Actuarial - CalPERS - 2004-07-31 •
NEW AGENCY
ACTUARIAL VALUATION
As of July 31, 2004
for the
MISCELLANEOUS PLAN,
2% @ 55 FULL FORMULA,
100% PRIOR SERVICE
of the
COSTA MESA SANITARY DISTRICT
Ca1PERS
California Public Employees' Retirement System
P.O Box 942709
Sacramento, CA 94229-2709
(916) 326-3420
CALPERS ACTUARIAL VALUATT•i1N
MISCELLANEOUS PLAN, 2%@ 55 FULL FORMULA, 100% PRIOR SERVICE OF THE COSTA MESA SANITARY
DISTRICT
Actuarial Certification
To the best of my knowledge, this report is complete and accurate and contains sufficient information to
fully and fairly disclose the funded condition of the MISCELLANEOUS PLAN, 2% @ 55 FULL
FORMULA, 100% PRIOR SERVICE OF THE COSTA MESA SANITARY DISTRICT This valuation is
based on the employer, data and asset information provided by the agency and the benefits provided under
this contract with CaIPERS. It is my opinion that the valuation has been performed in accordance with
generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial
Standards Board, and that the assumptions and methods are internally consistent and reasonable for this
plan.
Richard Santos
Associate Pension Actuary
April 14,2004 Fin Proc ID 170113 Page 1
CALPERS ACTUARIAL VALUATT •
MISCELLANEOUS PLAN,2° @ 55 FULL FORMULA, 100%PRIOR SERVICE OF THE COSTA MESA SANITARY
DISTRICT
Purpose of the Report
This actuarial valuation of the MISCELLANEOUS PLAN, 2% (%7i 55 FULL FORMULA, 1009 PRIOR
SERVICE OF THE COSTA MESA SANITARY DISTRICT of the California Public Employees
Retirement System (CaIPERS)was performed by CaIPERS staff actuaries as of the proposed contract date
of July 1 2004 in order to:
set forth the actuarial assets and funding liabilities of this plan as of July 31 2004,
and,
• establish the actuarially required contribution rates of this plan.
Use of this report for other purposes, such as for disclosure under Governmental Accounting Standards
Board Statement No.27 is inappropriate.
Numbers in exhibits may not add due to rounding.
Employer Contribution Rate
The actuarially required contribution, both in projected dollars and as a rate of projected payroll are shown
below These rates except as indicated in the cover letter will continue to be in effect until June 30, 2006,
unless the contract is amended, the demographics are significantly different at the actual contract date, or
actuarial assumptions are changed If the actual contract effective date is delayed beyond the proposed
effective date of July I 2004 by more than 90 days, the employer contribution rates shown below are void
and new rates must be calculated.
Expected Percent of
Dollar Projected
Amount Payroll
Payment for Normal Cost $ 62.845 1 .6949
Payment on Amortization Bases 0 0 000°,0
Total (not less than zero) $ 62,845 I3 694%
The employer contribution rates are affected by a number of factors: the demographics of the covered
members,the provisions of the contract,the assets of the employer,the member contributions and the
actuarial assumptions and methods. The demographics of the members refer not only to the number of the
members, but also to each member s age,gender service, and salary Actuarial assumptions and methods
are used to project the demographics and the assets in to the future. Your future employer contribution
rates will differ from the rates provided above whenever gains or losses occur Gains and losses occur
whenever actual experience varies from the actuarial expectations(assumptions). Gains cause the employer
contribution rate to decrease; while losses cause the employer contribution rate to increase.
The actuarial methods and assumptions used in determining your rate can be found in Appendix A. A
summary of the contract provisions used in determining your rate can be found in Appendix B.
April 14,2004 Fin Proc ID 17011 Page 2
CALPERS ACTUARIAL VALUATI N
MISCELLANEOUS PLAN.2° @ 55 FULL FORMULA, 100° PRIOR SERVICE OF THE COSTA MESA SANITARY
DISTRICT
Summary of Results
Shown below are the key valuation results.
General Information July 31,2004
Members Included in the Valuation*
Active Members 10
Transfers 0
Vested Terminations 0
Receiving Payments 0
Total 10
Annual Covered Pa roll $ 458.920
Average Annual Pay $ 4$892
Average Attained Age for Actives 53 87
Average Entry Age for Actives 53 79
Total As'cts at Market V aluc $ 0
Retirement Program
Present Value,of Projected Benefits $ 673.244
Entry Agc Normal Accrued Liabilitt $ 0
Actuarial Value of Assets 0
Unfunded Liabilitv(tEscess Assets) $ 0
Required Contributions
Employer Contribution Required On Projected Dollars)
Payment for Normal Cost $ 62 845
Payment on Amortization Bases 0
Total (not les than zero) $ 6'.845
Employer Contribution Required(Percent of Projected Payroll)
Payment for Normal Cost 13.694"
Payment on the.Amortization Basc ** 0 000%
Total (not less than zero) 13.694",
Counts if members winded the valuation are counts if rec rds pr cd hs the aluatn Multiple records mac st fo
tho th ha n than up Th dries not result in a double nhm,of liabilities Counts do not
include beneliciarie of 4th or Indexed levels 1959 Survivor Benefit.
The payment shown is tho amortization of the unfunded liabdits if any.over the period ending 2014.
April 14,2004 Fin Proc ID 170113 Page 3
CALPERS ACTUARIAL VALUA7 •
MISCELLANEOUS PLAN, 2° 55 FULL FORMULA, 100% PRIOR SERVICE OF THE COSTA MESA SANITARY
DISTRICT
Development of Accrued and Unfunded Liabilities for the Retirement Program
I Present Value of Benefits
a)Actives, Transfers and Vested Terminated $ 673,244
b) Receiving Payments 0
c)Total $ 673,244
2. Present Value of Future Employer Normal Costs $ 440,367
3 Present Value of Future Employee Contributions 232,877
4 Entry Age Normal Accrued Liability $ 0
[(1c) (2) (3)]
5 Actuarial Value of Assets
a) Employer Reserves $ 0
h)Active Employee Account Balances 0
c)Total Valuation Assets $ 0
6 Unfunded Accrued Liability/(Excess Assets) $ 0
[(4) (5c)]
April 14,2004 Fin Proc ID 170113 Page 4
Appendix A
STATEMENT OF ACTUARIAL
DATA, METHODS AND ASSUMPTIONS
CALPERS ACTUARIAL VAL ATION JUNE 30,2002 • APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
DATA
As stated in the Actuarial Certification, the data which serves as the basis of this valuation has been obtained
from the various CaIPERS databases. We have reviewed the valuation data and believe that it is reasonable and
appropriate in aggregate. We are unaware of any potential data issues that would have a material effect on the
results of this valuation, except that data does not contain information about reciprocal systems. Therefore,
salary information in these cases may not be accurate. This situation is relatively infrequent, however and
when it does occur generally does not have a material impact on the employer contribution rates.
ACTUARIAL METHODS
Funding Method
The actuarial funding method used for the Retirement Program is the Entry Age Normal Cost Method. Under
this method,projected benefits are determined for all members and the associated liabilities are spread in a
manner that produces level annual cost as a percent of pay in each year from the age of hire(entry age)to the
assumed retirement ago The cost allocated to the current fiscal year is called the normal cost.
The actuarial accrued liability for active members is then calculated as the portion of the total cost of the plan
allocated to prior years. The actuarial accrued liability for members currently receiving benefits, for active
members beyond the assumed retirement age, and for members entitled to deferred benefits, is equal to the
present value of tilt_ benefits expected to be paid. No normal costs are applicable for these participants
The excess of the total actuarial accrued liability over the actuarial value of plan assets is called the unfunded
actuarial accrued liability Funding requirements are determined b\ adding the normal cost and an amortization
of the unfunded liability as a level percentage of assumed future payrolls. All changes in liability due to plan
amendments, changes in actuarial assumptions,or changes in actuarial methodology are amortized separately
over a 20-year period. In addition,all gains or losses are tracked and 10° of the net unamortized gain or loss
will be amortized each year Finally if a plan s accrued liability exceeds the actuarial value of assets, the
annual contribution with respect to the total unfunded liability may not be less than the amount produced by a
30-year amortization of the unfunded liability
An exception to the funding rules above is used whenever the application of such rules results in
inconsistencies. In these cases a `fresh start' approach is used. This simply means that the current unfunded
actuarial liability is projected and amortized over a set number of years. As mentioned above, if the annual
contribution on the total unfunded liability was less than the amount produced by a 30-year amortization of the
unfunded liability the plan actuary would implement a 30-year fresh start. In addition, a fresh start is needed in
the following situations:
I) when a positive payment would be required on a negative unfunded actuarial liability(or conversely a
negative payment on a positive unfunded actuarial liability); or
2) when the fresh start is being used to avoid a negative total rate.
It should be noted that the actuary may choose to use a fresh start under other circumstances. In all cases,the
period of the fresh start is chosen by the actuary according to his or her best judgement, and will not be less than
five years nor greater than 30 years.
The actuarial funding method for the 1 and 2°d Level 1959 Survivor Benefit is the modified Term Insurance
Method. There is no actuarial accrued liability for active members,all liability is due to survivors of former
active members. The normal cost is calculated as the amount needed to provide benefits to survivors of deaths
expected in the next one-year period.
June 30, 2002 A-I
CALPERS ACTUARIAL V AL4ATION JUNE 30.2002 APPENDIX A
•
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Asset Valuation Method
In order to dampen the effect of short term market value fluctuations on employer contribution rates, the
following asset smoothing technique is used. First an Expected Value of Assets is computed by bringing
forward the prior year s Actuarial Value of Assets and the contributions received and benefits paid during the
year at the assumed actuarial rate of return. The Actuarial Value of Assets is then computed as the Expected
Value of Assets plus one-third of the difference between the actual Market Value of Assets and the Expected
Value of Assets as of the valuation date. However in no case will the Actuarial Value of Assets be less than
909 or greater than 1 10%of the actual Market Value of Assets.
MISCELLANEOUS
Superfunded Status
If the rate plan is superfunded(actuarial value of assets exceeds the present value of benefits), as of the most
recently completed annual valuation, the employer may cover their employees member contributions(both
taxed and tax-deferred) using their employer assets during the fiscal year for NS hich this valuation applies. This
would entail transferring assets within the Public Employees Retirement Fund(PERF) from the employer
account to the member accumulated contribution accounts. This change was implemented effective January I
1999 pursuant to Chapter 231 (Assembly Bill 2099)which added Government Code Section 20316.
Internal Revenue Code Section 415
The limitations on benefits imposed by Internal Revenue Code Section 415 were not taken into account in this
valuation. The effect of these limitations has been deemed immaterial on the overall results of this valuation.
June 30,2002 A 2
•
CALPERS ACTUARIAL VA•IION JUNE 30.2002 APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
ACTUARIAL ASSUMPTIONS
Economic Assumptions
Investment Return
8.25%compounded annually(net of expenses) This assumption is used for all plans.
Salary Growth
Annual increases that vary by category and duration of service. For Safety members,annual increases
are also dependent on entry age. The assumed increases are shown below
Annual Percent Increase
Public Agency Public Agency Safety
Duration of Service Miscellaneous Entry under Age 40 Entry 40& Over
0 through 2 14.200% 11.587% 4.272%
3 through 6 6.363 7 408 4272
7 6.363 5 161 4.272
8 through 29 4 795 5 161 4.272
30+ 750 5 161 4272
Overall Payroll Growth
3 75%compounded annually(used in projecting the payroll over which the unfunded liability is
amortized). This assumption is used for all plans.
Inflation
3.50°%compounded annually This assumption is used for all plans.
Miscellaneous Loading Factors
Credit for Unused Sick Leave
Final Average Salary is increased by 1%for those agencies that have accepted the provision providing
Credit for Unused Sick Leave.
Conversion of Employer Paid Member Contributions(EPMC)
Final Average Salary is increased by the Employee Contribution Rate for those agencies that have
contracted for the provision providing for the Conversion of Employer Paid Member Contributions
(EPMC)during the final compensation period.
Norris Decision (Best Factors)
Employees hired prior to July 1 1982 have projected benefit amounts increased in order to reflect the
use of `Best Factors for these employees in the calculation of optional benefit forms. This is due to a
1983 Supreme Court decision, known as the Norris decision, which required males and females to be
treated equally in the determination of benefit amounts Consequently anyone already employed at
that time is given the best possible conversion factor when optional benefits arc determined. No
loading is necessary for employees hired after July I 1982.
June 30, 2002 A 3
CALPERS ACTUARIAL VAL TION JUNE 30. 2002 * APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Demographic Assumptions
Post-Retirement Mortality
Rates vary by age and sex for healthy benefit recipients and for non-industrially disabled(disability not
job-related)retirees. Rates vary by age for retirees who are industrially disabled(disability isjob-
related). See sample rates in table below These rates are used for all plans.
Non-Industrially Industrially
Disabled Disabled
Healthy Recipients (Not Job-Related) (Job-Related)
Age Male Female Male Female Male& Female
50 0.0052 0.0021 0.0301 0 0177 0.0054
55 0 0073 0 0034 0.0327 0.0189 0.0089
60 0.0102 0 0055 0.0355 0.0203 0.0145
65 0 0146 0.0086 0.0396 0.0239 0.0240
70 0.0248 0.0136 0.0497 0.0297 0.0361
75 0.0419 0.0228 0.0706 0.0402 0.0531
80 0.0685 0.0390 01085 0.0614 0.0809
85 0.1064 0.0701 0.1600 0.1074 01107
90 0.1651 0.1259 0.2276 01944 01600
95 0.2303 0.1842 0.3220 0.3134 0.2515
100 03212 0.2930 0.4659 0 4575 0 3950
Marital Status
For active members, a percentage married upon retirement is assumed according to the following table.
Member Category Percent Married
Miscellaneous Member 85°
Local Police 909
Local Fire 90%
Other Local Safety 90%
School Police 90%
Age of Spouse
It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for
all plans.
Separated Members
It is assumed that members refund immediately if non-vested, retire immediately if eligible,or retire
at the earliest retirement age if not eligible.
June 30, 2002 A-4
CAI.PF.RS ACTUARIAL VAL LION JUNE 30. 2002 APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Miscellaneous 2%@ 60
Service Retirement
Rates vary by age and sex See table below
Aye Male Female Aee Male Female
50 0.02654 0.03684
51 0.01228 0.02559 61 0.12426 0.08696
52 0.01834 0.02773 62 0.23818 0.18980
53 0.01619 0.03078 62 0.21037 0 17706
54 0.02251 0.03071 64 0.14311 0 12882
55 0.0481 0.05390 65 0.24399 0 23837
56 0.03957 0.04576 66 0 1 ,820 0 14190
57 0 04788 0 04213 67 0.11208 0.14001
58 0.05500 0.06735 68 0.11736 0.10330
59 0.06811 0.06523 69 0.09036 0.12344
60 0.12807 0.09825 70 100000 1.00000
Termination with Refund
Rates vary by entry age, sex and service. See sample rates in tables below
Termination with Refund(Male)
Entry Years of Service
Age 0-I 1 2 2 3 3-4 4-5 5 or more
20 0.07141 015327 010537 0.09504 0.07720 0.06393
25 0.07018 0 14350 0 09987 0 08769 0.07244 0.04386
0.06896 0 13435 0 09465 0.08090 0 06797 0 03009
35 0.06777 0 12578 0.08971 0.07464 0 06377 0 02064
40 0.06660 011776 0.08502 0.06886 0.05984 0.01416
45 0.06544 011025 0.08058 0.06353 0.05615 0.00971
50 0.06431 0.10322 0.07637 0.05862 0.05268 0.00666
55 0.06320 0.09664 0.07238 0.05408 0.04943 0.00457
60 0.06211 0.09048 0.06860 0.04990 0.04638 0.00314
Termination with Refund (Female)
Entry Years of Service
Age 0-I 1 2 2 3 3-4 4-5 5 or more
20 0.08630 018606 015121 012665 0.11838 0.07966
25 0.08532 017473 0.13666 0.11372 0.09983 0.05601
30 0.08435 0.16410 0.12350 0.10211 0.08419 0.03939
35 0.08339 015411 0.11162 0.09169 0.07099 0.02770
40 0.08245 014473 010087 0.08233 0.05987 0.01948
45 0.08151 0 13592 0.09116 0.07392 0.05049 0 01370
50 0.08059 0.12765 0.08239 0.06638 0 04257 0.00963
55 0.07967 0.11988 0.07446 0.05960 0.03590 0.00677
60 0.07877 0.11258 0.06729 0.05352 0.03028 0.00476
June 30,2002 A-5
CALPERS ACTUARIAL VALTION JUNE 30.2002 •
APPENDIX A
STATEMENT OF AC'ft'ARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Miscellaneous 2% @ 60(continued)
Non-Industrial (Not Job-Related) Death, Non-Industrial(Not Job-Related) Disability Termination
with Vested Deferred Benefits
Rates vary by age and sex. See sample rates in table below
Male Female
Non- Non- Non- Non-
Industrial Industrial Termination Industrial Industrial Termination
(Not Job- (Not Job- with Vested (Not Job- (Not Job- with Vested
Attained Related) Related) Deferred Related) Related) Deferred
Age Death Disability Benefits Death Disability Benefits
20 0.00027 0.00048 0.02023 0.00007 0.00032 0 03299
25 0.00039 0.00070 0.01818 0.00012 0.00047 0.02910
30 0.00055 0.00102 0.01633 0.00018 0.00069 0.02567
35 0.00078 0.00148 0.01467 0.00028 0.00102 0 02264
40 0 00110 0.00215 0.01318 0.00044 0.00150 0.01997
45 0.00155 0.00313 0.01184 0.00069 0.00220 0.01762
50 0.00219 0.00456 0 01064 0.00108 0.00322 0.01554
55 0.00310 0.00663 0.00956 0.00169 0.00473 0.01371
60 0.00438 0.00000 0.00859 0.00264 0.00000 0.01209
Industrial(Job-Related) Disability
Rates vary by age and sex. Rates are zero unless the agency has specifically contracted for Industrial
Disability benefits. If so, each Non-Industrial Disability rate shown above will be split into two
components. 50%will become the Non-Industrial Disability rate and 50° will become the Industrial
Disability rate.
Industrial(Job-Related) Death
Rates vary by age and sex. Rates are zero unless the agency has specifically contracted for Industrial
Death benefits. If so, each Non-Industrial Death rate shown above will be split into two components
99%will become the Non-Industrial Death rate and 1 will become the Industrial Death rate.
June 30, 2002 A-6
•
CALPERS ACTUARIAL VAILISTION JUNE 10.2002 APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Miscellaneous 2%@ 55,2.5% (rh 55,2.7%(th 55,3% @ 60
Service Retirement
Rates vary by age and sex. See table below
Male Retirement Rates
Aire 2% 2 55 2.5%@ 55 2.7%([D 55 3%@ 60
50 0.03466 0.05000 0.05000 0.05000
51 0.01617 0.02000 0.02000 0.02000
52 0.02439 0.03000 0.03000 0.03000
53 0.02177 0.03000 0.03000 0.03000
54 0.03053 0.04000 0.04000 0.04000
55 0.06593 0.08000 0.09000 0.08000
56 0.05232 0.06000 0.07000 0.07000
57 0.06106 0.07000 0 08000 0.08000
58 0.06745 0 08000 0.08000 0.09000
59 0.08032 0.09000 0.10000 011000
60 0.14485 0.16000 0.17000 019000
61 013474 0.15000 016000 017000
62 0.24803 0.26000 0.28000 0.31000
63 0.21037 0.22000 0.23000 0.26000
64 014311 015000 016000 018000
65 0.24399 0.25000 0.27000 0.30000
66 0.13820 014000 015000 017000
67 0.11208 012000 013000 0.14000
68 0.11736 012000 0.13000 0.15000
69 0 09036 0.09000 0 10000 0 11000
70 1.00000 1.00000 1.00000 1.00000
Female Retirement Rates
Age 2% 55 2.5%0) 55 2.79on55 .>io(a)60
50 0.04811 0.07000 0.07000 0 07000
51 0.03369 0.05000 0.05000 0.05000
52 0.03688 0.05000 0.05000 0.05000
53 0.04137 0.05000 0 06000 0.05000
54 0 04165 0.05000 0.06000 0.05000
55 0.07384 0.09000 0.10000 0.09000
56 0 06050 0.07000 0.08000 0 08000
57 0.05372 0.06000 0.07000 0.07000
58 0.08260 0.10000 0.10000 0.11000
59 0 07693 0.09000 0.09000 0.10000
60 0.11112 0.12000 0.13000 0.15000
61 0.09430 0.10000 011000 0.12000
62 019765 0.21000 0.23000 0.25000
63 017706 0.18000 0.20000 0.22000
64 0.12882 0.13000 014000 0.16000
65 0.23837 0.25000 0.27000 0.30000
66 0.14190 015000 016000 018000
67 014001 014000 0.16000 0.17000
68 0.10330 0 11000 0.12000 0 13000
69 0.12344 0.13000 0.14000 0.15000
70 1.00000 1.00000 1.00000 1.00000
June 30, 2002 A-7
•
CALPERS ACTUARIAL VALIION JUNE 30.200:2 APPENDIX A
STATEMENT OF AC1 UARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Miscellaneous 2%@ 55,2.5% @ 55,2.7% @ 55,3% @ 60(continued)
Termination with Refund
Rates vary by entry age, sex, and service. See sample rates in tables below
Termination with Refund(Male)
Entry Years of Service
Age 0-I 1 2 2 3 3-4 4-5 5 or more
20 0.07039 014989 010218 0.09133 0.07347 0.06020
25 0.06817 0.13716 0.09381 0 08084 0.06543 0.03874
30 0.06601 0.12546 0.08605 0.07142 0.05810 0.02482
35 0.06390 0.11468 0.07883 0.06298 0.05143 0 01582
40 0.06184 0.10477 0.07214 0 05541 0.04536 0.01003
45 0 05983 0.09566 0.06593 0.04864 0.03985 0 00631
50 0.05788 0.08774 0.06110 0.04396 0.03688 0.00433
55 0.05688 0.08215 0.05791 0.04056 0.03460 0.00297
60 0.05589 0.07691 0.05488 0.03742 0.03247 0.00204
Termination with Refund (Female)
Entry Years of Service
Age 0-1 1 2 2 3 -4 4-5 5 or more
20 0.08507 018195 014663 012170 0.11265 0.07501
25 0.08288 0.16702 012837 010484 0.09017 0.04948
30 0.08074 0 15324 0.11228 0.09015 0 07197 0.03250
35 0.07863 014051 0.09809 0.07736 0.05725 0.02124
40 0 07656 0 12877 0.08559 0.06625 0.04518 0.01380
45 0.07453 011793 0.07459 0.05660 0.02583 0.00890
50 0.07253 0.10850 0.06591 0.04978 0.02980 0.00626
55 0.07170 0 10189 0.05957 0.04470 0 02513 0.00440
60 0.07089 0.09569 0.05383 0.04014 0.02119 0.00310
June 10, 2002 A-8
CALPERS ACJUARIAI. VAI•FION JUNE 30,2002 APPENDIX A
•
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC_ AGENCY
Public Agency Miscellaneous 2% @ 55,2.5%@ 55,2.7%@.55,3%@ 60(continued)
Non-Industrial(Not Job-Related) Death, Non-Industrial (Not Job-Related) Disability Termination
with Vested Deferred Benefits
Rates vary by age and sex. See sample rates in table below
Male Female
Non- Non- Non- Non-
Industrial Industrial Termination Industrial Industrial Termination
(Not Job- (Not Job- with Vested (Not Job- (Not Job- with Vested
Attained Related) Related) Deferred Related) Related) Deferred
Age Death Disability Benefits Death Disability Benefits
20 0 00027 0.00048 0.02023 0.00007 0.00032 0.03299
25 0.00039 0.00070 0.01818 0.00012 0.00047 0.02910
30 0.00055 0.00102 0.01633 0.00018 0.00069 0.02567
35 0 00078 0.00148 0.01467 0.00028 0 00102 0 02264
40 0 00110 0 00215 0.01 18 0.00044 0 00150 0.01997
45 0.00155 0.00313 0.01184 0.00069 0 00220 0.01762
50 0 00219 0.00456 0.01064 0.00108 0.00322 0.01554
55 0.00310 0.00663 0.00956 0.00169 0.00473 0 01371
60 0.00438 0.00000 0.00859 0.00264 0.00000 0.01209
Industrial(Job-Related) Disability
Rates vary by age and sex. Rates are zero unless the agency has specifically contracted for Industrial
Disability benefits. If so.each Non-Industrial Disability rate shown above will be split into two
components 50%will become the Non-Industrial Disability rate and 50° will become the Industrial
Disability rate.
Industrial(Job-Related) Death
Rates vary by age and sex. Rates are zero unless the agency has specifically contracted for Industrial
Death benefits. If so,each Non-Industrial Death rate shown above will he split into two components:
99%will become the Non-Industrial Death rate and I will become the Industrial Death rate.
June 30, 2002 A-9
CALPERS ACTUARIAL VALafS'IION •JUNE 30.2002 • APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Fire 2%@ 50,2.5%@ 55,3% @ 55 and 3% @50
Service Retirement
Rates vary by age and benefit formula. See table below
Attained
Age 2%@ 50 and 2.5° @ 55 3%" u, 55 3%@ 50
50 0.03673 0.06000 0.15000
51 0.03475 0 10000 0.18000
52 0.06045 013000 0.20000
53 0 11071 0 18000 0.22000
54 015878 0.22000 0.22000
55 0.22109 011000 011000
56 0.11305 0.09000 0.09000
57 0.09843 011000 011000
58 0 1184_ 0.10000 0 10000
59 0 10456 1.00000 1 00000
60 1.00000 1 00000 1.00000
The rate is set to 100% for any year in which the combination of age and service results in a benefit
that would be limited to 90" of final compensation.
Termination with Refund
Rates vary by entry age and service. See sample rates in table below
Termination with Refund
Entry Years of Service
Age 0-I 1 2 2 3 3-4 4-5 5 or more
20 0.03915 0.03743 0.03579 0.03423 0.03273 0.01109
25 0.03129 0.02992 0.02861 0.02736 0.02616 0.00663
30 0.02501 0.02392 0.02287 0.02187 0.02091 0.00397
35 0.02000 0.01912 0.01828 0.01748 0.01672 0.00238
40 0.01598 0.01528 0.01461 0.01397 0.01336 0.00142
45 0.01278 0.01222 0.01168 0.01117 0.01068 0.00085
50 0.01021 0.00977 0.00934 0.00893 0.00854 0.00051
55 0.00816 0.00781 0.00746 0.00714 0.00683 0 00030
Non-Industrial(Not Job-Related) Death, Non-Industrial (Not Job-Related) Disability Industrial
(Job-Related) Death, Industrial(Job-Related) Disability Termination with Vested Deferred Benefits
Rates vary by age. See sample rates in table below
Non- Non-
Industrial Industrial Termination
(Not Job- (Not Job- Industrial Industrial with Vested
Attained Related) Related) (Job-Related) (Job-Related) Deferred
Age Death Disability Death Disability Benefits
20 0.00017 0.00009 0.00011 0.00040 0.00669
25 0.00020 0.00015 0.00014 0.00073 0.00590
30 0.00023 0 00024 0.00018 0.00133 0.00521
'5 0 00028 0.00039 0.00022 0.00242 0.00460
40 0.00033 0.00062 0.00029 0.00441 0.00406
45 0.00039 0.00099 0.00038 0.00802 0.00358
50 0.00046 0.00158 0.00048 0.01460 0.00316
55 0.00054 0.00000 0.00062 0.02658 0.00279
June 30,2002 A-I0
CALPERS ACTUARIAL VALTIUN JUNE 30,2002 • APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Fire 1/2(u)55 and 2% g 55
Service Retirement
Rates vary by age. See table below
Aee Rate Aoe Rate
50 0.01588 56 0.11079
51 0.00000 57 0.00000
52 0.03442 58 0.09499
53 0.01990 59 0.04409
54 0.04132 60 1.00000
55 0.07513
The rate is set to 100%for any year in which the combination of age and service results in a benefit
that would be limited to 90° of final compensation.
Termination with Refund
Rates vary by entry age and service. See sample rates in table below
Termination with Refund
Entry Years of Service
Age 0-I 12 2 3 3-4 4-5 5 or more
20 0.04827 0.04717 0.04600 0.04486 0.04374 0.01190
25 0.04266 0.04160 0.04057 0.03956 003858 0.01029
30 0.03762 0.03688' 0.02577 0.03488 0 03402 0.00891
35 0.03317 0.03235 0.03155 0 03076 0 03000 0.00771
40 0.02925 0.02853 0.02782 0 02713 0.02645 0.00667
45 0.02580 0.02516 0.02453 0.02392 0.02333 0.00577
50 0.02275 0 02218 0.02163 0.02110 0.02057 0.00500
55 0.02006 0.01956 0.01908 0.01860 0.01814 0.00432
Non-Industrial(Not Job-Related) Death, Non-Industrial(Not Job-Related) Disability Industrial
(Job-Related) Death, Industrial(Job-Related) Disability Termination with Vested Deferred Benefits
Rates vary by age. See sample rates in table below
Non- Non-
Industrial Industrial Termination
(Not Job- (Not Job- Industrial Industrial with Vested
Attained Related) Related) (Job-Related) (Job-Related) Deferred
Age Death Disability Death Disability Benefits
20 0.00017 0.00009 0.00011 0.00013 0.01076
25 0.00020 0.00015 0.00014 0.00027 0.01000
30 0.00022 0.00024 0.00018 0 00057 0.00930
35 0.00028 0.00039 0.00023 0.00120 0.00864
40 0.00033 0.00062 0.00029 0.00251 0.00803
45 0.00039 0.00099 0.00038 0.00527 0.00746
50 0.00046 0.00158 0.00048 0.01105 0.00694
55 0.00054 0.00000 0.00062 0.02315 0.00645
June 30, 2002 A-I 1
CALPERS ACTUARIAL VALAATION •JUNE 30.2002 • APPENDIX A
STATEMENT OF ACTUARIAL METI IODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Police 2% @ 50,2.5% @ 55,3% @ 55 and 3% @ 50*
Service Retirement
Rates vary by age and benefit formula. See table below
Attained
Age 2°, @ 50 and 2.5° @ 55 3%@ 55 3% ct, 50
50 0.05857 0.10000 0.17000
51 0.04340 0.11000 0.17000
52 0.04165 0.16000 018000
53 015350 0.17000 0.18000
54 0 17021 0.18000 0.18000
55 0 18571 0.11000 0.11000
56 011855 0.07000 0.07000
57 0.07146 0.08000 0.08000
58 0.08968 0.08000 0.08000
59 0 08743 1.00000 1.00000
60 1.00000 1.00000 1.00000
The rate is set to 100% for any year in which the combination of age and service results in a benefit
that would be limited to 90%of final compensation.
Termination with Refund
Rates vary by entry age and service. See sample rates in table below
Termination with Refund
Entry Years of Service
Age 0-I 1 2 2 3 3-4 4-5 5 or more
20 0.04373 0.08438 0.04756 0.04644 0.04650 0.03226
25 0.04758 0.08654 0.04711 0.04415 0.04182 0.01934
30 0 05177 0 08876 0.04666 0.04197 0.02761 0.01159
35 0.05633 0 09103 0.04622 0.03990 0.03382 0.00695
40 0.06128 0.09337 0.04579 0.03794 0.03041 0.00417
45 0.06668 0.09576 0 04535 0.03607 0.027'5 0.00250
50 0.07255 0.09821 0 04492 0.03429 0.02459 0.00150
55 0.07893 010072 0.04450 0.03260 0.02211 0.00090
Non-Industrial(Not Job-Related) Death, Non-Industrial(Not Job-Related) Disability Industrial
(Job-Related) Death, Industrial(Job-Related) Disability,Termination with Vested Deferred Benefits
Rates vary by age. See sample rates in table below
Non-Industrial Non-Industrial Termination
(Not Job- (Not Job- Industrial Industrial with Vested
Attained Related) Related) (Job-Related) (Job-Related) Deferred
Age Death Disability Death Disability Benefits
20 000017 0.00018 0.00011 0.00250 0.01309
25 0.00020 0.00024 0.00014 0.00347 0.01155
30 0 00023 0 00033 0.00018 0.00482 0.01018
35 0.00028 0 00044 0.00023 0.00669 0.00898
40 0.00033 0.00060 0.00029 0.00928 0.00792
45 0.00039 0 00082 0.00038 0.01289 0.00699
50 0.00046 0.00112 0.00048 0 01789 0.00616
55 0.00054 0.00000 0.00062 0 02484 0.00544
Tin. -itc als ipph to Scho tl Polk. The only dale are the hidustr al Di ability rd Inds str al Death rate The
School Police S0 of the rat. displayed abc
June 30, 2002 A-12
•
CALPERS ACTUARIAL VALITION JUNE 30.2002 APPENDIX A
STATEMENT OF ACTUARIAL METHODS AND ASSUMPTIONS
PUBLIC AGENCY
Public Agency Police 'A @ 55 and 2% @ 55"
Service Retirement
Rates vary by age. See table below
1 Rate Aee Rate
50 0.02552 56 0.06921
51 0.00000 57 0.05113
52 0.01627 58 0.07241
53 0.02717 59 0.07043
54 0.00949 60 1.00000
55 0 16674
The rate is set to 100% for any year in which the combination of age and service results in a benefit
that would be limited to 90" of final compensation.
Termination with Refund
Rates vary by entry age and service. See sample rates in table below
Termination with Refund
Entry Years of Service
Age 0-1 1 2 2 3 3-4 4-5 5 or more
20 0.05709 0 05768 0.05828 0.05888 0.05949 0.03497
25 0.06011 0.06073 0.06135 0 06199 0 06263 0.02683
30 0.06328 0 06393 0.06459 0.06526 0 06593 0 02058
35 0.06662 0 06730 0 06800 0.06870 0.06941 0.01578
40 0 07013 0 07085 0.07159 0.07233 0.07107 0.01211
45 0.0738_ 0 07459 0 075>6 0.07614 0.07693 0.00929
50 0.07772 0 07853 0.07934 0.08016 0.08099 0.00712
55 0.08183 0.08267 0.0835_ 0.08439 0.08526 0.00546
Non-Industrial (Not Job-Related) Death, Non-Industrial (Not Job-Related) Disability Industrial
(Job-Related) Death, Industrial (Job-Related) Disability Termination with Vested Deferred Benefits
Rates vary by age. See sample rates in table below
Non- Non-
Industrial Industrial Termination
(Not Job- (Not Job- Industrial Industrial with Vested
Attained Related) Related) (Job-Related) (Job-Related) Deferred
Age Death Disability Death Disability Benefits
20 0.00017 0.00069 0 00011 0.00260 0.01516
25 0.00020 0.00118 0.00014 0.00355 0.01424
30 0.00023 0.00167 0.00018 0.00483 0.01 18
35 0.00028 0.00216 0.00023 0.00658 0.01257
40 0.00033 0.00265 0.00029 0.00896 0.01180
45 0.00039 0.00213 0.00038 0.01221 0.01109
50 0.00046 0 00362 0.00048 0.01663 0.01042
55 0.00054 0.00000 0.00062 0.02266 0.00978
ilk vR }Is tpply to School Police- The only difference ar the Inds str 4 Duabdity and Industrial Death rates. The
School Poh of the rate displayed above.
June 10, 2002 A-13
0 •
Appendix B
SUMMARY OF
PRINCIPAL PLAN
PROVISIONS
CALPERS ACTUARIAL VATION •• APPENDIX B
MISCELLANEOUS PLAN COSTA MESA SANITATION DISTRICT
SUMMARY OF BENEFITS:
The following is a summary of the major plan provisions used in calculating the liabilities
of the plan. Many of the statements in this summary are general in nature, and are
intended to provide an easily understood summary of the complex Public Employees
Retirement Law The law itself governs in all situations.
RETIREMENT PROGRAM
Service Retirement
Eligibility
A CaIPERS member becomes eligible for Service Retirement upon attainment of age SO with at
least 5 years of credited service (total service across all CaIPERS employers, and with certain other
Retirement Systems with which CaIPERS has reciprocity agreements).
Benefit
The Service Retirement benefit calculated for service earned by this group of employees is a
monthly allowance equal to the product of the benefit factor nears of service, and final
compensation, where
The benefit factor for this group of employees comes from the 2% at 55 benefit factor
table. The factor depends on the member s age at retirement Listed below are the
factors for retirement at whole year ages.
Retirement 2% at 55
AAe Factor
50 1 426°
51 1 522°
52 1.628°
53 1 742°
54 1.866°
55 2.000%
56 2 052°
57 2 104"
58 2.156"
59 2.210°
60 2.262°
61 2.314°
63
2.366°
63 &Up 2.418°
The wars of service is the amount credited by CaIPERS to a member while he or she is
employed in this group (or for other periods that are recognized under the employer s
contract with CaIPERS). For a member who has tamed service with multiple CaIPERS
employers, the benefit from each employer is calculated separately according to each
employer s contract, and then added together for the total allowance. Any unused sick
leave accumulated at the time of retirement will be converted to credited service at the
rate of 0.004 years of service for each day of sick leave.
B-I
CALPERS ACTUARIAL' ATION •• APPENDIX B
MISCELLANEOUS PLAN COSTA MESA SANITATION DISTRICT
The final compensation is the monthly average of the member s highest 12 consecutive
months' full-time equivalent monthly pay (no matter which CaIPERS employer paid this
compensation). The employees in this group are covered by Social Security The final
compensation is not offset by a dollar amount.
The Service Retirement benefit is not capped.
Vested Deferred Retirement
Eligibility for Deferred Status
A CaIPERS member becomes eligible for a deferred vested retirement benefit when he or she
leaves employment, keeps his or her contribution account balance on deposit with CaIPERS, and
has earned at least S years of credited service (total service across all CaIPERS employers, and
with certain other Retirement Systems with which CaIPERS has reciprocity agreements).
Eligibility to Start Receiving Benefits
The CaIPERS member becomes eligible to receive the deferred retirement benefit upon satisfying
the eligibility requirements for Deferred Status and upon attainment of age 50
Benefit
The vested deferred retirement benefit is the same as the Service Retirement benefit, where the
benefit factor is based on the member s age at allowance commencement. For members who have
earned service with multiple CaIPERS employers, the benefit from each employer is calculated
separately according to each employer's contract, and then added together for the total allowance.
Industrial (Job-Related) Disability Retirement
Eligibility
An employee is eligible for Industrial Disability Retirement if he or she becomes disabled while
working, where disabled means the member is unable to perform the duties of the job because of a
work-related illness or injury which is expected to be permanent or to last indefinitely A
CaIPERS member who has left active employment within this group is not eligible for this benefit,
except to thL extent described in the next paragraph.
Benefit
The Industrial Disability Retirement benefit is a monthly allowance equal to 5(1" of final
compensation. However, if a member is eligible for Service Retirement and if the Service
Retirement benefit is more than the Industrial Disability Retirement benefit, the member may
choose to receive the larger benefit. For a CaIPERS member not actively employed in this group
who became disabled while employed by some other CaIPERS employer the benefit is a return of
the accumulated member contributions with respect to employment in this roup
Post-Retirement Death Benefit
Lump Sum Payment
Upon the death of a retiree, a one-time lump sum payment of S500 will be made to the retiree s
designated survivor(s), or to the retiree s estate.
B-2
CALPERS ACTUARIAL IUATION APPENDIX B
MISCELLANEOUS PLAN COSTA MESA SANITATION DISTRICT
Form of Payment for Retirement Allowance
Generally the retirement allowance is paid to the retiree in the form of an annuity for as long as he
or she is alive The retiree may choose to provide for a portion of his or her allowance to be paid
to any designated beneficiary after the retiree s death. CaIPERS provides for a variety of such
benefit options, which the retiree pays for by taking a reduction in his or her retirement allowance.
The larger the amount to be provided to the beneficiary is. and the younger the beneficiary is,the
greater the reduction to the retiree s allowance.
For retirement allowances with respect to service earned by employment in this group. 50%of the
retirement allowance will automatically be continued to certain statutory beneficiaries upon the
death of the retiree, without a reduction in the retiree s allowance. This additional benefit is often
referred to as post retirement surveyor allowance(PRSA)or simply as survivor continuance.
In other words, 50% of the allowance, the continuance portion, is paid to the retiree for as long as
he or she is alive, and that same amount is continued to the retiree s spouse (or if no eligible
spouse. to unmarried children until they attain age 18;or if no eligible children,to a qualifying
dependent parent) for the rest of his or her lifetime. This benefit will not be discontinued in the
event the spouse remarries.
The remaining 50%of the retirement allowance, which may be referred to as the option portion of
the benefit, is paid to the retiree as an annuity for as long as he or she is alive. Or the retiree may
choose to provide for some of this option portion to be paid to any designated beneficiary after the
retiree s death CaIPERS offers a variety of such benefit options, which the retiree pays for by
taking a reduction to the option portion of his or her retirement allowance.
Pre-Retirement Death Benefits
Basic Death Benefit
Eligibility
An employee s beneficiary(or estate) may receive the Basic Death benefit if the member
dies while actively employed. A CaIPERS member who is no longer actively employed
with any CaIPERS employer is not eligible for this benefit A members survivor who is
eligible for any other pre-retirement death benefit described below may choose to receive
that death benefit instead of this Basic Death benefit
Benefit
The Basic Death Benefit is a lump sum in the amount of the member s accumulated
contributions, where interest is currently credited at 8.25° per year plus a lump sum in
the amount of one month's salary for each completed year of current service, up to a
maximum of six months' salary For purposes of this benefit, one month's salary is
defined as the member's average monthly full-time rate of compensation during the 12
months preceding death.
B-3
CALPERS ACTUARIAL•UATION •
APPENDIX B
MISCELLANEOUS PLAN COSTA MESA SANITATION DISTRICT
1957 Survivor Benefit
Eliiibilitr
An employee's eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while
actively employed,has attained at least age 50, and has at least 5 years of credited service(total
service across all CaIPERS employers and with certain other Retirement Systems with which
CaIPERS has reciprocity agreements). A CaIPERS member who is no longer actively employed
with any CaIPERS employer is not eligible for this benefit. An eligible survivor means the
surviving spouse to whom the member was married at least one year before death or if there is no
eligible spouse,to the member's unmarried children under age 18. A member s survivor may
choose this benefit in lieu of the Basic Death benefit or the Special Death benefit.
Benefit
The 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified Service
Retirement benefit that the member would have been entitled to receive if the member had retired
on the date of his or her death. If the benefit is payable to the spouse,the benefit is discontinued
upon the death or remarriage of the spouse The spouse may elect to receive a reduced allowance
that would not end upon remarriage. If tilt benefit is payable to a dependent child,the benefit will
be discontinued upon death or attainment of age 18, unless the child is disabled. There is a
guarantee that the total amount paid will at least equal the Basic Death benefit.
Cost-of-Living Adjustments
Beginning the second calendar year after the year of retirement, retirement and survivor
allowances will be annually adjusted on a compound basis by 2% However the cumulative
adjustment may not be greater than the cumulative change in the Consumer Price Index since the
date of retirement.
Purchasing Power Protection Allowance (PPPA)
Retirement and survivor allowances are protected against inflation by PPPA. PPPA benefits are
cost-of-living adjustments that are intended to maintain an individual's allowance at 80% of the
initial allowance at retirement adjusted for inflation since retirement. The PPPA benefit will be
coordinated with other cost-of-living adjustments provided under the plan.
Employee Contributions
Each employee contributes toward his or her retirement based upon the following schedule. The
employer may choose to pick-up these contributions for the employees.
The percent contributed below the monthly compensation breakpoint is 0%
The monthly compensation breakpoint is$0.
The percent contributed above the monthly compensation breakpoint is 7%
B-4
CALPERS ACTUARIAL RATION • APPENDIX B
MISCELLANEOUS PLAN COSTA MESA SANITATION DISTRICT
Refund of Employee Contributions
If the member's service with the employer ends, and if the member does not satisfy the eligibility
conditions for any of the retirement benefits above, the member may elect to receive a refund of
his or her employee contributions,which are credited annually with 6%interest.
B-5