Agenda — Kingsburg City Council, March 19, 2025 (part 2 of 3)

FINANCIAL INFORMATION

PRIOR ACTION/REVIEW

1. Council adopted the Local Roads Safety Plan on August 7, 2024.

2. Council provided staff direction regarding submittal of the HSIP application.

BACKGROUND INFORMATION
The Highway Safety Improvement Program (HSIP), codified as Section 148 of Title 23, United States Code (23 U.S.C. §148) is one of the core federal-aid programs for funding transportation improvement projects. The purpose of the HSIP program is to achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non-State-owned public roads and roads on tribal land.

HSIP funds are eligible for work on any public road or publicly owned bicycle or pedestrian pathway or trail, or on tribal lands for general use of tribal members, that improves the safety for its users. There are twenty-eight project categories identified as eligible as listed under 23 U.S.C. §148(a)(4)(B). No funding priority is assigned to the list.

The California Local HSIP program may place further restrictions on the eligibility of individual project categories to meet the most critical needs on California local roadways. It is the intent of the HSIP program that the HSIP funds be expended on safety projects that can be designed and constructed expeditiously. Projects must not require the acquisition of significant rights of way (not more than 10% of the construction cost), nor must they require extensive environmental review and mitigation.

For a project to be eligible for HSIP funding, a specific safety problem must be identified, and the proposed countermeasure(s) must substantially address the condition. All proposed projects must lead to and complete the construction of safety improvements.

Staff identified Kern Street / 10th Avenue as a candidate HSIP project. Improvements that were considered at this location included one of the following countermeasures:
• Traffic Signal installation
• Roundabout/traffic circle
• Installation of safety devices such as LED enhance stop signs, safety lighting, warning signs, and enhanced visibility striping.

After determining that traffic signal warrants were not met, staff further analyzed the remaining countermeasures during the application process and determined that the countermeasure that provided the best benefit to cost ratio was installation of safety devices including Rectangular Rapid Flashing Beacons, realignment of 10th Avenue east of Kern Street, and intersection improvements including high visibility crosswalks, new ADA compliant ramps, updated striping, and application of a speed table/elevated pedestrian crossing. The application was submitted on September 9, 2024, based on this alternative.

Staff was notified on February 26, 2025, that $1,066,320 in HSIP funding has been allocated to the project. The project will likely be constructed in Summer of 2027.

ATTACHED INFORMATION

1. Location Map

2. Conceptual Improvement Plan

3. Grant Award Letter
FISCAL IMPACT:

1. Is There A Fiscal Impact? No

2. Is it Currently Budgeted? N/A

3. If Budgeted, Which Line? N/A

SLOW SCHOOL XING SLOW SCHOOL XING
STOP
STOP
STOP Peters Engineering Group KERN STREET
10TH AVENUE figure 1
“Provide a safe and reliable transportation network that serves all people and respects the environment”

DIVISION OF LOCAL ASSISTANCE
1352 W. Olive Avenue | Fresno, CA 93728
(559) 981-7312
www.dot.ca.gov/programs/local-assistance
February 26, 2025
Highway Safety Improvement Program (HSIP) Cycle 12 Award Dear Mr. Henderson,
Congratulations! Your HSIP application has been selected for funding:

Application ID 06-KINGSBURG-1
Location Intersection of 10th Ave & Kern St.

Description of Work Install speed table, rectangular rapid flashing beacon (RRFBs), lighting, and new crosswalks.

Project Cost $1,184,800
HSIP Funds Requested $1,066,320
The complete list of funded projects in HSIP Cycle 12 Call for Projects is available online at https://dot.ca.gov/programs/local-assistance/fed-and-state-programs/highway-safetyimprovement-program/approved-project-lists.

The agency’s first step is to contact the appropriate District Local Assistance Engineer (DLAE) who can assist with the funding allocation process and other project management requirements.

To help in the success of your project, here are some important items to note:

1. This project has been assigned to use state funds. Please pay attention to the funding type for your project as listed in the Cycle 12 project list.

2. The HSIP is a reimbursement program. Reimbursable work cannot commence on your project until you receive an allocation for state funds from Caltrans Division of Local Assistance (DLA) for this project.
06-KINGSBURG-1
February 26, 2025

Page 2 ends

“Provide a safe and reliable transportation network that serves all people and respects the environment”

3. For state funded HSIP projects, please note:
a. The funding allocation process for HSIP projects with state HSIP funding is different from projects in other programs such as ATP/STIP and SB1. The funding allocation for HSIP projects is processed through Caltrans DLA, not the CTC. b. The funding allocation request is Phase specific, i.e. Preliminary Engineering (PE), Right of Way (ROW) or Construction (CON).

For more guidance on implementing State-funded HSIP projects, please visit https://dot.ca.gov/programs/local-assistance/fed-and-state-programs/highwaysafety-improvement-program/state-funded-hsip.

4. The delivery of the HSIP Cycle 12 projects must meet the below milestones:
a. The PE phase (if applicable) must be allocated by 12/31/2025; b. The Construction (CON) phase must be allocated by 3/31/2028 (6 months may be added for projects with consultant for PE).

For HSIP project delivery requests and status of the projects, please visit https://dot.ca.gov/programs/local-assistance/fed-and-state-programs/highwaysafety-improvement-program/delivery-requirements-status-approved-projects.

5. It is the agency’s responsibility to review their project scope throughout the project delivery process and confirm that HSIP funding is used to fund the approved eligible scope as defined in your HSIP application. In case that any scope or cost change is needed, please contact your DLAE.

6. Prior to engaging in any Architectural and Engineering (A&E) contract procurement(s), agencies should reference Chapter 10 (Consultant Selection) of the Local Assistance Procedures Manual (LAPM), located at https://dot.ca.gov/programs/localassistance/guidelines-and-procedures/local-assistance-procedures-manual-lapm.

If you have any questions about your project, please feel free to contact me at 559- 981-7312, or at [email protected].

Sincerely,
Colleen Vidinoff
District Local Assistance Engineer

REVENUE UPDATE
March 19, 2025

REVENUE SOURCES
2 Sales Tax
Bradley Burns &
Measure E
Transient
Occupancy Tax
(Hotel Bed Tax)
Licensing &
Permits
Motor Vehicle
License Fee Property Taxes

GENERAL FUND
REVENUE FORECAST: FY2025
3 Property Tax $ 1,559,563 22.33%
Sales Tax $ 1,526,117 21.85%
Motor Vehicle In-Lieu $ 1,508,971 21.60%
Other Taxes $ 1,040,300 14.89%
Licenses, Permits & Fees $ 597,750 8.56%
Transfer In $ 532,419 7.62%
Other Revenue $ 190,555 2.73%
Charges for Services $ 29,430 0.42%
$ 6,985,105 100.00%
Property Tax

22.33%
Sales Tax

21.85%
Motor Vehicle
In-Lieu

21.60%
Other Taxes

14.89%
Licenses,
Permits &
Fees

8.56%
Transfer In

7.62%
Other
Revenue

2.73%
Charges for
Services

0.42%

WHERE YOUR

SALES TAXES
GO

0.1%Fresno Zoo

0.125%Public Library

0.25%County Transportation

0.5%Prop 172 - Public Safety

0.5%FCTA - Measure C
1%City - Bradley Burns
1%City - Measure E

1.5625%County Realignment

3.9375%State GF

8.975%
TOP 25 SALES TAX

REMITTERS
(ALPHABETICAL ORDER)
5 SALES TAX -

BRADLEY BURNS
*ESTIMATED
JAN-JUNE FY25

ESTIMATES PROVIDED

BY AVENU INSIGHTS &

ANALYTICS
*ESTIMATES IN RED
CITY OF KINGSBURG, CA 6
CDTFA
Collection 2020-21 2021-22 2022-23 2023-24 2024-25
Percentage
Change
July $93,373 $86,641 $92,154 $104,328 $101,670 -2.55%
August $87,436 $108,587 $115,146 $100,864 $114,627 13.65% September $132,657 $167,431 $222,439 $158,103 $165,167 4.47% 1Q Total $313,466 $362,659 $429,738 $363,295 $381,465 4.23% October $71,576 $97,414 $108,590 $102,317 $103,529 1.19% November $67,930 $109,180 $105,900 $96,950 $119,538 23.30% December $173,464 $174,525 $155,559 $171,178 $195,391 14.14% 2Q Total $312,970 $381,118 $370,049 $370,445 $418,458 12.97% January $77,426 $83,751 $103,296 $107,870 $104,100 -3.50% February $72,448 $83,365 $98,734 $88,308 $113,100 28.07% March $103,742 $214,357 $186,586 $234,597 $176,726 -24.67% 3Q Total $253,617 $381,472 $388,617 $430,776 $393,926 -9.48% April $107,993 $100,265 $96,017 $97,071 $115,500 18.99% May $88,023 $136,509 $112,333 $135,340 $121,100 -10.52% June $177,131 $177,411 $167,001 $176,552 $189,045 7.08% 4Q Total $373,147 $414,185 $375,350 $408,963 $425,645 4.08% Total $1,253,199 $1,539,434 $1,563,755 $1,573,479 $1,619,494 2.92% Annual
Variance 7.34% 22.84% 1.58% 0.62%
MEASURE E – PUBLIC SAFETY SALES TAX
 Measure E – 1% Public Safety Sales Tax
- Voter Approved (72%) in 2018
- Revenues are more diversified than the
Bradley-Burns tax. (e.g.) Includes new vehicle
purchases by Kingsburg residents.
- Full 1% for destination based online purchases
(Bradley Burns purchases are shared through
the County pool).

Initial Growth Since 2018,
Has Since Normalized
Funds both Police and
Fire Efforts

PUBLIC SAFETY SALES

TAX - MEASURE E
*ESTIMATED JAN-JUNE FY25

ESTIMATES PROVIDED BY

AVENU INSIGHTS &

ANALYTICS
*ESTIMATES IN RED
CITY OF KINGSBURG, CA 8
CDTFA
Collection 2020-21 2021-22 2022-23 2023-24 2024-25
Percentage
Change
July $152,478 $177,164 $181,214 $191,005 $174,120 -8.84% August $159,642 $202,636 $189,059 $189,707 $193,233 1.86% September $262,847 $263,444 $299,783 $309,196 $277,670 -10.20% 1Q Total $574,967 $643,245 $670,056 $689,908 $645,023 -6.51% October $123,991 $172,945 $187,168 $169,394 $190,696 12.58% November $130,010 $181,573 $177,827 $176,002 $183,466 4.24% December $300,301 $285,611 $314,793 $311,516 $304,319 -2.31% 2Q Total $554,302 $640,129 $679,788 $656,913 $678,481 3.28% January $129,781 $168,942 $184,830 $194,714 $149,800 -23.07% February $141,919 $179,202 $187,745 $184,786 $162,400 -12.11% March $261,800 $348,184 $299,491 $269,349 $309,981 15.09% 3Q Total $533,500 $696,329 $672,066 $648,849 $622,181 -4.11% April $203,883 $185,241 $193,934 $170,697 $160,600 -5.91% May $200,313 $210,825 $223,320 $202,940 $174,100 -14.21% June $246,098 $379,948 $237,798 $268,397 $332,516 23.89% 4Q Total $650,293 $776,015 $655,051 $642,033 $667,216 3.92% Total $2,313,063 $2,755,717 $2,676,961 $2,637,703 $2,612,900 -0.94% Annual Variance 21.74% 19.14% -2.86% -1.47% -0.94%

PROPERTY TAX
 An ad valorem tax imposed on real property and tangible personal property  Maximum 1% rate (Article XIIIA) of assessed value, plus voter approved rates to fund debt
 Assessed value capped at 1975-76 base year plus CPI or 2%/year, whichever is less  Property that declines in value is reassessed to the lower market value.  Reassessed to current full value upon change in ownership (with certain exemptions)
 Allocation: shared among cities, counties and school districts according to state law.

PROPERTY TAX; IN LIEU OF VEHICLE

LICENSE FEES
 Californians have paid the vehicle license fee (VLF), also called the “motor vehicle in-lieu tax,” with their vehicle registrations since 1935. The California Constitution requires the proceeds of the 0.65% VLF to go to cities and counties only and prohibits the Legislature from directing that the funds be used to pay for new state mandates on local government after 2010.
 Prior to 2004, Vehicle License Fee (VLF) revenues were collected and allocated statewide among cities and counties (per capita for cities)
 Significant financial transactions were legislated in 2003-04 and 2004-05 in order for the State to cope with severe fiscal problems. There were three main components: the Sales Tax Triple Flip, Educational Revenue Augmentation Fund (ERAF) III, and the property tax swap of motor vehicle license fees (VLF).
 In essence, the VLF swap monies can be considered a subset of property taxes collected by the city.

WHERE YOUR

PROPERTY TAX
GOES

TRANSIENT OCCUPANCY TAXES (TOT)
 The Transient Occupancy Tax (TOT) is a tax of 12% of the rent charged to transient guests in hotels/motels, including properties rented through home sharing services like Airbnb.
 The TOT is commonly known as a “bed tax”.
 Approved increase from 8% to 12% by Kingsburg voters (75.56%) November 4, 2008.

LICENSES AND FEES
Includes several regulatory collections made each year. - Business Licenses (regular and Business Improvement District) - Park Reservations
- Recreation Program Fees (Pool Programs, Rentals, etc.) - Planning and Zoning Fees (Site Plan Review, Conditional Uses) - Building Permit Fees (including plumbing, electric, PV, etc.) - Plan Check & Engineering Fees
- State mandated fee collection (construction demo, ADA, energy)

SUMMARY OF REMAINING MAJOR FUNDS
FY25 ESTIMATES IN RED
14 Fiscal Year 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 Property Taxes $1,268,261 $1,341,501 $1,403,217 $1,514,948 $1,654,973 $1,700,860 Motor Vehicle Fees $1,164,984 $1,185,675 $1,265,202 $1,359,673 $1,508,971 $1,558,312 Transient Occupancy $320,245 $349,913 $436,439 $417,970 $401,115 $405,000 Permits & Fees $1,255,920 $1,275,796 $1,374,760 $920,349 $937,231 $1,280,000 Total $4,009,410 $4,152,885 $4,479,619 $4,212,940 $4,502,290 $4,944,172 YoY 14.41% 3.58% 7.87% -5.95% 6.87% 9.81%

SUMMARY & OUTLOOK
 Most revenues trending in-line with projections (Measure E Sales Tax slightly down, Property taxes & Permit Fees trending higher)
 Fuel Sales remain a large portion of Bradley Burns revenues; projections over the next several years include reductions due to increased sales of EVs.  Property taxes showing steady increases over the past 5 years due to new housing, higher values when houses sold (less volatile revenue source).  Development-based permitting remains steady but is dependent upon economic activity (both residential and commercial).
 Economists expect consumer demand to remain subdued in 2025. Unknown impacts of possible tariffs, inflation and overall costs. Locally, biggest impact is how that may impact sales tax receipts.

QUESTIONS?
2022 City of Kingsburg, Ca 16
CalPERS Update
March 19, 2025
Pension Funding
Contributions
(Employer and
Employee, calc’d by
Actuary)
Interest Earnings
(estimated by
CalPERS – can be
extremely volatile)
What Goes into Employer Contribution Requirements
Contribution Requirements
3 Member
Information
Benefit Provisions
Calculations
Actuarial Assumptions
and Methods
$
qx
Actual Experience
Contribution
Requirements

PERS Investment History
• Financial crisis saw total funded status drop from 101% in FY07 to 61% in FY09.
• January 1, 2013 – Pension Reform (PEPRA) takes effect for all new hires. • Dec 2016 – CalPERS board lowers discount rate to 7.0%, phased in over 3 years. • FY21 – 21.3% ROI triggers automatic discount rate reduction; adds ~$85B in value, funded status jumps ~10%.
• CalPERS Board affirms/lowers discount rate to 6.8%.
• Fund loses 6.1% in FY2022; first loss since Great Recession. • CalPERS reports return of 5.8% in FY23.
• CalPERS reports initial return of 9.3% in FY24.

Preliminary total fund annualized returns for the five-year period ending June 30, 2024, is at 6.6%; the 10-year period at 6.2%; and the 20-year period at 6.7%.

Kingsburg CalPERS
Pension Plans
The City maintains six pensions plans for its employees • Classic Miscellaneous Employees
• Classic Police Safety Employees
• Classic Fire Safety Employees
• PEPRA Miscellaneous Employees
• PEPRA Safety Police Employees
• PEPRA Safety Fire Employees
Pension Reform
o CA Public Employee’s Pension Reform (PEPRA) approved in 2012, into effect 1/1/13
• Reduced benefits for new members (non-safety): 2% @ 62 • Created new maximum benefit for safety
• Lower cap of salary that is pensionable ($151,446 for 2024; $345,000 Classic) • Required employees to share equally in cost
• Disallowed Employer-Paid Member Contributions
• Required Three-Year Final Compensation Calculation (No 1-year bump) • Placed restrictions on retirees returning to work for CalPERS agency; Max. hours worked, etc.

Nearly 64% of all CalPERS active members are PEPRA members.

For Kingsburg: 74% of active members across the organization are PEPRA members.

Employer Contributions
Normal Cost
(% of Payroll)
 Normal Cost is percentage of salaries
 Designed to cover current employees cost of future retirement.  Unfunded Actuarial Liability (UAL)
 Market value of plan assets is less than the present value of accrued benefits (i.e. liability).

Total Contribution
UAL Amortization Payment
($ Amount)
Normal Costs (Payroll of Active Employees)
Employee Contributions (Normal Costs):

1. Implemented Pension Reform: All PEPRA Employees are required to pay 50% of their normal cost per law. For FY24, employee contribution rates increased 1% for MISC. and .75% for Public Safety (PEPRA employees only).

2. Police CLASSIC members are currently paying 12% of their contribution. This is the highest allowed amount without additional concessions through MOU negotiations. Safety Police normal cost per FY23 valuation is 32.05% of payroll, meaning employees pay ~37% of normal contribution rate (city pays

20.05% or 63%).

3. Fire CLASSIC members are currently paying 12% of their contribution. This is the highest allowed amount without additional concessions through future MOU negotiations. Safety Fire normal cost per FY23 valuation is 32.05% of payroll, meaning employees pay ~37% of normal contribution rate (city pays 20.05% or 63%).

4. Misc. CLASSIC members contribute ~7% of normal cost rate. MISC normal cost per FY23 valuation is ~18.87% of payroll; meaning employees pay ~37% of normal contribution rate (city pays 11.94% or 63%).
- These numbers have been shifting toward more contributions from the employer, the split had been closer to 40/60.

Unfunded Accrued Liability
UAL Annual Payment
o Calculated annually by CalPERS; difference between the accrued liability and asset values.
o Changes each year based upon actuarial factors
• Investment Return
• Mortality Rates
• Number of Retirees
o The primary drivers of UAL are increased life expectancy, investment loss, inflation, retroactive benefit design enhancements, and salary increases. o Mortgage balance with a moving target.
o Annual payments made in July of each year or monthly. Lump sum prepayment saves one month of interest (3.4%).
• Staff evaluated the possibility of making monthly payments and to keep higher balances in city investments (based upon current interest rate returns), and it still is most economical to make a lump sum payment.

5 YEAR PAYMENTS - UAL ONLY
For reference, the city’s FY17/18 payment was $428,028 in UAL payments. The FY25/26 payment of $866,241 represents a 102.38% increase in 8 years.

CALPERS UAL
FY 21/22 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 25/26 FY 25/26 FY 25/26 Plan Lump Sum ADPs Dec 27, 2021 Lump Sum Lump Sum Lump Sum Payments Lump Sum Savings-lump sum Difference from FY25 Miscellaneous $ 238,928 $ 300,000 $ 192,471 $ 182,144 $ 227,305 $ 278,932 $ 269,906 $ 9,026 $ 42,601 PEPRA Misc. $ 5,385 $ 5,891 $ - $ 3,263 $ 7,456 $ 7,215 $ 241 $ 3,952 Safety Fire $ 119,505 $ 150,000 $ 121,616 $ 119,805 $ 143,126 $ 169,104 $ 163,632 $ 5,472 $ 20,506 PEPRA Safety Fire $ 4,621 $ 5,213 $ - $ 5,199 $ 11,243 $ 10,879 $ 364 $ 5,680 Safety Police $ 298,696 $ 300,000 $ 307,581 $ 306,874 $ 355,538 $ 411,213 $ 397,907 $ 13,306 $ 42,369 PEPRA Safety Police $ 9,731 $ 10,859 $ - $ 7,981 $ 17,261 $ 16,702 $ 559 $ 8,721 Total $ 676,866 $ 750,000 $ 643,631 $ 608,823 $ 742,412 $ 895,209 $ 866,241 $ 28,968 $ 123,829 Steps to Address
Council Policy of 70% of surplus funding to be allocated to the UAL Fund
CalPERS Unfunded Accrued Liability (UAL) Fund (70%)
• Fund will be used to help pay down existing pension
liability. Council can decide to use the fund to help
stabilize future budgets, provide additional payments to lower long-term liability, or to invest in a 115 Trust.

Employee Cost Sharing
• Safety employees pay 12% of their share (9% is normal cost)
• Offsets a portion of employer costs
• Provides internal equity between bargaining groups of overall contribution percentages (CLASSIC)
Prepay UAL in July each year (lump sum)
• ~$25k savings in FY25
• ~$29K savings in FY26
Steps to Address
Additional Discretionary Payments – similar to making an additional mortgage payment on your home
Made Additional Discretionary Payment (ADP) for UAL:
• $850,000 in Oct. 2019
• $750,000 in Dec. 2021
➢Payments made from UAL waterfall account.
➢Payment made to long-term plans (largest savings)
➢$1.6M total ADPs provides estimated interest savings totaling $1.8M (including payments) over the life of required payments.
16 Next Steps…
• Await Updated June 30, 2024, Actuarial Documents (Aug. 2025). Once finalized, fiscal year performance returns are used to set contribution levels for the State of California and school districts in the 2025-26 fiscal year and for contracting counties, cities, and special districts in the 2026-27 fiscal year. • Continue to monitor CalPERS returns.
• CalPERS FY 2023-24 estimated 9.3% total fund annual investment rate of return.
• Continue to examine and potentially utilize ADPs and fund savings to offset rising contributions to avoid alterations to existing services/staffing levels.

California Public Employees’ Retirement System
Actuarial Valuation for the
Miscellaneous Plan
of the City of Kingsburg
as of June 30, 2023
(CalPERS ID: 1210886769)
(Rate Plan ID: 1347)
Required Contributions for Fiscal Year
July 1, 2025 — June 30, 2026
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
California Public Employees’ Retirement System
Plan Specific Information
for the
Miscellaneous Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 1347)
Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents — Section 1
Actuarial Certification....................................................................................................................................................................................1 Highlights and Executive Summary ..........................................................................................................................................................2 Introduction....................................................................................................................................................................................................3 Purpose of Section 1....................................................................................................................................................................................3 Summary of Key Valuation Results ...........................................................................................................................................................4 Changes Since the Prior Year’s Valuation................................................................................................................................................5 Subsequent Events.......................................................................................................................................................................................5 Liabilities and Contributions .......................................................................................................................................................................6 Determination of Required Contributions ..................................................................................................................................................7 Required Employer Contributions ..............................................................................................................................................................8 Member Contribution Rates ........................................................................................................................................................................9 Other Pooled Miscellaneous Risk Pool Rate Plans.............................................................................................................................. 10 Breakdown of Entry Age Accrued Liability............................................................................................................................................. 11 Allocation of Plan’s Share of Pool’s Experience...................................................................................................................................11 Development of the Plan’s Share of Pool’s Assets .............................................................................................................................. 11 Funded Status – Funding Policy Basis................................................................................................................................................... 12 Additional Employer Contributions .......................................................................................................................................................... 13 Projected Employer Contributions........................................................................................................................................................... 14 Schedule of Amortization Bases.............................................................................................................................................................. 15 Amortization Schedule and Alternatives ................................................................................................................................................ 17 Employer Contribution History.................................................................................................................................................................19 Funding History.......................................................................................................................................................................................... 19 Risk Analysis ................................................................................................................................................................................................ 20 Future Investment Return Scenarios...................................................................................................................................................... 21 Discount Rate Sensitivity.......................................................................................................................................................................... 22 Mortality Rate Sensitivity........................................................................................................................................................................... 22 Maturity Measures ..................................................................................................................................................................................... 23 Maturity Measures History........................................................................................................................................................................24 Funded Status – Termination Basis........................................................................................................................................................ 25 Funded Status – Low-Default-Risk Basis .............................................................................................................................................. 26 Summary of Valuation Data ......................................................................................................................................................................27 List of Class 1 Benefit Provisions ........................................................................................................................................................... 27 Plan's Major Benefit Options ....................................................................................................................................................................28 CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report, consisting of Section 1 and Section 2, is intended to be complete, our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with regard to pensions.

Actuarial Methods and Assumptions
It is our opinion that the assumptions and methods, as recommended by the Chief Actuary and adopted by the CalPERS Board of Administration, are internally consistent and reasonable for this plan.

Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are reasonable as well as the information in Section 2 of this report, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Miscellaneous Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation was based on the member and financial data as of June 30, 2023, provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.

Tony Cuny, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction 3
• Purpose of Section 1 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2023,actuarial valuation of the Miscellaneous Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2025-26.

Purpose of Section 1
This Section 1 report for the Miscellaneous Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2023. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2023; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2025,through June 30, 2026; • Determine the required member contribution rate for FY July 1, 2025,through June 30, 2026, for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2023, to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financi al reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact a CalPERS actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; changes in plan provisions or applicable law; and differences between the required contributions determined by the valuation and the actual contributions made by the agency.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and

7.8%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current post-retirement mortality assumptions adopted in 2021. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found .

Required Employer Contributions — page 8
Fiscal Year
2024-25
Fiscal Year
2025-26
Employer Normal Cost Rate 11.88% 11.94%
Unfunded Accrued Liability (UAL) Contribution Amount $234,906 $278,932 Paid either as
Option 1) 12 Monthly Payments of $19,575.50 $23,244.33
Option 2) Annual Prepayment in July $227,305 $269,906
Member Contribution Rates — page 9
Fiscal Year
2024-25
Fiscal Year
2025-26
Member Contribution Rate 7.00% 7.00%
Projected Employer Contributions — page 14
Fiscal
Year
Normal Cost
(% of payroll)
Annual
UAL Payment
2026-27 11.9% $302,000
2027-28 11.9% $320,000
2028-29 11.9% $363,000
2029-30 11.9% $371,000
2030-31 11.9% $378,000
Funded Status — Funding Policy Basis — page 12
June 30, 2022 June 30, 2023
Entry Age Accrued Liability (AL) $12,243,907 $12,833,612 Market Value of Assets (MVA) 9,271,718 9,589,834
Unfunded Accrued Liability (UAL) [AL – MVA] $2,972,189 $3,243,778 Funded Ratio [MVA ÷ AL] 75.7% 74.7%
Summary of Valuation Data — Page 27

June 30, 2022 June 30, 2023
Active Member Count 12 12
Annual Covered Payroll $839,680 $933,353
Transferred Member Count 18 16
Separated Member Count 13 14
Retired Members and Beneficiaries Count 40 41
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. For pooled rate plans, voluntary benefit changes by plan amendment are generally included in the first valuation with a valuation date on or after the effective date of the amendment.

Please refer to the Plan’s Major Benefit Options in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2023,actuarial valuation.

New Disclosure Items
In December 2021, the Actuarial Standards Board issued a revision of Actuarial Standard of Practice No. 4 (ASOP 4) requiring actuaries to disclose a low-default-risk obligation measure (LDROM) of the benefits earned. This information is shown in a new exhibit, Funded Status – Low-Default-Risk Basis.

Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2023,as well as statutory changes, regulatory changes and board actions through January 2024.

During the time period between the valuation date and the publication of this report, inflation has been higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements and downward pressure on the funded status in the June 30, 2024, valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists.

The 2023 annual benefit limit under Internal Revenue Code (IRC) section 415(b) and annual compensation limits under IRC section 401(a)(17) and Government Code section 7522.10 were used for this valuation and are assumed to increase 2.3% per year based on the price inflation assumption. The actual 2024 limits, determined in October 2023, are not reflected.

On April 16, 2024, the board took action to modify the Funding Risk Mitigation Policy to remove the automatic change to the discount rate when the investment return exceeds various thresholds. Rather than an automatic change to the discount rate, a board discussion would be placed on the calendar. The 95th percentile return in the Future Investment Return Scenarios exhibit in this report has not been modified and still reflects the projected contribution requirements associated with a reduction i n the discount rate.

To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.

Liabilities and Contributions
• Determination of Required Contributions 7
• Required Employer Contributions 8
• Member Contribution Rates 9
• Other Pooled Miscellaneous Risk Pool Rate Plans 10
• Breakdown of Entry Age Accrued Liability 11
• Allocation of Plan’s Share of Pool’s Experience 11
• Development of the Plan’s Share of Pool’s Assets 11
• Funded Status – Funding Policy Basis 12
• Additional Employer Contributions 13
• Projected Employer Contributions 14
• Schedule of Amortization Bases 15
• Amortization Schedule and Alternatives 17
• Employer Contribution History 19
• Funding History 19
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex calculations based on a set of actuarial assumptions and methods. See Appendix A in Section 2 for information on the assumptions and methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required contributions for the fiscal year that begins two years after the valuation date.

Contribution Components
Two components comprise required contributions:
• Normal Cost—expressed as a percentage of pensionable payroll • Unfunded Accrued Liability (UAL) Contribution — expressed as a dollar amount Normal Costrepresents the value of benefits allocated to the upcoming year for active employees. If all plan experience exactly matched the actuarial assumptions, normal cost would be sufficient to fully fund all benefits. The employer and employees each pay a share of the normal cost with contributions payable as part of the regular payroll reporting process. The contribution rate for Classic members is set by statute based on benefit formula whereas for PEPRA members it is based on 50% of the total normal cost.

When plan experience differs from the actuarial assumptions, unfunded accrued liability (UAL) emerges. The new UAL may be positive or negative. If the total UAL is positive (i.e., accrued liability exceeds assets), the employer is required to make contributions to pay off the UAL over time. This is called the Unfunded Accrued Liability Contribution component. There is an option to prepay this amount during July of each fiscal year, otherwise it is paid monthly.

In measuring the UAL each year, plan experience is split by source. Common sources of UAL include investment experience different than expected, non-investment experience different than expected, assumption changes and benefit changes. Each source of UAL (positive or negative) forms a base that is amortized, or paid off, over a specified period of time in accordance with the CalPERS Actuarial Amortization Policy. The Unfunded Accrued Liability Contribution is the sum of the payments on all bases. See the Schedule of Amortization Bases section of this report for an inventory of existing bases and Appendix A in Section 2 for more information on the amortization policy.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year
Required Employer Contributions 2025-26
Employer Normal Cost Rate 11.94%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount1 $278,932 Paid either as
1) Monthly Payment $23,244.33
Or
2) Annual Prepayment Option* $269,906
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) and the Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For Member Contribution Rates see the following page.

Fiscal Year Fiscal Year
Development of Normal Cost as a Percentage of Payroll 2024-25 2025-26 Base Total Normal Cost for Formula 18.81% 18.87%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Plan’s Total Normal Cost 18.81% 18.87%
Offset Due to Employee Contributions 3 6.93% 6.93%
Employer Normal Cost 11.88% 11.94%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 30, 2024.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each benefit formula, see Member Contribution Rates.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Each member contributes toward their retirement based upon the retirement formula. The standard Classic member contribution rate above the breakpoint, if any, is as described below.

Benefit Formula
Percent Contributed
above the Breakpoint
Miscellaneous, 1.5% at age 65 2%
Miscellaneous, 2% at age 60 7%
Miscellaneous, 2% at age 55 7%
Miscellaneous, 2.5% at age 55 8%
Miscellaneous, 2.7% at age 55 8%
Miscellaneous, 3% at age 60 8%
Auxiliary organizations of the CSU system may elect reduced contribution rates for Miscellaneous members, in which case the contribution rate above the breakpoint is 6% if members are not covered by Social Security an d 5% if they are.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 10 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 1347. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consid er contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the total employer payroll within the Miscellaneous Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.

Fiscal Year Fiscal Year
Estimated Employer Contributions for all Pooled Miscellaneous Rate Plans 2024-25 2025-26 Projected Payroll for the Contribution Year $2,102,915 $2,462,989 Estimated Employer Normal Cost $197,560 $231,102
Required Payment on Amortization Bases $238,278 $286,388 Estimated Total Employer Contributions $435,838 $517,490 Estimated Total Employer Contribution Rate (illustrative only) 20.72% 21.01% CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 11 Breakdown of Entry Age Accrued Liability
Active Members $3,316,127
Transferred Members 727,020
Separated Members 197,161
Members and Beneficiaries Receiving Payments 8,593,304
Total $12,833,612
Allocation of Plan’s Share of Pool’s Experience
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assum ption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $12,833,612

2. Projected UAL Balance at 6/30/2023 2,983,421

3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0

4. Adjusted UAL Balance at 6/30/2023 for Asset Share 2,983,421

5. Pool’s Accrued Liability1 23,349,910,053

6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20231 5,227,602,209

7. Pool’s 2022-23 Investment (Gain)/Loss1 114,855,623

8. Pool’s 2022-23 Non-Investment (Gain)/Loss1 360,116,330

9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 62,429

10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 197,928

11. Plan’s New (Gain)/Loss as of 6/30/2023:(9) + (10) 260,357

12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0

13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0

14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0

15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0

16. Offset due to Funding Risk Mitigation 0

17. Plan’s Investment (Gain)/Loss: (9) – (16) 62,429
1 Does not include plans that transferred to the pool on the valuation date.

Development of the Plan’s Share of Pool’s Assets

18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $3,243,778

19. Plan’s Share of Pool’s Market Value of Assets (MVA): (1) - (18) $9,589,834 For a reconciliation of the pool’s Market Value of Assets (MVA), information on the fund’s asset allocation and a history of CalPERS investment returns, see Section 2, which can be found on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valua tion date.

The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an ab solute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.

A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments tow ard the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.

Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual average future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to ful ly fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustra tive purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:

The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded sta tus that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.

June 30, 2022 June 30, 2023

1. Present Value of Benefits $13,588,139 $14,292,599

2. Entry Age Accrued Liability 12,243,907 12,833,612

3. Market Value of Assets (MVA) 9,271,718 9,589,834

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $2,972,189 $3,243,778

5. Funded Ratio [(3) ÷ (2)] 75.7% 74.7%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%

1. Entry Age Accrued Liability $14,518,740 $12,833,612 $11,448,507

2. Market Value of Assets (MVA) 9,589,834 9,589,834 9,589,834

3. Unfunded Accrued Liability (UAL) [(1) – (2)] $4,928,906 $3,243,778 $1,858,673

4. Funded Ratio [(2) ÷ (1)] 66.1% 74.7% 83.8%
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Additional Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2025-26 is $278,932. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time. These optional payments serve to reduce the UAL and future required contributions and can result in significant long -term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during FY 2025-26 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see Amortization Schedule and Alternatives . Agencies considering making an ADP should contact CalPERS for additional information.

The calculations above are based on the projected UAL as of June 30, 2025,as determined in the June 30, 2023, actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions, and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.

Fiscal
Year ADP FiscalYear ADP
2019-20 $300,000 2022-23 $0
2020-21 $0 2023-242 $0
2021-22 $300,000
2 Excludes payments made after April 30, 2024
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 14 Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2023-24 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2023-24 and Beyond) Fiscal Year 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Rate Plan 1347 Results
Normal Cost % 11.94% 11.9% 11.9% 11.9% 11.9% 11.9%
UAL Payment $278,932 $302,000 $320,000 $363,000 $371,000 $378,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see Amortization of Unfunded Actuarial Accrued Liability in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the Future Investment Return Scenarios exhibit. Our online pension plan projection tool, Pension Outlook, is available in the Employers section of the CalPERS website.

Pension Outlook can help plan and budget pension costs under various scenarios.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 15 Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities and funded status of the plan are measured as of the valuation date: June 30, 2023. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: FY 2025-26.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for FY 2023-24 is based on the actuarial valuation two years ago, adjusted for additional discretionary payments made on or before April 30, 2024, if necessary, and the expected payment for FY 2024-25 is based on the actuarial valuation one year ago.

Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Side Fund
2013 or
Prior No Ramp 2.80% 0 (59) (61) 0 0 0 0
Investment (Gain)/Loss 6/30/13 100% Up/Dn 2.80% 20 993,883 72,138 986,917 74,158 977,389 76,235 Non-Investment (Gain)/Loss 6/30/13 100% Up/Dn 2.80% 20 (9,996) (726) (9,925) (746) (9,829) (767) Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.80% 12 590,439 55,203 573,540 56,748 553,895 58,337 Assumption Change 6/30/14 100% Up/Dn 2.80% 11 437,789 49,557 416,344 50,944 392,008 52,371 Investment (Gain)/Loss 6/30/14 100% Up/Dn 2.80% 21 (796,868) (56,003) (793,179) (57,571) (787,619) (59,183) Non-Investment (Gain)/Loss 6/30/14 100% Up/Dn 2.80% 21 885 62 881 64 875 66 Investment (Gain)/Loss 6/30/15 100% Up/Dn 2.80% 22 506,645 34,551 505,390 35,518 503,051 36,513 Non-Investment (Gain)/Loss 6/30/15 100% Up/Dn 2.80% 22 (41,684) (2,843) (41,580) (2,922) (41,388) (3,004) Assumption Change 6/30/16 100% Up/Dn 2.80% 13 179,353 17,786 173,168 18,284 166,048 18,796 Investment (Gain)/Loss 6/30/16 100% Up/Dn 2.80% 23 36,326 2,409 36,307 2,476 36,217 2,545 Non-Investment (Gain)/Loss 6/30/16 100% Up/Dn 2.80% 23 (78,222) (5,186) (78,182) (5,332) (77,988) (5,481) Assumption Change 6/30/17 100% Up/Dn 2.80% 14 211,376 19,803 205,284 20,358 198,205 20,928 Investment (Gain)/Loss 6/30/17 100% Up/Dn 2.80% 24 (324,464) (20,953) (324,874) (21,540) (324,705) (22,143) Non-Investment (Gain)/Loss 6/30/17 100% Up/Dn 2.80% 24 (16,993) (1,097) (17,015) (1,128) (17,006) (1,160) Assumption Change 6/30/18 100% Up/Dn 2.80% 15 356,394 25,807 353,959 33,162 343,757 34,090 Investment (Gain)/Loss 6/30/18 100% Up/Dn 2.80% 25 (101,852) (5,197) (103,407) (6,678) (103,537) (6,865) Method Change 6/30/18 100% Up/Dn 2.80% 15 97,894 7,089 97,225 9,109 94,423 9,364 Non-Investment (Gain)/Loss 6/30/18 100% Up/Dn 2.80% 0 1 1 0 0 0 0 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 16 45,279 4,293 43,921 4,293 42,471 4,293 CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 16 Schedule of Amortization Bases (continued)
Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Investment (Gain)/Loss 6/30/19 100% Up Only 0.00% 16 47,671 2,866 47,951 3,822 47,262 4,777 Investment (Gain)/Loss 6/30/20 80% Up Only 0.00% 17 233,423 9,595 239,380 14,393 240,784 19,191 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 17 38,687 3,568 37,630 3,568 36,502 3,568 Assumption Change 6/30/21 No Ramp 0.00% 18 53,964 4,853 52,618 4,853 51,181 4,853 Net Investment (Gain) 6/30/21 60% Up Only 0.00% 18 (1,135,588) (24,409) (1,187,583) (48,818) (1,217,888) (73,227) Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 18 (54,172) (4,871) (52,822) (4,871) (51,380) (4,871) Risk Mitigation 6/30/21 No Ramp 0.00% 0 334,322 345,502 0 0 0 0 Risk Mitigation Offset 6/30/21 No Ramp 0.00% 0 (334,322) (345,502) 0 0 0 0 Investment (Gain)/Loss 6/30/22 40% Up Only 0.00% 19 1,529,535 0 1,633,543 35,113 1,708,337 70,225 Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 19 183,775 0 196,272 17,649 191,379 17,649 Investment (Gain)/Loss 6/30/23 20% Up Only 0.00% 20 62,429 0 66,674 0 71,208 1,531 Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 20 197,928 0 211,387 0 225,761 20,301 Total 3,243,778 188,235 3,269,824 234,906 3,249,413 278,932 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in Allocation of Plan’s Share of Pool’s Experience earlier in this report. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 17 Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded lia bility payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact a CalPERS actuary.

The current amortization schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future year s, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.

The current amortization schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario ari se in any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Policy.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 18 Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 15 Year Amortization 10 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2025 3,249,413 278,932 3,249,413 340,875 3,249,413 443,543 6/30/2026 3,182,113 301,865 3,118,099 340,875 3,011,998 443,543 6/30/2027 3,086,537 320,158 2,977,856 340,875 2,758,438 443,543 6/30/2028 2,965,556 363,032 2,828,076 340,876 2,487,636 443,543 6/30/2029 2,792,041 370,969 2,668,110 340,875 2,198,420 443,543 6/30/2030 2,598,522 377,560 2,497,267 340,875 1,889,537 443,543 6/30/2031 2,385,034 384,328 2,314,807 340,876 1,559,650 443,543 6/30/2032 2,150,036 378,582 2,119,939 340,876 1,207,331 443,543 6/30/2033 1,904,996 372,319 1,911,820 340,876 831,054 443,543 6/30/2034 1,649,765 360,695 1,689,549 340,876 429,190 443,542 6/30/2035 1,389,193 342,716 1,452,163 340,875
6/30/2036 1,129,481 311,781 1,198,636 340,875
6/30/2037 884,079 212,278 927,869 340,876
6/30/2038 724,820 190,602 638,689 340,875
6/30/2039 577,133 173,187 329,846 340,876
6/30/2040 437,402 161,084
6/30/2041 300,673 129,242
6/30/2042 187,556 96,530
6/30/2043 100,554 103,917
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 5,229,777 5,113,132 4,435,429
Interest Paid 1,980,364 1,863,719 1,186,016
Estimated Savings 116,645 794,348
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 19 Employer Contribution History
The table below provides a recent history of the employer contribution requirements for the plan, as determined by the annual actuarial valuation.Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected. [
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2014 2016 - 17 8.377% $121,132
06/30/2015 2017 - 18 8.418% 141,952
06/30/2016 2018 - 19 8.892% 172,062
06/30/2017 2019 - 20 9.680% 204,262
06/30/2018 2020 - 21 10.484% 228,972
06/30/2019 2021 - 22 10.34% 247,149
06/30/2020 2022 - 23 10.32% 218,363
06/30/2021 2023 - 24 11.84% 188,235
06/30/2022 2024 - 25 11.88% 234,906
06/30/2023 2025 - 26 11.94% 278,932
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $8,535,818 $7,002,321 $1,533,497 82.0% $1,101,402 06/30/2015 8,902,740 6,993,380 1,909,360 78.6% 1,167,387 06/30/2016 9,177,231 6,676,215 2,501,016 72.7% 915,930
06/30/2017 9,649,186 7,186,597 2,462,589 74.5% 800,536
06/30/2018 10,435,403 7,620,771 2,814,632 73.0% 926,700 06/30/2019 10,837,660 7,909,737 2,927,923 73.0% 954,655 06/30/2020 11,114,874 8,270,678 2,844,196 74.4% 814,085 06/30/2021 11,746,104 9,949,216 1,796,888 84.7% 914,698 06/30/2022 12,243,907 9,271,718 2,972,189 75.7% 839,680 06/30/2023 12,833,612 9,589,834 3,243,778 74.7% 933,353 Risk Analysis
• Future Investment Return Scenarios 21
• Discount Rate Sensitivity 22
• Mortality Rate Sensitivity 22
• Maturity Measures 23
• Maturity Measures History 24
• Funded Status – Termination Basis 25
• Funded Status – Low-Default-Risk Basis 26
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below refle ct the impact of the CalPERS Funding Risk Mitigation Policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

The first table shows projected contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alter nate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the 20-year period ending June 30, 2043.

Assumed Annual Return
FY 2023-24
through FY 2042-43
Projected Employer Contributions
2026-27 2027-28 2028-29 2029-30 2030-31

3.0% (5th percentile)
Discount Rate 6.80% 6.80% 6.80% 6.80% 6.80%
Normal Cost Rate 11.9% 11.9% 11.9% 11.9% 11.9%
UAL Contribution $311,000 $347,000 $417,000 $462,000 $516,000

10.8% (95th percentile)
Discount Rate 6.75% 6.70% 6.65% 6.60% 6.55%
Normal Cost Rate 12.2% 12.4% 12.7% 12.9% 13.2%
UAL Contribution $294,000 $295,000 $312,000 $285,000 $244,000 Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16% probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.

The following table shows the effect of one and two standard deviation investment losses in FY 2023-24 on the FY 2026-27 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historical ly, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2026-27.

Assumed Annual Return for
Fiscal Year 2023-24
Required
Employer
Contributions
Projected
Employer
Contributions
2025-26 2026-27
(17.2%) (2 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 11.94% 11.9%
UAL Contribution $278,932 $358,000
(5.2%) (1 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 11.94% 11.9%
UAL Contribution $278,932 $330,000
• Without investment gains (returns higher than 6.8%) in FY 2024-25 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2023-24.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2026-27 as well as to model other investment return scenarios .

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of

6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they il lustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2023
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 23.75% 18.87% 15.16%
b) Accrued Liability $14,518,740 $12,833,612 $11,448,507 c) Market Value of Assets $9,589,834 $9,589,834 $9,589,834 d) Unfunded Liability/(Surplus) [(b) - (c)] $4,928,906 $3,243,778 $1,858,673 e) Funded Ratio 66.1% 74.7% 83.8%
Sensitivity to the Price Inflation Assumption
As of June 30, 2023
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 19.78% 18.87% 17.22%
b) Accrued Liability $13,288,073 $12,833,612 $11,924,677 c) Market Value of Assets $9,589,834 $9,589,834 $9,589,834 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,698,239 $3,243,778 $2,334,843 e) Funded Ratio 72.2% 74.7% 80.4%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023,plan costs and funded status under two different longevity scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.

As of June 30, 2023
10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 19.19% 18.87% 18.57%
b) Accrued Liability $13,098,812 $12,833,612 $12,590,221 c) Market Value of Assets $9,589,834 $9,589,834 $9,589,834 d) Unfunded Liability/(Surplus) [(b) - (c)] $3,508,978 $3,243,778 $3,000,387 e) Funded Ratio 73.2% 74.7% 76.2%
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Maturity Measures
As pension plans mature they become more sensitive to risks .Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions.

Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a ve ry low ratio of retiree liability to total liability. As the plan matures, the ratio increases. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2022 June 30, 2023

1. Retiree Accrued Liability $8,558,327 $8,593,304

2. Total Accrued Liability $12,243,907 $12,833,612

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 70% 67%
Another measure of the maturity level of CalPERS and its plans is the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.

For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2022, was 0.77 and was calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plan s, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.

Support Ratio June 30, 2022 June 30, 2023

1. Number of Actives 12 12

2. Number of Retirees 40 41

3. Support Ratio [(1) ÷ (2)] 0.30 0.29
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary increases, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll. Plans that have a higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with an AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with an AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll. Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2022 June 30, 2023

1. Market Value of Assets $9,271,718 $9,589,834

2. Payroll $839,680 $933,353

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 11.0 10.3

4. Accrued Liability $12,243,907 $12,833,612

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 14.6 13.8 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 58% 0.44 9.0 12.1
06/30/2018 56% 0.44 8.2 11.3
06/30/2019 56% 0.43 8.3 11.4
06/30/2020 65% 0.35 10.2 13.7
06/30/2021 65% 0.37 10.9 12.8
06/30/2022 70% 0.30 11.0 14.6
06/30/2023 67% 0.29 10.3 13.8
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The accrued liability on a termination basis (termination liability) is calculated differently from the plan’s ongoing funding liability. For the termination liability calculation, both compensation and servi ce are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an empl oyer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool.

The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit security for members is increased while limiting the funding risk.

However, this asset allocation has a lower expected rate of return than the remainder of the PERF and consequently, a lower discount rate assumption. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the following analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as shown below.

Valuation 20-Year Valuation 20-Year
Date Treasury Rate Date Treasury Rate
06/30/2014 3.08% 06/30/2019 2.31%
06/30/2015 2.83% 06/30/2020 1.18%
06/30/2016 1.86% 06/30/2021 2.00%
06/30/2017 2.61% 06/30/2022 3.38%
06/30/2018 2.91% 06/30/2023 4.06%
As Treasury rates are variable, the table below shows a range for the termination liability using discount rates 1% below and above the 20-year Treasury rate on the valuation date. The price inflation assumption is the 20-year Treasury breakeven inflation rate, that is, the difference between the 20-year inflation indexed bond and the 20-year fixed-rate bond.

The Market Value of Assets (MVA) also varies with interest rates and will fluctuate depending on other market conditions on the date of termination. Since it is not possible to approximate how the MVA will change in different interest rate environments, the results below use the MVA as of the valuation date.

Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $20,817,316 $15,505,771

2. Market Value of Assets (MVA) 9,589,834 9,589,834

3. Unfunded Termination Liability [(1) – (2)] $11,227,482 $5,915,937

4. Funded Ratio [(2) ÷ (1)] 46.1% 61.8%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report.

In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow a CalPERS actuary to provide a preliminary termination valuation with a more up -to-date estimate of the plan’s assets and liabilities. Before beginning this process, please consult with a CalPERS actuary.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 26 Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date using a discount rate based on the yields of high quality fixed income securities wi th cash flows that replicate expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial characteristics to accrued plan costs.

As permitted in ASOP No. 4, the Actuarial Office uses the Entry Age Actuarial Cost Method to calculate the LDROM. This methodology is in line with the measure of “benefit entitlements” calculated by the Bureau of Economic Analysis and used by the Federal Reserve to report the indebtedness due to pensions of plan sponsors and, conversely, the household wealth due to pensions of plan members.

As shown below, the discount rate used for the LDROM is 4.82%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2023, net of assumed administrative expenses.

Selected Measures on a Low-Default-Risk Basis June 30, 2023 Discount Rate 4.82%

1. Accrued Liability2 – Low-Default-Risk Basis (LDROM)
a) Active Members $4,530,261
b) Transferred Members 1,180,096
c) Separated Members 270,369
d) Members and Beneficiaries Receiving Payments 10,572,184 e) Total $16,552,910

2. Market Value of Assets (MVA) 9,589,834

3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $6,963,076

4. Unfunded Accrued Liability – Funding Policy Basis 3,243,778

5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $3,719,298 The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued p lan costs at the levels anticipated by the funding policy.

Benefit security for members of the plan relies on a combination of the assets in the plan, the investment income generated from those assets, and the ability of the plan sponsor to make necessary future contributions. If future returns fall short of 6.8%, benefit security could be at risk without higher than currently anticipated future contributions.

The funded status on a low-default-risk basis is not appropriate for assessing the sufficiency of plan assets to cover the cost of settling the plan’s benefit obligations (see Funded Status – Termination Basis), nor is it appropriate for assessing the need for future contributions (see Funded Status – Funding Policy Basis). 1 This index is based on a yield curve of hypothetical AA-rated zero coupon corporate bonds whose maturities range from 6 months to 30 years. The index represents the single discount rate that w ould produce the same present value as discounting a standardized set of liability cash flow s for a fully open pension plan using the yield curve. The liability cash flows are reasonably consistent with the pattern of benefits expected to be paid from the entire Public Employees’ Retirement Fund for current and former plan members. A different index, hence a different discount rate, may be needed to measure the LDROM for a subset of the fund, such as a single rate plan or a group of retirees. 2 If plan assets w ere invested entirely in the AA fixed income securities used to determine the discount rate of 4.82%, the CalPERS discount rate could, at various times, be below 4.5% or 5.25%, and some automatic annual retiree COLAs could be suspended (Gov. Code sections 21329 and 21335). Since there is currently no proposal to adopt an asset allocation entirely comprised of fixed income securities, the automatic COLAs have been fully valued in the measures above based on the assumptions used for plan funding. Removing future COLAs from the measurement w ould understate the statutory obligation.

CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 27 Summary of Valuation Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2022 June 30, 2023
Active Members
Counts 12 12
Average Attained Age 50.8 51.8
Average Entry Age to Rate Plan 36.5 36.5
Average Years of Credited Service 14.6 15.6
Average Annual Covered Pay $69,973 $77,779
Annual Covered Payroll $839,680 $933,353
Present Value of Future Payroll $7,011,683 $7,553,332
Transferred Members 18 16
Separated Members 13 14
Retired Members and Beneficiaries*
Counts 40 41
Average Annual Benefits $16,649 $16,651
Total Annual Benefits $665,962 $682,693
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. * Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the following Class 1 Benefit Provisions:
• None
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 28 ends

Plan's Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in Section 2.

Benefit Group
Member Category Misc Misc
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 100555 207855
Benefit Provision
Benefit Formula 2% @ 55
Social Security Coverage Yes
Full/Modified Modified
Employee Contribution Rate 7.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2,000 $2,000
Survivor Allowance (PRSA) No No
COLA 2% 2%
CalPERS Actuarial Valuation - June 30, 2023
Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 29 Section 2
California Public Employees’ Retirement System
Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms & Publications section
California Public Employees’ Retirement System
Actuarial Valuation for the
PEPRA Miscellaneous Plan
of the City of Kingsburg
as of June 30, 2023
(CalPERS ID: 1210886769)
(Rate Plan ID: 26913)
Required Contributions for Fiscal Year
July 1, 2025 — June 30, 2026
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
California Public Employees’ Retirement System
Plan Specific Information
for the
PEPRA Miscellaneous Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 26913)
Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents — Section 1
Actuarial Certification....................................................................................................................................................................................1 Highlights and Executive Summary ..........................................................................................................................................................2 Introduction....................................................................................................................................................................................................3 Purpose of Section 1....................................................................................................................................................................................3 Summary of Key Valuation Results ...........................................................................................................................................................4 Changes Since the Prior Year’s Valuation................................................................................................................................................5 Subsequent Events.......................................................................................................................................................................................5 Liabilities and Contributions .......................................................................................................................................................................6 Determination of Required Contributions ..................................................................................................................................................7 Required Employer Contributions ..............................................................................................................................................................8 Member Contribution Rates ........................................................................................................................................................................9 Other Pooled Miscellaneous Risk Pool Rate Plans.............................................................................................................................. 10 Breakdown of Entry Age Accrued Liability............................................................................................................................................. 11 Allocation of Plan’s Share of Pool’s Experience...................................................................................................................................11 Development of the Plan’s Share of Pool’s Assets .............................................................................................................................. 11 Funded Status – Funding Policy Basis................................................................................................................................................... 12 Additional Employer Contributions .......................................................................................................................................................... 13 Projected Employer Contributions........................................................................................................................................................... 14 Schedule of Amortization Bases.............................................................................................................................................................. 15 Amortization Schedule and Alternatives ................................................................................................................................................ 16 Employer Contribution History.................................................................................................................................................................18 Funding History.......................................................................................................................................................................................... 18 Risk Analysis ................................................................................................................................................................................................ 19 Future Investment Return Scenarios...................................................................................................................................................... 20 Discount Rate Sensitivity.......................................................................................................................................................................... 21 Mortality Rate Sensitivity........................................................................................................................................................................... 21 Maturity Measures ..................................................................................................................................................................................... 22 Maturity Measures History........................................................................................................................................................................23 Funded Status – Termination Basis........................................................................................................................................................ 24 Funded Status – Low-Default-Risk Basis .............................................................................................................................................. 25 Summary of Valuation Data ......................................................................................................................................................................26 List of Class 1 Benefit Provisions ........................................................................................................................................................... 26 Plan's Major Benefit Options ....................................................................................................................................................................27 CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 1 Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report, consisting of Section 1 and Section 2, is intended to be complete, our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with regard to pensions.

Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are reasonable as well as the information in Section 2 of this report, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Miscellaneous Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation was based on the member and financial data as of June 30, 2023, provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced.Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Miscellaneous Risk Pool to which the plan belongs.

Tony Cuny, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction 3
• Purpose of Section 1 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 3 Introduction
This report presents the results of the June 30, 2023,actuarial valuation of the PEPRA Miscellaneous Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2025-26.

Purpose of Section 1
This Section 1 report for the PEPRA Miscellaneous Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2023. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2023; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2025,through June 30, 2026; • Determine the required member contribution rate for FY July 1, 2025,through June 30, 2026, for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2023, to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 4 Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found .

Required Employer Contributions — page 8
Fiscal Year
2024-25
Fiscal Year
2025-26
Employer Normal Cost Rate 7.87% 7.96%
Unfunded Accrued Liability (UAL) Contribution Amount $3,372 $7,456 Paid either as
Option 1) 12 Monthly Payments of $281.00 $621.33
Option 2) Annual Prepayment in July $3,263 $7,215
Member Contribution Rates — page 9
Fiscal Year
2024-25
Fiscal Year
2025-26
Member Contribution Rate 7.75% 7.75%
Projected Employer Contributions — page 14
Fiscal
Year
Normal Cost
(% of payroll)
Annual
UAL Payment
2026-27 8.0% $9,800
2027-28 8.0% $12,000
2028-29 8.0% $15,000
2029-30 8.0% $15,000
2030-31 8.0% $15,000
Funded Status — Funding Policy Basis — page 12
June 30, 2022 June 30, 2023
Entry Age Accrued Liability (AL) $797,447 $1,080,342
Market Value of Assets (MVA) 702,030 948,717
Unfunded Accrued Liability (UAL) [AL – MVA] $95,417 $131,625 Funded Ratio [MVA ÷ AL] 88.0% 87.8%
Summary of Valuation Data — Page 26

June 30, 2022 June 30, 2023
Active Member Count 18 20
Annual Covered Payroll $1,096,040 $1,333,811
Transferred Member Count 2 4
Separated Member Count 7 7
Retired Members and Beneficiaries Count 0 0
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 5 Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. For pooled rate plans, voluntary benefit changes by plan amendment are generally included in the first valuation with a valuation date on or after the effective date of the amendment.

Please refer to the Plan’s Major Benefit Options in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2023,actuarial valuation.

Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2023,as well as statutory changes, regulatory changes and board actions through January 2024.

During the time period between the valuation date and the publication of this report, inflation has been higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements a nd downward pressure on the funded status in the June 30, 2024, valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists.

To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.

Liabilities and Contributions
• Determination of Required Contributions 7
• Required Employer Contributions 8
• Member Contribution Rates 9
• Other Pooled Miscellaneous Risk Pool Rate Plans 10
• Breakdown of Entry Age Accrued Liability 11
• Allocation of Plan’s Share of Pool’s Experience 11
• Development of the Plan’s Share of Pool’s Assets 11
• Funded Status – Funding Policy Basis 12
• Additional Employer Contributions 13
• Projected Employer Contributions 14
• Schedule of Amortization Bases 15
• Amortization Schedule and Alternatives 16
• Employer Contribution History 18
• Funding History 18
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 7 Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex calculations based on a set of actuarial assumptions and methods. See Appendix A in Section 2 for information on the assumptions and methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required contributions for the fiscal year that begins two years after the valuation date.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 8 Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year
Required Employer Contributions 2025-26
Employer Normal Cost Rate 7.96%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount1 $7,456 Paid either as
1) Monthly Payment $621.33
Or
2) Annual Prepayment Option* $7,215
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) and the Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For Member Contribution Rates see the following page.

Fiscal Year Fiscal Year
Development of Normal Cost as a Percentage of Payroll 2024-25 2025-26 Base Total Normal Cost for Formula 15.62% 15.71%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Plan’s Total Normal Cost 15.62% 15.71%
Offset Due to Employee Contributions 3 7.75% 7.75%
Employer Normal Cost 7.87% 7.96%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 30, 2024.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each benefit formula, see Member Contribution Rates.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 9 Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

The California Public Employees’ Pension Reform Act of 2013 (PEPRA) established new benefit formulas, final compensation period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost rate for the plan is dependent on the benefit levels, actuarial assumptions and demographics of the risk pool, particularly members’ entry age. Should the total normal cost rate of the plan change by more than 1% from the base total normal cost rate established for the plan, the new member rate shall be 50% of the new normal cost rate rounded to the nearest quarter percent.

The table below shows the determination of the PEPRA member contribution rates effective July 1, 2025, based on 50% of the total normal cost rate as of the June 30, 2023, valuation.

Basis for Current Rate Rates Effective July 1, 2025
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost Change
Change
Needed
Member
Rate
26913 Miscellaneous PEPRA Level 15.43% 7.75% 15.71% 0.28% No 7.75% CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 10 Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 26913.In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consid er contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates fo r all of the employer’s rate plans in the Miscellaneous Risk Pool are shown below and assume that the total employer payroll within the Miscellaneous Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.

Fiscal Year Fiscal Year
Estimated Employer Contributions for all Pooled Miscellaneous Rate Plans 2024-25 2025-26 Projected Payroll for the Contribution Year $2,102,915 $2,462,989 Estimated Employer Normal Cost $197,560 $231,102
Required Payment on Amortization Bases $238,278 $286,388 Estimated Total Employer Contributions $435,838 $517,490 Estimated Total Employer Contribution Rate (illustrative only) 20.72% 21.01% CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 11 Breakdown of Entry Age Accrued Liability
Active Members $1,031,734
Transferred Members 23,305
Separated Members 25,303
Members and Beneficiaries Receiving Payments 0
Total $1,080,342
Allocation of Plan’s Share of Pool’s Experience
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assum ption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $1,080,342

2. Projected UAL Balance at 6/30/2023 108,806

3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0

4. Adjusted UAL Balance at 6/30/2023 for Asset Share 108,806

5. Pool’s Accrued Liability1 23,349,910,053

6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20231 5,227,602,209

7. Pool’s 2022-23 Investment (Gain)/Loss1 114,855,623

8. Pool’s 2022-23 Non-Investment (Gain)/Loss1 360,116,330

9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 6,157

10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 16,662

11. Plan’s New (Gain)/Loss as of 6/30/2023:(9) + (10) 22,819

12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0

13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0

14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0

15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0

16. Offset due to Funding Risk Mitigation 0

17. Plan’s Investment (Gain)/Loss: (9) – (16) 6,157
1 Does not include plans that transferred to the pool on the valuation date.

Development of the Plan’s Share of Pool’s Assets

18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $131,625

19. Plan’s Share of Pool’s Market Value of Assets (MVA): (1) - (18) $948,717 For a reconciliation of the pool’s Market Value of Assets (MVA), information on the fund’s asset allocation and a history of CalPERS investment returns, see Section 2, which can be found on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 12 Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valuation date.

The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.

A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.

Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual a verage future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:

The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.

June 30, 2022 June 30, 2023

1. Present Value of Benefits $2,576,431 $3,221,973

2. Entry Age Accrued Liability 797,447 1,080,342

3. Market Value of Assets (MVA) 702,030 948,717

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $95,417 $131,625

5. Funded Ratio [(3) ÷ (2)] 88.0% 87.8%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%

1. Entry Age Accrued Liability $1,361,376 $1,080,342 $864,425

2. Market Value of Assets (MVA) 948,717 948,717 948,717

3. Unfunded Accrued Liability (UAL) [(1) – (2)] $412,659 $131,625 ($84,292)

4. Funded Ratio [(2) ÷ (1)] 69.7% 87.8% 109.8%
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 13 Additional Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2025-26 is $7,456. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time. These optional payments serve to reduce the UAL and future required contributions and can result in significant long -term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Fiscal Year 2025-26 Employer Contributions — Illustrative Scenarios Funding Approach Estimated
Normal Cost
Minimum UAL
Contribution ADP1 Total UAL Contribution
Estimated Total
Contribution
Minimum required only $125,958 $7,456 0 $7,456 $133,414 20 year funding horizon $125,958 $7,456 $5,731 $13,187 $139,145 15 year funding horizon $125,958 $7,456 $7,928 $15,384 $141,342 10 year funding horizon $125,958 $7,456 $12,562 $20,018 $145,976 5 year funding horizon $125,958 $7,456 $26,968 $34,424 $160,382 The minimum required contribution above is less than interest on the UAL. With no ADP the UAL is projected to increase over the following year. If the minimum UAL payment were split between interest and principal, the principal portion would be negative. This situation is referred to as negative amortization. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2026-27, as shown in the Amortization Schedule and Alternatives section of the report (see columns labeled Current Amortization Schedule).

Fiscal Year 2025-26 Employer Contribution Necessary to Avoid Negative Amortization Estimated
Normal Cost
Minimum UAL
Contribution
ADP1 Total UAL
Contribution
Estimated Total
Contribution
$125,958 $7,456 $2,194 $9,650 $135,608
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount show n to have the same effect on the UAL amortization.

The calculations above are based on the projected UAL as of June 30, 2025,as determined in the June 30, 2023, actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions, and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of year s will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.

Fiscal
Year ADP FiscalYear ADP
2019-20 $0 2022-23 $0
2020-21 $0 2023-242 $0
2021-22 $0
2 Excludes payments made after April 30, 2024
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 14 Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2023-24 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2023-24 and Beyond) Fiscal Year 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Rate Plan 26913 Results
Normal Cost % 7.96% 8.0% 8.0% 8.0% 8.0% 8.0%
UAL Payment $7,456 $9,800 $12,000 $15,000 $15,000 $15,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see Amortization of Unfunded Actuarial Accrued Liability in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

The required contribution for FY 2025-26 is less than interest on the UAL, a situation referred to as negative amortization, as explained in the Additional Employer Contributions section earlier in this report. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2026-27, as shown in the Amortization Schedule and Alternatives section of the report (see columns labelled “Current Amortization Schedule”).

Pension Outlook can help plan and budget pension costs under various scenarios.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 15 Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities and funded status of the plan are measured as of the valuation date: June 30, 2023. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the val uation date: FY 2025-26.

Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 19 11,969 0 12,783 1,149 12,465 1,150 Partial Fresh Start 6/30/22 40% Up Only 0.00% 19 96,837 0 103,422 2,223 108,157 4,446 Investment (Gain)/Loss 6/30/23 20% Up Only 0.00% 20 6,157 0 6,576 0 7,023 151 Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 20 16,662 0 17,795 0 19,005 1,709 Total 131,625 0 140,576 3,372 146,650 7,456
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in Allocation of Plan’s Share of Pool’s Experience earlier in this report. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 16 Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting th e individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact a CalPERS actuary.

The current amortization schedule typically contains both pos itive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future year s, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

The current amortization schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 17 Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 20 Year Amortization 15 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2025 146,650 7,456 146,650 13,187 146,650 15,384
6/30/2026 148,917 9,829 142,994 13,187 140,724 15,384
6/30/2027 148,885 12,204 139,090 13,187 134,395 15,384
6/30/2028 146,397 14,577 134,920 13,187 127,635 15,384
6/30/2029 141,288 14,729 130,467 13,187 120,416 15,384
6/30/2030 135,675 14,729 125,711 13,188 112,706 15,384
6/30/2031 129,680 14,729 120,630 13,187 104,472 15,384
6/30/2032 123,276 14,728 115,205 13,188 95,678 15,385
6/30/2033 116,438 14,728 109,410 13,187 86,285 15,385
6/30/2034 109,135 14,728 103,222 13,188 76,253 15,384
6/30/2035 101,335 14,729 96,612 13,187 65,540 15,385
6/30/2036 93,004 14,728 89,554 13,188 54,097 15,384
6/30/2037 84,108 14,727 82,015 13,188 41,877 15,385
6/30/2038 74,608 14,729 73,963 13,188 28,825 15,384
6/30/2039 64,460 14,729 65,363 13,187 14,887 15,385
6/30/2040 53,622 14,728 56,180 13,187
6/30/2041 42,047 14,728 46,372 13,188
6/30/2042 29,686 14,729 35,896 13,187
6/30/2043 16,482 14,726 24,709 13,187
6/30/2044 2,385 2,464 12,761 13,188
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 267,454 263,748 230,765
Interest Paid 120,804 117,098 84,115
Estimated Savings 3,706 36,689
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 18 Employer Contribution History
The table below provides a recent history of the employer contribution requirements for the plan, as determined by the annual actuarial valuation.Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected. [
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2014 2016 - 17 6.555% $31
06/30/2015 2017 - 18 6.533% 86
06/30/2016 2018 - 19 6.842% 273
06/30/2017 2019 - 20 6.985% 3,711
06/30/2018 2020 - 21 7.732% 5,275
06/30/2019 2021 - 22 7.59% 5,570
06/30/2020 2022 - 23 7.47% 6,094
06/30/2021 2023 - 24 7.68% 0
06/30/2022 2024 - 25 7.87% 3,372
06/30/2023 2025 - 26 7.96% 7,456
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $7,729 $8,073 ($344) 104.5% $169,924
06/30/2015 28,554 26,698 1,856 93.5% 216,805
06/30/2016 61,363 54,111 7,252 88.2% 301,493
06/30/2017 112,173 104,925 7,248 93.5% 432,566
06/30/2018 199,160 181,143 18,017 91.0% 463,113
06/30/2019 288,803 260,380 28,423 90.2% 514,098
06/30/2020 401,078 361,023 40,055 90.0% 671,341
06/30/2021 604,498 635,253 (30,755) 105.1% 811,722
06/30/2022 797,447 702,030 95,417 88.0% 1,096,040
06/30/2023 1,080,342 948,717 131,625 87.8% 1,333,811
Risk Analysis
• Future Investment Return Scenarios 20
• Discount Rate Sensitivity 21
• Mortality Rate Sensitivity 21
• Maturity Measures 22
• Maturity Measures History 23
• Funded Status – Termination Basis 24
• Funded Status – Low-Default-Risk Basis 25
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 20 Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below refle ct the impact of the CalPERS Funding Risk Mitigation Policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

Assumed Annual Return
FY 2023-24
through FY 2042-43
Projected Employer Contributions
2026-27 2027-28 2028-29 2029-30 2030-31

3.0% (5th percentile)
Discount Rate 6.80% 6.80% 6.80% 6.80% 6.80%
Normal Cost Rate 8.0% 8.0% 8.0% 8.0% 8.0%
UAL Contribution $11,000 $15,000 $20,000 $24,000 $28,000

10.8% (95th percentile)
Discount Rate 6.75% 6.70% 6.65% 6.60% 6.55%
Normal Cost Rate 8.2% 8.4% 8.6% 8.3% 8.5%
UAL Contribution $9,100 $9,900 $9,800 $0 $0
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The following table shows the effect of one and two standard deviation investment losses in FY 2023-24 on the FY 2026-27 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2026-27.

Assumed Annual Return for
Fiscal Year 2023-24
Required
Employer
Contributions
Projected
Employer
Contributions
2025-26 2026-27
(17.2%) (2 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 7.96% 8.0%
UAL Contribution $7,456 $15,000
(5.2%) (1 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 7.96% 8.0%
UAL Contribution $7,456 $13,000
• Without investment gains (returns higher than 6.8%) in FY 2024-25 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2023-24.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2026-27 as well as to model other investment return scenarios .

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 21 Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of

6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2023
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 19.65% 15.71% 12.71%
b) Accrued Liability $1,361,376 $1,080,342 $864,425
c) Market Value of Assets $948,717 $948,717 $948,717
d) Unfunded Liability/(Surplus) [(b) - (c)] $412,659 $131,625 ($84,292) e) Funded Ratio 69.7% 87.8% 109.8%
Sensitivity to the Price Inflation Assumption
As of June 30, 2023
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 16.56% 15.71% 14.29%
b) Accrued Liability $1,138,856 $1,080,342 $975,727
c) Market Value of Assets $948,717 $948,717 $948,717
d) Unfunded Liability/(Surplus) [(b) - (c)] $190,139 $131,625 $27,010 e) Funded Ratio 83.3% 87.8% 97.2%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023,plan costs and funded status under two different longevity scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.

As of June 30, 2023
10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 15.98% 15.71% 15.46%
b) Accrued Liability $1,100,663 $1,080,342 $1,061,556
c) Market Value of Assets $948,717 $948,717 $948,717
d) Unfunded Liability/(Surplus) [(b) - (c)] $151,946 $131,625 $112,839 e) Funded Ratio 86.2% 87.8% 89.4%
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 22 Maturity Measures
As pension plans mature they become more sensitive to risks .Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2022 June 30, 2023

1. Retiree Accrued Liability $0 $0

2. Total Accrued Liability $797,447 $1,080,342

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 0% 0%
Another measure of the maturity level of CalPERS and its plans is the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

Support Ratio June 30, 2022 June 30, 2023

1. Number of Actives 18 20

2. Number of Retirees 0 0

3. Support Ratio [(1) ÷ (2)] N/A N/A
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 23 Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary increases, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required empl oyer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the u ps and downs of investment returns.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll. Pl ans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2022 June 30, 2023

1. Market Value of Assets $702,030 $948,717

2. Payroll $1,096,040 $1,333,811

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 0.6 0.7

4. Accrued Liability $797,447 $1,080,342

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 0.7 0.8 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0% N/A 0.2 0.3
06/30/2018 0% N/A 0.4 0.4
06/30/2019 0% N/A 0.5 0.6
06/30/2020 0% N/A 0.5 0.6
06/30/2021 0% N/A 0.8 0.7
06/30/2022 0% N/A 0.6 0.7
06/30/2023 0% N/A 0.7 0.8
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 24 Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The accrued liability on a termination basis (termination liability) is calculated differently from the plan’s ongoing funding liability. For the termination liability calculation, both compensation and servi ce are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an empl oyer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool.

Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $1,585,486 $918,757

2. Market Value of Assets (MVA) 948,717 948,717

3. Unfunded Termination Liability [(1) – (2)] $636,769 ($29,960)

4. Funded Ratio [(2) ÷ (1)] 59.8% 103.3%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 25 Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date using a discount rate based on the yields of high quality fixed income securities with cash flows that replica te expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial characteristics to accrued plan costs.

As shown below, the discount rate used for the LDROM is 4.82%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2023, net of assumed administrative expenses.

Selected Measures on a Low-Default-Risk Basis June 30, 2023 Discount Rate 4.82%

1. Accrued Liability2 – Low-Default-Risk Basis (LDROM)
a) Active Members $1,652,140
b) Transferred Members 36,857
c) Separated Members 30,394
d) Members and Beneficiaries Receiving Payments 0
e) Total $1,719,391

2. Market Value of Assets (MVA) 948,717

3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $770,674

4. Unfunded Accrued Liability – Funding Policy Basis 131,625

5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $639,049 The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued p lan costs at the levels anticipated by the funding policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 26 Summary of Valuation Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2022 June 30, 2023
Active Members
Counts 18 20
Average Attained Age 40.2 40.7
Average Entry Age to Rate Plan 36.6 36.8
Average Years of Credited Service 3.7 4.0
Average Annual Covered Pay $60,891 $66,691
Annual Covered Payroll $1,096,040 $1,333,811
Present Value of Future Payroll $11,908,426 $14,336,552 Transferred Members 2 4
Separated Members 7 7
Retired Members and Beneficiaries*
Counts 0 0
Average Annual Benefits $0 $0
Total Annual Benefits $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. * Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the following Class 1 Benefit Provisions:
• None
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 27 ends

Benefit Group
Member Category Misc
Demographics
Actives Yes
Transfers/Separated Yes
Receiving No
Benefit Group Key 111995
Benefit Provision
Benefit Formula 2% @ 62
Social Security Coverage Yes
Full/Modified Full
Employee Contribution Rate 7.75%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special No
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2,000
Survivor Allowance (PRSA) No
COLA 2%
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Miscellaneous Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Miscellaneous Risk Pool Page 28 Section 2
California Public Employees’ Retirement System
Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms & Publications section
California Public Employees’ Retirement System
Actuarial Valuation for the
Safety Fire Plan
of the City of Kingsburg
as of June 30, 2023
(CalPERS ID: 1210886769)
(Rate Plan ID: 1348)
Required Contributions for Fiscal Year
July 1, 2025 — June 30, 2026
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
California Public Employees’ Retirement System
Plan Specific Information
for the
Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 1348)
Rate Plan belonging to the Safety Risk Pool
Table of Contents — Section 1
Actuarial Certification....................................................................................................................................................................................1 Highlights and Executive Summary ..........................................................................................................................................................2 Introduction....................................................................................................................................................................................................3 Purpose of Section 1....................................................................................................................................................................................3 Summary of Key Valuation Results ...........................................................................................................................................................4 Changes Since the Prior Year’s Valuation................................................................................................................................................5 Subsequent Events.......................................................................................................................................................................................5 Liabilities and Contributions .......................................................................................................................................................................6 Determination of Required Contributions ..................................................................................................................................................7 Required Employer Contributions ..............................................................................................................................................................8 Member Contribution Rates ........................................................................................................................................................................9 Other Pooled Safety Risk Pool Rate Plans............................................................................................................................................ 10 Breakdown of Entry Age Accrued Liability............................................................................................................................................. 11 Allocation of Plan’s Share of Pool’s Experience...................................................................................................................................11 Development of the Plan’s Share of Pool’s Assets .............................................................................................................................. 11 Funded Status – Funding Policy Basis................................................................................................................................................... 12 Additional Employer Contributions .......................................................................................................................................................... 13 Projected Employer Contributions........................................................................................................................................................... 14 Schedule of Amortization Bases.............................................................................................................................................................. 15 Amortization Schedule and Alternatives ................................................................................................................................................ 17 Employer Contribution History.................................................................................................................................................................19 Funding History.......................................................................................................................................................................................... 19 Risk Analysis ................................................................................................................................................................................................ 20 Future Investment Return Scenarios...................................................................................................................................................... 21 Discount Rate Sensitivity.......................................................................................................................................................................... 22 Mortality Rate Sensitivity........................................................................................................................................................................... 22 Maturity Measures ..................................................................................................................................................................................... 23 Maturity Measures History........................................................................................................................................................................24 Funded Status – Termination Basis........................................................................................................................................................ 25 Funded Status – Low-Default-Risk Basis .............................................................................................................................................. 26 Summary of Valuation Data ......................................................................................................................................................................27 List of Class 1 Benefit Provisions ........................................................................................................................................................... 27 Plan's Major Benefit Options ....................................................................................................................................................................28 CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report, consisting of Section 1 and Section 2, is intended to be complete, our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with regard to pensions.

Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are reasonable as well as the information in Section 2 of this report, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Safety Fire Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation was based on the member and financial data as of June 30, 2023, provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.

Tony Cuny, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction 3
• Purpose of Section 1 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2023,actuarial valuation of the Safety Fire Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2025-26.

Purpose of Section 1
This Section 1 report for the Safety Fire Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2023. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2023; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2025,through June 30, 2026; • Determine the required member contribution rate for FY July 1, 2025,through June 30, 2026, for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2023, to the CalPERS Board of Administration (board) and other interested parties.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found .

Required Employer Contributions — page 8
Fiscal Year
2024-25
Fiscal Year
2025-26
Employer Normal Cost Rate 23.00% 23.06%
Unfunded Accrued Liability (UAL) Contribution Amount $147,912 $169,104 Paid either as
Option 1) 12 Monthly Payments of $12,326.00 $14,092.00
Option 2) Annual Prepayment in July $143,126 $163,632
Member Contribution Rates — page 9
Fiscal Year
2024-25
Fiscal Year
2025-26
Member Contribution Rate 9.00% 9.00%
Projected Employer Contributions — page 14
Fiscal
Year
Normal Cost
(% of payroll)
Annual
UAL Payment
2026-27 23.1% $181,000
2027-28 23.1% $192,000
2028-29 23.1% $213,000
2029-30 23.1% $218,000
2030-31 23.1% $222,000
Funded Status — Funding Policy Basis — page 12
June 30, 2022 June 30, 2023
Entry Age Accrued Liability (AL) $5,974,190 $6,359,041
Market Value of Assets (MVA) 4,467,448 4,758,706
Unfunded Accrued Liability (UAL) [AL – MVA] $1,506,742 $1,600,335 Funded Ratio [MVA ÷ AL] 74.8% 74.8%
Summary of Valuation Data — Page 27

June 30, 2022 June 30, 2023
Active Member Count 3 4
Annual Covered Payroll $252,632 $314,426
Transferred Member Count 8 8
Separated Member Count 2 2
Retired Members and Beneficiaries Count 6 6
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. For pooled rate plans, voluntary benefit changes by plan amendment are generally included in the first valuation with a valuation date on or after the effective date of the amendment.

Please refer to the Plan’s Major Benefit Options in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2023,actuarial valuation.

Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2023,as well as statutory changes, regulatory changes and board actions through January 2024.

To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.

Liabilities and Contributions
• Determination of Required Contributions 7
• Required Employer Contributions 8
• Member Contribution Rates 9
• Other Pooled Safety Risk Pool Rate Plans 10
• Breakdown of Entry Age Accrued Liability 11
• Allocation of Plan’s Share of Pool’s Experience 11
• Development of the Plan’s Share of Pool’s Assets 11
• Funded Status – Funding Policy Basis 12
• Additional Employer Contributions 13
• Projected Employer Contributions 14
• Schedule of Amortization Bases 15
• Amortization Schedule and Alternatives 17
• Employer Contribution History 19
• Funding History 19
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex calculations based on a set of actuarial assumptions and methods. See Appendix A in Section 2 for information on the assumptions and methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required contributions for the fiscal year that begins two years after the valuation date.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year
Required Employer Contributions 2025-26
Employer Normal Cost Rate 23.06%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount1 $169,104 Paid either as
1) Monthly Payment $14,092.00
Or
2) Annual Prepayment Option* $163,632
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) and the Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For Member Contribution Rates see the following page.

Fiscal Year Fiscal Year
Development of Normal Cost as a Percentage of Payroll 2024-25 2025-26 Base Total Normal Cost for Formula 31.99% 32.05%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Plan’s Total Normal Cost 31.99% 32.05%
Offset Due to Employee Contributions 3 8.99% 8.99%
Employer Normal Cost 23.00% 23.06%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 30, 2024.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each benefit formula, see Member Contribution Rates.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Each member contributes toward their retirement based upon the retirement formula. The standard Classic member contribution rate above the breakpoint, if any, is as described below.

Benefit Formula
Percent Contributed
above the Breakpoint
Safety, 2% at age 55 7%
Safety, 2% at age 50 9%
Safety, 3% at age 55 9%
Safety, 3% at age 50 9%
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 10
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 1348. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consid er contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Safety Risk Pool are shown below and assume that the total employer payroll within the Safety Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.

Fiscal Year Fiscal Year
Estimated Employer Contributions for all Pooled Safety Rate Plans 2024-25 2025-26 Projected Payroll for the Contribution Year $3,368,196 $3,486,355 Estimated Employer Normal Cost $530,975 $549,825
Required Payment on Amortization Bases $528,960 $608,821 Estimated Total Employer Contributions $1,059,935 $1,158,646 Estimated Total Employer Contribution Rate (illustrative only) 31.47% 33.23% CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $1,429,719
Transferred Members 1,706,452
Separated Members 32,095
Members and Beneficiaries Receiving Payments 3,190,775
Total $6,359,041
Allocation of Plan’s Share of Pool’s Experience
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assum ption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $6,359,041

2. Projected UAL Balance at 6/30/2023 1,485,735

3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0

4. Adjusted UAL Balance at 6/30/2023 for Asset Share 1,485,735

5. Pool’s Accrued Liability1 30,525,472,379

6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20231 7,735,444,959

7. Pool’s 2022-23 Investment (Gain)/Loss1 146,133,368

8. Pool’s 2022-23 Non-Investment (Gain)/Loss1 400,118,077

9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 31,248

10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 83,352

11. Plan’s New (Gain)/Loss as of 6/30/2023:(9) + (10) 114,600

12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0

13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0

14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0

15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0

16. Offset due to Funding Risk Mitigation 0

17. Plan’s Investment (Gain)/Loss: (9) – (16) 31,248
1 Does not include plans that transferred to the pool on the valuation date.

Development of the Plan’s Share of Pool’s Assets

18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $1,600,335

19. Plan’s Share of Pool’s Market Value of Assets (MVA): (1) - (18) $4,758,706 For a reconciliation of the pool’s Market Value of Assets (MVA), information on the fund’s asset allocation and a history of CalPERS investment returns, see Section 2, which can be found on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valuation date.

The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.

A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.

Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual a verage future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:

The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.

June 30, 2022 June 30, 2023

1. Present Value of Benefits $6,548,429 $7,183,003

2. Entry Age Accrued Liability 5,974,190 6,359,041

3. Market Value of Assets (MVA) 4,467,448 4,758,706

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $1,506,742 $1,600,335

5. Funded Ratio [(3) ÷ (2)] 74.8% 74.8%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%

1. Entry Age Accrued Liability $7,297,986 $6,359,041 $5,595,474

2. Market Value of Assets (MVA) 4,758,706 4,758,706 4,758,706

3. Unfunded Accrued Liability (UAL) [(1) – (2)] $2,539,280 $1,600,335 $836,768

4. Funded Ratio [(2) ÷ (1)] 65.2% 74.8% 85.0%
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 13
Additional Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2025-26 is $169,104. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time. These optional payments serve to reduce the UAL and future required contributions and can result in significant long -term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

The calculations above are based on the projected UAL as of June 30, 2025,as determined in the June 30, 2023, actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions, and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of year s will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.

Fiscal
Year ADP FiscalYear ADP
2019-20 $250,000 2022-23 $0
2020-21 $0 2023-242 $0
2021-22 $150,000
2 Excludes payments made after April 30, 2024
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 14
Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2023-24 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2023-24 and Beyond) Fiscal Year 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Rate Plan 1348 Results
Normal Cost % 23.06% 23.1% 23.1% 23.1% 23.1% 23.1%
UAL Payment $169,104 $181,000 $192,000 $213,000 $218,000 $222,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see Amortization of Unfunded Actuarial Accrued Liability in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

Pension Outlook can help plan and budget pension costs under various scenarios.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 15
Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities and funded status of the plan are measured as of the valuation date: June 30, 2023. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: FY 2025-26.

Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Side Fund
2013 or
Prior No Ramp 2.80% 7 604,110 80,420 562,080 82,672 514,865 84,987 Investment (Gain)/Loss 6/30/13 100% Up/Dn 2.80% 20 162,738 11,812 161,597 12,143 160,037 12,483 Non-Investment (Gain)/Loss 6/30/13 100% Up/Dn 2.80% 20 (20,045) (1,455) (19,904) (1,496) (19,711) (1,537) Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.80% 12 105,032 9,820 102,026 10,095 98,531 10,378 Assumption Change 6/30/14 100% Up/Dn 2.80% 11 156,521 17,718 148,854 18,214 140,153 18,724 Investment (Gain)/Loss 6/30/14 100% Up/Dn 2.80% 21 (198,103) (13,922) (197,186) (14,312) (195,804) (14,713) Non-Investment (Gain)/Loss 6/30/15 100% Up/Dn 2.80% 22 (624) (43) (622) (44) (619) (45) Assumption Change 6/30/16 100% Up/Dn 2.80% 13 74,432 7,381 71,866 7,588 68,911 7,801 Non-Investment (Gain)/Loss 6/30/16 100% Up/Dn 2.80% 23 (40,206) (2,666) (40,185) (2,740) (40,086) (2,817) Assumption Change 6/30/17 100% Up/Dn 2.80% 14 110,590 10,361 107,403 10,651 103,699 10,949 Investment (Gain)/Loss 6/30/17 100% Up/Dn 2.80% 24 (122,129) (7,887) (122,283) (8,108) (122,219) (8,335) Assumption Change 6/30/18 100% Up/Dn 2.80% 15 168,386 12,193 167,236 15,668 162,416 16,107 Investment (Gain)/Loss 6/30/18 100% Up/Dn 2.80% 25 (40,804) (2,082) (41,427) (2,675) (41,480) (2,750) Method Change 6/30/18 100% Up/Dn 2.80% 15 37,284 2,700 37,029 3,469 35,962 3,566 Investment (Gain)/Loss 6/30/19 100% Up Only 0.00% 16 20,635 1,241 20,756 1,654 20,458 2,068 Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 16 22,797 2,161 22,114 2,161 21,384 2,161 Investment (Gain)/Loss 6/30/20 80% Up Only 0.00% 17 109,461 4,500 112,254 6,749 112,913 8,999 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 17 17,549 1,618 17,070 1,618 16,559 1,619 Risk Mitigation 6/30/21 No Ramp 0.00% 0 164,191 169,682 0 0 0 0 Risk Mitigation Offset 6/30/21 No Ramp 0.00% 0 (164,191) (169,682) 0 0 0 0 CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 16
Schedule of Amortization Bases (continued)
Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Assumption Change 6/30/21 No Ramp 0.00% 18 40,179 3,613 39,177 3,613 38,107 3,613 Net Investment (Gain) 6/30/21 60% Up Only 0.00% 18 (534,138) (11,481) (558,594) (22,962) (572,849) (34,443) Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 18 (24,362) (2,191) (23,754) (2,191) (23,105) (2,191) Investment (Gain)/Loss 6/30/22 40% Up Only 0.00% 19 741,433 0 791,850 17,021 828,106 34,041 Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 19 94,999 0 101,459 9,124 98,929 9,124 Investment (Gain)/Loss 6/30/23 20% Up Only 0.00% 20 31,248 0 33,373 0 35,642 766 Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 20 83,352 0 89,020 0 95,073 8,549 Total 1,600,335 123,811 1,581,209 147,912 1,535,872 169,104 The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in Allocation of Plan’s Share of Pool’s Experience earlier in this report. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 17
Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded lia bility payments.

The current amortization schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existin g unfunded liability bases with a single “fresh start” base and amortizing it over an appropriate period.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 18
Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 10 Year Amortization 5 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2025 1,535,872 169,104 1,535,872 209,646 1,535,872 360,525 6/30/2026 1,465,550 181,430 1,423,655 209,646 1,267,730 360,525 6/30/2027 1,377,712 191,615 1,303,807 209,646 981,354 360,525 6/30/2028 1,273,374 213,390 1,175,809 209,646 675,505 360,525 6/30/2029 1,139,440 218,260 1,039,107 209,645 348,858 360,524 6/30/2030 991,362 222,477 893,111 209,646
6/30/2031 828,857 226,805 737,186 209,645
6/30/2032 650,831 123,610 570,659 209,646
6/30/2033 567,344 120,505 392,807 209,646
6/30/2034 481,389 115,179 202,861 209,645
6/30/2035 395,093 106,629
6/30/2036 311,764 92,232
6/30/2037 237,649 67,761
6/30/2038 183,785 56,761
6/30/2039 137,626 47,439
6/30/2040 97,958 40,914
6/30/2041 62,338 32,530
6/30/2042 32,958 19,998
6/30/2043 14,532 15,018
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 2,261,657 2,096,457 1,802,624
Interest Paid 725,785 560,585 266,752
Estimated Savings 165,200 459,033
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 19
Employer Contribution History
The table below provides a recent history of the employer contribution requirements for the plan, as determined by the annual actuarial valuation.Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected. [
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2014 2016 - 17 16.656% $82,595
06/30/2015 2017 - 18 16.842% 89,933
06/30/2016 2018 - 19 17.614% 100,012
06/30/2017 2019 - 20 18.928% 111,772
06/30/2018 2020 - 21 20.585% 123,274
06/30/2019 2021 - 22 20.64% 123,617
06/30/2020 2022 - 23 20.64% 136,201
06/30/2021 2023 - 24 22.83% 123,811
06/30/2022 2024 - 25 23.00% 147,912
06/30/2023 2025 - 26 23.06% 169,104
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $2,734,967 $1,661,599 $1,073,368 60.8% $431,800 06/30/2015 3,023,743 1,858,294 1,165,449 61.5% 439,972
06/30/2016 3,589,180 2,227,341 1,361,839 62.1% 406,989
06/30/2017 4,097,128 2,730,883 1,366,245 66.7% 463,947
06/30/2018 4,577,676 3,055,682 1,521,994 66.8% 350,087
06/30/2019 4,992,360 3,417,708 1,574,652 68.5% 250,721
06/30/2020 5,296,423 3,877,254 1,419,169 73.2% 245,912
06/30/2021 5,688,299 4,751,938 936,361 83.5% 245,084
06/30/2022 5,974,190 4,467,448 1,506,742 74.8% 252,632
06/30/2023 6,359,041 4,758,706 1,600,335 74.8% 314,426
Risk Analysis
• Future Investment Return Scenarios 21
• Discount Rate Sensitivity 22
• Mortality Rate Sensitivity 22
• Maturity Measures 23
• Maturity Measures History 24
• Funded Status – Termination Basis 25
• Funded Status – Low-Default-Risk Basis 26
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below reflect the impact of the CalPERS Funding Risk Mitigation Policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

Assumed Annual Return
FY 2023-24
through FY 2042-43
Projected Employer Contributions
2026-27 2027-28 2028-29 2029-30 2030-31

3.0% (5th percentile)
Discount Rate 6.80% 6.80% 6.80% 6.80% 6.80%
Normal Cost Rate 23.1% 23.1% 23.1% 23.1% 23.1%
UAL Contribution $186,000 $205,000 $240,000 $263,000 $290,000

10.8% (95th percentile)
Discount Rate 6.75% 6.70% 6.65% 6.60% 6.55%
Normal Cost Rate 23.5% 23.9% 24.3% 24.7% 25.1%
UAL Contribution $177,000 $180,000 $189,000 $177,000 $0 Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The following table shows the effect of one and two standard deviation investment losses in FY 2023-24 on the FY 2026-27 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2026-27.

Assumed Annual Return for
Fiscal Year 2023-24
Required
Employer
Contributions
Projected
Employer
Contributions
2025-26 2026-27
(17.2%) (2 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 23.06% 23.1%
UAL Contribution $169,104 $209,000
(5.2%) (1 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 23.06% 23.1%
UAL Contribution $169,104 $195,000
• Without investment gains (returns higher than 6.8%) in FY 2024-25 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2023-24.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2026-27 as well as to model other investment return scenarios .

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of

6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2023
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 40.08% 32.05% 25.91%
b) Accrued Liability $7,297,986 $6,359,041 $5,595,474
c) Market Value of Assets $4,758,706 $4,758,706 $4,758,706 d) Unfunded Liability/(Surplus) [(b) - (c)] $2,539,280 $1,600,335 $836,768 e) Funded Ratio 65.2% 74.8% 85.0%
Sensitivity to the Price Inflation Assumption
As of June 30, 2023
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 33.58% 32.05% 29.14%
b) Accrued Liability $6,607,191 $6,359,041 $5,875,013
c) Market Value of Assets $4,758,706 $4,758,706 $4,758,706 d) Unfunded Liability/(Surplus) [(b) - (c)] $1,848,485 $1,600,335 $1,116,307 e) Funded Ratio 72.0% 74.8% 81.0%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023,plan costs and funded status under two different longevity scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.

As of June 30, 2023
10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 32.50% 32.05% 31.63%
b) Accrued Liability $6,465,114 $6,359,041 $6,260,535
c) Market Value of Assets $4,758,706 $4,758,706 $4,758,706 d) Unfunded Liability/(Surplus) [(b) - (c)] $1,706,408 $1,600,335 $1,501,829 e) Funded Ratio 73.6% 74.8% 76.0%
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Maturity Measures
As pension plans mature they become more sensitive to risks .Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions.

Since it is the employer that bears the risk, it is appropriate to perform this analysis on a pension plan level considering all rate plans. The following measures are for one rate plan only. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ra tio of retiree liability to total liability. As the plan matures, the ratio increases. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2022 June 30, 2023

1. Retiree Accrued Liability $3,188,372 $3,190,775

2. Total Accrued Liability $5,974,190 $6,359,041

3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 53% 50%
Another measure of the maturity level of CalPERS and its plans is the ratio of actives to retirees, also called the support ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the suppo rt ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.

For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2022, was 0.77 and was calculated consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree with service from more than one CalPERS agency is counted as a retiree more than once.

Support Ratio June 30, 2022 June 30, 2023

1. Number of Actives 3 4

2. Number of Retirees 6 6

3. Support Ratio [(1) ÷ (2)] 0.50 0.67
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary increases, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll. Pl ans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2022 June 30, 2023

1. Market Value of Assets $4,467,448 $4,758,706

2. Payroll $252,632 $314,426

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 17.7 15.1

4. Accrued Liability $5,974,190 $6,359,041

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 23.6 20.2 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 24% 1.75 5.9 8.8
06/30/2018 22% 1.25 8.7 13.1
06/30/2019 47% 0.80 13.6 19.9
06/30/2020 58% 0.67 15.8 21.5
06/30/2021 55% 0.50 19.4 23.2
06/30/2022 53% 0.50 17.7 23.6
06/30/2023 50% 0.67 15.1 20.2
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The accrued liability on a termination basis (termination liability) is calculated differently from the plan’s ongoing funding liability. For the termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool.

The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the fo llowing analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as shown below.

Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $10,977,211 $8,083,011

2. Market Value of Assets (MVA) 4,758,706 4,758,706

3. Unfunded Termination Liability [(1) – (2)] $6,218,505 $3,324,305

4. Funded Ratio [(2) ÷ (1)] 43.4% 58.9%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 26
Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date using a discount rate based on the yields of high quality fixed income securities with cash flows that replica te expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial characteristics to accrued plan costs.

As shown below, the discount rate used for the LDROM is 4.82%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2023, net of assumed administrative expenses.

Selected Measures on a Low-Default-Risk Basis June 30, 2023 Discount Rate 4.82%

1. Accrued Liability2 – Low-Default-Risk Basis (LDROM)
a) Active Members $1,889,643
b) Transferred Members 2,524,517
c) Separated Members 48,902
d) Members and Beneficiaries Receiving Payments 3,977,209 e) Total $8,440,271

2. Market Value of Assets (MVA) 4,758,706

3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $3,681,565

4. Unfunded Accrued Liability – Funding Policy Basis 1,600,335

5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $2,081,230 The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued p lan costs at the levels anticipated by the funding policy.

CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 27
Summary of Valuation Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2022 June 30, 2023
Active Members
Counts 3 4
Average Attained Age 49.4 46.6
Average Entry Age to Rate Plan 36.1 35.6
Average Years of Credited Service 13.3 10.9
Average Annual Covered Pay $84,211 $78,607
Annual Covered Payroll $252,632 $314,426
Present Value of Future Payroll $1,717,848 $2,363,304
Transferred Members 8 8
Separated Members 2 2
Retired Members and Beneficiaries*
Counts 6 6
Average Annual Benefits $36,320 $37,061
Total Annual Benefits $217,917 $222,366
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. * Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the following Class 1 Benefit Provisions:
• None
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 28 ends

Benefit Group
Member Category Fire Fire
Demographics
Actives Yes No
Transfers/Separated Yes No
Receiving Yes Yes
Benefit Group Key 100558 207857
Benefit Provision
Benefit Formula 3% @ 55
Social Security Coverage Yes
Full/Modified Modified
Employee Contribution Rate 9.00%
Final Average Compensation Period Three Year
Sick Leave Credit Yes
Non-Industrial Disability Standard
Industrial Disability Standard
Pre-Retirement Death Benefits
Optional Settlement 2 Yes
1959 Survivor Benefit Level No
Special Yes
Alternate (firefighters) No
Post-Retirement Death Benefits
Lump Sum $2,000 $2,000
Survivor Allowance (PRSA) No No
COLA 2% 2%
CalPERS Actuarial Valuation - June 30, 2023
Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 29
Section 2
California Public Employees’ Retirement System
Risk Pool Actuarial Valuation Information
Section 2 may be found on the
CalPERS website (www.calpers.ca.gov)
in the Forms & Publications section
California Public Employees’ Retirement System
Actuarial Valuation for the
PEPRA Safety Fire Plan
of the City of Kingsburg
as of June 30, 2023
(CalPERS ID: 1210886769)
(Rate Plan ID: 25614)
Required Contributions for Fiscal Year
July 1, 2025 — June 30, 2026
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
California Public Employees’ Retirement System
Plan Specific Information
for the
PEPRA Safety Fire Plan
of the
City of Kingsburg
(CalPERS ID: 1210886769)
(Rate Plan ID: 25614)
Rate Plan belonging to the Safety Risk Pool
Table of Contents — Section 1
Actuarial Certification....................................................................................................................................................................................1 Highlights and Executive Summary ..........................................................................................................................................................2 Introduction....................................................................................................................................................................................................3 Purpose of Section 1....................................................................................................................................................................................3 Summary of Key Valuation Results ...........................................................................................................................................................4 Changes Since the Prior Year’s Valuation................................................................................................................................................5 Subsequent Events.......................................................................................................................................................................................5 Liabilities and Contributions .......................................................................................................................................................................6 Determination of Required Contributions ..................................................................................................................................................7 Required Employer Contributions ..............................................................................................................................................................8 Member Contribution Rates ........................................................................................................................................................................9 Other Pooled Safety Risk Pool Rate Plans............................................................................................................................................ 10 Breakdown of Entry Age Accrued Liability............................................................................................................................................. 11 Allocation of Plan’s Share of Pool’s Experience...................................................................................................................................11 Development of the Plan’s Share of Pool’s Assets .............................................................................................................................. 11 Funded Status – Funding Policy Basis................................................................................................................................................... 12 Additional Employer Contributions .......................................................................................................................................................... 13 Projected Employer Contributions........................................................................................................................................................... 14 Schedule of Amortization Bases.............................................................................................................................................................. 15 Amortization Schedule and Alternatives ................................................................................................................................................ 16 Employer Contribution History.................................................................................................................................................................18 Funding History.......................................................................................................................................................................................... 18 Risk Analysis ................................................................................................................................................................................................ 19 Future Investment Return Scenarios...................................................................................................................................................... 20 Discount Rate Sensitivity.......................................................................................................................................................................... 21 Mortality Rate Sensitivity........................................................................................................................................................................... 21 Maturity Measures ..................................................................................................................................................................................... 22 Maturity Measures History........................................................................................................................................................................23 Funded Status – Termination Basis........................................................................................................................................................ 24 Funded Status – Low-Default-Risk Basis .............................................................................................................................................. 25 Summary of Valuation Data ......................................................................................................................................................................26 List of Class 1 Benefit Provisions ........................................................................................................................................................... 26 Plan's Major Benefit Options ....................................................................................................................................................................27 CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 1
Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report, consisting of Section 1 and Section 2, is intended to be complete, our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with regard to pensions.

Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are reasonable as well as the information in Section 2 of this report, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the PEPRA Safety Fire Plan of the City of Kingsburg and satisfies the actuarial valuation requirements of Government Code section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation was based on the member and financial data as of June 30, 2023, provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced.Section 1 of this report is based on the member and financial data for City of Kingsburg, while Section 2 is based on the corresponding information for all agencies participating in the Safety Risk Pool to which the plan belongs.

Tony Cuny, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction 3
• Purpose of Section 1 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2023,actuarial valuation of the PEPRA Safety Fire Plan of the City of Kingsburg of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions for fiscal year (FY) 2025-26.

Purpose of Section 1
This Section 1 report for the PEPRA Safety Fire Plan of the City of Kingsburg of CalPERS was prepared by the Actuarial Office using data as of June 30, 2023. The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2023; • Determine the minimum required employer contributions for this rate plan for FY July 1, 2025,through June 30, 2026; • Determine the required member contribution rate for FY July 1, 2025,through June 30, 2026, for employees subject to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2023, to the CalPERS Board of Administration (board) and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 4
Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found .

Required Employer Contributions — page 8
Fiscal Year
2024-25
Fiscal Year
2025-26
Employer Normal Cost Rate 13.76% 13.99%
Unfunded Accrued Liability (UAL) Contribution Amount $5,373 $11,243 Paid either as
Option 1) 12 Monthly Payments of $447.75 $936.92
Option 2) Annual Prepayment in July $5,199 $10,879
Member Contribution Rates — page 9
Fiscal Year
2024-25
Fiscal Year
2025-26
Member Contribution Rate 13.75% 13.75%
Projected Employer Contributions — page 14
Fiscal
Year
Normal Cost
(% of payroll)
Annual
UAL Payment
2026-27 14.0% $15,000
2027-28 14.0% $19,000
2028-29 14.0% $23,000
2029-30 14.0% $23,000
2030-31 14.0% $23,000
Funded Status — Funding Policy Basis — page 12
June 30, 2022 June 30, 2023
Entry Age Accrued Liability (AL) $1,146,990 $1,516,788
Market Value of Assets (MVA) 994,142 1,312,354
Unfunded Accrued Liability (UAL) [AL – MVA] $152,848 $204,434 Funded Ratio [MVA ÷ AL] 86.7% 86.5%
Summary of Valuation Data — Page 26

June 30, 2022 June 30, 2023
Active Member Count 17 14
Annual Covered Payroll $1,082,919 $1,029,201
Transferred Member Count 9 12
Separated Member Count 4 6
Retired Members and Beneficiaries Count 0 0
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 5
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. For pooled rate plans, voluntary benefit changes by plan amendment are generally included in the first valuation with a valuation date on or after the effective date of the amendment.

Please refer to the Plan’s Major Benefit Options in this report and Appendix B of the Section 2 Report for a summary of the plan provisions used in this valuation.

Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2023,actuarial valuation.

Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2023,as well as statutory changes, regulatory changes and board actions through January 2024.

During the time period between the valuation date and the publication of this report, inflation has been higher than the expected inflation of 2.3% per annum. Since inflation influences cost-of-living increases for retirees and beneficiaries and active member pay increases, higher inflation is likely to put at least some upward pressure on contribution requirements a nd downward pressure on the funded status in the June 30, 2024, valuation. The actual impact of higher inflation on future valuation results will depend on, among other factors, how long higher inflation persists.

To the best of our knowledge, there have been no other subsequent events that could materially affect current or future certifications rendered in this report.

Liabilities and Contributions
• Determination of Required Contributions 7
• Required Employer Contributions 8
• Member Contribution Rates 9
• Other Pooled Safety Risk Pool Rate Plans 10
• Breakdown of Entry Age Accrued Liability 11
• Allocation of Plan’s Share of Pool’s Experience 11
• Development of the Plan’s Share of Pool’s Assets 11
• Funded Status – Funding Policy Basis 12
• Additional Employer Contributions 13
• Projected Employer Contributions 14
• Schedule of Amortization Bases 15
• Amortization Schedule and Alternatives 16
• Employer Contribution History 18
• Funding History 18
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 7
Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex calculations based on a set of actuarial assumptions and methods. See Appendix A in Section 2 for information on the assumptions and methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required contributions for the fiscal year that begins two years after the valuation date.

In measuring the UAL each year, plan experience is split by source. Common sources of UAL include investment experience different than expected, non-investment experience different than expected, assumption changes and benefit changes. Each source of UAL (positive or negative) forms a base that is amortized, or paid off, over a specified perio d of time in accordance with the CalPERS Actuarial Amortization Policy. The Unfunded Accrued Liability Contribution is the sum of the payments on all bases. See the Schedule of Amortization Bases section of this report for an inventory of existing bases and Appendix A in Section 2 for more information on the amortization policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 8
Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

Fiscal Year
Required Employer Contributions 2025-26
Employer Normal Cost Rate 13.99%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount1 $11,243 Paid either as
1) Monthly Payment $936.92
Or
2) Annual Prepayment Option* $10,879
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll and paid as payroll is reported) and the Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars). * Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31).

For Member Contribution Rates see the following page.

Fiscal Year Fiscal Year
Development of Normal Cost as a Percentage of Payroll 2024-25 2025-26 Base Total Normal Cost for Formula 27.51% 27.74%
Surcharge for Class 1 Benefits 2
None 0.00% 0.00%
Plan’s Total Normal Cost 27.51% 27.74%
Offset Due to Employee Contributions 3 13.75% 13.75%
Employer Normal Cost 13.76% 13.99%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after April 30, 2024.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges. 3 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each benefit formula, see Member Contribution Rates.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 9
Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.

The table below shows the determination of the PEPRA member contribution rates effective July 1, 2025, based on 50% of the total normal cost rate as of the June 30, 2023, valuation.

Basis for Current Rate Rates Effective July 1, 2025
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost Change
Change
Needed
Member
Rate
25614 Safety Fire PEPRA Level 27.29% 13.75% 27.74% 0.45% No 13.75% CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 10
Other Pooled Safety Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown on this page, correspond to rate plan 25614. In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting it is useful to consid er contributions for these rate plans as a whole rather than individually. The estimated contribution amounts and rates for all of the employer’s rate plans in the Safety Risk Pool are shown below and assume that the total employer payroll within the Safety Risk Pool will grow according to the overall payroll growth assumption of 2.80% per year for three years. Classic members who are projected to terminate employment are assumed to be replaced by PEPRA members.

Fiscal Year Fiscal Year
Estimated Employer Contributions for all Pooled Safety Rate Plans 2024-25 2025-26 Projected Payroll for the Contribution Year $3,368,196 $3,486,355 Estimated Employer Normal Cost $530,975 $549,825
Required Payment on Amortization Bases $528,960 $608,821 Estimated Total Employer Contributions $1,059,935 $1,158,646 Estimated Total Employer Contribution Rate (illustrative only) 31.47% 33.23% CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $894,244
Transferred Members 496,244
Separated Members 126,300
Members and Beneficiaries Receiving Payments 0
Total $1,516,788
Allocation of Plan’s Share of Pool’s Experience
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assum ption changes in a manner that treats each employer equitably and maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. The pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as follows:

1. Plan’s Accrued Liability $1,516,788

2. Projected UAL Balance at 6/30/2023 175,954

3. Other UAL Adjustments (Golden Handshake, Prior Service Purchase, etc.) 0

4. Adjusted UAL Balance at 6/30/2023 for Asset Share 175,954

5. Pool’s Accrued Liability1 30,525,472,379

6. Sum of Pool’s Individual Plan UAL Balances at 6/30/20231 7,735,444,959

7. Pool’s 2022-23 Investment (Gain)/Loss1 146,133,368

8. Pool’s 2022-23 Non-Investment (Gain)/Loss1 400,118,077

9. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (4)] ÷ [(5) - (6)] × (7) 8,598

10. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (5) × (8) 19,882

11. Plan’s New (Gain)/Loss as of 6/30/2023:(9) + (10) 28,480

12. Increase in Pool’s Accrued Liability due to Change in Assumptions1 0

13. Plan’s Share of Pool’s Change in Assumptions: (1) ÷ (5) × (12) 0

14. Increase in Pool’s Accrued Liability due to Funding Risk Mitigation1 0

15. Plan’s Share of Pool’s Change due to Funding Risk Mitigation: (1) ÷ (5) × (14) 0

16. Offset due to Funding Risk Mitigation 0

17. Plan’s Investment (Gain)/Loss: (9) – (16) 8,598
1 Does not include plans that transferred to the pool on the valuation date.

Development of the Plan’s Share of Pool’s Assets

18. Plan’s UAL: (2) + (3) + (11) + (13) + (15) $204,434

19. Plan’s Share of Pool’s Market Value of Assets (MVA): (1) - (18) $1,312,354 For a reconciliation of the pool’s Market Value of Assets (MVA), information on the fund’s asset allocation and a history of CalPERS investment returns, see Section 2, which can be found on the CalPERS website (www.calpers.ca.gov).

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 12
Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the valuation date.

The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute measure of funded status and can be viewed as employer debt. The funded ratio equals the assets divided by the funding target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.

A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.

Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation date that future investment returns will average something greater/less than the expected return, calculated normal costs and accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual a verage future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:

The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities.

June 30, 2022 June 30, 2023

1. Present Value of Benefits $5,909,245 $5,764,010

2. Entry Age Accrued Liability 1,146,990 1,516,788

3. Market Value of Assets (MVA) 994,142 1,312,354

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $152,848 $204,434

5. Funded Ratio [(3) ÷ (2)] 86.7% 86.5%
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8%

1. Entry Age Accrued Liability $1,928,332 $1,516,788 $1,211,887

2. Market Value of Assets (MVA) 1,312,354 1,312,354 1,312,354

3. Unfunded Accrued Liability (UAL) [(1) – (2)] $615,978 $204,434 ($100,467)

4. Funded Ratio [(2) ÷ (1)] 68.1% 86.5% 108.3%
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 13
Additional Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for FY 2025-26 is $11,243. CalPERS allows agencies to make additional discretionary payments (ADPs) at any time. These optional payments serve to reduce the UAL and future required contributions and can result in significant long -term savings. Agencies can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Fiscal Year 2025-26 Employer Contributions — Illustrative Scenarios Funding Approach Estimated
Normal Cost
Minimum UAL
Contribution ADP1 Total UAL Contribution
Estimated Total
Contribution
Minimum required only $163,574 $11,243 0 $11,243 $174,817 20 year funding horizon $163,574 $11,243 $9,226 $20,469 $184,043 15 year funding horizon $163,574 $11,243 $12,636 $23,879 $187,453 10 year funding horizon $163,574 $11,243 $19,828 $31,071 $194,645 5 year funding horizon $163,574 $11,243 $42,190 $53,433 $217,007 The minimum required contribution above is less than interest on the UAL. With no ADP the UAL is projected to increase over the following year. If the minimum UAL payment were split between interest and principal, the principal portion would be negative. This situation is referred to as negative amortization. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the Amortization Schedule and Alternatives section of the report (see columns labeled Current Amortization Schedule).

Fiscal Year 2025-26 Employer Contribution Necessary to Avoid Negative Amortization Estimated
Normal Cost
Minimum UAL
Contribution
ADP1 Total UAL
Contribution
Estimated Total
Contribution
$163,574 $11,243 $3,735 $14,978 $178,552
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would hav e to be less or more than the amount show n to have the same effect on the UAL amortization.

The calculations above are based on the projected UAL as of June 30, 2025,as determined in the June 30, 2023, actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions, and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of year s will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.

Fiscal
Year ADP FiscalYear ADP
2019-20 $0 2022-23 $0
2020-21 $0 2023-242 $0
2021-22 $0
2 Excludes payments made after April 30, 2024
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 14
Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection period. In particular, the investment return beginning with FY 2023-24 is assumed to be 6.80% per year, net of investment and administrative expenses. Future contribution requirements may differ significantly from those shown below. The actual long-term cost of the plan will depend on the actual benefits and expenses paid and the actual investment experience of the fund.

Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2023-24 and Beyond) Fiscal Year 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 Rate Plan 25614 Results
Normal Cost % 13.99% 14.0% 14.0% 14.0% 14.0% 14.0%
UAL Payment $11,243 $15,000 $19,000 $23,000 $23,000 $23,000 For ongoing plans, investment gains and losses are amortized using a 5-year ramp up. For more information, please see Amortization of Unfunded Actuarial Accrued Liability in Appendix A of the Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In years when there is a large investment loss, the relatively small amortization payments during the ramp up period could result in contributions that are less than interest on the UAL (i.e. negative amortization) while the contribution impact of the increase in the UAL is phased in.

The required contribution for FY 2025-26 is less than interest on the UAL, a situation referred to as negative amortization, as explained in the Additional Employer Contributions section earlier in this report. If only the minimum required contribution is made, contributions are not expected to exceed interest on the UAL until FY 2027-28, as shown in the Amortization Schedule and Alternatives section of the report (see columns labelled “Current Amortization Schedule”).

Pension Outlook can help plan and budget pension costs under various scenarios.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 15
Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year. • The assets, liabilities and funded status of the plan are measured as of the valuation date: June 30, 2023. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2025-26.

Reason for Base
Date
Est.

Ramp
Level
2025-26
Ramp
Shape
Escalation
Rate
Amort.

Period
Balance
6/30/23
Expected
Payment
2023-24
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Minimum
Required
Payment
2025-26
Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 19 18,239 0 19,479 1,752 18,993 1,752 Partial Fresh Start 6/30/22 40% Up Only 0.00% 19 157,715 0 168,440 3,621 176,152 7,241 Investment (Gain)/Loss 6/30/23 20% Up Only 0.00% 20 8,598 0 9,183 0 9,807 211 Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 20 19,882 0 21,234 0 22,678 2,039 Total 204,434 0 218,336 5,373 227,630 11,243
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in Allocation of Plan’s Share of Pool’s Experience earlier in this report. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 16
Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded liability payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting th e individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a fresh start, please contact a CalPERS actuary.

The current amortization schedule typically contains both pos itive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future year s, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

The current amortization schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 17
Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 20 Year Amortization 15 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2025 227,630 11,243 227,630 20,469 227,630 23,879
6/30/2026 231,490 15,075 221,955 20,469 218,431 23,879
6/30/2027 231,652 18,905 215,894 20,469 208,607 23,879
6/30/2028 227,867 22,736 209,421 20,469 198,115 23,879
6/30/2029 219,866 22,948 202,508 20,469 186,909 23,879
6/30/2030 211,102 22,948 195,125 20,469 174,941 23,879
6/30/2031 201,742 22,949 187,240 20,469 162,159 23,879
6/30/2032 191,743 22,947 178,819 20,469 148,508 23,879
6/30/2033 181,067 22,948 169,825 20,469 133,929 23,879
6/30/2034 169,664 22,948 160,220 20,470 118,359 23,880
6/30/2035 157,486 22,947 149,960 20,469 101,729 23,879
6/30/2036 144,481 22,948 139,004 20,470 83,969 23,880
6/30/2037 130,590 22,948 127,302 20,470 65,000 23,879
6/30/2038 115,754 22,946 114,804 20,469 44,742 23,879
6/30/2039 99,913 22,949 101,457 20,469 23,107 23,880
6/30/2040 82,991 22,948 87,203 20,470
6/30/2041 64,919 22,947 71,978 20,470
6/30/2042 45,619 22,947 55,718 20,469
6/30/2043 25,007 22,948 38,353 20,469
6/30/2044 2,993 3,093 19,808 20,470
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 415,268 409,386 358,188
Interest Paid 187,638 181,756 130,558
Estimated Savings 5,882 57,080
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 18
Employer Contribution History
The table below provides a recent history of the employer contribution requirements for the plan, as determined by the annual actuarial valuation.Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected. [
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2014 2016 - 17 12.082% $0
06/30/2015 2017 - 18 11.990% 168
06/30/2016 2018 - 19 12.141% 413
06/30/2017 2019 - 20 13.034% 5,051
06/30/2018 2020 - 21 13.044% 4,462
06/30/2019 2021 - 22 13.13% 4,780
06/30/2020 2022 - 23 12.78% 5,392
06/30/2021 2023 - 24 13.54% 0
06/30/2022 2024 - 25 13.76% 5,373
06/30/2023 2025 - 26 13.99% 11,243
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of assets, unfunded accrued liability, funded ratio and annual covered payroll.

Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued Liability
(UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2014 $40,461 $45,388 ($4,927) 112.2% $167,666
06/30/2015 79,143 78,402 741 99.1% 177,754
06/30/2016 124,084 112,578 11,506 90.7% 267,787
06/30/2017 184,498 172,145 12,353 93.3% 212,135
06/30/2018 272,305 246,194 26,111 90.4% 296,984
06/30/2019 353,045 315,252 37,793 89.3% 539,403
06/30/2020 529,051 476,774 52,277 90.1% 667,016
06/30/2021 770,915 802,586 (31,671) 104.1% 685,221
06/30/2022 1,146,990 994,142 152,848 86.7% 1,082,919
06/30/2023 1,516,788 1,312,354 204,434 86.5% 1,029,201
Risk Analysis
• Future Investment Return Scenarios 20
• Discount Rate Sensitivity 21
• Mortality Rate Sensitivity 21
• Maturity Measures 22
• Maturity Measures History 23
• Funded Status – Termination Basis 24
• Funded Status – Low-Default-Risk Basis 25
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 20
Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed to determine the effects of various future investment returns on required employer contributions. The projections below refle ct the impact of the CalPERS Funding Risk Mitigation Policy. The projections also assume that all other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will occur.

Assumed Annual Return
FY 2023-24
through FY 2042-43
Projected Employer Contributions
2026-27 2027-28 2028-29 2029-30 2030-31

3.0% (5th percentile)
Discount Rate 6.80% 6.80% 6.80% 6.80% 6.80%
Normal Cost Rate 14.0% 14.0% 14.0% 14.0% 14.0%
UAL Contribution $16,000 $23,000 $30,000 $35,000 $42,000

10.8% (95th percentile)
Discount Rate 6.75% 6.70% 6.65% 6.60% 6.55%
Normal Cost Rate 14.4% 14.2% 14.6% 14.9% 14.8%
UAL Contribution $14,000 $16,000 $16,000 $0 $0
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single year investment return.

The following table shows the effect of one and two standard deviation investment losses in FY 2023-24 on the FY 2026-27 contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However, the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically, significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the impact of these single year negative returns in years beyond FY 2026-27.

Assumed Annual Return for
Fiscal Year 2023-24
Required
Employer
Contributions
Projected
Employer
Contributions
2025-26 2026-27
(17.2%) (2 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 13.99% 14.0%
UAL Contribution $11,243 $23,000
(5.2%) (1 standard deviation loss)
Discount Rate 6.80% 6.80%
Normal Cost Rate 13.99% 14.0%
UAL Contribution $11,243 $19,000
• Without investment gains (returns higher than 6.8%) in FY 2024-25 or later, projected contributions rates would continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in FY 2023-24.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2026-27 as well as to model other investment return scenarios .

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 21
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.5% and 2.3%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2023, assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of

6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the impact of a 1.0% increase or decrease to the 6.8% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2023
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 34.92% 27.74% 22.31%
b) Accrued Liability $1,928,332 $1,516,788 $1,211,887
c) Market Value of Assets $1,312,354 $1,312,354 $1,312,354 d) Unfunded Liability/(Surplus) [(b) - (c)] $615,978 $204,434 ($100,467) e) Funded Ratio 68.1% 86.5% 108.3%
Sensitivity to the Price Inflation Assumption
As of June 30, 2023
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 29.30% 27.74% 25.06%
b) Accrued Liability $1,598,205 $1,516,788 $1,372,703
c) Market Value of Assets $1,312,354 $1,312,354 $1,312,354 d) Unfunded Liability/(Surplus) [(b) - (c)] $285,851 $204,434 $60,349 e) Funded Ratio 82.1% 86.5% 95.6%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2023,plan costs and funded status under two different longevity scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.

As of June 30, 2023
10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 28.10% 27.74% 27.40%
b) Accrued Liability $1,540,841 $1,516,788 $1,494,416
c) Market Value of Assets $1,312,354 $1,312,354 $1,312,354 d) Unfunded Liability/(Surplus) [(b) - (c)] $228,487 $204,434 $182,062 e) Funded Ratio 85.2% 86.5% 87.8%
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 22
Maturity Measures
As pension plans mature they become more sensitive to risks .Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2022 June 30, 2023

1. Retiree Accrued Liability $0 $0

2. Total Accrued Liability $1,146,990 $1,516,788

Support Ratio June 30, 2022 June 30, 2023

1. Number of Actives 17 14

2. Number of Retirees 0 0

3. Support Ratio [(1) ÷ (2)] N/A N/A
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 23
Maturity Measures (continued)
The actuarial calculations supplied in this communication are based on various assumptions about long -term demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities, retirements, salary increases, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise re quired employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the u ps and downs of investment returns.

Liability Volatility Ratio
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll. Pl ans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes i n liability. For example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded ratio approaches 100%.

Contribution Volatility June 30, 2022 June 30, 2023

1. Market Value of Assets $994,142 $1,312,354

2. Payroll $1,082,919 $1,029,201

3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 0.9 1.3

4. Accrued Liability $1,146,990 $1,516,788

5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 1.1 1.5 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0% N/A 0.8 0.9
06/30/2018 0% N/A 0.8 0.9
06/30/2019 0% N/A 0.6 0.7
06/30/2020 0% N/A 0.7 0.8
06/30/2021 0% N/A 1.2 1.1
06/30/2022 0% N/A 0.9 1.1
06/30/2023 0% N/A 1.3 1.5
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 24
Funded Status – Termination Basis
The funded status measured on a termination basis is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2023. The accrued liability on a termination basis (termination liability) is calculated differently from the plan’s ongoing funding liability. For the termination liability calculation, both compensation and servi ce are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an empl oyer that continues to provide CalPERS retirement benefits to active employees. Unlike the actuarial cost method used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.

A more conservative investment policy and asset allocation strategy was adopted by the board for the Terminated Agency Pool.

The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where the weights are based on matching asset and liability durations as of the term ination date. The discount rates used in the following analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as shown below.

Discount Rate: 3.06%
Price Inflation: 2.50%
Discount Rate: 5.06%
Price Inflation: 2.50%

1. Termination Liability1 $2,512,701 $1,475,931

2. Market Value of Assets (MVA) 1,312,354 1,312,354

3. Unfunded Termination Liability [(1) – (2)] $1,200,347 $163,577

4. Funded Ratio [(2) ÷ (1)] 52.2% 88.9%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial assumptions can be found in Appendix A of the Section 2 report.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 25
Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date using a discount rate based on the yields of high quality fixed income securities with cash flo ws that replicate expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial characteristics to accrued plan costs.

As shown below, the discount rate used for the LDROM is 4.82%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2023, net of assumed administrative expenses.

Selected Measures on a Low-Default-Risk Basis June 30, 2023 Discount Rate 4.82%

1. Accrued Liability2 – Low-Default-Risk Basis (LDROM)
a) Active Members $1,331,159
b) Transferred Members 977,211
c) Separated Members 170,933
d) Members and Beneficiaries Receiving Payments 0
e) Total $2,479,303

2. Market Value of Assets (MVA) 1,312,354

3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $1,166,949

4. Unfunded Accrued Liability – Funding Policy Basis 204,434

5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $962,515 The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued p lan costs at the levels anticipated by the funding policy.

CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769
Rate Plan belonging to the Safety Risk Pool Page 26
Summary of Valuation Data
The table below shows a summary of the plan’s member data upon which this valuation is based:

June 30, 2022 June 30, 2023
Active Members
Counts 17 14
Average Attained Age 33.3 34.7
Average Entry Age to Rate Plan 30.7 31.5
Average Years of Credited Service 2.4 2.9
Average Annual Covered Pay $63,701 $73,514
Annual Covered Payroll $1,082,919 $1,029,201
Present Value of Future Payroll $18,080,738 $16,077,133 Transferred Members 9 12
Separated Members 4 6
Retired Members and Beneficiaries*
Counts 0 0
Average Annual Benefits $0 $0
Total Annual Benefits $0 $0
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities. * Values include community property settlements.

List of Class 1 Benefit Provisions
This plan has the following Class 1 Benefit Provisions:
• None
CalPERS Actuarial Valuation - June 30, 2023
PEPRA Safety Fire Plan of the City of Kingsburg
CalPERS ID: 1210886769

Page 27 ends

Kingsburg City CouncilMarch 19, 2025

Kingsburg City Council
March 19, 2025