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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 />Unrepresented <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 Unrepresented Only <br /> Current <br />Plan Proposal Impact <br /> 6/30/17 Present Value of Benefit <br /> Actives $ 1,088 $ 1,016 $ (72) <br /> Retirees 288 288 - <br /> Total 1,376 1,304 (72) <br /> 6/30/ 17 Actuarial Accrued Liability <br /> Actives $ 684 $ 637 $ (47) <br /> Retirees 288 288 - <br /> Total 972 925 (47) <br /> 6/30/17 Actuarial Value of Assets1 (307) (307) - <br /> 6/30/17 Unfunded AAL 665 618 (47) <br /> 2017/18 Actuarial Determined Contribution <br /> Normal Cost plus Administrative Expenses $ 58 $ 54 $ (4) <br /> Amortization of Unfunded AAL 48 44 (4) <br /> Total 106 98 (8) <br /> 2017/18 Projected Payroll 763 763 - <br /> 2017/18 ADC as a % of Projected Payroll 13.9% 12.8% (1.1%) <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 21