| California 2010 Funding Assumption Survey | |||||||||||||||||||||||||
| Roeder Financial | |||||||||||||||||||||||||
| Updated May 4, 2010 | |||||||||||||||||||||||||
| Funding | Assumed | Base | Assumed | Amortization | Valuation | Asset | |||||||||||||||||||
| Rank | PLAN SPONSOR | Method | Investment | Wage | "Excess" | Period | Asset | Smoothing | |||||||||||||||||
| 2010 | 2009 | Return | Inflation | Investment | (years) | Corridor | Period | ||||||||||||||||||
| Return | 2010 | 2009 | |||||||||||||||||||||||
| (a) | (b) | (a) - (b) | (if change) | ||||||||||||||||||||||
| 1 | 1 | Oakland Police & Fire - Closed | N/A | 7.50% | 4.50% | 3.00% | N/A - 1997 POB | Y: 90-110 | 5 | ||||||||||||||||
| 2 | 2 | CalPERS - Legislative 3 | Aggregate | 7% | 3.25% | 3.75% | N/A | Y: 60-140 | Y: 80-120 | 15 | |||||||||||||||
| 3 | 3 | City & County of San Francisco | EAN | 7.75% | 4.50% | 3.25% | 20-layered; G/L 15 layered | N | 5 | ||||||||||||||||
| 4 | 4 | Contra Costa County (2008) | EAN | 7.75% | 4.25% | 3.50% | 14 - declining; G/L 18 layered | N | 5 | ||||||||||||||||
| 5 | 5 | CalPERS - Judges 3 | Agg. EAN | 7% | 3.25% | 3.75% | N/A | Y: 60-140 | Y: 80-120 | 15 | |||||||||||||||
| 6 | 6 | University of California | EAN | 7.50% | 3.50% | 4.00% | 15 - declining G/L 15 layer Level $$ | N | 5 | ||||||||||||||||
| 7 | 13 | City of San Jose (Safety) | EAN | 8.00% | 4.25% | 3.75% | 8 - declining ; G/L 16 layered | Y: 70-130 | Y: 80-120 | 5 | |||||||||||||||
| 8 | 7 | LA Department of Water & Power5 | EAN | 8.00% | 4.25% | 3.75% | 15 - layered Level $$ | N | 5 | ||||||||||||||||
| 9 | 10 | San Mateo County | EAN | 7.75% | 4.00% | 3.75% | 14 - declining; G/L 15 layered | Y: 80-120 | 5 | ||||||||||||||||
| 10 | 12 | Ventura County | EAN | 8.00% | 4.25% | 3.75% | 15 - layered | N | 5 | ||||||||||||||||
| 11 | 15 | City of San Diego | EAN | 7.75% | 4.00% | 3.75% | 18-declining;G/L mostly layered 15 | Y: 80-120 | 4 | ||||||||||||||||
| 12 | 16 | San Bernardino County | EAN | 8.00% | 4.25% | 3.75% | 13-declining; G/L layered 20 | N | 5 | ||||||||||||||||
| 13 | 11 | Sonoma County | EAN | 8.00% | 4.25% | 3.75% | 18-declining; G/L 20 layered | N | 5 | ||||||||||||||||
| 14 | 9 | Merced County | EAN | 8.16% | 4.50% | 3.66% | 18- declining | Y: 70-130 | Y: 80-120 | 5 | |||||||||||||||
| 15 | 17 | Imperial County | EAN | 7.90% | 4% | 3.90% | 22 - declining | Y: 70-130 | Y: 80-120 | 5 | |||||||||||||||
| 16 | 19 | Los Angeles Fire & Police | EAN | 8% | 4.25% | 3.75% | Non- G/L most 28 declining; | Y: 60-140 | Y:80-120 | 7 (5 in 2008) | |||||||||||||||
| G/L - most layered 15; Total equivalent to 17.5 years | |||||||||||||||||||||||||
| 17 | 18 | Alameda County (2008) | EAN | 8% | 4% | 4.00% | 24 - declining | Y: 60-140 | Y: 80-120 | 5 | |||||||||||||||
| 18 | 20 | City of Oakland - Closed (2007) | Aggregate | 8.00% | 3.25% | 4.75% | N/A - Overfunded | N | 1 | ||||||||||||||||
| 19 | 21 | Tulare County | EAN | 7.90% | 4.00% | 3.90% | 15 - rolling | N | Y:80-120 | 10(5 in 2008) | |||||||||||||||
| 20 | 22 | City of Los Angeles | PUC | 8% | 4.25% | 3.75% | 26-declining G/L 15-layered | Y: 50-150 | Y: 80-120 | 5 | |||||||||||||||
| 21 | 14 | Marin County 4 | EAN | 7.75% | 3.50% | 4.25% | most 16-declining; 16 or 10 rolling | Y: 80-120 | 5 | ||||||||||||||||
| 22 | 24 | Fresno County | EAN | 8% | 4% | 4.00% | 24-declining; G/L 15 layered | Y: 70-130 | Y: 80-120 | 5 | |||||||||||||||
| 23 | 25 | Kern County | EAN | 7.75% | 4.00% | 3.75% | 26.5 - declining | Y: 50-150 | 5 | ||||||||||||||||
| 24 | 29 | Sacramento County | EAN | 7.875% | 3.75% | 4.125% | 24 - declining | Y: 70-130 | Y: 80-120 | 7 (5 in 2008) | |||||||||||||||
| 25 | 23 | San Joaquin County | EAN | 8.16% | 3.75% | 4.41% | 20-rolling for next 3 years | Y: 80-120 | 5 | ||||||||||||||||
| 26 | 27 | Los Angeles County | EAN | 7.75% | 4.00% | 3.75% | 30 - declining; G/L 30 layered | N | 5 (3 in 2008) | ||||||||||||||||
| 27 | 8 | Mendocino County | EAN | 8.00% | 4.00% | 4.00% | 30-declining | Y: 80-120 | 5 | ||||||||||||||||
| 28 | 26 | CalSTRS (2008) | EAN | 8% | 4.25% | 3.75% | <1% fixed rate: = to 30+ year amort | N | 3 | ||||||||||||||||
| 29 | 30 | San Diego County | EAN | 8.25% | 4.25% | 4.00% | 20 - layered | N | 5 | ||||||||||||||||
| 30 | 31 | Santa Barbara County | EAN | 8.16% | 4.00% | 4.16% | 17-rolling | Y: 80-120 | 5 | ||||||||||||||||
| 31 | 32 | City of Fresno (Safety) | EAN | 8.25% | 4% | 4.25% | 15 rolling (100+% FR) | N | 5 | ||||||||||||||||
| 32 | 33 | City of Fresno (General) | PUC | 8.25% | 4% | 4.25% | 15 rolling (100+% FR) | N | 5 | ||||||||||||||||
| 33 | 35 | Orange County (2008) | EAN | 7.75% | 3.50% | 4.25% | 26-declining; G/L 15 layered | N | 5 | ||||||||||||||||
| 34 | 40 | City of San Jose (General) 1 | EAN | 7.75% | 3.83% | 3.92% | 30 - declining; G/L layered 20 | N | 5 | ||||||||||||||||
| 35 | 28 | San Luis Obispo County | EAN | 7.75% | 3.75% | 4.00% | 30 - declining | N | Normally 5 | ||||||||||||||||
| (10 for 2008) | |||||||||||||||||||||||||
| 36 | 34 | Pasadena Fire & Police - Closed | NOTE 2 | 8.00% | 3.80% | 4.20% | NOTE 2 | N | 5 | ||||||||||||||||
| 37 | 36 | Alameda-Contra Costa Transit 4 | PUC | 7.70% | 3.20% | 4.50% | most 18-declining to 12 then open | Y: 80-120 | 5 | ||||||||||||||||
| 38 | 37 | CalPERS 3 | EAN | 7.75% | 3.25% | 4.50% | most-layered 20; some 30-declining | Y:60-140 | Y: 80-120 | 15 | |||||||||||||||
| 39 | 38 | Stanislaus County | EAN | 8.16% | 4.00% | 4.16% | 25 - rolling | Y: 80-120 | 5 | ||||||||||||||||
| 40 | 39 | East Bay Municipal Utility | EAN | 8.25% | 4.00% | 4.25% | 30 - layered | Y: 70-130 | Y: 80-120 | 5 | |||||||||||||||
| NOTES: | Bold indicates change from previous survey. | ||||||||||||||||||||||||
| 1: Contribution impact of new economic assumptions phased in over 5 years | |||||||||||||||||||||||||
| 2: Legal agreement determines contribution level -- pegged to specified funded ratios | |||||||||||||||||||||||||
| 3: Corridor temporarily widened with possible "special" amortization bases | |||||||||||||||||||||||||
| 4: 50% of "extraordinary" 2008/09 losses amortized over 30 years | |||||||||||||||||||||||||
| 5: May 12 meeting will consider reduction in assumption to either 7.5% or 7.75% | |||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||