Embed Size (px)
Citation preview
Young Men’s Christian Association Retirement Fund
Ninety-Eighth Annual Report of the Actuary
Prepared as of June 30, 2019
500 Plaza Drive Secaucus, NJ 07096
July 31, 2019
Board of Trustees
Young Men’s Christian Association Retirement Fund
120 Broadway
New York, NY 10271-1999
Members of the Board of Trustees:
This valuation indicates that as of June 30, 2019 the Fund’s net assets aggregated $7,127,683,941 while
required reserves as of that date totaled $7,559,711,571. Therefore, as of June 30, 2019 there was an
actuarial deficit of $432,027,630, which is the amount of the excess of the required reserves over assets.
The Fund’s investment and benefits horizons are long-term, and its investment approach, based on
reasonable asset allocation strategies, should produce future investment returns to maintain the Fund
over a long period of time.
Based on the Fund’s current investment approach and results of the asset liability modeling study
presented at the May 16, 2018 Board meeting, the funded status of the Fund is expected to improve over
time. The funded status has declined from the prior valuation primarily as a result of investment returns
lower than anticipated. We continue to work closely with the management team at the Fund to monitor the
funded status and the Fund’s overall financial health.
In preparing this valuation, the Fund provided detailed information on all participants (actives, inactives,
retirees and beneficiaries). This data was compared with historical information for reasonability and
consistency. The assumptions used in the valuation were selected and prescribed by the Fund and, in our
opinion, are reasonable and appropriate. The Fund’s valuation reflects all plan provisions through the
June 30, 2019 valuation date.
The report was prepared under the supervision of James Stewart and Aaron Shapiro, who are Enrolled
Actuaries, Fellows of the Society of Actuaries and members of the American Academy of Actuaries and
meet the qualification standards of the Academy to render this actuarial opinion contained herein.
Future actuarial measurements may differ significantly from current measurements due to plan
experience differing from that anticipated by the economic and demographic assumptions, increases or
decreases expected as part of the natural operation of the methodology used for these measurements
and changes in plan provisions or applicable law. Because of limited scope, Buck performed no analysis
of the potential range of such future differences.
As in prior years, our full report is on the Fund’s website at http://www.yretirement.org.
Very truly yours,
James A. Stewart, FSA, EA, MAAA Aaron Shapiro, FSA, EA, MAAA
Principal, Wealth Practice Principal, Wealth Practice
Table of Contents
Section
I. Summary of Principal Results ......................................................................... 3
II. Participant Data ............................................................................................... 5
III. Assets .............................................................................................................. 5
IV. Comments on Valuation .................................................................................. 6
V. Reconciliation of Actuarial Status .................................................................... 6
VI. Gain and Loss Analysis ................................................................................... 7
VII. Plan Actuarial Experience ............................................................................... 8
VIII. Sensitivity Analysis and Composite Discount Rate ....................................... 11
IX. New York State Department of Financial Services ....................................... 12
Schedule
A. Valuation Balance Sheet ............................................................................... 13
B. Outline of Actuarial Assumptions .................................................................. 14
C. Summary of the Main Plan Provisions as
Interpreted for Valuation Purposes ............................................................... 16
D. Tables of Participant Data ............................................................................. 22
E. Projection of Benefits and Contributions ....................................................... 29
F. Historical Summary of Assets, Required Reserves,
Actuarial Status, and Dividends .................................................................... 30
G. Actuarial Standards of Practice No. 51 Disclosures ...................................... 31
3
I. Summary of Principal Results
1. For convenience of reference, a summary of data used in the current and preceding valuations is
shown below.
Valuation Date June 30, 2019 June 30, 2018 Active participants Number 55,761 55,182 Annual compensation $ 1,780,236,692 $ 1,716,188,623 Average annual compensation $ 31,926 $ 31,101 Average age 43.7 43.6 Inactive participants* Number 33,163 37,845 Average age 47.7 46.6
Tax-Deferred Savings Plan Active participants 34,490 32,855 Average age 42.6 42.7 Inactive participants* 8,509 8,430 Average age 48.9 48.1 Retired participants and beneficiaries* Number 14,785 14,371 Annual retirement allowances $ 279,791,599 $ 265,600,640 Average annual retirement allowance $ 18,924 $ 18,482 Average age 73.1 72.9 Death Benefit Only Number 890 895 Amount $ 6,035,057 $ 6,942,613 Valuation Assets $ 7,127,683,941 $ 7,051,927,336 Required Reserves: Retirement Plan Account balances $ 3,579,080,784 $ 3,617,817,934 Tax-Deferred Savings Plan balances 864,346,582 798,441,848 Tax-Deferred Loans Receivable 10,889,817 10,199,807 Reserve for Future Annuity Benefits 2,876,036,630 2,720,425,890 Death and Disability Reserves 229,357,758 231,021,290 Sub-Total Required Reserves $ 7,559,711,571 $ 7,377,906,769 Additional Interest Credit 0 39,503,754 Total Required Reserves $ 7,559,711,571 $ 7,417,410,523 Actuarial Status - Surplus / (Deficit) $ (432,027,630) $ (365,483,187)
* The number of inactive participants and beneficiaries include former spouses of participants with a QDRO.
4
2. The Fund sponsors the following two plans for employees of participating YMCAs: the Young Men’s
Christian Association Retirement Fund Retirement Plan (Retirement Plan), which is a multiple
employer, defined contribution, money purchase, church pension plan intended to be tax-qualified
under Section 401(a) of the Internal Revenue Code of 1986, as amended (Code), and the Young
Men’s Christian Association Retirement Fund Tax-Deferred Savings Plan (Tax-Deferred Savings
Plan), which is a multiple employer, church retirement income account plan as defined under Section
403(b)(9) of the Code. Effective July 1, 2006, the Retirement Plan is treated as having made an
election under Section 410(d) of the Code to become subject to the Employee Retirement Income
Security Act of 1974, as amended (ERISA), pursuant to Public Law 108-476.
3. Section VIII sets forth a sensitivity analysis based on four factors: potential mortality improvement,
interest rates before and after retirement, lifetime interest credits, and the annuity conversion rate for
future contributions. In addition, the cost of an additional 1% interest credit for six months and the
composite single effective discount rate are shown in this section.
4. The actuarial assumptions are outlined in Schedule B and are the same assumptions as used in the
previous valuation. The mortality assumption includes projected generational improvements in each
future year. For that reason, the mortality rates shown in Schedule B for this valuation differ from the
rates shown in last year’s report for that valuation.
5. We believe that all assumptions are reasonable and appropriate. A comparison of actual experience
with that predicted is monitored every year and is shown in Section VII.
6. Schedule C summarizes the current provisions of the Fund as interpreted for the valuation.
7. Schedule E sets forth a projection of benefits and contributions of the Fund’s plans. The projections
are based on the closed population on May 31, 2019 and do not reflect any new entrants. The
projections do not anticipate any further voluntary contributions to the Fund’s plans. Since the
valuation does not reflect new entrants to the Plans after the valuation date and the Fund has
experienced significant growth over a long period of time, the projection is valid for the short term but
will underestimate benefits and significantly underestimate contributions after a short period of time
as new entrants join the Plans.
8. Beginning with valuations with measurement dates on or after November 1, 2018, statements of
actuarial opinion that include actuarially determined contributions for pension plans have to identify
and describe the risks to the future financial condition of the plan. Actuarial Standard of Practice No.
51 (ASOP 51) requires certain disclosures of potential risks to the plan and provides useful
information for intended users of actuarial reports that determine plan contributions or evaluate the
adequacy of specified contribution levels to support benefit provisions. Schedule G describes some of
these risks in detail.
5
II. Participant Data
1. Participant data, which was submitted as of May 31, 2019 and adjusted to June 30, 2019, was
furnished by the Fund. The data was reconciled with the submitted data as of May 31, 2018 and
discrepancies were resolved. The data was then rolled forward to June 30, 2019 based on aggregate
account balances and annuities in receipt on June 30, 2019.
2. Tables 1A, 1B, and 1C of Schedule D show fifth age and service distributions of the number, annual
compensation, Retirement Plan account balances and Tax-Deferred Savings Plan account balances
of active participants who were included in the valuation. Tables 2A and 2B show the number,
Retirement Plan account balances and Tax-Deferred Savings Plan account balances of inactive
participants. Tables 2A and 2B include, respectively, those who are not entitled to an account balance
pursuant to a QDRO and those who are entitled to an account balance pursuant to a QDRO. Table
3A presents the number and annual retirement allowances of retired participants not entitled to a
benefit pursuant to a QDRO. Table 3B presents the number, annual retirement allowances for
beneficiaries of deceased participants, and former spouses receiving a benefit pursuant to a QDRO.
The tables are all based on data as of May 31, 2019.
3. The inactive participant headcount as of May 31, 2019 of 33,163 includes 32,823 transition and
deferred vested participants, and 340 excess leaves of absence.
4. Table 1C shows active participants in the Tax-Deferred Savings Plan. This includes 12,125
individuals who are not yet eligible to participate in the Retirement Plan, are making voluntary pre-tax
contributions, and are valued for their account balances only.
III. Assets
1. The amount of the assets taken into account in this valuation is based on information furnished by the
Fund.
2. The market value of assets is reported as $7,127,683,941. Every year the return, net of expenses, on
the Valuation Assets is determined on a simplistic basis, assuming contributions and benefit
payments are all made in the middle of the plan year on January 1. The net return on Valuation
Assets for the year ending June 30, 2019 on this basis is a return of 4.88% as developed below:
(a) Market value at June 30, 2018 $ 7,051,927,336
(b) Net contributions to the Fund 295,407,991
(c) Benefit payments 557,501,841
(d) Market value at June 30, 2019 $ 7,127,683,941
(e) Net Yield for year = (d) – (a) – (b) + (c) $ 337,850,455
(f) Annual net rate of return = 2 (e) / [(a) + (d) – (e)] 4.88%
3. We have not performed an analysis to determine if this return is better or worse than returns available
in the market for the year ending June 30, 2019.
6
IV. Comments on Valuation
The actuarial valuation covers the Retirement Plan and the Tax-Deferred Savings Plan for eligible
employees of participating YMCAs as well as the 12,125 individuals who are not yet eligible to participate
in the Retirement Plan but who have elected to make voluntary pre-tax contributions to the Tax-Deferred
Savings Plan.
Schedule A of this report contains the valuation balance sheet, which shows the assets and liabilities of
the Fund as of June 30, 2019 and June 30, 2018. The Required Reserves are shown by group. The
groups are retired participants and beneficiaries receiving annuities, retirement plan account balances,
tax-deferred savings account balances, and other liabilities. Other liabilities reflect the value of annuity
conversions, death and disability benefits in excess of the account balance, and vested refunds. Future
contributions reflect regular participant and YMCA contributions to the Retirement Plan. The valuation
assumes that no future voluntary contributions are made.
The YMCA Retirement Fund’s funded status has declined since June 30, 2018. Results of the asset
liability modeling study presented at the May 16, 2018 Board meeting indicate that the funded status is
expected to improve over time. In addition, based on our April 2016 analysis of the Fund’s investment
policy and current allocation, we concluded that the Fund can be expected to earn in excess of 5.9% in
the long term and a discount rate equal to or less than that amount is fully supported. The current
valuation uses an annual discount rate of 5.0% prior to retirement and 6.0% after retirement (and these
rates will continue to be reviewed for future valuations). This combination produces an equivalent
composite discount rate of about 5.60% for the period before and after retirement.
V. Reconciliation of Actuarial Status
The Actuarial Surplus is the difference between the Valuation Assets and the Required Reserves. If this
amount is negative then it is called an Actuarial (Deficit). The Actuarial Surplus is determined each year,
and the reasons for change in this amount are due to investment performance, demographic experience,
benefit changes, and revised actuarial assumptions. A reconciliation for the period from June 30, 2018 to
June 30, 2019 is as follows:
1. Actuarial Surplus / (Deficit) as of June 30, 2018 $ (365,483,187)
2. Expected Growth in Surplus / (Deficit) (20,467,058)
3. Benefit Changes (Plan Amendments / Fund Resolutions) Incremental cost of interest declaration of 4% for the period January 1, 2019 to June 30, 2019
(19,751,877)
4. Net Gain (Loss) (see Section VI of this Report) (26,325,508)
5. Actuarial Surplus / (Deficit) as of June 30, 2019 $ (432,027,630)
7
VI. Gain and Loss Analysis
Actuarial gains and losses arise when actual results vary from those expected by the actuarial
assumptions. An analysis of the amounts of experience gains and (losses) by major component during
the current and previous years is as follows:
Attributable to: Year Ended
June 30, 2019
Year Ended
June 30, 2018
Investment Experience $ (38,140,744) $ 211,219,149
Net other experience (balance)* 11,815,236 39,193,142
Total net gain (loss) $ (26,325,508) $ 250,412,291
*The cumulative “Net other experience” for the five year period ending June 30, 2019 is $153,371,195.
The total net gain or (loss) for the last ten years and the net other experience (balance) for the last five years is as follows:
Year Ended Gain or (Loss) Net Other
Experience (Balance)
June 30, 2019 $ (26,325,508) $ 11,815,236
June 30, 2018 250,412,291 39,193,142
June 30, 2017 459,984,106 44,102,295
June 30, 2016 (560,327,226) 31,970,085
June 30, 2015 (105,078,866) 26,290,437
June 30, 2014 520,825,442
June 30, 2013 289,231,610
June 30, 2012 (249,270,471)
June 30, 2011 667,189,335
June 30, 2010 333,523,601
8
VII. Plan Actuarial Experience
Records maintained of the actual experience of active participants, inactive participants, retired
participants and beneficiaries are compared with that expected on the basis of the tables outlined in
Schedule B. As a result, deviations in the experience from that anticipated will be noted and any
adjustments believed necessary will be brought to the attention of the Fund’s Board.
1. Decremental experience (expected and actual) during the year as well as a comparison with recent
plan year experience are as follows:
Criteria Expected Actual Ratio (Actual/Expected) (c) ÷ (b)
(a) (b) (c) 2018-
19 2017-
18 2016-
17 2015-
16 2014-
15 5 Year
Average
Withdrawal from Active Service - Less than 5 years of service 2,413 2,735 1.13 1.08 1.12 1.15 1.07 1.11 - 5 to 10 years of service 2,422 3,075 1.27 1.19 1.25 1.34 1.09 1.23 - 10 or more years of service 1,728 2,157 1.25 1.17 1.21 1.23 1.14 1.20 Eligible for Retirement* - Age 55-69 1,805 1,728 0.96 0.96 0.97 1.03 0.81 0.95 - Age 70+ 242 306 1.26 1.06 1.20 1.34 0.80 1.13 Disability Retirement (5 or more years of participation and disabled) 2 0 0.00 1.00 0.50 0.00 1.00 0.50 Death in Active Service 101 59 0.58 0.54 0.66 0.70 0.51 0.60 Death from Inactive Status 70 82 1.17 1.26 1.07 1.24 1.21 1.19 Death after Retirement 436 499 1.14 1.07 1.11 1.02 0.95 1.06
* This represents participants eligible to retire as of May 31, 2018. For the twelve month period ending May 31, 2019, 2,101 participants actually retired from the fund, of which 361 actually started to collect an annual allowance, 872 received a lump sum and 868 were entitled to deferred benefits. Those who had previously retired and were already receiving an annuity were not counted.
9
2. Average age is reviewed to determine the percent who retire immediately upon termination or those
who defer retirement to a time subsequent to termination from service. This is summarized and
compared to results for the last 4 years as follows:
Number Who Retired
Age at Termination
Deferred No LS
Deferred Partial LS
Annuity No LS
Annuity Partial LS Full LS Total
55-59 316 31 28 3 294 672
60-61 95 12 17 5 110 239
62-64 141 17 81 14 155 408
65-69 145 22 100 27 154 448
70+ 63 26 53 33 159 334
Total 760 108 279 82 872 2,101
Average Age 62 65 66 69 64 64
Percent Who Terminated and Commenced an Annuity Immediately or Received a Lump Sum
Age at Termination
2018- 2019
2017- 2018
2016-2017
2015-2016
2014- 2015
5 Year Average
55-59 48% 48% 44% 42% 43% 45%
60-61 55% 54% 55% 48% 53% 53%
62-64 61% 61% 58% 60% 61% 60%
65-69 63% 65% 64% 61% 64% 63%
70+ 73% 74% 74% 66% 71% 72%
3. The average age at time of collecting an annuity for those participants who commenced their benefit
from inactive status over the past five years is as follows:
Number of Deferred Vested Participants
Who Commenced Benefits
Age at Commencement
2018- 2019
2017- 2018
2016- 2017
2015- 2016
2014- 2015
55-59 85 88 102 128 98
60-64 119 146 132 135 140
65-69 147 146 147 137 112
70+ 53 76 59 41 48
Total 404 456 440 441 398
Average Age 64 65 64 63 63
10
4. The average age at time of collecting an annuity for all participants who commenced their annuities
during the twelve-month period ending May 31, 2019 is as follows:
Age at Annuity Commencement
Number of Participants who
Commenced Benefits
55-59 116 60-64 236 65-69 274 70+ 139
Total 765
Average Age 66
5. The experience regarding the incidence of lump sums over a 5-year period indicates that of the total
value of account balances that left participant accounts, approximately 39% was distributed in the
form of a lump sum and 61% was converted to an annuity. The assumption will continue to be
monitored.
Percent of Account Balances
Leaving the Fund as a Lump Sum
2018- 2019
2017- 2018
2016- 2017
2015- 2016
2014 - 2015
Percent of Account Balance Paid as Lump Sum 59%* 33% 32% 38% 32%
* Percentage reflects $141.5 million of lump sum payments made during the February 1 to April 30 portability window. Excluding
these portability window payments, the percentage of account balances leaving as a lump sum was approximately 41%.
On a composite basis, the valuation assumes approximately 35% of the account balances leave the Fund
as lump sums.
6. Compensation increased approximately 4.22% during the year ending May 31, 2019 for the closed
group of 45,122 surviving actives as of May 31, 2018 and May 31, 2019.
7. During any one year period, the actual experience may be different from that predicted. This is a
result of hiring patterns, economic conditions and other factors. However, over several years it is
expected to be close to that expected, or changes may be proposed.
11
VIII. Sensitivity Analysis and Composite Discount Rate
The results of the valuation are primarily dependent upon the actual rates of return on Fund assets, plan
provisions and assumptions. We have shown the sensitivity in the Required Reserve to a change in
certain assumptions or plan provisions as follows:
• Valuation Mortality Table: if the average life expectancy were to increase by one year, the Required
Reserve would increase by about $152.2 million (approximated by a one-year setback to the RP-
2014 blend of 75% Blue Collar and 25% White Collar Mortality Tables using the 2014 Buck Modified
Improvement Scale for projection).
• Interest Rates –
The rate of 6.0% is used for the period after retirement. The Required Reserve would increase by
about $360.2 million if this rate were lowered to 5.5% or would decrease by about $332.5 million if the
rate were increased to 6.5%.
The rate of 5% is used for the period before retirement. The Required Reserve would increase by
about $250.2 million if this rate were lowered to 4.5% or would decrease by about $226.8 million if the
rate were increased to 5.5%.
• Interest Credit on Participant Accounts – the interest credit is 5% for contributions prior to January 1,
1996 and 3% for contributions after December 31, 1995.
If the credit were permanently increased by .5% the Required Reserve would increase as follows:
Contributions prior to January 1, 1996 5.0% to 5.5% $ 10.9 million
Contributions after December 31, 1995 3.0% to 3.5% $ 246.4 million
If interest credits were permanently reduced by .5%, the Required Reserve would decrease as
follows:
Contributions prior to January 1, 1996 5.0% to 4.5% $ 10.5 million
Contributions after December 31, 1995 3.0% to 2.5% $ 225.8 million
• Annuity Conversion Rates – the annuity conversion rate is 7% for contributions after
December 31, 1995. If the annuity conversion rate were lowered to 6% for future contributions, the
Required Reserve would decrease by about $116.3 million.
The cost of granting an extra 1% interest credit for six months to all accounts is about $22.3 million.
The valuation uses an annual discount rate of 5.0% prior to retirement and 6.0% after retirement. This
combination produces an equivalent composite discount rate of about 5.60% for the period before and
after retirement.
All sensitivities have been estimated based on liabilities as of the census date of May 31, 2019.
12
IX. New York State Department of Financial Services
The YMCA Retirement Fund files annual reports with information required by the New York State
Department of Financial Services. This filing contains information on assets, required reserve, and other
key valuation results.
13
Schedule A
Valuation Balance Sheet Showing the Assets and Liabilities of the Young Men's Christian Association Retirement Fund as of June 30, 2019 and June 30, 2018
Valuation Date June 30, 2019 June 30, 2018 Retired participants and beneficiaries - Liability for annuities in receipt
$ 2,999,611,882 $ 2,860,183,051
Retirement Plan Account Balances Actives $ 2,119,878,780 $ 2,080,716,800 Inactives 1,459,202,004 1,537,101,134 Subtotal $ 3,579,080,784 $ 3,617,817,934 Tax-Deferred Savings Account Balances Actives $ 607,329,947 $ 566,737,133 Inactives 267,906,452 241,904,522 Subtotal $ 875,236,399 $ 808,641,655 Other Liabilities Actives $ 1,031,285,404 $ 1,001,342,971 Inactives 128,582,519 109,644,850 Retirees 21,898,137 21,031,347 Subtotal $ 1,181,766,060 $ 1,132,019,168 Present Value of Future Contributions $ (1,075,983,554) $ (1,040,755,039) Additional Interest Credit $ 0 $ 39,503,754
Total Required Reserve $ 7,559,711,571 $ 7,417,410,523
Valuation Assets $ 7,127,683,941 $ 7,051,927,336 Actuarial Surplus / (Deficit) $ (432,027,630) $ (365,483,187) Valuation Assets as a Percent of Required Reserves 94.29% 95.07%
14
Schedule B
Outline of Actuarial Assumptions and Methods
Discount Rate: 5.0% per annum used for the period before retirement and 6.0% per annum used for the
period after retirement.
Deaths after Retirement: The RP-2014 blend of 75% Blue Collar and 25% White Collar Mortality Tables
with mortality improvements projected based on the Buck Modified 2014 Improvement Scale was used for
both males and females to calculate reserves for the period after service retirement. A special table was
used for the period after disability retirement.
Retired Death Benefit Conversion: For those eligible to annuitize up to 90% of the death benefit at
retirement, assumed that 25% of the retired death benefit will be paid as a lump sum settlement at death
and 75% will be used to purchase an annuity at retirement.
Separations from Active Service: Representative values of the assumed annual rates of mortality,
disability, termination from service and retirement are as follows:
Representative Mortality Rates*
Age Male Female Age Male Female
21 0.0480% 0.0160% 50 0.1810% 0.1100% 25 0.0520 0.0170 55 0.3040 0.1700 30 0.0490 0.0220 60 0.5160 0.2460 35 0.0570 0.0290 65 0.9090 0.3680 40 0.0680 0.0400 69 1.3370 0.5570 45 0.1050 0.0650
*Mortality is based on a RP-2014 blend of 75% Blue Collar and 25% White Collar Mortality Tables. The rates shown are pre-
commencement rates for the year 2019.
Age Select Termination Rates by Years of Service Annual Rates of Retirement
1 2 3 4 5 to 9 10+ Age Rate Age Rate
21 40% 35% 33% 30% -- -- 55 13% 63 18%
25 32 31 28 25 23% 24% 56 10 64 18
30 59 28 25 23 18 18 57 10 65 22
35 24 23 22 19 15 11 58 10 66 20
40 20 19 18 17 14 10 59 12 67 20
45 19 18 17 15 13 9 60 12 68 20
50 18 17 16 13 12 7 61 15 69 15
62 18 70* 15
*It is assumed that participants over age 70 will retire at the end of the plan year following the valuation.
15
Disability: The disability rates are based on 20% of New York State Teachers Retirement System disability retirement rates. Since that table ends at age 54, we have extrapolated the rates to age 59 for valuation purposes. Representative rates of disability are shown in the table below:
Age
Annual Rates of Disability
Male Female
30 0.0003% 0.0003% 35 0.0015 0.0027 40 0.0031 0.0072 45 0.0097 0.0133 50 0.0314 0.0287
Salary Increases: Representative values of the assumed annual rates of future salary increase are as
follows:
Age Annual Rate of Salary Increase
Age Annual Rate of Salary Increase
Salary Increase Salary Increase 21 7.2% 50 1.3% 25 5.4 55 1.1 30 3.8 60 0.9 35 2.9 65 0.8 40 2.1 69 0.8 45 1.6
Future Administrative Expenses: Paid from Fund earnings.
IRC Section 401(a)(17) Compensation Limit: Amounts applicable as of the start of the plan year are not
assumed to change in the future. The limit in effect for this actuarial valuation is $280,000.
Lump Sums: 50% of participants are assumed to receive lump sum distributions of their total account
balance if their Pre-2009 YMCA account balance is less than or equal to $25,000 at termination or
retirement. For participants with Pre-2009 YMCA account balances over $25,000, 25% of participants at
termination or retirement are expected to take their participant account balances as a lump sum. For
contributions after July 1, 2009, the lump sum threshold changed to $5,000 for those who are under 55
years of age and the YMCA account balance includes contributions made on behalf of the participants.
Annuity Starting Date: Of those terminating who are eligible to collect an immediate annuity and are less
than age 60, it is assumed that 60% start to collect immediately, and the remaining 40% will collect at age
62. Those who are ages 60 to 64 are assumed to start collecting their benefit one year after termination.
Those who are ages 65 and older are assumed to start collecting their benefit immediately following
termination.
Data Collection and Methodology: Data was collected and analyzed by individual as of May 31, 2019
for all participants in the Fund. The data was then rolled forward to June 30, 2019 based on aggregate
account balances and annuities in receipt on June 30, 2019.
Summary of Changes from the June 30, 2018 Valuation
None.
16
Schedule C
Summary of the Main Provisions of the Retirement Plan as Interpreted for Valuation Purposes
1. Definitions
"Normal retirement date" is the first day of the calendar month coincident with or next following the date
on which the participant attains age 62.
"Compensation" is the amount of a Participant’s wages while employed at a YMCA that are subject to
federal income tax withholding or wage reporting (on IRS Form W-2). Compensation also includes pre-tax
salary reduction amounts contributed by the participant’s YMCA to certain employee benefit plans.
Compensation that may be taken into account is limited by IRS rules. For 2019, the limit is $280,000.
"Service" means in general all service as an employee.
"Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality
tables and interest rates as shall be adopted from time to time by the Fund’s Board for use under the
Retirement Plan.
2. Participation
Effective July 1, 2006, all employees must attain age 21 and work 1,000 hours of service in each of two
12-month periods commencing on date of employment or anniversary thereof in order to participate in the
Retirement Plan. Once an employee is enrolled in the Retirement Plan, they are immediately and 100%
vested. An employee at a contributory participating YMCA who had attained age 60 at the time of
employment and who satisfies the service requirement is eligible to elect not to participate in the
Retirement Plan.
3. Annuity Purchase Rates
For pre-1996 contributions and interest credits thereon at the normal 5.0% rate, purchase rates are based
on the 1951 Group Annuity Male Mortality Table rated back 3 years at an interest rate of 8.0%. For post-
1995 contributions, interest credits for pre-1996 contributions above the normal 5.0% rate, for calculating
disability retirement allowances and for funds rolled over after March 1, 2003 and held by the Fund for 10
or more years, purchase rates are based on the 1995 Buck Mortality Table weighted 50% male/50%
female at an interest rate of 7.0%. For funds rolled over after March 1, 2003 and held by the Fund for
less than 10 years, an interest rate of 5.0% is used instead of 7.0% in the determination of purchase
rates.
17
4. Account Balances
Accounts are credited with interest credits as determined by the Fund’s Board. Fund documentation
prescribes that interest credits be at a level of 5.0% for contributions deposited prior to January 1, 1996.
Beginning January 1, 2004, the Fund’s Board has set forth an interest credit goal of 3.0% for all
contributions deposited after December 31, 1995.
Accounts under the Tax-Deferred Savings Plan are provided with similar interest credits based on the
date of contribution.
5. Benefits
Normal Retirement Allowance
Conditions for Allowance A participant may retire upon reaching normal retirement
date.
Amount of Allowance The normal retirement allowance is a life annuity, which
is the actuarial equivalent of the sum of the participant's
accounts annuitized in accordance with the annuity
purchase rates described in Section 3 on the effective
date of the allowance.
Early Retirement Allowance
Conditions for Allowance Age 55.
Amount of Allowance The early retirement allowance is an annuity, which is
the actuarial equivalent of the sum of the participant's
accounts on the effective date of the allowance.
Deferred Vested Retirement Allowance
Conditions for Allowance Effective July 1, 2006, immediate vesting applies for all
new participants with two years of service for
participation requirement.
Amount of Allowance The deferred vested retirement allowance is an annuity
which is the actuarial equivalent of the sum of the
participant's accounts on the effective date of the
allowance, which is at any time on or after age 55.
18
Disability Retirement Allowance
Conditions for Allowance 5 years of participation and total and permanent disability
prior to reaching age 60.
Amount of Allowance The disability retirement allowance consists of:
• A participant annuity which is the actuarial equivalent
of the participant's accumulated regular and
additional payments on the effective date of the
allowance; and
• A YMCA annuity which, together with the portion of
the participant annuity attributable to regular
participant payments, is sufficient to produce a
benefit equal to the amount of his normal retirement
allowance attributable to regular participant and
regular YMCA payments to which the participant
would have been entitled had service been con-
tinued to age 60, as if such regular payments had
been made on the basis of average compensation
for the five years of participation next prior to the
effective date of the disability allowance and credited
with interest at a rate of 3% per annum; and
• A YMCA annuity which is the actuarial equivalent of
the participant's additional YMCA payments on the
effective date of the allowance.
Pre-Retirement Death Benefits
Condition for Benefit Upon the death of a participant before retirement while in
YMCA employment.
Amount of Benefit The benefit, which is paid in a lump sum to the
beneficiary designated or to the participant's estate,
consists of: the balance in the Retirement Plan basic
accounts but not less than $10,000 plus any other
account balance.
In lieu of the above death benefit payable to the
beneficiary of a deceased participant, the beneficiary
may elect to convert the participant’s accounts, in whole
or in part, into a single life annuity which is the actuarial
equivalent of the account balance.
Effective 1/1/2019, new participants in the Retirement
Plan are not eligible for the above death benefit. The
death benefit payable is the participant’s total account
balance upon death with an interest credit for up to three
months.
19
Normal Form of Benefit • Married participant - 50% joint and survivor annuity.
• Single participant - Single life annuity.
Optional Forms of Benefit Subject to spousal consent, if applicable:
• Single life annuity
• Principal guaranteed life annuity
• Joint and survivor annuity
• For contributions made prior to July 1, 2009: a lump
sum settlement if the participant’s YMCA basic
account is less than or equal to $25,000 at time of
termination.
• For (1) contributions made after July 1, 2009, or (2)
total contributions made prior to and after July 1,
2009 in aggregate: a lump sum settlement if the
participant’s YMCA basic account (including YMCA
contributions on behalf of participants), is less than
or equal to $50,000 at the time of request if
requested before July 1, 2019 or $100,000 if
requested after July 1, 2019 for those over 55 years
of age, and $5,000 at time of request for those under
55 years of age.
20
Retired Death Benefit Upon the death of a retired participant, the designated
beneficiary or estate is paid an amount equal to the
annual amount of the retirement allowance without
optional modification, exclusive of any part thereof
attributable to additional participant or YMCA payments,
and reduced by any amounts paid while living, as
described below.
A participant may elect, at the time an application is
made for any retirement benefit, to convert up to 90% of
the retired death benefit described above in the form of a
permanent increase to his/her annuity. Effective
1/1/2019, any participant who has not attained age 55 at
1/1/2019 will not be eligible for this conversion and will
receive 100% of the retired death benefit as a lump sum
upon death.
Any beneficiary may elect to receive the aforesaid lump
sum death benefit otherwise payable as a life annuity of
equivalent actuarial value provided such lump sum is
greater than $5,000 at the time of death of the retired
participant.
Effective 1/1/2019, any new participant in the Retirement
Plan will not be eligible for the retired death benefit.
Lump Sum Distribution of
Participant Payments
A participant who severs employment may elect to
receive, in a lump sum, the accumulated regular and
additional participant payments. At retirement, a
participant can receive a lump sum distribution in lieu of
an immediate or deferred participant annuity.
6. Contributions
Participant Accounts Contribution rates are 0% to 5% of compensation as
specified in an agreement made by the participating
YMCA and the Fund’s Board. Participant paid
contributions are on an after-tax basis. Contributions are
to be continued as long as the participant is in active
service.
A participant may elect to contribute additional amounts
pre-tax to provide additional annuity benefits.
YMCA Accounts The rates are 5% to 12% of compensation. The
contributions are made on a pre-tax basis by the YMCA.
21
Maximum Annual Addition The maximum annual addition on behalf of a participant
is not to exceed the lesser of (i) $55,000 (adjusted for
increases in the cost of living in accordance with IRS
regulations), or (ii) 100% of compensation, where annual
addition means the sum of all payments during any
calendar year. Additional contributions may be allowed
under IRS regulations.
Summary of Changes from the June 30, 2018 Valuation
The lump sum portability window in effect from February 1, 2019 through April 30, 2019 is reflected in the
June 30, 2019 census and the reconciliation of assets from July 1, 2018 through June 30, 2019.
Schedule D
Table 1A
Years of Service Percentage of TotalAge 0 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 30 31+ Total Individual Cumulative
4,952 721 5,673 10.17% 10.17%21 to 25 79,669,901$ 14,323,194$ 93,993,095$ 5.28% 5.28%
16,088$ 19,866$ 16,568$ 4,505 3,136 421 8,062 14.46% 24.63%
26 to 30 110,409,305$ 78,577,711$ 11,900,588$ 200,887,604$ 11.28% 16.56%24,508$ 25,057$ 28,267$ 24,918$
2,556 2,451 1,471 243 6,721 12.05% 36.68%31 to 35 73,129,263$ 77,308,493$ 48,305,093$ 8,864,480$ 207,607,329$ 11.66% 28.22%
28,611$ 31,542$ 32,838$ 36,479$ 30,889$ 1,900 1,610 1,433 766 97 - 5,806 10.41% 47.09%
36 to 40 58,202,769$ 55,177,779$ 59,569,281$ 33,339,418$ 4,333,174$ 0 210,622,421$ 11.83% 40.05%30,633$ 34,272$ 41,570$ 43,524$ 44,672$ 36,277$
1,502 1,312 1,110 872 368 48 5,212 9.35% 56.44%41 to 45 45,044,908$ 42,531,741$ 41,697,747$ 44,388,351$ 20,639,722$ 3,010,597$ 197,313,066$ 11.08% 51.13%
29,990$ 32,417$ 37,566$ 50,904$ 56,086$ 62,721$ 37,857$ 1,473 1,366 1,192 761 614 242 22 5,670 10.17% 66.61%
46 to 50 45,907,968$ 43,821,702$ 42,411,184$ 35,046,209$ 39,000,365$ 15,837,080$ 1,484,359$ 223,508,867$ 12.57% 63.70%31,166$ 32,080$ 35,580$ 46,053$ 63,519$ 65,442$ 67,471$ 39,420$
1,251 1,286 1,253 859 525 417 139 5,730 10.28% 76.89%51 to 55 39,263,004$ 41,206,276$ 42,055,358$ 33,033,534$ 24,952,956$ 31,325,454$ 11,670,502$ 223,507,084$ 12.56% 76.26%
31,385$ 32,042$ 33,564$ 38,456$ 47,529$ 75,121$ 83,960$ 39,006$ 1,163 1,208 1,100 862 548 354 374 5,609 10.06% 86.95%
56 to 60 35,201,000$ 37,423,153$ 35,015,738$ 30,579,194$ 23,084,996$ 20,522,042$ 33,313,323$ 215,139,446$ 12.08% 88.34%30,267$ 30,979$ 31,832$ 35,475$ 42,126$ 57,972$ 89,073$ 38,356$
843 833 785 591 402 302 312 4,068 7.30% 94.25%61 to 65 21,199,582$ 21,886,590$ 23,983,571$ 18,473,276$ 15,025,243$ 13,105,031$ 24,956,637$ 138,629,930$ 7.79% 96.13%
25,148$ 26,274$ 30,552$ 31,258$ 37,376$ 43,394$ 79,989$ 34,078$ 379 473 367 281 160 105 140 1,905 3.42% 97.67%
66 to 70 7,257,941$ 9,389,414$ 7,759,348$ 7,544,942$ 4,788,808$ 2,965,827$ 7,157,898$ 46,864,178$ 2.63% 98.76%19,150$ 19,851$ 21,143$ 26,850$ 29,930$ 28,246$ 51,128$ 24,601$
206 330 300 205 112 66 86 1,305 2.33% 100.00%71+ 3,186,386$ 5,032,891$ 5,181,175$ 3,864,644$ 1,736,058$ 1,381,885$ 1,780,633$ 22,163,672$ 1.24% 100.00%
15,468$ 15,251$ 17,271$ 18,852$ 15,501$ 20,938$ 20,705$ 16,984$ 20,730 14,726 9,432 5,440 2,826 1,534 1,073 55,761 100.00% 100.00%
Total 518,472,027$ 426,678,944$ 317,879,083$ 215,134,048$ 133,561,322$ 88,147,916$ 80,363,352$ 1,780,236,692$ 100.00% 100.00%25,011$ 28,975$ 33,702$ 39,547$ 47,262$ 57,463$ 74,896$ 31,926$
Percentage of Total CountIndividual 37.17% 26.41% 16.92% 9.76% 5.07% 2.75% 1.92% 100.00%Cumulative 37.17% 63.58% 80.50% 90.26% 95.33% 98.08% 100.00% 100.00%Percentage of Total CompensationIndividual 29.13% 23.97% 17.86% 12.08% 7.50% 4.95% 4.51% 100.00%Cumulative 29.13% 53.10% 70.96% 83.04% 90.54% 95.49% 100.00% 100.00%
Distribution of Active Participants by Fifth Age and Service Groupings with Number, Annual Compensation, and Average Annual Compensation as of May 31, 2019
22
Table 1B
Years of Service Percentage of TotalAge 0 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 30 31+ Total Individual Cumulative
4,952 721 5,673 10.17% 10.17%21 to 25 10,366,163$ 3,900,679$ 14,266,842$ 0.67% 0.67%
2,093$ 5,410$ 2,515$ 4,505 3,136 421 - 8,062 14.46% 24.63%
26 to 30 20,605,614$ 33,664,454$ 7,559,114$ 0 61,829,182$ 2.92% 3.60%4,574$ 10,735$ 17,955$ 7,669$ 2,556 2,451 1,471 243 - 6,721 12.05% 36.68%
31 to 35 14,353,633$ 46,136,383$ 44,735,461$ 10,051,190$ -$ 115,276,667$ 5.45% 9.05%5,616$ 18,823$ 30,412$ 41,363$ 17,152$ 1,900 1,610 1,433 766 97 - 5,806 10.41% 47.09%
36 to 40 10,695,139$ 33,891,448$ 66,151,796$ 49,824,465$ 7,405,960$ 0 167,968,808$ 7.94% 16.99%5,629$ 21,051$ 46,163$ 65,045$ 76,350$ 28,930$ 1,502 1,312 1,110 872 368 48 5,212 9.35% 56.44%
41 to 45 8,324,270$ 24,521,736$ 46,052,755$ 77,837,399$ 44,416,053$ 6,352,879$ 207,505,092$ 9.81% 26.80%5,542$ 18,690$ 41,489$ 89,263$ 120,696$ 132,352$ 39,813$ 1,473 1,366 1,192 761 614 242 22 5,670 10.17% 66.61%
46 to 50 8,766,098$ 25,321,274$ 46,526,814$ 63,759,651$ 97,314,415$ 47,293,782$ 4,160,384$ 293,142,418$ 13.86% 40.66%5,951$ 18,537$ 39,033$ 83,784$ 158,493$ 195,429$ 189,108$ 51,701$ 1,251 1,286 1,253 859 525 417 139 5,730 10.28% 76.89%
51 to 55 7,841,958$ 24,960,072$ 46,839,422$ 60,526,187$ 64,548,951$ 107,714,248$ 47,315,478$ 359,746,316$ 17.01% 57.67%6,269$ 19,409$ 37,382$ 70,461$ 122,950$ 258,308$ 340,399$ 62,783$ 1,163 1,208 1,100 862 548 354 374 5,609 10.06% 86.95%
56 to 60 6,830,685$ 24,282,741$ 43,336,036$ 61,688,787$ 65,151,295$ 73,832,829$ 168,851,017$ 443,973,390$ 20.99% 78.66%5,873$ 20,102$ 39,396$ 71,565$ 118,889$ 208,567$ 451,473$ 79,154$
843 833 785 591 402 302 312 4,068 7.30% 94.25%61 to 65 4,225,573$ 14,073,928$ 29,319,715$ 38,404,840$ 42,991,732$ 51,478,600$ 136,029,225$ 316,523,613$ 14.96% 93.62%
5,013$ 16,895$ 37,350$ 64,983$ 106,945$ 170,459$ 435,991$ 77,808$ 379 473 367 281 160 105 140 1,905 3.42% 97.67%
66 to 70 1,344,854$ 6,306,303$ 10,253,681$ 14,909,275$ 14,565,835$ 10,818,782$ 43,059,899$ 101,258,629$ 4.79% 98.41%3,548$ 13,333$ 27,939$ 53,058$ 91,036$ 103,036$ 307,571$ 53,154$
206 330 300 205 112 66 86 1,305 2.33% 100.00%71+ 585,321$ 3,115,930$ 6,458,869$ 7,362,308$ 4,253,268$ 4,763,983$ 7,165,495$ 33,705,174$ 1.59% 100.00%
2,841$ 9,442$ 21,530$ 35,914$ 37,976$ 72,182$ 83,320$ 25,828$ 20,730 14,726 9,432 5,440 2,826 1,534 1,073 55,761 100.00% 100.00%
Total 93,939,308$ 240,174,948$ 347,233,663$ 384,364,102$ 340,647,509$ 302,255,103$ 406,581,498$ 2,115,196,131$ 100.00% 100.00%4,532$ 16,310$ 36,814$ 70,655$ 120,541$ 197,037$ 378,920$ 37,933$
Percentage of Total CountIndividual 37.17% 26.41% 16.92% 9.76% 5.07% 2.75% 1.92% 100.00%Cumulative 37.17% 63.58% 80.50% 90.26% 95.33% 98.08% 100.00% 100.00%
Percentage of Total Account BalanceIndividual 4.44% 11.35% 16.42% 18.18% 16.10% 14.29% 19.22% 100.00%Cumulative 4.44% 15.79% 32.21% 50.39% 66.49% 80.78% 100.00% 100.00%
Distribution of Active Participants by Fifth Age and Service Groupings with Number, Retirement Plan Account Balance, and Average Account Balance as of May 31, 2019
23
Table 1C
Years of Service Percentage of TotalAge 0 to 5 6 to 10 11 to 15 16 to 20 21 to 25 26 to 30 31+ Total Individual Cumulative
1,517 - - - - - - 1,517 4.40% 4.40%<21 532,076$ -$ -$ -$ -$ -$ -$ 532,076$ 0.09% 0.09%
351$ -$ -$ -$ -$ -$ -$ 351$ 2,792 146 - - - - - 2,938 8.52% 12.92%
21 to 25 2,629,241$ 387,806$ -$ 0 0 0 -$ 3,017,047$ 0.51% 0.61%1,346$ 2,656$ -$ 0 0 0 -$ 1,027$ 3,132 1,016 165 - - - 4,313 12.51% 25.43%
26 to 30 6,659,511$ 4,160,670$ 931,220$ 0 0 -$ 11,751,401$ 2.01% 2.61%2,126$ 4,095$ 5,644$ 0 0 -$ 2,725$ 2,182 1,100 657 118 - 4,057 11.76% 37.19%
31 to 35 7,146,027$ 8,486,698$ 5,746,507$ 1,131,520$ 0 22,510,752$ 3.84% 6.45%3,275$ 7,715$ 8,747$ 9,589$ 0 5,549$ 1,846 714 772 385 49 - - 3,766 10.92% 48.11%
36 to 40 7,640,818$ 7,983,546$ 11,723,907$ 6,396,514$ 906,580$ - -$ 34,651,365$ 5.91% 12.37%4,139$ 11,181$ 15,186$ 16,614$ 18,502$ -$ -$ 9,201$ 1,520 537 528 511 223 27 - 3,346 9.70% 57.81%
41 to 45 8,336,052$ 6,625,278$ 9,006,793$ 12,229,388$ 5,639,396$ 1,271,417$ -$ 43,108,324$ 7.36% 19.72%5,484$ 12,338$ 17,058$ 23,932$ 25,289$ 47,090$ -$ 12,884$ 1,562 547 584 439 390 147 13 3,682 10.68% 68.49%
46 to 50 11,182,465$ 8,911,880$ 11,697,041$ 13,938,756$ 16,504,947$ 6,351,515$ 806,243$ 69,392,847$ 11.84% 31.57%7,159$ 16,292$ 20,029$ 31,751$ 42,320$ 43,208$ 62,019$ 18,847$ 1,334 520 612 460 325 286 99 3,636 10.54% 79.03%
51 to 55 13,733,934$ 9,941,194$ 16,568,364$ 15,908,448$ 13,210,378$ 18,552,940$ 8,519,687$ 96,434,945$ 16.46% 48.02%10,295$ 19,118$ 27,072$ 34,584$ 40,647$ 64,870$ 86,057$ 26,522$
1,186 506 541 473 351 243 290 3,590 10.41% 89.44%56 to 60 14,959,894$ 16,962,933$ 16,886,576$ 23,727,041$ 18,336,789$ 19,865,068$ 37,075,482$ 147,813,783$ 25.23% 73.25%
12,614$ 33,524$ 31,214$ 50,163$ 52,242$ 81,749$ 127,846$ 41,174$ 726 334 363 297 221 196 216 2,353 6.82% 96.26%
61 to 65 8,889,174$ 9,193,608$ 17,602,648$ 13,772,214$ 13,608,188$ 14,350,152$ 29,793,300$ 107,209,284$ 18.30% 91.55%12,244$ 27,526$ 48,492$ 46,371$ 61,576$ 73,215$ 137,932$ 45,563$
266 149 129 122 70 43 67 846 2.45% 98.71%66 to 70 2,888,070$ 4,753,919$ 3,524,873$ 7,821,165$ 3,502,200$ 1,834,536$ 8,937,211$ 33,261,974$ 5.68% 97.22%
10,857$ 31,905$ 27,325$ 64,108$ 50,031$ 42,664$ 133,391$ 39,317$ 108 95 96 65 35 19 28 446 1.29% 100.00%
71+ 1,189,410$ 2,210,893$ 2,882,111$ 3,735,304$ 1,731,782$ 1,265,553$ 3,262,364$ 16,277,417$ 2.78% 100.00%11,013$ 23,273$ 30,022$ 57,466$ 49,479$ 66,608$ 116,513$ 36,496$ 18,171 5,664 4,447 2,870 1,664 961 713 34,490 100.00% 100.00%
Total 85,786,672$ 79,618,425$ 96,570,040$ 98,660,350$ 73,440,260$ 63,491,181$ 88,394,287$ 585,961,215$ 100.00% 100.00%4,721$ 14,057$ 21,716$ 34,376$ 44,135$ 66,068$ 123,975$ 16,989$
Percentage of Total CountIndividual 52.69% 16.42% 12.89% 8.32% 4.82% 2.79% 2.07% 100.00%Cumulative 52.69% 69.11% 82.00% 90.32% 95.14% 97.93% 100.00% 100.00%
Percentage of Total Account BalanceIndividual 14.63% 13.59% 16.48% 16.84% 12.53% 10.84% 15.09% 100.00%Cumulative 14.63% 28.22% 44.70% 61.54% 74.07% 84.91% 100.00% 100.00%
Account balances shown do not include Tax-Deferred Loans Recivable.
Distribution of Active Participants by Fifth Age and Service Groupings with Number, Tax-Deferred Savings Plan Account Balance, and Average Account Balance as of May 31, 2019
24
Table 2A
Account Account
Balance2 Balance
20 to 24 399 753,789$ 1,889$ 56 71,630$ 1,279$ 25 to 29 1,813 13,275,209 7,322 394 1,457,483 3,69930 to 34 3,764 49,091,365 13,042 915 5,235,879 5,72235 to 39 4,284 82,141,822 19,174 1,058 9,951,809 9,40640 to 44 3,805 111,092,313 29,196 1,001 14,869,226 14,85445 to 49 4,050 170,685,698 42,145 1,004 23,086,234 22,99450 to 54 4,279 240,435,870 56,190 1,113 33,492,875 30,09255 to 59 4,244 313,908,045 73,965 1,179 51,144,415 43,37960 to 64 3,228 278,270,869 86,205 938 54,838,739 58,46365 to 69 1,706 135,189,776 79,244 582 46,228,541 79,43070 to 74 569 29,880,864 52,515 191 16,736,349 87,625
75+ 252 7,785,878 30,896 65 4,176,939 64,261
Total 32,393 1,432,511,498$ 44,223$ 8,496 261,290,119$ 30,754$
Range of Account Balance
0 - 5,000 1,804 2,814,541$ 1,560$ 3,131 6,152,759$ 1,965$
5,000 - 10,000 6,470 49,931,381 7,717 1,495 10,904,263 7,294
10,000 - 20,000 8,507 121,449,204 14,276 1,361 19,480,099 14,313
20,000 - 50,000 7,768 246,841,272 31,777 1,273 39,961,116 31,391
50,000 - 100,000 4,351 305,687,491 70,257 615 43,474,891 70,691
100,000 + 3,493 705,787,609 202,058 621 141,316,991 227,564
Total 32,393 1,432,511,498$ 44,223$ 8,496 261,290,119$ 30,754$
2Account balances shown do not include death benefits not yet paid.
Distribution of Inactive Participants by Fifth Age Groupings with Number, Account Balance, and Average Account Balance as of May 31, 2019
25
Age Retirement Plan Tax-Deferred Savings Plan
Number1 Average Number Average
1Does not include inactive participants who are deferred QDRO participants (see Table 2B). Does not include inactive participants without Retirement Plan account balances. Includes certain participants who are included in active status obligations elsewhere in this report.
Table 2B
Account Account
Balance2 Balance
<2020 to 24 1 38,161$ 38,161$ 25 to 29 1 38,161 38,16130 to 34 2 24,106 12,05335 to 39 5 69,592 13,918 1 5,733$ 5,733$ 40 to 44 12 357,781 29,815 1 11,361 11,36145 to 49 33 1,527,996 46,303 8 231,779 28,97250 to 54 32 2,002,214 62,569 12 329,631 27,46955 to 59 45 5,907,848 131,286 5 281,662 56,33260 to 64 34 3,827,430 112,571 6 200,638 33,44065 to 69 19 3,297,428 173,549 3 747,913 249,30470 to 74 4 788,591 197,148 1 100,179 100,179
75+
Total 188 17,879,308$ 95,103$ 37 1,908,896$ 51,592$
Range of Account Balance
0 - 5,000 6 9,720$ 1,620$
5,000 - 10,000 12 87,029$ 7,252$ 6 35,206 5,868
10,000 - 20,000 23 317,522 13,805 5 71,396 14,279
20,000 - 50,000 55 1,811,776 32,941 8 255,243 31,905
50,000 - 100,000 44 3,211,781 72,995 7 509,078 72,725
100,000 + 54 12,451,200 230,578 5 1,028,253 205,651
Total 188 17,879,308$ 95,103$ 37 1,908,896$ 51,592$
2Account balances shown do not include death benefits not yet paid.
Distribution of QDRO Participants by Fifth Age Groupings with Number, Account Balance, and Average Account Balance as of May 31, 2019
26
Age Retirement Plan Tax-Deferred Savings Plan
Number1 Average Number Average
1Includes only inactive participants who are deferred QDRO participants. Does not include deferred QDRO participants without Retirement Plan account balances.
Table 3A
Regular Retirement Disability Retirement
Number Allowance Average Death Benefit Number Allowance Average Death Benefit
<49 0 3 48,329$ 16,110$ 6,878$
50 to 54 3 73,163 24,388 25,781
55 to 59 431 7,184,850$ 16,670$ 1,427,245$ 14 365,459 26,104 60,223
60 to 64 1,450 32,824,524 22,638 5,409,690 11 172,688 15,699 61,570
65 to 69 3,051 71,716,059 23,506 11,897,169 13 237,083 18,237 51,255
70 to 74 3,283 68,127,623 20,752 12,713,667 20 177,541 8,877 83,425
75 to 79 2,267 39,512,617 17,429 7,527,874 14 240,712 17,194 80,857
80 to 84 1,494 22,278,960 14,912 4,529,503 10 167,548 16,755 18,267
85 to 89 840 10,538,860 12,546 2,135,770 3 19,128 6,376 10,617
90 to 94 365 5,131,832 14,060 1,344,711 3 35,537 11,846 4,177
95 to 99 83 847,023 10,205 224,473 1 - - -
100+ 11 52,703 4,791 10,194 0 - -
Total 13,275 258,215,051$ 19,451$ 47,220,296$ 95 1,537,188$ 16,181$ 403,050$
Option
Single Life 7,315 103,215,859$ 14,110$ N/A 65 990,321$ 15,236$ N/A
J & S 5,960 154,999,192$ 26,007$ N/A 30 546,867$ 18,229$ N/A
Distribution by Age of the Number, Annual Retirement Allowance, and Average Annual Retirement Allowance of Retired Participants as of May 31, 2019
Age
27
Table 3B
Distribution by Age of the Number, Annual Retirement Allowance,
and Average Annual Retirement Allowance of Beneficiaries of
Deceased Participants under survivor option or who have elected
to receive the Death Benefit in the form of an Annuity and those entitled
to a benefit under a QDRO as of May 31, 2019
20 to 24 3 18,377$ 6,126$
25 to 29 4 4,097 1,024
30 to 34 11 49,982 4,544
35 to 39 13 58,750 4,519
40 to 44 20 69,261 3,463
45 to 49 31 108,615 3,504
50 to 54 37 276,116 7,463
55 to 59 57 437,431 7,674
60 to 64 104 1,299,038 12,491
65 to 69 150 1,974,585 13,164
70 to 74 174 2,969,531 17,066
75 to 79 219 3,524,237 16,092
80 to 84 207 3,498,076 16,899
85 to 89 185 2,743,807 14,831
90 to 94 146 2,291,477 15,695
95 to 99 47 679,268 14,453
100+ 7 36,711 5,244
Total 1,415 20,039,359$ 14,162$
28
Age Number Allowance Average
Schedule E
(millions of dollars)
Period Benefits
Actives Inactives Retired Total
July 1, 2019 - June 30, 2020 68.8$ 134.2$ 279.2$ 482.2$ 194.9$
July 1, 2020 - June 30, 2021 79.4 62.2 274.8 416.4 167.5
July 1, 2021 - June 30, 2022 90.7 69.8 270.2 430.7 146.9
July 1, 2022 - June 30, 2023 103.1 77.5 265.2 445.8 129.5
July 1, 2023 - June 30, 2024 116.2 83.7 259.7 459.6 114.5
July 1, 2024 - June 30, 2025 131.1 89.8 253.9 474.8 101.5
July 1, 2025 - June 30, 2026 143.6 96.6 247.6 487.8 90.0
July 1, 2026 - June 30, 2027 156.1 102.8 241.1 500.0 80.0
July 1, 2027 - June 30, 2028 169.3 106.8 234.3 510.4 71.2
July 1, 2028 - June 30, 2029 181.4 111.7 227.0 520.1 63.4
July 1, 2029 - June 30, 2034 216.2 122.3 203.4 542.0 45.1
July 1, 2034 - June 30, 2039 265.4 131.8 160.0 557.1 24.5
July 1, 2039 - June 30, 2044 302.5 132.2 113.0 547.7 12.7
July 1, 2044 - June 30, 2049 328.2 124.7 68.8 521.7 6.0
July 1, 2049 - June 30, 2054 336.4 108.1 35.0 479.5 2.4
July 1, 2054 - June 30, 2059 318.7 83.8 14.6 417.1 0.7
July 1, 2059 - June 30, 2064 270.3 60.7 5.3 336.3 0.1
July 1, 2064 - June 30, 2069 212.6 41.8 2.0 256.5 0.0
July 1, 2069 - June 30, 2074 158.3 27.0 0.9 186.2 0.0
July 1, 2074 - June 30, 2079 109.5 15.9 0.5 125.9
July 1, 2079 - June 30, 2084 68.2 8.3 0.3 76.7
July 1, 2084 - June 30, 2089 36.5 3.5 0.2 40.2
July 1, 2089 - June 30, 2094 15.8 1.1 0.1 17.0 0.0
July 1, 2094 - June 30, 2099 5.0 0.3 0.0 5.3 0.0
Over the first 10 years, a one year period is used. Beginning in 2029, a 5 year period is used and
the amount shown is the annual average over the 5 year period.
Note: Future voluntary contributions and the benefits associated with those contributions have not
been reflected above.
29
Contributions
Projection of Benefits and Contributions Based on the Closed Populationas of May 31, 2019
Schedule FHistorical Summary of Assets, Required Reserves, Actuarial Status and Experience Dividend Payments
Valuation Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Required Reserves (RR) $3,299 $3,580 $3,982 $4,428 $4,616 $4,767 $4,939 $5,124 $5,355 $5,555 $5,828 $6,333 $6,489 $6,752 $7,417 $7,560
Actuarial Surplus / (Deficit) 404 440 450 710 165 (1,093) (823) (204) (481) (220) 256 (113) (605) (199) (365) (432)
Market Value (MV) 3,703 4,020 4,432 5,138 4,781 3,674 4,116 4,920 4,874 5,335 6,084 6,221 5,884 6,553 7,052 7,128
MV as a % of RR 112% 112% 111% 116% 104% 77% 83% 96% 91% 96% 104% 98% 91% 97% 95% 94%
Experience Dividend Payments
$47.6 $121.4 $207.5 $242.3 $225.5 ($13.1) $0.0 $0.0 $0.0 $0.0 $31.8 $65.6 $16.9 $18.6 $76.8 $19.8
0.0 0.0 9.8 20.8 16.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Total $47.6 $121.4 $217.3 $263.1 $241.6 ($13.1) $0.0 $0.0 $0.0 $0.0 $31.8 $65.6 $16.9 $18.6 $76.8 $19.8
(amounts in millions)
30
Actives (Additional Interest Credit)
Retirees (Additional Annuity Payments)
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(Mil
lion
s)
June 30
Required Reserves Market Value
31
Schedule G
Actuarial Standard of Practice No. 51 (“ASOP 51”) Disclosures
Funding future retirement benefits prior to when those benefits become due involves assumptions
regarding future economic and demographic experience. These assumptions are applied to calculate
actuarial liabilities and the corresponding funded status of the plan. However, to the extent future
experience deviates from the assumptions used, variations will occur in these calculated values. These
variations create risk to the plan. Understanding the risks to the funding of the plan is important.
Therefore, a new Actuarial Standard of Practice (ASOP) has been adopted. Actuarial Standard of
Practice No. 51 (“ASOP 51”) requires certain disclosures of potential risks to the plan and provides useful
information for intended users of actuarial reports that determine plan contributions or evaluate the
adequacy of specified contribution levels to support benefit provisions. While the Retirement Fund (“the
Fund”) is not subject to the funding provisions of ERISA, the information presented is used in making
contribution decisions.
Under ASOP 51, risk is defined as the potential of actual future measurements deviating from expected
future measurements resulting from actual future experience deviating from actuarially assumed
experience.
It is important to note that not all risk is negative, but all risk should be understood and accepted based on
knowledge, judgment and educated decisions. Future measurements may deviate in ways that produce
positive or negative financial impacts to the plan.
In the actuary’s professional judgment, the following risks may reasonably be anticipated to significantly
affect the plan’s future financial condition.
• Investment risk – the risk that assets will not return as expected
• Interest rate risk – the risk that the general level of interest rates will increase or decrease significantly
from current levels
• Asset liability mismatch - Potential that changes in asset values are not matched by changes in the
value of liabilities
• Longevity and other demographic risk – the risk that mortality or other demographic experience will
be different from expected
The following information is provided to comply with ASOP 51 and furnish beneficial information on
potential risks to the Fund. This list is not all-inclusive; it is an attempt to identify the most significant risks
and how those risks might affect the results shown in this report.
Note that ASOP 51 does not require the actuary to evaluate the ability or willingness of the plan sponsor
to make contributions to the plan. In addition, this valuation report in not intended to provide investment
advice or to provide guidance on the management or reduction of risk. Buck welcomes the opportunity to
assist in such matters as part of a separate project or projects utilizing the appropriate staff and resources
for those objectives.
32
Schedule G
Actuarial Standard of Practice No. 51 (“ASOP 51”) Disclosures (continued)
Assessment of Risks
• Investment return: Lower assets mean higher actuarial deficit and lower funded status. For example,
if asset returns are 1% less than assumed each year for the next 10 years, projected assets would be
approximately 12% lower than expected.
• Interest rate risk: Actuarial liabilities contained in this report are based on the assumption that interest
rates used to value obligations will remain at current levels throughout the forecast period. These
interest rates are used to discount future expected benefit payments to determine the Fund liability.
As interest rates increase, the discounted value of future benefit payments will decrease; similarly, as
interest rates decrease, the discounted value of future benefit payments will increase. The duration of
the Fund is approximately 16, which means that every 100-basis point change in interest rates will
result in roughly an 16% change in the Fund liability.
• Asset liability mismatch: Unless assets are explicitly structured to mimic the characteristics of plan
liabilities, there is a risk that economic scenarios that affect interest rates will have a larger impact on
liability than on assets. This is because plan liability is the discounted value of benefit payments that
extend way out into future years, i.e. have a long duration. Plan investments, on the other hand,
typically have a shorter duration with respect to interest rate changes, often holding fixed income
securities with lower durations than plan liabilities, and typically maintaining some moneys in equity
investments that are not as directly sensitive to interest rate changes.
• Longevity and other demographic risk. The Fund is subject to longevity risk, the risk that participants
will live longer (or shorter) than expected. An experience study was performed in 2015 and the
mortality assumptions were at that point were generally aligned with actual experience.
In addition, the Fund is subject to risks associated with assumptions with respect to active and deferred
vested participants (for example, salary increases, termination prior to retirement, retirement, and optional
form election). The current assumptions are based on the experience of the plan. Changes in future
liabilities will result to the extent actual experience differs from these assumptions. In particular, higher
than expected salary increases (including base pay plus short-term incentives) would increase actuarial
liabilities.
33
Schedule G
Actuarial Standard of Practice No. 51 (“ASOP 51”) Disclosures (continued)
Historical Results
The following table shows selected historical values of key valuation measures. These items illustrate
how actual volatility has impacted the Fund in recent years and gives additional context to the risks
described above. Further information can be found in the actuarial valuation reports for each year.
6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Market Value of Assets 6,220.7M 5,883.9M 6,553.3M 7,051.9M 7,127.7M
Total Required Reserves 6,333.3M 6,488.7M 6,752.4M 7,417.4M 7,559.7M
Funding Ratio 98.22% 90.68% 97.05% 95.07% 94.29%
Discount rate (pre-retirement) 5.0% 5.0% 5.0% 5.0% 5.0%
Discount rate (post-retirement) 6.5% 6.5% 6.5% 6.0% 6.0%
The ratio of retiree accumulated liability to total accumulated liability
37.59% 38.69% 39.17% 38.84% 39.97%
Commentary on Plan Maturity Measures
The ratio of retiree accumulated liability (Accumulated Benefit Obligation) to total accumulated liability (Accumulated Benefit Obligation)
A mature plan will often have a ratio above 60 - 65 percent. A higher percentage will generally indicate an increased need for asset / liability matching due to inability to absorb volatility in future returns. The Fund would not be considered “mature,” although this measure should be monitored as the percentage will likely continue its upward trend.
