Encinitas Lifeguard Pension

8/3/2019 Encinitas Lifeguard Pension

1/102

CalPERS

October 2011

California Public Employees' Retirement SystemActuarial OfficeP.O. Box 942701Sacramento, CA 94229-2701TTY: (916) 795-3240(888) 225-7377 phone. (916) 795-2744 faxwww.calpers.ca.gov

SAFETY LIFEGUARD PLAN OF THE CITY OF ENCINITAS (EMPLOYER # 1437)Annual Valuation Report as of June 30, 2010Dear Employer,Enclosed please find a copy of the June 30, 2010 actuarial valuation report of your pension plan. Since your plan hadless than 100 active members in at least one valuation since June 30, 2003, it is required to participate in a risk pool.The following valuation report has been separated into two Sections: Section 1 contains specific information for your plan, including the development of your pooled employercontribution rate, and Section 2 contains the Risk Pool Actuarial Valuation appropriate to your plan, as of June 30,2010.This report contains important actuarial information about your pension plan at CaIPERS. Your CaIPERS staff actuaryis available to discuss the actuarial report with you.

Changes Since the Prior ValuationA temporary modification to our method of determining the actuarial value of assets and amortizing gains and losseswas implemented for the valuations as of June 30, 2009 through June 30, 2011. The effect of those modificationscontinue' in this valuation.There may also be changes specific to your plan such as contract amendments and funding changes.Future Contribution RatesThe exhibit below displays the required employer contribution rate and Superfunded status for 2012/2013 along withan estimate of the contribution rate and Superfunded status for 2013/2014. The estimated rate for 2013/2014 isbased on a projection of the most recent information we have available, including an estimate of the investmentreturn for fiscal 2010/2011, namely 20.0%. See Section 2 Appendix E, "Investment Return Sensitivity Analysis", forincrease in 2014/2015 rate projections under a variety of investment return scenarios for the Risk Pool's portion ofyour rate. Please disregard any projections that we may have provided to you in the past.

Fiscal Year2012/20132013/2014

Employer Contribution Rate20.999%21.4% (projected)

Superfunded?NoNo

Member contributions (whether paid by the employer or the employee) are in addition to the above rates.


2/102

SAFETY liFEGUARD PLAN OF THE 01Y OF ENONITAS (EMPLOYER # 1437)October 2011Page 2

The estimate for 2013/2014 assumes that there are no amendments and no liability gains or losses (such as largerthan expected pay increases, more retirements than expected, etc.). This is a very important assumptionbecause these gains and losses do occur and can have a significant effect on your contribution rate.Even for the largest plans, such gains and losses can impact the employer's contribution rate by one or two percentor even more in some less common instances. These gains and losses cannot be predicted in advance so theprojected employer coptribution rate for 2013/2014 is just an estimate. Your actual rate for 2013/2014 will beprovided in next year's report.I f you have questions, please call (888) CaIPERS (225-7377). In the interest of allowing us to give every publicagency their result, we ask that, if at all possible, you wait until after October 31 to contact us with questions.

Sincerely,j / L ~ ALAN MILliGAN, MAAA, FCA, FSA, FDAChief Actuary


3/102

Actuarial Valuationas ofJune 30, 2010The SAFETY LIFEGUARD PLAN

of theCITY OF ENCINITAS(Employer# 1437)Required ContributionsFor Fiscal Year

July 1, 2012 -June 30,2013


4/102


5/102

TABLE OF CONTENTS

SECTION 1 - PLAN SPECIFIC INFORMATION

SECTION 2 - RISK POOL ACTUARIAL VALUATION INFORMATION

FIN PROCESS CONTROL ID (CY): 369664 FIN PROCESS CONTROL ID (Py): 346485 REPORT ID: 66651


6/102


7/102

Section 1CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM

Plan Specific Infonnation forThe SAFETY LIFEGUARD PLANof the CITY OF ENCINITAS

(Employer# 1437)(Rate Plan #4647)


8/102

I-


9/102

Table of ContentsACTUARIAL CERTIFICATION 1

PURPOSE OF SECTION 1 3

REQUIRED EMPLOYER CONTRIBUTIONS 3

PROJECTED CONTRIBUTIONS 4

RATE VOLATILITY 4

EMPLOYER SIDE FUND 4

SUPERFUNDED STATUS 5

SUMMARY OF PARTICIPANT DATA 5

LIST OF CLASS 1 BENEFIT PROVISIONS 6

INFORMATION FOR COMPLIANCE WITH GASB STATEMENT NO. 27 6

SUMMARY OF MAJOR BENEFIT OPTIONS 7


10/102


11/102

Actuarial CertificationSection 1 of this report is based on the member and financial data as of June 3D, 2010 provided by youragency and contained in our records, and the benefit provisions under your contract with CaIPERS. Section2 of this report is based on the member and financial data as of June 3D, 2010 provided by employersparticipating in the risk pobl and contained in our records, and benefit provisions under the CaIPERScontracts for those agencies partiCipating in the risk pool.As set forth in Section 2 of this report; the Pool Actuary has certified that, in her opinion, the valuation ofthe Risk Pool containing your SAFETY UFEGUARD PLAN has been performed in accordance with generallyaccepted actuarial principles consistent with standards of practice prescribed by the Actuarial StandardsBoard, and that the assumptions and methods are internally consistent and reasonable for the Risk Pool, asprescribed by the CaIPERS Board of Administration according to provisions set forth in the California PublicEmployees' Retirement Law.Having relied upon the information set forth in Section 2 of this report and based on the census and benefitprovision information for your plan, it is my opinion as your Plan Actuary that the Side Fund as of June 3D,2010 and employer contribution rate as of July 1, 2012, have been properly and accurately determined inaccordance with the principles and standards stated above.The undersigned is an actuary for CaIPERS and a member of both the American Academy of Actuaries andSociety of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to renderthe actuarial opinion contained herein.

NANCY E. CAMPBELL, ASA, MAAAEnrolled ActuarySupervising Pension Actuary, CaIPERSPlan Actuary

CaIPERS Actuarial Valuation - June 3D, 2010Rate Plan belonging to Safety 3.0% at SS Risk PoolPage 1


12/102


13/102

Purpose of Section 1Section 1 of this report was prepared by the Plan Actuary in order to :

Certify that the actuarially required employer contribution rate of the SAFETY liFEGUARD PLAN ofthe GTY OF ENONITAS for the fiscal year July 1, 2012 through June 30, 2013 is 20.999%; Set for th the plan's Employer Side Fund as of June 30, 2010; Provide pension information as of June 30, 2010 to be used in finandal reports subject toGovernmental Accounting Standards Board (GASB) Statement Number 27.

This section was prepared in order to provide actuarial information as of June 30, 2010 to the CaIPERSBoard of Administration and other interested partiesThe use of this report for any other purposes may be inappropriate. In particular, this report does notcontain information applicable to termination or alternative benefi t costs. The employer should contact theiractuary before disseminating any portion of this report for any reason that is not explicitly described above.

Required Employer Contributions

Employer Contribution Required (in Projected Dollars)Risk Pool's Net Employer Normal CostRisk Pool's Payment on Amortization BasesSurcharge for Class 1 Benefits

a) FAC 1Phase out of Normal Cost DifferenceAmortization of Side FundTotal Employer ContributionAnnual Lump Sum Prepayment Option*

Projected Payroll for the Contribution Fiscal YearEmployer Contribution Required (Percentage of Payroll)

Risk Pool's Net Employer Normal CostRisk Pool's Payment on Amortization BasesSurcharge for Class 1 Benefits

a) FAC 1Phase out of Normal Cost DifferenceAmortization of Side FundTotal Employer Contribution

$

$$$

Fiscal Year Fiscal Year2011/2012 2012/2013

58,017 $ 70,76616,909 20,6643,483 4,294

0 00 0

78,409 $ 95,72475,537 $ 92,217368,947 $ 455,850

15.725% 15.524%4.583% 4.533%0.944% 0.942%0.000% 0.000%0.000% 0.000%

21.252% 20.999%Appendix C of Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges foreach benefit.Risk pooling was implemented as of June 30, 2003. The normal cost difference was scheduled to be phasedout over a five year period. The phase out of normal cost difference began at 100% for the first year, andwas incrementally reduced by 20% of the original normal coSt difference for each subsequent year .*Payment must be received by CaIPERS before the first payroll of the new fiscal year and afte r June 30.

CaIPERS Actuarial Valuation - June 30, 2010 Page 3Rate Plan belonging to Safety 3.0% at 55 Risk Pool


14/102

Projected ContributionsThe rate shown below is an estimate for the employer contribution for Fiscal Year 2013/2014. Theestimated rate is based on a projection of the most recent information we have available, including anestimate of the investment return for fiscal year 2010/2011, namely 20.0%:Projected Employer Contribution Rate: 21.4%The estimate also assumes that there are no liability gains or losses among the plans in your risk pool, thatyour plan has no new amendments in the next year, and that your plan's and your risk pool's payrolls bothincrease exactly 3.25% in the 2010/2011 fiscal year. Therefore, the projected employer contribution ratefor 2013/2014 is just an estimate. Your actual rate for 2013/2014 will be provided in next year's report.

Rate VolatilityYour plan's employer contribution rate will inevitably fluctuate, for many reasons. However, the biggestfluctuations are generally due to changes in the side fund rate resulting from unexpected changes in payroll.The following figure shows how much your 2013/2014 rate would change for each 1% deviation betweenour 3.25% payroll growth assumption and your actual 2010/2011 payroll growth.

POTENTIAL 2013/2014 RATE IMPACTFROM 2010/2011 PAYROll DEVIATIONDID Rate Change per 1010 Deviation from Assumed 3.250/0 Payroll Growth: 0.000%Examples: To see how your employer contribution rate might be affected by unexpected payroll change,suppose the following: The % Rate Change per 1% Deviation figure given above is -0.400% Your plan's payroll increased 10% in 2010/2011 (6.75% more than our 3.25% assumption).Then your 2013/2014 rate would decrease -0.400% x (10 - 3.25) = -2.70% from that cause alone.Or conversely, using the same % Rate Change per 1% Deviation figure given above, suppose your plan'spayroll remained the same in 2010/2011 (3.25% less than our 3.25% assumption).Then your 2013/2014 rate would increase -0.400% x (0 - 3.25) = 1.3% from that cause alone.

. Note that if your plan had a negative side fund, an unexpected payroll increase would spread the payback ofthe negative side fund over a bigger payroll, which would decrease your plan's side fund percentage rateand the total employer contribution rate. On the other hand, if your plan had a positive side fund, anunexpected payroll increase would spread the payback of the positive side fund over a larger payroll, whichwould increase your plan's side fund percentage rate and the total employer contribution rate. In eithercase, the Side Fund dollar amount would not change.

Employer Side FundAt the time of joining a risk pool, a side fund was created to account for the difference between the fundedstatus of the pool and the funded status of your plan. The side fund for your plan as of the June 30, 2010valuation is shown in the following table.Your side fund will be credited, on an annual basis, with the actuarial investment return assumption. Thisassumption is currently 7.75%. A positive side fund will cause your required employer contribution rate to



15/102

be reduced by the Amortization of Side Fund shown above in Required Employer Contributions. A negativeside fund will cause your required employer contribution rate to be increased by the Amortization of SideFund. In the absence of subsequent contract amendments or funding changes, the side fund will disappearat the end of the amortization period shown below.

Employer Side Fund ReconciliationJune 30, 2009 June 30 , 2010

Side Fund as of valuation date* $ 0 $ 0Adjustments 0 0Side Fund Payment 0 0Side Fund one year later $ 0 $ 0Adjustments 0 0Side Fund Payment 0 0Side Fund two years later $ 0 $ 0Amortization Period 4 3Side Fund Payment during last year $ 0 $ 0

* I f your agency employed vouchers in fiscal year 2009/2010 to pay employee contributions, the June 30,2010 Side Fund amount has been adjusted by a like amount without any further adjustment to the SideFund's amortization period. Similarly, the Side Fund has been adjusted for the increase in liability from anyrecently adopted Class 1 or Class 2 contract amendments. Also, the Side Fund may be adjusted oreliminated due to recent lump sum payments. Contract amendments and lump sum payments may resul t inan adjustment to the Side Fund amortization period.

Superfunded StatusIs the plan Superfunded?[Yes if Assets exceed PVB, No otherwise]

Summary of Participant Data

June 30, 2009No

June 30 , 2010No

The table below shows a summary of your plan's member data upon which this valuation is based:

Projected Payroll for Contribution PurposesNumber of Members

ActiveTransferredSeparatedRetired

CaIPERS Actuarial Valuation - June 30, 2010Rate Plan belonging to Safety 3.0% at 55 Risk Pool

June 30, 2009 June 30 , 2010$ 368,947 $ 455,850

6 64 64 20 0

Page 5


16/102

List of Class 1 Benefit Provisions One Year Final Compensation

Information for Compliance with GASB Statement No. 27for Cost-Sharing Multiple-Employer Defined Benefit PlanYour plan is part of the Safety 3.0% at 55 Risk Pool, a cost-sharing multiple-employer defined b ~ n e f i t plan.Under GASB 27, an employer should recognize annual pension expenditures/expense equal to itscontractually required contributions to the plan. Pension liabilities and assets result from the differencebetween contributions required and contributions made. The contractually required contribution for theperiod July 1, 2012 to June 30, 2013 has been determined by an actuarial valuation of the plan as of June30, 2010. Your contribution rate for the indicated period is 20.999% of payroll. In order to calculate thedollar value of the contractually required contributions for inclusion in financial statements prepared as ofJune 30, 2013, this contribution rate, as modified by any subsequent financing changes or contractamendments for the year, would be multiplied by the payroll of covered employees that was actually paidduring the period July 1, 2012 to June 30, 2013. However, if this contribution is fully prepaid in a lump sum,then the dollar value of contractually required contributions is equal to the lump sum prepayment. Theemployer and the employer's auditor are responsible for determining the contractually required contributions.Further, the required contributions in dollars and the percentage of that amount contributed for the currentyear and each of the two preceding years is to be disclosed under GAS8 27.A summary of prinCipal assumptions and methods used to determine the contractually requiredcontributions is shown below for the cost-sharing multiple-employer defined benefit plan.Valuation DateActuarial Cost MethodAmortization MethodAverage Remaining PeriodAsset Valuation MethodActuarial AssumptionsInvestment Rate of ReturnProjected Salary IncreasesInflationPayroll GrowthIndividual Salary Growth

June 30,2010Entry Age Normal Cost MethodLevel Percent of Payroll17 Years as of the Valuation Date15 Year Smoothed Market7.75% (net of administrative expenses)3.55% to 14.45% depending on Age, Service, and type of employment3.00%3.25%A merit scale varying by duration of employment coupled with anassumed annual inflation growth of 3.00% and an annual productiongrowth of 0.25%.

Complete information on assumptions and methods is provided in Appendix A of Section 2 of the report.Appendix B of Section 2 of the report contains a description of benefits included in the Risk Pool ActuarialValuation.A Schedule of Funding for the Risk Pool's actuarial value of assets, accrued liability, their relationship, andthe relationship of the unfunded liability (UL) to payroll for the risk pool(s) to which your plan belongs canbe found in Section 2 of the report.



17/102

Summary of Ma jor Benefit OptionsShown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisionsis in Appendix B within Section 2 of this report.

Benefit ProvisionBenefit FormulaSocial Security CoverageFull/ModifiedFinal Average Compensation PeriodSick Leave CreditNon-Industrial DisabilityIndustrial DisabilityPre-Retirement Death BenefitsOptional Settlement 2W1959 Survivor Benefit LevelSpecialAlternate (firefighters)Post-Retirement Death BenefitsLump SumSurvivor Allowance (PRSA)COLAEmployee ContributionsContractual employer paidContractual Employee Cost sharinq

*Inactive Coverage Group

Coverage Group76001

3.0% @ 55nofull12 mos.

yesstandard

yes

yeslevel 3yesno

$500no2%

no0%

CalPERS Actuarial Valuation - June 30,2010Rate Plan belonging to Safety 3.0% at 55 Risk Pool Page 7


18/102


19/102

o 55as ne 10


20/102


21/102

TABLE OF CONTENTS

ACTUARIAL CERTIFICATION

HIGHLIGHTS AND EXECUTIVE SUMMARYPurpose of Section 2Risk Pool's Required Employer ContributionRisk Pool's Required Base Employer RateFunded Status of the Risk PoolCost and VolatilityChanges Since the Prior ValuationSubsequent Events

SUMMARY OF LIABILITIES AND RATESDevelopment of Pool's Accrued and Unfunded Liabilities(Gain)/Loss Analysis 06/30/09 - 06/30/10Schedule of Amortization Bases for the Risk PoolDevelopment of Risk Pool's Annual Required Base ContributionPool's Employer Contribution Rate HistoryFunding HistorySUMMARY OF ASSETSReconciliation of the Market Value of AssetsDevelopment of the Actuarial Value of AssetsAsset AllocationCaIPERS History of Investment ReturnsSUMMARY OF PARTICIPANT DATASource of the Participant DataData Validation Tests and AdjustmentsSummary of Valuation DataActive MembersTransferred and Terminated MembersRetired Members and BeneficiariesAPPENDIX AStatement of Actuarial Data, Methods and AssumptionsAPPENDIX BSummary of Principal Plan ProvisionsAPPENDIXCClassification of Optional BenefitsExample of Individual Agency's Rate CalculationDistribution of Class 1 BenefitsAPPENDIX 0List of PartiCipating EmployersAPPENDIX EInvestment Return Sensitivity AnalysisAPPENDIX FGlossary of Actuarial Terms

Risk Pool Valuation Job !D: 396

1

5556677

111213141515

19192021

232324252627


22/102


23/102

ACTUARIAL CERTIFICATION

To the best of my knowledge, Section 2 of this report is complete and accurate and contains sufficientinformation to disclose, fully and fairly, the funded condition of the Safety 3.0% at 55 Risk Pool. Thisvaluation is based on the member and financial data as of June 30, 2010 provided by the various CalPERSdatabases and th e benefits under this Risk Pool with CalPERS as of the date this report was produced. It ismy opinion that the valuation has been performed in accordance with generally accepted actuarialprinciples, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that. the assumptions and methods are internally consistent and reasonable for this risk pool, as prescribed bythe CalPERS Board of Administration according to provisions set forth in the California Public Employees'Retirement Law.The undersigned is an actuary for caIPERS. She is a member of the American Academy of Actuaries andthe Society of Actuaries and meets the Qualification Standards of the American Academy of Actuaries torender the actuarial opinion contained herein.

SHELLY CHU, ASA, MAAAAssociate Pension Actuary, CalPERSPool Actuary

calPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool 1


24/102


25/102

su PURPOSE OF SECTION 2

RISK POOL'S REQUIRED EMPLOYER CONTRIBUTION

RISK POOL'S REQUIRED BASE EMPLOYER RATE

FUNDED STATUS OF THE RISK POOL

COST AN D VOLATILITY

CHANGES SINCE THE PRIOR VALUATION

SUBSEQUENT EVENTS


26/102


27/102

HIGHLIGHTS AfliD EXECUTIVE SUMMARY,.,;

Purpose Section 2This Actuarial Valuation for the Safety 3.0% at 55 Risk Pool of the California Public Employees' Retirement System(CaIPERS) was performed by CaIPERS' staff actuaries using data as of June 30,2010 in order to:

set forth the actuarial assets and accrued liabilities of this risk pool as of June 30, 2010 establish the actuarially required contribution rate of the pool for the fiscal year July 1, 2012 throughJune 30, 2013 provide actuarial information as of June 30, 2010 to the CalPERS Board and other interested partiesThe use of this report for any other purposes may be inappropriate. In particular, this report does not containinformation applicable to termination or alternative benefit costs. The employer should contact thei r actuarybefore disseminating any portion of this report for any reason that is not explicitly described above.

Employer Contr ibution(figures net of employee contributions)

Contribution in Projected Dollars1. Pool's Gross Empioyer Normal Cost2. Payment on Pool's Amortization Base3. Payment on Employer Side Funds4. Total Required Employer Contribution*

* Total may not add up due to roundingContribution as a % of Projected Pay5. Pool's Gross Employer Normal Cost6. Payment on Pool's Amortization Base7. Payment on Employer Side fOunds8. Total Required Employer Contribution

$

$

Fiscal Year2011/2012

42,504,80411,177,75915.465,60869,150,190

17.426%4.583%6.341%

28.350%

Fiscal Year2012/2013

$ 42,581,02611,204,42312,765,089

$ 66,549,691

17.227%4.533%5.164%

26.924%These rates are the total required employer contributions by the pool for fiscal years 2011/2012 and 2012/2013.The Pool's Gross Employer Normal Cost includes the Class 1 surcharges for all employers that contract for theClass 1 type benefits. The payment on the pool's amortization base is the payment on the ongoing cumulativegains and losses experienced by the pool since its June 30, 2003 inception. The payment on employer side fundsis the combination of all expected individual amortization payments on every side fund in the pool.

1. Pool's Gross Employer Normal CostLess: Surcharges for Class 1 Benefits

2. Pool's Net Employer Normal Cost3. Payment on Pool's Amortization Base4. Pool's Base Employer Rate

CaIPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool

Fiscal Year Fiscal Year2011/2012 2012/201317.426% 17.227%1.701% 1.703%

15.725% 15.524%4.583% 4.533%

20.308% 20.057%

5


28/102

tUGHLIGHTs AND EXECUTIVE SUMMARY

The base employer contribution rate is the rate that each plan within the pool pays before any adjustments aremade. I t represents the pool funding for basic benefits (no Class 1 surcharges) for the fiscal year shown. Toarrive at a plan's total contribution rate, several components must be added to this base rate. These componentsare Class 1 benefit surcharges, normal cost phase-out and any side-fund payment. More information about thoseadditional components can be found in Section 1 ofthis report.

Funded1. Entry Age Normal Accrued Liability2. Market Value of Assets Including Side Funds (MVA)

Including Receivables3. Funded Ratio (MVA) [(2) / (1)]

Actuarial Cost Estimates in General

June 30, 2009$ 1,802,882,330$ 1,108,159,710

61.5%

June 30, 2010$ 1,915,095,826$ 1,281,909,3i4

66.9%

What will this pension plan cost? Unfortunately, there is no simple answer. There are two major reasons for thecomplexity of the answer:First, all actuarial calculations, including those in this report, are based on a number of assumptions about thefuture. These assumptions can be divided into two categories. Demographic assumptions include the percentage of employees that will terminate, die, becomedisabled, and retire in each future year. Economic assumptions include future salary increases for each active employee, and the assumptionwith the greatest impact, future asset returns at CalPERS for each year into the future until the lastdollar is paid to current members of your plan.While CaIPERS has set these assumptions as our best estimate of the real future of your plan, . t must beunderstood that these assumptions are very long term predictors and will surely not be re,;lIized in anyone year.For example, while the asset earnings at CaIPERS have averaged more than the assumed return of 7.75% for thepast twenty year period ending June 30, 2011, returns for each fiscal year ranged from -24% to +20.7%Second, the very nature of actuarial funding produces the answer to the question of plan or pool cost as the sumof two separate pieces: . The Normal Cost (Le., the future annual premiums in the absence of surplus or unfunded liability)expressed as a percentage of total active payroll, and The Past Service Cost or Accrued Liability (Le., representing the current value of the benefit for allcredited past service of current members) which is expressed as a lump sum dollar amount.The cost is the sum of a percent of future pay and a lump sum dollar amount (the sum of an apple and an orangeif you will). To communicate the total cost, either the Normal Cost (Le., future percent of payroll) must beconverted to a lump sum dollar amount (in which case the total cost is the present value of benefits), or the PastService Cost (Le., the lump sum) must be converted to a percent of payroll (in which case the total cost isexpressed as the employer's rate, part of which is permanent and part temporary). Converting the Past ServiceCost lump sum to a percent of payroll requires a specific amortization period, and the plan or pool rate will varydepending on the amortization period chosen.Rate VolatilityAs is stated above, the actuarial calculations supplied in this communication are based on a number ofassumptions about very long term demographic and economic behavior. Unless these assumptions(tenninations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized eachyear; there will be differences on a year to year basis. The year-to-year differences between actual experienceand the assumptions are called actuarial gains and losses and serve to lower or raise the plan or pool's ratesfrom one year to the next. Therefore, the rates will inevitably fluctuate, especially due to the ups and downs ofCaIPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk Pool

6


29/102

HIGHLIGHTS AND EXECUTIVE SUMMARY

investment returns. Pools that have higher asset to payroll ratios produce more volatile employer rates. In thetable below we have shown the pool's volatility index, based on the retirement formula, a measure of the pool's. potential future rate volatility. It should be noted that this ratio increases over time but generally tends tostabilize as the plan or pool matures.A plan that has a volatility index that is three times the index of a second plan is expected to eventually havethree times the volatility in rates as compared to the second plan.

Market Value of Assets without ReceivablesPayrollVolatility Index

theActuarial Assumptions

As of June 30,2010$ 1,280,559,335224,562,0085.7

There were no changes made to the actuarial assumptions since the prior year's actuarial valuation. The onlyexception would be changes necessary to reflect a benefit amendment.Actuarial MethodsA method change was adopted by the CalPERS Board in June 2009. We are in the second year of a 3-yeartemporary change to the asset smoothing method and the amortization of gain and losses in order to phase inthe impact of the ~ 2 4 % investment-loss experienced by CalPERS in fiscal year 2008-2009. The following changeswere adopted:

Increase the corridor limits for the actuarial value of assets from 80%-120% of market value to60%-140% of market value on June 30,2009 Reduce the corridor limits for the actuarial value of assets to 70%-130% of market value on June30, 2010 Return to the 80%-120% of market value corridor limits for the actuarial value of assets on June30, 2011 and thereafter Isolate and amortize all gains and losses during fiscal year 2008-2009, 2009-2010 and 2010-2011over fixed and declining 30 year periods (as opposed to the current rolling 30 year amortization)

A complete description of all methods is in Appendix A. The detailed calculation of the actuarial value of assets isshown in the "Development of the Actuarial Value of Assets."BenE!fitsThe standard actuarial practice at calPERS is to recognize mandated legislative benefit changes in the firstannual valuation whose valuation date follows the effective date of the legislation. Voluntary benefit changes byemployers within the risk pool are generally included in the first valuation that is prepared after the amendmentbecomes effective even if the valuation date is prior to the effective date of the amendment.The valuation generally reflects plan changes by amendments effective prior to July 1, 2011. Please refer toAppendix B for a summary of the plan provisions used in this valuation report. The proVisions in Appendix B donot indicate the class of benefits voluntarily contracted for by individual employers within the risk pool. Refer toSection 1 of the valuation report for a list of your specific contracted benefits. The increase in the pool'sunfunded liabilities due to Class 1 or 2 amendments by individual employers within the pool is embedded in theLiability (Gain) / Loss shown in the (Gain) I Loss section of this report. This amount, however, is offset byadditional contributions through a surcharge for employers who voluntarily contract for those benefits.

Subsequent EventsThere were no Significant subsequent events to report in this valuation.CaIPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool

7


30/102


31/102

PAT,S DEVELOPMENT OF POOL'S ACCRUED AN D UNFUNDED LIABILITIES

(GAIN)/LOSS ANALYSIS 06/30109 - 06/30/10

SCHEDULE OF AMORTIZATION BASES FOR TH E RISK POOL

DEVELOPMENT OF RISK POOL'S ANNUAL REQUIRED BASE CONTRIBUTION

POOL'S EMPLOYER CONTRIBUTION RATE HISTORY

FUNDING HISTORY


32/102


33/102

.. ':,.'SUIViMARY OF LIABILITY AND RAtES

of Pool's Accrued1. Present Value of Projected Benefits

a) Active Membersb) Transferred Membersc) Separated Membersd) Members and Beneficiaries Receiving Paymentse) Total

2. Present Value of Future Employer Normal Costs3. Present Value of Future Employee Contributions4. Entry Age Normal Accrued Liability

a) Active Members [( la) - (2) - (3)]b) Transferred Members ( lb)c) Separated Members ( lc)d) Members and Beneficiaries Receiving Payments ( ld)e) Total

5. Actuarial Value of Assets (AVA) Including Receivables6. Unfunded Accrued Liability [(4e) - (5)]7. Side Funds (AVA)8. Actuarial Value of Assets excluding Side Funds [(5) - (7)]

Including Receivables9. Unfunded Liabili ty excluding Side Funds [(4e) - (8)J10. Market Value of Assets (MVA) Including Receivables11. Funded Ratio (MVA) [(10) / (4e)]

calPERS ActuarialValuation - June 30,2010Safety 3.0% at 55 Risk Pool

$

$$$

$

$$

$

$

Unfunded l iabi l i t iesJune 30, 2009 June 30, 2010

1,267,768,990 $ 1,303,204,634181,194,460 181,278,66517,346,988 18,212,104883,753,501 957,044,921

2,350,063,939 $ 2,459,740,324350,009,994 $ 345,881,557197,171,615 $ 198,762,941

720,587,381 $ 758;560,136181,194,460 181,278,66517,346,988 18,212,104

883,753,501 957,044,9211,802,882,:330 $ 1,915,095,8261,520,081,328 $ 1,628,915,283

282,801,002 286,180,543(137,709,170) $ (127,158,463)1,657,790,498 1,756,073,746

145,091,832 159,022,0801,108,159,710 $ 1,281,909,314

61.5% 66.9%

11


34/102

S,UiVlMARY OF LIABILITY AND RATES(Gain)/LW)ss Analysis 06/30109 = 06/30/10We introduced the concepts of Actuarial Gains and Losses in the Cost and Volatility Section of this report. Toreiterate, when we calculate the cost requirements of your plan, we use assumptions about future events thataffect Hie amount and timing of benefits to be paid and assets to be accumulated. Each year actual experience iscontrasted against the expected experience based on the actuarial assumptions. The differences are reflectedbelow as your pool's actuarial gains or losses.

1. Total (Gain)/Lossa) Unfunded Liability/(Surplus) as of June 30, 2009b) Expected payment on the unfunded liabilityc) Interest accumulation [.0775 X (la) - 1.0775)".5 -1) X (lb)]d) Expected Unfunded Liability before other changes [(la) - ( lb) + (1c)]e) Change due to assumption changesf) Expected Unfunded Liability after changes[(ld) + (le)]g) Actual Unfunded Liability/(Surplus) as of June 30, 2010h) Total (Gain)/Loss [(1g) - (If)]

2. Contribution (Gain)/Lossa) Expected contribution

. b) Expected interest on contributionsc) Total expected contributions with interest [(2a) + (2b)]d) Actual contributionse) Expected interest on actual contributionsf) Total actual contributions with interest [(2d) + (2e)]g) Contribution (Gain)/Loss [(2c) - (2f)]

3. Asset (Gain)/Lossa) Actuarial Value of Assets as of 06/30/09 Including Receivablesb) Receivables as of 06/30/09c) Actuarial Value of Assets as of 06/30/09d) Contributions receivede) Benefits, refunds and lump sums paidf) Transfers and miscellaneous adjustmentsg) Expected interesth) Transfers into the pool (AVA Basis)i) Transfers out of the pool (AVA Basis)j) Expected Assets as of 06/30/10 [Sum (3c) through (3i)]k) Receivables as of 06/30/10I) Expected Assets Including Receivablesm) Actual Actuarial Value of Assets as of 06/30/10 Including Receivablesn) Asset (Gain)/Loss [(31) - (3m)]

4. Liability (Gain)/Lossa) Total (Gain)/Loss ( lh)b) Contribution (Gain)/Loss (2g)c) Asset (Gain)/Loss excluding side fund (3n)d) Liability (Gain)/Loss [(4a) - (4b) - (4c)]** Includes (Gain)/Loss on plans transferring into the pool.


$ 145,091,832(5,202,405)11,442,449

161,736,6860

161,736,686159,022,080$ (2,714,606)

$ 80,789,5133,072,181

83,861,69481,385,290

3,094,83684,480,126$ (618,432)

$ 1,520,081,3281,914,094

1,518,167,23481,385,290

(72,094,495)6,912,145

118,274,10952,576,351

(52,866,993)1,652,353,642

1,349,9791,653,703,6201,628,915,,283

$ 24,788,337

$ (2,714,606)(618,432)

24,788,337$ (26,884,510)

12


35/102

.' .. " ' - . ' ~ ,

SUMMARVbi= dABillTY AND RATES

Schedule of Anloriization Bases fOi" the Risk PeoRThe schedule below shows the development of the payment on the Pool's amortization bases used to determine the Total Required Employer Contributions to thePool. Each row of the schedule gives a brief description of a base (or portion of the Unfunded Actuarial Liability), the balance of the base on the valuation date,and the number of years remaining in the amortization period. In addition, we show the expected payments for the two years immediately following the valuationdate, the balances on the dates a year and two years after the valuation date, and the scheduled payment for fiscal year 2012-2013. Please refer to Appendix Afor an explanation of how amortization periods are determined.

Scheduled Paymen t aAmortization Balance on Expected Balance Expected Balance Paymen t for a percentagReason fo r Base Period June 30 , 2010 Payment 10-11 June 30,-2_0lJ, _ P ~ ! l 1 e n t 11-12 June 30! 2 Q . ! ~ . __ . ~ , ! ! ~ . : ~ . Q . ! ~ _ . __ ' ? 1 . ~ . t ~ !

2004 FRESH START2005 (GAIN)/LOSS2005 PAYMENT (GAIN)/LOSS2009 ASSUMPTION CHANGE2009 SPECIAL (GAIN)/LOSS2010 SPECIAL (GAIN)/LOSSTotal

243030192930

$14,933,430$69,646,289$7,358,291

$966,005$4,182,328

$(2,485,251)$35,744,769 $(3,971,165)

$15,088,032$70,702,507$10,508,317$42,637,165

$997,401$4,245,754$3,631,723$3,220,434

$15,222,025 $1,029,816 0.417%$71,774,743 $4,310,143 1.743%$7,552,885 $453,558 0.183%

$42,598,648 $3,325,099 1.345%$34,053,906 $0 $36,693,084 $2,203,456 $37,249,551 $2,275,068 0 .920%$(2,714,605) $0 $(2,924,987) 1Q $(3,151,673) $(189,261) (0.077%)

$159,022,080 ${1,308,083l $172,704,118 $14,298(768 ! 1 7 1 ( 2 4 ~ ! 1 7 ~ , $ ~ 1 , 2 ~ ~ " 4.533%The special (gain)/Ioss bases are special bases established for the gain/loss that is recognized in the 2009, 2010, and 2011 annual valuations. Unlike the gain/lossoccurring in previous and subsequent years, the gain/loss recognized in the 2009, 2010, and 2011 annual valuations will be amortized over fixed and declining 30 yearperiods so that these annual gain/losses will be fully paid off in 30 years.

CalPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool 13


36/102

SUMMARY OF UABILITYAND RATES

1. Contribution in Projected Dollarsa) Total Normal Costb) Employee Contributionc) Pool's Gross Employer Normal Cost [(la) - ( lb)]d) Total Surcharges for Class 1 Benefitse) Net Employer Normal Cost [( lc) - (ld)]f) Payment on Pool's Amortizat ion Baseg) Total Required Employer Contributions [(le) + (1f)]

2. Annual Covered Payroll as of Valuation Date3. Projected Payroll for Contribution Fiscal Year4. Contribution as a % of Projected Pay

a) Total Normal Cost [(la) / (3)]b) Employee Contribution [(lb) / (3)]c) Pool's Gross Employer Normal Cost [(lc) / (3)]d) Total Surcharges for Class 1 Benefits [ ( ld)'/ (3)]e) Net Employer Normal Cost [ ( le) / (3)]f) Payment on Pool's Amortizat ion Base [(1f) / (3)]g) Total Required Employer Contributions [(lg) / (3)]

calPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk Pool

$

$

$$

Fiscal Year Fiscal Year2011/2012 2012/2013

64,425,537 $ 65,051,80421,920,732 22,470,77942,504,804 42,581,0264,149,011 4,209,409

38,355,793 38,371,61711,177,759 $ 11,204,42349,533,552 49,576,040

221,600,192 $ 224,562,008243,916,013 $ 247,176,093

26.413% 26.318%8.987% 9.091%

17.426% 17.227%1.701% 1.703%

15.725% 15.524%4.583% 4.533%

20.308% 20.057%

14


37/102

SUMMARY OF LIABILITY AND RATES

Total Gross Payment on TotalNet Surcharges Employer Pool's Payment On TotalValuation Employer for Class 1 Normal Amortization Employer Employer

Date Normal Cost Benefits Cost Bases Side Funds Contribution06/30/2006 13.186% 1.707% 14.893% 1.195% 8.579% 24.667%06/30/2007 13.360% 1.682% 15.042% 1.678% 7.890% 24.610%06/30/2008 13.340% 1.672% 15.012% 2.252% 7.248% 24.512%06/30/2009 15.725% 1.701% 17.426% 4.583% 6.341% 28.350%06/30/2010 15.524% 1.703% 17.227% 4.533% 5.164% 26.924%

Accrued Market Value FundedValuation Liabilities of Assets RatioDate (AL) (MVA) (MVA/Al)06/30/2006 $1,473,284,852 $1,325,056,850 89.9%06/30/2007 $1,648,159,522 $1,642,369,655 99.7%06/30/2008 $1,755,559,311 $1,541,237,132 87.8%06/30/2009 $1,802,882,330 $1,108,159,710 61.5%06/30/2010 $1,915,095,826 $1,281,909,314 66.9%

Accrued Actuarial Unfunded Funded AnnualValuation Liabilities Value of Liabilities Ratio Covered Ul As a 0/ 0Date (Al) Assets (AVA) (Ul) (AVA/Al) Payroll of Payroll

06/30/2006 $1,473,284,852 $1,252,059,468 $221,225,384 85.0% $177,088,890 124.9%06/30/2007 $1,648,159,522 $1,422,143,105 $226,016,417 86.3% $200,537,256 112.7%06/30/2008 $1,755,559,311 $1,517,609,609 $237,949,702 86.5% $210,590,567 113.0%06/30/2009 $1,802,882,330 $1,520,081,328 $282,801,002 84.3% $221,600,192 127.6%06/30/2010 $1,915,095,826 $1,628,915,283 $286,180,543 85.1% $224,562,008 127.4%

Information shown here is for compliance with GASB No. 27 for a cost-sharing multiple-employer defined benefitplan.

(aIPERS Actuarial Valuation - June 30, 2010Safety 3.0% atS5 Risk Pool15


38/102


39/102

RECONCILIATION OF THE MARKET VALUE OF ASSETS

DEVELOPMENT OF TH E ACTUARIAL VALUE OF ASSETS

ASSET ALLOCATION

CALPERS HISTORY OF INVESTMENT RETURNS


40/102


41/102

SUMMARY OF ASSETS

l . Market Value of Assets as of June 30, 2009 Including Receivables $2. Receivables for Service Buybacks as of June 30, 20093. Market Value of Assets as of June 30, 2009 [1 - 2]4. Employer Contributions5. Employee Contributions6. Benefit Payments to Retirees and Beneficiaries7. Refunds8. Lump Sum Payments9. Transfers and Miscellaneous Adjustments

10. Investment Return11. Market Value of Assets as of June 30, 2010 (w/o Pool Transfers) $12. Transfers into and out of the Risk Pool13. Market Value of Assets as of June 30,2010 $14. Receivables for Service Buybacks as of June 30, 201015. Market Value of Assets as of June 30,,2010 Including Receivables [13 + 14]

D e v e B O t t ~ m e n t of the1. Actuarial Value of Assets as of June 30, 2009 Used for Rate Setting Purposes2. Receivables for Service Buyback as of June 30, 20093. Actuarial Value of Assets as of June 30, 2009 [1 - 2]4. Employer Contributions5. Employee Contributions6. Benefit Payments to Retirees and Beneficiaries7. Refunds8. Lump Sum Payments9. Transfers and Miscellaneous Adjustments10. Expect.ed Investment Income at 7.75%11. Expected Actuarial Value of Assets (w/o Pool Transfers)12. Market Value of Assets June 30, 2010 (w/o Pool Transfers)13. Preliminary Actuarial Value of Assets (w/o Pool Transfers) [(11) + 12) - (11)) / 15]14. Preliminary Actuarial Value to Market Value RatiO15. Final Actuarial Value to Market Value Ratio (minimum 70%, maximum 130%)16. Market Value of Assets June 30, 201017. Actuarial Value of Assets as of June 30, 201018. Receivables for Service Buybacks as of June 30,2010

1,108,159,7101,914,094

1,106,245,61659,781,45021,603,840

(70,725,441)(1,048,965)

(320,089)6,912,145

158133914541,280,788,010(228,675)

1,280,559,3351,349,979

1,281,909,314

1,520,081,3281,914,094

1,518,167,23459,781,45021,603,840

(70,725,441)(1,048,965)(320,089)6,912,145

118,274,109$ 1,652,644,283

1,280,788,0101,627,853,865

127.10%127.10%

1,280,559,3351,627,565,304

1,349,97919, Actuarial Value of Assets as of June 30, 2010 Used for Rate Setting Purposes [17 + 18] 1,628,915,283

CaIPERS Actuarial Valuation June 30, 2010Safety 3.0% at 55 Risk Pool19


42/102

SUMMARY OF ASSETS

CalPERS follows a strategic asset allocation policy that identifies the percentage of funds to be invested ineach asset class. The current target allocation was adopted by the Board in December 2010The asset allocation and market value of assets shown below reflect the values of the Public EmployeesRetirement Fund (PERF) in its entirely as of June 30, 2010. The assets for Safety 3.0% at 55 Risk Pool arepart of the Public Employees Retirement Fund (PERF) and are invested accordingly.

(A)Asset Class

1) Short-term Investments2) Total Global Fixed Income3) Total Equities4) Inflation Linked (ILAC)5) Total Real Estate6) Alternative Investments

Total Fund

(B)Market Value($ Billion)

9.353.491.95.0

15.228.7

203.51

14.1%Alternative

2.5% ILAC ,.......-"'---'=

45.1% TotalEquites

(C)CurrentAllocation4.6%

26.2%45.1%

2.5%7.5%

14.1%100.0%

4.6% Short-tennInvestments

26.2% FixedIncome

(D)CurrentTarget4.0%

16.0%49.0%

4.0%13.0%14.0%

100.0%

1 Differences between investment values above and the values on the Summary of Investments onpage 23 of the Comprehensive Annual Financial Report (Year Ended June 30, 2010) are due todifferences in reporting methods. The Summary of Investments includes Net InvestmentReceivables/Payables .

calPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool20


43/102

SUMMARY OF ASSETS

CalPERS 20 .YearThe following is a chart with historical annual returns of the Public Employees Retirement Fund for eachfiscal year ending on June 30. Beginning with June 3.0, 2002 the figures are reported as gross of fees:

25.0%

20.0%;..0

,..., ,.., yJ.'" ;" "," : J ~ if.15.0%

10.0%

5.0%

0.0%05 06 07

-5.0% ---- . -- . ------ 'm '-

-10.0%

-15.0%

-20.0%

-25.0% _ : 2 : = = = = = = = = = = = = = = = = = = = = = = = = = = = ~ ; : : : = , 7 /

CaIPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool 21


44/102


45/102

Of SOURCE OF TH E PARTICIPANT DATA

DATA VALIDATION TESTS AN D ADJUSTMENTS

SUMMARY OF VALUATION DATA

ACTIVE MEMBERS

TRANSFERRED AN D TERMINATED MEMBERS

RETIRED MEMBERS AND BENEFICIARIES


46/102


47/102

. SUMMARY OF rARTICIPANT.DATA

theThe data was extracted from various databases within calPERS and placed in a database by a series ofextract programs. Included in this data are:

individual member and beneficiary information, employment and payroll information, . accumulated contributions with interest, service information, benefit payment information, information about the various organizations which contract with caIPERS, and detailed information about the plan provisions applicable to each group of members.

ValidationOnce the information is extracted from the various computer systems into the database, update queries arethen run against this data to correct for flaws found in the data. This part of the process is intended tovalidate the participant data for all calPERS plans. The data is then checked for reasonableness andconsistency with d a ~ a from the prior valuation.Checks on the data include:

a reconciliation of the membership of the plans, comparisons of various member statistics (average attained age, average entry age, averagesalary, etc.) for each plan with those from the prior valuation, comparisons of pension amounts for each retiree and benefiCiary receiving payments with thosefrom the prior valuation, checks for invalid ages and dates, and reasonableness checks on various key data elements such as service and salary.As a result of the tests on the data, a number of adjustments were determined to be necessary. Theseincluded:

dates of hire and dates of entry were adjusted where necessary to be consistent with the servicefields, the date of birth and each other.



48/102

SUMMARY OF PARTICIPANT DATA

DataJune 30, 2009 June 30, 2010

l . Number of Plans in the Risk Pool 116 1162. Active Members

a) Counts 2,563 2,564b) Average Attained Age 39.51 39.90c) Average Entry Age on Rate Plan 29.79 29.75d) Average Years of Service 9.72 10.15e) Average Annual Covered Pay $ 86,461 $ 87,583f) Annual Covered Payroll $ 221,600,192 $ 224,562,008g) Projected Annual Payroll for Contribution Year $ 243,916,013 $ 247,176,093h) Present Value of Future Payroll $ 2,192,758,048 $ 2,185,785,198

3. Transferred Membersa) Counts 1,578 1,576b) Average Attained Age 41.56 41.82c) Average Years of Service 4.55 4.53d) Average Annual Covered Pay $ 88,288 $ 89,472

4. Terminated Membersa) Counts 553 581b) Average Attained Age 39.36 39.55c) Average Years of Service 3.03 2.92d) Average Annual Covered Pay $ 49,587 $ 49,952

5. Retired Members and Beneficiariesa) Counts* 2,320 2,457b) Average Attained Age 63.44 63.82c) Average Annual Benefi ts* $ 29,092 $ 30,053

6. Active to Retired Ratio [(2a) / (Sa)] 1.10 1.04

Counts of members included in the valuation are counts of the records processed by the valuation. Multiplerecords may exist for those who have service in more than one valuation group. This does not result in doublecounting of liabilities.

* Values may not match those on pages 27 and 28 due to inclusion of community property settlements.

CaIPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool24


49/102

SUMMARY O.F PARTICIPANT DATA

Counts of members included in the valuation are counts of the records processed by the valuation. Multiplerecords may exist for those who have service in more than one valuation group. This does not result in doublecounting of liabilities.Distribution of Active Members by Age and ServiceYears of Service at Valuation Date

AttainedAge 0-4 5-9 10-14 15-19 20-24 25 +15-24 108 0 0 0 0 025-29 308 60 0 0 0 030-34 222 170 26 0 0 035-39 154 145 104 23 0 040-44 95 88 94 93 50 245-49 81 43 51 76 104 3950-54 39 28 36 23 69 8655-59 21 12 10 8 18 4160-64 6 5 4 5 8 7

65 and over 0 0 0 1 0 1All Ages 1034 551 325 229 249 176

Distribution of Average Annual Salaries by Age and ServiceYears of Service at Valuation DateAttainedAge 0-4 5-915-24 $45,955 $0

25-29 63,857 78,18030-34 70,416 80,05135-39 74,459 87,19540-44 81,007 84,44045-49 96,451 83,86650-54 98,999 106,28655-59 107,907 109,33360-64 91,065 125,22665 and over 0 0

Average 71,481 85,106


10-14 15-19$0 $00 0

83,765 093,431 94,70094,537 102,81293,512 107,026109,120 98,06896,277 98,93579,452 82,4780 173,15094,644 102,647

20-24 .25+$0 $00 00 00 0

109,017 89,654115,063 116,306103,363 129,279105,340 130,03594,320 134,763

0 183,022109,238 126,654

Total108368418426422394281110352

2,564

Average$45,95566;19275,16584,51892,902103,615111,284114,180102,875178,08687,583

25


50/102

SUMMARY O.F PARTICIPANT DATA

Distribution of Transfers to Other CalPERS Plans by Age and ServiceYears of Service at Valuation DateAttained AverageAge 0-4 5-9 10-14 15-19 20-25 25 + Total Salary15-24 20 0 0 0 0 0 20 $51,934

25-29 120 5 0 0 0 0 125 67,51230-34 194 28 0 0 0 0 222 80,73435-39 225 70 13 2 0 0 310 84,61440-44 230 63 31 6 3 0 333 90,31145-49 135 71 32 20 7 4 269 100,80850-54 118 50 24 10 6 6 214 105,90255-59 25 18 5 3 3 3 57 94,57360-64 10 4 4 2 2 1 23 84,39865 and over 3 0 0 0 0 0 3 63,870

All Ages 1080 309 109 43 21 14 1,576 89,472

Distribution of Terminated Participants with Funds on Deposit by Age and ServiceYears of Service at Valuation DateAttainedAge 0-4 5-9 10-1415-24 16 0 0

25-29 90 0 030-34 99 8 035-39 86 13 140-44 71 11 645-49 64 14 1150-54 30 11 255-59 7 1 360-64 10 1 1

65 and over 3 1 1All Ages 476 60 25


15-19 20-250 00 00 00 03 08 24 02 00 01 0

18 2

Average25 + Total Salary0 16 $36,284

0 90 45,0560 107 48,1650 100 48,5330 91 50,0780 99 59,2690 47 51,7120 13 67,2240 12 34,5940 6 39,2610 581 49,952

26


51/102

SUMMJ\RY OF PARTICIPANT DATA

W'VIe" d Benefi U~ r . ~ m D e r s an . ._. , " c ~ a n e s Distribution of Retirees and Beneficiaries by Age and Retirement Type*

Non- Non- DeathAttained Service Industr ial Industrial Industria l Industrial AfterAge Retirement Disability Disability Death Death Retirement TotalUnder 30 0 0 1 0 2 2 530-34 0 0 6 0 0 0 635-39 0 2 12 0 0 0 1440-44 0 1 37 0 1 1 4045-49 0 2 57 2 3 9 7350-54 145 6 105 2 7 12 27755-59 295 3 146 0 8 8 46060-64 321 6 211 1 2 39 58065-69 224 7 124 0 1 38 39470-74 127 8 86 0 1 32 25475-79 82 3 40 0 1 38 16480-84 52 1 28 0 0 33 114

85 and Over 28 1 8 0 0 29 66All Ages 1274 40 861 5 26 241 2,447

Distribution of Average Annual Amounts for Retirees and Beneficiaries by Age and RetirementType*Non- Non-Attained Service Industrial Industrial Industrial Industria l Death AfterAge Retirement Disability Disability Death Death Retirement AverageUnder 30 $0 $0 $34 $0 $16,644 $25,385 $16,818

30-34 0 0 21,954 0 0 0 21,95435-39 0 4,673 27,465 0 0 0 24,20940-44 0 11,376 27,574 0 40,898 4,547 26,92645-49 0 27,733 26,830 12,262 3,311 19,317 24,56350-54 27,092 21,416 26,685 49,505 28,127 18,055 26,61155-59 39,733 6,528 29,241 0 22,255 27,691 35,67360-64 39,900 16,576 33,142 68,240 21,904 18,040 35,71765-69 27,734 9,908 35,237 0 31,526 20,828 29,12270-74 32,488 8,151 24,592 0 23,703 16,751 27,03175-79 24,532 8,419 23,155 0 22,588 13,444 21,32180-84 28,982 13,628 24,244 0 0 15,604 23,811

85 and Over 18,513 2,591 24,674 0 0 15,429 17,664All Ages 33,621 12,494 29,456 38,354 22,334 17,310 30,093

calPERS Actuarial Valuation - June 30, 2010 27Safety 3.0% at 55 Risk Pool


52/102

SUMMARY OF PARTICIPANT DATA

1,\lIembers~ , , ~ , ~ . " ' B e n e n c ~ a n e s Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type*

Non- Non- DeathYears Service Industr ial Industrial Industrial Industrial AfterRetired Retirement Disability Disability Death Death Retirement TotalUnder 5 Yrs 499 6 167 3 6 85 766

5-9 312 6 198 0 2 62 58010-14 205 4 154 1 5 37 40615-19 117 8 154 0 6 21 30620-24 70 6 77 0 3 3 15925-29 48 4 57 1 2 13 125

30 and Over 23 6 54 0 2 20 105.All Years 1274 40 861 5 26 241 2,447

Distribution of Average Annual Amounts for Retirees and Beneficiaries by Years Retired andRetirement Type*Non- Non- DeathYears Service Industrial Industrial Industrial Industrial AfterRetired Retirement Disability Disability Death Death Retirement Average.Under 5 Yrs $37,510 $26,305 $38,165 $49,563 $25,785 $18,724 $35,436

5-9 37,684 10,697 38,603 0 2,152 18,803 35,57810-14 26,700 7,738 26,703 22,703 23,719 18,369 25,70815-19 30,386 11,545 23,350 0 25,405 15,417 25,22820-24 25,349 8,558 18,257 0 17,569 13,996 20,92025-29 22,236 13,088 19,200 20,379 26,186 7,562 19,081

30 and Over 21,195 8,457 21,044 0 22,776 13,532 18,960All Years 33,621 12,494 29,456 38,354 22,334 17,310 30,093* Counts of members do not include alternate payees receiving benefits while the member is still working.Therefore, the total counts may not match information on page 24 of the report. Multiple records may exist forthose who have service in more than one coverage group. This does not result in double counting of liabilities.



53/102

STATEMENT OF ACTUARIAL DATA, METHODS AN D ASSUMPTIONS


54/102


55/102

APPENDIXA.

As stated in the Actuarial Certification, the data which serves as the basis of this valuation has been obtained fromthe various CaIPERS databases. We have reviewed the valuation data and believe that it is reasonable andappropriate in aggregate. We are unaware of any potential data issues that would have a material effect on theresults of this valuation, except that data does not always contain the latest salary information for former membersnow in reciprocal systems and does not recognize the potential for usually large salary deviation in certain cases suchas elected officials. Therefore, salary information in these cases may not be accurate. These situations are relativelyinfrequent, however, and when they do occur, they generally do not have a material impact on the employercontribution rates.

Funding MethodThe actuarial funding method used for the Retirement Program is the Entry Age Normal Cost Method. Under thismethod, projected benefits are determined for all members and the associated liabilities are spread in a manner thatproduces level annual cost as a percent of pay in each year from the age of hire (entry age) to the assumedretirement age. The cost allocated to the current fiscal year is called the normal cost.The actuarial accrued liability for active members is then calculated as the portion of the total cost of the planallocated to prior years. The actuarial accrued liability for members currently receiving benefits, for active membersbeyond the assumed retirement age, and for members entitled to deferred benefits, is equal to the present value ofthe benefits expected to be paid. No normal costs are applicable for these participants.The excess of the total actuarial accrued liability over the actuarial value of plan assets is called the unfundedactuarial accrued liability. Funding requirements are determined by adding the normal cost and an amortization ofthe unfunded liability as a level percentage of assumed future payrolls. All changes in liability due to planamendments, changes in actuarial assumptions, or changes in actuarial methodology are amortized separately over a20-year period. All gains or losses are tracked and amortized over a rolling 30-year period with the exception ofgains and losses in fiscal years 2008-2009, 2009-2010 and 2010-2011 in which each year's gains or losses will beisolated and amortized over fixed and declining 30 year periods (as opposed to the current rolling 30-yearamortization). If a pool's accrued liabilily exceeds the actuarial value of assets, the annual contribution with respectto the total unfunded liability may not be less than the amount produced by a 3D-year amortization of the unfundedliability.Additional contributions will be required for any plan or pool if their cash flows hamper adequate funding progress bypreventing the expected funded status on a market value of assets basis of the plan to either:

Illcrease by at least 15% by June 30, 2043; or Reach a level of 75% funded by June 30, 2043The necessary additional contribution will be obtained by changing the amortization period of the gains and lossesprior to 2009 to a period which will result in the satisfaction of the above criteria. CaIPERS actuaries will reassess thecriteria above when performing each future valuation to determine whether or not additional contributions arenecessary.An exception to the funding rules above is used whenever the application of such rules results in inconsistencies. Inthese cases a "fresh start" approach is used. This simply means that the current unfunded actuarial liability isprojected and amortized over a set number of years. For instance, if the annual contribution on the total unfundedliability was less than the amount produced by a 30-year amortization of the unfunded liability, the plan actuarywould implement a 30-year fresh start. In addition, a fresh start is needed in the following situations:

1) when a positive payment would be required on a negative unfunded actuarial liability (or conversely anegative payment on a positive unfunded actuarial liability); or

calPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk PoolA-1


56/102

APpENDIX A2) when there are excess assets, rather than an unfunded liability . In this situation a 30-year fresh start isused, unless a larger fresh start is needed to avoid a negative total rate.

I t should be noted that the actuary may choose to use a fresh start under other circumstances. In all cases, theperiod of the fresh start is chosen by the actuary according to his or her best judgment, and will not be less than fiveyears nor greater than 30 years.

Asset Valuation MethodIn order to dampen the effect of short term market value fluctuations on employer contribution rates, the followingasset smoothing technique is used. First an Expected Value of Assets is computed by bringing forward the prioryear's Actuarial Value of Assets and the contributions received and benefits paid during the year at the assumedactuarial rate of return. The Actuarial Value of Assets is then computed as the Expected Value of Assets plus onefifteenth of the difference between the actual Market Value of Assets and the Expected Value of Assets as of thevaluation date. However in no case will the Actuarial Value of Assets be less than 80% nor greater than 120% of theactual Market Value of Assets.In June 2009, the CalPERS Board adopted changes to the asset smoothing method in order to phase in over a threeyear period the impact of the -24% investment loss experienced by CalPERS in fiscal year 2008-2009. The followingchanges were adopted:

Increase the corridor limits for the actuarial value of assets from 80%-120% of market value to 60%-140%of market value on June 30, 2009 Reduce the corridor limits for the actuarial value of assets to 70%-130% of market value on June 30,2010 Return to the 80%-120% of market value corridor limits for the actuarial value of assets on June 30, 2011and thereafter

Superfunded StatusIf a rate plan is superfunded (actuarial value of assets exceeds the present value of benefits), as of the mostrecently completed annual valuation, the employer may cover their employees' member contributions (both taxedand tax-deferred) using their empioyer assets during the fiscal year for whJch this valuation applies. This wouldentail transferring assets within the Public Employees' Retirement Fund (PERF) from the employer account to themember accumulated contribution accounts. This change was implemented effective January 1, 1999 pursuant toChapter 231 (Assembly Bill 2099) which added Government Code Section 20816.Superfunded status applies only to individual plans, not risk pools. For rate plans within a risk pool, actuarial valueof assets is the sum of the rate plan's side fund plus the rate plan's pro-rata share of non-side fund assets.Superfunded status is determined only on annual valuation dates.

Internal Revenue Code Section 415The. limitations on benefits imposed by Internal Revenue Code Section 415 were not taken into account in thisvaluation. The effect of these limitations has been deemed immaterial on the overall results of this valuation.Internal Revenue Code Section 401(a)(17)The limitations on compensation imposed by Internal Revenue Code Section 401(a)(17) were taken into account inthis valuation. It was determined that this change generally had minimal impact on the employer rates and nospecial amortization base has been created.

CaIPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk PoolA-2


57/102

APPENDIX A

Economic AssumptionsInvestment Return7.75% compounded annually (net of expenses). This assumption is used for all plans.Salary GrowthAnnual increases vary by category, entry age, and duration of service. Sample assumed increases are shownbelow.

Public Agency MiscellaneousDuration of Service Entry Age 20 Entry Age 30 Entry Age 40o 0.1445 0.1265 0.1005

123451015202530

Duration o f Serviceo123451015202530

0.1215 0.10750.1035 0.09350.0905 0.08250.0805 0.07350.0725 0.06750.0505 0.04850.0455 0.04350.0415 0.03950.0385 0.03850.0385 0.0385

Public Agency FireEntry Age 20 Entry Age 30

0.1075 0.10750.0975 0.09650.0895 0.08550.0825 0.07750.0765 0.07050.0715 0.06450.0535 0.04850.0435 0.04150.0395 0.03850.0375 0.03750.0375 0.0375

Public Agency PoliceDuration of Service Entry Age 20 Entry Age 30o 0.1115 0.1115

1 0.0955 0.095523451015202530


0.08350.07450.06750.06150.04750.04350.03950.03750.0375

0.08350.07250.06350.05750.04450.04150.03850.03650.0365

0.08750.07750.06950.06350.05850.04350.03850.03550.03550.0355

Entry Age 400.10450.08750.07250.06250.05350.04750.03750.03650.03550.03550.0355

Entry Age 400.11150.09550.08050.06650.05750.05050.03650.03550.03550.03550.0355

A-3


58/102

Public A!;!encl County Peace OfficersDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1315 0.1315 0.13151 0.1115 0.1085 0.10552 0.0965 0.0915 0.08653 0.0845 0.0795 0.07354 0.0755 0.0695 0.06355 0.0685 0.0625 0.0555

10 0.0485 0.0445 0.040515 0.0435 0.0405 0.038520 0.0395 0.0385 0.036525 0.0375 0.0365 0.035530 0.0375 0.0365 0.0355

SchoolsDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1105 0.0985 0.08451 0.0965 0.0875 0.07652 0.0865 0.0795 0.06953 0.0775 0.0725 0.06454 . 0.0715 0.0665 0.05955 0.0655 0.0625 0.055510 0.0475 0.0465 0.043515 0.0415 0.0405 0.037520 0.0385 0.0375 0.034525 0.0365 0.0365 0.034530 0.0365 0.0365 0.0345

The Miscellaneous salary scale is used for Local Prosecutors. The Police salary scale is used for Other. Safety, Local Sheriff, and School Police.Overall Payroll Growth

3.25% compounded annually (used in projecting the payroll over which the unfunded liability is amortized) .. This assumption is used for all plans.Inflation

3.00% compounded annually. This assumption is used for all plans.Non-valued Potential Additional liabilitiesThe potential liability loss for a cost-of-living increase exceeding the 3% inflation assumption, and any

potential liability loss from future member service purchases are not reflected in the valuation.

CaIPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk PoolA-4

..;


59/102

APPENDIX A

Miscellaneous Loading FactorsCredit for Unused Sick LeaveFinal Average Salary is increased by 1% for those agencies that have accepted the provision providingCredit for Unused Sick Leave.Conversion of Employer Paid Member Contributions (EPMC)Final Average Salary is increased by the Employee Contribution Rate for those agencies that havecontracted for the provision providing for the Conversion of Employer Paid Member Contributions (EPMC)during the final compensation period.Norris Decision (Best Factors)Employees hired prior to July 1, 1982 have projected benefit amounts increased in order to reflect the use of

"Best Factors" for these employees in the calculation of optional benefit. forms. This is due to a 1983Supreme Court decision, known as the Norris decision, which required males and females to be treatedequally in the determination of benefit amounts. Consequently, anyone already employed at that time isgiven the best possible conversion factor when optional benefits are determined. No loading is necessary foremployees hired after July 1, 1982.



60/102

APPENDIX A

Demographic AssumptionsPre-Retirement MortalityNon-Industrial Death Rates vary by age and gender. Industrial Death rates vary by age. See sample ratesin table below. The non-industr ial death rates are used for all plans. The industrial death rates are used forSafety Plans (except for Local Prosecutor safety members where the corresponding Miscellaneous Plan does

not have the Industrial Death Benefit).Non-Industrial Death Industr ial Death(Not Job-Related) (Job-Related)

Age Male Female Male and Female20 0.00047 0.00016 0.0000325 0.00050 0.00026 0.0000730 0.00053 0.00036 0.0001035 0.00067 0.00046 0.0001240 0.00087 0.00065 0.0001345 0.00120 0.00093 0.0001450 0.00176 0.00126 0.0001555 0.00260 0.00176 0.0001660 0.00395 0.00266 0.0001765 0.00608 0.00419 0.0001870 0.00914 0.00649 0.0001975 0.01220 0.00878 0.0002080 0.01527 0.01108 0.00021

Miscellaneous Plans usually have Industrial Death rates set to zero unless the agency has specificallycontracted for Industrial Death benefits. I f so, each Non-Industrial Death rate shown above will be split intotwo components: 99% will become the Non-Industrial Death rate and 1% will become the Industrial Deathrate.

Post-Retirement MortalityRates vary by age, type of retirement and gender. See sample rates in table below. These rates are usedfo r all plans.

Healthy RecipientsAge Male Female50 0.00239 0.0012555 0.00474 0.0024360 0.00720. 0.0043165 0.01069 0.0077570 0.01675 0.0124475 0.03080 0.0207180 0.05270 0.0374985 0.09775 0.0700590 0.16747 0.1240495 0.25659 0.21556100 0.34551 0.31876

105 0.58527 0.56093110 1.00000 1.00000

CaIPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk Pool

Non-Industrially Disabled Industr ially Disabled(Not Job-Related) (Job-Related)Male Female Male Female

0.01632 0.01245 0.00443 0.003560.01936 0.01580 0.00563 0.005460.02293 0.01628 0.00777 0.007980.03174 0.01969 0.01388 0.011840.03870 0.03019 0.02236 0.017160.06001 0.03915 0.03585 0.026650.08388 0.05555 0.06926 0.045280.14035 0.09577 0.11799 0.080170.21554 0.14949 0.16575 0.137750.31025 0.23055 0.26108 0.233310.45905 0.37662 0.40918 0.351650.67923 0.61523 0.64127 0.601351.00000 1.00000 1.00000 1.00000

A-6


61/102

APPENDIX AMarital StatusFor active members, apercentage married upon retirement is assumed according to the following table.

Age of Spouse

Member CategoryMiscellaneous MemberLocal PoliceLocal FireOther Local SafetySchool Police

Percent Married85%90%90%90%90%

It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for allplans.Terminated Members

I t is assumed that terminated members refund immediately if non-vested. Terminated members who arevested are assumed to follow the same service retirement pattern as active members but with a load toreflect the expected higher rates of retirement, especially at lower ages. The following table shows the loadfactors that are applied to the service retirement assumption for active members to obtain the serviceretirement pattern for separated vested members:

Age505152 through 5657 through 6061 through 6465 and above

Termination with Refund

Load Factor450%250%200%150%125%100% (no change)

Rates vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. Seesample rates in tableS below.Public A g e n c ~ Miscellaneous

Duration ofService Entry Age 20 Entry Age 250 0.1742 0.16741 0.1545 0.14772 0.1348 0.12803 0.1151 0.10834 0.0954 0.08865 0.0212 0.019310 0.0138 0.012115 0.0060 0.005120 0.0037 0.002925 0.0017 0.001130 0.0005 0.000135 0.0001 0.0001

CaIPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk Pool

Entry Age 30 Entry Age 350.1606 0.15370.1409 0.13390.1212 0.11420.1015 0.09450.0818 0.07480.0174 0.01550.0104 0.00880.0042 0.00320.0021 0.00130,0005 0.00010.0001 0.00010.0001 0.0001

Entry Age 40 Entry Age 450.1468 0.14000.1271 0.12030.1074 0.10060.0877 0.08090 . 0 6 ~ 0 0.06120.0136 0.011600071 0.00550.0023 0.00140.0005 0.00010.0001 0.00010.0001 0.00010.0001 0.0001

A-7


62/102

,APPENDIX A,:";:,:

Public Agency SafetyDuration of Service Fire PoHce County Peace Officer

0 0.0710 0.1013 0.09971 0.0554 0.0636 0.07822 0.0398 0.0271 0.05663 0.0242 0.0258 0.04374 0.0218 0.0245 0.04145 0.0029 0.0086 0.014510 0.0009 0.0053 0.008915 0.0006 0.0027 0.004520 0.0005 0.0017 0.002025 0.0003 0.0012 0.000930 0.0003 0.0009 0.000635 0.0003 0.0009 0.0006

The Police Termination and Refund rates are used for Public Agency Local Prosecutors, Other Safety, Local Sheriff,and School Police.

SchoolsDuration ofService Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45

0 0.1730 0.1627 0.1525 0.1422 0.1319 0.12171 0.1585 0.1482 0.1379 0.1277 0.1174 0.10712 0.1440 0.1336 0.1234 0.1131 0.1028 0.09263 0.1295 0.1192 0.1089 0.0987 0.0884 0.07814 0.1149 0.1046 0.0944 0.0841 0.0738 0.06365 0.0278 0.0249 0.0221 0.0192 0.0164 0.013510 0.0172 0.0147 0.0122 0.0098 0.0074 0.004915 0.0115 0.0094 0.0074 0.0053 0.0032 0.001120 0.0073 0.0055 0.0038 0.0020 0.0002 0.000225 0.0037 0.0023 0.0010 0.0002 0.0002 0.000230 0.0015 0.0003 0.0002 0.0002 0.0002 0.000235 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002

Termination with Vested BenefitsRate vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. Seesample rates in tables below.Public Agency Miscellaneous

Duration of.Service Entry Age 2.05 0.065610 0.053015 0.044320 0.033325 0.021230 0.000035 0.0000

CarPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk poor

Entry Age 25 Entry Age 300.0597 0.05370.0466 0.04030.0373 0.03050.0261 0.00000.0000 0.00000.0000 0.00000.0000 0.0000

Entry Age 35 Entry Age 400.0477 0.04180.0339 0.00000.0000 0.00000.0000 0.00000.0000 0.00000.0000 0.00000.0000 0.0000

A-8


63/102

APPENDIX A

Public Agency SafetyDuration of County Peace

Service Fire Police Officer5 0.0162 0.0163 0.026510 0.0.061 0.0126 0.020415 0.0058 0.0082 0.013020 0.0053 0.0065 0.007425 0.0047 0.0058 0.004330 0.0045 0.0056 0.003035 0.0000 0.0000 0.0000

When a member is eligible to retire, the termination with vested benefits probability is set to zero. After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and asafety member at age 54. The Police Termination with vested benef its rates are used for Public Agency Local Prosecutors, OtherSafety, Local Sheriff, and School Police.

Duration ofService Entry Age 205 0.081610 0.062915 0.053720 0.042025 0.029130 0.000035 0.0000

calPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk Pool

SchoolsEntry Age 25 Entry Age 30 Entry Age 35 Entry Age 40

0.0733 0.0649 0.0566 0.04820.0540 0.0450 0.0359 0.00000.0440 0.0344 0.0000 0.00000.0317 0.0000 0.0000 0.00000.0000 0.0000 0.0000 0.00000.0000 0.0000 0.0000 0.00000.0000 0.0000 0.0000 0.0000

A-9


64/102

APPENDIX A

Non-Industrial (Not Job-Related) DisabilityRates vary by age and gender for Miscellaneous Plans.Rates vary by age for Safety Plans

Miscellaneous Fire Police County Peace Officer SchoolsAge Male Female Male and Female Male and Female Male and Female Male Female--- ---20 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.000125 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.000130 0.0002 0.0002 0.0001 0.0002 0.0001 0.0002 0.000135 0.0006 0.0009 0.0001 0.0003 0.0004 0.0006 0.000440 0.0015 0.0016 0.0001 0.0004 0.0007 0.0014 0.000945 0.0025 0.0024 0.0002 0.0005 0.0013 0.0028 0.001750 0.0033 0.0031 0.0005 0.0008 0.0018 0.0044 0.003055 0.0037 0.0031 0.0010 0.0013 0.0010 0.0049 0.003460 0.0038 0.0025 0.0015 0.0020 0.0006 0.0043 0.0024

The Miscellaneous Non-Industrial Disability rates are used for Local Prosecutors. The Police Non-Industrial Disability rates are used for Other Safety, Local Sheriff, and School Police.

Industrial (Job-Related) DisabilityRates vary by age and category.

Age Fire Police County Peace Officer20 0.0002 0.0007 0.000325 0.0012 0.0032 0.001530 0.0025 0.0064 0.003135 0.0037 0.0097 0.004640 0.0049 0.0129 0.0063 .45 0.0061 0.0161 0.007850 0.0074 0.0192 0.010155 0.0721 0.0668 0.017360 0.0721 0.0668 0.0173

The Police Industrial Disability rates are used for Local Sheriff and Other Safety. Fifty Percent of the Police Industrial Disability rates are used for School Police. One Percent of the Police Industrial Disability rates are used for Local Prosecutors. Normally, rates are zero for Miscellaneous Plans unless the agency has specifically contracted forIndustrial Disability benefits. I f so, each Miscellaneous Non-Industrial Disability rate will be split into twocomponents: 50% will become the Non-Industrial Disability rate and 50% will become the IndustrialDisability rate.

Service RetirementRetirement rate vary by age, service, and formula, except for the safety liz @ 55 and 2% @ 55 formulas, whereretirement rates vary by age only.



65/102

APPENDIX A

Public Agency Miscellaneous 1.5% @ 65Age5051525354555657585960616263646566.67686970

5 Years0.0080.007O.OlO0.0080.0120.0180.0150.0200.0240.0280.0490.0620.lO40.0990.0970.1400.0920.1290.0920.0920.103

10 Years0.0110.0100.0140.0120.0160.0250.0210.0280.0330.0390.0690.0870.1460.1390.1360.1970.1300.1810.1290.1300.144

Duration of Service15 Years 20 Years

0.013 0.0150.0120.0170.0150.0190.0310.0250.0330.0400.0480.0830.1060.1770.1690.1650.2400.1570.2200:1560.1580.175

0.0130.0190.0170.0220.0350.0290.0380.0460.0540.0940.1200.2000.1910.1860.2710.1770.2490.1770.1780.198

25 Years 30 Years0.017 0.0190.0150.0210.0190.0250.0380.0320.0430.0520.0600.1050.1330.2230.2130.2090.3020.1980.2770.1970.1990.221

0.0170.0240.0220.0280.0430.0360.0480.0580.0670.1180.1500.2510.2390.2330.3390.2220.3110.2210.2240.248

Public Agency Miscellaneous 20/0 @ 60Age505152535455565758596061626364656667686970

5 Years0.0110.0090.0130.0110.0150.0230.0190.0250.0300.0350.0620.0790.1320.1260.1220.1730.1140.1590.1130.1140.127

Duration of ServicelO Years 15 Years 20 Years

0.015 0.018 0.0210.0130.0180.0160.0210.0320.0270.0350.0420.0490.0870.1100.1860.1780.1710.2430.1600.2230.1590.1610.178

0.0160.0220.0190.0250.0390.0320.0420.0510.0600.1050.1340.2250.2160.2070.2960.1940.2710.1930.1950.216

0.0180.0250.0220.0280.0440.0370.0480.0580.0680.1190.1520.2550.2440.2340.3340.2190.3070.2180.2200.244

calPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk Pool

25 Years 30 Years0.023 0.0260.0200.0280.0250.0320.0490.0410.0540.0650.0760.1330.169

. 0.2840.2720.2620.3730.2450.3420.2430.2460.273

0.0230.0310.0280.0360.0550.0460.0600.0730.0850.1490.1900.3190.3050.2930.4180.2740.3840.2730.2760.306

A-11


66/102

APPENDIX A

Public Agency Miscellaneous 2% @ 55Age505152535455565758. 596061626364656667686970

5 Years0.0150.0130.0140.0170.0270.0500.0450.0480.0520.0600.0720.0890.1280.1290.1160.1740.1350.1330.1180.1160.138

10 Years0.0200.0160.0180.0220.0340.0640.0570.0610.0660.0760.0920.1130.1620.1640.1480.2210.1710.1690.1500.1470.176


0.024 0.0290.020 0.0240.0220.0270.0410.0780.0690.0740.0800.0920.1120.1370.1970.1990.1800.2690.2080.2060.1820.1790.214

0.0270.0320.0490.0940.0830.0900.0970.1110.1340.1650.2370.2390.2160.3230.2500.2470.2190.2150.257

25 Years 30 Years0.033 0.0390.027 0.0330.0300.0370.0560.1070.0950.1020.1100.1270.1530.1880.2700.2730.2470.3690.2850.2820.2500.2460.293

0.0360.0430.0670.1270.1130.1220.1310.1510.1820.2240.3220.3250.2940.4390.3400.3360.2970.2930.349

Public Agency Miscellaneous 2.5% @ 55Age505152535455565758596061626364656667686970

5 Years0.0260.0210.0210.0260.0430.0880.0550.0610.0720.0830.0880.0830.1210.1050.1050.1430.1050.1050.1050.1050.125

10 Years0.0330.0260.0260.0330.0540.1120.0700.0770.0910.1050.1120.1050.1540.1330.1330.1820.1330.1330.1330.1330.160



0.040 0.0480.032 0.0380.032 0.0380.040 0.0480.066 0.0780.136 0.1600.0850.0940.1110.1280.1360.1280.1870.1620.1620.2210.1620.1620.1620.1620.194

0.1000.1100.1300.1500.1600.1500.2200.1900.1900.2600.1900.1900.1900.1900.228

25 Years0.0550.0430.0430.0550.0890.1840.1150.1270.1500.1730.1840.1730.2530.2190.2190.2990.2190.2190.2190.2190.262

30 Years'0.0620.0490.0490.0620.1010.2080.1300.1430.1690.1950.2080.1950.2860.2470.2470.3380.2470.2470.2470.2470.296

A-12


67/102

APPENDIX A

Public Agency Miscellaneous 2.7% @ 55Age505152535455565758596061626364

6667686970

5 Years. 10 Years0.028 0.0350.0220.0220.0280.0440.0910.0610.0630.0740.0830.0880.0850.1240.1070.1070.1460.1070.1070.1070.1070.129

0.0280.0280.0350.0560.1160.0770.0810.0950.1050.1120.1090.1580.1370.1370.1860.1370.1370.1370.1370.164


0.043 0.0500.0340.0340.0430.0680.1400.0940.0980.1150.1280.1360.1320.1910.1660.1660.2250.i660.1660.1660.1660.199

0.0400.0400.0500.0800.1650.1100.1150.1350.1500.1600.1550.2250.1950.1950.2650.1950.1950.1950.1950.234

25 Years0.0580.0460.0460.0580.0920.1900.1270.1320.1550.1730.1840.1780.2590.2240.2240.3050.2240.2240.2240.2240.269

Public Agency Miscellaneous 3% @ 60Age505152535455565758596061626364656667686970

5.Years0.0260.0210.0190.0250.0390.0830.0550.0610.0720.0800.0940.0880.1270.1100.1100.1490.1100.1100.1100.1100.132

10 Years0.0330.0260.0250.0320.0490.1050.0700.0770.0910.1020.1190.1120.1610.1400.1400.1890.1400.1400.1400.1400.168



0.040 0.0480.032 0.0380.030 0.0350.038 0.0450.0600.1280.0850.0940.1110.1230.1450.1360.1960.1700.1700.2300.1700.1700.1700.1700.204

0.0700.1500.1000:1100.1300.1450.1700.1600.2300.2000.2000.2700.2000.2000.2000.2000.240

25 Years0.0550.0430.0400.0520.0810.1730.1150.1270.1500.1670.1960.1840.2650.2300.2300.3110.2300.2300.2300.2300.276

30 Years0.0650.0520.0520.0650.1040.2150.1430.1500.1760.1950.2080.2020.2930.2540.2540.3450.2540.2540.2540.2540.304

30 Years0.0620.0490.0460.0590.0910.1950.1300.1430.169 .0.1890.2210.2080.2990.2600.2600.3510.2600.2600.2600.2600.312

A-13


68/102

APPENDIX A

8gg505152535455

Public Agency Fire 112 @ 55 and 2% @ 55Rate 8gg0.01588 560.00000 570.03442 580.01990 590.04132 600.07513

Rate0.110790.000000.09499. 0.044091.00000

Public Agency Police 112 @ 55 and 2% @ 558gg Rate 8gg50 0.02552 5651 0.00000 5752 0.01637 5853 0.02717 5954 0.00949 6055 0.16674

Public Agency Police 2%@ 50Duration of Service

Rate0.069210.051130.072410.070431.00000

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.014 0.014 0.014 0.014 0.025 0.04551 0.012 0.012 0.012 0.012 0.023 0.04052 0.026 0.026 0.026 0.026 0.048 0.08653 0.052 0.052 0.052 0.052 0.096 0.17154 0.070 0.070 0.070 0.070 0.128 0.22755 0.090 0.090 0.090 0.090 0.165 0.29356 0.064 0.064 0.064 0.064 0.117 0.20857 0.071 0.071 0.071 0.071 0.130 0.23258 0.063 0.063 0.063 0.063 0.115 0.20559 0.140 0.140 0.140 0.140 0.174 0.25460 0.140 0.140 0.140 0.140 0.172 0.25161 0.140 0.140 0.140 0.140 0.172 0.25162 0.140 0.140 0.140 0.140 0.172 0.25163 0.140 0.140 0.140 0.140 0.172 0.25164 0.140 0.140 0.140 0.140 0.172 0.25165 1.000 1.000 1.000 1.000 1.000 1.000

These rates also apply to Local Prosecutors, Local Sheriff, School Police, and Other Safety



69/102

APPENDIX A

Public Agency Fire 2%@50Duration of Service

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.007 0.007 0.007 0.007 0.010 0.01551 0.008 0.008 0.008 0.008 0.013 0.01952 0.017 0.017 0.017 0.017 0.027 0.04053 0.047 0.047 0.047 0.047 0.072 0.10754 0.064 0.064 0.064 0.064 0.098 0.14755 0.087 0.087 0.087 0.087 0.134 0.20056 0.078 0.078 0.078 0.078 0.120 0.18057 0.090 0.090 0.090 0.090 0.139 0.20858 0.079 0.079 0.079 0.079 0.122 0.18259 0.073 0.073 0.073 0.073 0.112 0.16860 0.114 0.114 0.114 0.Q4 0.175 0.26261 0.114 0.114 0.114 0.114 0.175 0.26262 0.114 0.114 0.114 0.114 0.175 0.26263 0.114 0.114 0.114 0.114 0.175 0.26264 0.114 0.114 0.114 0.114 0.175 0.26265 1.000 1.000 1.000 1.000 1.000 1.000

Public Agency Police 3%@ 55Duration of Service



calPERS Actuarial Valuation - June 30,2010Safety 3.0% at 55 Risk PoolA-15


70/102

APPENDIX A,/,," -.

Public Agency Fire 3%@55Duration of Service


Public Agency Police 3%@ 50Duration of Service.



CaIPERS Actuarial Valuation - June 30, 2010Safety 3.0% at 55 Risk PoolA-16

Documents

Encinitas Lifeguard Pension