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HomeMy WebLinkAbout03.b. Old Business re Actuarial Value vs. Valuation ValueSAA AMLCentral Contra Costa Sanitary District November 24, 2014 TO: FINANCE COMMITTEE VIA: ROGER S. BAILEY, GENERAL MANAGER FROM: THEA VASSALLO, FINANCE MANAGER SUBJECT: ADDITIONAL INFORMATION REQUESTED REGARDING ACTUARIAL VALUE AND VALUATION VALUE At the November 12, 2014 Finance Committee meeting, Chair Causey requested information on the difference between actuarial and valuation value in Chart 12, below, on Investment Return from 2004 -2013 on page 11 of the abridged CCCERA Valuation and Review, which was included in the November 12, 2014 agenda packet. CHART 12 Investment Return — Market Value, Actuarial Value, and Valuation Value: 2004 — 2013 }Jute' Each years yield is wtghted by the average asset vwiue in Mai ywr Per Finance Administrator Todd Smithey, actuarial value is all the plan's assets. The valuation value does not include the $15 million CCCERA has set aside for the post - retirement death benefit. The amount relative to all of the assets is so small that graphing the two almost looks like they are the same line. TV:cg Market Value Investment Actuarial Value Valuation Value Return Investment Return Investment Return Year Ended Percent Percent Percent December 31 Amount of Assets Amount of Assets Amount of Assets 2004 $406,427,237 1127% $136.674,234 3.85% 5135,741,405 3.840/• 2005 331,400,271 8.71% 216.618.073 5,74% 215.737.484 5.740 , 2406 603,899,378 14.23% 353,776,306 4.63% 352,439.472 8,64 %s 2007 294,694,885 6,03 % 522;206,583 11.630.E 521,211,436 11.64% 2008 (1,477,705,765) (28.35 %a) 236,397,117 4.73% 237,402,12,9 4.72% 2009 736,956,891 19.68% 13,226,93; 0.34% 17,021,116 0.32 % 2010 594,637,090 13,35 %0 95,9111.913 1.425"0 9035.030 1,80% 2011 88,042,268 1.76% 1411.050411 2.74%0 1.46;988.614 2.77% 2012 . 668,138,997 13.31% 121,921,302 2.25% 120,426 „177 2:340,6 2013 870,984,744 15.50"!0 492,503,802 9.01% 491,324308 %02 % Natal $3,117,475,946 52,344,301,411 52,333,926,1.71 Flvv -Year A verage Returaa 12.41 % 3.27%rb 3.26% Tern -Year A vertaze Rectum 6.88% 4,W1 ,4 4.90%, }Jute' Each years yield is wtghted by the average asset vwiue in Mai ywr Per Finance Administrator Todd Smithey, actuarial value is all the plan's assets. The valuation value does not include the $15 million CCCERA has set aside for the post - retirement death benefit. The amount relative to all of the assets is so small that graphing the two almost looks like they are the same line. TV:cg