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Home My WebLink About03.c. Unfunded Actuarial Accrued Liability (UAAL), Past, Present and Future (PowerPoint)3.c Unfunded Actuarial Accrued Liability (UAAL) Past, Present, and Future January 20, 2015 Presented by: Thea Vassallo Finance Manager Todd Smithey Finance Administrator 11 Central Contra Costa Sanitary District Protecting Public Health and the Environment • 0 Most Recent CCCERA Valuation @ 12/31/2013 District CCCERA UAAL (2013 valuation) CCCERA Total Pool Funded $120.8M 76.41% • District Portion Funded 63.12% $10M Paydown (No further additional UAAL payments, assumes all actuarial assumptions met) 10,000,000 Valuation Date 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 Ending Balance Annual Paydown Rate (% of Payroll) Additional UAAL UAAL UAAL Payments 120,792,361 11,718,667 43.12% $5M 104,879,598 10,795,206 39.72% $5M 94,657,301 10,796,809 38.15% 85,447,370 10,908,543 37.06% 75,476,252 11,026,622 36.02% 67,252,349 11,334,455 35.60% 59,651,554 11,765,008 35.53% 51,259,538 12,228,566 Last year of 35.51 % 41,840,436 12,716,269 amortization 35.51% 31,230,200 7,820,086 for 2007 21.00% 19,309,863 7,719,808 restart 19.93% 8,973,029 7,782,253 19.32% 782,523 Super Funded 8,058,304 Payments still 19.23% - 7,978,454 7,827,483 required due to 17.96% - 17,564,779 3,425,543 amortization of 7.56% - 27,877,495 - 1,114,435 losses > gains. - 2.36% - 36,349,041 - 3,221,584 - 6.57% - 40,349,668 - 8,061,634 - 15.82% Approximately 10 years from super funding Annual normal payment decreases UAAL by $10M each year $15M Paydown (Includes 1 additional $5M payment in FY 15/16) 15,000,000 Valuation Date 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 Ending Balance UAAL 120,792,361 104, 879,598 90,009,109 80,477,650 70,338,481 62,156,669 54,641,640 46,370,183 37,101,481 26,673,288 14,969,328 4,886,461 Super funded - 3,008,915 - 11,429,706 - 20,626,576 - 30,496,018 - 38,465,542 - 41,900,074 Annual Paydown Rate (% UAAL 11,718,667 10,795,206 10,437,663 10,523,684 10,610,658 10,899,605 11,311,966 11,757,255 Last year of 12,226,061 amortization 7,310,262 for 2007 7,189,586 restart 7,230,822 paymentjeven 7,484,816 required 7,231,059 though s 2,805,257 funded - 1,759,530 - 3,892,483 - 8,759,371 0 of Payroll) UAAL 43.12% 39.72% 36.93% 35.75% 34.66% 34.24% 34.16% 34.14% 34.14% 19.63% 18.56% 17.95% 17.87% 16.60% 6.19% - 3.73% - 7.94% - 17.18% Additional Payments $5M $5M $5M $40M Paydown ($5M per yr. x 8yrs and actuarial assumptions met) 40,000,000 Ending Balance Annual Paydown Rate (% of Payroll) Valuation Date UAAL UAAL UAAL 12/31/2013 120,792,361 11,718,667 43.12% 12/31/2014 104, 879,598 10, 795,206 39.72% 12/31/2015 90,009,109 10,437,663 36.93% 12/31/2016 75,829,458 10,177,885 34.58% 12/31/2017 60,705,103 9,878,802 32.27% 12/31/2018 47,369,532 9,750,490 30.63% 12/31/2019 34,742,966 9,726,649 29.38% 12/31/2020 21,446,008 9,717,486 Last year of 28.22% 12/31/2021 11,920,930 10,059,312 amortization 28.09% 12/31/2022 1,724,224 5,037,836 Super funded for 2007 13.53% 12/31/2023 - 9,397,063 4,823,009 restart 12.45% 12/31/2024 - 18,722,430 4,768,580 11.84 %n 12/31/2025 - 25,691,585 4,923,877 11.75% 12/31/2026 - 33,011,043 4,567,623 10.48% 12/31/2027 - 40,916,205 35,274 0.08% 12/31/2028 - 49,285,882 - 4,640,317 - 9.85% 12/31/2029 - 55,528,039 - 6,888,502 - 14.05% 12/31/2030 - 56,986,375 - 11,875,232 - 23.30% • Approximately 7 years from being super funded Additional P ayments $5M $5M $5M $5M $5M $5M $5M $5M Need Board Direction on the Following: • Continue additional UAAL paydown ?. • How much? $0,, $5M, $10M annually? • Target minimum funding of 80% per American Academy of Actuaries? Questions /Comments?