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OPEB Actuarial Valuation — Data Request <br />15. Are there any early retirement or termination incentive plans currently open or planned for <br />the next 12 months which have or could reasonably be expected to significantly increase <br />employee turnover compared to normal levels? <br />Please provide a copy of the following documentation: <br />16. If applicable, any updated documentation with PEMHCA, MOUS, or employee agreements <br />relating to OPEB. <br />17. The OPEB disclosures in the notes to the financial statements for the fiscal year ending <br />6/30/2015. <br />18, The annual CERBT statements between 7/1/2013 and 6/30/2015. <br />Choosing an appropriate discount rate <br />At the time the 2013 valuation was prepared, the City selected CERBT Asset Allocation Strategy 1. <br />The maximum allowable discount rate of 7.61% was reduced by a .61% Margin for Adverse <br />Deviation (MFAD). The net discount rate used in the valuation was 7.00%. <br />CERBT recently updated/changed the long term rate of return of its various asset allocation <br />strategies. <br />1. Please let us know which allocation strategy the City intends to use going forward by <br />checking the box in the first row of the chart below. <br />2. Then in the column for the selected Strategy, please enter the MFAD (if any) and the net <br />discount rate to be used relating to CERBTfunds. <br />Strategy 1 <br />(more <br />Aggressive) <br />Strotegy;2 <br />(more. <br />i; Moderate) " <br />Strategy 3 <br />(more <br />Conservative) <br />AssetAllocatlonStrotegy =a <br />CERBT projected long term rate of return 7.28% <br />6.73% <br />6.12% <br />Margin for Adverse Deviation (MFAD). <br />Net (Discount rate for CERBT contributions <br />o Does the City intend to contribute at 100% of the ARC or more for each year to which this <br />valuation will be applied? (indicate yes or no): <br />a If no (i.e., if the City intends to contribute less than 100% of the ARC), please tell us the <br />pay-as-you-go discount rate to be used where applicable: % <br />o Would you prefer to discuss this with us before making a decision? <br />General background on discount rates for GASB 45 purposes: As you know, the actuarial <br />calculations effectively involve projecting the amount and timing of expected future retiree <br />4 <br />