Disability Income Plan Principal Results of Actuarial Valuation as - - PowerPoint PPT Presentation

▶

Dec 18, 2023 822 likes •910 views

Disability Income Plan Principal Results of Actuarial Valuation as of December 31, 2012 October 17, 2013 Board of Trustees Meeting Larry Langer and Mike Ribble Active Members and Payroll $15,000,000,000 400,000 $12,000,000,000 320,000

SLIDE 1

Disability Income Plan Principal Results of Actuarial Valuation as of December 31, 2012

October 17, 2013 Board of Trustees Meeting Larry Langer and Mike Ribble

SLIDE 2

Active Members and Payroll

Disability Income Plan – December 31, 2012 Valuation Results 1

$0 $3,000,000,000 $6,000,000,000 $9,000,000,000 $12,000,000,000 $15,000,000,000 80,000 160,000 240,000 320,000 400,000

2012 2011 2010 2009 2008

Reported Compensation Active Members

Actives Reported Compensation

Note: Includes active members of the Teachers’ and State Employees’ Retirement System and the Optional Retirement Program.

SLIDE 3

Disabled Members Receiving Benefits

Disability Income Plan – December 31, 2012 Valuation Results 2

$0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 2,000 4,000 6,000 8,000 10,000

2012 2011 2010 2009 2008

Annual Payment Disabled Members

Members Benefits

SLIDE 4

Assets

Disability Income Plan – December 31, 2012 Valuation Results 3

$0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000

2012 2011 2010 2009 2008

Actuarial Value of Assets Market Value of Assets

Market Value Actuarial Value

SLIDE 5

Disability Income Plan – December 31, 2012 Valuation Results 4

Liabilities for Disabled Members Receiving Benefits and Actuarial Value of Assets

$0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000

2012 2011 2010 2009 2008

Actuarial Value of Assets Liabilities for Disabled Beneficiaries

Liabilities Actuarial Value

SLIDE 6

Deficit / (Surplus)

Disability Income Plan – December 31, 2012 Valuation Results 5

$90,000,000
$70,000,000
$50,000,000
$30,000,000
$10,000,000

$10,000,000 $30,000,000

2008 2009 2010 2011 2012

Value

Deficit/(Surplus)

Contribution rate of 0.41% of payroll is sufficient to cover future disability payments after reflecting surplus.

SLIDE 7

Key Takeaways

Market value returns of 6.4%
Compared to 5.75% assumed
Higher Surplus than expected
Higher Funded Ratio than expected
Payroll remained flat
Compared to 3% assumed increase
Higher Surplus than expected
Higher Funded Ratio than expected
Funded Ratio increased from 79.4% (12/31/2011) to 86.0%

(12/31/2012)

Annual Required Contribution Rate decreased from 0.43% of

payroll to 0.41% of payroll

Disability Income Plan – December 31, 2012 Valuation Results 6

SLIDE 8

THANK YOU

Questions?

Disability Income Plan – December 31, 2012 Valuation Results 7