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0465
COUNTY OF SANTA CRUZ
PERSONNEL DEPARTMENT
MICHAEL J. MCDOUGALL, DIRECTORAlIT A PATEL, DEPUTY DIRECTOR
701 OCEAN STREET, SUITE 310, SANTA CRUZ, CA 95060-4073
(831)454-2600 FAX:(831)454-2411 TDD:(831)454-2123
October 28, 2011
Agenda: November 8, 2011Board of SupervisorsCounty of Santa Cruz701 Ocean StreetSanta Cruz, CA 95060
CONSIDER ACTUARIAL STUDY FOR REDUCTION TO OTHER POSTEMPLOYMENT BENEFITS (OPEB) FOR THE SHERIFF'S CORRECTIONAL OFFICER
REPRESENTATION UNIT
Dear Members of the Board:
A tentative agreement was reached with the Correctional Officers Association onOctober 5, 2011 for a one year contract through June 30, 2012. The County hasreceived official notification from the Unit that the tentative agreement was ratified bythe membership on October 13, 2011. The tentative agreement with this Unit includes aprovision that reduces the benefit level for retiree healthcare which is considered OtherPost Employment Benefits (OPEB).
The purpose of this letter is to comply with statutory mandates. Senate Bill 1123 asAmended August 8, 2008 requires the following: 1) an actuarial study to be presented tothe local legislative body at least two weeks prior to the adoption of any changes toother post employment benefits; 2) two public readings that are not on the consentagenda; and 3) the Chief Executive Officer shall acknowledge in writing that she/heunderstands the current and future cost of the benefit as determined by the actuary.Staff will return to your board on or before December 13, 2011 with a comprehensiveMemorandum of Understanding (MOU) with the Sheriffs Correctional OfficerRepresentation Unit for your approval including a second reading of the actuarialstudies pursuant to SB1123.
51
0466
Board of SupervisorsAgenda: November 8, 2011
As your Board may recall, Government Accounting Standards Board (GASB) 45, a newaccounting rule effective in 2007, required that the County conduct an actuarialvaluation to account for and report the annual cost of OPEB for current and futureretirees and begin reporting the value of those benefits on our Comprehensive AnnualFinancial Report. The County's OPEB benefits consist solely of retiree health benefits.In November 2009, the County convened a joint labor-management committee (theHealth Care Cost Containment Committee) to consider means by which the Countymight reduce the OPEB liability and contain the rising cost of health benefits. Themeasures taken in the Sheriff's Correctional Officer Representation Unit tentativeagreement accomplish the goals of the Health Care Cost Containment Committee andthe County's goals to manage the impacts of GASB 45.
Adoption of Retiree Health Benefit Longevity Schedule
Per the tentative agreement reached with the Sheriff's Correctional OfficerRepresentation Unit, effective January 1, 2012 this Unit will implement a retiree healthbenefit longevity schedule resulting in a change to the level of benefits for the currentand future retirees from this Unit. An actuarial study has been conducted by ouractuary, Bartel Associates, LLC, to determine the savings the County can anticipate asa result of this change. The Actuarial Study is attached with a cover letter from BartelAssociates, LLC, summarizing the changes to the Unit's retiree health benefits and thesavings associated with said benefit changes.
Our County Administrative Officer's signature on this letter serves as acknowledgementthat she understands the current and future cost savings associated with the benefitchanges as determined by the actuary.
IT IS THEREFORE RECOMMENDED that your Board:
1. Accept and file the OPEB actuarial study, and;
2. Direct the Personnel Director to return on or before December 13, 2011 with the
MOU.
Very truly yours,
el J. McDougallnnel Director
usan A. MaurielloCounty Administrative Officer
5'
(0467
Attachment
cc: Auditor-Payroll (2)
Personnel (2)Fred Klingel, Operating Engineers Local 3James Bates, Sheriffs Correctional Officers AssociationPhil Wowak, Sheriff
80
0468
October 28,2011
Michael J. McDougallDirector of PersonnelCounty of Santa Cruz701 Ocean Street, Suite 310Santa Cruz, CA 95060-4073
Re: County of Santa Cru - Changes to Retiee Healthcare Benefit for Corrtional Offcers Assoiation
Dear Mr. McDougall:
Section 7507.2 of the California Governent Code requires agencies obtain a statement of actuarialopinion regarding the cost impact of retiree healthcare plan benefit changes. This letter provides theactuarial impact of the proposed retiree healthcare benefit change for the Correctional OffcersAssociation Unit of the County of Santa Cruz.
Summary of Proposed Benefit Changes
The County currently provides a healthcare benefit to eligible employees who retire directly from theCounty under CalPERS, with the County paying monthly medical premiums up to a fixed dollar capthat vares by bargaining unit and medical coverage. The current monthly retiree healthcare caps forthe Correctional Offcers Association Unit are $507 for single coverage, $557 for 2-part coverage,and $613 for family coverage. The County paricipates in the CalPERS medical program(PEMHCA).
Under the proposed benefit change, employees in the Correctional Officers Association Unit wouldhave their monthly retiree healthcare cap changed effective January 1,2012 to an amount that variesby age and service at retirement as follows:
. 0-5 Years of County service at retirement - PEMHCA minimum only ($112/month in 2012)
. Full cap at retirement age 50 with 25 years of County service
. Full cap is $507/month for single coverage and $557/month for 2-part or family coverage
. Adjust cap for age and County service at retirement:
. County service adjustment.- Scale up from the PEMHCA minimum by a fixed dollaramount per year to 100% of full cap at 25 years of County service
. Retirement age adjustment - 100% of service-adjusted cap at retirement age 50,increase/decrease service-adjusted cap by 5% for each year retirement age is over/underage 50 (up to maximum offull cap)
. Adjusted cap reduces by 50% at Medicare eligibility, but not less than the PEMHCAminimum
Summary of Cost Change
Based on our Januar 1, 2009 actuarial valuation, including all actuarial methods and assumptions,following is the change in the January 1,2009 actuaral obligations and 2009/10 Anual RequiredContrbution due to the proposed change to the Correctional Offcers Association Unit. In the tablebelow, the Present Value of Projected Benefits represents the amount the plan needs as of thevaluation date to pay all future benefits if all assumptions are met. The Actuarial Accrued Liabilityrepresents the portion of the Present Value of Projected Benefits that participants have eared (on an
¡nam:
5'
0469
Michael J. McDougallOctober 28, 2011Page 2
10\ 111 )'/ l'
actuarial, not actual, basis) through the valuation date. The County's Anual Required Contribution(ARC) under GASB 45 is equal to the employer Normal Cost (the value of benefits eared during theyear), plus a 30-year level percent of pay amortization of the unfunded liability (the value of benefitsthat have been earned in previous years). The ARC as a percentage of projected payroll is based onthe 200911 0 projected County payroll of $161 ,577 ,000.
County of Santa CruRetiree Healthcare Plan
in $Ooo's)
. January 1,2009 Actuarial Obligations
. Present Value of Projected Benefits $289,922 $285,872 $(4,050)
. Actuarial Accrued Liability (AAL) 181,575 179,475 (2,100). 2009/10 ARC - $
. Normal Cost $13,088 $12,890 $(198)
. Amortization of Unfunded AA 7,824 7,732 -.
. Total 20,912 20,622 (290). 2009110 ARC - % of Projected Payroll
. Normal Cost 8.1% 8.0% (0.1%)
. Amortization of Unfuded AA 4.8% 4.8% (0.0%)
. Total 12.9% 12.8% (0.1%)
Conclusion
Because we believe the County's actuaral cost would decrease due to the proposed benefit change forthe Correctional Offcers Association Unit, in our opinion §7507.2 of the California GovernentCode does not apply. However, Barel Associates is not a law firm and we are not qualified to rendera legal opinion, so we suggest you confer with County Counsel regarding the applicability of §7507.2in this case.
Please call Cathy Wandro (650/377-1606) or me (650/377-1601) with any questions about thisinformation.
Sincerely,
John E. BarelPresident
c: Cathy Wandro, Barel Associates
O:lClienISCountyofSanCruz'OPIi\2009VallRrtlB Sataru 11-10-28 Lí- 7YJ7 -lmpaofllfiChange forCOAdo
main:\uüc ini · :~an 944tL': .
Õ i
0470
COUNTY OF SANTA CRUZRETIREE HEALTHCAR PLAN
January 1,2009 GASB 45 Actuarial Valuation
Longevity Schedule Study
Tentative Agreement for Correctional Officers
John E. Bartel & Cathy WandroBartel Associates, LLC
October 28, 2011
CONTENTS
Topic
Current Benefit Summary
Longevity Study Summary
Longevity Study Results
Exhibits
Page
1
3
5
11
E-l
E-3
E-5
E-31
E-36
E-37
Premiums
Current Benefit Caps
Data Sumary
Actuarial Assumptions
Actuarial Methods
Defmitions
(i/ ,,~ o:\clients~oUlty of santa cruz\opebl2lJ val\rports\ba santacruzco 11.10.28 opeb 09-01-01 ta for coa.doc
0471CURRNT BENEFIT SUMMARY Ii
Current Benefit as of January 1, 2009
. Eligibility . Seivice or Disability retire directly from County under CalPERS(age 50 with 5 years service)
. Permanent part-time employees are eligible
. Healthcare Benefits . County contributes fixed dollar amounts for single, 2-part, andfamily PEMHCA medical coverage that vary by bargaining group
. All Bargaining Units except DA Inspectors Unit:
. PEMHCA equal method
. Cafeteria Plan for actives
. Retiree contribution equals amount specified for active
PEMHCA contribution. DA Inspectors Unit:
. PEMHCA unequal method
. AB 2544 - retiree contribution increases annually to an amountnot less than 5 % of active contribution times years in PEMHCA,until equal to active contribution (max $100 increase per year)
~1)1~. t)¿-!.,. ii' October 28, 2011 1
CURRENT BENEFIT SUMMARY Ii
. Suiviving Spouse . Retiree medical benefit continues to suiviving spouse if retiree
Benefit elects CalPERS suivivor annuity
. Dental, Vision, Life & . NoneMedicare PartBReimbursement
. Pay-As-You-Go Year MedicalCostsl
200911 0 (Est.) $ 4,708,704
2008/09 4,804,800
2007/08 3,197,200
i Provided by the County.
m=i. . October 28,2011 2 .
i I
0472LONGEVITY STUDY SUMMARY Ii
Longevity Schedule for Tentative Agreement with Correctional Officers. Effective January 1,2012.
. All census data, plan provisions, actuarial methods and assumptions, and current benefit caps are
the same as the currnt plan January 1,2009 GASB 45 valuation unless otherwise indicatedbelow.
Group RetireèHealthcareBenefit. Correctional . Fixed $ Scaling:
Offcers ;¡ 0-5 Years County Service - PEMHCA Minimum ($112 in 2012)Association
;¡ Scale up by fixed dollar amount per year to 100% Cap at 25 years;¡ Full Cap at "Nonnal" retirement age 50;¡ Full Cap is $507/mo for single and $557/mo for one or more dependents,. Increase/decrease Cap by 5 % for each year retirement age is over/under
"Nonnal" retirement age (up to maximum offull Cap);¡ 50 % cap reduction at Medicare eligibilty
. Applies to currnt actives, current retirees, and future hires
. Rest of County . No Change to Currnt BenefitBargaining Units
ff¡ October 28, 2011 3
LONGEVITY STUDY SUMMARY Ii
This page intentionally blank
5ff¡l
. . October 28, 2011 4
0473
i I
LONGEVITY STUDY RESULTSIi
Summary of Actuarial Obligations - Correctional Officers Association Only11112009
(Amounts in OOO's)
ectional OfficePlan Aftery Proposes Ch
. Present Value of Benefits
. Actives
. Retirees
. Total
. Actuarial Accrued Liability
. Actives
. Retirees
. Total
. Assets
. Unfuded AAL
. Normal Cost
$11,650 $7,946 $(3,704)1,034 688 (346)
12,684 8,634 (4,050)
5,074 3,320 (1,754)1,034 688 (346)6,108 4,008 (2,100)-6,108 4,008 (2,100)
608 410 (198)
awni /¡1.)L./ t. October 28,2011 5
LONGEVITY STUDY RESULTS
Summary of Annual Required Contributions (ARC)Correctional Offcers Association Only
2009/10 Fiscal Year(Amounts in OOO's)
. 2009/10 ARC - $
. Normal Cost
. UAAL Amortization2
. ARC. Projected Payroll
. 2009/10 ARC - %
. Norml Cost
. UAAL Amortization
. ARC
$6082683876
6,982
$410176586
6,982
8.7%3.8%
12.5%
5.9%2.5%8.4%
Ii
$(198)--290)
(2.8%)(1.3%)(4.1 %)
2 VAAL amortized as a level percent of payroll over 30 years.3 Current Plan VAAL amortization adjusted to be consistent with proposed plan change amortization.
uWI.. 6/ '.' October 28, 20 i i
8
04'74LONGEVITY STUDY RESULTS Ii
. Present Value of Benefits
. Actives $207,434 $203,730 $(3,704)
. Retirees 82,488 82,142 (346)
. Total 289,922 285,872 (4,050). Actuarial Accrued Liability
. Actives 99,087 97,333 (1,754)
. Retirees 82,488 82,142 (346)
. Total 181,575 179,475 (2,100). Assets -. Unfunded AAL 181,575 179,475 (2,100). Normal Cost 13,088 12,890 (198)
(ß----'i...-l.-:_~'",-,i...: t October 28, 2011 7
i I
LONGEVITY STUDY RESULTS Ii
Summary of Annual Required Contributions (ARC) - Total County2009/10 Fiscal Year
(Amounts in ODD's)
. 2009/10 ARC - $
. Normal Cost
. UAAL Arnortization4
. ARC. Projected Payroll
. 2009/10 ARC - %
. Normal Cost
. UAAL Amortization
. ARC
$13,0887,824
20,912161,577
$12,8907,732
20,622161,577
$(198)--(290
8.1 %
4.8%12.9%
8.0%4.8%
12.8%
(0.1 %)(0.0%)(0.1 %)
5
4 UAAL amortized as a level percent of payroll over 30 years.
~October28'201I 8
0475
i I
LONGEVITY STUDY RESULTSIi
Summary of Results - Correctional Offcers Association OnlyS(Amounts in ODD's)
ProjectedPa roll
2009/10 $ 6,982 8.7% 5.9% 12.5% 8.4% $ 87
2010/11 7,209 8.7% 5.9% 13.4% 8.9% 122
2011/12 7,443 8.7% 5.9% 14.2% 9.4% 152
2012/13 7,685 8.7% 5.9% 15.0% 9.9% 179
2013/14 7,935 8.7% 5.9% 15.8% 10.4% 206
2014/15 8,193 8.7% 5.9% 16.5% 10.9% 236 196
2015/16 8,459 8.7% 5.9% 17.3% 11.3% 266 217
2016/17 8,734 8.7% 5.9% 18.0% 11.8% 296 238
2017/18 9,018 8.7% 5.9% 18.8% 12.3% 329 261
2018/19 9,311 8.7% 5.9% 19.5% 12.7% 362 288
5 Assumes no retirements for new hires during the lO-year projection period.
October 28,2011 9
LONGEVITY STUDY RESULTSII
Summary of Results - Total County6(Amounts in ODD's)
ARCFiscàl Ptojectßc. 111/09 111109 FiXec.$
Pa roll Vål Val Scålin2009/10 $ 161,577 8.1% 8.0% 12.9% 12.8% $ 4,821 $ 4,8212010/11 166,828 8.1 % 8.0% 13.7% 13.5% 5,632 5,632
2011/12 172,250 8.1% 8.0% 14.4% 14.2% 6,423 6,412
2012/13 177,848 8.1% 8.0% 15.1 % 14.9% 7,256 7,233
2013/14 183,628 8.1 % 8.0% 15.8% 15.5% 8,120 8,090
2014/15 189,596 8.1% 8.0% 16.4% 16.2% 9,097 9,057
2015/16 195,758 8.1 % 8.0% 17.0% 16.8% 10,006 9,9572016/17 202,120 8.1 % 8.0% 17.7% 17.4% 10,875 10,817
2017/18 208,689 8.1 % 8.0% 18.3% 18.0% 11,729 11,661
2018/19 215,472 8.1 % 8.0% 18.9% 18.6% 12,576 12,502
6 Assumes no retirements for new hires during the lO-year projection period.
(ßoctober 28, 2011 10 .
0476
Topic
EXHIBITS
Premiums
Current Benefit Caps
Data Summary
Actuanal Assumptions
Actuanal Methods
Definitions
ff'/ y October 28, 2011 11
Page
E-1
E-3
E-5
E-31
E-36
E-37
Ii
ff11., . October 28, 2011
5
EXHIBITS
This page intentionally blank
12
Ii
EXHIBITS - PREMIUMS Ii
0477
i I
2009 PEMHCA Monthly Medical PremiumsBay Area/Sacramento
Non Medicare Elbdble MedieareEli2ible
PIån Sillde 2-Partv Familv SIn2le 2-pårtv l?alJUyBlue Shield $ 560.57 $ 1,121.14 $ 1,457.48 $ 341.44 $ 682.88 $ 1,024.32
Blue Shield NetValue 495.50 991.00 1,288.30 304.66 609.32 913.98
Kaiser 508.30 1016.60 1,321.58 280.16 560.32 840.48
PERS Choice 482.48 946.96 1,254.45 349.11 698.22 1,047.33
PERS Select 453.16 906.32 1,178.22 349.11 698.22 1,047.33
PERSCare 749.83 1,499.66 1,949.56 404.60 809.20 1,213.80
PORAC 484.00 906.00 1,151.00 330.00 657.00 1,052.00
IUL ~. October 28, 2011 E-1
i I
EXHIBITS - PREMIUMSIi
2010 PEMHCA Monthly Medical PremiumsBay Area
.. Nôb M~dicare Eliidble 'Medica.re Eliai
Plan Sin2le 2-Parl Fainilv SIní?le 2"Part l?amllY
Blue Shield $ 577.33 $ 1,154.66 $ 1,501.06 $ 299.53 $ 599.06 $ 898.59
Blue Shield NetValue 500.35 1,000.70 1,300.91 299.53 599.06 898.59
Kaiser 532.56 1,065.12 1,384.66 298.36 596.72 895.08
PERS Choice 508.74 1,017.48 1,322.72 356.09 712.18 1,068.27
PERS Select 474.93 949.86 1,234.82 356.09 712.18 1,068.27
PERSCare 868.17 1,736.34 2,257.24 410.60 821.20 1,231.80
PORAC 484.00 906.00 1,151.00 363.00 723.00 1,157.00
(ß. i 1 October 28, 2011 E-2
i I
0478EXHIBITS - CURRNT BENEFIT CAPS
Ii
2009 Monthly County Health Insurance PEMHCA Contribution Caps
Barg;iiniiig Group Actives Retiee~(~ateJcjÌJe4~El\'1HCA) Sine,lc 24!larl Family. ... . .
.Z-i "1 ~_~ FamUY
DA & Child Support Attorneys,General, Middle Mgmt, &Unrepresented (9/1/94) $ 457.00 $ 507.00 $ 563.00 $ 457.00 $ 507.00 $ 563.00
DA Inspectors (7/1/01) 532.54 840.86 1,093.11 408.94 489.01 569.62
Health Care Professionals (1/1/04) 404.23 638.25 829.73 327.21 388.41 454.49
Law Enforcement &Law Enforcement (1/1/06) 532.54 840.86 1,093.11 417.15 458.92 493.11
Law Enforcement Middle Mgmt(9/1/94) 532.54 840.86 1,093.11 399.41 554.91 564.49
Sheriffs Correctional Offcers(6/1/05) 428.69 505.71 563.00 428.69 505.71 563.00
Department Heads &Board of Supervisors (9/1/94) 457.00 536.76 620.08 457.00 536.76 620.08
(f) .l),:/ 1 October 28, 2011 E-3
i I
EXHIBITS - CURRNT BENEFIT CAPSIi
2010 Monthly County Health Insurance PEMHCA Contribution Caps
Actives oc" _Bargali:~;rollP
(~ateJoiiea. .~HCA) Sinide 2--Pi:rt ~.. .""...i-Partyl'amiiy
DA & Child Support Attorneys,General, Middle Mgmt, &Unrpresented (9/1/94) $ 507.00 $ 557.00 $ 613.00 $ 507.00 $ 557.00 $ 613.00
DA Inspectors (7/1/01) 532.54 840.86 1,093.11 508.94 589.01 669.62
Health Care Professionals (1/1/04) 327.21 388.41 454.49 327.21 388.41 454.49
Law Enforcement &Law Enforcement (1/1/06) 417.15 458.92 493.11 417.15 458.92 493.11
Law Enforcement Middle Mgmt(9/1/94) 399.41 554.91 564.49 399.41 554.91 564.49
Sheriffs Correctional Offcers(6/1/05) 503.69 557.00 613.00 503.69 557.00 613.00
Department Heads &Board of Supervisors (9/1/94) 507.00 586.76 670.08 507.00 586.76 670.08
50úWj../.. October 28, 2011 E-4
0479
i I
EXHIBITS - DATA SUMMAY
Active Participant Statistics - Misc/Safety7January 1, 2009
..il. CountY.Misc .. ... TotalS
. Count 1,980 357 2,337
. Average Age 47.4 38.7 46.0
. Average County Service 10.3 9.9 10.2
. Average Pay $ 66,349 $ 77,430 $ 68,042
. Total Payroll (000S)9 131,371 27,642 159,013
7 Excludes 533 "Extra Help" active employees not eligible for retiree medical benefits.8 Excludes Animal Services.
9 Pay =(hourly rate) x (2080 hours) x (% full time).
m: October 28, 2011 E-5
Ii
AnimalServices
31
39.7
3.1
$ 42,0631,304
EXHIBITS - DATA SUMMARY
Active Participant Statistics - Bargaining GroupslO(Excludes Animal Services)
January 1, 2009
I i
. Count 1,727 87 207 142 111 11 34 18 2,337
. AverageAge 46.4 51.4 51.2 36.7 37.6 46.4 44.8 48.3 46.0
. AverageCountyService 9.8 13.4 13.4 9.3 9.6 13.0 8.4 9.3 10.2
. AveragePay $58,542 $134,773 $97,996 $82,073 $61,906 $103,310 $116,751 $126,030 $68,042. TotalPayroll(OOOs) 11 101,103 11,725 20,285 11,654 6,872 1,136 3,970 2,269 159,013
10 Excludes 533 "Extra Help" active employees not eligible for retiree medical benefits.ii Pay =(hourly rate) x (2080 hours) x (% full time).
óW E-6 50. / / October 28, 2011
i I
EXHIBITS - DATA SUMMARY
Retiree Participant Statistics - Misc/Safety12
Janua 1, 2009
.CountyTotal13
.
.
Ii
0480
~ .:. .1
~
n/an/an/an/a
n/an/an/a
12 Data provided by CaIPERS. Excludes 675 retirees who are either Superior Court retirees or waived retirees with no County
service whose status could not be verified by County.13 Excludes Animal Services.~\ 9~VoctOber 28,2011
Count. Service Retirees 812 92 904. Disabled Retirees 53 21 74. Surviving Spouses -. -- -.. Total 878 119 997
Average Age. Service Retirees 66.7 61.6 66.2. Disabled Retirees 59.5 54.6 58.1. Surviving Spouses 71.2 62.1 68.3. Total 66.3 60.4 65.6
Average Retirement Age. Service Retirees 59.7 56.0 59.3. Disabled Retirees 50.7 46.9 49.6. Total 59.2 54.3 58.6
E-7 "
EXHIBITS - DATA SUMMARY Ii
Retiree Participant Statistics - Bargaining Groups14January 1, 2009
. Count
. Service
. DisabIed
. Survivor
. Total
. Avg Age
. Service
. Disabled
. Survivor
. Total
. Avg Ret Age
. Service
. Disabled
. Total
66249--
724
66.959.470.066.4
59.850.659.1
694
--74
65.556.573.565.1
58.850.058.3
1122--
116
65.161.974.265.2
59.047.958.8
4215
--60
60.956.255.559.5
54.947.853.0
11
63.647.2n/a
59.1
57.741.53.2
8
3
62.058.9n/a61.
57.156.857.1
51
6
64.6n/an/a
64.6
58.4n/a
58.4
5
5
59.6n/an/a
59.6
58.0n/a
58.0
1 90474--
9971
66.258.168.365.6
59.349.658.6
14 General includes 67 miscellaneous retirees whose bargaining unit is unnown.
Law Enforcement includes 10 safety retirees whose bargaining unit is unnown.
~1¿1~ L)/..I J. / 1 October 28, 2011 E-85 ..
O'r 31
EXHIBITS - DATA SUMMARYII
Active Medical Coverage - All Employees
Plan riSìnliJê "' n; 'Êntal Plan..cc..... "3
Blue Shield Bay Area/Sac 890 367 467 n/a 1,724 1,727
Southern California 1 2 n/a 3
Kaiser Bay Area/Sac 35 10 17 n/a 62 66
Los Angeles Area 2 n/a 2
Southern California 2 n/a 2
PERS Choice Bay Area/Sac 163 95 88 n/a 346 346
PERS Select Bay Area/Sac 4 2 n/a 6 6
PERSCare Bay Area/Sac 5 3 1 n/a 9 9
PORAC 27 13 40 n/a 80 80
OE H&W Trust Plan 1 2 n/a 3 3
Waived n/a n/a n/a 131 131 131
Total 1,124 492 621 131 2,368 2,368
(ß).d'../ t. October 28, 2011 E-9
EXHIBITS - DATA SUMMARY Ii
Retiree Medical Coverage - Pre 65
Plan Re2ion Sin2Je 27Pattý. Family WaiVed Total PlanBlue Shield Bay Area/Sac 144 54 11 n/a 209 221
Northern California 2 n/a 2Los Angeles Area 1 n/a 1
Southern California 6 3 n/a 9Blue Shield NetValue Southern California 3 n/a 3 3
Kaiser Bay Area/Sac 3 1 n/a 4 7Los Angeles Area 1 n/a 1
Southern California 2 n/a 2PERS Choice Bav Area/Sac 55 24 5 n/a 84 167
Northern California 13 8 n/a 21Southern California 4 1 n/a 5
Out of State 39 15 3 n/a 57PERS Select Bav Area/Sac 1 n/a 1 1
PERSCare Bay Area/Sac 4 1 n/a 5 6Nortern California 1 n/a 1
PORAC 6 12 9 n/a 27 27Waived n/a n/a n/a 105 105 105Total 285 119 28 105 537 537
(ß E-lOt October 28, 2011
51
0482EXHIBITS - DATA SUMMARY
Ii
Retiree Medical Coverage - Post 65
Plan ReiiiØn Sinêle ..n, Waìvêd ì'otåi PlanBlue Shield Bay Area/Sac 103 46 - n/a 149 155
Northern California - 2 - n/a 2Southern Californa 4 - - n/a 4
Kaiser Bav Area/Sac 7 1 - n/a 8 10Out of State 2 - - n/a 2
PERS Choice Bay Area/Sac 48 27 - n/a 75 132Northern California 12 7 - n/a 19
Southern California 2 1 - n/a 3
Out of State 25 10 - n/a 35PERSCare Bay Area/Sac 24 8 - n/a 32 51
Nortern California 6 1 - n/a 7Los Angeles Area 1 1 - n/a 2Southern California 8 - - n/a 8
Out of State 1 1 - n/a 2PORAC 1 2 - n/a 3 3
Waived n/a n/a n/a 109 109 109Total 244 107 - 109 460 460
~ October 28, 2011 E-ll
EXHIBITS - DATA SUMMARYIi
Medical Plan ParticipationN on-Waived Participants
...u....ThPlal i:.~;,.;;:,
....:e....6S... ....~..65
Blue Shield 77% 51 % 44% 48%
Blue Shield NetValue 0% 1% 0% 1%
Kaiser 3% 2% 3% 2%
PERS Choice 16% 39% 38% 38%
PERS Select 0% 0% 0% 0%
PERSCare 0% 1% 15% 7%
PORAC 4% 6% 1% 4%
OE H&W Trust Plan 0% n/a n/a n/a
Total 100% 100% 100% 100%
dWi 1 October 28,2011 E-12
0'
i I
G 483
EXHIBITS - DATA SUMMARYIi
Actives by Age and ServiceGeneral
C01lnfy S~l'içe
Ag~ 1 1-4 5..9 10-14 15-19 20-24 2:25
0:25 5 17 - - - - - 22
25-29 15 71 19 3 - - - 108
30-34 7 75 73 27 - - - 182
35-39 5 65 77 43 15 - - 205
40-44 9 61 81 34 17 12 1 215
45-49 9 54 71 54 45 29 7 269
50-54 7 49 77 56 47 29 13 278
55-59 6 50 78 65 39 34 21 293
60-64 3 12 32 26 16 13 22 124
2: 65 2 4 9 9 3 4 - 31
Total 68 458 517 317 182 121 64 1,727
~~ l)~l ,'i ('October 28, 2011 E-13
EXHIBITS - DATA SUMMARY IiI
Actives by Age and ServiceUnrepresentedlBoard of Supervisors/ElectedlDept Head
TfCQunfy.se~ ~ zsrAge 10-14 ..i15- · 20-24
0:25 - - - - - - - -
25-29 - 1 1 - - - - 2
30-34 - 1 - - - - - 1
35-39 - 3 1 1 2 - - 7
40-44 - 2 2 2 2 - - 8
45-49 - 3 2 4 3 1 - 13
50-54 1 3 3 2 4 3 5 21
55-59 - 4 5 2 - 4 7 22
60-64 1 5 1 - 2 2 1 12
? 65 - - 1 - - - - 1
Total 2 22 16 11 13 10 13 87
ff". i October 28, 2011 E-14
58
58
0434
IiEXHIBITS - DATA SUMMARY
Actives by Age and ServiceMiddle Management
rnu~~ ~~Age 1-4 15-19 20-2~
-(25 - - - - - - - -
25-29 - 1 - - - - - 1
30-34 1 1 1 1 - - - 4
35-39 - 5 5 4 2 - - 16
40-44 - 4 7 6 5 - - 22
45-49 - 6 12 9 5 6 - 38
50-54 3 4 10 10 11 9 3 50
55-59 - 7 10 7 6 11 16 57
60-64 - 6 4 1 2 3 3 19
2: 65 - - - - - - - -
Total 4 34 49 38 31 29 22 207
(ß'" / 1. October 28, 2011 E-15
i IIiEXHIBITS - DATA SUMMARY
Actives by Age and ServiceLaw Enforcement/Law Enforcement/Law Enforcement Middle Mgmt'..(nunn.
Age( 1..4 ~ ~q~~~
-(25 6 5 - - - - - 11
25-29 6 18 4 - - - - 28
30-34 5 4 9 3 - - - 21
35-39 - 5 10 9 3 - - 27
40-44 1 2 6 9 5 7 - 30
45-49 - 2 1 2 2 6 3 16
50-54 - - - - 2 1 3 6
55-59 - - 1 - - 1 - 2
60-64 - - - 1 - - - 1
2: 65 - - - - - - - -
Total 18 36 31 24 12 15 6 142
~~ t),/l ," / i. October 28, 2011 E-16
i I
EXHIBITS - DATA SUMMARYIi
Ot¡ 85
Actives by Age and ServiceSheriff's Correctional Offcers
r't.lInrn...i'
-124Age 1-4 5-9 10-14 15~19 2: 25 Total
0:25 6 6 - - - - - 12
25-29 4 12 10 - - - - 26
30-34 1 4 6 3 - - - 14
35-39 2 1 1 7 2 - - 13
40-44 - 5 2 2 3 1 - 13
45-49 - 4 - 2 3 5 - 14
50-54 - - 2 - 2 3 5 12
55-59 - - 1 - 1 1 2 5
60-64 - - - - i - i 2
2' 65 - - - - - - - -
Total 13 32 22 14 12 10 8 111
ow October 28, 2011 E-17
i I
EXHIBITS - DATA SUMMARYIi
Actives by Age and ServiceDA Inspectors
~olllIty ~ ~"~.4ig~ 10-14 ls*ì~0:25 - - - - - - - -
25-29 - - - - - - - -
30-34 - - i 1 - - - 2
35-39 - - - - - - - -
40-44 - - 1 1 - - - 2
45-49 - 1 - 1 - 1 - 3
50-54 1 - - - i 1 1 4
55-59 - - - - - - - -
60-64 - - - - - - - -
? 65 - - - - - - - -
Total 1 1 2 3 1 2 1 11
((i.... iOctober28,2011 E-18
o
0486EXHIBITS - DATA SUMMARY Ii
Actives by Age and ServiceDAiChild Support Attorneys
~ ~ \.I 'nnnrvu,"l rl....
..*ge 1. -19 4()-24 ;.25 Iotal-c25 - - - - - - - -
25-29 1 - - - - - - 1
30-34 1 4 1 - - - - 6
35-39 3 3 2 - - - - 8
40-44 - - 1 1 2 - - 4
45-49 - - - 1 1 - - 2
50-54 1 1 2 - 1 - - 5
55-59 1 2 - - 1 1 2 7
60-64 - - - - - 1 - 1
2: 65 - - - - - - - -
Total 7 10 6 2 5 2 2 34
Ð\ 9LlJoctober 28, 2011 E-19
EXHIBITS - DATA SUMMARY Ii
Actives by Age and ServiceHealth Care Professionals
Agd=t7niirihi " 15 ~1-4 5-9 .....
-c25 - - - - - - - -
25-29 - - - - - - - -
30-34 - 1 - - - - - 1
35-39 1 - 1 - - - - 2
40-44 1 1 2 - - - - 4
45-49 - 1 1 1 - - - 3
50-54 - - 3 - - - - 3
55-59 - - - - 2 1 1 4
60-64 - - 1 - - - - 1
2: 65 - - - - - - - -
Total 2 3 8 1 2 1 1 18
5 (ßt.· ... ,/ . October 28, 2011 E-20
i I
EXHIBITS - DATA SUMMARYIi
0487
Actives by Age and ServceTotal (Excludes Animal Services)i ... ~ ....
. Age.' -e 1 ii?~~
..25 17 28 - - - - - 45
25-29 26 103 34 3 - - - 166
30-34 15 90 91 35 - - - 231
35-39 11 82 97 64 24 - - 278
40-44 11 75 102 55 34 20 1 298
45-49 9 71 87 74 59 48 10 358
50-54 13 57 97 68 68 46 30 379
55-59 7 63 95 74 49 53 49 390
60-64 4 23 38 28 21 19 27 160
2: 65 2 4 10 9 3 4 - 32
Total 115 596 651 410 258 190 117 2,337
~)1)/1) Ì October 28, 2011 E-21
i I
EXHIBITS - DATA SUMMARYIi
Actives by Age and ServiceAnimal Services
M ~~Age :1 1-4
..25 1 1 - - - - - 2
25-29 - 5 1 - - - - 6
30-34 2 2 1 - - - - 5
35-39 1 1 2 - - - - 4
40-44 - 4 - - - - - 4
45-49 - 3 1 - - - - 4
50-54 1 - 1 - - - - 2
55-59 - 2 1 - - - - 3
60-64 - - - - - - - -
2: 65 - - 1 - - - - 1
Total 5 18 8 - - - - 31
C"i)'~ 1)/11' 1
, i .' October 28, 2011 E-22
8
0488EXHIBITS - DATA SUMMARY
Ii
1ü
-S 200;:Z 150
100
50
o
Active Age DistributionMiscellaneous
400
350
300
250
,-.-- -- -c-.-- f- - -.-- - f- - - -
--- - - f- - - -f- - - f- - - -n n
, , I
0:5 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 ::65
Age
dWOctoberZ8, Z011 E-23
EXHIBITS - DATA SUMMAYIi
i-~ 40
"S
i 300
200
100
o
Active Service DistributionMiscellaneous
700
60
500
,---- -- ,.- ~-r ~
,
ü- 20-24 ~55-9 10-14 15-19
Seivice
5 ldW." / tOetoberZ8,Z011 E-24
489
IiEXHIBITS - DATA SUMMARY
å) 40
~Z 30
20
Active Age Dis tributionSafety
70 -- - -~ ~ -~ ~ - ,. -~ ~ - - ~
--f- ~ ~ - - ~ ,.- f- ~ ~ - - ~ ~
n ..i I
60
.50
10
o
.:5 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-65 2:65
Age
úW. '.: ¡. October 28, 2011 E-25
IiEXHIBITS - DATA SUMMAY
i-~ 80
"å
Z 60
Active Service DistrbutionSafety
140
120
. r---- r-- -- -=---I. r
i
100
40
20
o
0-4 20-24 ::55-9 10-14 15-19
Seivice
E-26
o
i I
0490EXHIBITS - DATA SUMMARY
Ii
Retiree Medical Coverage by Age GroupMiscellaneous
A~e ... . 2-Part Fanily W. T6táiUnder 50 5 - - 4 9
50-54 18 2 - 6 26
55-59 80 24 6 31 141
60-64 151 64 9 44 268
65-69 110 37 - 30 177
70-74 62 34 - 26 122
75-79 39 19 - 26 84
80-84 16 3 - 9 28
85 & Over 5 5 - 13 23
Total 486 188 15 189 878
Avera.ge Age 65.7 67.0 60.0 67.9 66.3
~, .... ..¡. October 28, 2011 E-27
i I
EXHIBITS - DATA SUMMARY Ii
Retie Age DistributionMiscellaneous
300
50
--
f-.- ,-- I- I- -- f- f- -II n n n
i
250
200i-Q)
S 150i100
o
'ÓO 50-54 55-59 60-64 65-69 70-74 75-79 80-84 ~85Age
~.. 1 October 28, 2011 E-28
5
0491
i IIiEXHIBITS - DATA SUMMARY
Retiree Medical Coverage by Age GroupSafety
\Age Siiide 2-PârtY Fâmiy Waived TotalUnder 50 3 - - 4 7
50-54 2 5 1 2 10
55-59 10 14 8 9 41
60-64 16 10 4 5 35
65-69 6 6 - 2 14
70-74 4 2 - 1 7
75-79 2 1 - 2 5
80-84 - - - - -
85 & Over - - - - -
Total 43 38 13 25 119
Average Age 61.2 61.5 57.8 58.8 60.4
(ß, - / 1, October 28, 2011 E-29
I,i I
EXHIBITS - DATA SUMMAY
45
40
35
30..~ 25..S:: 20Z
15
10
5
0
Retie Age DistributionSafety
----- -- f-
-n - - I- -r I I-QO 50-54 55-59 6064 65-69 70-74 75-79 8084 ~85
Age
(ßj October 28, 20 I I E-30
8
i I
0492EXHIBITS - ACTUARIAL ASSUMPTIONS
Ii
Assumpnnn Jalluary 1,. 2009 Valuanol1. Valuation Date . January 1,2009
. Fiscal Year 2009/10 & 2010/11
. Discount Rate .4.50% - ARC not pre-funded, assets invested in Countyinvestments
. General .3.00%Inflation
. Payroll . Aggregate Increases - 3.25%Increases . Merit Increases - CalPERS 1997-2002 Experience Study
. Active Medical .2011-14: 0%Contribution . 2015~ 3 % average annual increasesIncreases
. PEMHCA Year PEMHCA MinimumMinimum 2009 $101.00
2010 $105.002011 $108.002012+ Increases at CPI-U Medical (4.5%)
áW.. "1' October 28, 2011 E-31
EXHIBITS - ACTUARIAL ASSUMPTIONSIi
...
:laiilary 1;2009 '/. .A ~.a
. Medical Trend Increase from Pnor YearNon-Medicare Medicare
Year HMO PPO HMO PPO
2009 Actual PEMHCA Premiums2010 Actual PEMHCA Premiums2011 8.4% 9.0% 8.7% 9.3%2012 7.8% 8.3% 8.0% 8.5%
l l l l l2017+ 4.5% 4.5% 4.5% 4.5%. 2009 & 2010 premiums:
. Blue ShieId applied rollover credit
. PPOs applied reserves. 2011 and later PEMHCA premiums adjusted:
. Blue Shield: increase 1 % each year for 2011 - 2012
. PPOs: increase 1 % each year for 2011 - 2013. Actuarial .8%Loading . PEMHCA premiums have not increased despite PEMHCA average per
capita claims increases
5,((i..../ · ... October 28,2011 E-32
i I
.on
. CalPERSService
. Mortality,
Termination,Disability
. Retirement
. Active
EmployeeParticipation atRetirement
0493
IiEXHIBITS - ACTUARIAL ASSUMPTIONS
.lanual" 1,~0n~'Yal1la~
. County service plus i¡i service between age 30 and County hiredate
. CalPERS 1997-2002 Experience Study
. CalPERS 1997-2002 Experience StudyLevel ERA
Misc 2 %@55 60Safety (PoIice) 3 %@50 55Safety (Probation) 2 %@50 56
. Curently covered - 100%
. Curently waived or OE H& W Trust - 95%
m:,;, t October 28, 2011 E-33
IiEXHIBITS - ACTUARAL ASSUMPTIONS
Assllnipnon ~L J 1, 2009 v~ilaa~~
. Medical Plan at . Actives - Weighted premium based on curent retiree electionRetirement . Retirees
. Pre-65~ Same as current election until age 65~ Weighted premium based on current post -65 retiree election
at age 65. Post-65 - Same as curent election
. Waived Retiree . Pre-65 - 20% re-elect at age 65Re-election . Post-65 - 0%
. Marital Status . Curently covered - curent marital statusat Retirement . Curently waived - 80% married
. Spouse Age . Actives - Males 3 years older than females
. Retirees - Males 3 years older than females if spouse birth date
not available
m:i.j. October 28, 2011 E-34
8
0494
EXHIBITS - ACTUARIAL ASSUMPTIONSIi
ASSUliPtÎ9il J;~llUary i; y .......... Surviving . 100%
SpouseParticipation
. Dependents . Pre-65
. Actives~ Misc -10%~ Safety - 25%
. Retirees - same as curent coverage. Post-65 - 0%
. Medicare . 100%Eligible Rate . Everyone eligible for Medicare wil elect Part B coverage
. Future New . Valuation - Closed Group
Participants . Longevity Studies Projections - Open Group
(ß. YlOctober28,2011 E-35
EXHIBITS - ACTUARIAL METHODSIi
"'". eLi ..'J 1, ~n
. Cost Method . Entry Ag;e Normal
. Funding; Policy . Pay- As- You-Go
. Plan Assets . None
. Amortization Method . Level Percent of Payroll
. Amortization Periods . Initial VAAL - 30 year closed period. Assumption and Plan Changes -20 year closed period. Experience and Contribution Gains/Losses - 15 year rolling
(open) period. Maximum 30 year combined period
. Implied Subsidy . Employer cost for allowing retirees to participate at activerates
. Community rated plans not required to value implied subsidy
. PEMHCA is a community rated plan
. Valuation does not include an implied subsidy
5.(ß· .. / 1 October 28, 2011 E-36
0495
i I
EXHIBITS - DEFINITIONSIi
Present Value of Projected Benefits(PVPB)
Without Assets With Assets
Current NormalCost
Current NonnalCosl
. PVPB - Present Value of all Projected Benefits. Discounted value, at measurement date (valuation date) of all future expected
benefit payments.· Expected benefit payments based on various actuarial assumptions
Iß\ 9ilOctober 28, 2011 E-37
i I
EXHIBITS - DEFINITIONSIi
. AAL - Actuarial Accrued Liabilty / Actuarial Obligation. Discounted value at measurement date (valuation date) of benefits "eared" through
measurement date based on actuarial cost method. Portion ofPVPB "earned" at measurement
. NC - Normal Cost
. Value of benefits "earned" during current year
. Portion of PVPB allocated to current year
. ARC - Annual Required Contribution. Normal Cost plus amortization of unfded AAL. ARC in excess of pay-as-you-go costs not required to be funded
. Actuarial Cost Method
. Determines how benefits are "earned" or allocated to each year of service· Has no effect on PVPB. Has significant effect on Actuarial Obligations and Normal Cost
. Pay-As-You-Go Cost (PayGo)
. Actul cash benefit payments to retirees
· PayGo is the expected retiree benefit payments for the year while Normal Cost isthe expense for benefits accrued by active employees during the year~ E-38.... f 1. October 28, 2011
(!
