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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 />Total City <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 /> Total City Results <br /> Current <br />Plan Proposal Impact <br /> 6/30/17 Present Value of Benefit <br /> Actives $ 56,957 $ 54,573 $ (2,384) <br /> Retirees 50,183 50,183 - <br /> Total 107,140 104,756 (2,384) <br /> 6/30/ 17 Actuarial Accrued Liability <br /> Actives $ 33,989 $ 32,369 $ (1,620) <br /> Retirees 50,183 50,183 - <br /> Total 84,172 82,552 (1,620) <br /> 6/30/17 Actuarial Value of Assets1 (26,570)(26,570) - <br /> 6/30/17 Unfunded AAL 57,602 55,982 (1,620) <br /> 2017/18 Actuarial Determined Contribution <br /> Normal Cost plus Administrative Expenses $ 2,698 $ 2,602 $ (96) <br /> Amortization of Unfunded AAL 4,079 3,933 (146) <br /> Total 6,777 6,535 (242) <br /> 2017/18 Projected Payroll 57,404 57,404 - <br /> 2017/18 ADC as a % of Projected Payroll 11.8% 11.4% (0.4%) <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 5