CalPERS 2021 Actuarial
Results
Finance Committee
November 1, 2022
Objectives
• Review :
• June 30, 2021 Valuation Results
• Required Contributions for
• Miscellaneous Plan
• Safety – Classic Plan
• Safety PEPRA Plan
• Projection of Amortization Payments
• Update on City’s pension liability
position
Summary of June 30, 2021 Valuation Results
Plan Actuarial Accrued
Liability
Market Value of
Assets
Unfunded Accrued
Liability
Funded Ratio
Miscellaneous 336.4 256.0 80.4 76.1%
Safety – Classic 332.7 249.8 82.9 75.1%
Safety – PEPRA 2.8 2.9 (0.1) 103.7%
Required Contribution – Miscellaneous
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Normal Cost % 11.37% 11.1% 10.9% 10.7% 10.4% 10.2%
UAL Payment $8,695,006 $8,692,000 $7,791,000 $7,623,000 $7,248,000 $7,522,000 Projected Future Employer Contributions
(Assumes 7.00% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28
Normal Cost % 9.7% 9.5% 9.3% 9.1% 8.9%
UAL Payment $10,051,000 $10,696,000 $10,434,000 $10,910,000 $11,175,000 Last Year:
Required Contribution – Safety Classic
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Normal Cost % 29.09% 29.1% 29.1% 29.1% 29.1% 29.1%
UAL Payment $8,347,033 $8,361,000 $8,165,000 $7,950,000 $7,621,000 $7,888,000 Projected Future Employer Contributions
(Assumes 7.00% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28
Normal Cost % 25.6% 25.6% 25.6% 25.6% 25.6%
UAL Payment $9,054,000 $9,668,000 $10,065,000 $10,442,000 $10,702,000 Last Year:
Required Contribution – Safety PEPRA
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Normal Cost % 14.5% 14.5% 14.5% 14.5% 14.5% 14.5%
UAL Payment $16,093 $16,000 $16,000 $0 $0 $0
Last Year:
Projected Future Employer Contributions
(Assumes 7.00% Return for Fiscal Year 2021-22 and Beyond) Fiscal Year 2023-24 2024-25 2025-26 2026-27 2027-28
Normal Cost % 13.7% 13.7% 13.7% 13.7% 13.7%
UAL Payment $15,000 $18,000 $20,000 $21,000 $22,000
Common Themes for All Three Plans
• Investment earnings were 21.3%
• Lower UAL payment projections
• Overall pension liability reduced
• 2022 markets have been volatile
• Likely to cause uncertainty for future UAL
payments
Projection of Amortization Payments
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2022-23 2024-25 2026-27 2028-29 2030-31 2032-33 2034-35 2036-37 2038-39 2040-41 2042-43 2044-45 Total in $000s
Fiscal Year
Summary
• Total Unfunded Actuarial Liability is $163.2 M
• Strong investment earnings in 2021 have resulted in lower UAL contribution projections
• Volatile investment performance in 2022 will impact future UAL contribution projections in next year’s actuarial results • Approximately 20 more years of liability payments if no extra payments are made
Questions