California 2014 Funding Assumption Survey

Roeder Financial

Updated March 2014

 
Funding Assumed Base  Assumed Amortization Valuation Asset
Rank PLAN SPONSOR Method Investment Wage  "Excess"     Period   Asset Smoothing
2014 2013 2011 2010 2009    Return Inflation Investment    (years)  Corridor Period
   Return  
   (a) (b) (a)  -  (b)
1 1 1 2 2 CalPERS - Legislative     EAN 5.75% 3.00% 2.75% 30-declining but FR  >  100% Y: 80-120 15
2 4 5 4 4 Contra Costa County   EAN 7.25% 4.00% 3.25% 9 - declining; G/L 18 layered       N 5
3 2 9 9 10 San Mateo County   EAN 7.50% 3.75% 3.75% 10 - declining; G/L 15 layered Y: 80-120 5
4 7 10 11 15 City of San Diego 5   EAN 7.25% 3.30% 3.95% 14-declining;G/L layered 15. most level $$ Y: 80-120 4
5 3 4 5 5 CalPERS - Judges 1    EAN 7.00% 3.00% 4.00% 20-declining; G/L 30 layered Y: 80-120 15
                             
6 8 11 37 36 Alameda-Contra Costa Transit 4 EAN 7.25% 3.00% 4.25% most 15-declining to 12 then open Y: 80-120 5
7 11 13 10 12 Ventura County   EAN 7.75% 4.00% 3.75% 6-declining; G/L 15 - layered       N 5
8 5 6 8 7 LA Department of Water & Power EAN 7.75% 4.25% 3.50% 15 - layered    Level $$       N 5
9 6 12 12 16 San Bernardino County   EAN 7.75% 4.00% 3.75% 9-declining; G/L layered 20       N 5
10 22 20 22 24 Fresno County   EAN 7.25% 3.75% 3.50% 20-declining; G/L 15 layered Y: 70-130 5
                             
11 10 8 3 3 City & County of San Francisco EAN 7.50% 3.75% 3.75% 20-layered; G/L 15 layered       N 5
12 13 14 13 11 Sonoma County   EAN 7.50% 4.00% 3.50% 14-declining; G/L 20 layered       N 5
13 33 32 31 32 City of Fresno (Safety)    EAN 7.50% 3.75% 3.75% 15 rolling (100+% FR)       N 5
14 34 31 32 33 City of Fresno (General) 6 EAN 7.50% 3.75% 3.75% G/L 15 layered       N 5
15 9 21 21 14 Marin County 4   EAN 7.50% 3.50% 4.00% most 17-rolling thru 2013, then declining Y: 80-120 5
                             
16 18 18 30 31 Santa Barbara County    EAN 7.50% 3.50% 4.00% most 17-rolling Y: 80-120 5
17 12 34 33 35 Orange County   EAN 7.25% 3.75% 3.50% 21-declining; G/L 15 layered       N 5  
18 23 22 15 17 Imperial County   EAN 7.50% 3.75% 3.75% 18 - declining; G/L 15 layered Y: 70-130 5
19 28 28 25 23 San Joaquin County 7   EAN 7.50% 3.25% 4.25% 19-declining Y: 80-120 5
20 14 15 6 6 University of California   EAN 7.50% 4.00% 3.50% 27-declining,  G/L 30 layered   Level $$       N 5
                             
21 15 16 14 9 Merced County   EAN 7.75% 3.75% 4.00% 17- declining Y: 70-130 5
22 31 30 29 30 San Diego County   EAN 7.75% 4.00% 3.75% 11-declining; G/L 20  layered       N 5
23 17 3 7 13 City of San Jose (Safety) EAN 7.25% 3.50% 3.75% 25(Police) 27(Fire) - declining ;  G/L 16 layered Y: 80-120 5
24 19 19 19 21 Tulare County 9   EAN 7.90% 4.00% 3.90% 15 - rolling       N 10
25 16 17 16 19 Los Angeles Fire & Police EAN 7.75% 4.25% 3.50% Non- G/L most 24 declining; Y: 60-140 7
                        G/L-most 20 layered.       
26 20 24 23 25 Kern County   EAN 7.75% 4.00% 3.75% 22.5 - declining; G/L 18 layered Y: 50-150 5
27 21 35 35 28 San Luis Obispo County 8 EAN 7.25% 3.25% 4.00% 27 - declining       N 5
28 24 23 17 20 Alameda County   EAN 7.80% 4% 3.80% 20 - declining ; G/L 20 layered Y: 60-140 5
29 25 25 24 29 Sacramento County   EAN 7.50% 3.50% 4.00% Most 22 - declining; G/L 20 layered Y: 70-130 7
                             
30 26 26 20 22 City of Los Angeles   EAN 7.75% 4.25% 3.50% most 29-declining ; G/L 15-layered Y: 60-140 7
31 29 33 34 40 City of San Jose (General)   EAN 7.50% 3.25% 4.25% 26 - declining; G/L layered 20       N 5
32 30 36 27 8 Mendocino County   EAN 7.75% 4.00% 3.75% 26-declining; G/L 18 layered Y: 75-125 5
33 32 37 38 37 CalPERS 3     EAN 7.50% 3.00% 4.50% most-layered 20; G/L 30-layered     N N/A
                             
34 27 27 26 27 Los Angeles County                                                  EAN 7.50% 3.50% 4.00% 26 - declining;  G/L 30 layered       N 5
35 36 40 40 39 East Bay Municipal Utility EAN 7.75% 3.75% 4.00% 30 - layered; Future G/L-20 layered Y: 70-130 5
36 37 39 39 38 Stanislaus County 5   EAN 7.75% 3.50% 4.25% 24 - declining Y: 80-120 5
37 35 29 28 26 CalSTRS     EAN 7.50% 3.75% 3.75% 1.2%.15%< than 30-year amortization       N 3
 
NOTES: Bold indicates change from previous survey.  
1:  This does not reflect the closed Judges I system:  features include pay-as-you-go funding and a 4.25% assumed investment return
2:  Legal agreement determines contribution level -- pegged to specified funded ratios
3:  Reflects two-year lag in valuations   
4:  50% of  "extraordinary" 2008/09 losses amortized over 30 years
5 No pay Increases assumed for near term.  System is closed for non-Police
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
9 Assumed Investment return will be reduced by 0.05% annually until 7.0% reached
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
Effective with the 2013 survey, the number of entities was reduced from 40 to 37, eliminating three small closed systems.