The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities decreased from 92.4% to 91.2%. The Association’s unfunded actuarial accrued liability (UAAL) has increased from $855 million to $1,050 million. The increase in UAAL is primarily due to an investment return on valuation value (i.e. after asset smoothing) less than the 6.75% assumed rate used in the December 31, 2021 valuation, 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 decreased from 35.55% of payroll to 30.01% of payroll. This decrease is primarily due to the net effect of the full amortization of the 2007 restart of amortization and the Pension Obligation Bonds issued by certain employers. That decrease was offset to some degree by an investment return on valuation value (i.e., after asset smoothing) less than the 6.75% assumed rate used in the December 31, 2021 valuation, individual salary increases greater than expected, and COLA increases greater than expected.

December 31, 2022 Actuarial Valuation