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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 />COA <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 COA Only <br /> Current <br />Plan Proposal Impact <br /> 6/30/17 Present Value of Benefit <br /> Actives $ 808 $ 780 $ (28) <br /> Retirees 361 361 - <br /> Total 1,169 1,141 (28) <br /> 6/30/ 17 Actuarial Accrued Liability <br /> Actives $ 698 $ 673 $ (25) <br /> Retirees 361 361 - <br /> Total 1,059 1,034 (25) <br /> 6/30/17 Actuarial Value of Assets1 (335) (335) - <br /> 6/30/17 Unfunded AAL 724 699 (25) <br /> 2017/18 Actuarial Determined Contribution <br /> Normal Cost plus Administrative Expenses $ 35 $ 34 $ (1) <br /> Amortization of Unfunded AAL 52 50 (2) <br /> Total 87 84 (3) <br /> 2017/18 Projected Payroll 1,080 1,080 - <br /> 2017/18 ADC as a % of Projected Payroll 8.0% 7.8% (0.2%) <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 11