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Other Post -Employment Benefit Programs of the City of ""
<br />Actuarial Valuation as of July 1, 2015
<br />E. Basic Valuation Results
<br />The following chart compares the results of the July 1, 2015 valuation of OPEB liabilities to
<br />the results of the July 1, 2013 valuation.
<br />Funding, Policy
<br />Prefunding Basis
<br />Valuation bate,"
<br />7Fi12g73;v,
<br />Iii/0
<br />Subsidy
<br />Explicit
<br />Explicit
<br />Implicit
<br />Total
<br />Discount rate
<br />7.50%
<br />7.28%
<br />7.28%
<br />7.28%
<br />Number of Covered Employees
<br />Actives
<br />562
<br />634
<br />631
<br />634
<br />Retirees
<br />495
<br />516
<br />294
<br />516
<br />Total Participants
<br />1,157
<br />1,150
<br />925
<br />1,150
<br />Actuarial Present Value of Projected Benefits
<br />Actives
<br />$ 36,912,653
<br />$ 38,733,713
<br />$ 1$,288,112
<br />52,021,825
<br />Retirees
<br />65,823,511
<br />75,106,952
<br />8,937,601
<br />64,044,553
<br />Total APVPB
<br />102,736,164
<br />113,840,666
<br />22,225,713
<br />136,066,379
<br />Actuarial Accrued Liability (AAL)
<br />Actives
<br />30,351,115
<br />$2,460,860
<br />10,231,531
<br />42,712,391
<br />Retirees
<br />65,823,511
<br />75,106,952
<br />8,937,601
<br />84,044,553
<br />Total AAL
<br />96,174,626
<br />107,587,812
<br />19,169,132
<br />126,756,944
<br />Actuarial Value of Assets
<br />20,412,616
<br />26,019,812
<br />-
<br />26,019,812
<br />Unfunded AAL (UAAL)
<br />75,762,010
<br />81,568,000
<br />19,169,132
<br />100,737,132
<br />Normal Cost
<br />925,370
<br />910,811 1
<br />374,011
<br />1 1,284,822
<br />Percent funded
<br />21.2%
<br />24.2%
<br />0.9%
<br />20.5%
<br />Reported covered payroll
<br />44,512,395
<br />46,879,660
<br />48,879,660
<br />46,879,660
<br />UAAL as percent of payroll .
<br />170.2%
<br />174.0 %
<br />40.9%
<br />214.9%
<br />The funded ratio (the ratio of the Actuarial Value of Assets divided by the Actuarial Accrued
<br />Liability) is 20.5% as of July 1, 2015. Covered payroll as of July 1, 2015 was reported to be
<br />$46,879,6.60. The Unfunded Actuarial Accrued Liability, expressed as a percentage of payroll,
<br />is 214.90A as of this date..
<br />Changes. Since the Prior Valuation
<br />Even if all of our `previous assumptions were met exactly as projected, liabilities generally
<br />increase over time as active employees get closer to the date their benefits are expected to
<br />begin. Given the uncertainties involved and the long term nature of these projections, our
<br />prior assumptions were not and are likely never to be exactly realized. Nonetheless, it is
<br />helpful to review why results are different than we anticipated.
<br />In comparing results shown in the exhibit above, we can see that the Unfunded Actuarial
<br />Accrued Liability (URAL) increased by roughly $24,975,000, between July 1, 2013 and July 1,
<br />2015. Over this period, we anticipated additional contributions to the trust, additional costs
<br />accrued for active employees, present values increased for the passage of time and some
<br />benefits paid to retirees. The impact of that activity was an expected UAAL of roughly
<br />$76,749,000. Thus, the actual UAAL of $100,737,132 is about $23,988,000 higher than
<br />expected.
<br />Bickmore s>
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