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Home My WebLink About04.a. Receive Other Post Employment Benefit (OPEB) Actuarial Valuation as of July 1, 2022Page 1 of 55 Item 4.a. F--1-448�411C-S0 April 25, 2023 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: TEJI O'MALLEY, HUMAN RESOURCES & ORGANIZATIONAL DEVELOPMENT MANAGER PHILIP LEIBER, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER SUBJECT: RECEIVE OTHER POST EMPLOYMENT BENEFIT (OPEB)ACTUARIAL VALUATION AS OF JULY 1, 2022 On March 15, 2023, Central San's OPEB actuary, Foster and Foster Inc. (formerly Bartel Associates, LLC), issued their July 1, 2022 Actuarial Valuation on the OPEB Plan funding for the upcoming fiscal years (FY) ending June 30, 2024 (FY 2023-24) and June 30, 2025 (FY 2024-25). Central San employs the services an independent qualified consultant to prepare this "funding" actuarial valuation every two years, which is necessary in assessing the current and projected OPEB Plan funded status as well as determining the Actuarially Determined Contribution (ADC) requirements for the next two budget years. Differences Between Report Types Similar to the actuarial reports obtained from the Contra Costa County Employees' Retirement Association (CCCERA) for Central San's pension plan, two types of actuarial reports are also issued for the OPEB Plan. While the attached "funding" actuarial valuation is obtained every two years and also assesses the OPEB Plan's funded position, it is largely a forward looking document that helps determine minimum future Plan contribution requirements necessary to ensure the Plan remains sufficiently funded and gradually pays down the unfunded actuarial accrued liability (UAAL). In contrast, Central San also obtains an annual "reporting" actuarial valuation pursuant to Government Accounting Standards Board Statement 75 (GASB 75) that is necessary for compilation of the independently audited annual financial statements. The annual GASB 75 "reporting" valuation is largely a backwards looking document, providing the UAAL on a market basis and eliminates the use of smoothing on investment gains and losses, as well as other differences. OPEB Plan's Funded Status The attached OPEB valuation report demonstrates that Central San's OPEB Plan is healthy and has been improving in funded status since the transition to CalPERS Healthcare effective July 1, 2019. The valuation shows that the Plan's funded position on a valuation basis is projected to increase by 12.9% to a funded status of 98.6% as of July 1, 2023. The ADC amounts for FY 2023-24 and FY 2024-25 are projected to be $2.021 million and $2.111 million respectively. With a closed amortization period of twelve years, the OPEB Plan's UAAL is projected to be paid off in FY 2032-33. This differs from the 18-year April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 97 of 160 Page 2 of 55 rolling amortization period utilized in the CCCERA pension plan actuarial report, which is scheduled to mature in FY 2028-29. The actuarial valuation also reported a UAAL of $3.114 million as of July 1, 2022, which is a sharp decline from a UAAL of $15.238 million reported in the last actuarial valuation dated July 1, 2020. FY2023-24 Budget Impacts Given the relatively healthy status of Central San's OPEB Plan following the transition to CalPERS Healthcare along with favorable investment returns over recent years, the OPEB Plan's FY 2023-24 estimated cost of retiree healthcare premiums, referred to as "PayGo" costs in the actuarial valuation, are projected to significantly exceed the ADC. Attachment 2 provides a chart illustrating the historical trend of the ADC compared to PayGo costs using actual prior fiscal year retiree healthcare premium costs (with the exception of FY 2022-23 through FY 2024-25 which use projected PayGo costs per the actuarial reports). As indicated by the chart, following the transition to CalPERS Healthcare on July 1, 2019, projected retiree PayGo costs started to exceed the ADC. In prior years, when projected PayGo costs fell short of the ADC, the practice was to contribute to the OPEB trust equal to the difference to ensure the OPEB Plan continues to receive sufficient funding. Looking towards FY 2023-24, PayGo costs are projected to exceed the ADC by approximately $2.193 million. Given this significant difference, and as the ADC estimate for FY 2024-25 suggests this gap may continue to grow in the near future, the FY 2023-24 budget limits OPEB costs at the ADC, assuming that the difference is reimbursable (and will be reimbursed) from the OPEB trust. Capping the budgeted OPEB cost at the ADC in this manner is a prudent approach given Central San's long-term objective of striving to maintain fiscal stability and sustainability balancing the needs of conflicting priorities with limited available resources. Capping budgeted OPEB costs at the ADC will not result in an increase to the UAAL but will slightly slow the pace at which the UAAL is eliminated. Capping annual budgeted OPEB costs at the ADC will still result in the UAAL decreasing over time as the ADC contains both a provision for current costs (the "Normal Cost") as well as the UAAL. As noted previously, in this latest actuarial valuation, UAAL is projected to be fully paid off in twelve years, or FY 2032-33. Furthermore, the Board can still direct additional payments towards the OPEB trust utilizing year-end favorable budgetary variances, which has been past practice. Foster & Foster will provide a brief presentation on the results of their actuarial valuation dated July 1, 2022, and be available to answer any questions of the Finance Committee. A copy of their presentation was not available at the time of agenda packet dissemination and will be provided as a handout at the Committee meeting. Strategic Plan Tie -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. July 1, 2022 OPEB Funding Valuation 2. ADC to PayGo Trend Chart 3. Presentation April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 98 of 160 Page 3 of Attachment 1 49% CENTRAL CONTRA COSTA SANITARY DISTRICT RETIREE HEALTHCARE PLAN FOSTER & FOSTER ACTUARIES AND CONSULTANTS /// July 1, 2022 Actuarial Valuation Plan Funding for 2023/24 and 2024/25 Foster & Foster Inc. Doug Pryor, ASA, EA, MAAA Catherine Wandro, ASA, FCA, MAAA Nathan Hinojosa April 11, 2023 CONTENTS Topic Page Benefit Summary 1 Participant Statistics 7 Actuarial Assumptions Highlights 11 Assets 15 Results 21 Actuarial Certification 41 Exhibits Premiums E- 1 Data Summary E- 5 Actuarial Assumptions E-17 Actuarial Methods E-32 Definitions E-33 Packet - Page 99 of 160 Page 4 of BENEFIT SUMMARY i 7 General Employees, Management Support/ Confidential MSCG , Mana ement, Unrepresented Tier I Tier II Tier III Board of Hired < 5/1/85 Hired 5/1/85 - 6/30/09 Hired > 6/30/09 Directors ■ Eligibility ■ Retire directly from the District under CCCERA (service/disability) ■ Rule of 65 — ■ Same as Tier I ■ Rule of 70 — ■ No age or age plus except MSCG & age plus service District svc at Mgmt hired District svc at requirement least 65 between 4/19/03 least 70 ■ Minimum - and 6/30/09 - ■ Minimum - age age 50 & 10 Minimum age 55 55 & 10 years ears svc & 10 years svc svc ■ Medical Plans ■ District joined PEMHCA effective 7/1/19 ■ PEMHCA minimum, unequal method' ■ Participants retiring directly from the District but not meeting age and service eligibility requirements will receive the PEMHCA minimum 1 PEMHCA minimum for retirees is $22.35/month in 2022, $30.20/month in 2023. r, April 11, 2023 1 BENEFIT SUMMARY General Employees, Management Support/ Confidential MSCG ,Mana ement, Unrepresented Tier I Tier II Tier III Board of Hired < 5/1/85 Hired 5/1/85 - 6/30/09 Hired > 6/30/09 Directors ■ Medical ■ District pays % of medical premium up to highest cost "Core Plan" Benefit ■ Medical "Core Plans": • Pre 65: Kaiser and Health Net SmartCare • Post 65: Kaiser Senior Advantage and UnitedHealthcare ■ Dental & ■ District pays % of dental and vision premiums Vision Benefit ■ District -Paid ■ Pre 65: 100% ■ Pre 65: 100% ■ Pre 65: 50%2 ■ Medical: Percent of ■ Post 65: 100% ■ Post 65: 50% ■ Post 65: 50% PEMHCA Premiums for ■ Retiree and ■ Retiree and ■ Retiree and Minimum Medical, dependents dependents spouse ■ Dental & Dental & Vision: Vision Self -pay z Tier III General and MCSG employees hired between 6/30/09 and 4/18/13 will have 100% of the dental premium paid by the District until age 65 for the retiree and qualified dependents. Ao-- UApril 11, 2023 2 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 100 of 160 Page 5 of BENEFIT SUMMARY General Employees, Management Support/ Confidential MSCG , Mana ement, Unrepresented Tier I Tier II Tier III Board of Hired < 5/1/85 Hired 5/1/85 - 6/30/09 Hired > 6/30/09 Directors ■ Life Insurance ■ 50% of active ■ $10,000 ■ None ■ Tier I - coverage $25,000 ■ Tier II-$10,00 ■ Elected >1/1/95 $10,000 self - pay ■ Medicare ■ 100% District paid for retiree and ■ None ■ None Part B eligible dependent Premiums ■ Surviving ■ Benefits continue to qualified surviving dependents of active Spouse & employees or retirees Dependents r '.dApril 11, 2023 BENEFIT SUMMARY cC S Implied Subsidy ■ For PEMHCA, employer cost for allowing retirees to participate at active rates. • General trend: $700 $600 $500 $400 $300 25 30 1 35 1 40 1 45 50 55 1 60 1 64 tBlended Premium 600 600 600 600 600 600 600 1 600 1 600 tC-0yAge 400 420 460 500 550 600 640 1 700 1 800 ■ GASB 75 defers to actuarial standards of practice. ■ Actuarial Standards Board ASOP 6 (May 2014): • Requires implied subsidy valued for community rated plans such as PEMHCA. ■ Valuation includes the PEMHCA implied subsidy. UApril 11, 2023 4 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 101 of 160 BENEFIT SUMMARY I Page 6 of 55 Historical Benefits Paid Cash Benefits Medical Implied & Vision Dental Life Subsidy Total 2021/22 $3,254,782 $306,598 $23,441 $598,000 $4,182,821 2020/21 3,827,685 256,403 23,158 547,000 4,654,246 2019/20 3,119,542 303,337 22,981 607,795 4,053,655 2018/19 4,530,516 326,085 25,839 815,000 5,697,440 2017/18 4,463,803 334,003 25,943 748,000 5,571,750 2016/17 4,372,618 350,058 25,951 656,000 5,404,628 2015/16 4,192,063 375,784 28,032 564,000 5,159,879 2014/15 4,306,105 384,769 28,212 595,000 5,314,087 2013/14 3,991,877 378,939 42,824 556,000 4,969,641 2012/13 3,867,854 375,913 43,329 536,000 4,823,096 April 11, 2023 5 BENEFIT SUMMARY Historical Benefits Paid (Amounts in millions) $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 pov, �p1�1 �11�L �ti1�� 11A �A11� "0" �611'1 �,1A,\* �'WO ti"0", y01ti� 1��1tiL ■ Medical ■ Dental ■ Life ❑ Implied Subsidy `O/ April 11, 2023 6 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 102 of 160 PARTICIPANT STATISTICS Page 7 of i Actives 7/1/12 7/1/14 7/1/16 7/1/18 7/1/20 7/1/22 ■ Counts • Tier I 4 2 2 1 1 - • Tier 11 197 174 163 135 113 98 • Tier III 41 83 114 138 157 182 • Total 242 259 279 274 271 280 ■ Average • Age 46.2 46.0 46.5 46.1 46.5 46.3 • District Service 10.2 9.6 10.2 10.3 10.5 10.4 • CCCERA 11.2 10.2 11.3 11.5 12.4 10.2 Service • Pay $87,300 $98,900 $110,100 $115,500 $128,200 $137,000 ■ Total Payroll ($000 s) 21,116 25,625 30,715 31,635 34,750 38,350 r April 11, 2023 PARTICIPANT STATISTICS i Retirees 7/1/12 7/1/14 7/1/16 7/1/18 7/1/20 7/1/22 ■ Counts • Tier I 177 171 161 154 148 147 • Tier II 64 78 87 111 130 137 • Tier III - - - - - 7 • Total 241 249 248 265 278 291 ■ Average • Age 67.3 68.1 69.4 70.0 70.8 71.7 • Retirement Age ➢ Service 57.1 57.0 57.2 57.6 57.6 58.0 ➢ Disability 52.6 52.5 52.5 53.1 53.1 54.1 VApril 11, 2023 8 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 103 of 160 PARTICIPANT STATISTICS Page 8 of i 600 500 400 300 200 100 r April 11, 2023 Historical Participant Counts 508 527 539 549 571 248 265 278 434 454 468 249 188 216 260 266 252 242 259 279 274 271 280 2007 2009 2010 2012 2014 2016 2018 2020 2022 ■ Actives ■ Retirees PARTICIPANT STATISTICS This page intentionally blank April 11, 2023 10 AML April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 104 of 160 ACTUARIAL ASSUMPTIONS HIGHLIGHTS Page 9 of i Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Valuation Date ■ July 1, 2020 ■ July 1, 2022 ■ Fiscal Years 2021/22 & 2022/23 ■ Fiscal Years 2023/24 & 2024/25 ■ Funding Policy ■ Pre -fund full ADC with PARS ■ Same Moderate Portfolio ■ General ■ 2.75% annually ■ 2.50% annually Inflation ■ Same as CCCERA 12/31/19 ■ Same as CCCERA 12/31/21 valuation assumption valuation assumption ■ Discount Rate ■ 5.75% ■ 5.25% ■ 55% confidence level ■ 55% confidence level ■ Retirement, ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation Termination, assumption assumption Disability, (2015-17 Experience Study) (2018-20 Experience Study) Mortality ■ Dental and ■ 3.75% ■ 3.50% Vision Trend r April 11, 2023 11 ACTUARIAL ASSUMPTIONS HIGHLIGHTS i Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Medical Trend Increase from Prior Year Increase from Prior Year Post- Post- Post- Post - Calendar Pre- Medicare Medicare Calendar Pre- Medicare Medicare Year Medicare Kaiser Other Year Medicare Kaiser Other 2020 Actual 2020 Premiums 2022 Actual 2022 Premiums 2021 Actual 2021 Premiums 2023 Actual 2023 Premiums 2022 7.00% 5.00% 6.10% 2024 8.50% 6.25% 7.50% 2023 6.75% 4.85% 5.90% 2025 8.50% 6.25% 7.50% 2024 6.50% 4.70% 5.70% 2026 7.90% 5.65% 6.90% 2025 6.25% 4.60% 5.50% 2027 7.35% 5.45% 6.50% 2026 6.00% 4.50% 5.30% 2028 6.75% 5.25% 6.10% 2027 5.80% 4.45% 5.15% 2029 6.20% 5.05% 5.70% 2028 5.60% 4.40% 5.00% 2030 5.60% 4.85% 5.25% 2029 5.40% 4.35% 4.85% 2031 5.05% 4.56% 4.85% 2030 5.20% 4.30% 4.70% 2032-38 4.45% 4.45% 4.45% 2031-35 5.05% 4.25% 4.60% 2039-40 4.35% 4.35% 4.35% 2036-45 4.90% 4.20% 4.50% 2041 4.30% 4.30% 4.30% 2046-55 4.75% 4.15% 4.45% 2042-44 4.25% 4.25% 4.25% 2056-65 4.60% 4.10% 4.40% 2045-47 4.20% 4.20% 4.20% 2066-75 4.30% 4.05% 4.20% 2048-50 4.15% 4.15% 4.15% 2076+ 4.00% 4.00% 4.00% 1 1 1 1 2076+ 3.45% 3.45% 3.45% loop- F I 49MLApril 11, 2023 12 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 105 of 160 ACTUARIAL ASSUMPTIONS HIGHLIGHTS Page10 1 55 i Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Medicare Calendar Increase from Prior Calendar Increase from Prior Part B Year Year Year Year Premium 2020 Actual Premiums 2022 Actual Premiums Trend 2021 Actual Premiums 2023 Actual Premiums 2022 5.10% 2024 3.05% 2023+ Same as Post- 2025 6.15% Medicare Medical 2026 8.00% Trend 2027 7.75% 2028 5.95% 2029 5.60% 2030 5.25% 2031 4.90% 2032+ Same as Post - Medicare Medical Trend _� r April 11, 2023 13 ACTUARIAL ASSUMPTIONS HIGHLIGHTS i Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Age -related Included Due to age -risk adjusted federal Claims Costs subsidies, no age -based claims for Medicare costs were included for Advantage Medicare Advantage plans. Plans VApril 11, 2023 14 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 106 of 160 ASSETS Page 11 155 PARS Fund Options Moderately Capital Conservative Conservative Moderate Balanced Appreciation ■ Target Allocation • Equity 15% 30% 50% 60% 75% • Fixed Income 80% 65% 45% 35% 20% • Cash 5% 5% 5% 5% 5% • Total 100% 100% 100% 100% 100% ■ Median Return 4.00% 4.50% 5.50% 5.75% 6.25% ■ Confidence Level • 50% 4.00% 4.50% 5.50% 5.75% 6.25% • 55% 3.75% 4.50% 5.25% 5.50% 6.00% • 60% 3.75% 4.25% 5.00% 5.25% 5.50% VApril 11, 2023 15 ASSETS Discount Rate Development PARS Moderate Allocation 50% 55% 60% Confidence Confidence Confidence Limit Limit Limit ■ Expected Return 5.59% 5.34% 5.08% ■ Investment Expenses 0.15% 0.15% 0.15% ■ Net Return 5.44% 5.19% 4.93% Recommended ■ Assumption 5.50% 5.25% 5.00% 3 Based on an average investment expense for a typical passive investment strategy. This is not plan specific. 'JApril 11, 2023 16 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 107 of 160 ASSETS Page12 1 55 Market Value of Plan Assets4 (Amounts in 000's) Projected 2020/21 2021/22 2022/235 ■ Market Value $ 69,849 $ 84,607 $ 75,404 (Beginning of Year • Employer Contribution - 1,250 1,000 • Benefit Payments - - (487) • Investment Earnings 14,958 (10,231) 4,167 • Expenses (200) (222) (205) ■ Market Value 84,607 75,404 79,879 End of Year ■ Approximate Annual Return 21.1% (12.3%) 5.25% Reconciliations for 2020/21 and 2021/22 are based on PARS annual asset statements. Actual assets at 6/30/22 projected to 6/30/23 assuming $1 million trust contribution, $487 thousand reimbursement from trust, assumed investment return of 5.25%, and estimated expenses. _�-1 April 11, 2023 17 ASSETS Actuarial Value of Plan Assets (Amounts in 000's) 2020/21 2021/22 2022/23 ■ Actuarial Value $ 69,623 $ 75,822 $ 80,255 (Beginning of Year • Employer Contribution - 1,250 1,000 • Benefit Payments/Adjustments - - (487) • Expected Investment Return 4,003 4,395 4,216 ■ Expected AVA (End of Year) 73,626 81,467 84,984 ■ MVA (End of Year) 84,607 75,404 79,879 ■ Preliminary AVA6 75,822 80,255 83,963 • Minimum AVA (80% of MVA) 67,686 60,324 63,903 • Maximum AVA (120% of MVA) 101,528 90,485 95,855 ■ Actuarial Value 75,822 80,255 83,963 End of Year ■ Approximate Annual Return 8.9% 4.2% 4.0% 6 Expected AVA plus 20% of the difference between the MVA and expected AVA. UApril 11, 2023 18 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 108 of 160 Page13 of 55 ASSETS $18,000 $15,000 $12,000 $9,000 $6,000 $3,000 $(3,000) $(6,000) $(9,000) $(12,000) _� r April 11, 2023 Historical Asset Changes (Amounts in 000's) po o�o°�x~o \-,~ \ do ti�~� � ti`�1� ti�\~� ti��1h (0 tih��ti�O��^ ti^�� tip'\,� ti°l��o'Zo�� 1~\�� o Contributions E Net Return ■ Benefits Paid 19 ASSETS Historical Annualized Asset Returns „° 20% ................................................................................................................ 15% ........................................................................................................... 10% ........... .............................. ............,......... : -■. 5% ...................................................................................................... •■ 0% (5%) (10%) (15%) 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 19/20 20/21 21/22 —� Market Value 4.3% 17.5% 2.5% 10.7% 13.5% 2.8% 0.5% 10.6% 6.4% 4.5% 21.1% -12.3% Expected Return 6.50% 6.50% 6.50% 6.25% 6.25% 6.25% 6.25% 6.25% 6.25% 15.75%. 5.75% 5.75% 5.75% f - Actuarial Value 6.0% 8.8% 6.8% 6.3% 8.3% 7.7% 5.6% 6.5% 6.4% 5.8% 8.90N 4.2% UApril 11, 2023 20 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 109 of 160 Page14 of 55 RESULTS i 7 Actuarial Obligations (Amounts in 000's) 7/1/22 Valuation Projected to 7/1/20 Valuation 7/1/22 7/1/23 ■ Present Value of Benefits • Actives $ 44,623 $ 43,344 • Retirees 52,678 52,156 • Total 97,301 95,500 ■ Actuarial Accrued Liability • Actives 32,183 31,213 • Retirees 52,678 52,156 • Total 84,861 83,369 $ 85,192 ■ Actuarial Value of Assets (69,623) (80,255) 8( 3,963) ■ Unfunded AAL 15,238 3,114 1,229 ■ AVA Funded Percent 82.0% 96.3% 98.6% ■ MVA Funded Percent 82.3% 90.4% 93.8% ■ Normal Cost' 2,004 1,880 1,885 ■ Expected Pay -Go Cost 4,360 4,214 4,624 Normal Cost includes estimated PARS and PEMHCA administrative fees. C� April 11, 2023 21 RESULTS Historical Plan Funded Status (Amounts in 000's) $120,000 $100,000 96% $80,000 .■ 2° $60,000 4°/ $40,000 320 2° $20,000 0°/ 0% 3% $0 7/l/07 7/l/09 7/1/10 7/1/12 7/1/14 7/1/16 7/1/18 7/l/20 7/l/22 � Retiree pay -go o Retiree AAL less pay -go o Active AAL -f •AVA —A—MVA X% Funded Ratio `O/ April 11, 2023 22 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 110 of 160 Page 15 0� 55 RESULTS Estimated Actuarial Gains & Losses (Amounts in 000's) AAL AVA UAAL ■ 7/1/20 Actual $84,861 $69,623 $15,238 ■ 7/1/22 Expected 89,708 79,960 9,748 ■ Experience Gains/Losses: • Asset Gain - 295 (295) • Demographic & Other Loss 1,282 - 1,282 • Actual Premiums & Claims (6,389) - (6,389) ■ Assumption Changes: • Medicare Advantage Age Claims Removed (6,644) - (6,644) • CCCERA 2018 to 2020 Experience Study9 (1,356) - (1,356) • Mortality Improvement MP-21 (587) - (587) • Medical/Dental/Vision Trend 4,668 - 222 • General Inflation 222 - 4,668 • Discount Rate 2,465 - 2,465 ■ Total Changes 6,339 295 6,634 0 7/1/22 Actual 83,369 80,255 3,114 Mainly due to overall investment return and contributions slightly higher than expected between $1,313 gain from change to retirement rates and $43 gain from change to termination rates. loop—, VApril 11, 2023 23 RESULTS 71/20 and 6/30/22. Actuarially Determined Contribution (ADC) (Amounts in 000's) cC SP q 7/1/20 Valuation 7/1/22 Valuation 2021/22 2022/23 2023/24 2024/25 ■ ADC-$ • Normal Cost10 $ 2,004 $ 2,011 $ 1,880 $ 1,885 • UAAL Amortization' l 1,320 1,320 141 226 • Total 3,324 3,331 2,021 2,111 ■ UAAL Amortization Years 14 13 12 11 10 2021/22, 2022/23, 2023/24 and 2024/25 Normal Cost include estimated PARS and PEMHCA administrative fees of $169,000, $176,000, $173,000 and $178,000 respectively. " Level dollar amortization method. 2024/25 includes impact of lower (than 5.25%) return on Actuarial Value of Assets due to AVA exceeding WA. UApril 11, 2023 24 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 111 of 160 Pa- 16 of 55 RESULTS Historical Actuarially Determined Contributions12 (Amounts in 000's) y�,vw $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 NorlCot+Adm 08/09 1 2,2132 , 21,31/14 34 141/15 2,3, 15/16 1617 , 17/18 , 18/19 ,0 19120 10 2 02 2/1 221/212,3220 0111,877 2134214 212,8228655 ■ AA0-m4,453 5,62 5,86,8 6,0 5,6 5,969 5,541 5,541 5,084 5,084 1,793 1,793 1,320 6,25 6,976 6,976 8,300 8,300 8,103 8,103 7,866 7,866 17,524 17,524 13,906 13,917 13,32,4 13,3311 Z021 2,111 12 2019/20 and 2020/21 ADCs were revised to reflect the July 1, 2019 move to the PEMHCA medical program. loop-, VApril 11, 2023 25 RESULTS Historical Contributions and ADCs (Amounts in 000's) $12,000 $10,000 145% 133% ° 134°/6 108% $8,000 100% 96% 100% 99% ° $6,000 132% ° 774'%1.77 119El $4,000 $2,000 $0 C) F_ETrust Contrib =Cash BP =IS BP Full Pre -Funding ADC Percentage of ADC Contributed `O/ April 11, 2023 26 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 112 of 160 Pane17 of 55 RESULTS i 7 r `April 11, 2023 Proiected Benefit Payments (Amounts in 000's) Fiscal Year Cash Subsidy Implied Subsidy 2023/24 $ 3,746 $ 468 $ 4,214 2024/25 4,046 578 4,624 2025/26 4,276 623 4,899 2026/27 4,429 633 5,062 2027/28 4,639 700 5,339 2028/29 4,726 683 5,409 2029/30 4,907 746 5,653 2030/31 4,935 744 5,679 2031/32 4,972 690 5,662 2032/33 5,006 678 5,684 27 RESULTS 7 Estimated 10-Year Full ADC Pre -Funding Illustration (Amounts in 000's) Contribution Trust Fiscal Benefit Pre -Funding/ Total Year ADC13 Payments Disbursement Contribution 2023/24 $ 2,021 $ 4,214 $ (2,193) $ 2,021 2024/25 2,111 4,624 (2,513) 2,111 2025/26 2,177 4,899 (2,722) 2,177 2026/27 2,224 5,062 (2,838) 2,224 2027/28 2,256 5,339 (3,083) 2,256 2028/29 2,275 5,409 (3,134) 2,275 2029/30 2,285 5,653 (3,368) 2,285 2030/31 2,286 5,679 (3,393) 2,286 2031/32 2,281 5,662 (3,381) 2,281 2032/33 2,271 5,684 3,413 2,271 13 Includes estimated administrative fees. `O/ April 11, 2023 28 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 113 of 160 Pa— 18 of 55 RESULTS Actuarial Obligations by Cash/Implied Subsidy July 1, 2022 (Amounts in 000's) Implied Cash Subsidy Total ■ Present Value of Benefits • Actives $ 35,176 $ 8,168 $ 43,344 • Retirees 48,873 3,283 52,156 • Total 84,049 11,451 95,500 ■ Actuarial Accrued Liability • Actives 25,804 5,409 31,213 • Retirees 48,873 3,283 52,156 • Total 74,677 8,692 83,369 ■ Actuarial Value of Assets14 (71,888) (8,367) (80,255) ■ Unfunded AAL 2,789 325 3,114 ■ Normal Cost 2023/24 15 1,497 383 1,880 ■ Pa Go Costs 2023/24 3,746 468 4,214 14 Assets allocated in proportion to Actuarial Accrued Liability. is Includes estimated PARS and PEMHCA administrative fees. loop-, F April 11, 2023 29 RESULTS Actuarially Determined Contribution (ADC) by Cash/Implied Subsidy FY 2023/24 (Amounts in 000's) Cash Implied Subsidy Total ■ADC -$ • Normal Cost16 $ 1,497 $ 383 $ 1,880 • UAAL Amortization 126 15 141 • Total 1,623 398 2,021 ■ PayGo Costs 3,746 468 4,214 " Includes estimated PARS and PEMHCA administrative fees. `O/ April 11, 2023 30 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 114 of 160 RESULTS Page19 1 55 Actuarial Obligations by Tier July 1, 2022 (Amounts in 000's) Tier I Tier II Tier III Total ■ Present Value of Benefits • Actives $ - $ 27,577 $ 15,767 $43,344 • Retirees 24,897 26,212 1,047 52,156 • Total 24,897 53,789 16,814 95,500 ■ Actuarial Accrued Liability • Actives - 23,623 7,590 31,213 • Retirees 24,897 26,212 1,047 52,156 • Total 24,897 49,835 8,637 83,369 ■ Actuarial Value of Assets17 (24,897) (47,478) (7,880) (80,255) ■ Unfunded AAL - 2,357 757 3,114 ■ Normal Cost (2023/24)18 50 784 1,046 1,880 ■ Pa Go Costs (2023/24) 1,710 2,395 109 4,214 17 Assets were first allocated to retiree AAL with the remainder allocated based on active AAL. 18 Includes estimated PARS and PEMHCA administrative fees. r, VApril 11, 2023 31 RESULTS i w Actuarially Determined Contribution (ADC) by Tier FY 2023/24 (Amounts in 000's) Tier I Tier II Tier III Total ■ADC -$ • Normal Cost19 $ 50 $ 784 $ 1,046 $ 1,880 • UAAL Amortization - Actives - 104 37 141 • Subtotal - Active ADC 50 888 1,083 2,021 • UAAL Amortization - Retirees - - - - • Total ADC 50 888 1,083 2,021 ■ Number of Actives - 98 182 280 ■ Active ADC Per Capita n/a 9 6 7 ■ PayGo Costs 1,710 2,395 109 4,214 " Includes estimated PARS and PEMHCA administrative fees. `O/ April 11, 2023 32 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 115 of 160 Page 20 of 55 RESULTS i 7 Actuarial Obligations by Benefit Type - July 1, 2022 (Amounts in 000's) Medical Implied 1111- & Vision Dental Life Subsidy Total ■ Present Value of Benefits • Actives $ 32,574 $ 2,423 $ 179 $ 8,168 $ 43,344 • Retirees 42,021 3,876 2,976 3,283 52,156 74,595 95,500 • Total 6,299 3,155 11,451 ■ Actuarial Accrued Liability • Actives 23,945 1,701 158 5,409 31,213 • Retirees 42,021 3,876 2,976 3,283 52,156 65,966 83,369 • Total 5,577 3,134 8,692 ■ Actuarial Value of Assets20 (63,5021 5 369 (3,017) 8� ,367) (80,255) 3,114 ■ Unfunded AAL 2,464 208 117 325 ■ Normal Cost 2023/24 21 1,373 113 11 383 1,880 ■ Pa Go Costs (2023/24) 3,254 313 179 468 4,214 2° Assets allocated in proportion to Actuarial Accrued Liability. 21 Includes estimated PARS and PEMHCA administrative fees. loop-, F April 11, 2023 33 RESULTS i w Actuarially Determined Contribution (ADC) by Benefit Type22 (Amounts in 000's) FY 2023/24 Medical & Vision Dental Life Implied Subsidy Total ■ADC -$ • Normal Cost $ 1,373 $ 113 $ 11 $ 383 $ 1,880 • UAAL Amortization 112 9 5 15 141 • Total 1,485 122 16 398 2,021 ■ Pa Go Costs 3,254 313 179 468 4,214 FY 2024/25 Medical & Vision Dental EImplied Life Subsidy Total ■ADC -$ • Normal Cost $ 1,377 $ 113 $ 12 $ 383 $ 1,885 • UAAL Amortization 178 15 8 24 226 • Total 1,556 128 20 407 2,111 ■ Pa Go Costs 3,536 325 185 578 4,624 22 Normal Cost includes estimated PARS and PEMHCA administrative fees. Medical includes vision. `O/ April 11, 2023 34 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 116 of 160 Page 21 of 55 RESULTS i 7 Actuarial Cost Method Sensitivity (Amounts in 000's) EAN Cost Method Valuation Sensitivity Level Dollar Level % of Pa ■ Present Value of Benefits 7/1/22 $ 95,500 $ 95,500 ■ Funded Status 7/1/22 • Actuarial Accrued Liability 83,369 79,273 • Actuarial Value of Assets (80,255) (80,255) • Unfunded AAL 3,114 982 ■ 2023/24 ADC - $ • Normal Cost23 1,880 2,164 • UAAL Amortization 141 285 • Total 2,021 1,879 ■ Projected 2023/24 Payroll 40,488 40,488 ■ 2023/24 ADC - % of Payroll 5.0% 4.6% 21 Includes estimated PARS and PEMHCA administrative fees. r, F April 11, 2023 35 RESULTS This page intentionally blank April 11, 2023 36 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 117 of 160 Page 22 of 55 RESULTS Generic Actuarial Cost Method Comparison ADC as a $ Amount Level % Years 0� April 11, 2023 37 a 4* 0 RESULTS Generic Actuarial Cost Method Comparison ADC as a % of Pay Years Level $ .— April 11, 2023 38 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 118 of 160 Page 23 55 RESULTS i 7 Discount Rate Sensitivity (Amounts in 000's) Discount Rate 5.00% 5.25% 5.50% (-0.25%) Valuation (+0.25%) ■ Present Value of Benefits 7/1/22 $ 99,032 $ 95,500 $ 92,171 ■ Funded Status 7/1/22 • Actuarial Accrued Liability 85,958 83,369 80,904 • Actuarial Value of Assets (80,255) (80,255) (80,255) • Unfunded AAL 5,703 3,114 649 ■ 2023/24 ADC - $ • Normal Cost24 1,977 1,880 1,789 • UAAL Amortization 433 141 146 • Total 2,410 2,021 1,643 ■ Projected 2023/24 Payroll 40,488 40,488 40,488 ■ 2023/24 ADC - % of Payroll 6.0% 5.0% 4.1% " Includes estimated PARS and PEMHCA administrative fees. r, F April 11, 2023 39 RESULTS Medical Trend Sensitivity (Amounts in 000's) 74-cw- SP q +1 % Current Medical Trend Valuation All Years ■ Present Value of Benefits 7/1/22 $ 95,500 $ 110,083 ■ Funded Status 7/1/22 • Actuarial Accrued Liability 83,369 94,769 • Actuarial Value of Assets (80,255) (80,255) • Unfunded AAL 3,114 14,514 ■ 2023/24 ADC - $ • Normal Cost25 1,880 2,273 • UAAL Amortization 141 1,558 • Total 2,021 3,831 ■ Projected 2023/24 Payroll 40,488 40,488 ■ 2023/24 ADC - % of Payroll 5.0% 9.5% 25 Includes estimated PARS and PEMHCA administrative fees. loop-, April 11, 2023 40 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 119 of 160 Page 24 of 55 ACTUARIAL CERTIFICATION i 7 This report presents the Central Contra Costa Sanitary District Retiree Healthcare Plan ("Plan") July 1, 2022 actuarial valuation. The purpose of this valuation is to: ■ Determine the Plan's July 1, 2022 Funded Status, and ■ Calculate the 2023/24 and 2024/25 Actuarially Determined Contributions. Information provided in this report may be useful to the District for the Plan's financial management. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as: plan experience differing from that anticipated by the assumptions; changes in assumptions; changes expected as part of the natural progression of the plan; and changes in plan provisions or applicable law. Actuarial models necessarily rely on the use of estimates and are sensitive to changes. Small variations in estimates may lead to significant changes in actuarial measurements Due to the limited scope of this assignment, we did not perform an analysis of the potential range of such measurements. The valuation is based on Plan provisions, participant data, and asset information provided by the District as summarized 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 principles and practices. As members of the American Academy of Actuaries meeting the Academy Qualification Standards, we certify the actuarial results and opinions herein. Respectfully submitted, WW - Doug Pryor, ASA, EA, MAAA Catherine A. Wandro, ASA, MAAA, FCA Senior Consulting Actuary Consulting Actuary Foster & Foster, Inc. Foster & Foster, Inc. April 11, 2023 April 11, 2023 VApril 11, 2023 41 ACTUARIAL CERTIFICATION i w This page intentionally blank r April 25, 2bN 18p4661 FINANCE Committee Meeting Agenda Packet - Page 120 of 160 EXHIBITS - PREMIUMS Page 25 1 55 2022 PEMHCA Monthly Medical Premiums Region 1 Medical Plan Non -Medicare Eligible Medicare Eligible Single 2-Party Family Single 2-Party Family Anthem Select $1,015.81 $2,031.62 $2,641.11 $360.19 $720.38 $1,080.57 Anthem Traditional 1,304.00 2,608.00 3,390.40 360.19 720.38 1,080.57 Blue Shield Access+ 1,116.01 2,232.02 2,901.63 353.11 706.22 1,059.33 Blue Shield Trio 898.54 1,797.08 2,336.20 353.11 706.22 1,059.33 Health Net SmartCare 1,153.00 2,306.00 2,997.80 n/a n/a n/a Kaiser 857.06 1,714.12 2,228.36 302.53 605.06 907.59 UnitedHealthcare Alliance 1,020.28 2,040.56 2,652.73 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 294.65 589.30 883.95 UnitedHealthcare Ede n/a n/a n/a 347.21 694.42 1,041.63 Western Health Advantage 741.26 1,482.52 1,927.28 314.94 629.88 944.82 PERS Platinum 1,057.01 2,114.02 2,748.23 381.94 763.88 1,145.82 PERS Gold 701.23 1,402.46 1,823.20 377.41 754.82 1,132.23 PORAC 799.00 1,725.00 2,219.00 461.00 919.00 1,471.00 VApril 11, 2023 E-1 EXHIBITS - PREMIUMS 2023 PEMHCA Monthly Medical Premiums Region 1 P1 7( CtCS Medical Plan Non -Medicare Eligible Medicare Eligible Single 2-Party Family Single 2-Party Family Anthem Select $1,128.83 $2,257.66 $2,934.96 $413.59 $827.18 $1,240.77 Anthem Traditional 1,210.71 2,421.42 3,147.85 413.59 827.18 1,240.77 Blue Shield Access+ 1,035.21 2,070.42 2,691.55 361.90 723.80 1,085.70 Blue Shield Trio 888.94 1,777.88 2,311.24 361.90 723.80 1,085.70 Health Net SmartCare 1,174.50 2,349.00 3,053.70 n/a n/a n/a Kaiser 913.74 1,827.48 2,375.72 283.25 566.50 849.75 Kaiser Summit n/a n/a n/a 336.29 672.58 1,008.87 UnitedHealthcare Alliance 1,044.07 2,088.14 2,714.58 n/a n/a n/a UnitedHealthcare Group n/a n/a n/a 299.68 599.36 899.04 UnitedHealthcare Ede n/a n/a n/a 357.70 715.40 1,073.10 Western Health Advantage 760.17 1,520.34 1,976.44 331.11 662.22 993.33 PERS Platinum 1,200.12 2,400.24 3,120.31 420.02 840.04 1,260.06 PERS Gold 825.61 1,651.22 2,146.59 392.71 785.42 1,178.13 PORAC 825.00 1,875.00 2,300.00 465.00 1,030.00 1,395.00 r April 25, A2� 18p4dhl FINANCE Committee Meeting rA6enda Packet - Page 121 of 160 EXHIBITS - PREMIUMS Page 26 1 55 Retiree Dental, Vision & Life Premiums Effective January 1, 2022 Plan Single 2-Party Family Delta Dental $68.20 $119.80 $191.10 Vision 7.70 13.60 15.70 Life $0.315 per $1,000 of coverage Effective January 1, 2023 Plan Single 2-Party Family Delta Dental $67.40 $118.40 $188.90 Vision 7.70 13.60 15.70 Life $0.315 per $1,000 of coverage VApril 11, 2023 E-3 7-sD I EXHIBITS - PREMIUMS i w This page intentionally blank r April 25, AN 18p4661 FINANCE Committee Meeting rA2 enda Packet - Page 122 of 160 Page 27 of 55 EXHIBIT - DATA SUMMARY Active Participant Statistics July 1, 2022 Valuation General MSCG Mgmt Board26 Total ■ Count • Tier I - - - - - • Tier II 52 39 5 2 98 • Tier III 114 53 13 2 182 • Total 166 92 18 4 280 ■ Average: • Age 27 45.4 46.4 50.6 61.2 46.3 • District Service 9.4 12.4 9.5 9.6 10.4 • CCCERA Service 9.3 12.4 9.3 9.6 10.2 • Pay $120,500 $154,700 $227,600 $4,40021 $137,000 ■ Total Payroll (000's) 20,008 14,228 4,096 18 38,350 26 One Board member is a retiree receiving retiree healthcare benefits. elected after l/l/95 and retiree healthcare benefits are self -pay only. 27 Average age by Tier: Tier I - n/a, Tier II - 51.6, and Tier III - 43.4. 2' Assumed 24 board meetings at $185 per meeting. VApril 11, 2023 E-5 The remaining four Board members in the data were EXHIBIT - DATA SUMMARY Active Participant Statistics July 1, 2020 Valuation General MSCG Mgmt Board29 Total ■ Count • Tier I - 1 - - 1 • Tier II 62 44 5 2 113 • Tier 111 89 55 11 2 157 • Total 151 100 16 4 271 ■ Average: • Age30 46.0 46.4 48.1 66.8 46.5 • District Service 9.7 11.9 8.9 13.6 10.5 • CCCERA Service 10.9 14.0 15.8 13.6 12.4 • Pay $113,198 $141,997 $214,983 $4,40031 $128,229 ■ Total Payroll (000's) 17,093 14,200 3,440 18 34,750 29 One Board member is a retiree receiving retiree healthcare benefits. The remaining four Board members in the data were elected after l/l/95 and retiree healthcare benefits are self -pay only. '0 Average age by Tier: Tier I - 54.6, Tier II - 50.3, and Tier III - 43.8. 31 Assumed 24 board meetings at $185 per meeting. April 25, 2b2� %46l FINANCE Committee Meeting FA6enda Packet - Page 123 of 160 Page 28 of 55 EXHIBIT — DATA SUMMARY i 7 Retiree Participant Statistics July 1, 2022 Valuation General MSCG M mt Board Total ■ Count • Tier I 72 57 18 - 147 • Tier 11 77 50 9 1 137 • Tier 111 3 2 2 - 7 • Total 152 109 29 1 291 ■ Average Age 71.6 71.2 73.6 74.8 71.7 ■ Average Retirement Age • Service 57.6 58.3 58.7 65.2 58.0 • Disability 55.2 51.7 n/a n/a 54.1 VApril 11, 2023 E-7 7-sD I EXHIBIT — DATA SUMMARY i w Retiree Participant Statistics July 1, 2020 Valuation General MSCG M mt Board Total ■ Count • Tier I 82 50 16 - 148 • Tier II 76 42 11 1 130 • Tier III - - - - - • Total 158 92 27 1 278 ■ Average Age 71.5 69.0 72.1 72.8 70.8 ■ Average Retirement Age • Service 57.3 58.0 57.7 65.2 57.6 • Disability 53.8 51.7 n/a n/a 53.1 r April 25, 2bN 1%4661 FINANCE Committee Meeting rA6enda Packet - Page 124 of 160 Page 29 of 55 EXHIBIT — DATA SUMMARY Medical Plan Participation Non -Waived Participants Medical Plan Actives Retirees < 65 > 65 Anthem Select 1 % 0% 0% Anthem Traditional 0% 1 % 2% Blue Shield Access+ 0% 1 % 0% Health Net SmartCare 28% 26% 0% Kaiser 66% 47% 51 % UnitedHealthcare 0% 0% 30% PERS Platinum 4% 20% 17% PERS Gold 0% 5% 0% Total 100% 100% 100% VApril 11, 2023 E-9 EXHIBIT — DATA SUMMARY Active Medical Coverage 7-sD I Medical Plan Region Single 2-Party Family Waived Total Anthem Select 1 - - 2 - 2 Anthem Traditional 1 - - 1 - 1 Blue Shield Access+ 1 1 - 1 - 2 Health Net SmartCare 1 17 10 47 - 74 Kaiser 1 28 47 100 - 175 3 - 1 - - 1 PERS Platinum 1 2 2 6 - 10 OOS - - 1 - 1 Waived - - - 14 14 Total 48 60 158 14 280 r April 25, AN 18p4ahl FINANCE Committee MeetingEA�bnda Packet - Page 125 of 160 Page 30 of 55 EXHIBIT — DATA SUMMARY Retiree Medical Coverage Under Age 65 Medical Plan Region Single 2-Party Family Waived Total Anthem Traditional 1 - - 1 - 1 Blue Shield Access+ 1 - - 1 - 1 Health Net SmartCare 1 5 10 1 - 16 3 - 1 - - 1 Kaiser 1 9 12 9 - 30 2 - 1 - - 1 PERS Platinum 1 - 2 - - 2 OOS 3 7 1 - 11 PERS Gold 1 - 1 1 - 2 3 1 - - - 1 Waived - - - 5 5 Total 18 34 14 5 71 VApril 11, 2023 E-11 EXHIBIT — DATA SUMMARY Retiree Medical Coverage Age 65 and Over P 1 (7-cucs p I Medical Plan Region Single 2-Party Family Waived Total Anthem Traditional 1 1 3 - - 4 Kaiser 1 48 47 3 - 98 2 - 1 - - 1 OOS 1 1 1 - 3 UnitedHealthcare 1 24 22 - - 46 3 - - 1 - 1 OOS 9 4 - - 13 PERS Platinum 1 8 15 - - 23 OOS 3 7 1 - 11 Waived - - - 20 20 Total 94 100 6 20 220 r April 25, 2bN 18p4ahl FINANCE Committee MeetingEAgenda Packet - Page 126 of 160 Page 31 of 55 EXHIBIT — DATA SUMMARY i 7 Dental Coverage Delta Dental Single 2-Party Family Waived Total Actives 52 60 168 - 280 Retirees 112 148 24 7 291 Vision Coverage VSP Single 2-Party Family Waived Total Actives 47 47 179 7 280 Retirees 93 137 23 38 291 VApril 11, 2023 E-13 7-sD I EXHIBIT — DATA SUMMARY i w This page intentionally blank r April 25, AN 18p4861 FINANCE Committee MeetingEAVenda Packet - Page 127 of 160 Page 32 of 55 EXHIBIT — DATA SUMMARY Actives by Age and District Service District Service Age < 1 1-4 5-9 10-14 15-19 20-24 > 25 Total <25 2 1 - - - - - 3 25-29 5 4 1 - - - - 10 30-34 - 11 7 7 - - - 25 35-39 4 12 10 9 1 - - 36 40-44 3 13 21 8 8 3 - 56 45-49 - 8 19 7 7 5 - 46 50-54 4 8 12 3 10 9 2 48 55-59 1 - 8 9 6 5 4 33 60-64 - - 4 3 1 2 4 14 >65 - 1 2 2 2 2 - 9 Total 19 58 84 48 35 26 10 280 VApril 11, 2023 E-15 EXHIBIT — DATA SUMMARY Retiree Healthcare Coverage by Abe Group 7-sD I Age Single 2-Party Family Waived Total Under 50 1 - - - 1 50-54 - 1 1 - 2 55-59 9 6 8 2 25 60-64 8 27 5 3 43 65-69 23 38 3 3 67 70-74 26 25 3 4 58 75-79 15 22 - 4 41 80-85 16 9 - 4 29 85 & Over 14 6 - 5 25 Total 112 134 20 25 291 Average Age 73.8 1 70.7 61.8 75.7 71.7 r April 25, AN 18p4dhl FINANCE Committee MeetinglM-k nda Packet - Page 128 of 160 Page 33 55 EXHIBIT - ACTUARIAL ASSUMPTIONS i 7 Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Valuation Date ■ July 1, 2020 ■ July 1, 2022 ■ Fiscal Years 2021/22 & 2022/23 ■ Fiscal Years 2023/24 & 2024/25 ■ Funding Policy ■ Pre -fund full ADC with PARS ■ Same Moderate Portfolio ■ General ■ 2.75% annually ■ 2.50% annually Inflation ■ Same as CCCERA 12/31/19 ■ Same as CCCERA 12/31/21 valuation assumption valuation assumption ■ Discount Rate ■ 5.75% ■ 5.25% ■ 55% confidence level ■ 55% confidence level ■ Updated capital market assumptions and inflation ■ PEMHCA Year PEMHCA Min Year PEMHCA Min Minimum 2020 $139.00 2022 $149.00 Increases 2021 $143.00 2023 $151.00 2024+ 4.25% per year increase 2024+ 3.50% per year increase _� r April 11, 2023 E-17 EXHIBIT - ACTUARIAL ASSUMPTIONS Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Medical Trend Increase from Prior Year Increase from Prior Year Post- Post- Post- Post - Calendar Pre- Medicare Medicare Calendar Pre- Medicare Medicare Year Medicare Kaiser Other Year Medicare Kaiser Other 2020 Actual 2020 Premiums 2022 Actual 2022 Premiums 2021 Actual 2021 Premiums 2023 Actual 2023 Premiums 2022 7.00% 5.00% 6.10% 2024 8.50% 6.25% 7.50% 2023 6.75% 4.85% 5.90% 2025 8.50% 6.25% 7.50% 2024 6.50% 4.70% 5.70% 2026 7.90% 5.65% 6.90% 2025 6.25% 4.60% 5.50% 2027 7.35% 5.45% 6.50% 2026 6.00% 4.50% 5.30% 2028 6.75% 5.25% 6.10% 2027 5.80% 4.45% 5.15% 2029 6.20% 5.05% 5.70% 2028 5.60% 4.40% 5.00% 2030 5.60% 4.85% 5.25% 2029 5.40% 4.35% 4.85% 2031 5.05% 4.56% 4.85% 2030 5.20% 4.30% 4.70% 2032-38 4.45% 4.45% 4.45% 2031-35 5.05% 4.25% 4.60% 2039-40 4.35% 4.35% 4.35% 2036-45 4.90% 4.20% 4.50% 2041 4.30% 4.30% 4.30% 2046-55 4.75% 4.15% 4.45% 2042-44 4.25% 4.25% 4.25% 2056-65 4.60% 4.10% 4.40% 2045-47 4.20% 4.20% 4.20% 2066-75 4.30% 4.05% 4.20% 2048-50 4.15% 4.15% 4.15% 2076+ 4.00% 4.00% 4.00% 1 1 1 1 2076+ 3.45% 3.45% 3.45% April 25, 2bN 18p4ahl FINANCE Committee MeetingEAyenda Packet - Page 129 of 160 Page 34 of 55 EXHIBIT - ACTUARIAL ASSUMPTIONS i 7 Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Medicare Calendar Increase Calendar Increase Part B Year from Prior Year Year from Prior Year Premium 2020 Actual Premiums 2022 Actual Premiums Trend 2021 Actual Premiums 2023 Actual Premiums 2022 5.10% 2024 3.05% 2023+ Same as Post- 2025 6.15% Medicare Medical 2026 8.00% Trend 2027 7.75% 2028 5.95% 2029 5.60% 2030 5.25% 2031 4.90% 2032+ Same as Post - Medicare Medical Trend ■ Dental and ■ 3.75% ■ 3.50% Vision Trend VApril 11, 2023 E-19 EXHIBIT - ACTUARIAL ASSUMPTIONS 7-sD I Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Life Insurance ■ 0% ■ Same Trend ■ PARS ■ 0.20% of beginning of year ■ Same Administrative Market Value of Assets added Fee to Normal Cost ■ PEMHCA ■ 0.24% of PEMHCA Premiums ■ 0.33% of PEMHCA Premiums Administrative ■ Added to Normal Cost ■ Added to Normal Cost Fee ■ Age -related ■ Included ■ Due to age -risk adjusted federal Claims Costs subsidies, no age -based claims for Medicare costs were included for Advantage Medicare Advantage plans. Plans r April 25, 2bN 18p4dhl FINANCE Committee MeetingEA�*nda Packet - Page 130 of 160 Page 35 of 55 EXHIBIT - ACTUARIAL ASSUMPTIONS i 7 Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ 2023 Age -Related Claims Costs - PEMHCA Implied Subsidy Estimate ■ Sample 0 monthly claims costs used in 2022 valuation: United Healthcare M F $448 $841 571 853 855 971 1,535 1,387 1,881 1,615 PEMHCA Region 1 HMO Plan Kaiser HealthNet SmartCare Age M F M F 30 $393 $736 $469 $881 40 500 747 598 893 50 749 850 895 1,017 60 1,344 1,215 1,607 1,453 64 1,647 1,414 1,970 1,691 PPO Plan PERS Platinum PERS Gold Age M F M F 30 $415 $805 $347 $688 40 534 818 450 699 50 819 939 700 806 60 1,522 1,369 1,321 1,187 64 1,875 1,600 1,632 1,389 VApril 11, 2023 E-21 EXHIBIT - ACTUARIAL ASSUMPTIONS 41 (7-s Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ 2021 Age -Related Claims Costs - PEMHCA Implied Subsidy Estimate ■ Sample monthly claims costs used in 2020 valuation: PEMHCA Region 1 HMO Plan Kaiser HealthNet SmartCare United Healthcare Age M F M F M F 30 $330 $590 $419 $751 $380 $680 40 449 712 572 907 518 821 50 682 891 867 1,136 786 1,029 60 1,138 1,192 1,447 1,519 1,311 1,376 64 1,346 1,334 1,713 1,700 1,552 1,540 PPO Plan PERS Choice PERS Select PERSCare Age M F M F M F 30 $300 $570 $220 $437 $389 $726 40 425 700 321 540 545 887 50 674 891 522 695 853 1,123 60 1,173 1,220 928 963 1,466 1,525 64 1,399 1,373 1,110 1,086 1,743 1,713 r April 25, 2bN 18p4dhl FINANCE Committee MeetingEAdenda Packet - Page 131 of 160 Page 36 of 55 EXHIBIT - ACTUARIAL ASSUMPTIONS Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Mortality ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation assumption (2015-17 assumption (2018-20 Experience Study) Experience Study) ■ Pre -Retirement: PUB-2010 ■ No change General Employee Amount - Weighted Above -Median ■ Service Retirees: PUB-2010 General Healthy Retiree Amount -Weighted Above - Median ■ Beneficiaries: PUB-2010 Contingent Survivor Amount - Weighted Above -Median (105%) ■ Disabled Retirees: PUB-2010 Non -Safety Disabled Retiree Amount -Weighted (105% M, 100% F) VApril 11, 2023 E-23 EXHIBIT - ACTUARIAL ASSUMPTIONS 7-sD I Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Mortality ■ Projected generationally with ■ Projected generationally with Improvement the two-dimensional MP-2018 the two-dimensional MP-2021 Scale projection scale projection scale ■ Termination ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation assumption (2015-17 assumption (2018-20 Experience Study) Experience Study) ■ Based on Service: ■ Based on Service: Service General Service General 0 14.00% 0 14.00% 1 9.50% 1 9.50% 2 9.25% 2 9.00% 3 6.50% 3 6.25% 4 5.25% 4 6.25% 5 5.00% 5 5.00% 10 3.25% 10 3.50% 15 2.25% 15 2.25% 20+ 1.25% 20+ 1.50% r April 25, 2bN 18p4dhl FINANCE Committee MeetingEAdenda Packet - Page 132 of 160 Page 37 of 55 EXHIBIT - ACTUARIAL ASSUMPTIONS i 7 Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Disability ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation Retirement assumption (2015-17 Experience assumption (2018-20 Experience Study) Study) CCCERA General ■ No change Age Tiers 1 and PEPRA 20 0.01% 25 0.02% 30 0.04% 35 0.08% 40 0.22% 45 0.36% 50 0.52% 55 0.60% 60 0.60% 65 0.60% 70 0.60% VApril 11, 2023 E-25 EXHIBIT - ACTUARIAL ASSUMPTIONS 7-sD I Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Service ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation Retirement assumption (2015-17 assumption (2018-20 Experience Study) Experience Study) Tier 1(Enhanced) Tier 1(Enhanced) Awe <30 Yrs >30 Yrs PEPRA Age <30 Yrs >30 Yrs PEPRA 50 5% 9.0% 0% 50 4% 10% 0% 51 4% 7.2% 0% 51 4% 10% 0% 52 4% 7.2% 2% 52 4% 10% 2% 53 4% 7.2% 3% 53 4% 10% 3% 54 12% 21.6% 3% 54 10% 16% 3% 55 15% 27.0% 5% 55 15% 24% 4% 60 25% 30.0% 8% 60 20% 20% 8% 65 35% 35.0% 25% 65 35% 35% 25% 70 35% 35.0% 40% 70 40% 40% 35% 75 100% 100% 100% 75 100% 100% 100% ■ Expected Retirement Age: ■ Expected Retirement Age: General Tier 1 (Enh.) z 58.6 General Tier 1 (Enh.) z 59.5 General PEPRA z 61.9 General PEPRA z 62.1 r April 25, 2bN 18p4dhl FINANCE Committee MeetingEA41enda Packet - Page 133 of 160 Page 38 55 EXHIBIT - ACTUARIAL ASSUMPTIONS i 7 Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Participation at ■ Currently Covered — 100% ■ Same Retirement ■ Currently Waived — 95% ■ PEMHCA Min Only — 60% ■ Medical Plan ■ Currently Covered — current ■ Same at Retirement plan election ■ Currently Waived — Kaiser ■ Waived ■ None will re-elect medical ■ Same Retirees coverage in the future ■ Medicare ■ 100% ■ Same Eligibility ■ Everyone eligible for Medicare will elect Part B coverage ■ Marital Status ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation at Retirement assumption assumption (no change) (2015-17 Experience Study) (2018-20 Experience Study) • Males — 65% married • Males — 65% married • Females — 50% married • Females — 50% married r April 11, 2023 E-27 EXHIBIT - ACTUARIAL ASSUMPTIONS Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Spouse Age ■ Actives: ■ Same • Males 3 years older than spouse • Females 2 years younger than spouse ■ Retirees - spouse birth date provided ■ Dependents at ■ 25% have family coverage until ■ Same Retirement age 65 ■ Aggregate ■ N/A for Level Dollar results ■ N/A for Level Dollar results Payroll ■ 3.00% for Level % of Pay ■ 2.75% for Level % of Pay Increases for sensitivity results, inflation plus sensitivity results, inflation plus Sensitivity 0.25% 0.25% ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation assumption is 3.25%, inflation assumption is 3.00%, inflation plus 0.50% plus 0.50% r April 25, 2bN 18p4dhl FINANCE Committee MeetingEA4enda Packet - Page 134 of 160 Page 39 55 EXHIBIT - ACTUARIAL ASSUMPTIONS Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Merit Payroll ■ N/A for Level Dollar results ■ N/A for Level Dollar results Increases for ■ CCCERA 12/31/19 valuation ■ CCCERA 12/31/21 valuation Sensitivity assumption (2015-17 assumption (2018-20 Experience Study) Experience Study) Service General Service General Service General Service General 0 12.00% 11 1.10% 0 11.00% 11 1.10% 1 7.00% 12 1.00% 1 6.50% 12 1.00% 2 5.25% 13 0.90% 2 4.75% 13 0.90% 3 3.75% 14 0.80% 3 3.50% 14 0.80% 4 2.75% 15 0.75% 4 2.50% 15 0.75% 5 2.25% 16 0.70% 5 2.00% 16 0.70% 6 1.75% 17 0.65% 6 1.75% 17 0.65% 7 1.50% 18 0.60% 7 1.65% 18 0.60% 8 1.40% 19 0.55% 8 1.45% 19 0.55% 9 1.30% 20+ 0.50% 9 1.35% 20+ 0.50% 10 1.20% 10 1.30% ■ Added to aggregate payroll ■ Added to aggregate payroll increase assumption for Level increase assumption for Level % of Pay of sensitivity results % of Pay of sensitivity results VApril 11, 2023 E-29 EXHIBIT - ACTUARIAL ASSUMPTIONS FF .. gCS3 Assumption July 1, 2020 Valuation July 1, 2022 Valuation ■ Actuarial ■ Our valuations were performed using and relying on ProVal, an Models actuarial model leased from Wintech. Our use of ProVal is consistent with its intended purpose. We have reviewed and understand ProVal and its operation, sensitivities and dependencies. ■ Data Quality ■ Our valuations used census data provided by the District. We reviewed the data for reasonableness and resolved any questions with the District. We believe the resulting data can be relied on for all purposes of this valuation without limitation. ■ COVID-19 ■ No adjustments to the assumptions have been made for COVID-19 since there is not yet enough data to evaluate the future impacts. r April 25, 2bN 18p4dhl FINANCE Committee MeetingEA61enda Packet - Page 135 of 160 Page 40 0� 55 EXHIBIT - ACTUARIAL ASSUMPTIONS Assumption July 1, 2022 Valuation ■ Basis for ■ CCCERA 2018 to 2020 experience study was used because covered Assumptions employees are in CCCERA plan ■ Inflation based on our estimate for the Plan's long-term time horizon ■ Medical trends were based on expectations over the short term blended into long-term medical trends developed using Society of Actuaries' Getzen Model of Long -Run Medical Cost Trends ■ Age -based claims costs were developed by Axene Health Partners based on demographic data provided by Ca1PERS, Axene's proprietary AHP Cost Model, and Society of Actuaries studies. ■ Participation and coverage based in part on Plan experience ■ Capital market assumptions for the recommended discount rate are based on our study of investment advisor 10-year 2021 capital market assumptions adjusted in some cases to reflect anticipated long-term trends VApril 11, 2023 E-31 EXHIBIT - ACTUARIAL METHODS 3 D I cucs Method July 1, 2020 Valuation July 1, 2022 Valuation ■ Cost Method ■ Entry Age Normal, Level Dollar ■ Sensitivity — Level % of Pay ■ Actuarial Value of ■ Investment gains and losses spread over a 5-year rolling Assets period ■ Not less than 80% nor more than 120% of market value ■ Amortization Method ■ Level dollar ■ Sensitivity — Level % of pay ■ Amortization Period ■ 14-year fixed (closed) ■ 12-year fixed (closed) period for projected 7/1/21 period for projected 7/l/23 UAAL UAAL ■ Implied Subsidy ■ Employer cost for allowing non -Medicare eligible retirees to participate at active rates ■ Implied subsidy valued for employee and spouse coverage ■ Future New Entrants ■ Valuation Results — closed group, no new hires r April 25, 2bO 18p4dhl FINANCE Committee MeetinglAUenda Packet - Page 136 of 160 Page 41 of 55 EXHIBIT - DEFINITIONS i 7 ■ OPEB ■ Project future employer -provided benefit cash flows for current active Actuarial employees and current retirees Valuation ■ Discount projected cash flow to valuation date using discount rate (assumed return on assets used to pay benefits) and other actuarial assumptions to determine present value of projected future benefits (PVB) ■ Allocate PVB to past, current, and future periods using the actuarial cost method ■ Actuarial cost method used for this valuation is the Entry Age Normal Cost method which determines Normal Cost as a level dollar amount ■ Normal Cost (NC) is amount allocated to current fiscal year for active employees ■ Actuarial Accrued Liability (AAL) is amount allocated to prior service with employer ■ Unfunded AAL (UAAL) is AAL less plan assets pre -funded in a segregated and restricted trust ■ PayGo Cost ■ Cash subsidy is the pay-as-you-go employer benefit payments for retirees ■ Implied subsidy is the difference between the actual cost of retiree benefits and retiree premiums subsidized by active employee premiums VApril 11, 2023 E-33 3 D I cucs EXHIBIT - DEFINITIONS i w Present Value of Benefits Present Value of Benefits (Without Plan Assets) Future \\ Normal Costs Normal Cost Unfunded Actuarial Accrued Liability Present Value of Benefits (With Plan Assets) Future Normal Costs Normal Cost Unfunded Actuarial Accrued Liability April 25, AN 18p4661 FINANCE Committee MeetingEAdenda Packet - Page 137 of 160 Attachment 2 Actuarially Determined Contribution (ADC) to Retiree Premium Cost (PayGo) Trend $9,000,000 $8,000,000 $7,865,000 $7,524,000 $7,524,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $5,573,753 $5,697,440 $5,404,627 $4,624,000', ----------, L--- $4,642,000* $4107246 $4,214,000', ,, 3,967,334 $3,584,821 $3,906,000 $3,917,000 $3,324,000 $3,331,000 2017 2018 2019 2020 Retiree Premium Costs *FY 23, 24, 25 are based on the actuarial valuation 2021 2022 2023 Actuarially Determind Contribution (ADC) $2,021,000 2024 $2,111,000 2025 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 138 of 160 Attachment 3 FOSTER & FOSTER CENTRAL CONTRA COSTA SANITARY DISTRICT RETIREE HEALTHCARE PLAN Valuation Summary July 1, 2022 Actuarial Valuation Doug Pryor, Senior Consulting Actuary Foster & Foster, Inc. April 25, 2023 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 139 of 160 VALUATION SUMMARY Benefits ■ Eligibility ■ Retire directly from the District under CCCERA (service/disability) ■ Additional OPEB eligibility which varies by hire date ■ Medical ■ District pays % of medical premium up to highest cost "Core Plan" 1 Benefit (family coverage for Tier I & II; dual coverage Tier III) ■ Tiers vary by hire date: Tier I Tier II Tier III < 5/1/85 5/1/85 - 6/30/09 > 6/30/09 Pre-65 100% 100% 50% Pre-65 100% 50% 50% ■ Other ■ Tier I -III: District pays % of dental and vision ■ Tier I -II: District pays life insurance and Medicare Part B ■Directors benefits differ (e.g. PEMHCA minimum for medical ' Pre 65: Kaiser and Health Net SmartCare Post 65: Kaiser Senior Advantage and UnitedHealthcare April 25, 2023 1 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 140 of 160 VALUATION SUMMARY Historical Particivant Counts 600 571 539 549 508 n n 1-1 F1 500 434 400 174 300 200 260 100 0 483 454 rI F- 266 252 242 259 274 :N 2007 2009 2010 2012 2014 2016 2018 2020 2022 ❑ Actives ❑ Retirees April 25, 2023 2 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 141 of 160 VALUATION SUMMARY I � $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 Historical Benefit Payments O��p`� off," o", 10, �0, v(00, -000" ��ti� 1"o," ■ Medical ❑ Dental ■ Life I- Implied Subsidy r. April 25, 2023 3 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 142 of 160 VALUATION SUMMARY District's PARS OPEB Trust ■ Initiated 2008/09 ■ Moderate Portfolio • 50% equity/45% fixed income/5% cash • $75.4 million at June 30, 2022 ■ Actuarially Determined Contribution (ADC) paid annually • District has been contributing ADC less benefit payments to Trust April 25, 2023 4 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 143 of 160 VALUATION SUMMARY Historical Trust Changes $16 $14 (in Millions) $12 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- $1 p ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----- ---------------- $ 8----------------------------- ----------------------------------------------------------------------------- ----- ---------------------------------------------- ---- ---------------- $6--------------- ------ ----- ----------------------- ------ ------ -------------------------------------- ----- ------ ----- ------ ------ ------------------ ---- ---------------- $4--------------- ------ ------ ---- ---- -- - ------ -- ------ --------------------------------------- ----- ----- $2 ----- ------ -- ---- ---- ---- ----- ----- ----- ----- ----- ----- ------ -- ---- ----- ----- ----- ------ -- -- ----- ------ --- ----- ---------------- 1-1 $(2)----------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----- --- $(4)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----- --- $(6)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----- --- $ (g)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----- --- $0 0)------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----- --- $(12) tK �I�� o�~� �� '~� 0 o ti ti ti ti ti ti ti ti ti ti ti ti F0 Net Return ❑ Contributions April 25, 2023 5 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 144 of 160 $120 $100 $80 $60 $40 $20 $0 VALUATION SUMMARY Historical Funded Status 2007 2009 2010 2012 2014 2016 2018 2020 2022 =Retiree Accrued Liability =Active Accrued Liability —Market Value of Assets April 25, 2023 6 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 145 of 160 VALUATION SUMMARY Changes Since 2020 Valuation ■ Unfunded Actuarial Accrued Liability changes ($6.6 million less than expected) • $6.6 million decrease from removing Medicare Advantage age claims • $5.1 million decrease from plan experience different than expected • $4.7 million increase from healthcare trend changes • $2.4 million increase from lower discount rate • $1.7 million decrease from new CCCERA Experience Study and other assumption changes • $0.3 decrease for asset return/contributions greater than expected April 25, 2023 7 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 146 of 160 VALUATION SUMMARY Historical Actuarially Determined Contributions (ADC) $9 $8 $7 $6 $5 $4 $3 $2 $1 $0 =Normal Cost =UAAL Amortization —Benefit Payments (Cash + Implied Subsidy) April 25, 2023 8 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 147 of 160 VALUATION SUMMARY ■ District has contributed ADC less benefit payments into PARS Trust ■ Benefit payments currently exceed ADC ■ District can request reimbursement for benefit payments > ADC ■ ADC is effectively still being contributed April 25, 2023 9 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 148 of 160 VALUATION SUMMARY 2023/24 Contribution (Amounts in 000's) 2023/24 Traditional Equivalent Approach Alternative ■ Trust Contribution • ADC (to Trust) $ 2X I $ - • Benefit Payments (from Trust) (4,2141 • Net Trust In/(Out) Flow (21193) (2J93) ■ District Payments • Trust $ 21021 $ (21193) • Benefit Payments - 45214 • Total 21021 21021 rp April 25, 2023 10 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 149 of 160 VALUATION SUMMARY 10-Year Projection (Amounts in 000's) Contribution Trust Fiscal Benefit Pre -Funding/ Total Year ADC' Payments (Disbursement) Contribution 2023/24 $ 21021 $ 41214 $ (2,193) $ 21021 2024/25 21111 41624 (21513) 21111 2025/26 21177 41899 (21722) 21177 2026/27 21224 51062 (21838) 21224 2027/28 21256 51339 (31083) 21256 2028/29 21275 51409 (31134) 21275 2029/30 21285 51653 (31368) 21285 2030/31 21286 51679 (31393) 21286 2031/32 21281 51662 (31381) 21281 2032/33 21271 51684 (31413) 21271 Includes estimated administrative fees. April 25, 2023 11 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 150 of 160 VALUATION SUMMARY Questions? April 25, 2023 12 April 25, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 151 of 160