Assets and Liabilities


The chart below compares the Valuation Value of Assets to the Actuarial Accrued Liabilities (AAL). To the extent the AAL is covered by assets, the fund can generate earnings to support the benefits that have been granted. When liabilities exceed assets, there exists an Unfunded Actuarial Accrued Liability (UAAL). The UAAL represents the value of benefits that have been granted but not funded.

When there is a UAAL, the employers’ contributions are increased to substitute for earnings that the fund is unable to generate. In addition, the employers pay supplemental contributions to reduce the UAAL.