Disability Income Plan Principal Results of Actuarial Valuation as - PowerPoint PPT Presentation

Disability Income Plan Principal Results of Actuarial Valuation as of December 31, 2012 October 17, 2013 Board of Trustees Meeting Larry Langer and Mike Ribble

Active Members and Payroll $15,000,000,000 400,000 $12,000,000,000 320,000 Reported Compensation Active Members $9,000,000,000 240,000 $6,000,000,000 160,000 $3,000,000,000 80,000 $0 0 2008 2009 2010 2011 2012 Actives Reported Compensation Note: Includes active members of the Teachers’ and State Employees’ Retirement System and the Optional Retirement Program. 1 Disability Income Plan – December 31, 2012 Valuation Results

Disabled Members Receiving Benefits $100,000,000 10,000 Disabled Members $80,000,000 8,000 Annual Payment $60,000,000 6,000 $40,000,000 4,000 $20,000,000 2,000 $0 0 2008 2009 2010 2011 2012 Members Benefits 2 Disability Income Plan – December 31, 2012 Valuation Results

Assets $500,000,000 $500,000,000 Actuarial Value of Assets $400,000,000 $400,000,000 Market Value of Assets $300,000,000 $300,000,000 $200,000,000 $200,000,000 $100,000,000 $100,000,000 $0 $0 2008 2009 2010 2011 2012 Market Value Actuarial Value 3 Disability Income Plan – December 31, 2012 Valuation Results

Liabilities for Disabled Members Receiving Benefits and Actuarial Value of Assets $500,000,000 $500,000,000 Liabilities for Disabled Beneficiaries Actuarial Value of Assets $400,000,000 $400,000,000 $300,000,000 $300,000,000 $200,000,000 $200,000,000 $100,000,000 $100,000,000 $0 $0 2008 2009 2010 2011 2012 Liabilities Actuarial Value 4 Disability Income Plan – December 31, 2012 Valuation Results

Deficit / (Surplus) $30,000,000 $10,000,000 2008 2009 2010 2011 2012 -$10,000,000 Value -$30,000,000 -$50,000,000 -$70,000,000 -$90,000,000 Deficit/(Surplus) Contribution rate of 0.41% of payroll is sufficient to cover future disability payments after reflecting surplus. 5 Disability Income Plan – December 31, 2012 Valuation Results

Key Takeaways  Market value returns of 6.4% • Compared to 5.75% assumed • Higher Surplus than expected • Higher Funded Ratio than expected  Payroll remained flat • Compared to 3% assumed increase • Higher Surplus than expected • Higher Funded Ratio than expected  Funded Ratio increased from 79.4% (12/31/2011) to 86.0% (12/31/2012)  Annual Required Contribution Rate decreased from 0.43% of payroll to 0.41% of payroll 6 Disability Income Plan – December 31, 2012 Valuation Results

Questions? THANK YOU 7 Disability Income Plan – December 31, 2012 Valuation Results