California 2011 Funding Assumption Survey


























Roeder Financial












Updated September 2011




























Funding Assumed Base Assumed Amortization Valuation Asset




Rank
PLAN SPONSOR Method Investment Wage "Excess" Period Asset Smoothing



2011 2010 2009



Return Inflation Investment (years) Corridor Period












Return












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























1 2 2 CalPERS - Legislative

Aggregate 6% 3.25% 2.75% N/A N 15



2 18 20 City of Oakland - Closed

EAN 6.50% N/A N/A 6-Level Dollar N 1



3 7 13 City of San Jose (Safety)

EAN 7.75% 4.25% 3.50% 7 - declining ; G/L 16 layered Y: 80-120 5



4 5 5 CalPERS - Judges

Agg. EAN 7% 3.25% 3.75% N/A N 15



5 4 4 Contra Costa County

EAN 7.75% 4.25% 3.50% 12 - declining; G/L 18 layered N 5





































6 8 7 LA Department of Water & Power

EAN 7.75% 4.25% 3.50% 15 - layered Level $$ N 5



7 1 1 Oakland Police & Fire - Closed

N/A 7.00% N/A N/A 26-level dollar Y: 90-110 5



8 3 3 City & County of San Francisco

EAN 7.75% 4.00% 3.75% 20-layered; G/L 15 layered N 5



9 9 10 San Mateo County

EAN 7.75% 4.00% 3.75% 13 - declining; G/L 15 layered Y: 80-120 5




















10 11 15 City of San Diego 8

EAN 7.75% 4.00% 3.75% 17-declining;G/L mostly layered 15 Y: 80-120 4



11 37 36 Alameda-Contra Costa Transit 4

EAN 7.50% 3.00% 4.50% most 16-declining to 12 then open Y: 80-120 5



12 12 16 San Bernardino County

EAN 8.00% 4.25% 3.75% 12-declining; G/L layered 20 N 5



13 10 12 Ventura County

EAN 8.00% 4.25% 3.75% 15 - layered N 5




















14 13 11 Sonoma County

EAN 7.75% 4.25% 3.50% 17-declining; G/L 20 layered N 5



15 6 6 University of California

EAN 7.50% 3.50% 4.00% 30, G/L 30 layered Level $$ N 5



16 14 9 Merced County

EAN 7.75% 3.75% 4.00% 18- declining Y: 70-130 5



17 16 19 Los Angeles Fire & Police

EAN 7.75% 4.25% 3.50% Non- G/L most 28 declining; Y: 60-140 7













G/L-most 15 layered. Overall equivalent to 17.8 years





18 30 31 Santa Barbara County 5

EAN 7.75% 3.75% 4.00% 17-rolling Y: 80-120 5



19 19 21 Tulare County

EAN 7.90% 4.00% 3.90% 15 - rolling N 10



20 22 24 Fresno County

EAN 7.75% 4% 3.75% 23-declining; G/L 15 layered Y: 70-130 5



21 21 14 Marin County 4

EAN 7.75% 3.50% 4.25% most 17-rolling thru 2013 Y: 80-120 5



22 15 17 Imperial County

EAN 7.90% 4% 3.90% 21 - declining Y: 70-130 5



23 17 20 Alameda County

EAN 7.90% 4% 3.90% 22 - declining Y: 60-140 5




















24 23 25 Kern County

EAN 7.75% 4.00% 3.75% 25.5 - declining Y: 50-150 5



25 24 29 Sacramento County

EAN 7.75% 3.75% 4.00% Most 25 - declining Y: 70-130 7



26 20 22 City of Los Angeles

PUC 8% 4.25% 3.75% 25-declining G/L 15-layered Y: 60-140 7



27 26 27 Los Angeles County
EAN 7.75% 4.00% 3.75% 30 - declining; G/L 30 layered N 5



28 25 23 San Joaquin County

EAN 7.75% 3.25% 4.50% 20-rolling next 3 years; Y: 80-120 5













50% of 2008 inverstment loss amortized over 28 years






















29 28 26 CalSTRS

EAN 7.75% 4.00% 3.75% 1.5%. < 30-year amortization N 3



30 29 30 San Diego County

EAN 8.00% 4.25% 3.75% 20 - layered N 5



31 32 33 City of Fresno (General) 6

PUC 8.00% 4% 4.00% 15 rolling (100+% FR) N 5

32 31 32 City of Fresno (Safety) 7

EAN 8.00% 4% 4.00% 15 rolling (100+% FR) N 5




















33 34 40 City of San Jose (General) 1

EAN 7.75% 3.83% 3.92% 29 - declining; G/L layered 20 N 5



34 33 35 Orange County

EAN 7.75% 3.50% 4.25% 24-declining; G/L 15 layered N 5



35 35 28 San Luis Obispo County

EAN 7.75% 3.75% 4.00% 29 - declining; separate N 5



36 27 8 Mendocino County

EAN 8.00% 4.00% 4.00% 29-declining Y: 75-125 5




















37 38 37 CalPERS 3

EAN 7.75% 3.25% 4.50% most-layered 20; some 30-declining Y:70-130 15



38 36 34 Pasadena Fire & Police - Closed

NOTE 2 8.00% 3.80% 4.20% NOTE 2 N 5



39 39 38 Stanislaus County

EAN 8.00% 3.75% 4.25% 25 - rolling Y: 80-120 5



40 40 39 East Bay Municipal Utility

EAN 8.00% 4.00% 4.00% 30 - layered Y: 70-130 5





Bold indicates change from previous survey.

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

NOTES:
1: Reflects 6/30/11 economic assumptions. 6/30/10 rate was 7.90%
2: Legal agreement determines contribution level -- pegged to specified funded ratios
3: Reflects change in 2010 valuations; two-year lag in valuations
4: 50% of "extraordinary" 2008/09 losses amortized over 30 years.
5: Intent to reduce assumed investment assumption to 7.5% in 2012 valuation.
6: Amortization will revert to average future working lifetime, roughly 10 years, in event FR becomes < 100%
7: Amortization will become 30 years in event FR becomes < 100%
8: 6/30/11 valuation assumption will be reduced from 7.75% to 7.5%


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