The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities increased from 81.7% to 84.5%. The Association’s UAAL has decreased from $1.5 billion to $1.3 billion. This decrease is due to an investment return on actuarial value (i.e. after smoothing) greater than the 7.25% assumed rate, actual contributions greater than expected and lower than expected COLA increases for retirees and beneficiaries all offset to some degree by the changes in actuarial assumptions.

The average employer rate calculated in this valuation (excluding any employer subvention of member rates or member subvention of employer rates) has decreased from 40.06% of payroll to 39.23% of payroll. This decrease is due to an investment return on actuarial value (i.e. after smoothing) greater than the 7.25% assumed rate, lower than expected COLA increases for retirees and beneficiaries and other experience gains all offset to some degree by the changes in actuarial assumptions (including the explicit administrative expense load).

December 31, 2015 Actuarial Valuation