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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 />IAFF <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 IAFF Only <br /> Current <br />Plan Proposal Impact <br /> 6/30/17 Present Value of Benefit <br /> Actives $ 11,379 $ 11,083 $ (296) <br /> Retirees 7,577 7,577 - <br /> Total 18,956 18,660 (296) <br /> 6/30/ 17 Actuarial Accrued Liability <br /> Actives $ 5,778 $ 5,611 $ (167) <br /> Retirees 7,577 7,577 - <br /> Total 13,355 13,188 (167) <br /> 6/30/17 Actuarial Value of Assets1 (4,216) (4,216) - <br /> 6/30/17 Unfunded AAL 9,139 8,972 (167) <br /> 2017/18 Actuarial Determined Contribution <br /> Normal Cost plus Administrative Expenses $ 546 $ 533 $ (13) <br /> Amortization of Unfunded AAL 647 632 (15) <br /> Total 1,193 1,165 (28) <br /> 2017/18 Projected Payroll 10,720 10,720 - <br /> 2017/18 ADC as a % of Projected Payroll 11.1% 10.9% (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 13