PAROCHIAL EMPLOYEES RETIREMENT SYSTEM PAROCHIAL - 2019 Valuation parochial employees’ retirement

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  • PAROCHIAL EMPLOYEES’

    RETIREMENT SYSTEM

    ACTUARIAL VALUATION AS OF

    DECEMBER 31, 2014

    PAROCHIAL EMPLOYEES’

    RETIREMENT SYSTEM

    ACTUARIAL VALUATION AS OF

    DECEMBER 31, 2019

  • G. S. CURRAN & COMPANY, LTD. Actuarial Services

    10555 N. Glenstone Place  Baton Rouge, Louisiana 70810  (225)769-4825

    Gary S. Curran, FCA, MAAA, ASA, EA Gregory M. Curran, FCA, MAAA, ASA, EA

    Consulting Actuary Consulting Actuary

    June 22, 2020

    Board of Trustees

    Parochial Employees’ Retirement System

    7905 Wrenwood Blvd.

    Baton Rouge, LA 70809

    Ladies and Gentlemen:

    We are pleased to present our report on the actuarial valuation of the Parochial Employees’ Retirement

    System for the fiscal year ending December 31, 2019. Our report is based on the actuarial assumptions

    specified and relies on the data supplied by the system’s administrators and accountants. This report

    was prepared at the request of the Board of Trustees of the Parochial Employees’ Retirement System.

    The primary purposes of the report are to determine the actuarially required contribution for the

    retirement system for the fiscal year ending December 31, 2020, to recommend the net direct employer

    contribution rate for Fiscal 2021. This report does not contain the information necessary for accounting

    disclosures as required by Governmental Accounting Standards Board (GASB) Statements 67 and 68;

    that information is included in a separate report. This report was prepared exclusively for the Parochial

    Employees’ Retirement System for a specific limited purpose. It is not for the use or benefit of any third

    party for any purpose.

    In our opinion, all of the assumptions on which this valuation is based are reasonable individually and

    in the aggregate. Both economic and demographic assumptions are based on our expectations for future

    experience for the fund. This report has been prepared in accordance with generally accepted actuarial

    principles and practices, and to the best of our knowledge and belief, fairly reflects the actuarial present

    values and costs stated herein. The undersigned actuaries are members of the American Academy of

    Actuaries and have met the qualification standards for the American Academy of Actuaries to render

    the actuarial opinions incorporated in this report, and are available to provide further information or

    answer any questions with respect to this valuation.

    Sincerely,

    G. S. CURRAN & COMPANY, LTD.

    By: __________________________________ ___________________________________

    Gary Curran, F.C.A., M.A.A.A., A.S.A. Gregory Curran, F.C.A., M.A.A.A., A.S.A.

  • TABLE OF CONTENTS Subject Page

    SUMMARY OF VALUATION RESULTS .............................................................................................................. 1

    SUMMARY OF VALUATION RESULTS .............................................................................................................. 2

    GENERAL COMMENTS .......................................................................................................................................... 3

    COMMENTS ON DATA........................................................................................................................................... 4

    COMMENTS ON ACTUARIAL METHODS AND ASSUMPTIONS .................................................................... 5

    RISK FACTORS ........................................................................................................................................................ 6

    CHANGES IN PLAN PROVISIONS ........................................................................................................................ 9

    ASSET EXPERIENCE .............................................................................................................................................. 9

    DEMOGRAPHICS AND LIABILITY EXPERIENCE – PLAN A......................................................................... 11

    DEMOGRAPHICS AND LIABILITY EXPERIENCE – PLAN B ......................................................................... 11

    FUNDING ANALYSIS AND RECOMMENDATIONS ........................................................................................ 12

    COST OF LIVING INCREASES ............................................................................................................................ 14

    GRAPHS – PLAN A ................................................................................................................................................ 16

    GRAPHS – PLAN B ................................................................................................................................................ 21

    EXHIBIT I – Plan A: Analysis of Actuarially Required Contributions ................................................................... 27

    EXHIBIT II – Plan A: Present Value of Future Benefits ......................................................................................... 28

    EXHIBIT III – SCHEDULE A – Plan A: Market Value of Assets.......................................................................... 29

    EXHIBIT III – SCHEDULE B – Plan A: Actuarial Value of Assets ...................................................................... 30

    EXHIBIT IV – Plan A: Present Value of Future Contributions ............................................................................... 31

    EXHIBIT V – Plan A: Reconciliation of Contributions ........................................................................................... 31

    EXHIBIT VI – Plan A: Analysis of Change in Assets ............................................................................................. 32

    EXHIBIT VII – Plan A: Funding Deposit Account ................................................................................................. 33

    EXHIBIT VIII – SCHEDULE A – Plan A: Pension Benefit Obligation ................................................................. 33

    EXHIBIT VIII – SCHEDULE B – Plan A: Entry Age Normal Accrued Liabilities ............................................... 33

    EXHIBIT IX – Plan A: Census Data ........................................................................................................................ 34

    EXHIBIT X – Plan A: Year-to-Year Comparison ................................................................................................... 42

    EXHIBIT XI – Plan B: Analysis of Actuarially Required Contributions ................................................................ 45

    EXHIBIT XII – Plan B: Present Value of Future Benefits ...................................................................................... 46

    EXHIBIT XIII – SCHEDULE A – Plan B: Market Value of Assets ....................................................................... 47

    EXHIBIT XIII – SCHEDULE B – Plan B: Actuarial Value of Assets .................................................................... 48

    EXHIBIT XIV – Plan B: Present Value of Future Contributions ............................................................................ 49

    EXHIBIT XV – Plan B: Reconciliation of Contributions ........................................................................................ 49

    EXHIBIT XVI – Plan B: Analysis of Change in Assets .......................................................................................... 50

    EXHIBIT XVII – Plan B: Funding Deposit Account ............................................................................................... 51

    EXHIBIT XVIII – SCHEDULE A – Plan B: Pension Benefit Obligation .............................................................. 51

    EXHIBIT XVIII – SCHEDULE B – Plan B: Entry Age Normal Accrued Liabilities ............................................. 51

    EXHIBIT XIX – Plan B: Census Data ..................................................................................................................... 52

    EXHIBIT XX – Plan B: Year-to-Year Comparison ................................................................................................. 60

    SUMMARY OF PRINCIPAL PLAN PROVISIONS .............................................................................................. 62

    ACTUARIAL ASSUMPTIONS .............................................................................................................................. 66

    GLOSSARY ............................................................................................................................................................. 72

  • G. S. Curran & Company, Ltd. -1-

    SUMMARY OF VALUATION RESULTS PAROCHIAL EMPLOYEES’ RETIREMENT SYSTEM – PLAN A

    Valuation Date: December 31, 2019 December 31, 2018 Census Summary: Active Members 14,042 14,027

    Retired Members and Survivors 7,651 7,467

    Terminated Due a Deferred Benefit 818 813

    Terminated Due a Refund 7,967 7,845 Payroll: $ 634,490,049 $ 615,887,352

    Benefits in Payment: $ 185,969,386 $ 177,804,482

    Present Value of Future Benefits: $ 5,029,560,028 $ 4,897,404,869

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