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No�9-E���,o���B��v��TS (Co�v�v���)
<br /> PERS determines contribution requirements using a modification of the Entry Age Normal Method. Under
<br /> this method, the City's total normal benefit cost for each employee from date of hire to date of retirement is
<br /> expressed as a level percentage of the related total payroll cost. Normal benefit cost under this method is
<br /> the level amount the employer must pay annually to fund an employee's proj ected retirement benefit. This
<br /> level percentage of payroll method is used to amortize any unfunded actuarial liabilities.
<br /> PERS uses the market-related value method of valuing the plan's assets. An investment rate of return of
<br /> 7.75% is assumed,including inflation at 3.00%. Annual salary increases are assumed to vary by duration of
<br /> service. The City's unfunded actuarial accrued liability is being amortized as a level percentage of payroll
<br /> on a closed basis. The remaining amortization periods for the City's plans are as follows:
<br /> Public S afety June 30,203 8
<br /> Miscellaneous June 30,2026
<br /> For the 2003 PERS Annual Valuation Report, the police and fire safety plans were combined into one plan.
<br /> Therefore, some of the PERS data reflects only two plans, whereas rate-based information will continue to
<br /> be reflected for three plans until the PERS employer rates converge for the police and fire public safety
<br /> plans in fiscal year 2005/06.
<br /> Audited annual financial statements and ten-year trend information for the fiscal year ended June 30, 2007,
<br /> the most recent available,are available from PERS at P.O. Box 942709, Sacramento,CA 94229-2709.
<br /> Total current payroll for all covered employees for the fiscal year ended June 30, 2007 was $45,666,685.
<br /> The payroll subject to retirement amounted to $10,689,282 for police safety, $7,079,054 for fire safety, and
<br /> $27,898,349 for the miscellaneous group.
<br /> PERS has reported that the value of the net assets in the plan held for pension benefits changed as
<br /> follows during the year ended June 30, 2006, the most recent available:
<br /> Public Safet_y Miscellaneous
<br /> $ $
<br /> Beginning Balance 6/30/OS 125,860,464 114,104,768
<br /> Contributions Received 8,093,555 5,641,337
<br /> Benefits and Refunds Paid (6,619,452) (5,358,814)
<br /> Expected Investment Earnings Credited 9,810,242 8,853,863
<br /> Expected Actuarial Value of Assets 6/30/06 137,144,809 123,241,154
<br /> Market Value of Assets 6/30/06 146,643,975 131,218,424
<br /> Actuarial Value of Assets 6/30/06 137,778,087 123,772,972
<br /> Additional disclosures will be included when made available by PERS.
<br /> Three years of trend information regarding annual pension costs is summarized as follows:
<br /> Annual Percentage of
<br /> Pension Cost APC Net Pension
<br /> Fiscal Year APC Contributed Obligation
<br /> 2005 7,912,716 100°Io 0
<br /> 2006 9,304,563 100°Io 0
<br /> 2007 8,166,097 100°Io 0
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