December 31, 2018 Actuarial Valuation
Adopted by the Board on October 23, 2019
The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities increased from 88.5% to 89.3%. The Association’s unfunded actuarial accrued liability (UAAL) has decreased from $1.1 billion to $1.0 billion. This decrease is mainly due to contributions paying down a portion of the UAAL and the changes in actuarial assumptions, offset to some degree by an investment return on actuarial value (i.e. after smoothing) less than the 7.00% assumed rate, and higher than expected cost-of-living adjustments (COLA) increases for retirees and beneficiaries.
The average employer rate calculated in this valuation (excluding any employer subvention of member rates or member subvention of employer rates) has decreased from 36.07% of payroll to 35.73% of payroll. This decrease is due to the changes in actuarial assumptions and the effect of changes in member demographics on Normal Cost, partially offset by an investment return on actuarial value (i.e. after smoothing) less than the 7.00% assumed rate and higher than expected COLA increases for retirees and beneficiaries.