The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities increased from 86.5% to 88.5%. The Association’s UAAL has decreased from $1.2 billion to $1.1 billion. This decrease is due to an investment return on actuarial value (i.e. after smoothing) greater than the 7.00% assumed rate, actual contributions greater than expected, and a retirement gain on actives all offset to some degree by higher than expected individual salary increases, higher than expected COLA increases for retirees and beneficiaries, and a mortality loss on retirees and beneficiaries.

The average employer rate calculated in this valuation (excluding any employer subvention of member rates or member subvention of employer rates) has decreased from 38.08% of payroll to 36.07% of payroll. This decrease is due to an investment return on actuarial value (i.e. after smoothing) greater than the 7.00% assumed rate, actual contributions greater than expected, amortizing the prior year’s UAAL over a greater than expected projected total payroll and a retirement gain on actives all offset to some degree by higher than expected individual salary increases, higher than expected COLA increases for retirees and beneficiaries and a mortality loss on retirees and beneficiaries.

December 31, 2017 Actuarial Valuation