The URL can be used to link to this page

2015 Actuarial ServicesVILLAGE OF OAK BROOK PROFESSIONAL SERVICES AGREEMENT This AGREEMENT is dated as of the �� t day of October, 2015 ("Agreement"), and is by and between the VILLAGE OF OAK BROOK, an Illinois municipal corporation ("Village"), and THE NYHART COMPANY, INC., 707 Lake Cook Road, Suite 250, Deerfield, Illinois 60015 ("Consultant"). IN CONSIDERATION OF the recitals and the mutual covenants and agreements set forth in the Agreement, and pursuant to the Village's statutory powers, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. The Village retains the Consultant to perforin, and the Consultant agrees to perform, all necessary services to perform the work in connection with the project identified below ("Services"), which Services the Consultant shall provide pursuant to the terms and conditions of this Agreement: A. Services. A.I.. Pension actuarial services for the Village of Oak Brook Fire Pension Fund, Police Pension Fund, and Other Post -Employment Benefits ("OPEB") Plan for the Village's 2016, 2017, 2018, 2019, and 2020 fiscal years, which Services are more fully described in the Consultant's Response to the Village's Request for Proposal, dated August 2015, which is attached hereto as Exhibit A. A_2. Starting with the January 2016 FD Pension valuation, PD Pension valuation, and the OPEB valuation, Consultant agrees to provide the Village with a 35 year projection modeler (out to year 2050) in an Excel format, for each plan, that allows the Village to see the estimated financial results based on various assumptions, asset returns, amortization methods, and cost methods to allow the Village's Finance Department to perform different scenario's allowing the user to change the input information. There is no additional cost for the modeler. B. Term of Agreement. The term of this Agreement shall begin on the Effective date and end after the completion and delivery to the Village of the Oak Brook Fire Pension Fund, Police Pension Fund, and Other Post - Employment Benefits ("OPEB") Plan for the Village's 2016 fiscal year. The Village, at its sole discretion, may extend the Term of this Agreement for four one-year periods by providing the Consultant written notice. SECTION 2. TIME OF PERFORMANCE. The Consultant shall perform the Services as mutually agreed upon by Village and Consultant, but in no event shall the Consultant provide the Village the completed annual valuation reports later than March 15`h of each year during the tern of this Agreement ("Tine of Performance"). SECTION 3. COMPENSATION. A. Agreement Amount. The total amount billed by the Consultant for the Services under this Agreement shall be as follows: Year FD PD OPEB Attend Pension Pension Valuation Additional Valuation Valuation Board of Trustees Meetings 2016 $7,500 $7,500 $2,500 $300/hr 2017 $7,750 $7,750 $2,500 $310/hr 2018 $8,000 $8,000 $6,000 $320/hr 2019 $8,250 $8,250 $3,000 $330/hr 2020 $8,500 $8,500 $6,500 $340/hr The Consultant shall not bill, and the Village shall not be liable for, any additional fees or charges without the prior express written authorization of the Village Manager. B. Taxes, Benefits. and Royalties. Each payment by the Village to the Consultant includes all applicable federal, state, and Village taxes of every kind and nature applicable to the Services as well as all taxes, contributions, and premiums for unemployment insurance, old age or retirement benefits, pensions, annuities, or similar benefits and all costs, royalties, and fees arising from the use of, or the incorporation into, the Services, of patented or copyrighted equipment, materials, supplies, tools, appliances, devices, processes, or inventions. All claim or right to claim additional compensation by reason of the payment of any such tax, contribution, premium, costs, royalties, or fees is hereby waived and released by Consultant. SECTION 4. REPRESENTATIONS OF CONSULTANT. The Consultant represents and certifies that the Services shall be performed in accordance with the standards of professional practice, care, and diligence practiced by recognized consultants in pey -Xing services Approved gs to Form Date:�l3 of a similar nature in existence at the Time of Performance. The representations and certifications expressed shall be in addition to any other representations and certifications expressed in this Agreement, or expressed or implied by law, which are hereby reserved unto the Village. The Consultant further represents that it is financially solvent, has the necessary financial resources, and is sufficiently experienced and competent to perform and complete the Services in a manner consistent with the standards of professional practice by recognized consultants providing services of a similar nature. Mike Zurek, FCA, EA, MAAA, shall be primarily responsible for carrying out the Services on behalf of the Consultant ("Key Project Personnel"), The Key Project Personnel shall not be changed without the Village's prior written approval. The Consultant shall provide all personnel necessary to complete the Services. SECTION 5. INDEMNIFICATION• INSURANCE• LIABILITY. A. Indemnification. The Consultant proposes and agrees that the Consultant shall indemnify and save harmless the Village against all damages, liability, claims, losses, and expenses (including attorneys' fee) that may arise, or be alleged to have arisen, out of or in connection with the Consultant's performance of, or failure to perform, the Services or any part thereof, or any failure to meet the representations and certifications set forth in Section 4 of this Agreement. B. Insurance. The Consultant acknowledges and agrees that the Consultant shall, and has a duty to maintain adequate insurance, in an amount, in a form, from companies, and pursuant to the terms, as set forth in Exhibit B. The Consultant's maintenance of adequate insurance shall not be construed in any way as a limitation on the Consultant's liability for losses or damages under this Agreement. C. No Personal Liability. No elected or appointed official or employee of the Village shall be personally liable, in law or in contract, to the Consultant as the result of the execution of this Agreement. SECTION 6. GENERAL PROVISIONS. A. Relationship of the Parties. The Consultant shall act as an independent contractor in providing and performing the Services. Nothing in or done pursuant to this Agreement shall be construed to: (1) create the relationship of principal and agent, employer and employee, partners, or joint venturers between the Village and Consultant; or (2) to create any relationship between the Village and any subcontractor of the Consultant. B. Conflicts of Interest. The Consultant represents and certifies that, to the best of its knowledge: (1) no Village employee or agent is interested in the business of the Consultant or this Agreement; (2) as of the date of this Agreement, neither the Consultant nor any person employed or associated with the Consultant has any interest that would conflict in any manner or degree with the performance of the obligations under this Agreement; and (3) neither the Consultant nor any person employed by or associated with the Consultant shall at any time during the term of this Agreement obtain or acquire any interest that would conflict in any manner or degree with the performance of the obligations under this Agreement. C. No Collusion. The Consultant represents and certifies that the Consultant is not barred from contracting with a unit of state or local government as a result of (1) a delinquency in the payment of any tax administered by the Illinois Department of Revenue unless the Consultant is contesting, in accordance with the procedures established by the appropriate revenue act, its liability for the tax or the amount of the tax, as set froth in Section 11-42.1-1 et seq. of the Illinois Municipal Code, 65 ILCS 5/11-42.1-1 et seq.; or (2) a violation of either Section 33E-3 or Section 33E-4 of Article 33E of the Criminal Code of 1961, 720 ILCS 5/33E-1 et seq. If at any time it shall be found that the Consultant has, in procuring this Agreement, colluded with any other person, firm, or corporation, then the Consultant shall be liable to the Village for all loss or damage that the Village may suffer, and this Agreement shall, at the Village's option, be null and void. D. Termination. Notwithstanding any other provision hereof, the Village may terminate this Agreement at any time upon 15 days prior written notice to the Consultant. In the event that this Agreement is so terminated, the Consultant shall be paid for Services actually performed and reimbursable expenses actually incurred, if any, prior to termination, not exceeding the value of the Services completed. E. Compliance with Laws and Grants. Consultant shall give all notices, pay all fees, and take all other action that may be necessary to ensure that the Services are provided, performed, and completed in accordance with all required governmental permits, licenses, or other approvals and authorizations that may be required in connection with providing, performing, and completing the Services, and with all applicable statutes, ordinances, rules, and regulations, including without limitation the Fair Labor Standards Act; any statutes regarding qualification to do business; any statutes prohibiting discrimination because of, or requiring affirmative action based on, race, creed, color, national origin, age, sex, or other prohibited classification, including, without limitation, the Americans with Disabilities Act of 1990, 42 U.S.C. §§ 12101 et seq., and the Illinois Human Rights Act, 775 ILCS 5/1-101 et seq. Consultant shall also comply with all conditions of any federal, state, or local grant received by the Village or Consultant with respect to this Agreement or the Services. Consultant shall be solely liable for any fines or civil penalties that are imposed by any governmental or quasi - governmental agency or body that may arise, or be alleged to have arisen, out of or in connection with Consultant's, or its subcontractors, performance of, or failure to perform, the Services or any part thereof. Every provision of law required by law to be inserted into this Agreement shall be deemed to be inserted herein. F. Default. If it should appear at any time that the Consultant has failed or refused to prosecute, or has delayed in the prosecution of, the Services with diligence at a rate that assures completion of the Services in full compliance with the requirements of this Agreement, or has otherwise failed, refused, or delayed to perform or satisfy the Services or any other requirement of this Agreement ("Event of Default"), and fails to cure any such Event of Default within ten business days after the Consultant's receipt of written notice of such Event of Default from the Village, then the Village shall have the right, without prejudice to any other remedies provided by law or equity, to (1) terminate this Agreement without liability for further payment; or (2) withhold from any payment or recover from the Consultant, any and all costs, including attorneys' fees and administrative expenses, incurred by die Village as the result of any Event of Default by the Consultant or as a result of actions taken by the Village in response to any Event of Default by the Consultant. G. Assignment. This Agreement may not be assigned by the Village or by the Consultant without the prior written consent of the other party. H. Notice. All notices required or permitted to be given under this Agreement shall be in writing and shall be delivered: (1) personally; (2) by a reputable overnight courier; or by (3) by certified mail, return receipt requested, and deposited in the U.S. Mail, postage prepaid. Unless otherwise expressly provided in this Agreement, notices shall be deemed received upon the earlier of: (a) actual receipt; (b) one business day after deposit with an overnight courier as evidenced by a receipt of deposit; or (c) three business days following deposit in the U.S. mail, as evidenced by a return receipt. Notices and communications to the Village shall be addressed to, and delivered at, the following address: ATTEST: By: Charlotte Pruss, Village Clerk ATTEST: Village of Oak Brook 1200 Oak Brook Road Oak Brook, Illinois 60523 Attention: Sharon Dangles, AVM/Finance Director Notices and communications to the Consultant shall be addressed to, and delivered at, the following address: The Nyhart Company, Inc. 707 Lake Cook Road, Suite 250 Deerfield, Illinois 60115 Attention: Mike Zurek, FCA, EA, MAAA I. Waiver. Neither the Village nor the Consultant shall be under any obligation to exercise any of the rights granted to them in this Agreement except as it shall determine to be in its best interest from time to time. The failure of the Village or the Consultant to exercise at any time any such rights shall not be deemed or construed as a waiver of that right, nor shall the failure void or affect the Village's or the Consultant's right to enforce such rights or any other rights. J. Third Party Beneficiary. No claim as a third party beneficiary under this Agreement by any person, firm, or corporation shall be made or be valid against the Village. K. Governing Law; Venue. This Agreement shall be governed by, construed and enforced in accordance with the internal laws, but not the conflicts of laws rules, of the State of Illinois. Venue for any action arising out of this Agreement shall be in the Circuit Court for DuPage County, Illinois. J. Exhibits. If any conflict exists between this Agreement and any exhibit attached hereto, the terms of this Agreement shall prevail. VI� By: Riccardo F. Ginex, Village Manager THE NYHART COMPANY, INC. By BY Title: ��-�'Y Its: d ,L')'U4v EXHIBIT A V 0 L m v O O PA R u 0 CL 0 N d O L CL N LL. XF u Lo N Q In m LZ T co c 0 m a CONFIDENTIAL O 0 0 r" LO CD x m Q Q U '� Q IO C', O Q d U 9 o r X Q �� O Q Y LL U O J O r o Y� U_ Q U N E C O L(7 Z5 co N OU LLL. O O >1 m N 'ct' ' CLI), COL X� flcd CoQ IL ni � � ) N ) Lo N tf co° m m ro=no T E T Q co ut LO LO (_� >, a co cc F co E co Cl) o 0 0 r" CD x L N Q Q U '� OD > a C', O Q d U 9 o r p x i Q �� O co �LQL j, Y LL U O J O r Y� U_ M m m 7 -C-, N Z J O L(7 Z5 co N o W N ID V a h Y N 2F---rl❑ coc+m E August 26, 2015 Ms. Rania Serences Senior Purchasing Assistant Village of Oak Brook 1200 Oak Brook Road Oak Brook, IL 60523 Dear Ms. Serences: C. Letter Thank you for considering our proposal for actuarial services for the Village of Oak Brook. Naturally, we believe Nyhart would be the best choice for the Village. Let me tell you why we believe that to be true. We are uniquely qualified to serve the Village as we have supplied the same services to a great many other governmental entities across the country... states, counties, cities, towns, school districts, colleges, universities, and villages. We also believe there are certain advantages to the Village in having Nyhart perform their requested services. Customer Service: Most actuaries can get the numbers right; however, where many fail is in customer service. At Nyhart, we believe customer service has to be our #1 priority. As an employee -owned company, our livelihood depends on satisfying our clients and keeping them that way. The extra effort we put into customer service shows up in a number of places — returning phone calls the same day, responding to questions without "turning on the clock", and always thinking of ways to improve the process and deliverables are just a few. Our goal is to be treated as an extension of your staff and as a trusted partner; accordingly, we will respond in the way that best attains those goals. Other areas where our focus on customer service shines through is our flexibility in working with our clients. We know "one size doesn't fit all" and we tailor our services to meet the specific needs of each client. When thinking about the future our clients face, we are always asking ourselves, "What would we want to know to manage the retirement system?." It's questions like that that have sparked the innovating ideas and tools we use with our clients today. Communication: We know financial equations and charts can be rather daunting for the non - actuary; that is why we prefer to summarize information in a way that is easier for our clients to use. Our communication approach is not just to give the minimum necessary information but to educate our clients as we explain actuarial issues. This communication approach (and the associated tools) allow our clients to make effective decisions regarding their plans. We consistently hear feedback from our clients that our communication style is a key reason they love to work with us. 8415 Allison Pointe Boulevard Suite 300 Indianapolis, IN 46250 (p) 317-845-3500 (p)800-428-7106 (f) 317-845-3650 www,nyhart.com An Alliance Benefit Group Licensee nyhart Ms. Rania Serences August 26, 2015 Page 2 One example of our "easier to understand" approach is the development of our management summary report. Actuarial reports tend to contain so much information that the important results get lost in the details. At Nyhart, we try to avoid this concern by providing a management summary report that brings the most important information to the forefront and allows our clients to more efficiently manage their plans. Management summary reports generally include the key valuation results, cost projections, topics of interest for our clients, and retirement plan trend information. Experienced Team: We have selected well-qualified actuaries to serve as part of your team. Mike Zurek and Nick Meggos will lead your pension team and Randy Gomez and Evi Laksana will lead your healthcare team. Firm Size and Background: We are a national firm; however, we still have the small -firm touch when it comes to working with our clients and pricing. Nyhart works with many clients, both private and public sector plans. We believe this is a benefit to our clients as our consultants experience and resolve many different challenges and then that knowledge can be applied to your projects. Again, Nyhart is an ESOP company. This means every employee is an owner and has a vested interest in the satisfaction of our clients. We all recognize that for us (Nyhart) to succeed, we need to provide exceptional service so that our clients can successfully manage their plans and continue to offer the best benefits to their participants. Quality: We get the numbers right. We have built processes to improve efficiencies and ensure accuracy. All actuarial information is technically reviewed and peer reviewed before being delivered to the client. Last but not least, we love what we do. This may sound cliche, but it's the truth. We believe this shows through in our high-quality services and client relationships. We would truly appreciate the opportunity to become your trusted business partner. If you have any questions regarding our response, please do not hesitate to call Mike or Randy at 800-428-7106, or email, mike.zurek@nyhart.com or randy.gomez@nyhart.com. All information contained in our enclosed proposals is true and complete, to the best of our knowledge. Sincerely, OAAA COO & Consulting Actuary Principal LEANNE M WILLETT Notary Public - Seal State of Indiana State of INDIANA ) Hancock County )SS: My Commission Expires Oct 1, 2021 County of MARION ) On this, the 261h day of August, 2015, before me, a notary public, the undersigned officer, personally appeared Tayt V. Odom, known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. In witness hereof, I hereunto set my hand and official seal. Notary Public \ Q C: 0 U 0 0 � � z A ■ 2 7 §pp»e(0000 N@r»»,r»> k 3 : _j :\ : 7 - - %` /: \'\LL, \\: {/(: , {m -co co - :o ±©'J)j»: Z5 0 }� ��/ /: }m 0 << 3ƒ}; - :):%/\{©27:\\33 )ƒ//)(t'2 f\\\ § =(D<0— /f:\//§__ \:){\U)U)E0 §\\)®\7\ ]x\72//2/{<C--ow U) / \MCUm \\\�oa- -!®7£#§{»,mm[=_ yE= )f/\/\\77\\\=a2§=gg .�> \=c===o-j . <<<,C g2//J2/.a��=333£:� J{//\/})2J//§7/ %E3///j<z 3 $w w a � IN � 4 il c 0 � E 0 L( w �§ 0 D -I, U c( Q � CD / CD ) \ / / { Cb \ \) r- \ } \gƒE / r» 3553 / $\ 0000 2\ k \\ co\ \ \ \ \ \\\\ \ \\ U) � CD / \ \\ \) / ° 2\ k \\ \ \ \ } \ U) CD LO \ OD\ co ) 2223 7 em \ \ / R \ % ) °® e ® \\ \± \ / \�/\f § // c : 0 a) % 9 9 § ƒ «-i ) } } LO / \\\\ { \\ \ e , \ CO m Cu cd 2&$y Jr § �)CY �t:© _06 0 \% t Cu cd E. 2&$y �t:© _06 \\\ \% ///r j \\ \\\} / E = .c _ GD c: \� \\ k\ a)�`` C: (D \{ 5\ )5 /} {LO O)/% /y LO t / (� \)�\ -/ ±§o j\ f - $2 \ )Eo 2( \\ \\ \,#3 (} 7 {a J) \) _ -0 Ea §75 {/ f±g/ \/ - 4 {\ - _ CL \ \ U5 0 - 2 /\ \ , }\}ca - \ �� { ) { ® 2 2 { _f\{ /$ 0 00 z) \ \\�} /tz m 2§+) {'m\ ) \)$ 9/` : : \m%} y /E ca \ /-m /J${ oƒg{ D _ *ƒ\ . (D /f - \/) \ }> _ - /-E . », �_ -\§{/ / E-0 3 -\ 0 \� \ o W `° : +}{{ /\/g { y { r\ y\/\ j/ \` /\/)\ E. ) \ : \ / \ . \ { { _ ®( G » ) ) U \ )± $ § § a") \ \ ° k } _ / 2 k \ c) \ ) \ } } r< ± y 3 ( I .. e A A A) 3 / f \ - ) } [ ! J _ } \ % U) § -S ) I m ^ . 2 g d 7 m § ; / } ƒ \ ( _ J - .2 E ~ / ± [ J o - . _ k \ \ } \ \ \ \ \ 2 2 \ \ c \ k } } \ / ) / 2 ± ƒ § } / = \ cu ) ( \ f 7 _ _ . . E ... A e w )�\){ (D .(I) ®kC) \\ { \ CL CLca 0 o cc \\\L \ (D Z: _ :\+)§ 0woco \ 2 \ ( /\/\\/ % g> %{o§-0 \ E% / -®!/0 Cl \/\\\\ 2 \ cc \` Jf»§\ 0 §\\\}/ )6 \a _ . 0 . Q) / §\\)ia u a LD 75 CL 0 \ CO ■ \ \ \ , ) _ \ 2 D : ) \ /\) \ j of G \\}\6 /// _JS 7$ G \\ j// 5 G - 3: \ \/\ ®:pE 2:&I;22 §. /�� CL - ±< oLu\/ E 5({> 0 0 _ Fn \\ \/./{!£ j j \ \\ / k k\( 6 o _ ��t::(- ® CC`f2 «%0 \\ §\ »{ \5@+ §\ s o _ J o o=± = 2 9/ j - {= } ) . 2 . . , . . . / . E . . ' �( } / / /f 3 3 rl U 0 V Uj N W N N N ,U Cn O C .y C E O 9 4 Q I O, O O O 'U E (D U Cn (j C N cz 0 C a N CO >, L�"aon a 0 a � ° a > � Q � a0C7 Lo m i c 9' m o o i ° m ami N N CO a ° N > .� >, o Q C 7 N 0) C ' i a U 1 CD a o 3 o U) >� C a°(0 U)� g(a a N maw >o� = U Cl)as > c N c '� > a co C O (D ( N N E v1 N ° C E� U) a o -' U) i6 co C. O p m '- U N O N fn L T N °' �' E L p C N > N a C .N N S-- E 0 N C O a E co O N a y U j co m 9 L (� UO .E ° C .N aj N C N. C <c1 y C N C N OU C N V N ELo UO. N (Q Q c Z N (n a71 N U N a i N R 'V 0 u% Q ° L U i Q W C Q) cop U' z y N .� c a vi a Q L U 7 a L T N � n,U ) d a a C v 'c Oy Q C p c C =� U U U c c6 c i O U O t4 U d L LL N �9 V'C N QCD� �+� p_ y > ¢ N ° (u V O a O Iz �. cu iL (D (n O_1� cd c c N a � Y t 3 o Q0ca s t- -Q Q Q a C N 3 a U lL u) N Uj T Q m o Q)d „�.. o_ _ E a .o N N N O 0 � a N° > p CL •DJ E ° = m +.c OE LO C OO t -P LO C OON (n D_ CC " U O U O a C m m N a) m • • • o • • Q • N•• CC U Ir accc5 OL W U U 0 rl \{{/ \ \ j\\\ ƒf 2 \ \ � \{\\ o 00=3 �» ]ff\ °z0®ƒ / »\)\ \ �: 7 2 £ 3 / X76 00 �y=E -�) 0 cu a)2 \/\ k �55 0 CES o/®=0 E M [ )/ ]$0 Q) CO�» CL \ \/_ caeO oE: CO \\2 \ # 0� U) LO co ) {{2b j co \��/j \ 2®k-- = - - 9E 2 [f CL \ /\\\\ \ \ �/\/ 'c G s] _ „%fj §@ m CO { 2/ z r a o w w —0 0 w o \ \ \ � �» ]ff\ 7 2 £ 3 2 @ �y=E a)2 )ff§] o/®=0 E M [ )/ ]$0 CL caeO oE: CO m //\\2 j 7 El IL } j \ /__ 0 ! � § / B A . Q a — \ `_ , <<) \ }){\)\{*/ \ /__ 0 _\ / B A . E \ ){ U) 1.1d )- ®/ �n LLI D | 75 %§ms - $(t �%\// \}\\ \ \ § \ c0 0Lu \\\\ \\\ )\ )) Wm )\j / ) \ \\ ƒ) \) a<2 (n0 0 j\ @ { § ; ), { @\! j < /0 ` 2 0 / 7 ®Ln ) ƒ D D - { \{ ) ) )}$)\\ $\ | E. 75 %§ms - $(t �%\// \ 0Lu \\\\ \\\ )\ )) Wm )\j / { ) ), { @\! < /0 ` 2 0 / 7 ®Ln ) ƒ D D E. (3) C O ca (1) 1 m -O T - � q L N O N N m C - C O 0 OL U L77 U a) 'C T 0 V N O- C O r- co + C .V = > i-� U N O O m U O a) = as = i V U E N a u � L +N. o ° N C OMS USN ya_).a U m OO O)oa O O p O U C Q) C C a .0 C +' O C O U Z U) -O O i O w CU U) L a. 0 O O U o a7 a Q a C U U E C a C OL C U C a > +. = O C O m (U d OU U) a) .� L Q Q) N U) N a) N E N (D p..0 E n C N C u. � > � W �a� oda)° C) a E a) a U O a p >L E = CU O cU = C (� N O U m O 0- E L C N > (>U Y C O .Y O co l O M C cU V a) > 0 O 7 Q v= U Q. ¢ N > m>� m O C U C C N Cu N O a) O 4 m O O a -0 co +- .0 co a) as i R1 n a) m ° c Oa>) O c N C a) E a) N E �_ V O O 4 = a5 E i cu N N a a EOL a o o° Y p CU 3 cu a) >, E C ai N O - N RS U >, E a C N d' c0 p a >, o c. �_� n 1 E N o m co m d-� C o ac •- Q T_ O a a) C :- >° N T U E a c on a `) 'O a) p U C C E 9 a) = O X O C L .Q ,U CDCU Q U O C O N Q �,O a) 0 No O E a) N co mo - Q NQ m C a) �. �c 7 N (U 7 p .1 O cU N N y E N c > N£ (n 'C o a) E C vj c O 0- C: a) U U 0-0 N N N NO p C O m 0 a)Q N y a co om o0 c a) N co a) aT E acz w 0 3.� 2 O V.O 3 4- O O' O X C N a a-: U Q L N *+ _ _� = N a) U N a) t> a Q o a O R N c CO ai Q C) ° O 3� a) .0 = tri a>,oc L aE O 4 U p UU�U Q) �O z N O � E N N -0> N cz-0 co o a a) o m LL° C a) 0 a) o CU o Nan= (LU �¢ '� tU O a O) U> O N an N C L 2iCO a) O CL Q U N cz m L X U U (U N (U a$ NO '� a) 0)0,2 a) C L a) O) a) 0 Y U C N O LA C ate.+ ,- _ w N C '_ _ N a.N� �pU)3 aE YN _ Nc -0-0 O Xao o) "' N O '� U K =' 2� L �O LLC) L ."C-- l_z a) a) - ° U)c =U> r oc me ai (1) >1 N 0� 'C N a O O t6 >,'� O y> y � O Q ` L V CAO Q C > O O N �O �O R1 Z '0) C CO 2 E N O N U N N co '� > X U con Q Q C a L N N+ M co W Q cU W "a6 E U) T E Y co O a) N C � C Q _y Q C u co E E LO Y co Q T C T O (1) (U T i R Q = Q) N C T'N N ZC)c SmE� 0 Zai 0 ¢E 0�QS U) O C C ' VO 7,-0 O U N U ca a a3C O N N 'v= a) E. O a3 fl-� 0 a) (D 'E a n o m ro '� o N a; roa a)w• d__ C u)a C a1 +�-• C C y a) a V! a 0 i ° G ul N C O ° a) C a aY a) G O p N Q N ,0 a N > 10 N O (a S: N r= C a) 2' '• O a 0 (D a) U U N C o Z m p 2 a s R o 0 o ro CO C > NOa0 �o� 0) y- . aa)i .� a) m°E °c O a ca E > >, a) r +. E cn .S >, a) ° of Y n c��N.�oEroa 30� ai �`ro m Y�r �w �°�o9Eo �N0ro E ar3 a).0 N3 0o�LOQ�o s. -pa03 = a� 0 aa>io� m� a C 0 U a' a > v N O 0 O >O N L U a O) a N wmL p a ~ O a aJ 7 •._ ci3 C U O C_ y W O C a w >> O N a o a) Q E 3 'g 3 y m 'm o° a s a o ro E c (D0 r 3 a C� �> O 0- (a a) y O O U E 1— ro x O) C O. O m m ao- �aroia �' a�i��>, �' �N a -°o3°-m 'cacti a U) 'N > C N N N C N ro ro U) >. U cn W N ' N co (J C a y>> ro a a ' s oa�� o ��'a� (D Q� c 0�-Oc N CC7 co co 0) �>. Q a) C C U) ° c9 O N osliza�� o g°�= D aQg ° caaEa 5° E O } vr3 :... n� a m'3 .. s E E o 'y 9' - �o ° �0) a3 O oaN Q)y_ o—o�aQC: V y .S aN) - °mo °Ea o v aam aa Q 0 m O C O O `• C (n a N ° ro ro y 7 ro — a C yO p ro o fl �mC. a ax 3 mY m no> c C) a m m Q 4). O N 'Op E O C .,N.. L' O °- N :�. 3 i r0 'p0 U Y a) vi E 'w m 7 °. 00 3 0EC U� o� Q:a ��aro° o �� mo �o�m a o� O>,a)0)j- aNi U -C mHa O a OU i-° i -v ro acts c Eoa-= �'.0 � Q - O U C p O) -C O (a _U ERj Co a),U L,a--) ca U OC) Ua3 O m -.p- 0 as 0 O) 0 U C) C C S c a > = 3 ° E m— — fl 0) (D E t6 v a co C UL a) Rl L L N > N "d C + C > a) F" 2.2- 0 C -G > -1-- 0C15 S > 9 N (D a) Nal ro U) Q)0.2 EO a) Uo E Q 6 ro z O- x U O N N S .� cc°a O O -p f°a N N cAca ca iu °,.>., a) a-rq o co 0 a -O O 'O i=0 = ° N D_ M = O) O n 0-1 Q) E c s a) C a 'n c a s �0 E (D > as° m CO ID m (a ' O Q ° Y 00 is C ' E t>a 3 s oNicm Q amia) Q as O 0),o ' d a'.gv ° ONC LN Q.L a) - Cd I- In (N 17 ro N 0 N m — a a > N (a O O .E N OO 6 co a w � cos � ° 3 y C z i O Co N O Q' 4 -- J' O E Rf N ,N+ C p Y Y U 'O co � O a O N N O N U T = N (� CL O N C O N ro O) E co N N O o° c cza N (15 ro o 00 y f c�i 070 L aNco N N -.moi 0 m O N y O N 7 p� ro>(D w N CN -O O O N C Q N 9 C O >1 fl T NCO 6 0 U E C `Nro m o x-00 °M m M m > r > �' c m e m ° o > o U o c o o fl N E N O O y U co N c muia cm 70 O_ O (D W 0 O 'O a N ro O C N > O N C O) O O .O OC Nr Q 0) E U NN>Q N rN E a 7fl C N = N Qx'> C O' i U)Um R i *=ate NL, m-Fz N N 7 co 3c Na 9 2`o N 3 aE co caro ++ -O O O � (15co U N C N v �a o -0 n o o c Q -O Ncrj — E co c U ro m +� o O � N U - O N m ca O "O E 9 U tOn O C U C ::j O + C N 0 j - N •- E N m ° Q o c a iE N C OU Y U 'O L c O M m U 7 I- co a N O N N E 0 O - O = RS U E >• O N U _01 N E N C N (6 C N C N- ro •> E i0 U U N Q N N E N N > ro N 3J a O E o .0 o o > 7 w Q > L O O N N G O �% U N N C W .i6 �� Y CO N N O C Qs O o co >> S > > R C 7 U > C co U > d U 0 ¢> ¢ Ir � = c D a a o J' Q r (a O N 17 71 N C N 0 N NU 'O N co C '-O 0 y N C N U p 0 0 0 7 N 6 >N N N U 'Q (i N a C E Q 9> O '� a O Q 07 E C i 9 C N L 0 0 (.D N a QQ O ,O > 0 N N n QO O L O o �c c Yo 0� (D ro �a co Y U> a� X ° N (6 >1 'D E N O 1 C LA m O E 'O 0 c6 0 o Q N° 0 .ON— c a N c O Q� X c c co 0-0 c C ca ° o o° r-�� a N n° CL m m o x-00 0) C m E O) U U NUj C V C N L 0 L E° Q > C N � O� N O >' O QO C .z- N ..0. N CL C m -O X O N N 0 G O. O O N CO (D r- N O C •«C- -O '0 -O O E C N N E (0 .� a m° C m (a= � o m 0 N N 0 O O > Q O'O C N= C CT C 7 C (D (D E - E o C p N co o a 0 a 9 N U� _O Q 0 WO_ N EE N N N C ° U LC C •N E N N- O N E N m y0 N d -I N O E (O O 0 "-' N E N U L V N °> L N C .0 c -° E O y° i H N N O Q 0(D N o O O C N UC °' 00 C o 0 m ca ° NX9 0 mC: O N G �� a)0a) O °c, Ea°Za EoN ca 0 C C 0> Co N 0.00 N X O Q..'L"' N a - C E O N (D'N •N '� 0 Z 7 L 7 .N O_._ � C U C N a U C O .O 0 0 N c O Q L 0 0 N� > .L a a N N CO y0 0 N a Oa 00 N C C 'N N 0 0M Q U Q) _ N "O O c c YL ° a 7 C a, N CJ o 0 L C C oo I� 0° L0) 7 m °a N -Na C E U 9 N m (o0 C _O n a o 0 fn 3 m o ,� ° c 'a L° 'i -o a QNr 7 _� Q (6 C O N C E N NC (� ° O -O N m > i N O U) C N I E Gc wm C<� E y 0 �O a 9 >� E Q C U O 0 C O m E v °'L� LL C 0 +- 9 (D M O (0 Q ui E O C E a • 'No N C O 0 C: Q N c �O ° (D 0 E�00 OEN°;0C C O>C N> N +'C+ m o a C (0 a O �, N 0 i Q OU O a L 0 O Qv E 9 > N C N aY M N CO 9 cz N N N N _O 0 0 z N �CD N*->aE N cow° Q 0 N 0c C N L. O •— 09�o Z3 N a°Nb C 0 C .L-- CL U N •"' C• y0 1- C Q N 0 Q. C (D-5 0 si 2,5 N o O .Q (6 N C N C N U ._ C i OU U Y C Q Q O E Q U E a E v E i m y E 7 C i C o N Q a° (6 (6 N 6 ._ 0 0 'a r� 0 ° Ca ~ U N N N N- O N - N E N L Q O- 0 X N A C C C 71 U) c O fC V m W a O s V cu O i O.. Q 4 Al B U T a Z N m 'U m = .E c � � L E — 3 o 0 � C L CO N N � > ° o > ro 0 O > L O 0 Q c N E ro O N L N d U O N ?. D. 3 O E U N ro N r d L O N J 3 O = a �_ > > Fo- Z, ayNi o N a y 0 E 2 O N ? a N VV)i y ro E ro « S m OL 0 m O c O 3 >> N N N Q (O U U E N y a y N J � m N N O = a 'o o > YE Q 3 y o CL m E m a�i o c= a w m N ai co E a O E c U Z o� maci 0 mo ° — c0 N CN c Q d O rJ- roN a N N IYII cu m cg �� r O N -0 U O N L O ro .roC a m E a_ a a s °m N N m m Ui o >uXi c0 > >� o m y ca °. om 0� > mY a d O O o f o- m > m e E > 0 N ro ro E m m° y m O 0 c > o N c L N 0 o > Ol ` L f2. a O c N O> O W O N O = O q` -Q ro U c Q7 N w U a N Y Q N U N O N G N N J a 9 N N L -'X N C c Z co ca � T z CD C p U Vl In ' � = L N (cY m 7 tn N s Q E y ¢?r U6 T CO .% N ti % C Y co N Q 0 ¢ ¢ U i 0 o LL O c >a CV M d' Iri <o N O Q C7 Q 0 a a) C O) N O N c 0) o U tl C a — E a T a Q 0 0 N 9 E ca (D a) (n O O 0 m = E °-° °n �o °5 E o CL os E no An N a) (O .- ° U OQ m I CO aa)>) m L Q 3 75 (n Q fn mLo i U) N > U C pmL U) a Cf) n O n N aca U) � mTO O O J nY ) U (D L a7 U C E O Q C Qj o E C O o Q x (n Z RY ca — C n p N N E E U o o Q C E(a O O in o o o ca >. N O Q L L 4) C O 7 �N� roo .«� oU C '% o �C ° s 0)-(-- 0) is = 0- C o N o o a) a) E o p s 3 m� E 0. CL 3 N D 7 U N (a � (0 N p n p C C U = C E a) U _ j L "' N C +L- N a O a 0 .L-� C hoc > a n g 'c a a`)) N °a �o U) o E o ° Qc aL .3 O L o 0 n O a N o O a) a) C E (a C. a CC m ° U) a s Q 3 T O G cd 'U o N Q (D N (a o ..0 o > co a O (a (n Q N U C T co co 0 a a� o o o as o 0 poo CO e _ma (Z cm L .- a te(L) N° (a E a Q z 70 U =3O Y C C a a o Q) (n .-° Cin m L ma ° OECD C =� Cl _a Q Q(n 0 o �°- .�oC O O CL. a) 76 V) 50 p p n 3 O o U Q O -° N Nom, a) N O o .Q a U N U > L U U (n U Q _ O ° — C 3 az N Q a x C C 0) O 3 C E ° p x o L Q) CDL U) _ C = a) U 3 3 i g U CO N a) C (n a) ca r cz UZ3 O ,�, ff +% L W N N cu Q w +�+ O p, 4 O N ca .3 (D.� '� a U 0 O V U X O.. E Q E fa N a o w o N n a) a a a° a w aL,,, O C L C a) L °ate O m CZ aoi� ash a _ � a i _ ao �3 _�° >E aE _ -C d (Do cpm L 3 Q N N N .-ooc O O > � O� •� y E p p T N o L (n U) O ttl L C O) a)? p) cz 4) LL Y F- m O mF O a d a= C Q n>o + a-0 a)o U a ? yL--• N O O N U N d O L C U) 0.0 Y N P L C rn R O Q-° roa m O O N E i ca N O L N E °� E o d O o c oa O V coO A O N -0 O co j N +•• O "' E Y O n N a 0 ns T U Q Q) U N 7 a) = +� i m a O O O +-. rt+ O L y N a 7 O U m o a U) Q N N x x 7 Q C(D(D 0 Q E N 0 E o IR a� c U a C C O � O U NN c T 9 O O- O � U CO O � O U m "O N c(1) 0) O m � m _ > C Y I U C m C 2 U O Q N Q 6 E N N C U — U) N m —mai CL CL= 0 m Y Q .N x O m m E ,U -0O U m m -o O O_ C m m v a U C N U U U O CO X O � O Ol O C � C N � � C m O � Q 3 O U m U m � .S N C U 7 C -0 C •— m O ca U a O N L m ou(D WE 0) U N � N � 0 � 3 o i m cUa m C U U C U U O 'v Q m QY c U ami N cam �' U — Y U m E <a U C 'O O O O N > N N O o O E L E N L O' Q a) m m E E czE Y :3E U O O U U O — U m U C N U CO y✓ 12 m m U N Q Li c U CO m'm o w O O CD m U O E Q. E 2� m U --F- Em E O m Q CD>. c C+- Ym =4 YC N mcYa OC O r E C O a e e e ¢ H co a� c U a C C O � O U NN c T 9 O O- O � U CO O � O U m "O N c(1) 0) O m � m _ > C Y I U C m C 2 U O Q N Q 6 E N N C U — U) N m —mai CL CL= 0 m Y Q .N x O m m E ,U -0O U m m -o O O_ C m m v a U C N U U U O CO X O � O Ol O C � C N � � C m O � Q 3 O U m U m � .S N C U 7 C -0 C •— m O ca U a O N L m ou(D WE Li � 2 ro aj � c � m ro ro as c a5 a5 +N y C C O O N 7 N 6 0- a) E x C° E C¢7 )n o 'O a D c U ro N =o m c O O wQ CE .4-- a) N co i Q) ro Q a C ro c N Q) to c E N 0 0 Q- 0 c 0 co ro Q- 0) 0- w w of 0 U c O Mn O Q C: a) C 0 ro a) O) C: ro t U c co m C 0 O O 0 n. o N O C: c 0.2 roQ N 7 N N ro Q a) r N co 7 LO CO I -I co ro r r — cd o C E. as C O N N ca 0 (D c U E as z (D CC S ro U m a) o z c N �U ¢ a UU i N a) ro ro a) cc o m ro (D N EO U Y O Q a) Y rn 3 E �-- aro) aa) a) >. pro r d ° aiz _O a > T N T T 2 ro aj � c � m ro ro as c a5 a5 +N y C C O O N 7 N 6 0- a) E x C° E C¢7 )n o 'O a D c U ro N =o m c O O wQ CE .4-- a) N co i Q) ro Q a C ro c N Q) to c E N 0 0 Q- 0 c 0 co ro Q- 0) 0- w w of 0 U c O Mn O Q C: a) C 0 ro a) O) C: ro t U c co m C 0 O O 0 n. o N O C: c 0.2 roQ N 7 N N ro Q a) r N co 7 LO CO I -I co a r r — cd as c0 N C CL Z C-6 c U ca L a coz -Cco a c U cz L a z 06 z c z z c c N a) ro ro a) cc U U U 2 ro aj � c � m ro ro as c a5 a5 +N y C C O O N 7 N 6 0- a) E x C° E C¢7 )n o 'O a D c U ro N =o m c O O wQ CE .4-- a) N co i Q) ro Q a C ro c N Q) to c E N 0 0 Q- 0 c 0 co ro Q- 0) 0- w w of 0 U c O Mn O Q C: a) C 0 ro a) O) C: ro t U c co m C 0 O O 0 n. o N O C: c 0.2 roQ N 7 N N ro Q a) r N co 7 LO CO I -I co } K )IT / c ! c c / >\ \ \ \ \ \\ \ \ »E * % } K >\ »E * % ( \ ) } ) ) \/ 63 \{ \) { \& \ /© : : ) t = 2) 2) - 2 $2 C6 _ \/ 4_ �\ ) `76 `f `= / \} `f \ 2 ° \v 2: ` ^ $ »E ) \ /© : : ) t = 2) 2) _ �\ ) / \} \ \v \ J.j� 2 [ \( Mn - / �\� \\ ( \ ,S � ( )�\ `��) § \ ^g ,<_ a „ ) I \2\ { § : «�_=\_a&=i w \ az !2}± ®))72{ [,!§e }!�f{ ::j} ;; §!( // ± \ / )n ] a )c : o: M WE N N � U 0 O m o m m m m m `m .R fn N U Q U Q U Q U Q U Q N C U Q N C V Q U V Q m m m m m N m N m p m U) m w m m ❑ m p cn d m 'p Q -� N M V Q O L._ d c 0 d N U' C5 0 C7 C7 U' Y C7 C R O C7 N E= 'o J m m m �Q CL N L O d ro 2> 0 f- U Q U Q O Q Y OI N D! E O d E 21 0 N O N N O O N p N O m os ma. vo O O m N 00c0 N 16 N O d0' cm0 y 16 -0 « N N O O n m E m m 0 m2 U � co N E m 7 fow D CC > � a t0 oQo M 0 o M E m m E <o ` o CJ > >t0 Oa M v o of N N U C7 N d m0 T ® NN N N Y mNo LUdN � C . b c'w E o Uo�o m`! U N T C N Ol 9 m NN >Op zo NjO Cm- Tr/ YddONN O U CE ONN >. O E M WE N `c U 0 O 2 E j fn N > N R NO❑ O O N O S (% Y U a d C U1 m R N ._ N— T C d c 'p Q -� N M V Q O L._ d c 0 d N a 0 Cn o C N V. Y V ti N C R O N m Z N E= 'o J �Q CL N L O d J 2> 0 f- Y N O N p N m � N -0 « N N O O F V C N N U m 7 fow D CC > a t0 a O N M n D O c> > >t0 o U d m0 wr¢ mNo LUdN � - . T c'w E o Uo�o m`! oo dCzN O NJ m NN >Op zo NjO Cm- Tr/ YddONN O U CE ONN >. O Jdt0t6 N5 N c oJOOc 2O— ZcNN_O N�°d ZiONS O I c cZ N MC NN d Nm mONNCO92 0 dC O dfN0 d m0O CL M«d OS �`o(O-Qo > M WE N 70 W c N O U 7) O O) enc O 0 ` O 0-0 O O N 0 ID m 9 L U 0 O O Q OJ � m 0- v UI O p N O_ � C L F C P N Attachment D — Schedule of Pricing for Actuarial Services Maximum Fees $300 PD Pension 2017 FD Pension OPEB 2018 $320 Valuation 2019 Valuation Valuation (Audit Year) $340 /hr All Inclusive Fee for 2016 $ 7,500 $ 7,500 $ 2,500 (updated report) All Inclusive Fee for 2017 $ 7,750 $ 7,750 $ 2,500 (updated report) All Inclusive Fee for 2018 $ 8,000 $ 8,000 $ 6,000 (full report) All Inclusive Fee for 2019 $ 8,250 $ 8,250 $ 3,000 (updated report) All Inclusive Fee for 2020 $ 8,500 $ 8,500 $ 6,500* (full report) Hourly Rate to attend additional Board of Trustees Meetings 2016 $300 /hr 2017 $310 /hr 2018 $320 /hr 2019 $330 /hr 2020 $340 /hr The Police and Fire valuation fees include a projection modeler that allows the Village finance staff and Board members to review estimated financial results based on various inputs. It is our understanding that effective in FY2018, GASB 75 "kicks in" and, therefore, a full valuation is required every other year. That is why you see a valuation fee for 2020. F. f 2 I /\ \ \� �( [m 2 2/ �\ \ §� } \E E \\ (} 02 / 22 EE // Q 7/ JJ // a F. Attachment E — Vendor Questionnaire FIRM NAME The Howard E Nyhart Company Inc CONTACT PERSON Mike Zurek ADDRESS 707 Lake Cook Road Suite 250 Deerfield IL 60015 PHONE NUMBER 847-400-9601 / 800-428-7106 X 3700 WHEN ORGANIZED Started in 1943 / Incorporated in 09/55 WHERE ORGANIZED State of Indiana LICENSED IN ILLINOIS? NUMBER OF YEARS IN PRACTICE? HAS THE FIRM EVER REFUSED A CONTRACT? If yes, please submit details HAS THE FIRM EVER DEFAULTED ON A CONTRACT? If yes, please submit details 72 No WHERE IS YOUR NEAREST OFFICE TO OAK BROOK? Deerfield HOW MANY PEOPLE ARE EMPLOYED IN THE NEAREST OFFICE TO OAK BROOK? Page 7 Em V SON( 7 IN c c -Md O�NfOM I rim o vcvvv U N Lm ,U 1 T C z wva § §9`T zz / {/20/ Q m 6 - m maria .�Qa m v v � >, s w3 R E 3 _ cv vQc - o a oa$c'0 vas o E t m o "a `o a r¢n cm ` o mN`o m m- c Fav°°v on m EN a 8' 3-3Hc �E mavovEc as dx oA w o¢a wP3— A E w« m n o a v E` 'o «o = « n 'm °' E m •Ot c c m � m = a3�V 3 o3`c `o - w' O1mm o.E my - d _m coc0 'c0_ct� am v' m� n 'a==9 " nu._ ov cm 2.. a E n - v n -m ov m9 c = N ui I to N N CD m m m N E N.. � N p c cA O N O OZ5 O m C N m v } d> v E U R z O o zo ey i m pa \\� \\\d 12 6E2 Q m a a Lm 'rV L � a iaNnrvm n � a u�i a v N G n N O U � w e» w y� F» v [ v c v N � fL N m c - N ^ 6 w s m � r c C 9 O m ^ W c] N YI y m { w 3 3 c o m m N G QFWmO F O o `m a N N > > v d m V M > C N N V .0 = a m N c c o (/) M h a v V2 'Z- a C = E o. •- Um ry U V v U v m - O K o E mry w a w m iy _ v N C m q y N O q C U N Ci N Lm 'rV � a iaNnrvm n � a u�i [ G O U w e» w y� F» v v c v fL m c c 6 w s m J C 9 O m c o m a N G QFWmO F O v `m a N N > > v M > C N N V .0 N c (/) M \ 0 § £ 2 E 44 EL \\}\\ \<Ez< § £ 2 E L W 'c U V C O U d N T o ° •- m� v`mE °vw E'c 3m Zm mo °a rwvm nvv rnv v'-vm �« E wQ m`yc v cE�2• `0 sm i.a n as .E � °"v caynE m ° a mw v w vN p - o =Lq ag cm .zw •- my to n°mo £a v ocm c wa m 6�D v E '�« oF, maa c my 3 c 3m 3w m v ca 2 "Oo a n°o `m c a ma m o.=t i EaN �Qo N O C .- L w� E mv�a EEi° m E y.e -o ud m E c `EoD D - t a` m a m y m ° aE a a c- v" � `O L 9'v a>c � C Lbw `v2 aE -` - t « m E E E E c Cm od c um om m`"a mn a«oma _m Li lr - as aN'v^ m o,E v°acao m - n aNc n.. E c E m o m 90,3 o q n.� E EmEv mj «Eo`o warn wv'= a .v a_ a ° E E E r a m«n n�mE E D« a oi°«m'm'tiE a 2wN � aE ¢6U ¢NdC 0 U ILN U WONLIL THS U 4INr O ¢« 15 \15 2 / 2) )!;i§ !]!«!S \ 42 Em IDD Lm 1 T C r V m<co 0l7 C 1� N r N CrJ CI y3 (R fA f9 b3 O C) OrOr O N rN N a < O N W M M W f9 r O OOCO M1 m N N >d V o c No oNor a o a v H Ea v w d o a Na T� =y L N � a¢ C0Qb EmwO m IDD Lm 1 T C LLm ,U n I a m NpoON o mo mf m 7 ��Iw U1 N N N t7 vs »apN w e� w - was oon` m Qmm�n o h o 0 n0 OI m WPO C N td- nmu`ri ma o � m mc�ufOi � n e M V N N N N m O N P 'e3 i9 W Yi di W W fA M e3 W OIN O O O O O O qpm N O_ V °�N N_ fI N p N �a ¢ N . O 6110 O m C N °1 O N d' � CO11 n m > p N N (a0 h mN unl Q N a m Y N N n 4Nl a v � Z M �`y Vi b3 K fA 69 :A M M :9 Vi U � m a E u U Ed on'_EEr E->uvo u%`cca `o Q my 'm T ::« o N na m c Q :a Www o v5oz r dE a m o o C - ' v w N 6U Z F 2w L C= d yC7a ° n n o n n a voi � o � m m `o m uNpi uni n umi m � � EEw N � O � O O N N 9 m W m C C � d K � OI ♦- ` ` ` N C C d II9i+' � m t00 W� ONNN y `I bi E9 t9 H3 Yi M f9 69 W f9 > Q � y P m �_ m a m w r n m n C w c IeI �- ¢ 7 Q N N m lh l7 M M m M d d H M V3 fR fA M fR F9 fA b3 :A :A :A Y3 Hi Cil W f9 S d j D _ ,C m� dC 9 0 C � as zO 2 a mg N � ca V� 6U 0 0 0 0 0 0 0 o r v o m m N h 0 0 0 0 o r n r d 6 N 6 Y N 4 N r h Cl N m n I� l7 01 V C C C N N N YI N � N NN xi M W Y3 M MJ3 f9 si W W Vi M E9 n e e e e o e o m m e o 0 o U o 0 0 0 o a d, coni u�mi � m o r d N N h f9 fA K Yi W K Y3 Hi W Yi W 69 f9 di M :9 d% W OI (7 C V d' O N OI Q tl' h m n N N Cl C N (O M1 N 4' W N N CI N V N N m v 4 N O (O C N N m N O? N V w w e3 H W M e9 t9 e3 ei zs W e3 » W » M fA N 0 N r m 0 y' ON1 N 0 N N N V d' 0 F I M W M f 6 Y Y . M . 6 N t W W A d_ O' U� al a D1 LL `o a e 0 m 3 c L a av a i G m m a 0 °C 9 0 C � as zO 2 a mg N � ca V� 6U 0 0 0 0 0 0 0 o r v o m m N h 0 0 0 0 o r n r d 6 N 6 Y N 4 N r h Cl N m n I� l7 01 V C C C N N N YI N � N NN xi M W Y3 M MJ3 f9 si W W Vi M E9 n e e e e o e o m m e o 0 o U o 0 0 0 o a d, coni u�mi � m o r d N N h f9 fA K Yi W K Y3 Hi W Yi W 69 f9 di M :9 d% W OI (7 C V d' O N OI Q tl' h m n N N Cl C N (O M1 N 4' W N N CI N V N N m v 4 N O (O C N N m N O? N V w w e3 H W M e9 t9 e3 ei zs W e3 » W » M fA N 0 N r m 0 y' ON1 N 0 N N N V d' 0 F I M W M f 6 Y Y . M . 6 N t W W A ru Y N NO y CI m m c Z o m v m - odac r a me 46 A o a e W o ° C a O, mEc 0 00 O o 00 O Nq q a N m o a O QU i'C 00 � O OO O O O m rn m a r) U E"vN N N �Km a 4 m" mt4 L v Q UCN U `o `m v o`Ou 9 rnM N N N N N N y N N N N N N N m L 10 v N CI M Vi fP 4A Y3 bi E9 V3 bJ Vi Hi W W rn N 9 V T N mV n Q i C V N m Np UI m (NO r V V b O N 41 'L2 N hU U 0 d E a E 0. c y m � c �E' o � O 5 ° E w c a �n in vryi vri �o v v v`Oi v v� vhi m n 0 C � U e3 e3 w s9 M w e3 Ni e3 w Yi Yi es � ? N C U T C cam C m- F-w ONNL N J CM NAN mCy� C> C a N CI V Vl h N t7 4' N y Y1 O 0) L 7 }.Y }OND N a- c t0 m CI d' g O N N n C'� N b m N l0 h Y CI N Zf w F» t» Es » F9 fA w e3 t9 » Y3 H Nv m 0 0 o a m c a o c� N N d'S o 0 o ai m d u. V U R m CL 'c c o A O U 'i; d T c 0 0 0 0 o m n N ry ❑ m E 3 O o m aca � n n m m m n O U = w o m N 69 M HY M re Yi T a V c C � Q U o F- � C C w Q 9 O i�'i n a v vNi r m m m Ed C 0 b ,= a d u V Yl VI O D W 4 t7 o a K mM c cw o 0 0 0 0 �- C Any City, Town, or Place Required Pension Disclosure Under GASB #27 Annual Pension Cost and Net Pension Obligation Pension Plan rpt iH- rh Year Ending Year Ending Year Ending Year Ending Year Ending 12131110 12/31/11 12/31/12 12131/13 12131/14 Annual Required Contribution (ARC) $ 670,245 $ 804,221 $ 1,012,470 $ 1,181,427 $ 1,147,822 Interest on Net Pension Obligation (NPO) 70,831 89,473 107,369 146,252 196,235 Adjustment to ARC (743851 (93963) 1112.7571 (153.5911 (206084) Annual Pension Cost $ 666,691 $ 799,731 $ 1,007,082 $ 1,174,088 $ 1,137,973 Actual Contributions (418130) (561.114) (488648) (507636) (578390) Increase (decrease) in NPO $ 248,561 $ 238,617 $ 518,434 $ 666,452 $ 559,583 NPO Beginning of Year 944409 1.192.970 1,431,587 1,950,021 2616473 NPO End of Year $ 1,192,970 $ 1,431,587 $ 1,950,021 $ 2,616,473 $ 3,176,056 Interest rate 7.50% 7.50% 7.50% 7.50% 7.50% Amortization Period 30 30 30 30 30 rpt iH- rh Any City, Town, or Place Required Pension Disclosure Under GASB #27 Annual Pension Cost and Net Pension Obligation Advantage Plan Year Ending Year Ending Year Ending Year Ending Year Ending Year Ending 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Annual Required Contribution (ARC) It 79,681 $ 68,431 $ 51,900 $ 106,769 $ 82,456 Interest on Net Pension Obligation (NPO) 38,072 36,344 33,243 28,913 29,124 Adjustment to ARC L61,046 (58,275) (53,303) [46,361) f46,698) Annual Pension Cost $ 56,707 $ 44,500 $ 31,840 $ 89,321 $ 64,882 Actual Contributions (7974II) 85846 (89.566) !86.520) (79280) Increase (decrease) in NPO $ (23,041) $ (41,346) $ (57,726) $ 2,801 $ (14,398) NPO Beginning of Year 507,626 484`585 443,239 385.513 388314 NPO End of Year $ 484,585 $ 443,239 $ 385,513 $ 388,314 It 373,916 Interest rate 7.50% 7.50% 7.50% 7.50% 7.50% Amorfi,mflon Period 12 12 12 12 12 nyFhar Town,or Piace ,��,rsior,Plan Management Summary of 1/1/2015 Actuarial Valuation Table of Contents Certification Defined Benefit Plan Overview Participant Info rmatio n Annual Benefit Payments Summary of Plan Provisions Summary of Actuarial Assumptions and Methods 2014 Asset Reconciliation Annual Investment Return Rates Asset Class Allocation Funded Status Change in Funded Percentage Normal Cost Percentage Summary of Employer Contributions What's Ahead? April 9, 2095 2 3-5 6 7 8 9 10 11 12 13 14 15 16 17 nyhert 4 Certification nyhart This report was prepared for Any City, Town or Place to summarize the key results of the 2015 actuarial valuation relating to their pension plan and may not be appropriate for other uses. Please contact Nyhart prior to disclosing this report to any other party or relying on its content for any purpose other than the intended use. Except where indicated otherwise, the results included in this report are based on the same data, assumptions, methods, and plan provisions as the 1/1/2015 valuation. As a result, these sections of the 2015 funding report dated 3/27/2015 should be considered part of this report. This report has been prepared in accordance with generally accepted actuarial principles and practice. The consultants indicated below are compliant with the continuing education requirements of the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States. John Dowell FSA, EA, MAAA J. Malcolm Merrill ASA, EA My qty, Tovn or Place —2015 vol Results Defined Benefit Plan Overview: nyhart Yesterday and Today ➢ Late 20th Century • Defined benefit plans were small relative to the size of their sponsoring organizations Most of a plan's liability was associated with current employees • Capital markets were fairly stable Resulting contribution requirements were manageable ➢ Early 21st Century Defined benefit plans grew faster than their sponsoring organizations • A significant portion of a plan's liability is associated with former employees, i.e. retirees and terminated vested Capital markets have been quite volatile Resulting contribution requirements have been volatile and sometimes unsustainable Defined Benefit Plan Overview: nyhart Addressing the Fundamental Issues > Contributions + Investment Return= Benefits Paid + Plan Expenses Contributions — is the current funding strategy appropriate? Investment Return -� is the current investment mix resulting in a comfortable level of risk? • Benefits — is the current benefit design affordable and sustainable? ➢ Key Challenge — Retiree Liability • $28 million of the plan's liability (measured at 7.5%) is attributable to current retirees and deferred vesteds • Current low interest rates mean that an insurance company would charge something closer to $45 - $50 million to issue annuities covering the liability, instead of $28 million • If interest rates increase substantially, annuity prices will become more appealing; an annuity purchase should be strongly considered at that point Any City. Town, or Place -2015 Val Resulls Defined Benefit Plan Overview: nyhart Changes Since Prior Valuation ➢ Longevity and Mortality Assumption Research on US longevity shows that lifespans continue to increase. The most recent study completed by the SOA and released in 2014 indicate the prior mortality assumption (RP -2000) may no longer be reasonable. Results reflect an updated assumption for mortality based on the blue collar mortality table released in the SOA's study. • New table reflects lower mortality, and longer life expectancy ➢ Future Mortality Improvements Assumption The new mortality assumption currently includes historical mortality improvements by the Social Security Administration through 2015 built in. Each year going forward, we recommend applying an additional year of mortality improvements to the assumption. Alternatively, you could immediately build in all future years' improvements at once. Participant Information 250 nyhart 94 100 100 101 103 8 7 8 7 7 105 103 108 109 108 Average Age 38.2 38.7 38.3 Average Service 10.7 10.9 10.3 Average Pian $55,013 $55,601 $54,710 Compensation Active D6 Plan Payroll $5,611 $5,838 $5,635 ($000'.) Any City, Town, or Place -2015 Val Resulls Annual Benefit Payments 38.6 200 40.0 10.6 150 11.7 U $58,546 $60,029 $5,953 $6,382 $6,483 Z00 $2,000 C � }} 4} 50 j $1500 0 1/1/20 ❑ Retirees 93 B Deferred Vesteds 7 ®Actives 102 94 100 100 101 103 8 7 8 7 7 105 103 108 109 108 Average Age 38.2 38.7 38.3 Average Service 10.7 10.9 10.3 Average Pian $55,013 $55,601 $54,710 Compensation Active D6 Plan Payroll $5,611 $5,838 $5,635 ($000'.) Any City, Town, or Place -2015 Val Resulls Annual Benefit Payments 38.6 39.4 40.0 10.6 11.2 11.7 $55,121 $58,546 $60,029 $5,953 $6,382 $6,483 nyhart $3,000 q ; $2,500 !Y � $2,000 C � }} 4} j $1500 4 h31 $1000 s- $500 Al $0 2009 2010 2011 2012 2013 2014 ® Benefit Payments $2,293 $2,354 $2,519 $2,580 $2,589 $2,644 ■ Total Contributions (Er + Ee) $782 $779 $912 $841 $866 $975 Benefit Payments asa%of Contributions 293% 302% j 276% 307% 299% 271 irtio.,s Comment -Retiree benefit payments have srgnilicantly exeeed.d so,labetlons forso.on yeers. Summary of Plan Provisions Effective Date January 1, 1962 D Participation An employee who agrees to make required Employee Contributions shall become a participant upon date of hire > Normal Retirement Eligibility — age 50 with 5 years of Credited Service (age 55 if hired in 2010 or later) Benefit — (1) + (2) (1) %of Average Monthly Salary based on years of Credited Service: 5-9 yrs 12.5% 10-14 yrs 25.0% 15 yrs 37.5% 16 yrs 40.0% 17 yrs 42.5% 18 yrs 45.0°/ 19 yrs 47.5% 20 yrs 50.0% + 2% for each year above 20 yrs (max 12) (2) $1 x Credited Service (max 20) > Early Retirement After 5 years of Credited Service, participant may receive immediate monthly benefit, reduced 5% for each year commencement date precedes the Normal Retirement date ( My aty, Tomn, or Place -2015 Vel Recdo nyhart > Termination Benefit Normal Retirement benefit commencing at age 50 if termination after 5 years of Credited Service; if termination prior to 5 years, employee contribution balance is refunded > Average Monthly Salary Average of highest 36 consecutive calendar months of employment (60 consecutive calendar months if hired in 2010 or later) > Credited Service Years and months of employment during which employee makes required contributions, calculated to the nearest 1/12th > Employee Contributions In order to participate, an employee must contribute 6% of his compensation to the plan (5% prior to 10/1/2009, 4% prior to 1/1/2008) > Cost of Living Increase Effective 1/1/2009, cost -of -living increases have been suspended Summary of Actuarial Assumptions and Methods > Funding Interest Rate 7.50% (net of all expenses) > Annual Pay Increases 4,0% > Mortality Rates RP 2014 Blue Collar with Social Security mortality improvements projected from 2006 to 2015 > Expense Loading None > Actuarial Cost Method Annual Required Contribution - Entry Age Normal Regular Contribution - Aggregate > Asset Valuation Method Smoothed Value — investment gains/losses recognized over five years > Cost -of -Living Increases None > Form of Future Payments 50%- Life Annuity 20%- Life & 10 year Certain 30%- 50% Joint and Survivor nyhart > Retirement Rates 1955 UAW Tables for Men and Women 45-49 5.0% 5.0% 50-53 15.0% 5.0% 54 20.0% 10.0% 55 12.5% 60% 56-59 12.5% 12.5% 60+* 100% 100% *100% applies at age 55 and 32 years of credited service, if earlier > Withdrawal Rates T-3 from the Pension Actuary's Handbook 20 6.58% 30 4.83% 40 3.84% > Disability Rates 1955 UAW Tables for Men and Women 20 O.03% 0.04% 30 0.04% 0.06% 40 0.07% 0.10% F1 M 2014 Asset Reconciliation nyhart $45,000 $40,000 $35,000 a $30,000 to $25,000 0 L � $29,000 $15,000 $10,000 $5,000 $0 Market Value of Assets Plan Assets 1/1/2014 Benefits Paid EE ER Investment 12/31/2014 Contributions Contributions Return $37,959 ($2,644) $397 $578 $4,249 $40,539 $34,993 ($2,644) $397 $578 $3,957 $37,281 Ad aryV Comment —The 2014 return was 11.5%, resulting in a market value of assets that 1s approximately 81.5 million high., han projected under last year's valmilma, Gains and losses are being realized gradually over five years. Thus, the plan's funding requirements are based an the Actuarial Value ofAssets, not the Market Value ofAaasla. While this `smoothing"approach will not reduce long -farm costs, it x111 change the timing at va ach costs are accounted for. The the areticaf rafionale for this approach is that gains and losses will offset one another before they most be paid for. Any City, Tovm, or Place -2015 Val Results 10 Annual Investment Return Rates nyhart 30% 20% 10% 0% -10% -20% -30 2008 2009 2010 2011 2012 2013 2014 ■ Market Value of Assets -25.9% 19.4% 11.5% 5.0% 9.9% 17.3% 11.5% ■Actuarial Value of Assets 0.5% 0.0% 2.1% 1.4% 2.3% 12.5% 11.7% Actuary' Comment— Over the past seven plan years, the plan's average annual Investment return has been 5.9%. I Asset Class Allocation nyhart 5% 3% 2% 1% 1% 29% 32% 33% 20% 20% 66% 65% 65% 79% 79% IActuary's Comment— The plan asset mix should be considered when setting the expectedinvealmenlrelurn assse firn usedin determining the refers dion requirements. 41 Any CtyJoom, or Place -2015 Val aeswts 100% 80% Funded Status 60% 0 nyhart The Accrued Liability is the present value of benefits to 40% allocated to service earned m date. The future a from expected time of payment back to the valuation data at 7.5%. 20% $60,000 0% 1/1120' ❑Other 1% ®Fixed Income $50,000 36% ■Equities/Real Estate 63% nyhart 5% 3% 2% 1% 1% 29% 32% 33% 20% 20% 66% 65% 65% 79% 79% IActuary's Comment— The plan asset mix should be considered when setting the expectedinvealmenlrelurn assse firn usedin determining the refers dion requirements. 41 Any CtyJoom, or Place -2015 Val aeswts Funded Status nyhart The Accrued Liability is the present value of benefits to be paid in the future allocated to service earned m date. The future benefits are discounted from expected time of payment back to the valuation data at 7.5%. $60,000 - a $50,000 $40,000 a. $30,000 F $26,699 5=_ 69 $10,000 .� $o 1/1/201 1/1!201 1!1/201 1/11201 1/1/201 1/11201 0 1 2 3 4 5 ®Accrued Liability $37,687 $38,407 $39,990 $40,825 $42,333 $44,734 ■Market Value of Assets $30,741 $32,583 $32,566 $33,962 $37,959 $40,539 ®Actuarial Value of Assets $35,736 $34,875 $33,728 $32,732 $34,993 $37,281 j Funded Percent—MVA/AL 81,6% t 84.8% 81.4% 83.2% I 89.7% i 90.6% Funded Percent —AVA/AL 94.8% 90.8% 84.3% 80.2% 82.7% 83,3% Unfunded Accrued Liability(UAL) $1,951 $3,532 $6,262 $8,093 $7,340 $7,453 $000s UAL asa%of Payroll 35% 61% 111% 136% 115% 115% Actuary's Comment —The 2008 market decline hurt the plan's funded status significantly. However, on a market value bass (unsmoothed), the 111/2015 shmdall is the amallest it has been since 1/1/2008 Change in Funded Percentage nLjhal 100% 90% 80% J 70% 60% 50% 40% 30% 20% 10% 0% P yyv. ey ay cy c`' yyl ,�5 a�9 \a lac G0 G0C Ga Paa�o o `aQr y°fie �� - yya oaF9 Py P Acfae,'a Comment— The decrease in funded position due to additional accruals and changes in assumptions was slighlly more than offset by the commisfi ss, and assetreturns. My City, T... or Place -2015 vol Rescue 94 Normal Cost Percentage nyhart The Normal Cost Percentage Is the ratio site presentvalue of benefits earned by vom ing the current year divided by the active participant payroll. If the plan here always 100% funded, this veould represent the annual required contribution (to be paid by both the employer and employees, collectively). 20% 16% 12% 8% 4% 0% Actuary's Comment —The Normal Cast lotoom lags indicates the cost of benefits (paid for collectively by the employer and employees) earned m the current year as a percentage ofpsy. it will varybasad on the age o7acflve participants, assumedsalarygrodth during the year, and the Interest andmordeffyretes used to discount lot. values. 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 ■NC Percentage 12.9% 12.7% 12.7% 12.6% 12.6% 12.4% ®Contribution Percentage (ER + EE) 13.9% 15.6% 14.9% 14.6% 15.3% Normal Cost -$000s $723 $7421 $717 1 $762. $803 j $803 Contributions $660s j §779 I $912 $841 $866 $975 Actuary's Comment —The Normal Cast lotoom lags indicates the cost of benefits (paid for collectively by the employer and employees) earned m the current year as a percentage ofpsy. it will varybasad on the age o7acflve participants, assumedsalarygrodth during the year, and the Interest andmordeffyretes used to discount lot. values. Summary of Employer Contributions nyhart $1,800 $1,600 $1,400 $1,200 m $1,000 an r $800 $600 $400 $200 $0 a Annual Required Cont (GASB) ® Regular Contribution ■Actual Contribution $670 $804 $1,012 $1,181 $1,148 $1,149 $676 $869 $1,153 $1,409 $1,371 $1,438 $418 $561 $489 $508 $578 Actual Employer Cont ibution 75% 9.6% 8.7% 8.5% 9.1% as a%of Payroll Actuary's Comment - Contribution requirements increased in each year Fmm 2oT to 2013 last. the 2008 asset losses were gradually recognized. Requirements remained relatively stable bon12013 to 2015. Pleas. note the( the Actual Contributions shown above include only amounts staying in the Pension Plan. Amounts transferred to the Benefit Plan are excluded. For the past five years, actual contributions have fallen significantly short of the sctuarfally determined amounts. My City, Tam, or Place -2015 Val Results 16 What's Ahead? nyhart > Demographic Environment The increase in the retiree population relative to the size of the active population will continue to create cost pressure. > Economic Environment The most important factor in estimating future costs is the investment return achieved over the long haul. Extremely poor asset performance in 2008 will continue to put substantial pressure on cash requirements. Those losses can only be replaced by a continued stack market rebound or larger contributions. > Population Changes The addition of several new hires in recent years will very gradually provide some help to the plan's funded status. > Benefit / Contribution Changes Benefit changes for recent hires will help the plan's long-term funded status. Whether or not additional benefit changes will be needed depends primarily on asset performance. 47 / )\az•a! F 70 \ \)' CO ) �)� co _ 70 \ CO co _ \ D CO % \ \ \\ 0¥ s 0 - \ \ / 0 / ©- ( ° \ \\{ \ » -co / \ s\2 \ \ \ / - \ 0 \ 5 ® / \ !\/ } // /7 3 o 2 \/ J 9 7-92 / = z/=# ® / ){ )\ \ U)\ /. e` b%\ Cl. _ & 2 (D )— ' ©E \ /e% % // 70 \ Es k M / _ fo \ �� 0 D § C( \ ƒ Es {\ �� \\ \ \)A \ , \\ {) /\ \\ - /� / � .} :p,§ � t 5= ,• , /) (n _ ID \) § ~j) j/ T\ ,` \ ,I)\;- 44 - ,#!\\ {\ �� \\ \ \\ {) /\ \\ \\ 5= /\\ /) (n _ ID \) j/ Table of Contents te, or School District ial Valuation ig June 30, 2013 Certification Actuary's Notes Executive Summary GASB Disclosures Development of Annual Required Contribution (ARC) Development of Annual OPEB Cost and Net OPEB Obligation Schedule of Funding Progress Schedule of Employer Contributions Historical Annual OPEB Cost Reconciliation ofActuarlal Accrued Liability (AAL) Employer Contribution Cash Flow Projections Substantive Plan Provisions Actuarial Methods and Assumptions Summary of Plan Participants Appendix GASB Results by Group Comparison of Participant Demographic Information Glossary Decrements Exhibit Retirement Rates Exhibit Illustrations of GASB Calculations Definitions Prepared by: Nyhort 8415 Allison Pointe Blvd., Suite 300 Indianapolis, IN 46250 Ph: (317) 845-3500 www.nyhart.com Page 1 2 3 6 7 8 8 8 9 10 11 14 18 20 21 22 23 24 25 26 28 nyhart October 18, 2013 John Brown 123 Any Street Any State, AS 09876 This report summarizes the GASB actuarial valuation for the Any City, State, or Schaal District 2012/13 fiscal year. To the best of our knowledge, the report presents a fair position ofthe funded status of the plan in accordance with GASB Statement No. 45 (Accounting and Financial Reporting by Employers for Past - Employment Benefits Other Than Pensions). The valuation is also based upon our understanding of the plan provisions as summarized within the report. The Information presented herein is based on the Information furnished to us by the Plan Sponsor that has been reconciled and reviewed for reasonableness. We are not aware of any material inadequacy in employee census provided by the Plan Sponsor. We have not audited the information at the source, and therefore do not accept responsibility for the accuracy or the completeness of the data on which the information is based. The actuarial assumptions were selected by the Plan Sponsor with the concurrence of Nyhart. In our opinion, the actuarial assumptions are individually reasonable and in combination represent our estimate of anticipated experience ofthe Plan. All computations have been made in accordance with generally accepted actuarial principles and practice. To our knowledge, there have been no significant events prior to the current year's measurement date ur as of the date of this report that could rnaterially affect the results contained herein. Neither Nyhart nor any of its employees has any relationship with the plan or its sponsor that could impair or appear to impair the objectivity of this report Should you have any questions please do not hesitate to contact us. Randy Gomez, FSA MAAA Evi Laksme, ASA, MAAA Consulting Actuary Valuation Actuary SPa, S, Any city, State, or school lastria GASS V.IVe lan ActuaNs Nates For Fiscal Year Ending lune 30, 3033 There have been changes to the plan provisions since the last full valuation, which was for the fiscal year ending June 30, 2011. 1. Retiree health benefits eligibility requirements for ACSSD have changed to age SS with 5 years of service. In prior valuations, ACSSD employees are eligible for retiree health benefits once they are age 55 with 15 years ofservice. This change Increased the Client's liabilities. 2. Employees belonging in the following groups are not eligible for retiree health benefits in this years valuation: a. Technical/Professional (except for one grandfathered active employee) b. Central Division (except for one grandfathered active employee) c. Transportation UAW Local 1234 d. Executive Secretaries Additionally, employees belonging in the following groups remain ineligible for retiree health benefits as valued in prior valuations: a. Food Service Unit UAW Local 2345 b. Family Unit/COTTDA c. Assistants d. Substitutes This change reduced the Client's liabilities. Two actuarial assumptions have been updated since the last valuation: 1. Mortality table has been updated from (a) RP -2000 Combined Mortalitytable projected to 2010 using scale AA to (b) RP -2000 Combined Mortality Table fully generational using scale AA. This caused a slight increase in liabilities. 2. Medical trend rates have been resetto the prior valuation's levels. This caused an increase in liabilities. Any cty, state, or school oizumt GASB valuation Executive summary For Fiscal Year ending lune 30, 2013 Summary of Results Presented below is the summary of GASB 45 results for the fiscal year ending June 30, 2013 compared to the prior fiscal years as shown in the Client's Notes to Financial Statement. The active participants' number above may include active employees who currently have no health care coverage. Refer to Summary of Participants section for an accurate breakdown of active employees with and without coverage. 3l Page Any Ory, State, or school District GARL Valuation Below is a breakdown oftmal GASB 45 liabilities allocated to past, current, and future service as of July 1, 2012 compared to the prioryear M. a t Present Value of Future Benefits a the amount needed Actuarial Accrued liability $ 18,265,858 $ 20,147,995 Actuarial Value of Assets $ 0 $ 0 Unfunded Actuarial Accrued liability $ 18,265,858 $ 20,147,995 Funded Ratio 0.0% considered to be accrued or earned unfluly 1, 2012. This 0.0% Annual Required Contribution $ 1,937,441 $ 2,231,254 Annual OPER Cost $ 1,940,764 $ 2,235,862 Annual Employer Contribution $ 1,399,857 $ 1,129,844 Net OPER Obligation $ ne Ill 1,938,653 $ 3,044,671 Active Participants 509 498 Total Retiree Participants 118 91 The active participants' number above may include active employees who currently have no health care coverage. Refer to Summary of Participants section for an accurate breakdown of active employees with and without coverage. 3l Page Any Ory, State, or school District GARL Valuation Below is a breakdown oftmal GASB 45 liabilities allocated to past, current, and future service as of July 1, 2012 compared to the prioryear Normal Cost $ 1,108,987 $ 1,313,379 Future Normal Cost is the portion ofthe total liability amount that is attributed to future employee service by the current yeah valuatem by the actuarial cost method. Future Normal Cast $ 16,389,813 $ 14,431,458 M. a r Present Value of Future Benefits a the amount needed as ofJW, 1, 1012 to forlyl the Chun, time health care Present Value of Future Benefits $ 38,770,950 $ 35,892,832 subsidies for existing and future retirees and their Active Employees 35,046,630 31,533,790 d .... demeaesuming aliactuadai assumption are met. Retired Employees 3,724,320 4,359,042 Actuarial Accrued Liability is the portion of PVFB considered to be accrued or earned unfluly 1, 2012. This amount is. required dis,himan in the leaned Actuarial Accrued Liability $ 21,272,150 $ 20,147,995 Supplementary Information o loo. Active Employees 17,547,830 15,788,953 Normal Cost is the martian urge total liability amount that Retired Employees 3,724,320 4,359,042 Is attributed and accrued for wrrentyear's ache employee service by the actuarial cost method. Normal Cost $ 1,108,987 $ 1,313,379 Future Normal Cost is the portion ofthe total liability amount that is attributed to future employee service by the current yeah valuatem by the actuarial cost method. Future Normal Cast $ 16,389,813 $ 14,431,458 Exemtioe Summary Any city,state, or school District mort valuation Far Fiscal Year Ending June 30, 2013 Below is a breakdown of total GASS 45 Actuarial Accrued Liability (AAL) allocated to pre and post Medicare eligibility. The liability shown below includes explicit (if any) and implicit subsidies. Refer to the Substantive Plan Provisions section for complete information an the Plan Sponsor's GASB subsidies. Change in AAL t r $25.0 Active Pre -Medicare $ 13,251,484 $ 15,788,953 0 $20.0 Active Past Medlcare 0 0 Total Active AAL $ 13,251,484 $ 15,788,953 $15.0Retirees Pre-Medlcare $ .5,014,374 $ 4,359,042 $10.0Retirees [—"—I Pas[ Medicare o0Total RetireesAAL $ 5,014,374 $ 4,359,042$5.0 $0.0 Total AAL $ 19,265,858 $ 20,147,995 Pre -Medicare Cost Post -Medicare Cost ®July 1, 2011 Obdy 1, 2012 51 Pa ga Any saw Stats, or school Distrust GAsa valuation GASB Discos.... For ai ral Year Enacting June 30,2013 Development of Annual Required Contribution (ARC) Cash vs Accrual Accounting $2.5 0 $2.0 Actuarial Accrued Liability as of beginning of year $ 18,265,858 $ 20,147,995 $1.5 Actuarial Value of Assets as of beginning of year o 0 fS Unfunded Actuarial Accrued Liability(UAAL) $ 18,265,858 $ 20,147,995 $1.0 Covered payroll' $ 30,057,347 $ 30,065,183 UAALas a% of covered payroll 60.8% 67.0% $0.5 $0.0 a a 2011/12 2012/13 Normal cost as of beginning of year $ 1,108,987 $ 1,313,379 ©Pay-gocost MARC Amortization of the UAAL 745,024 821,792 Total normal cost and amortization payment $ 1,854,011 $ 2,135,171 Annual Required Contribution(ARC) Is the annual exparace recorded In Interest to end of year 83,430 96,083 accrual accounting. itr'eplaces1lthe cash basis method of —accounting recognition with an accrual method. The GASB 45 Total Annual Required Contribution (ARC) $ 1,937,441 $ 2,231,254 ARC is higher than the pay.cyou m, cost because it Includes recognition of employer costs expected to be paid in Tulare accounting periods. '2011/12 covered payroll is based an 2010/11 covered payroll($29,191,890)increased by the payrollgmv,th assumption(3.0%). Any City,State, or school District GASB Valuation GASB Disclosures For Fiscal Year Ending June 30, 2013 Development of Annual OPEB Cast and Net OPEB Obligation Annual employer contribution for pay -go costs are estimated for 2011/12 and 2012/13 e•:g, 20,147,995 $ Inv ABC as of end of year $ 1,937,441 $ 2,231,254 Interest on Net OPEB obligation(NOC) to end of year July 1, 2011 $ 62,899 87,239 MOO amortization adjustment to the ABC $ (59,576( (82,631) Annual OPER cost $ 1,940,764 $ 2,235,862 Annual employer contribution for pay go cost - (1,399,857) (1,129,844) Annum l employer contribution for pre -funding $ 0 0 Change in NCO $ 540,907 $ 1,106,018 MOO as of beginning of year 1,397,746 1,938,653 MOO as of end of year $ 1,938,653 $ 3,044,671 GASO Disclosures Summary of GASB 45 Financial Results Pay-as-you-go Cost is the expected total employer cash cost for the coming period based on all explicit and Implicit subsidies. It is also the amount recognized as expense an the Income Statement under pay-as-yougo accounting. Net OPER Obligation is the cumulative difference between the annual can cost and ancoma rcontributlons. This obligation will be created if axh cuntribunons are less than the current year expense under GASB 45 atonal rules. The net obligation is recorded as a Ilabillty on the employers balance sheet which will reduce the net fund balance. The value of implicit subsidies is considered az partof cash rontributlons for the current perlod. Other ash expendlWres that ..at certain conditions are also considered as contributions for GASB 45 purposes. 71 Pa g Any CR, Sam, or School Dicaits GASB Valuation For Fiscal Year Ending Fane 30, 2013 Presented below is the summary of GASB 45 results for the fiscal year ending June 30, 2013 and prior fiscal years as shown in the Client's Notes to Financial Statements. Schedule of Funding Progress July 1, 2012 $ 20,147,995 $ - $ 20,147,995 o.0% $ 30,065,183 67.0% July 1, 2011 $ 18,265,858 $ - $ 18,265,858 0.0% $ 30,051,347 60.8% July 1, 2010 $ 21,314,421 $ - $ 21,314,421 0.0% $ 28,895,517 73.8% Schedule of Employer Contributions lune30,2013 $ 1,129,844 $ 2,231,254 50.6% June30,2012 $ 1,399,857 $ 1,937,441 72.3% Jone30,2011 $ 1,790,604 $ 2,239,060 80.0% Historical Annual OPER Cost June 30, 2013 $ 2,235,862 50.5% $ 3,044,671 June 30, 2012 $ 1,940,764 72.1% $ 1,938,653 June 30, 2011 $ 2,239,080 80.0% $ 1,397,746 8l pa or Any City, state, nrxhool Dhtrui, GASB Valuation Reconciliation of Actuarial Accrued Liability For Fisal Year Ending June M. 2013 The Actuarial Accrued Liability (AAL) is expected to change on an annual basis as a result of expected and unexpected events. Under normal circumstances, it is generally expected to have a net increase each year. Ind aw is a list of the most common events affecting the AAL and whether they increase or decrease the liability. Expected Events • Increases in AAL due to additional benefit accruals as employees continue to earn service each year • Increases in AAL due to interest as the employees and retirees age • Decreases in AAL due to benefit payments Unexpected Events • Increases in AAL When actual premium rates increase more than expected, A liability decrease occurs when premium rates increase less than expected. • Increases in AAL when more new retirements occurthan expected orfewer terminations occurthan anticipated. Liability decreases occur when the opposite outcomes happen. • Increases or decreases in AAL depending on whether benefit provisions are improved or reduced. Actuarial Accrued Uability asofbeglnning ofyear $ 18,265,858 $ 20,147,995 Normal cost as of beginning of year $ 1,108,987 1,313,379 Expected benefit payments during the year $ (1,399,857) (1,129,844) Interest adjustment to end of yea r $ 840,718 940,620 Expected Actuarial Accrued iia bility as of end of year $ 18,815,706 $ 21,272,150 Actuarial(gain(/ loss due to experience $ 260,820 0 Actuarial (gain)/ loss due to provisions/ assumptions changes $ 1,071,469 21,272,150 ACtua l Actuarial Accrued Liability as of end of year $ 20,147,995 $ 20,147,995 e ACtuarlal ACCmed nobility IAAL) as of beginning ofyear was actuarially rolled -back fmm and of year AAL on a "no ga tud.,S` basis Reronciliation of AALshows what the actuary expects the actuarial accrued Ila bility to he at the beginning of the following fiscal year based on current assumptions and plan provisions. The expected and ofyear AAL will change as actual plan experience varies fmm assumptions. Generally, the AAL is expected to have a net Inmeate each year. 91 Pa ga Any City, State, or school District GASS Valuation For Fiscal Year ending lune 30.2013 The below projections show the actuarially estimated employer -paid contributions for retiree health benefits for the next ten years. Results are shown separately for current /future retirees and gross claim costs/retiree contributions. These projections include explicit and implicit subsidies. 2013 $ 812,792 $ 317,052 $ 1,129,844 „ $2.0 st 2014 $ 877,815 $ 342,416 $ 1,220,231 = 2015 $ 819,447 $ 655,031 $ 1,474,478 $1.5 2016 $ 694,796 $ 936,968 $ 1,631,764 $ 630,555 2017 $ 553,235 $ 1,149,708 $ 1,702,943 $1.0 2018 $ 474,623 $ 1,346,691 $ 1,821,314 1,321,314 2019 $ 322,640 $ 1,443,048 $ 1,765,688 $0.5 2020 $ 198,498 $ 1,527,345 $ 1,725,843 2020 2021 $ 154,338 $ 1,594,996 $ 1,749,334 $0.0 2022 $ 48,948 $ 1,646,421 $ 1,695,369 2,380,173 2013 $ 1,572,302 $ 442,458 $ 1,129,844 „ $3.0 re 2014 $ 1,698,086 $ 477,855 $ 1,220,231 - $2,5 2015 $ 2,050,989 $ 576,512 $ 1,474,477 $2.0 2016 $ 2,262,319 $ 630,555 $ 1,631,764 2017 $ 2,365,362 $ 662,419 $ 1,702,943 $1.5 2018 $ 2,544,906 $ 723,592 $ 1,321,314 $10 2019 $ 2,461,463 $ 695,775 $ 1,765,688 $0.5 2020 $ 2,417,747 $ 691,904 $ 1,725,843 2021 $ 2,460,305 $ 710,971 $ 1,749,334 $0.0 2022 $ 2,380,173 $ 684,803 $ 1,695,370 s Protections for future retirees do not take into canon, tutor, new hires Projected Employer Pay -go Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ■Current Retirees O future Retirees Projected Employer Pay -go Cost 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 11 Retiree Contributions ❑ Net Employer Paid Costs 10 1 Pa c, Any CitA stale, mschool D%niol AM. valuation For Fisnl Year Ending June 30, 2013 substantive Plan Pravisbna Eligibility Only full-time employees are eligible for retiree healthcare benefits. ACSSDA (Any City, State, or School District Association) employees are eligible for retiree healthcare benefits until Medicare eligibility once they meet the following requirements: 1. Hired on/before June 30, 2007: Age 50 with 5 years of service 2. Hired after June 30, 2007: Age 50 with 10 years of service ACSSDEA (Any City, State, or School District Education Association) employees are eligible for retiree health care benefits until Medicare eligibility upon reaching age 50 with 10 years of service. ACSSDEAA (Any City, State, or School District Educational Assistants Association) employees are eligible for retiree health care benefits until Medicare eligibility upon reaching age 55 with 5 years of service. Maintenance/Transportation employees are eligible for retiree health care benefits until Medicare eligibility upon reaching age 55 with 15 years of service. Central Division employees are eligible for retiree health care benefits until Medicare eligibility upon reaching age 50 with S years of service. All other bargaining units listed below are eligible for retiree healthcare benefits until Medicare eligibility upon reaching age SS with 10 years of service: 1. ACSSDEOPA(Any City, State, or School District Educational Office Personnel Association) 2, Custodians 3. Mid-level Manager Employees belonging in the following bargaining units are not eligible for retiree health benefits 1. Food Service Unit UAW Local 2345 2. Technical/Professional(except for one grandfathered active employee) 3. Transportation Unit UAW Local 1234 4. Executive Secretaries 5. Central Division employees (except for one grandfathered active employee) 6. Family Unit /COTTDA 7, Assistants 8. Substitutes 111 Page Any City, State, orS,hoal 0iandot GASB VaWation Far Fiscal Year Ending Jon- 30, 2013 sur antive Plan Pmvislons Spouse Benefit Retiree health care coverage continues to surviving spouse upon death of retirees, but Any City, State, or School District explicit subsidy ends upon death blithe retiree. Upon death of active employees, surviving spouse receives COBRA for 36 months. Retiree Cost Sharing Retirees are required to contribute the portion of premiums not covered by the Client's explicit subsidy. Explicit Subsidy The Any City, State, or School District contributes a percentage of single or 2 -person premiums according to the table below: Bargaining Unit District /. ACSSDAA and Central Division* 60% ACSSDEA, ACSSDEOPA, Technical Professional MId-level Manager, Executive Secretary Custodians 55% Maintenance/Tra nspo¢ation So% * For one Central Division employee only. All other Central Division employees are not eligible for retiree health benefits. ** For one Technical/Professional staff member only. All others in this group are not eligible for retiree health benefits. The Any City, State, or School District contributes 65% of single coverage premiums for ACSSDEAA employees who have at least 15 years of service at retirement. Otherwise the Client's contribution is 30%. There is no explicit subsidy for spouse of ACSSDEAA employees. Medical Benefit Same benefit options are available to retirees as active employees. The health plans are fully and partially experience rated. The 2013/14 monthly premiums by plan for pre -Medicare retirees effective July 1, 2013 are as shown below. 1 Person 2Persons ACSSD Care OOP IN $ 667.00 $1,334.00 ACSSD Care PPO $ 797.50 $ 1,595.00 ACSSD Care HMO $725.00 $1,450.00 Any City, slate, or school DiedRGA5a valuation For Fiscal Year Ending lune 30. 2013 Post -Medicare Liability There is no past -Medicare GASH liabilities as retirees paythe full cost of coverage. ACSSD Medical Subsidy Any City, State, or School District (ACSSD) medical subsidy eligibility: Notes section for complete information 1. Members with at least 20 years of service who are eligible to retire on Service, Early Service, or Ordinary health care trend rates and per capita costs Disability Retirement on or before July 1, 2008 and retire on/before July 1, 2009 will be eligible at age Measurement Date 60. Discount Rate 2. Members with at least 30 years ofservice who are eligible to retire on Service, Early Service, or Ordinary Payroll Growth Disability Retirement on or before July 1, 2008 and who retire on/before July 1, 2009 will be eligible at Inflation Rate ages 55 through S9. Cost Method Based on the eligibility requirements above all employees who are not retired as ofluly 1, 2009 are not eligible Amortization for ACSSD medical subsidy. Census Data Early Service Retirement eligibility is the earlier of (1) age 50 with 10 years of service or fill 20 years of service with 70 paints (age + service). Service Retirement eligibility is age 60 (no service requirement). The monthly ACSSD medical subsidy is as shown below: I Person 7 Person, Health Care Coverage Election Rate Pre -Medicare $375.56 $751.12 Post -Medicare $236.84 $473.68 ACSSD Subsidy Coordination The Any City,State, or Schaal District will collect: the ACSSD medical subsidy on behalf of the retiree and apply it to the retiree's portion ofthe premium rate first. Any remaining ACSSD subsidy amount will be used to reduce Spousal Coverage the Client's subsidy. Examples are as shown below. Premium Retiree District A. ACSSD Care HMO premium $673.00 Employer Funding Policy B. Retiree contribution (35% x A) $235.55 C. ACSSD subsidy (min of B and $275.56) ($235.55) D. Net retiree contribution $ 0.00 E. Client's explicit Subsidy (65%x A) $437.45 F. Remaining ACSSD Subsidy ($375.56—C) ($140.01) G. Net Client's explicit Subsidy $297.44 131Pa ge Any City, Story, or School District GA50trulUr oA Actuarial Methods and Assumptions For Fiscal Year Endinglane 30, 2013 The actuarial assumptions used in this report represent a reasonable long-term expectation of future OPEN outcomes. As national economic and Any City, State, or School District experience change overtime, the assumptions will be tested for ongoing reasonableness and, if necessary, updated. There are changes to the actuarial methods and assumptions since the last GASB valuation, which was for the fiscal year ending June 30, 2011. Refer to Actuary's Notes section for complete information on these changes. For the current year GASB valuation, we have also updated the per capita costs. We expect to update health care trend rates and per capita costs again in the next full GASB valuation, which will be forthe fiscal year ending June 30, 2015. Measurement Date lune 30, 2013 with results actuarially rolled -back to July 1, 2012 on a "no loss/no gain' basis. Discount Rate 4.5% Payroll Growth 3.0% per year Inflation Rate 10M per year Cost Method Projected Unit Credit with linear proration to decrement Amortization Level % of pay over thirty years based on an open group Census Data Census information was provided by Any City, State, or School District as of September 2013. We have reviewed it for reasonableness and no material modifications were made to the census data except as noted below: r Any retirees not found in prior year's census data are assumed to be active employees that recently retired and thus they are not eligible for ACSSD subsidy. Health Care Coverage Election Rate Active employees with current coverage: 90% Active employees with no coverage: 0% Inactive employees with current coverage: 100% Inactive employees with no coverage: 0% Spousal Coverage Spousal coverage for current retirees is based on actual data. 65% of male and S5% of female employees is assumed to be married at retirement. Husbands are assumed to be three years older than wives. Employer Funding Policy Pay-as-you-go cash basis 151 Page Any Cli Stale, arschool District GASB Valuation Far Fusal Year Ending lune 30,2013 Actuarial Methods and Assumptions Health Care Trend Rates Retiree Contributions Per Capita Costs Explicit Subsidy FYE Any clic Maim, ar Sahoal Distrix Gell Valuation FYE For fiscal Year Ending June 30, 2023 pduarial Methods and Assumptions 8.00% Mortality RP -2000 Combined Mortality Table fully generational using Scale AA Disability None 2021 Assumption used to project terminations (voluntary and involuntary) prior to meeting minimum retirement Turnover Rate eligibility for retiree health coverage. The rates represent the probability of termination in the next 12 months. 2022 The termination rates are based on standard actuarial termination table adjusted for the Client's historical 2017 termination experience. Sample annual turnover rates are shown below: 2023 Age Rate 2018 25 1.1% 2024+ 35 0.9% 2019 45 0.4% $13,800 55 0.0% active papulation. by developed based on the Client's actual retirement experience in 2008 and Retirement Rate Annual rates of retirement group 2009 are as shown below: Age ADMIN/ACSSDEA All other 50-54 2% 0% 55 20% 20% 56 15% 2% 57 2P% 2% 58-59 20% 5% 60 40% 50% 61 20% 20% 62-64 30% 30% 65 100% 100% 151 Page Any Cli Stale, arschool District GASB Valuation Far Fusal Year Ending lune 30,2013 Actuarial Methods and Assumptions Health Care Trend Rates Retiree Contributions Per Capita Costs Explicit Subsidy FYE Medical FYE Medical 2014 8.00% 2020 6.00% 2015 7.50% 2021 5.75% 2016 7,00% 2022 5.50% 2017 6.75% 2023 5.25% 2018 6.50% 2024+ 5.00% 2019 6.25% $13,800 $12,400 ACSSD subsidy is assumed to remain the same in the future. The Initial trend rate was based on a cambination of employer history, national trend surveys, and Professlonihudgment. The ultimate trend rate was..laded based an historical medlcal CPI information. Retiree contributions are assumed to increase according to health care trend rates. Annual per capita costs were calculated based on the Client's monthly premium rates effective on July 1, 2013 actuarially increased using health index factors and current enrollment. The costs are assumed to increase with health care trend rates. Annual per capita costs by plan are as shown below: The difference between (a) the premium rate and (b) the retiree contribution. Below is an example of the monthly explicit subsidies for a ACSSDEA future retiree who is enrolled In the ACSSD Care HMO plan. Premium Retiree Explicit Rate Contribution Subsidy A 8=35%xA C=A -8 Retiree $ 725.00 $ 253.75 $ 471.25 Spouse $ 725.00 $ 253.75 $ 471.25 ACSSD Care PPO ACSSD Care HMO Thepercapita codsmpremntthe test ofmvarege Age Male Female Male Female roraretiree-anN population. 50-54 $ 9,600 $ 10,300 $ 8,700 $ 9,400 Actuarial standards require the me-gnition of higher 55-59 $ 11,800 $ 11,500 $ 10,800 $ 10,500 inherent tests fora retired papulation versus an 60-64 $15,100 $13,600 $13,800 $12,400 active papulation. The difference between (a) the premium rate and (b) the retiree contribution. Below is an example of the monthly explicit subsidies for a ACSSDEA future retiree who is enrolled In the ACSSD Care HMO plan. Premium Retiree Explicit Rate Contribution Subsidy A 8=35%xA C=A -8 Retiree $ 725.00 $ 253.75 $ 471.25 Spouse $ 725.00 $ 253.75 $ 471.25 Any Cary,Slate, or fund of District GASS Valuation Aetn.6.1 Method, and Assumptions for Fisral Year Ending lune 30, 2013 Implicit Subsidy The difference between (a) the per capita cast and (b) the premium rate. Below is an example ofthe monthly implicit subsidies for a 60 — 64 male retiree with spouse of the same age enrolled in the ACSSD Care HMO plan. Per Capita Premium Implicit $1,200 Cost Rate Subsidy All employers that.Dllze premlum rates based on A a C=A -8 blended active/retiree claims experience will have an Retiree $ 1,150.00 $ 725.00 $425.00 implicit subsidy. There is in exception for plans .sine $ a true community -rated premlum rate. Spouse $1,033.33 $725.00 $308.33 $1,000 GASB Subsidy Breakdown Below is a breakdown ofthe GAS845 monthly total $ cost for a male 60— 64 retiree and his spouse ofthe GASB Subsidy Breakdown same age enrolled in the ACSSD Care HMO plan. Implicit subsidy Total monthly cost $ 1,150.00 $ 1,033.33 $600 $400 $200 $0 Retiree >pouse 0 Retiree contribution O Explicit subsidy rd implicit subsidy 171 page Any sky Stale, or Sthool 0iurict GASB Valoatlon Summary of Plan Psolaipan6 For Flscal Year Ending 3... 30,2013 ACSSD Care HMO 149 256 405 $1,200 12.4 $ Retiree Spouse 4 Retiree contribution $ 253.75 $ 253.75 $1,000 Explicit subsidy $ 471.25 $ 471.25 $800 Implicit subsidy $ 425.00 $ 308.33 Total actives with coverage Total monthly cost $ 1,150.00 $ 1,033.33 $600 $400 $200 $0 Retiree >pouse 0 Retiree contribution O Explicit subsidy rd implicit subsidy 171 page Any sky Stale, or Sthool 0iurict GASB Valoatlon Summary of Plan Psolaipan6 For Flscal Year Ending 3... 30,2013 ACSSD Care HMO 149 256 405 46.2 12.4 $ 22,772,264 ACSSD Care, Access 4 7 11 39.3 8.0 $ 602,266 AC55D Care PPO 28 54 82 53A 18.9 $ 5,099,562 Total actives with coverage 181 317 498 47.3 13.4 $ 28,474,092 Enrollment information above is for full-time employees who are eligible for retiree health care benefits only. Additionally, there are 55 active employees with coverage that are not eligible for retiree health benefits. The total salary for this group is $1,591,091. No information was provided on active employees without coverage. Active employees without coverage were not provided for the valuation, ACSSD One HMO 18 10 28 61.6 AC55D Care PPO 37 20 57 62.3 Medicare N/A N/A 6 60.4 Total retirees with coverage 55 30 91 61.9 Retirees' enrollment above is for pre -65 retirees only. There are no GASB liabilities for Medicare retirees as they pay the full cast of coverage. for the six retirees under the age of 6S noted as being enrolled in post -65 plan, the ACSSD Care HMO per capita costs are being applied to them. Any City, State, or SEhooI District GASB Valuation For Fisal Year Ending June 30, 2013 Summary of Plan Participants Active Age -Service Distribution Includes active employees eligible for retiree health benefits only. 19 [Page Any Cit, State, or School oiani. GASB Valuation 1, u ... I Ycar Fndma lune 30.2013 APPENDIX Any CH,Stara, or school District GA56 Valuation A, For Fiscal Year Ending June 3q 2013 GA58 Results by Group Below is the summary ofthe GASB results forfiscal year ending June 30, 2013 based an the Projected Unit Credit cost method with a discount rate of 4,5%. ACSSDAA $ 939,940 $ 107,479 $ 65,275 AC55DFA $ 14,868,138 $ 1,618,852 $ 1,708,945 ACS51) $ 1,738,856 $ 225,653 $ 714,111 Central Division Administration $ 0 $ 0 $ 26,559 AC55DEOPA $ 1,023,828 $ 105,427 $ 58,682 Custodian $ 964,510 $ 108,695 $ 360,087 Executive Secretaries $ 52,020 $ 2,218 $ 68,660 Maintenance/rransportation $ 279,726 $ 35,837 $ 106,260 Mid Level Managers $ 265,365 $ 24,394 $ -27,107 Technical Professional Staff $ 15,612 $ 2,689 $ 36,796 Transportation 1234 $ 0 $ 0 $ 63,723 Total $ 20,147,995 $ 2,231,254 $ 3,044,671 21 [Pa ga AnYCit, stat, orschool District GASB valuation Appendix ror Fsral Year Ending lune 30, 2013 Comparison of Participant Demographic Information The active participants' number below may include active employees who currently have no health care coverage. Refer to Summary of Participants section for an accurate breakdown of active employees with and without coverage. Active Participants 509 498 Retired Participants 118 56 Averages for Active Age 45.7 47.3 Service 12.2 ,13.4 Averages for Inactive Age 62.0 61.9 Glossary Decrements Exhibit Any Cry, Race, orschool District GA5a Whotion 231 Paha Any City, Star% onSchoal District ons. Waldo. Fnr ikral year Fudine lune 30.2013 The table below illustrates how actuarial assumptions can affect a long-term projection of future liabilities. Starting with 100 employees at age 35, the illustrated actuarial assumptions show that 44.430 employees out of the original 100 are expected to retire and could elect retiree health benefits at age 55. 35 100.000 6.276 0.000 6.276 46 55.938 2.085 0.000 2.085 36 93.724 5.677 0.000 5.677 47 53.853 1.866 0.000 1.866 37 88.047 5.136 0.000 5.136 48 51.987 1.656 0,000 1.656 38 82.911 4.648 0,000 4.648 49 50.331 1.452 0.000 1.452 39 78.262 4.209 0.000 4.209 50 48a80 1.253 0.000 1.253 40 74.053 3.814 0.000 3.814 51 47.627 1.060 0.000 1.060 41 70.239 1456 0.000 3.456 52 46.567 0.877 0.000 0.877 42 66.783 3.131 0.000 3.131 53 45.690 0.707 0.000 0.707 43 63.652 2.835 0.000 2.835 54 44.983 - 0.553 0.000 0.553 44 60.817 2.564 0.000 2.564 55 44.430 0.000 44.430 44.430 45 58.253 2.316 0.000 2.316 100 Be 60 40 20 0 Decrements Exhibit 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 @Actives Orctal Terminations Metal Retneraca s * The above rates are illustrative rates and are not used in our GASB calculations. Any eft nait, or school District Gass VaIUation Glonary For Fiscal Year Ending lune 30, 2013 Retirement Rates Exhibit The table below illustrates how actuarial assumptions can affect a long-term projection of future liabilities. The illustrated retirement rates show the number of employees who are assumed to retire annually based on 100 employees age 55 who are eligible for retiree healthcare coverage. The average age at retirement is 62.0. 55 100.000 5.07. 5.000 95.000 100 56 95.000 5.0% 4.750 90.250 80 57 90.250 5.0% 4.513 85.738 58 85.738 5.0% 4.287 81.451 60 59 81.451 5.0% 4.073 77.378 6o 77.378 5.0% 3.869 73.509 40 61 73.509 5.0% 3.675 69.834 0 62 69.834 30.0% 20.950 48.884 63 48.884 151 7.333 41.551 0 64 41.551 15.0% 6.233 35.318 65 35.318 100.0% 35.318 0.000 The above rates are illustrative rates and are not used in our GASB calculations. Illustration of GASB Calculations Retirement Rates Exhibit 55 56 57 58 59 60 61 62 63 64 65 MActives DTolal Retirements 25 1 Page A, out, 51ar, or 56 art Wotriet GM IS Valuation tar Fro.I asar Endive Airs 30.2013 The purpose of the illustration is to familiarize non -actuaries with the GASB 45 actuarial calculation process. 1. Facts 1. The employer provides subsidized retiree health coverage worth $100,000 to employees retiring at age 55 with 25 years of service. The employer funds for retiree health coverage an a pay-as-you-go basis. 2. Employee X is age 50 and has worked 20 years with the employer. 3. Retiree health subsidies are paid from the general fund assets which are expected to earn 4.5% per year an a long-term basis. 4. eased on Employee X's age and sex he has a 98.0% probability of living to age 55 and a 95.0% probability ofcontinuing to workto age 55. 11. Calculation of Present Value of Future Benefits Present Value of Future Benefits represents the cost to finance benefits payable in the future to current and future retirees and beneficiaries, discounted to reflect the expected effects of the time value (present value) of money and the probabilities of payment. A. $100,000 Projected benefit at retirement E. 80.2% Interest discount for five years =(1/1.045)' C. 98.0% Probability of living to retirement age D. 95.0% Probability of continuing to work to retirement age E. $74,666 Present value of projected retirement benefit measured at employee's current age =Ax ex C x D Any City, State, or Scheer DIsuid GASB valuation Illustration of GASB Calculations (continued) 111. Calculation of Antuaria l Accrued Liability Actuarlal Accrued Liability represents the portion of the Present Value of Future Benefits which has been accrued recognizing the employee's oast service with the employer. The Actuarial Accrued Liability is a required disclosure in the Required Supplementary Information section of the employer's financial statement. smoommommmm A. $74,666 Present value of projected retirement benefit measured at employee's current age 20 cmrentyearSmSvrvicewlth employer 25 Projected years of service with employer at retirement $59,733 Actuarial accrued liability measured at employee's currentage =Ax e/C IV. Calculation of Normal Cost Normal Cost represents the portion ofthe Present Value of Future Benefits allocated to the current year. A. $74,666 Present value of projected retirement benefit measured at employee's current age 25 Projected years ofselice withemployer at retirement $2,987 Normal cost measured at employee's currentage=A/e V. Calculation of Annual RequiredContribution Annual Required Contribution is the total expense forthe current year to be shown in the employer's income statement. A. $2,987 Normal Cost for the current year B. $3,509 30 -year amortization (level dollar method) of Unfunded Actuarial Accrued Liability using a 4.5% interest rate discount factor C. $292 IntwSStamjustmmt=4.5%x(A+e) D. $6,788 Annual Required Contribution=A+B+C 271 Page Any City,State, or Scheel District GA58 valuation For Fiscal Year Endive lune 30, 2013 Definitions EASE; 45 defines several unique terms not commonly employed in the funding of pension and retiree health plans. The definitions ofthe terms used in the GASB actuarial valuations are noted below. 1. Actuarial Accrued Liability—That portion, as determined by a particular Actuarial Cost Method, ofthe Actuarial Present Value of plan benefits and expenses which is not provided for by the future Normal Costs. 2. Actuarial Assumptions—Assumptions as to the occurrence of future events affecting health care costs, such as: mortality, withdrawal, disablement and retirement; changes in compensation and Government provided health care benefits; rates of investment earnings and asset appreciation or depreciation; procedures used to determine the Actuarial Value of Assets; characteristics of future entrants for Open Group Actuarial Cost Methods; and other relevant items. 3. Actuarial Cost Method — A procedure for determining the Actuarial Present Value of future benefits and expenses and for developing an actuarially equivalent allocation of such value to time periods, usually In the farm of a Normal Cost and an Actuarial Accrued Liability. 4. Actuarial Present Value—The value of an amount or series of amounts payable or receivable at various times, determined as of a given date by the application of a particular set of Actuarial Assumptions. For purposes ofthis standard, each such amount or series of amounts is: a) adjusted forthe probable financial effect of certain intervening events (such as changes in compensation levels, Social Security, marital status, etc.); b) multiplied bythe probability ofthe occurrence of an event (such as survival, death, disability, termination of employment, etc.) on which the payment is conditioned; and c) discounted according to an assumed rate (or rates) of return to reflect the time value of money. 5. Annual OPEB Cost—An accrual -basis measure of the periodic cost of an employer's participation in a defined benefit OPEB plan. 6. Annual Required Contribution (ARC) — The employer's periodic required contributions to a defined benefit OPEB plan, calculated in accordance with the parameters. 7. Explicit Subsidy—The difference between (a) the amounts required to be contributed by the retirees based on the premium rates and (b) actual cash contribution made bythe employer. 8. Funded Ratio— The actuarial value of assets expressed as a percentage of the actuarial accrued liability. 9. Healthcare Cost Trend Rate—The rate of change in the per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments. Any City, scare, or s,noof mHact6ASS valuation For Fi:calvear, Ending Jon. 3n. 2rw Definitions (continued) 10. Implicit Subsidy—In an experience -rated healthcare plan that includes both active employees and retirees with blended premium rates for all plan members,the difference between (a) the age-adjusted premiums approximating claim costsfor retirees in the group (which, because ofthe effect of age on claim costs, generally will be higher than the blended premium rates for all group members) and (b) the amounts required to be contributed by the retirees. 11. Net OPEB Obligation —The cumulative difference since the effective date of this Statement between annual OPER cost and the employer's contributions to the plan, includingthe OPEB liability (asset) at transition, if any, and excluding (a) short-term differences and (b) unpaid contributions that have been converted to OPEB-related debt. 12. Normal Cost—The portion ofthe Actuarial Present Value of plan benefits and expenses which is allocated to a valuation year bythe Actuarial Cost Method. 13. Pay-as-yoamgo —A method of financing a benefit plan under which the contributions to the plan are generally made at about the same time and in about the same amount as benefit payments and expenses becoming due. 14. Per Capita Costs —The current cost of providing postretirement health care benefits for one year at each age from the youngest age to the oldest age at which plan participants are expected to receive benefits underthe plan. 15. Present Value of Future Benefits—Total projected benefits include all benefits estimated to be payable to plan members (retirees and beneficiaries, terminated employees entitled to benefits but notyet receivingthem, and current active members) as a result of their service through the valuation date another expected future service. The actuarial present value of total projected benefits as ofthe valuation date is the present value ofthe cost to finance benefits payable in the future, discounted to reflect the expected effects of the time value (present value) of money and the probabilities of payment. Expressed anotherway, it is the amoumthat would haveto be invested an the valuation date so thatthe amount invested plus investment earnings will provide sufficient assets to paytotal projected benefits when due. 16. Select and Ultimate Rates—Actuarial assumptions that contemplate different ratesfor successive years. Instead of a single assumed rate with respect to, for example, the investment return assumption, the actuary may apply different rates for the early years of a projection and a single rate for all subsequent years. For example, if an actuary applies an assumed Investment return of 8% for year 20WO, then 7.5% for 20W1, and 7% for 20W2 and thereafter, then 8% and 7.5% select rates, and 7% is the ultimate rate. 17. Substantive Plan —The terms of an OPEB plan as understood by the employer(s) and plan members. 29 [Page 2012 Management Summary GASB No. 45 Retiree Healthcare for Sample!.Client P Benefit f • ! # ® Know your plan ® Actuarial Model ® Financial Impact ® Manage Risks nyl-hart Goal is fully fund annual OPEB Cost by (1) Paying PAYGO and (2) Building Trust asset No Changes Since Last Year Free to retirees if hired prior to 2009 5% of premium if hired after 2009 Subsidies continue to surviving spouses nyhart Early retirement: (a) 10 years before normal retirement and have + 25 YOS OR (b) Five years before normal retirement and have + 15 YOS Plus benefits provided for pre -retirement death and disability Pre -Medicare health Medicare health Dental Life insurance Part B reimbursement Cash in lieu of benefits I March 2011 696 436 155 89 1,376 Left with health coverage -30 29 (8.0%) 1 0 Left with no health coverage -10 -6 -7 -1 -24 Died with surviving spouse (7.4%) -9 15 -6 0 New hires and rehires 40 -2 $632 $584 38 Data corrections $104 1 5 (10.0°/x) 6 March 2012 696 449 168 83 1,396 Medical $698 $764 $672 (12.0%) Rx $352 $386 $355 (8.0%) Total $1,050 $1,150 $1,027 (10.7%) Medical $210 $230 $213 (7.4%) Rx $367 $402 $371 (7.7%) Total $577 $632 $584 (7.6%) Part B Reimb. $104 $100 $90 (10.0°/x) Health care trend 9.5% to 5.0% in nine years increases Lower trend for dental benefit 7.5%; how employer invests assets matters Interest earnings Must be consistent with investment policy When can you start to Eligibility requirements are negotiated retire Free for pre -2009 retirees and spouses What does it cost introduced contributions to post -2009 retirees Duration of benefits Lifetime coverage is most expensive What is present value of future benefits? $275M $261 M $272M How much has been actuarially earned? How well funded is the plan? How much has been recognized on the balance sheet? What is the current period's cash PAYGO? What is the total Trust contribution? $260M $245M $255M 38.7% 44.8% 47.4% ($0.6M) ($0.6M) ($0.6M) $9.5M paid by $10.9M paid $11.9M paid Trust by Trust by Trust $16.4M $14.OM $14.OM 2013 $ 10,398,128 2014. $ 10,826,987 2015 $11,179,769 2016 $ 11,517,124 2017 $ 11,884,964 2018 $ 12,273,130 2019 $ 12,576,332 2020 $ 12,769,249 2021 $ 12,919,919 2022 $ 12,951,672 $ 513,955 $ 10,912,083 $ 1,060,043 $ 11,887,030 $ 1,680,617 $ 12,860,386 $ 2,362,225 $1 3,879,349 $ 3,116,148 $ 15,001,112 $ 3,914,818 $16,187,948 $ 4,771,821 $ 17,348,153 $ 5,607,133 $ 18,376,382 $ 6,440,739 $ 19,360,658 $ 7,108,791 $ 20,060,463 Manage Risks ® Health care cost — Provider cost — Participant utilization . Regulation — Health care reform — GASB move towards corporate -style accounting recognition — Michigan caps ® Investment .. _._,._i:+., Manage Risks • Increasing retiree share of monthly premium Eliminating Medicare coverage or changing to • Medicare Advantage products • Changing to funded individual healthcare accounts ® Capping employer subsidy at fixed dollar amount Raising deductibles, copayments, coinsurance and • changing to high deductible plans e Same changes as active healthcare plans G1iminafino coverage for new hires Next Steps Release draft of FYE 2013 reports • Input from client on internal priorities What -if modeling for liabilities and assets — Short-term and long-term • Assumption review • Planning for next financial cycle EXHIBIT B Consultant Insurance Requirements Consultant shall maintain for the term of this Agreement, and for a period of twelve months after the services Is contracted for hereunder have been completed, insurance policies covering: 1. Workers Compensation and Employers Liability Insurance: Statutory limits = $500,000 per accident. 2. Comprehensive General Liability Insurance: $4,000,000 per occurrence combined single limit. 3. Comprehensive Automobile Liability Insurance: $1,000,000 combined single limit, any auto. 4. Professional Liability Insurance (errors and omissions): $2,000,000 per claim and in aggregate. 5. Umbrella or excess liability: an amount of $2 0occurence. If CONSULTANT carries 00.Comprehensive General Liability Insurance in 000 or greater, this requirement may be waived.6. Consultant will provide the Village with a certificate of insurance and additional insured endorsement showing the Village added to the General Liability Insurance as an additional insured. 7. Coverage shall not be suspended, voided, canceled, or reduced except after thirty (30) days prior written notice by certified mail has been given to the Village. If a standard Certificate of Insurance form is used with a cancellation clause, the words "endeavor to,, and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives" will be stricken or crossed out. EXHIBIT B Consultant Insurance Requirements Consultant shall maintain for the term of this Agreement, and for a period of twelve months after the services is contracted for hereunder have been completed, insurance policies covering: 1. Workers Compensation and Employers Liability Insurance: Statutory limits = $500,000 per accident. 2. Comprehensive General Liability Insurance: $4,000,000 per occurrence combined single limit. 3. Comprehensive Automobile Liability Insurance: $1,000,000 combined single limit, any auto. 4. Professional Liability Insurance (errors and omissions): $2,000,000 per claim and in aggregate. 5. Umbrella or excess liability: $1,000,000 per occurrence. If CONSULTANT carries Comprehensive General Liability Insurance in an amount of $2,000,000 or greater, this requirement may be waived. 6. Consultant will provide the Village with a certificate of insurance and additional insured endorsement showing the Village added to the General Liability Insurance as an additional insured. T Coverage shall not be suspended, voided, canceled, or reduced except after thirty (30) days prior written notice by certified mail has been given to the Village. If a standard Certificate of Insurance form is used with a cancellation clause, the words "endeavor to" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives" will be stricken or crossed out.