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Actuarial Valuation of Other Post - Employment Benefit Programs as of
<br />April 1, 2012 for the City of Sample City
<br />E. Basic Valuation Results
<br />The following chart compares the results of the April 1, 2012 valuation of OPEB liabilities
<br />(Column 2) to the results of the April 1, 2010 valuation (Columns 1).
<br />Valuation date
<br />Prefunding
<br />Basis
<br />Partial
<br />Prefunding'
<br />Basis
<br />4/1/2010
<br />4/112012
<br />Discount rate
<br />7.60%
<br />4.47%
<br />Number of Covered Employees
<br />Actives
<br />351
<br />296
<br />Retirees
<br />209
<br />214
<br />Total Participants
<br />560
<br />510
<br />Actuarial Present Value of Projected Benefits (APVPB)
<br />Actives
<br />$ 19,138,321
<br />$ 29,543,894
<br />Retirees
<br />17,961,466
<br />28,112,423
<br />Total APVPB
<br />37,099,787
<br />57,656,317
<br />Actuarial Accrued Liability (AAL)
<br />Actives
<br />10,569,224
<br />14,469,103
<br />Retirees
<br />17,961,466
<br />28,112,423
<br />Total AAL
<br />28,530,690
<br />42,581,526
<br />Actuarial Value of Assets
<br />2,176,473
<br />5,761,456
<br />Unfunded AAL (UAAL)
<br />26,354,217
<br />36,820,071
<br />Normal Cost
<br />880,343
<br />1,428,449
<br />Benefit Payments
<br />Actives (in retirement)
<br />-
<br />-
<br />Retirees
<br />950,553
<br />1,242,576
<br />Total
<br />1 950,553
<br />1 1,242, 576
<br />The funded ratio (the ratio of the Actuarial Value of Assets divided by the Actuarial Accrued
<br />Liability) is 13.5% as of April 1, 2012. Covered payroll as of July 1, 2012 was reported to be
<br />$22,837,200. The Unfunded Actuarial Accrued Liability, expressed as a percentage of
<br />payroll, is 161.2% as of this date.
<br />Changes Since the Prior Valuation
<br />Even if all of our previous assumptions were met exactly as projected, liabilities generally
<br />increase over time as active employees get closer to the date their benefits are expected to
<br />begin. Of course, our prior assumptions were not exactly realized. Employee terminations
<br />and retirements were much higher than average in 2011. Current healthcare premiums are
<br />slightly lower than what we had projected, particularly for retirees covered by Medicare.
<br />Bickmore
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