HomeMy WebLinkAbout10.a.1)b) Update on Contra Costa County Employees' Retirement Association (CCCERA) changes to economic and demographic assumptions10.a.1)b)
CONTRA COSTA COUNTY EMPLOYEES'
RETIREMENT ASSOCIATION (CCCERA)
CHANGES TO ECONOMIC AND
DEMOGRAPHIC ASSUMPTIONS
February 2, 2017 Board Meeting
TO O'Malley,
Human Resources Manager
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• Every three years, the CCCERA Board of Trustees
conducts two sets of studies which review both the
demographic and economic assumptions that are
utilized to calculate pension costs.
• In April of 2016, the Board was presented with
several recommendations by its actuary, related to
the economic assumptions that should be used in
future valuations.
• Specifically, the Board adopted the following
changes to the economic assumptions:
• Assumed Earnings/Discount Rate decreased from
7.25% to 7.00%
• Inflation Rate decreased from 325% to 2.75%
Wage Inflation (Projected Payroll) decreased from
4.00% to 3.25%
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• In October of 2016, the Board also adopted
the following changes to the demographic
assumptions:
Post -Retirement mortality rates were adjusted,
both increased and decreased based upon age
categories.
Pre -Retirement (In -Service) mortality, disability,
and early withdrawal rates were adjusted, both
increased and decreased based upon age
categories.
Retirement rates (percentage of those retiring at
any given age) were adjusted, both increased
and decreased based upon age categories.
• The aforementioned assumption changes
were utilized by CCCERA's actuary when
issuing the December 31, 2015 actuarial
valuation, which sets the District's pension
contribution rates for Fiscal Year 2017-18.
• Additionally, the valuation adjusted the
following assumptions based upon actual
experience:
- Leave cash -out assumptions decreased from
6.50% to 5.50%.
ikt . Sick leave conversion rates decreased from
1.25% to 1.20%.
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01/27/17
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• The District's
contribution rates, as
well as the UAAL
(Unfunded Actuarial
Accrued Liability)
amounts, for Fiscal
Year 2017-18 are
reflected in the table.
Fiscal Year
MEE. Normal Costs
UAAL
Legacy
(hired pre -2013)
17.08%
36.31%
PEPRA
(hired post -2013)
11.70%
36.31%
Total UAAL: 588,182,228
2016-17
Normal Costs
MN= UAAL
16.99%
38.98%
Total UAAL: 8100,955,188
IMMO
2015-16
Normal Costs
.1111 UAAL
17.46%
43.12%
Total UAAL:S120,792,362
2014-15
Normal Costs
UAAL
21.53%
53.83%
Total UAAL: 3142,523,585
2013-14
Normal Costs
111111 UAAL
22.21%
40.12%
Total UAAL: 8109,168,803
2012-13
Normal Costs
UAAL
21.94%
35.78%
12.06%
38.98%
12.62%
43.12%
10.92%
53.02%
N/A
N/A
N/A
N/A
Total UAAL: $99,841,380
• The valuation(s) also determine the
employee contribution rates and those are
reflected in the below table.
Fiscal Year
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
Legacy
(hired pre -2013)
California Public Employees'
Pension Reform Act 01 2013
(PEPRA)
(hired post -2013)
11.70%
12.06%
12.62%
11.00%
10.38% N/A
10.47% NIA
01/27/17
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QUESTIONS?
01/27/17
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