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04.b. GASB 67
Abridged Version - Pages containing information on other agencies have been removed Contra Costa County Employees' Retirement Association Governmental Accounting Standards (GAS) 67 Actuarial Valuation as of December 31, 2014 4.b This report has been prepared at the request of the Board of Retirement to assist in administering the Fund. This valuation report may not otherwise be copied or reproduced in any form without the consent of the Board of Retirement and may only be provided to other parties in its entirety. The measurements shown in this actuarial valuation may not be applicable for other purposes. Copyright © 2015 by The Segal Group. Inc. All rights reserved. %Segal Consulting 100 Montgomery Street Suite 500 San Francisco, CA 94104 -4308 T 415 263.8200 www.segalco.com May 22, 2015 Board of Retirement Contra Costa County Employees' Retirement Association 1335 Willow Way, Suite 221 Concord, CA 94520 Dear Board Members: We are pleased to submit this Governmental Accounting Standard (GAS) 67 Actuarial Valuation as of December 31, 2014. It contains various information that will need to be disclosed in order to comply with GAS 67. This report was prepared in accordance with generally accepted actuarial principles and practices at the request of the Board to assist in administering the Association. The census and financial information on which our calculations were based was prepared by CCCERA. That assistance is gratefully acknowledged. The measurements shown in this actuarial valuation may not be applicable for other purposes. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; and changes in plan provisions or applicable law. The actuarial calculations were completed under the supervision of John Monroe, ASA, MAAA, Enrolled Actuary. We are members of the American Academy of Actuaries and we meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion herein. To the best of our knowledge, the information supplied in the actuarial valuation is complete and accurate. Further, in our opinion, the assumptions as approved by the Board are reasonably related to the experience of and expectations for the Plan. We look forward to reviewing this report with you and to answering any questions. Sincerely, Segal Consulting, a Member of The Segal Group, Inc. By: I 1 ;Q+►�w2. Paul Angelo, FSA, EA, MAAA, FCA John Mnroe, ASA, EA, MAAA Senior Vice President and Actuary Vice President and Actuary A W1hy VALUATION SUMMARY Purpose ........... ............................... i Significant Issues in Valuation Year........... ............................... i Summary of Key Valuation Results Results ..... ............................... iii Important Information about Actuarial Valuations .............. iv Segal Consulting GAS 67 INFORMATION EXHIBIT 1 General Information — "Financial Statements ", Note Disclosures and Required Supplementary Information for a Cost - Sharing Pension Plan ............................. EXHIBIT 2 Net Pension Liability ......................5 EXHIBIT 3 Schedules of Changes in CCCERA Net Pension Liability — Last Two Fiscal Years .......... 8 EXHIBIT 4 Schedule of Employer Contributions — Last Ten Fiscal Years.......... ............................... 9 EXHIBIT 5 Projection of Pension Plan's Fiduciary Net Position for Use in Calculation of Discount Rate as of December 31, 2014 ........ AICPA SCHEDULES EXHIBIT A Schedule of Employer Allocations as of December 31, 2014 ............... 1 EXHIBIT B Schedule of Pension Amounts by Employer as of December 31, 2014 ............... 26 SECTION 1: Valuation Summary for the Contra Costa County Employees' Retirement Association Purpose This report has been prepared by Segal Consulting to present certain disclosure information required by Governmental Accounting Standards (GAS) 67 as of December 31, 2014. This valuation is based on: > The benefit provisions of the Retirement Association, as administered by the Board of Retirement; > The characteristics of covered active members, inactive vested members, and retired members and beneficiaries as of December 31, 2013, provided by the Retirement Association; > The assets of the Plan as of December 31, 2014, provided by the Retirement Association; > Economic assumptions regarding future salary increases and investment earnings; and > Other actuarial assumptions, regarding employee terminations, retirement, death, etc. Significant Issues in Valuation Year The following key findings were the result of this actuarial valuation: > The Governmental Accounting Standards Board (GASB) approved two new Statements affecting the reporting of pension liabilities for accounting purposes. Statement 67 replaces Statement 25 and is for plan reporting. Statement 68 replaces Statement 27 and is for employer reporting. Statement 67 is effective with the year ending December 31, 2014 for Plan reporting and Statement 68 is effective with the fiscal year ending June 30, 2015 for employer reporting. The information contained in this valuation is intended to be used (along with other information) in order to comply with Statement 67. > It is important to note that the new GASB rules only redefine pension liability and expense for financial reporting purposes, and do not apply to contribution amounts for pension funding purposes. Employers and plans can still develop and adopt funding policies under current practices. > When measuring pension liability GASB uses the same actuarial cost method (Entry Age method) and the same type of discount rate (expected return on assets) as CCCERA uses for funding. This means that the Total Pension Liability (TPL) measure for financial reporting shown in this report is determined on the same basis as CCCERA's Actuarial Accrued Liability (AAL) measure for funding. We note that the same is generally true for the Normal Cost component of the annual plan cost for funding and financial reporting. v Segal Consulting SECTION 1: Valuation Summary for the Contra Costa County Employees' Retirement Association > The TPL and the Plan's Fiduciary Net Position include liabilities and assets held for the Post Retirement Death Benefit Reserve. The TPL only includes a liability up to the amount in the Post Retirement Death Benefit Reserve. This is because we understand that the post retirement death benefit is a nonvested benefit and once the reserve is depleted no further benefits would need to be paid. > The Net Pension Liability (NPL) is equal to the difference between the TPL and the Plan's Fiduciary Net Position. The Plan's Fiduciary Net Position is equal to the market value of assets and therefore, the NPL measure is very similar to an Unfunded Actuarial Accrued Liability (UAAL) on a market value basis. The NPL decreased from $1.47 billion as of December 31, 2013 to $1.20 billion as of December 31, 2014, primarily due to the gain from lower than expected salary increase during calendar year 2013 (because liabilities are rolled forward from December 31, 2013 to December 31, 2014, this gain is first reported in the December 31, 2014 results). Changes in these values during the last two fiscal years ending December 31, 2013 and December 31, 2014 can be found in Exhibit 3. > The net pension liability was measured as of December 31, 2014 and 2013. Plan fiduciary net position (plan assets) was valued as of the measurement date while the total pension liability was determined based upon rolling forward the total pension liability from actuarial valuations as of December 31, 2013 and 2012, respectively. > The discount rates used to determine the TPL and NPL as of December 31, 2014 and 2013 were 7.25% and 7.25 %, respectively, following the same assumptions used by the Association in the funding valuations as of December 31, 2013 and December 31, 2012. The detailed derivation of the discount rate of 7.25% used in the calculation of the TPL and NPL as of December 31, 2014 can be found in Exhibit 5 of Section 2. > Various other information that is required to be disclosed can be found throughout Exhibits 1 through 4 in Section 2. > Section 3 contains two schedules that the American Institue of Certified Public Accountants (AICPA) recommends be prepared by cost sharing pension plans. These two schedules contain summary information related to GASB 68 and are based on many of the results earlier in this report. The first schedule shows the method used for allocating the NPL along with the NPL amounts allocated amongst all of the employers in CCCERA. The second schedule is a summary that shows the allocated NPL, deferred outflows and inflows of resources and pension expense by employer. Further information regarding GASB 68 including additional information that employers will need to disclose will be provided in a separate report that is anticipated to be completed during the third quarter of 2015. 7r Segal Consulting ;; SECTION 1: Valuation Summary for the Contra Costa County Employees' Retirement Association Inflation rate 3.25% 3.25% Projected salary increases (3) General: 4.75% to 13.50% and General: 4.75% to 13.50% and Safety: 4.75% to 14.00% Safety: 4.75% to 14.00% Please note that service cost is always based on the previous year's assumptions, meaning both values are based on those assumptions shown as of December 31, 2013. 11i Include 1,176 terminated members with member contributions on deposit as of December 31, 2014 and 933 as of December 31, 2013. (3) Includes inflation at 3.25% plus real across -the -board salary increase of 0.75 %plus merit and longevity increases. IV Segal Consulting ;;; Summary of Key Valuation Results 2014 2013 Disclosure elements for fiscal year ending, December 31: Service costal) $192,256,663 $196,463,397 Total pension liability 8,104,611,627 7,929,766,847 Plan fiduciary net position 6,908,910,230 6,458,317,596 Net pension liability 1,195,701,397 1,471,449,251 Schedule of contributions for fiscal year ending December 31: Actuarially determined contributions $288,760,413 $235,017,452 Actual contributions 288,760,413 235,017,452 Contribution deficiency (excess) 0 0 Demographic data for plan year ending December 31: Number of retired members and beneficiaries 8,871 8,625 Number of vested terminated members (2) 2,647 2,345 Number of active members 9,159 9,124 Key assumptions as of December 31: Investment rate of return 7.25% 7.25% Inflation rate 3.25% 3.25% Projected salary increases (3) General: 4.75% to 13.50% and General: 4.75% to 13.50% and Safety: 4.75% to 14.00% Safety: 4.75% to 14.00% Please note that service cost is always based on the previous year's assumptions, meaning both values are based on those assumptions shown as of December 31, 2013. 11i Include 1,176 terminated members with member contributions on deposit as of December 31, 2014 and 933 as of December 31, 2013. (3) Includes inflation at 3.25% plus real across -the -board salary increase of 0.75 %plus merit and longevity increases. IV Segal Consulting ;;; SECTION 1: Valuation Summary for the Contra Costa County Employees' Retirement Association Important Information about Actuarial Valuations In order to prepare an actuarial valuation, Segal Consulting ( "Segal ") relies on a number of input items. These include: > Plan of benefits Plan provisions define the rules that will be used to determine benefit payments, and those rules, or the interpretation of them, may change over time. It is important to keep Segal informed with respect to plan provisions and administrative procedures, and to review the plan description in this report (as well as the plan summary included in our funding valuation report) to confirm that Segal has correctly interpreted the plan of benefits. > Participant data An actuarial valuation for a plan is based on data provided to the actuary by the Association. Segal does not audit such data for completeness or accuracy, other than reviewing it for obvious inconsistencies compared to prior data and other information that appears unreasonable. It is important for Segal to receive the best possible data and to be informed about any known incomplete or inaccurate data. > Assets This valuation is based on the market value of assets as of the valuation date, as provided by the Association. > Actuarial assumptions In preparing an actuarial valuation, Segal projects the benefits to be paid to existing plan participants for the rest of their lives and the lives of their beneficiaries. This projection requires actuarial assumptions as to the probability of death, disability, withdrawal, and retirement of each participant for each year. In addition, the benefits projected to be paid for each of those events in each future year reflect actuarial assumptions as to salary increases and cost -of- living adjustments. The projected benefits are then discounted to a present value, based on the assumed rate of return that is expected to be achieved on the plan's assets. There is a reasonable range for each assumption used in the projection and the results may vary materially based on which assumptions are selected. It is important for any user of an actuarial valuation to understand this concept. Actuarial assumptions are periodically reviewed to ensure that future valuations reflect emerging plan experience. While future changes in actuarial assumptions may have a significant impact on the reported results, that does not mean that the previous assumptions were unreasonable. The user of Segal's actuarial valuation (or other actuarial calculations) should keep the following in mind: > The valuation is prepared at the request of the Board to assist the sponsors of the Fund in preparing items related to the pension plan in their financial reports. Segal is not responsible for the use or misuse of its report, particularly by any other party. > An actuarial valuation is a measurement of the plan's assets and liabilities at a specific date. Accordingly, except where otherwise noted, Segal did not perform an analysis of the potential range of future financial measures. The actual long -tern cost of the plan will be determined by the actual benefits and expenses paid and the actual investment experience of the plan. Segal Consulting iv SECTION 1: Valuation Summary for the Contra Costa County Employees' Retirement Association > If the Association is aware of any event or trend that was not considered in this valuation that may materially change the results of the valuation, Segal should be advised, so that we can evaluate it. > Segal does not provide investment, legal, accounting, or tax advice. Segal's valuation is based on our understanding of applicable guidance in these areas and of the plan's provisions, but they may be subject to alternative interpretations. The Board should look to their other advisors for expertise in these areas. As Segal Consulting has no discretionary authority with respect to the management or assets of the Retirement Association, it is not a fiduciary in its capacity as actuaries and consultants with respect to the Retirement Association. Segal Consulting SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association EXHIBIT 1 General Information — "Financial Statements ", Note Disclosures and Required Supplementary Information for a Cost - Sharing Pension Plan Plan Description Plan administration. The Contra Costa County Employees' Retirement Association ( CCCERA) was established by the County of Contra Costa in 1945. CCCERA is governed by the County Employees' Retirement Law of 1937 (California Government Code Section 31450 et. seq), the California Public Employees' Pension Reform Act of 2013 (PEPRA), and the regulations, procedures, and policies adopted by CCCERA's Board of Retirement. CCCERA is a cost - sharing multiple employer public employee retirement association whose main function is to provide service retirement, disability, death and survivor benefits to the General and Safety members employed by the County of Contra Costa. CCCERA also provides retirement benefits to the employee members for 16 other participating agencies which are members of CCCERA. The management of CCCERA is vested with the CCCERA Board of Retirement. The Board consists of twelve trustees. Of the twelve members, three are alternates. Four trustees are appointed by the County Board of Supervisors; four trustees (including the Safety alternate) are elected by CCCERA's active members; two trustees (including one alternate) are elected by the retired membership. Board members serve three -year terms, with the exception of the County Treasurer who is elected by the general public and serves during his tenure in office. Plan membership. At December 31, 2014, pension plan membership consisted of the following: Retired members or beneficiaries currently receiving benefits 8,871 Vested terminated members entitled to, but not yet receiving benefits(l) 2,647 Active members 9,159 Total 20,677 (1) Includes members who terminate with less than five years of service and leave accumulated contributions on deposit Benefits provided. CCCERA provides service retirement, disability, death and survivor benefits to eligible employees. All regular full -time employees of the County of Contra Costa or participating agencies become members of CCCERA effective on the first day of the first full pay period after employment. Part-time employees in permanent positions must work at least 20 hours a week in order to be a member of CCCERA. There are separate retirement plans for General and Safety member employees. Safety membership is extended to those involved in active law enforcement, fire suppression, and certain other -;�- Segal Consulting SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association "Safety" classifications. There are currently five tiers applicable to Safety members. Safety members with membership dates before January 1, 2013 are included in Tier A (Enhanced and Non - Enhanced). County Sheriff's Department Safety members hired on or after January 1, 2007, but before January 1, 2013 are placed in Safety Tier C Enhanced. Any new Safety Member who becomes a member on or after January 1, 2013 is designated PEPRA Safety Tier D or E (Safety members from certain bargaining units) and is subject to the provisions of California Public Employees' Pension Reform. Act of 2013 ( PEPRA), California Government Code 7522 et seq. All other employees are classified as General members. There are currently eight tiers applicable to General members. General Tier 1 (Enhanced and Non- Enhanced) includes general members hired before July 1, 1980 and electing not to transfer to Tier 2 Plan. In addition, certain General members with membership dates before January 1, 2013 hired by specific employers who did not adopt Tier 2 are placed in Tier 1. General Tier 2 includes most General members hired on or after August 1, 1980 and all General members hired before July 1, 1980 electing to transfer to the Tier 2 Plan. Effective October 1, 2002, for the County, Tier 2 was eliminated and all County employees (excluding CNA employees) in Tier 2 were placed in Tier 3 (Enhanced and Non - Enhanced). Effective January 1, 2005, all CNA employees in Tier 2 were placed in Tier 3. New General Members who become a member on or after January 1, 2013 are designated as PEPRA General Tier 4 (hired by specific employers who did not adopt Tier 2) and Tier 5 (with 2 1/o/3% maximum COLAs) and are subject to the provisions of California Government Code 7522 et seq. General members prior to January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired 10 or more years of retirement service credit. A member with 30 years of service is eligible to retire regardless of age. General members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 70 regardless of service or at age 52, and have acquired five years of retirement service credit. Safety members prior to January 1, 2013, are eligible to retire once they attain the age of 70 regardless of service or at age 50 and have acquired 10 or more years of retirement service credit. A member with 20 years of service is eligible to retire regardless of age. Safety members who are first hired on or after January 1, 2013, are eligible to retire once they have attained the age of 70 regardless of service or at age 50, and have acquired five years of retirement service credit. The retirement benefit the member will receive is based upon age at retirement, final average compensation, years of retirement service credit and retirement plan and tier. General Tier 1 and Tier 3 benefits are calculated pursuant to the provisions of Sections §31676.11 and §31676.16 for Non - Enhanced and Enhanced benefit formulae, respectively. The monthly allowance is equal to 1 /60th (Non- Enhanced) and 1 /50th (Enhanced) of final compensation times years of accrued retirement service credit times age factor from either section §31676.11 (Non- Enhanced) or §31676.16 (Enhanced). Note that for members previously covered under the Non - Enhanced formula ( §31676.11), they are entitled to at least the benefits they could have received under the Non- Enhanced formula Segal Consulting SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association ( §31676.11). General Tier 2 benefit is calculated pursuant to the provisions of Sections §31752. General member benefits for those with membership dates on or after January 1, 2013 ( PEPRA General Tier 4 and Tier 5) are calculated pursuant to the provisions found in California Government Code Section §7522.20(a). The monthly allowance is equal to the final compensation multiplied by years of accrued retirement credit multiplied by the age factor from Section §7522.20(a). Safety member benefits are calculated pursuant to the provisions of California Government Code Sections §31664 and §31664.1 for Non - Enhanced and Enhanced formulae, respectively. The monthly allowance is equal to 1 /50th (or 2 %) of final compensation times years of accrued retirement service credit times age factor from Section §31664 (Non- Enhanced) or 3% of final compensation times years of accrued retirement service credit times age factor from §31664.1 (Enhanced). For those Safety member with membership dates on or after January 1, 2013 ( PEPRA Safety Tier D and Tier E) benefits are calculated pursuant to the provisions found in California Government Code Section §7522.25(d). The monthly allowance is equal to the final compensation multiplied by years of accrued retirement service credit multiplied by the age factor from Section §7522.25(d). For members with membership dates before January 1, 2013, the maximum monthly retirement allowance is 100% of final compensation. There is no final compensation limit on the maximum retirement benefit for members with membership dates on or after January 1, 2013. Final average compensation consists of the highest 12 consecutive months for General Tier 1, General Tier 3 (non - disability) and Safety Tier A members and the highest 36 consecutive months for General Tier 2, General Tier 3 (disability), PEPRA General Tier 4, PEPRA General Tier 5, Safety Tier C, PEPRA Safety Tier D and PEPRA Safety Tier E members. The member may elect an unmodified retirement allowance, or choose an optional retirement allowance. The unmodified retirement allowance provides the highest monthly benefit and a 60% continuance to an eligible surviving spouse or domestic partner. An eligible surviving spouse or domestic partner is one married to or registered with the member one year prior to the effective retirement date or at least two years prior to the date of death and has attained age 55 on or prior to the date of death. There are four optional retirement allowances the member may choose. Each of the optional retirement allowances requires a reduction in the unmodified retirement allowance in order to allow the member the ability to provide certain benefits to a surviving spouse, domestic partner, or named beneficiary having an insurable interest in the life of the member. CCCERA provides an annual cost -of- living benefit to all retirees. The cost -of- living adjustment, based upon the Consumer Price Index for the San Francisco - Oakland -San Jose Area, is capped at 3.0% for General Tier 1, General Tier 3 (non - disability benefits), PEPRA General Tier 4, PEPRA General Tier 5 -3% (non - disability benefits), Safety Tier A and PEPRA Safety Tier D. The cost -of- living adjustment is capped at 4.0% for General Tier 3 (disability benefits), General Tier 2 and PEPRA General Tier 5 -3% (disability benefits). The cost -of- living adjustment is capped at 2.0% for General Tier 5 -2 %, Safety Tier C and PEPRA Safety Tier E. % Segal Consulting SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association The County of Contra Costa and participating agencies contribute to the retirement plan based upon actuarially determined contribution rates adopted by the Board of Retirement. Employer contribution rates are adopted annually based upon recommendations received from CCCERA's actuary after the completion of the annual actuarial valuation. The average employer contribution rate as of December 31, 2014 for the fiscal year beginning July 1, 2014 (based on the December 31, 2012 valuation) was 49.82% of compensation. Members are required to make contributions to CCCERA regardless of the retirement plan or tier in which they are included. The average member contribution rate as of December 31, 2014 for the fiscal year beginning July 1, 2014 (based on the December 31, 2012 valuation) was 12.20% of compensation. �� Segal Consulting 4 SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association EXHIBIT 2 Net Pension Liability The components of the net pension liability are as follows: Total pension liability Plan fiduciary net position Association's net pension liability Plan fiduciary net position as a percentage of the total pension liability December 31, 2014 December 31, 2013 $8,104,611,627 $7,929,766,847 (6,908,910.230) (6,458,317,596) $1,195,701,397 $1,471,449,251 85.25% 81.44% The net pension liability was measured as of December 31, 2014 and 2013. Plan fiduciary net position (plan assets) was valued as of the measurement date while the total pension liability was determined based upon rolling forward the total pension liability from actuarial valuations as of December 31, 2013 and 2012, respectively. Plan provisions. The plan provisions used in the measurement of the net pension liability are the same as those used in the CCCERA actuarial valuation as of December 31, 2013. The TPL and the Plan's Fiduciary Net Position include liabilities and assets held for the Post Retirement Death Benefit Reserve. Actuarial assumptions. The total pension liabilities as of December 31, 2014 and December 31, 2013 were determined by actuarial valuations as of December 31, 2013 and December 31, 2012, respectively. The actuarial assumptions used were based on the results of an experience study for the period January 1, 2010 through December 31, 2012. They are generally the same as the assumptions used in the December 31, 2013 funding actuarial valuation for CCCERA and will be used in the December 31, 2014 funding actuarial valuation. The assumptions used in the funding valuations are outlined on page 10 of this report. Those assumptions are also used for determining the TPL except that, for GAS 67 purposes, the investment return assumption used is net of investment expenses only and is not net of administrative expenses. In addition, the leave cashout assumption for Safety Tier C has been reduced to zero effective with the December 31, 2014 funding actuarial valuation and has been reflected in the December 31, 2014 measurement for GAS 67. In particular, the following actuarial assumptions were applied to all periods included in the measurement for both the December 31, 2013 and December 31, 2012 actuarial valuations: Inflation 3.25% Salary increases General: 4.75% to 13.50% and Safety: 4.75% to 14.00 %, varying by service, including inflation Investment rate of return 7.25 %, net of pension plan investment expense, including inflation Segal Consulting SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association The long -term expected rate of return on pension plan investments was determined in 2013 using a building -block method in which expected future real rates of return (expected returns, net of inflation) are developed for each major asset class. This information is combined to produce the long -term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage, adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation and projected arithmetic real rates of return for each major asset class, after deducting inflation, but before investment expenses, used in the derivation of the long -term expected investment rate of return assumption are summarized in the following table: Asset Class Target Allocation Long -Term Expected Real Rate of Return Large Cap U.S. Equity 13.60% 6.09% Small Cap U.S. Equity 5.80% 6.79% Developed International Equity 17.60% 6.66% Emerging Markets Equity 5.60% 8.02% U.S. Core Fixed Income 16.10% 0.83% International Bonds 3.30% 0.69% High Yield Bonds 5.00% 3.32% Inflation - Indexed Bonds 1.66% 0.73% Long Duration Fixed Income 5.00% 1.45% Real Estate 12.50% 4.83% Commodities 1.67% 4.71% Private Equity 10.00% 8.95% Alternative Investment (Timber) 1.67% 4.20% Cash & Equivalents 0.50% 0.25% Total 100.00% Discount rate: The discount rates used to measure the total pension liability was 7.25% as of both December 31, 2014 and December 31, 2013. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially determined contribution rates. For this purpose, only employee and employer contributions that are intended to fund benefits for current plan members and their beneficiaries are included. Projected employer contributions that are intended to fund the -7 -Segal Consulting 6 SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association service costs for future plan members and their beneficiaries, as well as projected contributions from future plan members, are not included. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments for current plan members. Therefore, the long -term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability as of both December 31, 2014 and December 31, 2013. Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability as of December 31, 2014, calculated using the discount rate of 7.25 %, as well as what the net pension liability would be if it were calculated using a discount rate that is 1- percentage -point lower (6.25 %) or I- percentage -point higher (8.25 %) than the current rate: Net pension liability as of December 31, 2014 v Segal Consulting Current 1% Decrease Discount Rate 1% Increase (6.25 %) (7.25 %) (8.25 %) $2,273,126,064 $1,195,701,397 $308,721,758 SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association EXHIBIT 3 Schedules of Changes in Net Pension Liability — Last Two Fiscal Years 2014 2013 Total pension liability Service cost $192,256,663 $196,463,397 Interest 561,216,191 564,441,213 Change of benefit terms 0 0 Differences between expected and actual experience (183,604,761) (77,222,890) Changes of assumptions (75,608) (232,886,783) Actual benefit payments, including refunds of employee contributions (394,947,705) (374,638,978) Net change in total pension liability $174,844,780 $76,155,960 Total pension liability — beginning 7,929,766,847 7,853,610.887 Total pension liability — ending (a) Plan fiduciary net position Contributions — employer $293,760,413 $235,017,452 Contributions — employee 78,257,665 72,373,254 Net investment income 480,502,256 877,760,526 Benefit payments, including refunds of employee contributions (394,947,705) (374,638,978) Administrative expense (6,979,995) (6,775,782) Other 0 0 Net change in plan fiduciary net position $450,592,634 $803,736,472 Plan fiduciary net position — beginning 6.458.317.596 5,654,581,124 Plan fiduciary net position — ending (b) $6,908,910,230 $6,458,317,596 Association's net pension liability — ending (a) — (b) $x,195.701.397 1.471.449.251 Plan fiduciary net position as a percentage of the total pension liability 85.25% 81.44% Covered employee payroll $671,485,798 $638,635,912 Plan net pension liability as percentage of covered employee payroll 178.07% 230.41% Notes to Schedule: Benefit changes: All members with membership dates on or after January 1, 2013 enter the new tiers created by the California Public Employees' Pension Reform Act of 2013 (PEPRA). -Tyr Segal Consulting SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association EXHIBIT 4 Schedule of Employer Contributions — Last Ten Fiscal Years Year Ended December 31 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Actuarially Determined Contributions $147,165.108 179,755,315 196,929,570 206,518,693 195,631,673 183,950,930 200,388,994 212,321,325 228,017,452 288,760,413 Contributions in Relation to the Actuarially Determined Contributions $147,165,108 " 179.755,315('1 196,929,570 206, 518.693 195.631.673 183,950,930 200,388.994 212,321,325 228.017.452j31 288,760.413141 1) Excludes Pension Obligation Bond proceeds of $153,134, 911. (2) Excludes Pension Obligation Bond proceeds of $11,693,396. (3) Excludes additional contributions towards UAAL of $7,000,000. j4j Excludes additional contributions towards UAAL of S5, 000, 000. See accompanying notes to this schedule on next page. Contribution Deficiency /(Excess) $0 0 0 0 0 0 0 0 0 0 Covered - Employee Payroll $619,131218 627,546,408 653,953,163 671,617.932 704,947,668 694,443,999 687,443,206 666,394.146 638,635.912 671,485,798 Contributions as a Percentage of Covered Employee Payroll 23.77% 28.64% 30.11% 30.75% 27.75% 26.49% 29.15% 31.86% 35.70% 43.00% Segal Consulting 9 SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association Notes to Exhibit 4 Methods and assumptions used to establish "actuarially determined contribution" rates: Valuation date Actuarially determined contribution rates are calculated as of December 31, t„o and a half years prior to the end of the fiscal year in which contributions are reported Actuarial cost method Entry Age Actuarial Cost Method Amortization method Level percent of payroll (4.00% payroll growth assumed) Remaining amortization period Remaining balance of December 31, 2007 UAAL is amortized over a fixed (decreasing or closed) period with 9 years remaining as of December 31, 2013. Any changes in UAAL after December 31, 2007 will be separately amortized over a fixed 18 -year period effective with that valuation. Effective December 31, 2013, any changes in UAAL due to plan amendments (with the exception of a change due to retirement incentives) will be amortized over a 10 -year fixed period effective with that valuation. The entire increase in UAAL resulting from a temporary retirement incentive will be funded in full upon adoption of the incentive. Asset valuation method Market value of assets less unrecognized returns in each of the last nine semi -annual accounting periods. Unrecognized return is equal to the difference between the actual market return and the expected return on the market value, and is recognized semi - annually over a five -year period. The Actuarial Value of Assets is reduced by the value of the non - valuation reserves and designations. Actuarial assumptions: Investment rate of return 7.25 1/o, net of pension plan investment and administrative expenses, including inflation Inflation rate 3.25% Projected salary increases General: 4.75% to 13.50% and Safety: 4.75% to 14.00 %, vary by service, including inflation Cost of living adjustments 3% per year except for Tier 3 and PEPRA Tier 5 (3% COLA) disability benefits and Tier 2 benefits that are valued as a 3.25% increase per year. Safety Tier C, PEPRA Tier E and PEPRA Tier 5 (2% COLA) members are assumed to increase at 2% per year. All increases are contingent upon actual increases in CPI. Other Assumptions: Same as those used in the December 31, 2013 funding actuarial valuation and will be used in the December 31, 2014 funding actuarial valuation except the following: Leave Cashout Assumption for Safety Tier C December 31, 2013 Assumption: Leave cashouts of 0.25% of final average pay December 31, 2014 Assumption: Leave cashouts of 0.00% of final average pay �T- Segal Consulting 10 SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association EXHIBIT 5 Projection of Pension Plan's Fiduciary Net Position for Use in Calculation of Discount Rate as of December 31, 2014 ($ in millions) 2127 242,782 0 0 ' 262 17,592 260,112 2128 260,112 2128 Discounted Value: 89 ** Less than $1 M, when rounded. $260,112 million when discounted with interest at the rate of 7.25% per annum has a value of $89 M as of December 31, 2014. -;'r" Segal Consulting I I Projected Beginning Projected Projected Projected Projected Projected Ending Year Plan Fiduciary Total Benefit Administrative Investment Plan Fiduciary Beginning Net Position Contributions Payments Expenses Earnings Net Position January 1 (a) (b) (c) (d) (e) (f) _ (a) + (b) - (c) - (d) + (e) 2014 $6,458 $372 $395 $7 $481 $6,909 2015 6,909 345 417 7 499 7,329 2016 7,329 338 438 8 529 7,750 2017 7,750 334 460 8 558 8,174 2018 8,174 329 482 9 588 8,599 2019 8,599 329 506 9 618 9,031 2020 9,031 332 532 10 649 9,471 2021 9,471 335 557 10 680 9,918 2022 9,918 338 584 11 712 10,373 2023 10,373 226 612 11 739 10,714 2039 12,625 28 994 14 883 12,528 2040 12,528 24 1,006 14 875 12,408 2041 12,408 20 1,016 13 866 12,265 2042 12,265 17 1,024 13 855 12,100 2043 12,100 14 1,029 13 843 11,916 2088 16,585 0 24 18 1,201 17,744 2089 17,744 0 19 19 1,285 18,991 2090 18,991 0 15 21 1,376 20,332 2091 20,332 0 12 22 1,473 21,771 2127 242,782 0 0 ' 262 17,592 260,112 2128 260,112 2128 Discounted Value: 89 ** Less than $1 M, when rounded. $260,112 million when discounted with interest at the rate of 7.25% per annum has a value of $89 M as of December 31, 2014. -;'r" Segal Consulting I I SECTION 2: GASB Information for Contra Costa County Employees' Retirement Association EXHIBIT 5 Projection of Pension Plan's Fiduciary Net Position for Use in Calculation of Discount Rate as of December 31, 2014 ($ in millions) - continued Notes: (1) Amounts may not total exactly due to rounding. (2) Amounts shown in the year beginning January 1, 2014 row are actual amounts, based on the unaudited financial statements provided by CCCERA. (3) Years 2024 -2038, 2044 -2087, and 2092 -2126 have been omitted from this table. (4) Column (a): Except for the "discounted value" shown for 2128, none of the projected beginning plan fiduciary net position amounts shown have been adjusted for the time value of money. (5) Column (b): Projected total contributions include employee and employer normal cost rates applied to closed group projected payroll (based on covered active members as of December 31, 2013), plus employer contributions to the unfunded actuarial accrued liability. Contributions are assumed to occur halfway through the year, on average. (6) Column (c): Projected benefit payments have been determined in accordance with paragraph 39 of GASB Statement No. 67, and are based on the closed group of active, inactive vested, retired members, and beneficiaries as of December 31, 2013. The projected benefit payments reflect the cost of living increase assumptions used in December 31, 2013 valuation report and include projected benefits associated with the Post Retirement Death Benefit Reserve. (7) Column (d): Projected administrative expenses are calculated as approximately 0. 11 % of the projected beginning plan fiduciary net position amount. The 0.11 % portion was based on the actual calendar year 2014 administrative expenses as a percentage of the actual beginning plan fiduciary net position as of January 1, 2014. Administrative expenses are assumed to occur halfway through the year, on average. (8) Column (e): Projected investment earnings are based on the assumed investment rate of return of 7.25% per annum and reflect the actual timing of benefit payments, which are made at the end of each month. (9) As illustrated in this Exhibit, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments for current Plan members. In other words, there is no projected "cross -over date" when projected benefits are not covered by projected assets. Therefore, the long -term expected rate of return on Plan investments of 7.25% per annum was applied to all periods of projected benefit payments to determine the total pension liability as of December 31, 2014 shown earlier in this report, pursuant to paragraph 44 of GASB Statement No. 67. -7 -Segal Consulting 12 SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association Note: Results may not add due to rounding. v Segal Consulting 13 EXHIBIT A Schedule of Employer Allocations as of December 31, 2014 Actual Compensation by Employer and Cost Group January 1, 2014 to December 31, 2014 Cost Group Cost Group #1 &2 Cost Group #3 Cost Group #4 Employer #1 & 2 Percentage Cost Group #3 Percentage Cost Group #4 Percentage Bethel Island Municipal District $63,762 0.013% $0 0.000% $0 0.000% Byron Brentwood Cemetery 0 0.000% 0 0.000% 0 0.000% Contra Costa Mosquito and Vector Control District 2,840,172 0.565% 0 0.000% 0 0.000% Contra Costa County Fire Protection District 0 0.000% 0 0.000% 0 0.000% Central Contra Costa Sanitary District 0 0.000% 26,906,131 100.000% 0 0.000% First 5- Children & Families Commission 1,735,009 0.345% 0 0.000% 0 0.000% Contra Costa County 468,102,519 93.196% 0 0.000% 0 0.000% Contra Costa County Employees' Retirement Association 3,262,463 0.650% 0 0.000% 0 0.000% East Contra Costa Fire Protection District 52,840 0.011% 0 0.000% 0 0.000% Contra Costa Housing Authority 0 0.000% 0 0.000% 4,691,885 100.000% In -Home Supportive Services Authority 578,877 0.115% 0 0.000% 0 0.000% Local Agency Formation Commission 202,859 0.040% 0 0.000% 0 0.000% Moraga - Orinda Fire District 486,284 0.097% 0 0.000% 0 0.000% Rodeo Sanitary District 0 0.000% 0 0.000% 0 0.000% Rodeo - Hercules Fire Protection District 80,616 0.016% 0 0.000% 0 0.000% San Ramon Valley Fire District 2,792,368 0.556% 0 0.000% 0 0.000% Superior Court 22.081.605 4.396% 0 0.000% 0 0.000% Total $502,279,374 100.000% $26,906,131 100.000% $4,691,885 100.000% Note: Results may not add due to rounding. v Segal Consulting 13 SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association EXHIBIT A Schedule of Employer Allocations as of December 31, 2014 - Continued PART TWO - Allocation of December 31, 2014 Net Pension Liability (NPL) Including Pension Obligation Bonds (POB) and UAAL Prepayments for Certain Employers Cost Group Cost Group #1 &2 Cost Group #3 Cost Group #4 Employer #1 &2 Percentage Cost Group #3 Percentage Cost Group #4 Percentage Bethel Island Municipal District $114,600 0.021% $0 0.000% $0 0.000% Byron/Brentwood Cemetery 0 0.000% 0 0.000% 0 0.000% Contra Costa Mosquito Abatement District 5,104,681 0.942% 0 0.000% 0 0.000% Contra Costa County Fire Protection District 0 0.000% 0 0.000% 0 0.000% Central Contra Costa Sanitary District 0 0.000% 89,535,510 100.000% 0 0.000% First 5- Children & Families Commission 1,683,167 0.311% 0 0.000% 0 0.000% Contra Costa County 498,742,275 92.016% 0 0.000% 0 0.000% Contra Costa County Employees' Retirement Association 5,863,670 1.082% 0 0.000% 0 0.000% East Contra Costa Fire Protection District 94,970 0.018% 0 0.000% 0 0.000% Contra Costa Housing Authority 0 0.000% 0 0.000% 8,652,807 100.000% In -Home Supportive Services Authority 1,040,424 0.192% 0 0.000% 0 0.000% Local Agency Formation Commission 364,601 0.067% 0 0.000% 0 0.000% Moraga - Orinda Fire District 319,726 0.059% 0 0.000% 0 0.000% Rodeo Sanitary District 0 0.000% 0 0.000% 0 0.000% Rodeo - Hercules Fire Protection District 144,892 0.027% 0 0.000% 0 0.000% San Ramon Valley Fire District 5,018,763 0.926% 0 0.000% 0 0.000% Superior Court 23,526,961 4.341% 0 0.000% 0 0.000% Total $542,018,730 100.000% $89,535,510 100.000% $8,652,807 100.000% Note: Results may not add due to rounding. Segal Consulting 21 SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association EXHIBIT A Schedule of Employer Allocations as of December 31, 2014 - Continued PART TWO - Allocation of December 31, 2014 Net Pension Liability (NPL) Including Pension Obligation Bonds (POB) and UAAL Prepayments for Certain Employers Cost Group #11 Cost Group #12 Total Employer Cost Group #11 Percentage Cost Group #12 Percentage Total NPL Percentage Bethel Island Municipal District $0 0.000% $0 0.000% $114,600 0.010% Byron Brentwood Cemetery 0 0.000% 0 0.000% 66,340 0.006% Contra Costa Mosquito and Vector Control District 0 0.000% 0 0.000% 5,104,681 0.427% Contra Costa County Fire Protection District 0 0.000% 0 0.000% 116,262,504 9.723% Central Contra Costa Sanitary District 0 0.000% 0 0.000% 89,535,510 7.488% First 5- Children & Families Commission 0 0.000% 0 0.000% 1,683,167 0.141% Contra Costa County 0 0.000% 0 0.000% 807,350,288 67.521% Contra Costa County Employees' Retirement Association 0 0.000% 0 0.000% 5,863,670 0.490% East Contra Costa Fire Protection District 0 0.000% 0 0.000% 24,313,820 2.033% Contra Costa Housing Authority 0 0.000% 0 0.000% 8,652,807 0.724% In -Home Supportive Services Authority 0 0.000% 0 0.000% 1,040,424 0.087% Local Agency Formation Commission 0 0.000% 0 0.000% 364,601 0.030% Moraga - Orinda Fire District 0 0.000% 0 0.000% 28,612,847 2.393% Rodeo Sanitary District 0 0.000% 0 0.000% 182,951 0.015% Rodeo - Hercules Fire Protection District 0 0.000% 13,354,320 100.000% 13,499,212 1.129% San Ramon Valley Fire District 64,508,251 100.000% 0 0.000% 69,527,014 5.815% Superior Court 0 0.000% 0 0.000% 23.526.961 1.968% Total $64,508,251 100.000% $13,354,320 100.000% $1,195,701,397 100.000% Note: Results may not add due to rounding. - Segal Consulting 24 SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association EXHIBIT A Schedule of Employer Allocations as of December 31, 2014 — continued Notes: 1. Based on actual January 1, 2014 through December 31, 2014 compensation information that was provided by CCCERA. 2. The Net Pension Liability (NPL) for each Cost Group is the Total Pension Liability (TPL) minus the Plan Net Position (plan assets). The Total Pension Liabilty for each Cost Group is obtained from internal valuation results based on the actual participants in each Cost Group. The Plan Fiduciary Net Position for each Cost Group was estimated by adjusting the valuation value of assets for each Cost Group (which is used to determine employer contribution rates) by the ratio of the total CCCERA Plan Fiduciary Net Position to total CCCERA valuation value of assets. Based on this methodology, any non - valuation reserves (such as the Post Retirement Death Benefit) are allocated amongst the tiers based on each tier's valuation value of assets. 3. For Cost Groups that have one employer, all of the NPL for that Cost Group is allocated to the corresponding employer. 4. For Cost Groups that have multiple employers, the NPL is allocated based on the actual compensation within the Cost Group. a. First calculate ratio of employer's compensation to the total compensation for the Cost Group. b. This ratio is multiplied by an "adjusted" NPL. This adjusted NPL is larger than the actual NPL as it excludes proceeds from Pension Obligation Bonds and any UAAL prepayments from the Cost Group's assets when determining the employer's proportionate share of the NPL for the Cost Group. The allocation of the adjusted NPL is shown above in PART ONE of Exhibit A. c. The amounts of the proceeds from Pension Obligation Bonds and UAAL prepayments as of December 31, 2014 allocated to those employers within each Cost Group are as follows: Cost Group #1: Contra Costa County $342,585,069 Cost Group #1: Superior Court $16,160,622 Cost Group # l: Moraga - Orinda Fire District $554,280 Cost Group #1: First 5- Children & Families Commission $1,435,190 Cost Group #8: Contra Costa County Fire Protection District $100,762,661 Note that the proceeds from Pension Obligation Bonds for Contra Costa County and the Superior Court as of December 31, 2014 (total of $358,745,691) were allocated proportionally based on the compensation information. 5. Subtract from the adjusted NPL in PART ONE the outstanding balance of the proceeds from any Pension Obligation Bonds and any UAAL prepayments for those employers in each Cost Group that are subject to these adjustments. The resulting actual NPL is shown in PART TWO of Exhibit A. 6. If the employer is in several Cost Groups, the employer's total allocated NPL is the sum of its allocated NPL from each Cost Group. 7. Cost Group fl and and Cost Group #2 were combined and Cost Group #7 and Cost Group #9 were combined consistent with the determination of the UAAL rate in the annual funding actuarial valuation. 2s Segal Consulting SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association EXHIBIT B Schedule of Pension Amounts by Employer as of December 31, 2014 Deferred Inflows of Resources Differences Between Expected and Actual Experience Bethel Island Byron Contra Costa Contra Costa Central Contra Net Difference Between Projected and Actual Investment Municipal Brentwood Mosquito and Vector County Fire Costa Sanitary Deferred Outflows of Resources District Cemetery Control District Protection District District Differences Between Expected and Actual Experience $0 $0 $0 $0 $0 Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments 0 0 0 0 0 Changes of Assumptions 0 0 0 0 0 Changes in Proportion and Differences Between $14,802 $8,568 $659,320 $23,420,260 $11,564,393 Employer Contributions and Proportionate Share of Contributions 1,193 40,259 27,610 0 1,920,610 Total Deferred Outflows of Resources $1,193 $40,259 $27,610 $0 $1,920,610 Deferred Inflows of Resources Differences Between Expected and Actual Experience $13,772 $7,972 $613,443 $13,971,581 $10,759,725 Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments 1,024 593 45,624 1,039,114 800,237 Changes of Assumptions 6 3 253 5,753 4,431 Changes in Proportion and Differences Between Employer Contributions and Proportionate Share of Contributions 0 0 0 8,403,812 0 Total Deferred Inflows of Resources $14,802 $8,568 $659,320 $23,420,260 $11,564,393 Net Pension Liability as of December 31, 2013 $141,029 $81,639 $6,281,902 $143,074,496 $110,183,830 Net Pension Liability as of December 31, 2014 $114,600 $66,340 $5,104,681 $116,262,504 $89,535,510 Pension Expense Proportionate Share of Plan Pension Expense $16,528 $9,567 $736,219 $16,767,876 $12,913,194 Net Amortization of Deferred Amounts from Changes in Proportion and Differences Between Employer Contributions and Proportionate Share of Contributions 331 11.183 7,670 (2,334,392) 533 503 Total Employer Pension Expense $16,859 $20,750 $743,889 $14,433,484 $13,446,697 7T- Segal Consulting 26 SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association EXHIBIT B Schedule of Pension Amounts by Employer as of December 31, 2014 — continued Deferred Inflows of Resources Differences Between Expected and Actual Experience San Ramon Valley $2,827,299 Total for all Deferred Outflows of Resources Fire District Superior Court Employers Differences Between Expected and Actual Experience $0 $0 $0 Net Difference Between Projected and Actual Investment 3,441 1,164 59,171 Earnings on Pension Plan Investments 0 0 0 Changes of Assumptions 0 0 0 Changes in Proportion and Differences Between 2,904,586 0 17,554,100 Employer Contributions and Proportionate Share of $11,884,685 $3,038,739 $171,990,717 Contributions 0 1,702,396 17,554,100 Total Deferred Outflows of Resources $0 $1,702,396 $17,554,100 Deferred Inflows of Resources Differences Between Expected and Actual Experience $8,355,250 $2,827,299 $143,690,683 Net Difference Between Projected and Actual Investment Earnings on Pension Plan Investments 621,408 210,276 10,686,763 Changes of Assumptions 3,441 1,164 59,171 Changes in Proportion and Differences Between Employer Contributions and Proportionate Share of Contributions 2,904,586 0 17,554,100 Total Deferred Inflows of Resources $11,884,685 $3,038,739 $171,990,717 Net Pension Liability as of December 31, 2013 $85,561,055 $28,952,654 $1,471,449,251 Net Pension Liability as of December 31, 2014 $69,527,014 $23,526,961 $1,195,701,397 Pension Expense Proportionate Share of Plan Pension Expense $10.027.484 $3,393,159 $172,449,176 Net Amortization of Deferred Amounts from Changes in Proportion and Differences Between Employer Contributions and Proportionate Share of Contributions (806,829) 472,888 0 Total Employer Pension Expense $9,220,655 $3,866,047 $172,449,176 - Segal Consulting 29 SECTION 3: AICPA Schedules for Contra Costa County Employees' Retirement Association EXHIBIT B Schedule of Pension Amounts by Employer as of December 31, 2014 — continued Notes: Amounts shown in this exhibit excluding the differences betweeen employer contributions and proportionate share of contributions were allocated by employer based on the Employer Allocation Percentage calculated in Exhibit A. In determining the pension expense: - Any differences between projected and actual investment earnings on pension plan investments are recognized over a period of five years beginning with the year in which they occur. - Differences between expected and actual experience are recognized over the average of the expected remaining service lives of all employees that are provided with pensions through CCCERA determined as of December 31, 2013 (the beginning of the measurement period ending December 31, 2014) and is 4.60 years. The average of the expected remaining service lives of all employees was determined by: - Calculating each active employees' expected remaining service life as the present value of $1 per year of future service at zero percent interest. - Setting the remaining service life to zero for each nonactive or retired members. - Dividing the sum of the above amounts by the total number of active employee, nonactive and retired members. Only for this initial transition year, the beginning of the year Net Pension Liability as of December 31, 2013 was allocated by using the same Employer Allocation Percentage shown in Exhibit A as of December 31, 2014. We did not attempt to determine the beginning balances for deferred inflows of resources and deferred outflows of resources as of the beginning of the period for the 2014 plan year. Per paragraph 137 of GAS 68, these balances are assumed to be zero. We have adjusted the contributions by employer provided by CCCERA so the total contribution amount match to the financial statement. Note: Results may not total due to rounding. 5323239v 13/05337.108 -;�r Segal Consulting 30