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HomeMy WebLinkAbout27 - CalPERS Pension Plan Update & Payment Alternative - PowerPoint (Staff)PEN S! ON 4 � Finance Department $45 w $35 $30 $25 $20 $15 $10 $5 Total Pension Cast Projection (Millions) 2015 2016 2017 2018 2019 2020 2021 ■ UAL Payment ■ Normal Cost Based on zero vacancies and assumed payroll gro%vth of 3% ** Total pension cost is gross of employee contributions. 2 nalysis $258 Million as of June 301 2013 $273 Million Projected June 301 2015 ■ Active Employees Retired, Terminated or Transferred Plan Participants $50 - $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 N O rn 0) Funding Schedule Options Millionsl N N N N N N N N N N N N N N O O O O O O O O O O O O O O N N N N N N W W W W W A A A 00 O N A Qt 00 O N A ai 00 O N A — Current —19 Yr —15 Yr —10 Yr O Eliminates Negative Amortization Improves Funded Status 5 Current 19 Yr 15 Yr 10 Yr Current 19 Yr 15 Yr 10 Yr 1 2016 273 273 273 273 Q 63.8% Q 63.8% 4 63.8% 0 63.8% 2 2017 ..................................................................................................................................................................................................................................................................... 278 0 271 0 2676 258 Q • 65.4% 0 66.2% 4 66.7% ............................... 0 67.9% 3 2018 ..................................................................................................................................................................................................................................................................... 282 Q 269 0 261 0 241 0 0 67.0% 0 68.5% 0 69.5% ............................... 0 71.8% 4 2019 ..................................................................................................................................................................................................................................................................... 285 I� 266 0 253 0 222 6 0 681% "D 70A% 0 72.2% ............................... Q 75.6% 5 2020 ..........................................................................................................................................................................................._........................................................................ ...... 285 284 ................................................................................................................ 0 261. 256 Q 0 243 233 0 200 1750 Q ............................... Q 70.5 %' 72.4% ......................................... .._..' 73.0% 75.2 %' 0 ............................... 74.9% 77.5% ............................... 0 79.4% 6 2021 7 2022 ................................................................................................................................................................................................ 283 6 250 0 2200 147 p (- - 74.3% _.............................. (D 77.3% : + G . O 86.6% 8 2023 ............................................................................................................................................................................................... 280 .......................................... 277 Q . . Q 242 . . . . . . . . . . . . . . . . . . . . . 233 Q . . . . . . . . . . . . . . . . . 205 . . . . . . . . . . . . . . . . . . . 189 Q . . . . . . . . . . . . . . . . . . Q 116 . . . . . . . . . . . . . . . . . . . . 81 O . . . . . . . . . . . . . . . . . ...... IQ 76.1 % . . . . . . . . . . . . . . . . . . . . . . . . . . 77.8% ............................... 0 79.3% . 0 � 82.5 %' ............... ............................... 84.9% ... ............................... � 0-1% %" 93.5 �5 9 2024 10 2025 272 �'jl 223 Q 170 43 __ 79.596 0 83.2%10 87.2% • 96.8% 5 �i C Total (Millions) (ears ors 1 -5 ors 6 -10 ors 11 -15 ors 16 -20 ors 21 -30 Full UAL - Incremental 44 Current 19 Yr 15 Yr 10 Yr Current 19 Yr 15 Yr 10 Yr 90 113 133 181 - 42 90 23 118 131 154 210 - 13 36 91 137 152 179 - - 15 42 (151) (137) (151) 151 139 - - - (12) 168 - - - I - (168) (168) (168) 0 Finance Committee Recommendations ❖Accelerate Amortization — 19 Years ❖Commit to a "Fresh Start" o Implemented w /FY 2015 -16 budget Questions? $60 $40 $20 $0 -$20 -$40 -$60 -$80 -$100 As Compared to the Current Schedule (in Millions) —10 Yr —15 Yr —19 Yr — Current f N O N O N O N O N O N O N O N O N UO N O LU N O N N A —10 Yr —15 Yr —19 Yr — Current f First Ten Years (Millions) 10 Currentl 19 Yr I 15 Yr I 10 Yr Currentl 19 Yr I 15 Yr I 10 Yr 1 2016 14.7 21.3 25.0 34.0 - 6.6 10.3 19.3 2 2017 ..........................................................................................................._..................................................................................... 16.3 21.9 25.8 35.1 ......................................... _ .......................................................................................................... - ................................ _ ............ 5.6 ...................................... ...._.......................... 9.5 18.8 ........................................ _.......................... 3 2018 18.0 22.6 26.5 36.1 ............................................................................................................................................................................................................................................................................... - 4.6 8.6 18.1 ............................... 4 2019 19.8 23.3 27.3 37.2 ..................................................................................................................................................................... - ............................... 3.5 7.6 17.4 ..................................... ............................... 5 2020 21.6 24.0 28.2 38.3 - 2.4 6.6 16.7 6 2021 ................................................................................................................................................................................................................................................................................ 22.3 24.7 29.0 39.5 ........................................................................................................................................................................................................................................................................... - 2.4 ............................... 6.7 17.2 ............................... 7 2022 22.9 25.4 29.9 40.7 ................................................................................................................................................................................................................................................................................ - 2.5 6.9 17.7 ............................... 8 2023 23.6 26.2 30.8 41.9 - 2.6 7.2 18.3 9 2024 ... ...... ..... ... ....................... ...... ......... ...................... ...... ......... ....................... ..... ..... ... ......................................_..........................................._.......................................... 24.3 27.0 31.7 43.1 ............................................................................................................................................................................................................................................................................... - 2.7 ............................... 7.4 18.8 ............................... 10 2025 25.1 27.8 32.6 44.4 - 2.7 7.6 19.4 10 The City has taken a number of actions to mitigate the rising costs including: Establishing lower benefit formulas for new hires Eliminating the Employer Paid Member Contribution (EPMC) Having employees pay more of the pension costs. Reducing the number of staff by nearly 100 employees Adopting a fixed and shorter amortization period of the unfunded liability