Presentation of 2009 Actuarial Valuation Results Systems - - PowerPoint PPT Presentation
Presentation of 2009 Actuarial Valuation Results Systems Administered by Public Employees Retirement Board Presented By Stephen McElhaney, FSA October 29, 2009 Discussion Topics Covered Systems Historical Trends 2009
Presented By Stephen McElhaney, FSA October 29, 2009
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Montana Public Employees Retirement Board
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20 Volunteer Firefighters’ Compensation Act 159 Firefighters’ United Retirement System 162 Municipal Police Officers’ Retirement System 62 Game Warden’s and Peace Officers’ Retirement System 151 Sheriffs’ Retirement System 75 Highway Patrol Retirement System 47 Judges’ Retirement System $2,999 Public Employees’ Retirement System
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Montana Public Employees Retirement Board
84% 90% 95% 88% 85% 87% 125% 100%
$0 $0 $1, $1,000 000 $2, $2,000 000 $3, $3,000 000 $4, $4,000 000 $5, $5,000 000 $6, $6,000 000 $7, $7,000 000
2 2 2 2 1 1 2 2 2 2 2 2 3 3 2 2 4 4 2 2 5 5 2 2 6 6 2 2 7 7 2 2 8 8 2 2 9 9
Millions
AAL AAL PV PVFB AV AVA MVA MVA
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Montana Public Employees Retirement Board $0 $0 $20 $20 $40 $40 $60 $60 $80 $80 $100 $100 $120 $120 $140 $140 $160 $160 $180 $180
2 2 2 2 1 1 2 2 2 2 2 2 3 3 2 2 4 4 2 2 5 5 2 2 6 6 2 2 7 7 2 2 8 8 2 2 9 9 2 2 1 1 Millio llions 6. 6.70% 70% 6. 6.75% 75% 6. 6.80% 80% 6. 6.85% 85% 6. 6.90% 90% 6. 6.95% 95% 7. 7.00% 00% 7. 7.05% 05% 7. 7.10% 10% 7. 7.15% 15% 7. 7.20% 20%
EE Cont Contri ribu bution
ER Cont Contri ribu bution
St State Cont e Contri ribu bution
ER Ra ER Rate
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Montana Public Employees Retirement Board
10, 10,000 000 20, 20,000 000 30, 30,000 000 40, 40,000 000 50, 50,000 000 60, 60,000 000
2 2 2 2 1 1 2 2 2 2 2 2 3 3 2 2 4 4 2 2 5 5 2 2 6 6 2 2 7 7 2 2 8 8 2 2 9 9
$0 $0 $200 $200 $400 $400 $600 $600 $800 $800 $1, $1,000 000 $1, $1,200 200
Millions
Ac Actives Te Term Ve Vested Retirees rees Pay Payroll
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Montana Public Employees Retirement Board
Montana Public Employees’ Retirement System Summary of Principal System Results Valuation as of: June 30, 2008*** June 30, 2009 % Change Participant Counts Active Members 28,293 28,983 2.4% Disabled Members* 290 279
Retirees and Beneficiaries* 16,337 16,796 2.8% Terminated Vested Members 2,579 2,476
Terminated Non-Vested Members 6,268 5,670
Total** 53,767 54,204 0.8% Annual Salaries of Active Members $ 994,314,000 $ 1,053,173,964 5.9% Average Annual Salary $ 35,143 $ 36,338 3.4% Annual Retirement Allowances for Retired Members and Beneficiaries $ 185,155,000 $ 201,412,083 8.8% Assets and Liabilities Actuarial Accrued Liability (AAL) $ 4,504,743,000 $ 4,792,819,291 6.4% Actuarial Value of Assets (AVA) 4,065,307,000 4,002,212,253
Unfunded AAL (AVA/AAL) $ 439,436,000 $ 790,607,038 79.9% Less: PCR-UAL 17,500,000 16,188,870
Net Unfunded AAL $ 421,936,000 $ 774,418,168 83.5% Funded Ratio 90.25% 83.50% Present Value of Accrued Benefits (PVAB) N/A $ 4,060,778,783 Market Value of Assets $ 3,852,532,000 2,998,626,255
Unfunded PVAB N/A $ 1,062,152,528 Accrued Benefit Funding Ratio N/A 73.84% Ratio of Actuarial Value to Market Value 105.52% 133.47%
(See following page for footnotes)
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Montana Public Employees Retirement Board
Montana Public Employees’ Retirement System Summary of Principal System Results Valuation as of: June 30, 2008*** June 30, 2009 % Change Contributions as a Percentage of Payroll Statutory Funding Rate 13.935% 14.070% Less: Transfer to DB Ed Fund 0.040% 0.040% Net Statutory Funding Rate 13.895% 14.030% Normal Cost Rate 12.130% 12.160% Available for Amortization of UAL 1.765% 1.870% Period to Amortize 24.8 years Does not amortize Projected 30-year Level Funding Rate 13.750% 16.420% Projected Shortfall (Surplus) (0.185%) 2.350%
* Based on PERA categorization for the annual report. For actuarial valuation purposes, 793 members in 2008 and 784 members in 2009 were valued as disabled members with offsetting reductions to the number of retired members. ** The total number of members processed in the 2009 valuation was 54,130 compared to 54,204 above being used for the annual report. A reconciliation of this difference will appear in the full actuarial valuation report. *** All results reported under heading June 30, 2008 were produced by the prior actuary.
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Montana Public Employees Retirement Board
6.90 90% 6.90% 0% 6. 6.90% 90% 6.90 90% 6.90% 90% 6.90 90% 6.90% 0% 6. 6.90% 90% 6.90 90% 6.90% 0% 6. 6.90% 90% 6.90 90% 6.90% 90% 6.90 90% 6.90% 0% 6. 6.90% 90% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13% 13%
0% 0% 5% 5% 10 10% 15 15% 20 20% 25 25% 30 30%
Me Member R Rate Employer er C Cont ntribu bution R Rate GASB SB M Mini nimum 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
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Montana Public Employees Retirement Board
6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 6. 6.90% 90% 7. 7.13% 7.13% 3% 7. 7.13% 13% 7. 7.13 13% 7.13% 7. 7.13% 7.13% 3% 7. 7.13 13% 7.13% 7.13% 7.13% 13% 7. 7.13 13% 7.13% 7. 7.13 13% 7.13% 3% 7.13% 13%
0% 0% 5% 5% 10% 10% 15% 15% 20% 20% 25% 25% 30% 30%
Me Member R Rate Employer C Cont ntribu bution R Rate GASB SB M Mini nimum 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
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Montana Public Employees Retirement Board
6.90% 90% 6.90% 90% 6.90% 6.90% 0% 6. 6.90 90% 6.90% 6.90 90% 6.90% 90% 6.90% 90% 6.90% 6.90% 0% 6. 6.90% 6.90% 6.90% 90% 6.90% 90% 6.90% 7.13 13% 7.13% 7.13% 7.13% 3% 7. 7.13% 13% 7. 7.13% 13% 7. 7.13 13% 7.13% 7.13 13% 7.13% 3% 7. 7.13% 7.13% 3% 7. 7.13% 13% 7. 7.13 13% 7.13% 7.13 13%
0% 0% 5% 5% 10% 10% 15% 15% 20% 20% 25% 25% 30% 30%
Me Member R Rate Employer C Cont ntribu bution R Rate GA GASB M Minimum 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
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Montana Public Employees Retirement Board
25 25% $0 $0 $2 $2 $4 $4 $6 $6 $8 $8 $1 $10 $1 $12 $1 $14
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
84% 76% 67% 62% 61% 61% 60% 60% 59% 58% 57% 56% 55% 54% 53% 52% 51% 50% 49% 47% 46%
Ac tu tua ria l Lia l Lia bil ility ity AV AVA MV MVA
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Montana Public Employees Retirement Board
25% 25% $0 $0 $2 $2 $4 $4 $6 $6 $8 $8 $10 $10 $12 $12 $14 $14
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
84% 76% 68% 63% 64% 64% 65% 65% 66% 66% 66% 67% 67% 67% 68% 68% 69% 69% 70% 70% 71%
Ac tu tua ria ia l Lia l Lia bility ility AV AVA MV MVA
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Montana Public Employees Retirement Board
30 30% $0 $0 $2 $2 $4 $4 $6 $6 $8 $8 $1 $10 $1 $12 $1 $14
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
84% 76% 66% 60% 59% 58% 56% 55% 53% 51% 49% 47% 45% 43% 41% 39% 37% 34% 32% 30% 27%
Ac tua ria ia l Li l Lia bility AV AVA MV MVA
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84% 72% 65% 93% 98% 75% 157%
2008 Funded Ratio
6.8 5.0 81% VFCA 12.7 11.3 69% FURS 22.1 18.6 62% MPORS Does not amortize 13.0 88% GWPORS Does not amortize 16.3 90% SRS 21.5 17.4 72% HPORS 0.0 0.0 148% JRS
2009 Amortization Period 2008 Amortization Period 2009 Funded Ratio
Montana Public Employees Retirement Board
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Montana Public Employees Retirement Board
$0. $0.00 00 $0. $0.02 02 $0. $0.04 04 $0. $0.06 06 $0. $0.08 08 $0. $0.10 10 $0. $0.12 12 $0. $0.14 14 $0. $0.16 16 $0. $0.18 18
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
148% 136% 123% 115% 117% 118% 120% 121% 123% 125% 127% 129% 131% 133% 135% 137% 139% 141% 143% 145% 147%
Ac tu tu a ria ia l Lia l Lia bility ility AV AVA MV MVA
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Montana Public Employees Retirement Board
60% 60% $0. $0.0 $0. $0.1 $0. $0.1 $0. $0.2 $0. $0.2 $0. $0.3 $0. $0.3 $0. $0.4
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
72% 67% 60% 56% 56% 57% 58% 58% 59% 59% 60% 61% 61% 62% 63% 63% 64% 64% 65% 66% 67%
Ac tua ria ia l Li l Lia bili ility ty AV AVA MV MVA
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Montana Public Employees Retirement Board
35 35% $0 $0.0 $0 $0.1 $0 $0.2 $0 $0.3 $0 $0.4 $0 $0.5 $0 $0.6 $0 $0.7 $0 $0.8 $0 $0.9 $1 $1.0
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
90% 82% 73% 68% 68% 68% 68% 68% 68% 68% 68% 68% 68% 68% 67% 67% 67% 66% 66% 66% 65%
Ac tu tua ria ia l Li l Lia bility ility AV AVA MV MVA
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Montana Public Employees Retirement Board
25% 25% $0. $0.0 $0. $0.1 $0. $0.2 $0. $0.3 $0. $0.4 $0. $0.5 $0. $0.6
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
88% 81% 75% 72% 73% 74% 75% 76% 77% 78% 78% 79% 79% 80% 80% 81% 81% 82% 82% 82% 83%
Ac tua ria ia l Li l Lia bili ility ty AV AVA MV MVA
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Montana Public Employees Retirement Board
60 60% $0 $0.0 $0 $0.2 $0 $0.4 $0 $0.6 $0 $0.8 $1 $1.0 $1 $1.2
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
62% 58% 54% 52% 54% 55% 57% 58% 60% 62% 63% 65% 66% 68% 69% 71% 72% 74% 76% 77% 79%
Ac tu tua ria ia l Li l Lia bility ility AV AVA MV MVA
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Montana Public Employees Retirement Board
$0. $0.0 $0. $0.2 $0. $0.4 $0. $0.6 $0. $0.8 $1. $1.0 $1. $1.2
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
69% 65% 61% 59% 62% 64% 66% 68% 71% 73% 75% 78% 80% 82% 85% 87% 90% 92% 95% 97% 100%
Ac tu tua ria ia l Li l Lia bil ility AV AVA MV MVA
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Montana Public Employees Retirement Board
$0 $0.000 00 $0 $0.005 05 $0 $0.010 10 $0 $0.015 15 $0 $0.020 20 $0 $0.025 25 $0 $0.030 30 $0 $0.035 35 $0 $0.040 40 $0 $0.045 45 $0 $0.050 50
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
81% 76% 69% 64% 65% 66% 67% 69% 70% 71% 72% 73% 74% 75% 77% 78% 80% 82% 84% 86% 88%
Ac tu tu a ria l Li Lia bility ility AV AVA MV MVA