supplemental benefits issues and options n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Supplemental Benefits Issues and Options PowerPoint Presentation
Download Presentation
Supplemental Benefits Issues and Options

Loading in 2 Seconds...

play fullscreen
1 / 38

Supplemental Benefits Issues and Options - PowerPoint PPT Presentation


  • 140 Views
  • Uploaded on

P. Supplemental Benefits Issues and Options. December 15, 2005. Syllabus. Brief Overview Current Benefits Decisions from Prior Meetings Options Proposed Next Steps. Undistributed Earnings. AKA Excess Earnings Earnings available after: Crediting regular interest

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Supplemental Benefits Issues and Options' - lotus


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
syllabus
Syllabus
  • Brief Overview
  • Current Benefits
  • Decisions from Prior Meetings
  • Options Proposed
  • Next Steps
undistributed earnings
Undistributed Earnings
  • AKA Excess Earnings
    • Earnings available after:
      • Crediting regular interest
      • Filling Contingency Reserve
    • Calculated on smoothed basis
    • Limited expectations for near future
    • Approximately $72.5 million as of June 30, 2005
undistributed earnings1
Undistributed Earnings
  • Acceptable Uses under 37 Act
    • Save it (Bigger Contingency Reserve)
    • Pay for current benefits
      • Regular benefits
      • Settlement benefits
    • Pay for COL contributions
    • Create Additional Benefits
additional benefits
Additional Benefits
  • Generally temporary (as long as money lasts)
  • Reconfirmed by Retirement Board each year
  • Examples
    • Purchasing Power COLA
    • Dollars for Retiree Health
purchasing power cola
Purchasing Power COLA
  • Originally paid to retirees and beneficiaries who had lost 25% or more of purchasing power since beginning benefit payments
  • Retired on or before April 1, 1981
  • Approximately 575 retirees and beneficiaries
  • Board decided to freeze benefits at current level
current retiree health benefits
Current Retiree Health Benefits
  • Two Pieces
    • Settlement Section 9
    • Non-guaranteed benefits
settlement section 9
Settlement Section 9
  • $3 per year of service
  • Guaranteed
  • Additional amounts when additional undistributed earnings are available
non guaranteed benefits
Non-Guaranteed Benefits
  • If member prior to 1990:
    • $45 plus
    • $3.50 per year of service
  • If member after 1989:
    • $5 per year of service
  • Maximum: $150
current features
Current Features
  • Paid to all annuitants
  • Paid from the date of retirement
  • Paid for life of member
  • Same amount continues to spouse upon member’s death
preliminary tao decision
Preliminary TAO Decision
  • Continue paying TAO COLA using current methodology
tao options
TAO Options
  • Charge additional liability to County and Members
  • Pay for additional liability for both County and Members ($15 million)
  • Pay for additional liability for either County or Members ($7.5 million)
  • Pay for portion of additional liability
options for retiree health
Options for Retiree Health
  • Decrease payment to beneficiary not already receiving to 60% of retiree benefit
  • Split between Current Retirees and Future Retirees
current retirees
Current Retirees
  • Four potential cut off dates
    • June 30, 2006
    • June 30, 2007
    • June 30, 2008
    • June 30, 2009
calculations
Calculations
  • Based on data and assumptions from June 30, 2004 Actuarial Valuation of FCERA
  • All Dollars in Millions
future retirees
Future Retirees
  • To be eligible must either
    • Retire directly from County service
      • Service, disability or survivor
    • Have at least 20 years of service
future retirees1
Future Retirees
  • Two potential cut off dates
    • June 30, 2005
    • June 30, 1999