HomeMy WebLinkAbout27 - CalPERS Pension Plan Update & Payment Alternative - PowerPoint (Staff)PEN S! ON
4
�
Finance Department
$45
w
$35
$30
$25
$20
$15
$10
$5
Total Pension Cast Projection
(Millions)
2015 2016 2017 2018 2019 2020 2021
■ UAL Payment
■ Normal Cost
Based on zero vacancies and assumed payroll gro%vth of 3%
** Total pension cost is gross of employee contributions.
2
nalysis
$258 Million
as of June 301 2013
$273 Million Projected
June 301 2015
■ Active Employees
Retired, Terminated or
Transferred Plan Participants
$50 -
$45
$40
$35
$30
$25
$20
$15
$10
$5
$0
N
O
rn 0)
Funding Schedule Options
Millionsl
N N N N N N N N N N N N N N
O O O O O O O O O O O O O O
N N N N N N W W W W W A A A
00 O N A Qt 00 O N A ai 00 O N A
— Current —19 Yr —15 Yr —10 Yr
O
Eliminates Negative Amortization
Improves Funded Status
5
Current
19 Yr
15 Yr
10 Yr
Current
19 Yr
15 Yr
10 Yr
1
2016
273
273
273
273
Q 63.8%
Q
63.8%
4
63.8%
0
63.8%
2
2017
.....................................................................................................................................................................................................................................................................
278
0
271
0
2676
258
Q
• 65.4%
0
66.2%
4
66.7%
...............................
0
67.9%
3
2018
.....................................................................................................................................................................................................................................................................
282
Q
269
0
261
0
241
0
0 67.0%
0
68.5%
0
69.5%
...............................
0
71.8%
4
2019
.....................................................................................................................................................................................................................................................................
285
I�
266
0
253
0
222
6
0 681%
"D
70A%
0
72.2%
...............................
Q
75.6%
5
2020
..........................................................................................................................................................................................._........................................................................
...... 285
284
................................................................................................................
0
261.
256
Q
0
243
233
0
200
1750
Q ...............................
Q 70.5 %'
72.4%
.........................................
.._..'
73.0%
75.2 %'
0 ...............................
74.9%
77.5%
...............................
0
79.4%
6
2021
7
2022
................................................................................................................................................................................................
283
6
250
0
2200
147
p
(- - 74.3%
_..............................
(D
77.3%
: + G .
O
86.6%
8
2023
...............................................................................................................................................................................................
280
..........................................
277
Q
. .
Q
242
. . . . . . . . . . . . . . . . . . . . .
233
Q
. . . . . . . . . . . . . . . . .
205
. . . . . . . . . . . . . . . . . . .
189
Q
. . . . . . . . . . . . . . . . . .
Q
116
. . . . . . . . . . . . . . . . . . . .
81
O
. . . . . . . . . . . . . . . . . ......
IQ
76.1 %
. . . . . . . . . . . . . . . . . . . . . . . . . .
77.8%
...............................
0
79.3%
.
0
�
82.5 %'
............... ...............................
84.9%
... ...............................
�
0-1%
%"
93.5 �5
9
2024
10
2025
272
�'jl
223
Q
170
43
__ 79.596
0
83.2%10
87.2%
•
96.8%
5
�i
C
Total
(Millions)
(ears
ors 1 -5
ors 6 -10
ors 11 -15
ors 16 -20
ors 21 -30
Full
UAL -
Incremental
44
Current
19 Yr
15 Yr
10 Yr
Current
19 Yr
15 Yr
10 Yr
90
113
133
181
-
42
90
23
118
131
154
210
-
13
36
91
137
152
179
-
-
15
42
(151)
(137)
(151)
151
139
-
-
-
(12)
168
-
-
-
I -
(168)
(168)
(168)
0
Finance Committee Recommendations
❖Accelerate Amortization — 19 Years
❖Commit to a "Fresh Start"
o Implemented w /FY 2015 -16 budget
Questions?
$60
$40
$20
$0
-$20
-$40
-$60
-$80
-$100
As Compared to the Current Schedule
(in Millions)
—10 Yr —15 Yr —19 Yr — Current
f
N
O
N
O
N
O
N
O
N
O
N
O
N
O
N
O
N
UO
N
O
LU
N
O
N
N
A
—10 Yr —15 Yr —19 Yr — Current
f
First Ten Years
(Millions)
10
Currentl 19 Yr I 15 Yr I 10 Yr
Currentl
19 Yr I 15 Yr
I 10 Yr
1
2016
14.7 21.3 25.0 34.0
-
6.6
10.3 19.3
2
2017
..........................................................................................................._.....................................................................................
16.3 21.9 25.8 35.1
......................................... _ ..........................................................................................................
-
................................ _ ............
5.6
......................................
...._..........................
9.5 18.8
........................................ _..........................
3
2018
18.0 22.6 26.5 36.1
...............................................................................................................................................................................................................................................................................
-
4.6
8.6 18.1
...............................
4
2019
19.8 23.3 27.3 37.2
.....................................................................................................................................................................
-
...............................
3.5
7.6 17.4
..................................... ...............................
5
2020
21.6 24.0 28.2 38.3
-
2.4
6.6 16.7
6
2021
................................................................................................................................................................................................................................................................................
22.3 24.7 29.0 39.5
...........................................................................................................................................................................................................................................................................
-
2.4
...............................
6.7 17.2
...............................
7
2022
22.9 25.4 29.9 40.7
................................................................................................................................................................................................................................................................................
-
2.5
6.9 17.7
...............................
8
2023
23.6 26.2 30.8 41.9
-
2.6
7.2 18.3
9
2024
... ...... ..... ... ....................... ...... ......... ...................... ...... ......... ....................... ..... ..... ... ......................................_..........................................._..........................................
24.3 27.0 31.7 43.1
...............................................................................................................................................................................................................................................................................
-
2.7
...............................
7.4 18.8
...............................
10
2025
25.1 27.8 32.6 44.4
-
2.7
7.6 19.4
10
The City has taken a number of actions to mitigate the
rising costs including:
Establishing lower benefit formulas for new
hires
Eliminating the Employer Paid Member
Contribution (EPMC)
Having employees pay more of the pension
costs.
Reducing the number of staff by nearly 100
employees
Adopting a fixed and shorter amortization
period of the unfunded liability