California 2019 Funding Assumption Survey





















Updated May 2019
































Assumed Base Assumed Amortization Valuation Asset
RANK PLAN SPONSOR Investment Wage "Excess" Period Asset Smoothing
2019 2018 2017 2016 2015 2014 2013 2011 2010 2009


Return Inflation Investment (years) Corridor Period















Return















(a) (b) (a) - (b)























1 1 1 1 1 1 1 1 2 2 CalPERS - Legislative (closed)

5.00% 2.75% 2.25% 30- but FR > 100%; G/L 30 layered N/A (Market) N/A
2 2 6 6 6 5 3 4 5 5 CalPERS - Judges System II 1, 3

6.50% 2.75% 3.75% 2-declining ; G/L 30 layered and ramped N/A (market) N/A
3 4 5 5 5 4 7 10 11 15 City of San Diego 5

6.50% 3.05% 3.45% 9-declining and part layered ;G/L layered 15. most level $$ Y: 80-120 4
4 3 4 3 3 3 2 9 9 10 San Mateo County

6.75% 3.00% 3.75% 5 - declining; G/L 15 layered Y: 80-120 5 with offsets
5 5 2 4 4 23 17 3 7 13 City of San Jose (Safety)

6.75% 3.25% 3.50% most G/L 15 layered Y: 80-120 5
















6 6 3 2 2 2 4 5 4 4 Contra Costa County

7.00% 3.25% 3.75% 5 - declining; G/L 18 layered N 5
7 7 16 12 12 31 29 33 34 40 City of San Jose (General)

6.75% 3.25% 3.50% most 21 - declining; G/L layered 20 N 5
8 8 7 8 8 8 5 6 8 7 LA Department of Water & Power

7.25% 3.50% 3.75% 1-declining; G/L 15 - layered Level $$ N 5
9 19 18 17 22 22 31 30 29 30 San Diego County

7.00% 3.25% 3.75% 6-declining; G/L 20 layered N 5
10 11 10 14 14 12 13 14 13 11 Sonoma County

7.00% 3.25% 3.75% 10-declining; G/L 20 layered N 5




















11 9 8 11 11 10 22 20 22 24 Fresno County

7.00% 3.25% 3.75% 15-declining; G/L 15 layered Y: 70-130 5
12 10 9 20 20 16 18 18 30 31 Santa Barbara County

7.00% 3.00% 4.00% most 12-declining; G/L 19 layered and ramped N/A(market) N/A
13 12 31 30 28 29 25 25 24 29 Sacramento County

7.00% 3.25% 3.75% Most 17 - declining; G/L 20 layered Y: 70-130 7
14 13 11 15 15 13 33 32 31 32 City of Fresno (Safety) 10

7.25% 3.50% 3.75% G/L 15-layered (100+% FR) N 5
15 14 12 16 16 14 34 31 32 33 City of Fresno (General) 6 10

7.25% 3.50% 3.75% G/L 15 layered (100+% FR) N 5




















16 15 29 29 30 32 30 36 27 8 Mendocino County

7.00% 3.50% 3.50% 21-declining; G/L 18 layered Y: 75-125 5
17 16 19 18 17 17 12 34 33 35 Orange County

7.00% 3.25% 3.75% 15-declining; G/L 20 layered N 5
18 17 21 24 19 15 9 21 21 14 Marin County 4

7.00% 3.00% 4.00% 12-declining; G/L 24 layered and ramped N/A (Market) N/A
19 18 15 10 10 9 6 12 12 16 San Bernardino County

7.25% 3.50% 3.75% 4-declining; G/L layered 20 N 5
20 20 24 23 21 25 16 17 16 19 Los Angeles Fire & Police

7.25% 3.50% 3.75% most G/L 20 layered; 7.7 years = avg. remaining period Y: 60-140 7




















21 21 20 19 18 18 23 22 15 17 Imperial County

7.25% 3.50% 3.75% 13 - declining; G/L 15 layered Y: 70-130 5
22 25 14 9 9 7 11 13 10 12 Ventura County

7.25% 3.25% 4.00% 1-declining; G/L 15 - layered N 5
23 22 28 28 27 28 24 23 17 20 Alameda County

7.25% 3.50% 3.75% 14 - declining ; G/L 20 layered Y: 60-140 5
24 23 27 25 24 26 20 24 23 25 Kern County

7.25% 3.50% 3.75% 17.5 - declining; G/L 18 layered Y: 50-150 5
25 26 22 22 36 36 37 39 39 38 Stanislaus County

7.00% 3.00% 4.00% 18 - declining Y: 80-120 5




















26 24 13 7 7 6 8 11 37 36 Alameda-Contra Costa Transit 4

7.125% 3.00% 4.125% 10-declining; G/L 20 layered Y: 80-120 5
27 27 25 27 25 27 21 35 35 28 San Luis Obispo County 8

7.00% 3.00% 4.00% 22- declining N 5
28 28 17 13 13 11 10 8 3 3 City & County of San Francisco

7.40% 3.50% 3.90% most 15-declining; G/L 20 layered N 5
29 29 23 31 31 21 15 16 14 9 Merced County

7.25% 2.75% 4.50% 11- declining;G/L 24 layered and ramped N/A(market) N/A
30 30 30 21 26 20 14 15 6 6 University of California 9

7.25% 3.50% 3.75% 22-declining, G/L 20 layered Level $$ N 5




















31 31 33 32 32 30 26 26 20 22 City of Los Angeles

7.25% 3.50% 3.75% most 24-declining ; G/L 15-layered Y: 60-140 most 7
32 32 37 37 29 24 19 19 19 21 Tulare County

7.25% 3.00% 4.25% 16-declining; G/L 19 layered Y: 70-130 10
33 34 32 34 34 35 36 40 40 39 East Bay Municipal Utility

7.00% 3.25% 3.75% Pre-2012 layered 30; Otherwise G/L-20 layered Y: 70-130 5
34 33 36 36 37 37 35 29 28 26 CalSTRS

7.00% 3.50% 3.50% 28 years with laddered increases N 3
















35 37 26 26 23 19 28 28 25 23 San Joaquin County 7

7.25% 3.15% 4.10% 15-declining; G/L 15 layered Y: 80-120 5
36 35 34 33 33 33 32 37 38 37 CalPERS 3

7.25% 2.875% 4.375% 18-declining ; G/L 30 layered with ramping N/A(market) N/A
37 36 35 35 35 34 27 27 26 27 Los Angeles County
7.25% 3.25% 4.00% 21- declining; G/L 30 layered N 5















































NOTES:




Bold indicates change from previous survey.






















1: This does not reflect the Judges I system closed in 1994: features include pay-as-you-go funding and a 3% assumed investment return










2: Legal agreement determines contribution level -- pegged to specified funded ratios










3: 2018 assumed investment return will be lowered to 7%










4: 50% of "extraordinary" 2008/09 losses amortized over 30 years; 2019 assumed investment return will be lowered to 7%










5: System is now closed for non-Police but subject to ongoing litigation and court challenges










6: Amortization will revert to average future working lifetime, roughly 10 years, in event FR becomes < 100%










7: Extraordinary 2008 actuarial loss amortized over 30 years










8: 2008 actuarial losses amortized over 10 years but with some accelerated funding; Base wage inflation will decrease to 2.75% in 2019 valuation










9: Post-7/1/16 hires have option to elect to be in defined contribution ("DC") plan; to date, 35% have elected DC











6% contribution will be made toward UAL for those in DC plan.











Additional state contributions may be required as 14% employer rate and 8% employee rate are below actuarial funding policy rate.










10: If FR (funded ratio) >110%, 30-year amortization of surplus (just lengthened from 25 years)
















Survey and related text will be posted on roederfinancial.com We can be contacted at (619) 300-8500















FR = Funded ratio
G/L = actuarial gains/actuarial losses
"Layered" means a new amotization base is created each year.










POB = Pension Obligation Bond


DC = Defined Contribution











Effective with the 2013 survey, the number of entities was reduced from 40 to 37, eliminating three small closed systems.





The amortization periods for assumption changes a re often longer than for G/L and are not shown here. Often, there is a separate amortization policy applicable to benefit changes.