BICKMORE & ASSOCIATES, INC. 2-2016

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Other Post -Employment Benefit P Actuarial Val Glossary is of the City of " " as of July 1, 2015 Actuarial Accrued Liability (AAL) — Total dollars required to fund all plan benefits attributable to service rendered as of the valuation date for current plan members and vested prior plan members; see "Actuarial Present Value" Actuarial Funding Method — A procedure which calculates the actuarial present value of plan benefits and expenses, and allocates these expenses to time periods, typically as a normal cost and an actuarial accrued liability Actuarial Present Value Projected Benefits (APVPB) — The amoun.t:presently required to fund all projected plan benefits in the future, it is determined by disco,uriY ng the future payments by an appropriate Interest rate and the probability of nonpayment,", Ancireciate — An actuarial funding method under which the excess of:",the actuarial present value of projected benefits over the actuarial accrued liability ia''>layelly spread over the earnings or service of the group forward from the valuation date to the,.assumet. exit date, based not on individual characteristics but rather on fhe`r;pharacterishcs ,of hegroup as a whole Annual Required Contribution (ARC) — The..amount the employer, would contribute to a defined benefit OPEB plan for a given year, it, is thb,`sum of thhi,normal cost and some amortization (typically 30 years) of the, unfunded abtua,Yial accrued liability Annual OPEB Expense — The OPEB expense reportedin the Agency's financial statement, which is comprised of three elements: the ARC`; interest on the net OPEB obligation at the beginning of the year and an'ARC=adjustment. Attained_ Age Normal Cost(AANQ — An actuarial funding method where, for each plan member, the excess of the actuarial present value of benefits over the actuarial accrued liability (determined, urider. the unit credit method) is levelly spread over the individual's projected earnings or �ervice,forward from, the valuation date to the assumed exit date CaIPER9 — Many state- gavernmerits maintain a public employee retirement system; CaIPERS is the California program, covering all eligible state government employees as well as other 'employees of other governments within California who have elected to join the system Defined Benefit (DB) — A pension or OPEB pian which defines the monthly income or other benefit which the plan .member receives at or after separation from employment Defined Contribution (DC) —A pension or OPEB plan which establishes an Individual account for each member and specifies how contributions to each active member's account are determined and the terms of distribution of the account after separation from employment Entry Ape Normal Cost (EANC) — An actuarial funding method where, for each individual, the actuarial present value of benefits is levelly spread over the Individual's projected earnings or service from entry age to the last age at which benefits can be paid B ckmore (1 1,11.1