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actuarial liabilities. Active members hired after January 1, 2013, under the Public Employees'
<br />Pension Reform Act will also see their contribution rates rise. The three-year reduction of the
<br />discount rate will result in average employer rate increases of about 1 percent to 3 percent of
<br />normal cost as a percent of payroll for most miscellaneous retirement plans, and a 2 percent to 5
<br />percent increase for most safety plans. Additionally, many PERS employers will see a 30 to 40
<br />percent increase in their current unfunded accrued liability payments. These payments are made
<br />to amortize unfunded liabilities over 20 years to bring the pension fund to a fully funded status
<br />over the long-term.
<br />Other Post -Employment Benefits (OPER). The City's annual other post -employment
<br />benefit cost (expense) is calculated based on the annual required contribution ("ARC") of the
<br />employer, an amount actuarially determined in accordance with the parameters of Governmental
<br />Accounting Standards Board Statement 45. The ARC represents a level of funding that, if paid
<br />on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded
<br />actuarial liabilities (or funding excess) over a period not to exceed thirty years. The City's annual
<br />OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
<br />obligation for the fiscal year ended June 30, 2017 and the two preceding yfiscal ears were as
<br />follows:
<br />Three -Year Trend of Annual OPEB Cost
<br />(Excluding the Port of Redwood City)
<br />Fiscal year
<br />Annual
<br />Actuarial
<br />OPEB
<br />ended
<br />OPEB cost
<br />Percentage of AOC
<br />obligations
<br />June 30(AOC)
<br />accrued
<br />contributed
<br />Asset
<br />2015
<br />$5,037,000
<br />100%
<br />$6,962,477
<br />2016
<br />5,982,000
<br />100
<br />6,962,477
<br />2017
<br />6,163,000
<br />100
<br />6,962,477
<br />Source: City of Redwood City 2017 Comprehensive Annual Financial Report
<br />Three-year Trend of
<br />Funded Status of the Plan
<br />(Excluding the Port of Redwood City)*
<br />Actuarial
<br />Actuarial
<br />Unfunded/
<br />Valuation
<br />Actuarial
<br />accrued
<br />(overfunded)
<br />Annual
<br />UAAL as a
<br />Date
<br />Value
<br />liability for
<br />liability
<br />Funded
<br />covered
<br />percentage
<br />June 30
<br />of Assets
<br />benefits
<br />(UAAL)
<br />ratio
<br />payroll
<br />of payroll
<br />2013
<br />$11,001,000
<br />$56,177,000
<br />$45,176,000
<br />19.6%
<br />$48,399,901
<br />93.3%
<br />2015
<br />18,382,000
<br />70,852,000
<br />52,470,000
<br />25.9
<br />51,466,341
<br />102.0
<br />2017
<br />26,570,000
<br />84,172,000
<br />57,602,000
<br />31.6
<br />57,404,000
<br />100.3
<br />"Annual payroll of active employees covered by the plan
<br />Source: City of Redwood City 2017 Comprehensive Annual Financial Report
<br />As of June 30, 2017, the most recent actuarial valuation date, the plan was 31.6% funded.
<br />The actuarial accrued liability for benefits was $84,172,000, and the actuarial value of plan assets
<br />was $26,570,000, resulting in an unfunded actuarial accrued liability (UAAL) of $57,602,000. The
<br />covered payroll (annual payroll of active employees covered by the plan) was $57,404,000 and
<br />the ratio of UAAL to the covered payroll was 100.3%.
<br />r_ISK^
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