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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 />Glossary <br />Actuarial Accrued Liability (AAL) — Total dollars required to fund all plan benefits attributable <br />to service rendered as of the valuation date for current plan members and vested prior plan <br />members; see "Actuarial Present Value" <br />Actuarial Funding Method — A procedure which calculates the actuarial present value of <br />plan benefits and expenses, and allocates these expenses to time periods, typically as a <br />normal cost and an actuarial accrued liability <br />Actuarial Present Value (APV) — The amount presently required to fund a payment or series <br />of payments in the future, it is determined by discounting the future payments by an <br />appropriate interest rate and the probability of nonpayment. <br />Aggregate — An actuarial funding method under which the excess of the actuarial present <br />value of projected benefits over the actuarial accrued liability is levelly spread over the <br />earnings or service of the group forward from the valuation date to the assumed exit date, <br />based not on individual characteristics but rather on the characteristics of the group as a <br />whole <br />Annual Required Contribution (ARCS -- The amount the employer would contribute to a <br />defined benefit OPEB plan for a given year, it is the sum of the normal cost and some <br />amortization (typically 30 years) of the unfunded actuarial accrued liability <br />Annual OPEB Expense — The OPEB expense reported in the Agency's financial statement, <br />which is comprised of three elements: the ARC, interest on the net OPEB obligation at the <br />beginning of the year and an ARC adjustment. <br />Attained Age Normal Cost (AANC) — An actuarial funding method where, for each plan <br />member, the excess of the actuarial present value of benefits over the actuarial accrued <br />liability (determined under the unit credit method) is levelly spread over the individual's <br />projected earnings or service forward from the valuation date to the assumed exit date <br />CalPERS — Many state governments maintain a public employee retirement system; <br />CalPERS is the California program, covering all eligible state government employees as <br />well as other employees of other governments within California who have elected to join the <br />system <br />Defined Benefit DDB) — A pension or OPEB plan which defines the monthly income or other <br />benefit which the plan member receives at or after separation from employment <br />Defined Contribution (DC) — A pension or OPEB plan which establishes an individual <br />account for each member and specifies how contributions to each active member's account <br />are determined and the terms of distribution of the account after separation from <br />employment <br />B ckmore I ,- <br />