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RFP No. 21-025
<br />EXHIBIT B
<br />MISCELLANEOUS
<br />Accrued Liability (AL) $ 916,997,454
<br />Market Value Assets (MVA) 623,923,788
<br />UAL = AL-MVA $ 293,073,666 $ 388,022,674 $ 681,096,340
<br />69 % 67% 67%
<br />-RDV
<br />MISCELLANEOUS
<br />Accrued Liability (AL) $ 948,084,339
<br />Market Value Assets (MVA) 645,902,345
<br />UAL = AL-MVA $ 302,181,994 $ 404,723,211 $ 706,905,205
<br />69% 66% 67%
<br />SAFETY COMBINED
<br />$1,162,151,002 $ 2,079,148,456
<br />774,128,3 28 1,398,052,116
<br />SAFETY COMBINED
<br />$1,191,809,847 $ 2,139,894,186
<br />787,086,636 1,432,988,981
<br />CAPERS' actuarial reports are drafted with a 2-year delay. In practical terms, the June 30, 2019
<br />report provides information about the FY 21-22 UAL and required UAL payment. As a result, the
<br />corresponding UAL balance of $706.9 million (reported on June 30, 2019), is adjusted upward for
<br />the upcoming fiscal year (FY21-22) to a projected amount of $709.9 Million. The change in value
<br />reflects payments made and interest accrued toward the UAL from June 30, 2019 until June 30,
<br />2021 (FY 2021-22).
<br />CaIPERS uses the FY 21-22 figure to calculate pay-off amounts on POBs or pre -payments (ADPs).
<br />Consequently, we will use the more current projected $709.9 million figure for the UAL for the
<br />remainder of our analysis.
<br />PENSION PLAN FUNDING AND FORECASTING
<br />Amortization Bases
<br />In January 2013, after the adoption of PEPRA pension reform legislation, CalPERS began requiring
<br />members to make fixed dollar payments toward their UAL (as opposed to payments based on %
<br />of payroll). The City's UAL is comprised of a series of amortization bases. Each amortization
<br />base operates like a loan to CaIPERS, with 7.0% interest rate; and has a different repayment term
<br />(maturity), ranging from 5 to 20 years. CalPERS shortened the repayment term from 30 to 20
<br />years in 2019.
<br />The City's projected $709.9 million UAL is comprised of 46 amortization bases, each with a
<br />distinct repayment schedule:
<br />• Miscellaneous Plan: 24 Amortization Bases in the totaling $298,799,264
<br />• Safety Plan: 22 Amortization Bases in the totaling $411,056,199
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