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10A Action Items 2018 1105
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10A Action Items 2018 1105
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10/30/2018 7:09:23 PM
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10/30/2018 7:09:16 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Agenda
Document Date (6)
11/5/2018
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PERM
Document Relationships
PFA Reso 2018-002
(Approved by)
Path:
\City Clerk\City Council\Resolutions\2018
Reso 2018-135
(Approved by)
Path:
\City Clerk\City Council\Resolutions\2018
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<br />46 <br /> Safety Plan <br />Valuation <br />Date (June 30) <br />Entry Age Normal <br />Accrued Liability <br /> <br />Plan’s Market <br />Value of Assets <br />Unfunded <br />Accrued Liability Funded Ratio(1) <br />2014 $252,152,308 $201,529,884 $50,622,424 79.9% <br />2015 258,040,481 $194,087,607 $63,952,874 75.2 <br />2016 266,875,519 185,539,073 81,336,446 69.5 <br />2017 278,981,401 195,979,963 83,001,438 70.2 <br /> (1) Based on the market value of assets. Source: CalPERS Actuarial Report Dated August 2016 and August 2018. The City also maintains a second safety plan applicable to PEPRA employees (i.e., those hired on or after January 1, 2013); however, given the limited number of employees in this <br />plan, the fiscal impact of this plan on the City’s finances is de minimis. <br />Projected Annual Contributions. The following tables show the City’s actuarily- <br />determined required employer contribution for Fiscal Year 2019-20 and projected employer contributions for Fiscal Years 2020-21 through 2024-25 for each of the Plans and assume a 7.25% annual rate of return for Fiscal Year 2017-18. The following information was provided to <br />the City by PERS and has not been reviewed for accuracy or audited by the Auditor. PERS is responsible for the assumptions, estimates and data that are used to create the funded ratios. <br /> Miscellaneous and Safety Plans <br />Fiscal <br />Year <br />Total City <br />Contribution <br />2018-19 $15,058,080 <br />2019-20 17,457,165 <br />2020-21 19,225,214 <br />2021-22 21,053,960 <br />2022-23 22,564,631 <br />2023-24 23,534,482 <br />2024-25 24,573,385 <br />Source: PERS Actuarial Reports Dated July 2018 and August 2018. According to PERS, due to the change in the discount rate for the next valuation in <br />combination with the 5-year phase-in ramp, the increases in the required contributions are expected to continue for six years from Fiscal Year 2019-20 through Fiscal Year 2024-25. <br />
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