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<br />REDWOOD CITY <br />IMPACT OF 2ND TIER RETIREE HEALTH PROPOSAL <br />BASED ON THE JUNE 30, 2017 OPEB ACTUARIAL VALUATION <br /> <br /> September 24, 2018 <br />1 <br /> <br />Executive Management <br /> <br />Proposed 2nd tier retiree health benefit is the same as the current plan benefit except for the following <br />changes to the cap for service retirements only: <br /> Pre-Medicare Cap Post-Medicare Cap <br />Current Retirees No change No change <br />Current Actives No change Kaiser Senior Adv. Single Rate <br />Future Hires 90% Kaiser Bay Area Single Rate Kaiser Senior Adv. Single Rate <br /> <br />Impact on June 30, 2017 Valuation Results – Current Actives and Retirees Only <br />(Amounts in thousands) <br /> <br /> Results for Executive Mgmt Only <br /> Current <br />Plan Proposal Impact <br /> 6/30/17 Present Value of Benefit <br /> Actives $ 2,111 $ 1,990 $ (121) <br /> Retirees 3,752 3,752 - <br /> Total 5,863 5,742 (121) <br /> 6/30/ 17 Actuarial Accrued Liability <br /> Actives $ 1,245 $ 1,175 $ (70) <br /> Retirees 3,752 3,752 - <br /> Total 4,997 4,927 (70) <br /> 6/30/17 Actuarial Value of Assets1 (1,577) (1,577) - <br /> 6/30/17 Unfunded AAL 3,420 3,350 (70) <br /> 2017/18 Actuarial Determined Contribution <br /> Normal Cost plus Administrative Expenses $ 134 $ 127 $ (7) <br /> Amortization of Unfunded AAL 242 236 (6) <br /> Total 376 363 (13) <br /> 2017/18 Projected Payroll 4,311 4,311 - <br /> 2017/18 ADC as a % of Projected Payroll 8.7% 8.4% (0.3%) <br /> <br />Note - Results are based on the June 30, 2017 OPEB valuation, including census data and actuarial <br />methods and assumptions. Changes in unfunded AAL are amortized over 15 years. <br /> <br />1 Assets allocated based on 6/30/17 valuation Actuarial Accrued Liability. <br />8.A. - Page 19