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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 />Table 4 <br />OPEB Valuation Actuarial <br />Methods and Assumptions <br />Valuation Date April 1, 2012 <br />Funding Method Entry Age Normal Cost, level percent of pay2 <br />Asset Valuation Method Market value of assets <br />Expected Return on Assets 7.0% <br />Discount Rate 4.77% (blended rate; see Appendix 1) <br />Participants Valued Only current active employees and retired participants <br />and covered dependents are valued. No future entrants <br />are considered in this valuation, <br />Salary Increase 3.25% per year, used only to allocate the cost of <br />benefits between service years <br />Assumed Increase for 3.25% per year where determined on a <br />Amortization Payments percent of pay basis <br />Inflation Rate 3.25% per year <br />The demographic actuarial assumptions used in this valuation are based on the <br />(demographic) experience study of the California Public Employees Retirement System <br />using data from 1997 to 2007. Rates for selected age and service are shown below and on <br />the following pages. <br />Mortality Before Retirement Illustrative rates: <br />CalPERS ublic Agency <br />Miscellaneous Non - Industrial <br />Deaths only Projected to 2015 <br />CaIP RS Pu Iic Agency Fire & <br />Police Combined Industrial & Non - <br />Industrial Deaths Projected to 2015 <br />Age <br />I Male <br />Female <br />Age <br />Male <br />Female <br />15 <br />0.00041 <br />0.00006 <br />15 <br />0.00041 <br />0.00006 <br />20 <br />0.00043 <br />0.00015 <br />20 <br />0.00045 <br />0,00018 <br />30 <br />0.00052 <br />0.00034 <br />30 <br />0.00061 <br />0.00044 <br />40 <br />0.00084 <br />0.00060 <br />40 <br />0,00096 <br />0.00072 <br />50 <br />0.00161 <br />0.00116 <br />50 <br />0.00174 <br />0.00129 <br />60 <br />0.00364 <br />0.00259 <br />60 <br />0,00380 <br />0.00276 <br />70 <br />0.00848 <br />0.00633 <br />70 <br />0.00865 <br />0,00652 <br />80 <br />0.01452 <br />0.01070 <br />80 <br />0.01472 <br />0.01090 <br />z The level percent of pay aspect of the funding method refers to how the normal cost is determined. Use of <br />level percent of pay cost allocations in the funding method is separate from and has no effect on a decision <br />regarding use of a level percent of pay or level dollar basis for determining amortization payments. <br />Bickmore re <br />