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RFP No. 21-025
<br />EXHIBIT B
<br />Year Reason Ramp Term Balance Payment
<br />1 2006
<br />Fresh Start
<br />NO
<br />17
<br />(1,507,124)
<br />(124,360)
<br />2 2007
<br />Benefit Change
<br />NO
<br />7
<br />27,869,276
<br />4,635,532
<br />3 2007
<br />Benefit Change
<br />NO
<br />8
<br />130,319
<br />19,335
<br />4 2009
<br />Assumption Change
<br />NO
<br />10
<br />28,921,692
<br />3,566,035
<br />5 2009
<br />Special(Gain)/Loss
<br />NO
<br />20
<br />29,368,098
<br />2,172,502
<br />6 2010
<br />Special (Gain)/Loss
<br />NO
<br />21
<br />10,805,290
<br />774,689
<br />7 2011
<br />Assumption Change
<br />NO
<br />12
<br />12,883,043
<br />1,374,350
<br />8 2011
<br />Special (Gain)/Loss
<br />NO
<br />22
<br />(7,380,480)
<br />(513,938)
<br />9 2012
<br />Payment (Gain)/Loss
<br />NO
<br />23
<br />5,629,785
<br />381,500
<br />10 2012
<br />(Gain)/Loss
<br />NO
<br />23
<br />(264,265)
<br />(17,908)
<br />11 2013
<br />(Gain)/Loss
<br />100%
<br />24
<br />100,344,691
<br />6,995,473
<br />12 2014
<br />Assumption Change
<br />100%
<br />15
<br />45,039,235
<br />4,528,967
<br />13 2014
<br />(Gain)/Loss
<br />100%
<br />25
<br />(63,668,260)
<br />(4,319,063)
<br />14 2015
<br />(Gain)/Loss
<br />100%
<br />26
<br />32,611,483
<br />2,156,496
<br />15 2016
<br />Assumption Change
<br />80%
<br />17
<br />16,268,114
<br />1,197,052
<br />16 2016
<br />(Gain)/Loss
<br />80%
<br />27
<br />37,941,296
<br />1,984,485
<br />17 2017
<br />Assumption Change
<br />60%
<br />18
<br />13,723,657
<br />747,182
<br />18 2017
<br />(Gain)/Loss
<br />60%
<br />28
<br />(21,124,364)
<br />(830,159)
<br />19 2018
<br />Method Change
<br />40%
<br />19
<br />6,357,217
<br />231,819
<br />20 2018
<br />Assumption Change
<br />40%
<br />19
<br />30,754,017
<br />1,121,458
<br />21 2018
<br />(gain)/loss
<br />40%
<br />29
<br />(12,919,487)
<br />(343,422)
<br />22 2019
<br />AL Significant Increase
<br />NO
<br />20
<br />145,398
<br />13,268
<br />23 2019
<br />Non -Investment (Gain)/
<br />NO
<br />20
<br />3,048,449
<br />278,180
<br />24 2019
<br />Investment (Gain)/Loss
<br />2051
<br />20
<br />3,822,184
<br />83,568
<br />Year Reason Ramp Term Balance Payment
<br />1 2005 Fresh Start
<br />NO
<br />16
<br />$ (2,854,990) $
<br />(245,832)
<br />2 2006 Benefit Change
<br />NO
<br />6
<br />1,718,764
<br />327,131
<br />3 2009 Assumption Change
<br />NO
<br />10
<br />14,943,657
<br />1,842,548
<br />4 2009 Special (gain)/loss
<br />NO
<br />20
<br />31,977,596
<br />2,365,540
<br />5 2010 Special (gain)/loss
<br />NO
<br />21
<br />(11,794,554)
<br />(845,615)
<br />6 2011 Assumption Change
<br />NO
<br />12
<br />16,001,458
<br />1,707,020
<br />7 2011 Special (gain)/loss
<br />NO
<br />22
<br />(4,374,826)
<br />(304,640)
<br />8 2012 Payment (gain)/loss
<br />NO
<br />23
<br />8,240,551
<br />558,418
<br />9 2012 (gain)/loss
<br />NO
<br />23
<br />74,450,415
<br />5,045,102
<br />10 2013 (gain)/loss
<br />100%
<br />24
<br />140,663,232
<br />9,806,257
<br />11 2014 Life Exp. + 2.0/2.5 yrs.
<br />100%
<br />15
<br />53,834,472
<br />5,413,381
<br />12 2014 (gain)/loss
<br />100%
<br />25
<br />(84,294,374)
<br />(5,718,276)
<br />13 2015 (gain)/loss
<br />100%
<br />26
<br />59,710,283
<br />3,948,455
<br />14 2016 7.50%to 7.375%
<br />80%
<br />17
<br />19,877,718
<br />1,462,656
<br />15 2016 (gain)/loss
<br />80%
<br />27
<br />50,404,089
<br />2,636,340
<br />16 2017 7.375%to 7.25%
<br />60%
<br />18
<br />22,905,190
<br />1,247,070
<br />17 2017 (gain)/loss
<br />60%
<br />28
<br />(32,653,354)
<br />(1,283,233)
<br />18 2018 Method Change
<br />40%
<br />19
<br />5,325,258
<br />194,188
<br />19 2018 7.25% to 7.00%
<br />40%
<br />19
<br />38,800,765
<br />1,414,886
<br />20 2018 (gain)/loss
<br />40%
<br />29
<br />(1,474,209)
<br />(39,187)
<br />21 2019 Non-Investment(Gain)/Lc
<br />No
<br />20
<br />5,185,187
<br />473,164
<br />22 2019 Investment (Gain)/Loss
<br />20%
<br />20
<br />4,463,871
<br />97,598
<br />r ,102,971
<br />The annual UAL payment is an aggregate of 46 loan amortization schedules, which is equal to
<br />$56.2 million for FY 21-22, as illustrated in the chart above.
<br />New Bases
<br />CalPERS adds a new Amortization Base to the existing liability each year, including "credits" for
<br />positive investment performance above the discount rate of 7.0%. Based on the CalPERS
<br />Actuarial Amortization Policy, investment gains and losses, a change in actuarial assumptions or
<br />actuarial methods, and changes in plan provisions are amortized over a period of 20 years.
<br />Specific to investment gains and losses as recognized in the City's valuation shall be the annual
<br />amount determined in accordance with the following schedule:
<br />• Year 1: 20% of base payment
<br />• Year 2: 40% of base payment
<br />• Year 3: 60% of base payment
<br />• Year 4: 80% of base payment
<br />• Years 5 through 20: base payment
<br />New bases are based on a combination of policy changes referred to as a "change in
<br />methodology" approved by the CalPERS Board and investment performance. For example, a
<br />change of methodology was reported for 2018 when CalPERS added a new Amortization Base to
<br />account for the reduction in the Discount Rate from 7.25% to 7.00%. In the following year,
<br />CalPERS reported a 6.70% investment return on June 30, 2019. This minimal investment loss
<br />(compared to 7.0% benchmark) will be reflected in the up -coming June 30, 2019 actuarial report
<br />released in July 2020.
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