The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities increased from 91.8% to 92.4%. The Association’s unfunded actuarial accrued liability (UAAL) has decreased from $859 million to $855 million. The decrease in UAAL is primarily due to an investment return on actuarial value (i.e. after asset smoothing) more than the 7.00% assumed rate used in the December 31, 2020 valuation and contributions paying down a portion of the UAAL, offset to some degree by the change in assumptions, individual salary increases greater than expected, and COLA increases greater than expected.

The average employer rate calculated in this valuation (excluding any employer subvention of member rates or member subvention of employer rates) has increased from 33.87% of payroll to 35.55% of payroll. This increase is primarily due to the effect of change in assumptions, individual salary increases greater than expected, and COLA increases greater than expected, offset to some degree by an investment return on actuarial value (i.e. after asset smoothing) greater than the 7.00% assumed rate used in the December 31, 2020 valuation, and the effect of changes in member demographics on Normal Cost.

December 31, 2021 Actuarial Valuation