HomeMy WebLinkAboutCity of Lansing Employee Retirement acturial valuation as of dec 31 2013 l
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EMPLOYEES' RETIREMENT SYSTEM
l ACTUARIAL VALUATION
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Boomershine Consulting Group
Executive Center I
3300 North Ridge Road,Suite 300
Ellicott City,MD 21043
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TABLE OF CONTENTS
Page
IntroductoryLetter............................................................................................................................ 1
AssetInformation.............................................................................................................................. 3
Participant Summary and Age,Service and Compensation
Distribution....................................................................................................................................... 5
ValuationSummary.......................................................................................................................... 7
" 1
, I
Actuarial Assumptions and Methods................................................................................................ 8
Highlights of Plan Provisions........................................................................................................... 10
Appendix I:Projection of Funding and Contributions...................................................................... 13
Appendix II:History of Contributions and Funding Progress.......................................................... 14
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CONSUMNC CROUR ut
ACruARIA war JRK111 r zL�ypoas
December 15,2014
City of Lansing Employees'Retirement System
124 W.Michigan Avenue
8th Floor
Lansing,MI 48933
Executive Summary
Members of the Board:
The following report sets forth the Actuarial Valuation of the City ofLansim Emnloyees'Retirement System as of
December 31,2013. The report is based on participant data and asset summary as of December 31,2013 as submitted by the Plan
' Administrator and City finance department. We relied on this information without auditing it.
INVESTMENT PERFORMANCE:
The total Market Value of Plan Assets for the plan year ending December 31,2013 was$201,818,037. Plan assets exclude
from this a reserve for healthcare benefits. The total yield of the fund for the plan year ending December 31,2013 was 13.5%
, I
on the market value of assets and 10.4%on an actuarial basis.
The Plan uses a smoothing method to determine the City's contributions.Under this method,asset gains or losses are spread
I
over a 5-year period.The gains and losses are determined every year by comparing actual investment returns with expected
asset performance.
Details of the development of the Actuarial Asset Value are shown on page 4.
FUNDING RECOMMENDATIONS:
The total recommended City contribution for fiscal year 2015 is$10,547,556. Last year the total recommended contribution was
$9,361,009. This increase is due to the adoption of more conservative assumptions, as well as dempographic losses.
FUNDING PROGRESS:
The Actuarial Accrued Liability as of December 31,2013 is$313,258,746 compared to the Actuarial Value of Assets of
$172,687,582,resulting in a plan funded ratio of 55.1%. On a market value basis,this ratio is 58.0%.
The 12/31/2013 actuarial liabilities and fiscal year 2015 contributions reflect changes to assumed return and inflation,adopted
by the Board. The return and inflation assumptions were decreased from 7.8%and 3.3%to 7.6%and 3.1%,respectively.
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
This report is prepared in accordance with generally accepted actuarial principles and practices.In the opinion of the City
and its actuary,the actuarial assumptions used are reasonably related to Plan experience and expectations.
The undersigned are members of the American Academy of Actuaries,and are qualified to render the actuarial
opinions presented in this Report.
The information presented in this report pertains only to the funding of the System. All of the figures related to accounting and
disclosure under GASB 67 and 68 are now presented in a separate report.
Respectfully submitted,
BOOMERSHINE CONSULTING GROUP,L.L.C.
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II
TRUST FUND STATEMENT
AND
DETERMINATION OF VALUATION ASSETS
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CONSULTLNG GROUP,U_C,
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City of Lansing Actuarial Valuation
Employees'Retirement Systen as of December 31,2013
TRUST FUND STATEMENT FOR THE PLAN YEAR ENDING
DECEMBER 31,2013
Market Value of Total Fund as of December 31,2012 * $189,565,077
Receipts:
Employer Contribution-Pension Fund 8,992,536
Employer Contribution-Healthcare Reserve 300,000
Member Contributions 1,279,756
Adjustments Investment Income
Interest 3,668,798
Dividends 723,829
Market Appreciation 20,823,647
Total Additions $35,788,566
Disbursements:
Member Refund 969,348
Distributions to Participants/Beneficiaries 21,822,174
Administrative Expenses and Other 65,078
Investment Expenses 680,006
Total Disbursements $23,535,607
Net Increase/(Decrease)in Assets $12,252,960
Market Value of Total Fund as of December 31,2013 $201,818,037
* Beginning of year amount includes reduction for funds payable for 911 transfer. Funds were transferred during 2013.
ALLOCATION OF NET PLAN ASSETS AS OF DECEMBER 31,2013
Market Value %
Cash and Short Term Investments 20,257,949 10.0%
Equity 102,012,748 50.6%
Fixed Income 72,224,293 35.8%
Real Estate 12,784,293 6.3%
Accounts paavable 5 461 246 -2.7%
TOTAL ASSETS $201,818,037 100.0%
ADJUSTMENT
TOTAL ASSETS AFTER ADJUSTMENT
Estimated Rate of Return on Market Value for 2013: 13.49%
3
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CON SIXTINO GROUP,LLB.
1CNARIAL&Kf1KEMFNf NUN S_ I l'IIONS
City of Lansing Actuarial Valuation
Employees'Retirement Systeir, as of December 31,2013
DETERMINATION OF ACTUARIAL VALUE OF ASSETS AS OF DECEMBER 31,2013
Market Value of Total Fund as of December 31,2012 $189,565,077
Plus: Contributions 9,303,944
Less:Benefit Payments,Transfers 21,822,174
' Less:Expenses 65,078
Plus:Expected Return during 2013 (@ 7.8%,prior to assumption change) 13,983,163 '..
Expected Asset Value $191,264,932
Market Value of Total Fund as of December 31,2013 $201,818,037
Asset Gain/(Loss)for 2013 Plan Year 10,553,104
Less: 80%of2013 Gain/(Loss) 80% * 10,553,104 8,442,484
Less: 60%of 2012 Gain/(Loss) 60% * 7,932,079 4,759,247
Less:40%of 2011 Gain/(Loss) 40% * (10,802,449) (4,320,980)
Less:20%of 2010 Gain/(Loss) 20% * 6,246,305 1,249,261
Total Deferred Gain/(Loss) 10,130,012
Actuarial Value of Assets,Total Fund-December 31,2013 $191,688,025
as%of Market Value of Assets 95.0%
'.. Healthcare Reserve as of December 31,2013 $20,004,547
Adjusted Healthcare Reservel 19,000,443
Actuarial Value of Assets,Pension Plan-December 31,2013 $172,687,582
Estimated Rate of Return on the Actuarial Value is 10.41%
' Takes into account asset smoothing
4
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ACTUARIAL&RETIRLAl N C YL1N 40LU'nONS
PARTICIPANT SUMMARY
AGE, SERVICE AND COMPENSATION DISTRIBUTION
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013 -
PARTICIPANT SUMMARY AND RECONCILIATION
Active Vested
Participants Terminations Retired" Disabled Beneficial Total
Participants as of December 31,2012 406 70 698 21 140 1,335
Connections
0
Retired (31) (7) 38 0 0 0
Terminated Vested (6) 6 0 0 0 0
Terminated Non-Vested(Member
Contributions refunded) (9) 0 0 0 0 (9)
Disabled (5) 0 0 5 0 0
Deceased 0 0 (13) (1) (9) (23)
New Beneficiary/EDRO 0 0 0 0 6 6 _
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Rehired 2 (1) 0 0 0 1
Terminated Non-Vested(Member
Contributions to be refunded) 0 0 0 0 0 0
. I
Transfers In 0 0 0 0 0 0
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Transfers to Police and Fire Plan 0 0 0 0 0 0
New Hires 19 0 0 0 0 19
Data Adjustments (3) 0 12 0 (12) (3)
Participants as of December 31,2013 373 68 735 25 125 1,326
-*Separated out the retiree EDROs from the Beneficiary EDROs front 2013 Valuation
Inactive Participants 12/31/2012 12/31/2013
Number of Retired Participants 698 735
Average Age 66.3 66.5
Average Annual Benefit $26,390 $26,821
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Number of Disabled Participants 21 25
Average Age 62.7 61.4
Average Annual Benefit $18,238 $18,477
, I
Number of Beneficiaries/EDROs 140 125
Average Age 73.2 73.5
Average Annual Benefit $12,339 $12,367
Number of Deferred Vested Participants 70 68
Average Age 51.2 51.1
Average Annual Benefit $11,760 $11,716
5
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CONSULTENG GROUP,ux,
AC feARIAt&RPTIRLNj N 1 PLAN SOl U"I IONS
City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
DISTRIBUTION OF ACTIVE PARTICIPANTS AND AVERAGE COMPENSATION
BY AGE AND SERVICE AS OF DECEMBER 31,2013
Nearest -----Years of Credited Service-----
Age <I 1 2 - 4 5 - 9 10 - 14 15 - 19 20 - 24 25 - 29 >29 Total
<20
20-24 1 1
32,431 32,431
25-29 5 1 6
17,337 27,636 19,053
30-34 5 2 8 l 16
16,502 47,295 48,531 42,621 37,998
35-39 2 10 9 21
25,310 49,449 48,132 46,586
l
40-44 4 1 2 12 26 4 1 50
41,889 36,506 69,415 48,644 54,239 52,704 44,415 51,841
45-49 3 1 2 14 35 21 6 82
27,160 38,603 47,655 57,094 51,967 55,505 57,685 52,991
50-54 1 4 15 33 24 7 4 88
54,218 39,447 54,903 55,467 48,006 55,702 77,964 53,635
55-59 4 9 25 15 11 3 1 68
62,263 60,306 51,933 58,268 54,980 63,530 92,608 56,649
60-64 4 12 7 4 1 28
45,703 51,161 57,627 58,506 55,943 53,218
>64 2 9 1 1 13
96,964 50,490 63,808 65,220 59,797
'Dotal 20 4 14 74 150 72 30 8 1 373
26,154 33,794 52,541 54,173 52,690 53,747 56,149 69,799 92,608 '..
Males Females Total
Total Compensation 11,972,941 7,536,859 19,509,800
Average Compensation 54,422 49,261 52,305
Arithmetic Averages:
Nearest Age 49.6 49.8 49.7
Completed Year's of Service 12.5 10.6 11.7
Salary-Weighted Averages:
Nearest Age 50.3 50.4 50.4
Completed Years of Service 13.1 10.9 12.2
Number of Participants 220 153 373
J Percent male/female 59.0% 41.0% 100.0%
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VALUATION SUMMARY
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
DEVELOPMENT OF RECOMMENDED CONTRIBUTION
I
12/31/2012 12/31/2013
Total Entry Age Normal Cost $ 2,793,216 $ 2,862,200
Estimated Employee Contributions 1,167,096 1,058,421
Net City Normal Cost $ 1,626,120 $ 1,803,779
Valuation Payroll $ 22,838,598 $ 20,874,143
City Normal Cost Rate(%of pay) 7.1% 8.6%
Actuarial Accrued Liability
Active Employees $ 51,989,946 $ 55,328,454
Member Benefit Fund 15,814,018 15,621,340
Terminated Vested 6,447,052 5,404,429
Retirees and Beneficiaries 219,723,417 236,904 523
Total Actuarial Accrued Liability $ 293,974,433 $ 313,258,746
Actuarial Value of Assets 167,569,807 172,697,582
Unfunded Actuarial Accrued Liability 126,404,626 140,571,164
Amortization of Unfunded Actuarial Accrued Liability $ 7,435,844 $ 8,426,634
Amortization Rate(%of Pay) 32.6% 40.4%
Total Contribution Rate 39.7% 49.0%
Projected Fiscal Payroll $ 23,592,272 $ 21,521,242
Total City Contribution $ 9,361,009 $ 10,547,556
Estimated Cash Flow for Next Five Years:
Fiscal Year City Contributions Member Contributions Benefit Payments
2016 10,800,000 1,100,000 22,500,000
2017 11,000,000 1,100,000 22,800,000
2018 11,000,000 1,200,000 23,100,000
2019 11,100,000 1,300,000 23,400,000
2020 11,500,000 1,400,000 23,700,000
7
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GOMULTING GROUP,La.
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ASSUMPTIONS AND METHODS
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
ASSUMPTIONS AND METHODS '..
Funding Method: Entry Age Normal Actuarial Cost Method.The contribution equals the sum of the
normal cost and the amount necessary to amortize the unfunded actuarial liability
as a level percent of payroll over a closed period of thirty years,decreasing by 1
year to an ultimate period of 15 years(28 years remaining as of December 31,
2013).
Asset Smoothing Method: Investment gains and losses are determined annually and each is spread over a 5-
year period. This is done on a total fund basis. The value of the healthcare reserve
is then excluded from the valuation assets.
Investment Return: 7.60% compounded annually, beginning January 1, 2014. The prior assumption
was 7.80%.
' I
The cost of living as measured by the Consumer Price Index(CPI)is assumed to
Cost of Living(inflation): increase at the rate of 3.10%per year. The prior assumption was 3.30%.
Increases in salary are assumed to be 3.10% annually,plus an additional amount
Salary Increases: that varies based on the service of the member as shown below:
Years of Service UAW All Others
0-8 2.00% 1.50%
9-10 2.00% 0.25%
11 + 1.00% 0.25%
Mortality: RP2000 Combined Healthy Tables set back one year for females.For Disabled
members,the disabled version of these tables are assumed.Each of these tables is
projected to 2008 using Scale BB.Projected improvements in mortality for non
disabled members have been accounted for by projecting the table to 2023 using
50%of Scale BB.
Percent Married: 90%of participants are assumed to be married.Male spouses are assumed to be
three years older than their female spouse.
8
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CONSULT,LNG GR QUF;ILL.
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
ASSUMPTIONS AND METHODS
(continued)
Disability: Rates of disability vary based on the age of the member as shown below.Half of
all disabilities are assumed to be duty related.
Samples rates are shown below.
Age Rate
20 0.0004
30 0.0004
40 0.0013
50 0.0041
60 0.0090
Termination: Rates of termination vary based on the service of the member.
Samples rates are shown below.
Years of
Service UAW Others
0 10.0% 20.0%
1 7.0% 10.0%
2 5.0% 4.0%
3 5.0% 4.0%
4 5.0% 4.0%
5 4.0% 3.0%
10 1.0% 1.0%
15 1.0% 1.0%
20+ 0.5% 0.5%
Retirement: Rates of retirement vary based on the age of the member as shown below. Rate is
applied only if the member is eligible to retire.
Age UAW Others
45-49 0.0% 10.0%
50-54 40.0% 10.0%
55-56 40.0% 15.0%
57 20.0% 15.0%
58 10.0% 25.0%
59 10.0% 10.0%
60 20.0% 15.0%
61 35.0% 15.0%
62-64 20.0% 15.0%
65-69 100.0% 50.0%
70+ 100.0% 100.0%
The assumptions above are based on the most recent experience study,covering 2005 through 2011.
The next study is scheduled for 2016. ',
Changes in assumptions since the prior valuation:
The assumed return and inflation assumptions were changed from 7.80%and 3.30%to 7.60%and 3.1%,respectively.
An adjusted amount of Healthcare Reserve based on the ratio of the Actuarial Value of Assets to the Market Value of
Assets,is now used as part of the asset smoothing determination.
9
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CONSU'L`fING CicROUPr LI,.C.
API}I/,RIAI &RI IIRMUN1 PLANSOI llLONS
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HIGHLIGHTS OF PLAN PROVISIONS
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CONSULTING GROUP,LLC.
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
PLAN PROVISIONS
There have been no changes in Plan provisions since the prior valuation.
Employee Group Covered: Teamsters,UAW,Exempt,District Court(except Judges),Executive Pay,
Newly hired elected officials do not become members of this Plan.
Normal Retirement Age
(All Members-New Plan): Age 50 with 25 years of service or at age 58 with 8 years of service
UAW-Age 50 with 25 years od service or at age 58 with 8 years of service.All
Normal Retirement Me(Old Plan): Others- 8 years of service and attainment of the earlier of age 58 or the age at
which age plus service equals or exceeds 65.
Normal Form of Benefit Single life annuity '
Member Contributions: Old Plan New Plan
UAW 2.95% 3.00%effective 10/18/2013
6.5%(5.00%for hires afler
Teamsters 214 3.75% September 2012)
Teamsters 580 3.50% 6.35%
District Court Teamsters 3.50% 5.50%
District Court Exempt 4.50% 5.50%
Exempt 3.75% 6.50%
Executive Pay Plan 3.75% 6.50%
Elected Officials 3.25% No Defined Benefit Plan
Compensation: Member's Salary, wages, and longevity bonus. In addition, Compensation may
include up to 80 hours of compensatory time for members not eligible for overtime
. I
pay.
Final Average Compensation: The average of the highest annual compensation paid over 2 consecutive years of
credited service within the last 10 years of credited service immediately preceding
a member's termination of employment.
Normal Retirement Benefit Formula(New Plan
2.75%of Final Average Compensation times years of credited service; 1.70%of
UAW Final Average Compensation times years of credited service for new lures after
October 18,2013.
1.80%of Final Average Compensation times years of credited service; 1.25%of
Teamsters 214 and 580 Final Average Compensation times years of credited service for new hires after
September 2012 in Teamsters 214,
All Others 1.60%of Final Average Compensation times years of credited service.
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
PLAN PROVISIONS
(continued)
Normal Retirement Benefit Formula(Old Plant '.
2.75%of Final Average Compensation times for the first 35 years of credited
service,plus 1.5%of Final Average Compensation for the next 5 years of service,
UAW and Elected Officials plus 1.0%of Final Average Compensation for service in excess of 40 years,with a ',
maximum of 100%of Final Average Compensation. '�..
District Court Teamsters 2.30%of Final Average Compensation times years of credited service.
2.80%of Final Average Compensation times for the first 35 years of credited
I All Others service,plus 1.5%of Final Average Compensation for the next 5 years of service,
plus 1.0%of Final Average Compensation for service in excess of 40 years,with a
maximum of 100%of Final Average Compensation. '..
Termination Prior to Retirement
Eligibility Vesting is after 8 years of credited service.
Benefit is payable as a Life Amenity beginning at age 58 for new Plan Members
Form of Benefit and at the age at which age plus service equals 65 for Old Plan Members(except
UAW).
Duty Disability
Eligibility Members are eligible for Duty Disability Retirement benefits immediately upon
employment.
Benefit is paid at the effective date of disability retirement as a Life Annuity and is
equal to the accrued Retirement Benefit,with additional service granted to age 60. '..
Benefit Amount During the worker's compensation period,the disability benefit may not exceed the
difference between the member's final compensation and the worker's
compensation amount.Upon the attainment of age 60,disabled retirees are
transferred to service retirement status.
Non Duty Disability '.
Eligibility Members are eligible for Non Duty Disability Retirement benefits after completing
10 years of service.
Benefit is paid at the effective date of disability retirement as a Life Annuity and is
Benefit Amount equal to the accrued Retirement Benefit,with a minimum benefit equal to 25%of
final average compensation.
11
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1�CONSU LING GROTi;?P,1.e.C.
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
PLAN PROVISIONS
(continued)
Death incurred in the Line of Duty
Benefit is payable to the survivors of a member who died as a result of an injury or
Eligibility disease arising out of and in the course of duty.
Benefit is paid upon termination of the survivor's workers'compensation period as
Benefit Amount a Life Annuity and is equal to the survivor's weekly workers'compensation
converted to an annual basis.
Non Duty Pre-Retirement Death
The non duty pre retirement death benefit is payable upon the death of a member
Eligibility after earning 8 years of credited service.
Benefit is paid to the surviving spouse as a Joint and Survivor benefit and is
Benefit Amount computed in the same manner as the Normal Retirement Benefit.
Optional Benefit Forms
Prior to retirement,a member may elect to convert the retirement allowance into a benefit of equivalent actuarial
value in accordance with one of the optional forms described below.
a.Cash Refund Annuity-If a member dies before receiving the total value of accumulated member contributions,
the remaining member contributions are payable to designated beneficiary(ies)at the time of death.
b. 50%or 100%Joint and Survivor Annuity.
c.Social Security Level Income("Equating Pension")-Any member who retires prior to age 65 may elect to have
his retirement allowance actuarially equated to provide an increase retirement allowance to age 65,and a reduced
retirement allowance payable thereafter. 'The increased retirement allowance shall approximate the sum of the
member's reduced retirement allowance'payable after age 65 and the member's estimated Social Security Primary
Insurance Amount.
Post-Retirement Benefit Adjustments
One-time post-retirement benefit increases were granted in 1984, 1987 and 1998.
Effective January 1, 1999,and each January 1 thereafter,certain eligible retirees and beneficiaries receive annual benefit
increases,financed by the Members'Benefit Fund reserve while it maintains a positive balance.Retirees/Beneficiaries must
meet both of the following conditions:
1)Has been retired at least 6 months as of the January 1 increase date
2)Age 60 as of the January 1 increase date
For a retiree/beneficiary who elected a 50%or 100%Joint and Survivor Annuity,the maximum annual increase is equal to$200
($100 for the beneficiary if 50%option is elected)times a ratio of the original Joint and Survivor benefit to the original straight
life annuity benefit.
For all other retirees/beneficiaries,the maximum annual increase is$200.
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CONSULTING GROUP,U.C.
AC f=UAIUAL LU I'in MEN f PIAN SOLUI IONS
City of Lansing Actuarial Valuation t on
Employees'Retirement System as of December 31,2013
APPENDIX I: FUTURE FUNDING AND CONTRIBUTIONS
The graphs below show a projection of expected funding progress and City contributions to the Fund. The actual funding
progress and contributions over this time period will differ from what is shown here,due to the actual experience of the Plan.
However,we can see that the Plan is on a path to controlling the unfunded liability(top graph,red line)and improving the
funding ratio by about 10%. During this time,the City contribution rate are expected to remain at 40%to 50%of pay.
Projection of Funding Progress
160,000,000
140,000,000 - --
120,000,000 — - - - —
®Funding Ratio:. -rUnfunded AAL WA)
100,000,000 - -- G3°l 64%65%66%67% 67%
80,000,000 a 55%-56%5 8%59%59%60%60Y 60%67% 67%62% I _..
60,000,000 " 1 a
a A $ > s c
40,000,000 _ ='��^ ;§.
x _ 31;
20,000,0� �, a
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2013r 2016 2019r 2022 - 2025 2028 2031
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Proiection of City Contributions
20,000,000
18,000,OW Amortization t..._+Normal Cost.- ,.. City Contrb(Y.Pay)
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._._. _._..__._._..._ -..._._...__- _._,__._ __.-__..._..._ _.......__-_.._ .-_._._._.-_..-16,000,000 SOY.
..
ti
14,000,000 ------------._-_._...--------`-------_--
4
12,000,000
10,000,000 - - -- - -- -
6,000,000 .__ _. _ 20%
4,000,000 10%
2,000,000
0%
2014 2017r 2020 2023 j2021 2029 2tl32
13
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CONSULTING GROUP,1_Lt.
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City of Lansing Actuarial Valuation
Employees'Retirement System as of December 31,2013
Appendix Il: History of Employer Contributions and Funding Progress
Annual Required Actual
Fiscal Year Ending Contribution(ARC) Contribution
6/30/2003 3,566,759 3,498,990
6/30/2004 3,465,937 3,465,937
6/30/2005 4,675,076 4,675,076
6/30/2006 4,901,502 4,901,502
6/30/2007 5,230,668 5,230,668
6/30/2008 6,021,613 6,021,613
6/30/2009 6,047,520 6,476,000 (1)
6/30/2010 6,472,341 6,043,861 (1)
6/30/2011 7,297,083 7,297,083
6/30/2012 7,596,879 7,523,534 (2)
6/30/2013 8,586,536 8,586,536 (3)
6/30/2014 9,361,000 9,361,000
6/30/2015 10,548,000 To Be Determined (4)
(1)The City contributed in excess of its FY 2009 ARC. The City's FY 2010 contribution was reduced by the
dollar amount of the FY 2009 overpayment.
(2)The FY 2012 City contribution was reduced by$73,345 in recognition of additional contributions by United
Auto Workers(UAW)employees,which were negotiated and contributed after the estabishment of the June 30,
2012 ARC from the December 31,2010 valuation.
(3)Fiscal year 2013 ARC reflects changes made to actuarial assumptions based on an Experience Study.
Changes included a decrease in the assumed rate of return from 8.0%to 7.8°%. A closed amortization period was
also adopted as of 1 213 1/2 0 1 1,beginning at 30 years and decreasing each year until 15 years is reached.
(4)Fiscal year 2015 ARC reflects changes made to assumed return and inflation from 7.8%and 3.3%to 7.6%
and 3.1%,resepectively.
Actuarial Value Actuarial Accrued Percentage Unfunded Actuarial
Valuation Date of Assets(AVA) Liability(AAL) Funded Accrued Liability
12/31/2002 192,920,000 215,405,000 89.6% 22,485,000
12/31/2003 199,329,000 221,088,000 90.2% 21,759,000
12/31/2004 206,200,000 231,389,000 89.1% 25,189,000
12/31/2005 207,881,000 241,882,000 85.9% 34,001,000
12/31/2006 208,765,000 251,427,000 83.0% 42,662,000
1.2/31/2007 208,572,000 254,356,000 82.0% 45,784,000
12/31/2008 200,600,000 258,331,000 77.7% 57,731,000
12/31/2009 193,324,000 262,298,000 73.7% 68,974,000
12/31/2010 187,440,590 269,461,935 69.6% 82,02t,345
(5) 12/31/2011 177,100,863 287,306,707 61.6% 110,205,844
12/31/2012 167,569,807 293,974,433 57.0% 126,404,626
(6) 12/31/2013 172,687,582 313,258,746 55.1% 140,571,164
(5)Reflects changes made to actuarial assumptions,based on Experience Study,including a reduction in the
assumed return 8.0%to 7.8%.
(6)Reflects changes made to assumed return and inflation from 7.8°%and 3.3%to 7.6%and 3.1%,resepectively.
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