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Home My WebLink AboutCC Resolution 13731 (Healthcare Plan Actuarial Valuation Report)RESOLUTION NO. 13731 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE RETIREE HEALTHCARE PLAN JUNE 30, 2013 ACTUARIAL VALUATION REPORT WHEREAS, the Governmental Accounting Standards Board (GASB) establishes financial accounting and reporting standards for state and local governmental entities, which recognize GASB as the official source of generally accepted accounting principles for state and local government; and WHEREAS, GASB 45 establishes standards for accounting and financial reporting of "Other Post Employment Benefits" (OPEBs) and requires each public agency to engage a certified actuary to calculate several actuarial measures estimating the current and future costs and liabilities of an agency's OPEBs; and WHEREAS, the City entered into an agreement with Bartel Associates LLC to prepare the GASB 45 required compliance report for an OPEB actuarial valuation as of June 30, 2013; and WHEREAS, in San Rafael, the only OPEB offered is medical which varies by bargaining unit; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael reaffirms the policy to not increase the cap on City contributions to retiree medical premiums and hereby accepts the June 30, 2013 Actuarial Valuation prepared by Bartel Associates LLC (attached herein). I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday the 2nd day of June 2014, by the following vote, to wit: AYES: COUNCIL MEMBERS: Bushey, Colin, Connolly, McCullough & Mayor Phillips NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ESTHER C. BEIRNE. City Clerk CITY OF SAN RAFAEL RETIREE HEALTHCARE PLAN June 30, 2013 GASB 45 Actuarial Valuation Doug Pryor, Vice President Harish Ganesan, Actuarial Analyst Tak Frazita, Associate Actuary Bartel Associates, LLC May 6, 2014 CONTENTS s Topic Benefit Summary Data Summary Actuarial Assumptions Highlights Actuarial Methods Assets Results Actuarial Certification Exhibits Premiums Participant Statistics Actuarial Assumptions Definitions �, .cIfe ts,cih of san ra fael.pro}u 1,\upeb�201± 1 a[Iep")f,ba 1 -1 -^S -iii, ;an rafaeici 13-'sb-30 opeb vale ahun twat iesal ts dncx Page 1 5 7 11 13 17 27 E -- 1 E -- 3 F,-33 E-37 BENEFIT SUMMARY May 6, 2014 2 Elected Officials, All other Unrepresented Bargaining Units' Mid Management & Management a Eligibility' 0 Retire directly from City: * Age 50 (age 55 if hired > 7/1/11 for Miscellaneous) with 10 years service (including reciprocity) or * 30 years service (Miscellaneous), 20 years service (Safety); or * Age 70 e Disability retirement N Benefit 0 Hired < 1/1/09 Full premium/cap ■ Hired < 1/l/10 Up to cap N Hired> 1/1/09 PEMHCA Min 10 Hired> 1/1/10 PEMHCA Min' 0 Surviving 0 Benefit continues to surviving spouse Spouse Benefit Annual active conversion of 50 hours of sick leave to HRA (excluded from valuation) Age 52 and 5 or age 70 for Miscellaneous PEPRA members, age 50 and 5 or age 70 for Safety PEPRA members City match 2% Firefighters salary to HRA (excluded from valuation) May 6. 2014 1 BENEFIT SUMMARY 0 Medicare E Hired< 4/1/07 Full in None Part B reimbursement is Hired > 4/1/07 None N Other OPEB 0 No Dental, Vision, or Life Benefits 0 Contributions Fiscal Year Pav-Go Trust Total 2012/1131 $2,073,000 $ 500,000 $ 2,573,000 2 2011/12 /-,124.000 - 2,124,000 201011 1,808,000 (1,000,000) 808,000 2009/10 1,755,000 (1,000,000) 755.000 2008,,09 1,686.000 (1,000,000) 686,000 May 6, 2014 2 BENEFIT SUMMARY BEN Bargaining Unit Monthly Cap Min Date° SEIU Child Care Unit $543 1/l/10 Unrepresented Mid -Management Employees Retired < 12/1/01: $442 Retired > 12/ 1 /01: Full I / 1 /09 prem Hired> 4/1/07: $600 San Rafael Fire Chief Officer's Association $557 1/l/10 j San Rafael Firefighters' Association, I.A.FF., Local $557 1/l/10 11775 j San Rafael Police Association $386 1/l/10 San Rafael Police Mid -Management Association $566 1/l/10 SEIU 1021 $752 1/l/10 Public Employees Bargaining Unit (PEU) Local 1 $659 1/1/10 Unrepresented Management Employees and Council Hired < 4/1/07: Full prem. 1/1/09 City Clerk and Elected Part -Time City Attorney Hired > 4/1/07: $600 Western Council of Engineers (WCE) $752 1/l/10 Employees hired on or after date receive only PEMHCA minimum ($115 in 2013, $119 in 2014). May 6, 2014 3;^ BENEFIT SUMMARY This page intentionally blank 'ala} 6.2014 4 DATA SUMMARY Actives b Data as of April 2010. Data as of December 2011. s Data as of October 2013. May 6, 2014 i ■Count -- ----- — - ■ Average • Age • Retirement Age • Monthly Benefit 5 DATA SUMMARY Retirees 6/_30/07 ! 6/30/099 i 247 291 66.6 65.9 56.6 539 $ 480 $ 537 Data as of pril 2010. Data as of December 2011 Data as of October 2013 May 6. 2014 6 6/30/1110 6/30/1311 308 328 i I 66.7 67.4 54.7 55.2 $ 573 $ 554 j 6/30/07 6/30/096 6/30/11' 6/30/138 ■ Count • Tier 1 408 377 1 326 294 1 • Tier 2 n/a 4 35 76 • Total 408 381 361 370 ■ Average • Age 44.7 44.3 i 44.6 44.0 • City Service 11.6 10.7 10.9 11.1 • Pay $ 72,800 $ 77,900 $ 77,000 $ 77,900 ■ Total Payroll (in 000's) 29,719 29,689 27,784 28.808 b Data as of April 2010. Data as of December 2011. s Data as of October 2013. May 6, 2014 i ■Count -- ----- — - ■ Average • Age • Retirement Age • Monthly Benefit 5 DATA SUMMARY Retirees 6/_30/07 ! 6/30/099 i 247 291 66.6 65.9 56.6 539 $ 480 $ 537 Data as of pril 2010. Data as of December 2011 Data as of October 2013 May 6. 2014 6 6/30/1110 6/30/1311 308 328 i I 66.7 67.4 54.7 55.2 $ 573 $ 554 May 6,2014 7 ACTUARIAL ASSUMPTIONS HIGHLIGHTS Assumption June 30, 2011 Valuation June 30, 2013 Valuation 0 Discount • Select & ultimate discount rates • 7.50% —i Rate based on funded status: 2011,112 7.32% 201211113 7.28% 2013/14 7.39% 2014/15 7.47% 2015/16+ 7.50% 0 Payroll I 9 Aggregate increases --- 3.25% Same Increases i a Merit Increases — Same as 6130/2011 MCERA assumptions May 6. 014 8 ACTUARIAL ASSUMPTIONS HIGHLIGHTS Assumption June 30, 2011 Valuation June 30, 2013 Valuation N Valuation o June 30, 2011 e June 30, 2013 Date * 2012/13 & 2013/14 o 2014/15 & 2015/16 0 Funding * Pay -go with no 401(h) account e Same Policy reimbursement o Total payment not < ARC o City transferred assets to CalPERS CERBT (Option 1) a General e 3.25% o Same Inflation N Trust Asset * 7.50% * 7.50% (CERBT MFAD 0.11%) Return 0 City Return o 4.25% o 4.00% May 6,2014 7 ACTUARIAL ASSUMPTIONS HIGHLIGHTS Assumption June 30, 2011 Valuation June 30, 2013 Valuation 0 Discount • Select & ultimate discount rates • 7.50% —i Rate based on funded status: 2011,112 7.32% 201211113 7.28% 2013/14 7.39% 2014/15 7.47% 2015/16+ 7.50% 0 Payroll I 9 Aggregate increases --- 3.25% Same Increases i a Merit Increases — Same as 6130/2011 MCERA assumptions May 6. 014 8 ACTUARIAL ASSUMPTIONS HIGHLIGHTS F L Assumption June 30, 2011 Valuation June 30, 2013 Valuation ■ Healthcare Non -Medicare Medicare Non -Medicare Medicare Trend Year All Plans Year All Plans 2009 n/a 2009 n/a 2010 n/a 2010 n/a 2011 Actual 2011 premiums 2011 Actual 2011 premiums 2012 Actual 2012 premiums 2012 Actual -20 12 premiums 2013 9.0% 9.4% 2013 Actual 2013 premiums 2014 8.5% 8.9% 2014 Actual 2014 premiums 2015 8.0% 8.3% 2015 8.0% 8.3% 2016 7.5% 7.8% 2016 7.5% 7.8% 2017 7.0% 7.2% 2017 7.0% 7.2% 2018 6.5% 6.7% 2018 6.5% 6.7% 2019 6.0% 6.1% 2019 6.0% 6.1% 2020 5.5% 5.6% 2020 5.5% 5.6% 2021-f 5.0% 5.0% 2021-+ 5.0% 5.0% ■ Cap Increases None • Same May 6, 2014 9 ACTUARIAL ASSUMPTIONS HIGHLIGHTS Assumption June 30, 2011 Valuation June 30, 2013 Valuation ■ Actuarial 2% (Management benefit 0% Loading uncapped) May 6- 2014 10 ACTUARIAL METHODS Method June 30, 2011 Valuation June 30, 2013 Valuation j ■ Cost Method ■ Entry Age Normal ■ Same ■ Amortization i I ■ Level percentage of payroll ■ Same Method ■ Actuarial ■ MCERA 401(h) account ■ Investment gains and losses Value of actuarial value projected spread over 5 -year rolling Assets forward to 6/30/12. period ■ Not less than 80% nor more ■ Not less than 80% nor more than 120% of market value than 120% of market value ■ Amortization ■ 23 -year fixed (closed) period ■ 21 -year fixed (closed) period j Period for 6/30/12 UAAL for 6/30/14 UAAL ■ Implied ■ Employer cost for allowing retirees to participate, irrespective of Subsidy employer contribution ■ Community rated plans not required to value implied subsidy ■ Implied Subsidy not included Mav 6, 2014 11 ACTUARIAL METHODS This page intentionally blank May 6. 2014 12 ASSETS Market Value of Plan Assets12 (000's Omitted) MCFR:a asset smoothing throuLh 6'3t)i 12. Rolling 5 year smoothing starting in '_'012, 13. h:- May 6, 2014 14 2007/08 2008/09 2009/10 1 2010/11 ; 2011/12 2012/13 ■MVA (boy) $14,525 $12,995 $9,568 $ 9.585 $10,889 $11,178 • Contribution 1,119 - - - - 500 • Benefit Payments (1,000) (1,000) (1,000) (1,000) - - i • Expenses n/a n/a n/a n/a n/a 0 • Investment Return (1,649) (2,427) 1,017 2,303 I 289 988 ■MVA (eoy) 12,995 9,568 9,585 10,889 11,178 12,666 i ■Approximate (11.4%) (18.7%) 10.6% 24.0%1 2.7% 8.8% Return 1' 401(h) account transferred to CERBT 6/26/ 13. Amounts revised from previous valuation based on updated information provided by City. May 6, 2014 13 ASSETS Actuarial Value of Plan Assets (000's Omitted) 2007!08 2008/09 2009/10 i 2010/11 2011/12 2012/13 NAVA (boy) $ 14,563 $ 13,784 $ 12,773 $ 11,008 $ 10,861 $ 11,130 ! • Contribution i 1,119 - _ _ _ 500 • Benefit Payments (1,000) (1,000) (1,000) (1,000) - !899 •Credited Return ( ) , 1 (1) i 765 ( ) 853 269 875, I NAVA (eo-y)_ 1 13,784 12.773 11,008 1 10,861 11,130 12,505 i ■Approximate (6./20/,,0');j (0.10/0) i (6.0%) 7.7°a 2.5% i 7.9% Return MCFR:a asset smoothing throuLh 6'3t)i 12. Rolling 5 year smoothing starting in '_'012, 13. h:- May 6, 2014 14 20% - ---- ------------------------- ----------------------------------------------------'---- - 15% -- -------------------------------------------------------------------- -- This page intentionally blank 10 % ----------------------------------- ------------------------------ ..----------- - --------- ------------ ---- ------------------ ----------------------------- aII�: 5%------------------------------------------------------------------------ -----------=-'_.------- ---------, �:.--- -------------------- ---------- - - - -- "------------ --------------------- ---------------- (Sof°) ------ ---------------- _, -- ------- --------- ------------------ ------------ --------------- (10%) -------- ----- -.. ------------------ -,` ------------ ---- ----------------------- (15%) ---- __..__ 4......._.__-,_.........___- ---------------------- (20%) 07/08 08/09 09/10 1 10/11 11/12 12/13 -MVA AIAR/0 18.7% 10.6% I 24.0% 2.7% 8.8% Expected Return 7.8% 7.8% 7.8% 7.8% ! 7.5% 7.5% AVA -6.2% -0.1% -6.0% 7.7% 2.5% 7.9% I ,mow,„<� .w'•�,. May 6. 2014 15 ASSETS i-_— J' This page intentionally blank May 6. 2014 16 aII�: May 6. 2014 16 RESULTS RESULTS Historical Funded Status Actuarial Obligations (000's Omitted) $60,000 (000's Omitted) - - - -- r r 6/30/07 M 6/30/09 6/30/11 6/30/13 ■Present Value of Benefits I • Actives $ 41,880 $ 37,131 $ 14,105 $ 12,988 • Retirees 27,714 35,196 25,802 24,462 • Total 69,594 72,327 39,907 37,450 ■ Actuarial Accrued Liability ---- • Actives 25,053 21,066 9,354 9,087 • Retirees 27,714 35,196 25,802 24,462 • Total 52,767 56,262 35,156 33,549 0Assets 14,563 12,773 9,8611' 12,505 ■Unfunded Liability 38,204 43,489 251295 21,044 ■Normal Cost 2,022 1,805 706 580 ■Pay -Go Cost 1,686 2,045 2,282 2,256 14 Adjusted for Sl million reimbursement during 2011/12 treated as 2010/11 payment. ..3 May 6, 2014 17;a;° RESULTS Historical Funded Status (000's Omitted) $60,000 - - - -- r r -- ; ' ' $40.000 I I 530,000 I t E--- - - i- - ---- $20,000 -- i I $10,001) i ; � I 4 {I so I f SII 630/07 630.09 6/30x11 6/30%13 =Retirrepa)-go =_7Retiree.lAl_ less pay -go ='_ActiNeA:AL AAA --\1V\ May 6. 2014 18 Mav 6, 2014 19 RESULTS This page intentionally blank May 6, 2014 20 AAL (Gain)/Loss • Actual (cry, $35,156 • Expected (&, 6/330/13 37,429 • Changes • Premiums < Expected (2,893) • No Actuarial Loading (688) • Discount Rate (16) • Waived re-election 24 • Demographic/Other (307) • Total (3,880) • Actual (d), 6/30/13 33,549 Mav 6, 2014 19 RESULTS This page intentionally blank May 6, 2014 20 RESULTS Annual Required Contribution (ARC) (000's Omitted) 6/30/2011 Val 6/30/2013 Val j 2012/13 2013/14 2014/15 2015/16 ■ Annual Required Contribution - $ I • Normal Cost $ 706 $ 699 $ 580 $ 577 • UAAL Amortization 1,728 1,797 1,532 1,571 • Total ARC 2,434 2,496 2,112 2,148 ■ Projected Payroll 28,687 29,619 29,744 30,711 ■ Annual Required Contribution - % j I • Normal Cost 2.5% 2.4% 1.9% 1.9% i • UAAL Amortization 6.0% 6.1% 5.2% 5.1% • Total ARC. 8.5% 8.4% 7.1% 7.0% I May 6, 2014 21 ` RESULTS Annual Required Contribution (ARC) (000's Omitted) $3.000 ! ws NO I .' ....... M ....... _... ...... � 5 t Y "q "K -.Et"r, r;4r�x.�'+z;F3 L;h°,": r`s c-'.•..�.s.�.z�'` �,r r< s,'"�� _i 13/13 13:1=3 _ 14,'15 15;Ib !El Nonnal Cost- -- 706 — — j --- -691) — 577 Amortization: 1.72$ --- 1,797 E --1 ,-32 — 1,571 ARC -- --�- 2.434 2.496 2.112 2.149 1 Ma} b, 2014 22 RESULTS Amortization Bases (000's Omitted) N' r Mav 6. 2014 24 6/30/2011 Val 6/30/2013 Val j 6/30/12 6/30/13 6/30/14 1 6/30/15 ■ Outstanding Balance • Initial UAAL $ 44,908 I $ 45,034 $ 45,116 $ 45,143 • (Gain)/Loss ➢ 2009 val (4,287) (4,299) (4,307) (4,310) ➢ 2011 val (26,626) (26,700) (26,749) (26,765) ➢ 2013 val - - (2,862) 1 (2,864) • NOO (projected) 11,575 11,788 9,400 9,262 • Total 25,571 25,822 20,598 ; 20,467 May 6, 2014 23 RESULTS Amortization Pavments (000's Omitted) 6/30/2011 Val 6/30/2013 Val 2012/13 2013/14 2014/15 2015/16 ■Payment I � •Initial lAAL $ 3,035 $ 3,134 $ 3,356 $ 3,465 j • (Gain)/LLoss t ➢2009 val (290) (299) ; (320) (331) f ➢ 2011 val (1,800) (1,858) ; (1,990) E i 1-1.w-')013 gal (213) (220) • NOO (projected) 782 820 699 ! 711 • Total 1.728 1 1,797 1,532 1.571 • Average years -- ------ ---- — 23.0 i ---� -- 22.0 ! 21.0 ---- 20.0 1 N' r Mav 6. 2014 24 RESULTS Estimated Net OPEB Obligation (NOO) 15 (000's Omitted) Actual Estimated 2012/13 2013/14 2014/15 2015/16 1 ■ NOO at Beginning of Year $ 9,594 $ 9,516 $ 9,400 $ 9,262 ■ Annual OPEB Cost • Annual Required Contribution • Interest on NOO • Adjustment for NOO . Annual OPEB Cost ■ Contributions • Benefit Payments'(' • Trust Pre -Funding • Total Contribution I ■ NOO at End of Year 2,434 2,496 2,112 2,148 843 704 705 695 (782)1 (820) (699) (711) 2,495 ; 2,380 2,118 2,132 2,073 2,210 2,256 2,354 500 286 - - 2,573 2,496 2,256 2,354 9,516 9,400 9,262 9,040 13 NOO through 6/30/13 as calculated by Bartel Associates; diners from amounts reported in City CAFR. k` Estimated benefit payments for 2013/1 4, 2014/15, & 2015/16. t May 6, 2014 25 FF% RESULTS NOO Prosection (000's Omitted) Beginning Contribution 17 Annual k of Year OPEB f Contribution Fiscal Net OPEB Benefit Pre- Total Cost 1 as % of Obligation Pmts Fund Contrib! (AOC) Payroll r -__Year 1 2014/15 $ 9,400 $ 2,256 $ - $ 12561 $ 2,118 $ 29,744 __Payroll _ 7.6% 201516 1 9,262 j 2,354; - 2,354; 2,132 30,711 7.7% 2016.17 ; 9,040 2,459' - 2,4591 2,139 31.709 7.8% 2017/18 1 8320 2,571'/ - 2,571' 2,38 32,740 7.90/0 2018/19 8,288 2,693 - 2.693 2,126 33,804 jk 8.0% 2019/20 7.720 i 2.793 - 1793', 2,104 34.902 8.0°0 2020/21 7,031 2.874 - 2,874 2,074 36,037 8.0% 2021/Z- 6,231 2.94$ - E 2,948 2,039 37,208 7.9% 2022!23 5,322 3,014; - I 3,014 1,997 - 38,417 7.8°"0 f 2023124 4,305 ? 3,100' '-'-_- 3.100/ 1,950 39,666 7_80/'0 Based on benefits paid to retirees May 6, 2014 20 For illustrative purposes- amortization amount allocated on AAL. i Mai 6. 2014 28 RESULTS ,. Actuarial Oblieations June 30, 2013 (000's Omitted) Miscellaneous Safety Total ■ PVPB • Actives $ 10,057 $ 2,931 $ 12,988 • Retirees 14,026 10,436 24,462 • Total 24,083 13,367 37,450 ■ AAL • Actives 7,314 1,773 9,087 • Retirees 14,026 10,436 24,462 • Total 21,340 12,209 33,549 ■ Assets 18 7,954 4,551 12,505 ■ Unfunded Liability 13,386 7,658 j 21,044 In Normal Cost (14/15) 434 146 580 ■ Pav Go Costs (14/15) 1,327 929 2,256 s For illustrative purposes, assets allocated on AAL. May 6, 2014 27 RESULTS Annual Required Contribution (ARC) 2014/15 (000's Omitted) Miscellaneous Safety Total 1 ■ ARC- $ • Normal Cost $ 434 $ 146 $ 580 I • UAL Amortizationl9 983 549 1,532 • Total ARC 1,417 695 ' 2,112 ■ Projected Payroll 16,172 13,573 ; 29,744 ■ARC-% • Normal Cost ': 2.7°'o 1.10/10 • UAL Amortization 6.1 0r6 4.0° i 5.2% j • Total ARC �i 8.8% 5.1% I 7.1% 1 For illustrative purposes- amortization amount allocated on AAL. i Mai 6. 2014 28 ACTUARIAL CERTIFICATION This report presents the City of San Rafael Retiree Healthcare Plan ("Plan") June 30, 2013 actuarial valuation. The purpose of this valuation is to: ■ Determine the Governmental Accounting Standards Board Statement Nos. 43 and 45 June 30, 2013 Benefit Obligations, ■ Determine the Plan's June 30, 2013 Funded Status, and ■ Calculate the 2014/15 and 2015/16 Annual Required Contributions. The report provides information intended for reporting under GASB 43 and 45, but may not be appropriate for other purposes. Information provided in this report may be useful to the City for the Plan's financial management. Future valuations may differ significantly if the Plan's experience differs from our assumptions or if there are changes in Plan design, actuarial methods or actuarial assumptions. The project scope did not include an analysis of this potential variation. The valuation is based on Plan provisions, participant data, and asset information provided by the City as sununarized in this report, which we relied on and did not audit. We reviewed the participant data for reasonableness. 'To the best of our knowledge, this report is complete and accurate and has been conducted using generally accepted actuarial principals and practices. Additionally, in our opinion, actuarial methods and assumptions comply with GASB 43 and 45. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein. Respectfully submitted, Doug Pryor, ASA, EA, MA AA Vice President Bartel Associates, LLC May 6, 2014 May 6, 2014 29 ' d' ACTUARIAL CERTIFICATION This page intentionally blank r' k May 6, 2014 30 1 PREMIUMS 2013 PEMHCA Monthlv Premiums Bay Area PORAC 581.00 1,088.00 1,382.001 418.00 833.00 1,331.00 f: May 6, 2014 E-1 Plan j Anthem Select Anthem Traditional 1 Blue Shield I Blue Shield NetValue Kaiser UnitedHealthcare PERS Choice PERS Select PERSCare i? May 6. 201.1 PREMIUMS Non -Medicare Eligible Medicare Eligible Plan Single 2 -Party Family Single 2 -Party Family Blue Shield $784.63 $1,569.26 $2,040.04 $261.32 $522.64 $783.96 Family Blue Shield NetValue 670.21 1,340.42 1,742.551 261.32 522.64 783.96 $682.24; $1,023.36 Kaiser 668.63 1,337.26 1,738.44 288.37 576.74 865.11 836.591 PERS Choice 667.03 1,334.06 1,734.28 325.74 651.48 977.22 1,830.43 PERS Select 487.20 974.40 1,266.721 325.74 651.48 977.22 589.94 ! PERSCare 1,083.11 2,166.22 2,816.09 370.43 740.86 1,111.29 PORAC 581.00 1,088.00 1,382.001 418.00 833.00 1,331.00 f: May 6, 2014 E-1 Plan j Anthem Select Anthem Traditional 1 Blue Shield I Blue Shield NetValue Kaiser UnitedHealthcare PERS Choice PERS Select PERSCare i? May 6. 201.1 E-2 PREMIUMS 1 2014 PEMHCA Monthlv Premiums Bay Area Non Medicare Eligible Medicare Eligible Single 2 -Party -- Family Single ; 2 -Party Family- - $ 657.33 $1,314.66 $1,709.06 $341.12 $682.24; $1,023.36 728.41 1,456.82 1,893.07 341.12 682.24 1,023.36 836.591 1,673.181 2,175.13 298.21 i 596.42 894.63 l 1 704.01 1,408.02 1 1,830.43 298.21 596.42' 894.63 742.721 1,485.44 I 1,931.07 ( 294.97 ' 589.94 ! 884.91 764.241 1.528.48 1,987.02 193.33: 386.66 !� 579.99 690.77 1,381.54 1,796.00 307.23 614.46; 921.69 661.52 1,323.04 1,719.95 307.23 614.46 921.69 - L-------- --- 1 720.041 1,440.08 1,872.10 327.36; 654.72', 982.08 E-2 PARTICIPANT STATISTICS F 7.{ - -- - " Participant Statistics June 30, 2013 Miscellaneous Police Fire Total ■ Actives • Count • Average Age • Average Service • Average Pay • Payroll ($000s) ■ Retirees > Count < 65 Count > 65 Total • Average Age • Average Ret. Age 2 Excludes 35 surviving spouses �f May 6, 2014 244 62 64 370 46.5 39.9 38.6 44.0 11.5 11.4 9.4 11.1 $ 64,192 $ 103,374 ($ 105,255 $ 77,860 15,663 6,409 6,736 28,808 60 i 34 49 143 99 32 54 185 159 66 103 328 68.7 65.01 66.8 67.4 57.9 50.8 ; 53.7 55.2 v Count > 65 j 76 1? ! 45 153 r Total 138 76 1 94 E-3{ • Average Age 68.6 PARTICIPANT STATISTICS F � Participant Statistics June 30, 2011 Miscellaneous Police Fire Total ■ Actives 1 • Count i 245 59 57 361 • Average Age 46.2 39.8 42.7 44.6 • Average Service 10.3 10.8 13.4 10.9 • Average Pay $ 62,374 f $ 103,737 $ 111,962 $ 76,964 i . Payroll ($000s) 15,282 6,120 6,382 27,784 Is Retirees , Count < 65 t 62 44 49 155 v Count > 65 j 76 1? ! 45 153 r Total 138 76 1 94 308 • Average Age 68.6 64.3 66.01 66.7 f • Average Ret. t Age, --- �8.� -- -- — — -- -- _' -- — 50.4j1________ �2-� ____---I 54.7 i Excludes 29 surviving spouses May 6, 2014 E-4 l PARTICIPANT STATISTICS Participant Statistics June 30, 200923 Excludes waived participants. May 6, 2014 L-6 Miscellaneous Police Fire Total ■ Actives • Count 254 66 61 381 • Average Age 46.0 38.7 43.2 44.3 • Average Service 10.2 9.6 14.4 10.7 • Average Pay $ 64,400 $ 103,000 $ 106,900 $ 77,900 • Payroll ($000s) 16,370 6,797 6,522 29,689 ■ Retirees Count < 65 64 51 49 164 Count > 65 68 24 35 127 Total 132 75 84 291 • Average Age 68.5 62.4 64.9 65.9 • Average Ret. Age 24 58.0 49.0 52.2 53.9 Data as of March/April 2010. June 30, 2009 active counts approximately 5010' higher. `a Excludes 28 surviving spouses Ir;zY« ,r„ass ;x May 6, 2014 E-5 i PARTICIPANT STATISTICS Medical Plan Participation 25 Retirees Medical Plan Actives < 65 >65 Total Blue Shield 15% 24% 19% 21% Blue Shield NetValue ---_- - ----- --- - 6% --- -- I 2% 194. 2% 11 jKaiser 69°10 � 5P, 41% i 45% 'PERS Choice _ 5% i 11 4% 12_% 9% ,PERSPERS Select 0% 1%! 0° o 1 - ----- PERS Care - --- --- --- - 2% -+ - - --- - 5°'0 --- -- ----- i 26°% — 17% ! PORAC 40,00 E 12:'0; 0.l i l:o' 60/o Total_ 1 100% , -- - - -- -------100°'0 -' --100% - --100% Excludes waived participants. May 6, 2014 L-6 PARTICIPANT STATISTICS This page intentionally blank i;kd2,41 �4, 7D -X, 0 May 6, 2014 E-7 PARTICIPANT STATISTICS L Active Medical Coverne Medical Plan Single 2 -Party Family Waived Total Blue Shield 7 17 47 Blue Shield NetValue 6 3 9 18 Kaiser 95 - 216 PERS Choice 5 4 5 14 PERSCare 12— 5 PORAC 4 7 11 Waived 59 59 i'Total 134 55 1?? i 59 3-110 May 0. 2014 E-8 PARTICIPANT STATISTICS Retiree Medical CoveraLye — Under Aye 65 Medical Plan 1 Region Single 2 -Party I Family Waived i Total I Blue Shield Bay Area 17 6 19 - 32 North I - - - 1 South - I - - 1 Blue Shield/Net Value I Bay Area 2 ! - 1 - 3 Kaiser I Bay Area 29 121 16 - 66 PERS Choice PERS Select PERSCare IPORAC Waived Total %lay 6, 2014 E-9 Sacramento - 1 - - 1 North Medical Pian Region ; Single 2 -Party 1 Family Waived Total 1 LA 1 13 ( 3 - 28 Sacramento 2 South 1 3 1 Worth ! 2 - - Out of State 1 South I - - - I ! Blue Shield;Net Value Bav Area 2 - - - - fSacramento 2 Sacramento 1 - - - Bad Area 31 1 - 1 North 1 - - - 2 - 1 _66 - _3 Out of State 1 1 - - - 2 I Bay Area 2 - - - 2 2 Bay Area 2 1 2 - 2 i 7 5 North 1 - - - 1 -- ----- Out of State - 1 - - 1 2 i 3 8 - 117 - - - 2 j ------------ `6 - -- - - ----- '-- 10 ---1 PERSCare 65 141 134 3 30 143 E-9 PARTICIPANT STATISTICS (� Retiree Medical CoveraLye — Over Age 65 Medical Pian Region ; Single 2 -Party 1 Family Waived Total 1 Blue Shield Bay Area 12 13 ( 3 - 28 Sacramento 2 1 - - 3 1 Worth ! 2 - - 2 j South I - - - I ! Blue Shield;Net Value Bay Area _ - t - - I fSacramento - 1 Kaiser Bad Area 31 34 1 - { 1 2 - _ - _66 - _3 IrSacramento LA 1 - --- ----�- - - ---- - I j , ;South 1 1 2 PERS Choice Out of State 1 Bay Area - ! 1 - ? - 2 i 7 -- - -; Sacramento — -- ----- -- ---I- North 2 i ,, ; i I South 2 f - - - 2 j ------------ - Out of State _ 9 - -- - - ----- '-- 10 ---1 PERSCare ;Bay Area 15 15 - 30 North ' 2 - - 4 Out of State 12 1 - - 13 PORAL 2 � ! Waived- - --- --- -- - - - --- ; - — -- - - - ----------- -- - - - I 1 � -- -- - Total-- 93 j $4 4 4 j 185 i %lay 6. 2014 E-10 Ns PARTICIPANT STATISTICS Actives by Aze and Citv Service Miscellaneous City Service Age 1 14 5-9 1 10-14 15-19 24-24 >_ 25 Total <25 8 5 2 - - - - 15 i 25-29 4 3 5 - - - j - 12 30-34 4 5 6 3 1 - f - 19 35-39 1 j 6 11 10 1 - - 29 40-44 1 4 9 7 3 3 1 28 45-49 2 2 6 8 10 4 3 35 50-54 1 4 5 7 7 8 6 38 55-59 - 5 13 8 6 4 6 42 60-64 - - 3 4 4 1 j 1 13 >65 - - 2 6 3 1 1 13 i Total I 21 j 34 62 53 35 21 18 244 May 6, 2014 E-11 PARTICIPANT STATISTICS Active Age Distribution 60 Miscellaneous ® 06/30;11 Valuation 1306/30i13 Valuation 40 — --------------------------------------------------- ------------------ - --------------------- 20 ---------------------- ------ _-_ __ _-. -_. __-___--__--__-____-_ tl e Fl.n dl 7F `dd p 1 1) - `J , � <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 >65 Age May 6, 2014 F-1-1 r. PARTICIPANT STATISTICS Active Aggpi 'ihlltlon Miscellaneous Service May 6, 2014 E-13 PARTICIPANT STATISTICS This page intentionally blank "F... May 6.2014 [:-14 120 0 06i30/11 Valuation 0 0613 0/1 3 Valuation 80 ---- i ------------------------------------------------------------------------------------------- a� 40 ----------- -------- ------------------------------------------------------ Ffl 0 , 0-4 5-9 10-14 15-19 20-24 >25 Service May 6, 2014 E-13 PARTICIPANT STATISTICS This page intentionally blank "F... May 6.2014 [:-14 PARTICIPANT STATISTICS Actives by Ate and Citv Service Police City Service Age < 1 1-4 S 5-9 10-14 1549 20-24 > 25 Total <25 25-29 3 1 4 - - - - 8 30-34 - - 6 I 1 - - - 7 35-39 - 1 ; 5 9 1 - - 16 40-44 - - 5 6 3 2 - 16 45-49 - - - 3 1 3 - 7 50-54 - 1 1 1 - - 3 6 55-59 60-64- >65 - - - - - - - - Total I 4 1 3 22 20 5 5 j 3 62 May 6, 2011 E-15 PARTICIPANT STATISTICS Active Age Distribution Police 20 06%30;11 Valuation E) 06/30/13 Valuation 15 — ------------------------------ ---------------------- --- � t 10 ------------------------------- -- --------------------------------------------------- z 5 a ----------- 1� --- �� --. --. -. �� --• '------------------------------. Q 03 i, �� i;l�,�,�'�, t 0 i , <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 >65 Age May 6, 2014 E-16 PARTICIPANT STATISTICS Active Service Distribution Police yln 6. 2014 E-18 ;0 w 1106/30/1 1 Valuation 1306;30/13 Valuation 20 — ------------------- ------------ -------------------------------------------------------- aj z 10 ---- —------------ -------- ----------------------------------------------------- Ffl M M 0 , 0-4 5-9 10-14 15-19 20-24 >25 Service May 6, 2014 E-17 PARTICIPANT STATISTICS This page intentionally blank yln 6. 2014 E-18 w yln 6. 2014 E-18 PARTICIPANT STATISTICS ------ --------------------------------- ----------------------------- 10 -------- 0 c n:. Y � Y iw n 1 <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 >65 Age Mati 6- 2014 L,-20 " :; Actives by Age and Citv Service Fire City Service Age <,I 1-4 5-9 10-14 15-19 20-24 > 25 Total <25 1 I - - - - - - 1 25-29 6 6 1 - - - - 13 30-34 4 i 8 1 - - - - 13 35-39 2 ( 1 2 3 l - - - 8 40-44 - 1 - 7 1 - - 9 45-49 - - j 1 3 3 - 2 ; 9 j50-54 - - - 2 1 2 5 10 55-59 - - 1 60-64 - - - - - - - - >65 - - -- Total 13 16 6 15 5 2 7 ( 64 May 6, 2014 E-19: PARTICIPANT STATISTICS I Active Age Distribution � Fire 20 ------ --------------------------------- ----------------------------- 10 -------- 0 c n:. Y � Y iw n 1 <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 >65 Age Mati 6- 2014 L,-20 " :; PARTICIPANT STATISTICS Active Service Distribution Fire 40 1306;30/11 Valuation 0 06/30/13 Valuation 30 — ---------- ---------------------------------- --------------------------------------------- C) E 20 --------- 10 ------------------------------------------------------------------------------------- -------- — ------------ -------------------------------------------------- 0 0-4 5-9 10-14 15-19 20-24 >25 Service May 6, 2014 E-21 PARTICIPANT STATISTICS This page intentionally blank Mai- 6. 2014 E-22 PARTICIPANT STATISTICS Age < i < 25 10 Actives by Atie and Citv Service 25-29 13 30-34 8 35-39 3 j 40-44 1 45-49 2 50-54 1 20-24 55-59 - Total 60-64 - - - > 65 - - Total 38 10 10 - - - May 6, 2014 PARTICIPANT STATISTICS Actives by Atie and Citv Service Total City Service 1.4 5-9 10-14 15-19 20-24 >_ 25 Total 5 2 - - - - 17 10 10 - - - - 33 13 13 4 1 - - ; 39 8 18 22 2 - - 53 5 14 20 7 5 1 ! 53 2 7 14 14 7 5 51 5 6 10 8 10 j 14 54 } 5 15 ( 8 6 4 6 44 - 3 4 4 1 1 ! 13 - 2 6 3 1 1 13 f 53 90 88 45 28 28 j 370 E-23 `f PARTICIPANT STATISTICS l Active Age Distribution Total 80 70 ------------------ 006/30", 11 Valuation 006/30/13 Valuation 60 ---------------------------------------------------- --------- 50 ------ -- 50 ------------------------------- ----- -- -- ------------------------------- 40 - -------------------- — - --- -- -- --` -- Z t, 10 -•------------- -- -- J -- -- -- -- ^)Q _------- - -- - - "u -- --- 10 - -- -- -- -- -- --- -- i 0 — <25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 >65 A�e tea. Ma-, . 6. 2014 F-24 PARTICIPANT STATISTICS Active Service Distribution Total 120 110 ------------------------------------------------- 1 [306/30/11 Valuation---------------- ---- ------------------------------------------ 100 -- Q06/30/13 Valuation ---------------- 90 --------------�-------------------------------------------------------- ------------------ 80 ---- ------ --------------- ---------------------------------------------------- C.) 70 ---- -------------- ----------------------------------------------------- 60 ---- ------ ------ ----------------------------------------------------- Z50 ----------- ------ ----------------------------------------------------- 40 ----------- ------------------ ------- — ------------------------ 30 ---- ------ ------------------------ _; ------- ------- 20 ---------------------------------------- --- 10 --- -------- ------ ------ ;--------------- --- 0 , , 0-4 5-9 10-14 15-19 20-24 >25 Service Mav 6. 2014 E-25 PARTICIPANT STATISTICS This page intentionally blank st:? -May 6, 2014 E-76 PARTICIPANT STATISTICS Retiree Healthcare Coveraev by Ate Groua Miscellaneous Age Single 2 -Party Family 'Waived Total Under 50 j - - 1 - 1 50-54 2 1 2 j - ( 5 55-59 - 10 4 8 ( - ; 22 60-64 16 12 j 4 - 32 65-69 21 16 1 3 41 70-74 11 9 - - 20 75-79 7 ( 9 - - 16 80-84 j 6 2 - - 8 Over 85 i 10 4 - - 14 Total ! 83 57 16 3 159 r D .2- May 6, 2014 E-27 PARTICIPANT STATISTICS Retiree Age Distribution Miscellaneous 45 ----------- 006;30/11 valuation _________________I ----------- ®06!30'13 `Valuation �a ------------------------------------------ 5 - -------------------------------- --- ------------------------------------------ c 20 - --------------------- --- --- ------ ----------------------------- 15 - --------------------- ___. ___. _--. ___ -------------------- 10 -- ---- , 0 -50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ~85 Age MaN 6. 2014 F_-2 PARTICIPANT STATISTICS Retiree Healthcare Coverage by Age Group Police Age Single 2 -Party Family Waived Total j Under 50 4 - - - 4 50-54 2 - 1 - 3 55-59 4 1 3 2 10 60-64 8 7 2 - 17 65-69 6 10 1 - 17 70-74 3 3 - - 6 75-79 1 3 - - 4 80-84 2 1 - - 3 Over 85 2 - - - 2 Total 32 25 7 2 66 May 6, 2014 E-29 PARTICIPANT STATISTICS Retiree Agg i ltrihution Police 30 1106/30/11 Valuation 006/30/13 Valuation 0 •------------------------------------------------------ z., ,5 ----- z 10----------------------- p_________________________________________ Fk0_ <50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 >85 Age ,YF•P'u w,�p,� '.Axe_._'¢ Niay 6. 2014 E-30 PARTICIPANT STATISTICS Retiree Healthcare Covera-ae by Aye Groua Fire 25 20 ------------ 15 ------------- E 7- 10------------ 5------------- FM 0 _ <50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 >85 Ac—,e Age Single 2 -Party Family Waived Total Under 50 1 - 1 - j 2 50-54 55-59 ( 4 10 j 6 1 21 60-64 13 5 5 - 23 65-69 9 11 1 1 22 70-74 5 4 - - 9 75-79 5 ( 4 1 - i 10 80-84 4 7 i - - 11 Over 85 1 1 ( - - 2 Total 43 43 15 2 103 May 6, 2014 E-31 PARTICIPANT STATISTICS Retiree Age Distribution Fire 25 20 ------------ 15 ------------- E 7- 10------------ 5------------- FM 0 _ <50 50-54 55-59 60-64 65-69 70-74 75-79 80-84 >85 Ac—,e ACTUARIAL ASSUMPTIONS Assumption June 30, 2011 Valuation June 30, 2013 Valuation ■ Mortality, • 6/30/11 MCERA valuation • Same Withdrawal, assumptions Disability • Scale AA for post-retirement mortality ■ Service • 6/30/11 MCERA valuation • 6/30/11 MCERA valuation Retirement assumptions26 assumptionS27 Misc Safety Misc Safely Benefit 2.7%@55 3%( Benefit 2.7%@55 3%@55 ERA 59.8 53.5 ERA 59.8 53.5 ■ Part Time • 25% PARS employees become i • Same Employment full time eligible 26 > / , Safety hired _ 7 1 � 11 o ( ) , have 3 /oc�i 55, Miscellaneous hired _ 7/1/11 have 2%((—u55 27 2%4%),,62 for Miscellaneous hired after I/1/13, 2.74/4Tt,57 for Safety hired after I/1/13 May 6, 2014 E-33 ACTUARIAL ASSUMPTIONS Assumption June 30, 2011 Valuation j June 30, 2013 Valuation i ■ Waived • N/A • 200io waived retirees re-elect Retiree Re- coverage at age 65 Elections I ■ PEMHC A • 4.5% after 2012 • 4.5% after 2014 Minimum Increases I I ■Participation i •Actives: • Same at Retirement } Capped benefit: o Currently covered: 100% Currently tivaived: 80% r PEMHCA minimum: 60% i • Retirees: same as current election 1� } May t). 2014 F_-34 0 ACTUARIAL ASSUMPTIONS May 6.2014 U -3t, --2j Assumption June 30, 2011 Valuation June 30, 2013 Valuation 0 Medical Plan * Currently covered: same as e Same at Retirement current elections * Currently waived: weighted premium based on current retiree elections N Marital Status e Covered actives and retirees - e Same based on current coverage election o Waived actives - 80% married N Spouse Age o Males 3 years older than females a Same 0 Dependents a Pre -65: e Same at Retirement y Actives: 20% Retirees: same as current coverage * Post -65: 0% May 6, 2014 E-35 ACTUARIAL ASSUMPTIONS Assumption June 30, 2011 Valuation June 30, 2013 Valuation N Medicare o Actives and Retirees under 65: a Same Eligible Rate % Hired < 4/1,/86: 80% Mise, 90% Safety .- Hired> 4/1/86: 100% • Retirees over 65: current i Medicare eligible status E Medicare All eligible elect City o Same Participation reimbursement of Part B May 6.2014 U -3t, ACTUARIAL ASSUMPTIONS Assumption June 30, 2011 Valuation ( June 30, 2013 Valuation ■ Implied • Non -Medicare eligible retirees pay active medical rates instead of actual cost Subsidy • Active employee premiums subsidize retiree medical cost Single Retiree Medical Cost 1,000 - -- - - ---- - - --- - - - - - - Premazn 800 Male Cost - ----"---_-_-- - Female Cost, U600 =-- -- --- ---- - ---- - „r-- ----- 400 -------- - -- - —=---- ----------- 200 - .,.�,.:..,..�.,,.... 0 - ---------- -. 30 35 40 45 So 55 60 65 Age • GASB 45 includes active "implied subsidy" of retiree costs • Community rated plans not required to value implied subsidy • PEMHCA is a community rated plan for most employers • Valuation does not include an implied subsidy May 6, 2014 E-37 DEFINITIONS t — ■ GASB 45 • Project future employer-provided benefit cash flow for current active Accrual employees and current retirees Accounting • Discount projected cash flow to valuation date using discount rate and actuarial assumptions to determine present value of benefits (PVB) • Discount rate is expected long-term return on plan assets j ! • Allocate PVB to past, current, and future periods • Normal Cost is portion of PVB allocated to current fiscal year • Actuarial cost method used for valuation is Entry Age Normal Cost method which determines Normal Cost as a level percent of payroll • Actuarial Accrued Liability (AAL) is portion of PVB allocated to I prior service with the employer i • Unfunded AAL (UAAL) is AAL less Plan Assets • Assets must be in segregated and restricted trust to be considered Plan Assets for GASB 45 ■ PavGo Cost • Cash subsidy is employer pay-as-you-go benefit payments for retirees . Implied subsidy is difference between actual cost of retiree benefits and retiree premiums subsidized by active employee premiums May 6. 2014 E-38 DEFINITIONS Present Value of Benefits I'u;vlt# °t'alue, of Belotit",, {�iit€nnatt P�;rca:��s�tv3 arm a F:atiaa" (1c'#5na%Vtaai 43 ill ith Mast Av-''Ptsq f°nfurk �. T1'rni y 34a"#aaest Llai#e1ib�' •,, .$st.e#a May 6. 2014 E-40 May 6, 2014 E-39 w.r DEFINITIONS ■ Annual • GASB 45 contribution is Normal Cost plus amortization of: Required Initial UAAL and AAL for plan, assumption, and method changes Contribution o, Experience gains and losses (difference between actual experience (.SRC) ! and that expected from assumptions) Contribution gains and losses (difference between ARC and actual i ! contributions) I ■ Net OPEB NOO is accumulated amounts expensed but not funded Obligation • Net OPEB Asset if amounts funded exceed those expensed (NOO) ■ Annual ! • Expense for current period including: OPEB Cost , ARC (AOC) , Interest on NOO , Adjustment of NOO • Adjustment of NOO prevents double counting of expense since ARCs include amortization of prior contribution gains and losses previously expensed May 6. 2014 E-40