HomeMy WebLinkAbout96.OCERS_ReturnRate 07-09-14 Admin CommDebt Reduction Options
Prepaying Pension Liability
0
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
19
9
3
19
9
4
19
9
5
19
9
6
19
9
7
19
9
8
19
9
9
20
0
0
20
0
1
20
0
2
20
0
3
20
0
4
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
OCERS Historic Rate of Return
Historic
Average
Benefit from prepaying
pension liability will depend
on actual rate of return on
OCERS pension assets
OCERS has delivered an
average rate of return of
8.85% over past 20 years
By comparison, current
10-and 30-year Treasury
yields are 2.59% and
3.40%, respectively
Even with enhancements
(discussed on previous
pages), the total return is
significantly less than the
OCERS average rate of
return
Debt Reduction Options
Unfunded Actuarial Accrued Liability (UAAL) History
IR
W
D
OC
S
D
Or
o
Lo
m
a
Fr
e
s
n
o
Sa
c
r
a
m
e
n
t
o
Ea
s
t
B
a
y
M
U
D
Un
i
o
n
S
a
n
i
t
a
r
y
Ce
n
t
r
a
l
C
o
n
t
r
a
C
o
s
t
a
Du
b
l
i
n
Ci
t
y
o
f
L
A
Va
l
l
e
j
o
Sa
n
F
r
a
n
c
i
s
c
o
Sa
n
D
i
e
g
o
LA
C
S
D
$123
$135
$169
$215
$198
$100
$120
$140
$160
$180
$200
$220
$240
2009 2010 2011 2012 2013
9%
26%
27%
-8%