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to PERS is 7.00% of compensation for miscellaneous employees. The City is required to contribute the remaining
<br />amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS
<br />actuaries and actuarial consultants and adopted by the PERS Board of Administration.
<br />PERS uses a modification of the entry age normal actuarial cost method, which is a projected benefit cost
<br />method. That is, it takes into account those benefits that are expected to be earned in the future as well as those
<br />already accrued. The City's contributions to PERS for the fiscal years ended June 30, 2023, 2022 and 2021 were
<br />$48,070,659, $70,625,739, and $68,197,329, respectively and are estimated to be $45,680,970 for the fiscal year
<br />ending June 30, 2024. The Water System was responsible for $927,875, $1,505,712, and $1,462,642 for fiscal
<br />years ended June 30, 2023, 2022 and 2021, respectively and are estimated to be $906,505 for fiscal year ending
<br />fund 30, 2024. Contribution rates for each participating employer are determined based on the benefit structure
<br />established.
<br />The funded status of each plan as of June 30, 2022, on an actuarial value of assets basis is as follows
<br />(dollar amounts in thousands):
<br />Market Actuarial Accrued
<br />Value of Liability (AAL) Unfunded Funded Ratio Covered
<br />Assets (MVA) Entry Age AAL (UAAL) (MVA / AAL) Pavroll
<br />Miscellaneous $883,342,083 $1,073,796,340 $190,454,257 82.3% $73,234,214
<br />Source: PERS June 30, 2023 actuarial valuations.
<br />The actuarial studies referenced above incorporate recent changes in actuarial methods and assumptions.
<br />In the PERS' June 30, 2022 actuarial valuations, PERS used the new actuarial methods for the calculation of the
<br />projected contribution rates. PERS states that `projected results reflect the adopted changes to the discount rate...
<br />Actuarial Methods and Assumptions. The projections also assume that all actuarial assumptions will be realized
<br />and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection
<br />period. The projected normal cost percentages in the projections below do not reflect that the normal cost will
<br />decline over time as new employees are hired into PEPRA or other lower cost benefit tiers. "
<br />The projected rates for each plan as of June 30, 2022, the most recent actuarial valuation, are as follows:
<br />Projected Future Employer Contribution Rates(')
<br />2024-25 2025-26
<br />Miscellaneous 12.22% 11.9%
<br />0) Assume 6.8% return for Fiscal Year 2022-23.
<br />Source: PERS June 30, 2022, actuarial valuations.
<br />2026-27 2027-28 2028-29 2029-30
<br />11.6% 11.3% 11.0% 10.7%
<br />The Authority cannot anticipate accuracy of the projections above or to what extent the contribution
<br />requirements of the Authority will increase in future years.
<br />Other Post -Employment Benefits ("OPEB")
<br />The City provides a single -employer defined benefit healthcare plan to retirees through PERS under the
<br />California Public Employees Medical & Hospital Care Act ("PEMHCA"). Employees are eligible for PEMHCA
<br />benefits if they retire from the City on or after age 50 for all Classic Members and age 52 for PEPRA
<br />Miscellaneous Members with at least five years of PERS service credit or an approved disability retirement, and
<br />a eligible for a PERS pension. The City paid $151 for calendar year 2023 per active safety & miscellaneous
<br />employee and retirees for PEMHCA minimum. The Ca1PERS Board of Administration approves the employer
<br />contribution rate and plan changes annually based on Government Code section 22892. As of June 30, 2023, the
<br />City's total liability for post -employment healthcare benefits consisted of the following:
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