $ 57,605 Percent of Pay 7,92% 5.63% 330% 433% 4.82% 1,14% 50MbIlAmoad S 3.5E0.710 $ 3,000,520 $ 3,375,4,19 $ 3,301,51i1 S 3.469.462 S 3.M,040 Member pays Marttall 3%at 60 2.1%at 66 23%at 66 Cnargeln: FAE1 FAES FAE1 FAE3 FAE1 FAES Normal Cost $ (74,772) S (aSsovd) S (%.909) S (61 S (61.792) $ (63.500) Actuarial Accrued Lh0i9ry(AAL) $ 57,076 S (I64803) $ (tA29.111) $ (2.760.927) $ (1.160.895) S Q,030,C01) Amortization of Mange in AAL S 5A20 S (Ea.113) $ OM3581 S (247,555) S 003.119) S 080]20) Cnan9a in mnlrbulion: -wlars $ (69,702) $ (133,617) S (228,267) S (316.193) f (157.911) S (243,900) Percent of Pay -224% 429% -GAD% -10.15% .5.07% -70% Fmve Service only S%at60 2.6%at IS 2A%at66 Change in: FAE1 FAES FAE1 FAES FAE1 FAE3 Normal Cop S (76.7n) $ ("Act") $ (56.909) $ (fi8,631) $ (54.792) S (83580) AduamUuuued Liability(PAL) 0 0 0 0 0 0 A.Hapion 01 Mange in AAL 0 0 0 0 0 0 OMyeincenit.uivi: -Doll. S (74,772) S (65.504) S (56,909) S (68,837) $ (Sa.792) $ (63,580) Pemmrt of Pay -2A0% -2.10% -IM% -2.20% -1.76% -2.06% Please see acmmpanymp kRn mpM m for as&UmpUws and Nnods TO;VMPenin Orange Cwnly Employees Retirtmem System A9 as SluEy Employer 60-Sanitation Bargaining unit Total Active MemYr Count 476 All ii Empl.,r pays shortfall TIER 2 3 %400 2.6%a166 2.2%AM Chang.ln: FINE FAEI FAEI FAE3 FAEI FAES Normal Cost S 6]9,6]9 S a59,Y15 S 110,226 S (60,935) S 393,399 S 187,179 Acluarul Accrued L®hihty(AAL) S 20,533.165 S 12S62.T1e $ 12,966,690 S 10,394,248 S 16,710.015 S 13.05.924 Amnizalim of change in AAl f 1823,936 f 1,560,051 $ 1,151,799 $ 923,294 S 1,4114,b6 $ 1,237,692 Change Pa wmnistr ion: -Doran; f 2,503562 S 3.019,396 $ 1.262,525 $ &2,M9 S 1.877.307 $ 1<25,071 -Permnt of Pay am% 6.0% 409% 2.72% 5.07% 461% Sh.m."Amounl S 10,524.000 $ 10,141,000 S 9.09,243 S 9,295,886 3 10,050,222 S 9.718,471 Member pay. MMall 3%at 60 2.6%at 55 27%at 65 Chasgein: Me FAE3 FAEI FAE3 FAEI FAE3 N.ICosl f 6]e. S S..MS f 110,725 S (M.935) f 393,329 f 187.179 Actuarial Ac W Wisely $ lo.009.161 S 7.421.674 $ 3.322.050 S 1011i S 6.621.791l S 4,217,453 AmMisaliOn al change in AAL $ Sagem $ 659,248 $ 395,569 S 97.WS f SM,197 S 374,626 Change in mmritatiom -Da9ats S 1568,763 $ 1.11850 S <08,295 S 16,630 f 9811596 S 561.305 -Permnt of Pay 507% 362% 131% 005% 3,17% 162% Future Service only 3%a160 2.5%at 66 2.3%a166 Change In: FAEI FAE3 FAEI FAE3 FAEI FAE3 Normal Cast $ 579.119 $ 459,345 $ 110.726 $ (M.939) $ 393599 S 187,179 Adthmal Accrued Wbi61y(AAL) 0 0 0 0 0 0 AmoltizMion of Mange in AFL 0 0 0 0 0 0 Change in contribution: -Dalian $ 679,679 f 459A05 f 110.726 S (80.935) S 393,399 $ 187,129 -Percent of Pay 220% 1,48% 0.36% .026% 131% 0,61% Pleds¢se¢accompanyingrllenepan for assumpOmS aq me1MLs Towers Perrin ..Me Cusrly Employees Rourtmess System A6616SW* Employer 50-Sanitation Bargaining Unit ?e5ffi, Active Member Count $15 All Service Employer pays sharuall TIER 16 2 agenda 26%a166 2.7%at56 Caangeln: FAE1 FAES FAE1 FAE3 FAE1 FAE3 NOmwl Low $ 60693T S 381,812 $ SJ.816 S (149.572) $ 338.607 $ 123.596 Acuarol Acauetl LabiWL) S 24.150948 S 20,276p30 $ 14,413.034 $ 10,910.862 S 19,018.581 $ 15,29T,963 Amol4vlion of Wn9e N AAI. S 2,145,251' 5 1801.109 $ IaW,273 S M.186 5 1.689.372 S 1.38879 Change In mnt,ftt,.n: -Dollars $ 2.750,174 $ 2.194,9<5 5 1,L0091 $ 819,014 $ 2.027,979 $ 1,48217T -Perwnl of Pay 8.08% 6.IS% 3.92% 2A1% 5,96% 43S% ShoMall Amount 5 14084,714 $ 13,621,560 $ 13014.69T $ 12.999.447 5 1)557684 S 13,110,511 Member pays shortfall a%at 60 2.6%a165 2]%at 65 Change In: FAE1 FAEI FAE1 FAE3 FAEI FAE3 Normal Cost $ 6o4.9oT $ 393,842 S 53.818 S (149.572) $ 338.607 $ 123.598 Actuarial Accrued Lability(AAL) $ 10.066; $ 6.654.870 $ 1398.337 $ (1686,565) $ 5.460.897 S 2.187.452 Armn¢ation of change M AAI $ 894,158 $ 591.1n 5 124.211 S (149,01) 5 485.017 $ 194,306 Charge in mneiadlion: -Coal. $ 2A99065 $ all $ 11"I'M S (299,563) $ 823,684 S 317,904 -Permnl of Pay 4,40% 289% 052% -088% 2A2% 00% Future Service only 3%at 60 25%MU 2]%a166 Clrvge ln: FAE1 FAE3 FAE1 FAE3 FAE1 FAE3 Normal Cost S 604.907 5 393,842 $ 9,818 $ (149.572) $ 338607 $ 123,598 Areas"Accrued Labdity(AAL) 0 O 0 0 0 0 Amanicalion of change In AAL 0 0 0 0 a 0 Cbarpe In mnlrsolion: -wife. $ 604,967 $ 393.842 $ 53.818 $ (149$72) 5 338.607 $ 123598 -Pence of Pay 1.78% 1.16% 0.16% AA4% 099% 035% %wse ace, rgg u accoroar,of lever r for asunpinns and methods T0"rjemn