HomeMy WebLinkAbout12a Attach 1 CalPERS July 2021 Annual Valuation Report - Classic Misc Plan
California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744
888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov
July 2021
Miscellaneous Plan of the Truckee Donner Public Utility District
(CalPERS ID: 1268699297)
Annual Valuation Report as of June 30, 2020
Dear Employer,
Attached to this letter, you will find the June 30, 2020 actuarial valuation report of your CalPERS pension plan.
Provided in this report is the determination of the minimum required employer contributions for fiscal
year 2022-23. In addition, the report contains important information regarding the current financial status of the
plan as well as projections and risk measures to aid in planning for the future.
Because this plan is in a risk pool, the following valuation report has been separated into two sections:
• Section 1 contains specific information for the plan including the development of the current and projected
employer contributions, and
• Section 2 contains the Risk Pool Actuarial Valuation appropriate to the plan as of June 30, 2020.
Section 2 can be found on the CalPERS website (calpers.ca.gov). From the home page, go to “Forms & Publications”
and select “View All”. In the search box, enter “Risk Pool” and from the results list download the Miscellaneous Risk
Pool Actuarial Valuation Report for June 30, 2020.
Your June 30, 2020 actuarial valuation report contains important actuarial information about your pension plan at
CalPERS. Your assigned CalPERS staff actuary, whose signature appears in the Actuarial Certification section on page
1, is available to discuss the report with you.
Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll
growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration
adopts these assumptions after considering the advice of CalPERS actuarial and investment teams and other
professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts
the contribution rates as needed. This valuation is based on an investment return assumption of 7.0% which was
adopted by the board in December 2016. Other assumptions used in this report are those recommended in the CalPERS
Experience Study and Review of Actuarial Assumptions report from December 2017.
Required Contribution
The exhibit below displays the minimum employer contributions for fiscal year 2022-23 along with estimates of the
required contributions for fiscal year 2023-24. Member contributions other than cost sharing (whether paid by the
employer or the employee) are in addition to the results shown below. The employer contributions in this report
do not reflect any cost sharing arrangements you may have with your employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
2022-23 13.35% $1,234,415
Projected Results
2023-24 13.4% $1,332,000
Miscellaneous Plan of the Truckee Donner Public Utility District
(CalPERS ID: 1268699297)
Annual Valuation Report as of June 30, 2020
Page 2
The actual investment return for fiscal year 2020-21 was not known at the time this report was prepared. The
projections above assume the investment return for that year would be 7.00%. To the extent the actual
investment return for fiscal year 2020-21 differs from 7.00%, the actual contribution requirements for
fiscal year 2023-24 will differ from those shown above. For additional details regarding the assumptions and
methods used for these projections please refer to the “Projected Employer Contributions” in the “Highlights and
Executive Summary” section. This section also contains projected required contributions through fiscal year 2027-28.
Changes from Previous Year’s Valuation
There are no significant changes in actuarial assumptions or policies in your 2020 actuarial valuation. Your annual
valuation report is an important tool for monitoring the health of your CalPERS pension plan. Your report contains
useful information about future required contributions and ways to control your plan’s funding progress. In addition to
your annual actuarial report my office has developed tools for employers to plan, project and protect the retirement
benefits of your employees. Pension Outlook is a tool to help plan and budget pension costs into the future with easy
to understand results and charts.
You will be able to view the projected funded status and required employer contributions for pension plans in
different potential scenarios for up to 30 years into the future — which will make budgeting more predictable. While
Pension Outlook can't predict the future, it can provide valuable planning information based on a variety of future
scenarios that you select.
Pension Outlook can help you answer specific questions about your plans, including:
• When is my plan’s funded status expected to increase?
• What happens to my required contributions in a down market?
• How does the discount rate assumption affect my contributions?
• What is the impact of making an additional discretionary payment to my plan?
To get started, visit our Pension Outlook page at www.calpers.ca.gov/page/employers/actuarial-resources/pension-
outlook-overview and take the steps to register online.
CalPERS will be completing an Asset Liability Management (ALM) review process in November 2021 that will review the
capital market assumptions and the strategic asset allocation and ascertain whether a change in the discount rate and
other economic assumptions is warranted. In addition, the Actuarial Office will be completing its Experience Study to
review the demographic experience within the pension system and make recommendations to modify future
assumptions where appropriate.
Furthermore, this valuation does not reflect any impacts from the COVID-19 pandemic on your pension plan. The
impact of COVID-19 on retirement plans is not yet known and CalPERS actuaries will continue to monitor the effects
and where necessary make future adjustments to actuarial assumptions.
Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix
A of the Section 2 report, “Actuarial Methods and Assumptions.”
Questions
We understand that you might have questions about these results, and your assigned CalPERS actuary whose signature
is on the valuation report is available to discuss. If you have other questions, you may call the Customer Contact Center
at (888)-CalPERS or (888-225-7377).
Sincerely,
SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary
Actuarial Valuation
as of June 30, 2020
for the
Miscellaneous Plan
of the
Truckee Donner Public Utility District
(CalPERS ID: 1268699297)
Required Contributions
for Fiscal Year
July 1, 2022 - June 30, 2023
Table of Contents
Section 1 – Plan Specific Information
Section 2 – Risk Pool Actuarial Valuation Information
Section 1
CALIFORNIA PUBLIC EM PLOYEES’ RETIREMENT SYSTEM
Plan Specific Information
for the
Miscellaneous Plan
of the
Truckee Donner Public Utility District
(CalPERS ID: 1268699297)
(Rate Plan ID: 5200)
Rate Plan belonging to the Miscellaneous Risk Pool
Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of Section 1 3
Required Employer Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Other Pooled Miscellaneous Risk Pool Rate Plans 7
Cost 8
Changes Since the Prior Year’s Valuation 9
Subsequent Events 9
Assets and Liabilities
Breakdown of Entry Age Accrued Liability 11
Allocation of Plan’s Share of Pool’s Experience/Assumption Change 11
Development of Plan’s Share of Pool’s Market Value of Assets 11
Schedule of Plan’s Amortization Bases 12
Amortization Schedule and Alternatives 14
Employer Contribution History 16
Funding History 16
Risk Analysis
Future Investment Return Scenarios 18
Discount Rate Sensitivity 19
Mortality Rate Sensitivity 19
Maturity Measures 20
Maturity Measures History 21
Hypothetical Termination Liability 22
Participant Data 23
List of Class 1 Benefit Provisions 23
Plan’s Major Benefit Options 24
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 1
Actuarial Certification
Section 1 of this report is based on the member and financial data contained in our records as of June 30, 2020
which was provided by your agency and the benefit provisions under your contract with CalPERS. Section 2 of
this report is based on the member and financial data as of June 30, 2020 provided by employers participating
in the Miscellaneous Risk Pool to which the plan belongs and benefit provisions under the CalPERS contracts for
those agencies.
As set forth in Section 2 of this report, the pool actuaries have certified that, in their opinion, the valuation of the
risk pool containing your Miscellaneous Plan has been performed in accordance with generally accepted actuarial
principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the
assumptions and methods are internally consistent and reasonable for the risk pool as of the date of this valuation
and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public
Employees’ Retirement Law.
Having relied upon the information set forth in Section 2 of this report and based on the census and benefit
provision information for the plan, it is my opinion as the plan actuary that the Unfunded Accrued Liability
amortization bases as of June 30, 2020 and employer contribution as of July 1, 2022 have been properly and
accurately determined in accordance with the principles and standards stated above.
The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of
Actuarial Opinion in the United States with regard to pensions.
ALEX GRUNDER, ASA, MAAA
Associate Pension Actuary, CalPERS
Highlights and Executive Summary
• Introduction
• Purpose of Section 1
• Required Employer Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Other Pooled Miscellaneous Risk Pool Rate Plans
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 3
Introduction
This report presents the results of the June 30, 2020 actuarial valuation of the Miscellaneous Plan of the Truckee
Donner Public Utility District of the California Public Employees’ Retirement System (CalPERS). This actuarial
valuation sets the required employer contributions for fiscal year 2022-23.
Purpose of Section 1
This Section 1 report for the Miscellaneous Plan of the Truckee Donner Public Utility District of CalPERS was
prepared by the plan actuary in order to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2020;
• Determine the minimum required employer contribution for this plan for the fiscal year July 1, 2022
through June 30, 2023; and
• Provide actuarial information as of June 30, 2020 to the CalPERS Board of Administration and other
interested parties.
The pension funding information presented in this report should not be used in financial reports subject to
Governmental Accounting Standards Board (GASB) Statement No. 68 for a Cost Sharing Employer Defined
Benefit Pension Plan. A separate accounting valuation report for such purposes is available on the CalPERS
website.
The measurements shown in this actuarial valuation may not be applicable for other purposes. The employer
should contact their actuary before disseminating any portion of this report for any reason that is not explicitly
described above.
Future actuarial measurements may differ significantly from the current measurements presented in this report
due to such factors as the following: plan experience differing from that anticipated by the economic or
demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; and
changes in plan provisions or applicable law.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the recommendations of Actuarial Standards
of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure
Elements document:
• A “Scenario Test,” projecting future results under different investment income returns.
• A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates
of 6.0% and 8.0%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality
are 10% lower or 10% higher than our current post- retirement mortality assumptions adopted in
2017.
• Pension Plan maturity measures quantifying the risks the employer bears.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 4
Required Employer Contributions
Fiscal Year
Required Employer Contributions 2022-23
Employer Normal Cost Rate 13.35%
Plus
Required Payment on Amortization Bases1 $1,234,415
Paid either as
1) Monthly Payment $102,867.92
Or
2) Annual Prepayment Option* $1,193,354
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate
(expressed as a percentage of payroll and paid as payroll is reported) plus the Employer Unfunded Accrued
Liability (UAL) Contribution Amount (billed monthly (1) or prepaid annually (2) in dollars).
* Only the UAL portion of the employer contribution can be prepaid (which must be received in full no
later than July 31).
Fiscal Year Fiscal Year
2021-22 2022-23
Development of Normal Cost as a Percentage of Payroll
Base Total Normal Cost for Formula 21.31% 21.31%
Surcharge for Class 1 Benefits2
None 0.00% 0.00%
Phase out of Normal Cost Difference3 0.00% 0.00%
Plan’s Total Normal Cost 21.31% 21.31%
Formula's Expected Employee Contribution Rate 7.96% 7.96%
Employer Normal Cost Rate 13.35% 13.35%
1 The required payment on amortization bases does not take into account any additional discretionary payment made after
April 30, 2021.
2 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges for each benefit.
3 The normal cost change is phased out over a five-year period in accordance with the CalPERS contribution allocation policy.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 5
Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan
for the 2022-23 fiscal year is $1,234,415. CalPERS allows employers to make additional discretionary payments
(ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required
contributions and can result in significant long-term savings. Employers can also use ADPs to stabilize annual
contributions as a fixed dollar amount, percent of payroll or percent of revenue.
Provided below are select ADP options for consideration. Making such an ADP during fiscal year 2022-23 does
not require an ADP be made in any future year, nor does it change the remaining amortization period of any
portion of unfunded liability. For information on permanent changes to amortization periods, see the
“Amortization Schedule and Alternatives” section of the report.
If you are considering making an ADP, please contact your actuary for additional information.
Minimum Required Employer Contribution for Fiscal Year 2022-23
Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$684,957 $1,234,415 $0 $1,234,415 $1,919,372
Alternative Fiscal Year 2022-23 Employer Contributions for Greater UAL Reduction
Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
20 years $684,957 $1,234,415 $182,239 $1,416,654 $2,101,611
15 years $684,957 $1,234,415 $413,389 $1,647,804 $2,332,761
10 years $684,957 $1,234,415 $902,394 $2,136,809 $2,821,766
5 years $684,957 $1,234,415 $2,425,910 $3,660,325 $4,345,282
1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal
year would have to be less or more than the amount shown to have the same effect on the UAL amortization.
Note that the calculations above are based on the projected Unfunded Accrued Liability as of June 30, 2022 as
determined in the June 30, 2020 actuarial valuation. New unfunded liabilities can emerge in future years due to
assumption or method changes, changes in plan provisions and actuarial experience different than assumed.
Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100%
funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge
significantly from projections over a period of several years.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 6
Plan’s Funded Status
June 30, 2019 June 30, 2020
1. Present Value of Projected Benefits (PVB) $62,104,247 $64,652,041
2. Entry Age Accrued Liability (AL) 54,693,071 57,696,134
3. Plan’s Market Value of Assets (MVA) 40,669,953 42,290,224
4. Unfunded Accrued Liability (UAL) [(2) - (3)] 14,023,118 15,405,910
5. Funded Ratio [(3) / (2)] 74.4% 73.3%
This measure of funded status is an assessment of the need for future employer contributions based on the
selected actuarial cost method used to fund the plan. The UAL is the present value of future employer
contributions for service that has already been earned and is in addition to future normal cost contributions for
active members. For a measure of funded status that is appr opriate for assessing the sufficiency of plan assets
to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis”
section.
Projected Employer Contributions
The table below shows the required and projected employer contributions (before cost sharing) for the next six
fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes
to assumptions, contributions, benefits, or funding will occur during the projection period. Actual contribution
rates during this projection period could be significantly higher or lower than the projection shown below.
Required
Contribution
Projected Future Employer Contributions
(Assumes 7.00% Return for Fiscal Year 2020-21)
Fiscal Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28
Rate Plan 5200 Results
Normal Cost % 13.35% 13.4% 13.4% 13.4% 13.4% 13.4%
UAL Payment $1,234,415 $1,332,000 $1,435,000 $1,501,000 $1,562,000 $1,600,000
For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please
see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A of the
Section 2 Report. This method phases in the impact of the change in UAL over a 5-year period in order to reduce
employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required
employer contributions in any one year are less likely. However, required contributions can change gradually
and significantly over the next five years. In years when there is a large increase in UAL, the relatively small
amortization payments during the ramp up period could result in a funded ratio that is projected to decrease
initially while the contribution impact of the increase in the UAL is phased in.
For projected contributions under alternate investment return scenarios, please see the “Future Investment
Return Scenarios” in the “Risk Analysis” section.
Our online pension plan modeling and projection tool, Pension Outlook, is available in the Employers section of
the CalPERS website. Pension Outlook is a tool to help plan and budget pension costs into the future with results
and charts that are easy to understand.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 7
Other Pooled Miscellaneous Risk Pool Rate Plans
All of the results presented in this Section 1 report, except those shown below, correspond to rate plan 5200.
In many cases, employers have additional rate plans within the same risk pool. For cost analysis and budgeting
it is useful to consider contributions for these rate plans as a whole rather than individually. The estimated
contribution amounts and rates for all of the employer’s rate plans in the Miscellaneous Risk Pool are shown
below and assume that the payroll for each rate plan will grow according to the overall payroll growth assumption
of 2.75% per year for three years.
Fiscal Year Fiscal Year
2021-22 2022-23
Estimated Combined Employer Contributions for all Pooled Miscellaneous Rate Plans
Projected Payroll for the Contribution Year $7,871,107 $7,939,696
Estimated Employer Normal Cost $899,328 $894,784
Required Payment on Amortization Bases $1,086,728 $1,251,486
Estimated Total Employer Contributions $1,986,056 $2,146,270
Estimated Total Employer Contribution Rate (illustrative only) 25.23% 27.03%
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 8
Cost
Actuarial Determination of Pension Plan Cost
Contributions to fund the pension plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll
• Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount
For fiscal years prior to 2016-17, the Amortization of UAL component was expressed as a percentage of total
active payroll. Starting with fiscal year 2016-17, the Amortization of UAL component was expressed as a dollar
amount and invoiced on a monthly basis. There continues to be an option to prepay this amount during July of
each fiscal year.
The Normal Cost component is expressed as a percentage of active payroll with employer and employee
contributions payable as part of the regular payroll reporting process.
The determination of both components requires complex actuarial calculations. The calculations are based on a
set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates,
disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates)
These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.
We recognize that all assumptions will not be realized in any given year. For example, the investment earnings
at CalPERS have averaged 5.5% over the 20 years ending June 30, 2020, yet individual fiscal year returns have
ranged from -23.6% to +20.7%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth
experience studies every four years, with the most recent experience study completed in 2017.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 9
Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first
annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment
are generally included in the first valuation that is prepared after the amendment becomes effective, even if the
valuation date is prior to the effective date of the amendment.
This valuation generally reflects plan changes by amendments effective before the date of the report. Please
refer to the “Plan’s Major Benefit Options” and Appendix B of the Section 2 Report for a summary of the plan
provisions used in this valuation.
Actuarial Methods and Assumptions
The are no significant changes to the actuarial methods or assumptions for the 2020 actuarial valuation.
Subsequent Events
The contribution requirements determined in this actuarial valuation report are based on demographic and
financial information as of June 30, 2020. Changes in the value of assets subsequent to that date are not
reflected. Investment returns below the assumed rate of return will increase future required contributions while
investment returns above the assumed rate of return will decrease future required contributions.
CalPERS will be completing an Asset Liability Management (ALM) process in November 2021 that will review the
capital market assumptions and the strategic asset allocation and ascertain whether a change in the discount
rate and other economic assumptions is warranted. As part of the ALM process the Actuarial Office will be
completing an Experience Study to review the demographic experience of the retirement system and make
recommendations to modify future assumptions where appropriate.
Furthermore, this valuation does not reflect any impacts from the COVID-19 pandemic on your pension plan.
The impact of COVID-19 on retirement plans is not yet known and CalPERS actuaries will continue to monitor
the effects and where necessary make future adjustments to actuarial assumptions.
The projected employer contributions on Page 6 are calculated under the assumption that the discount rate
remains at 7.0% going forward and that the realized rate of return on assets for fiscal year 2020-21 is 7.0%.
This actuarial valuation report reflects statutory changes, regulatory changes and CalPERS Board actions through
January 2021. Any subsequent changes or actions are not reflected.
Assets and Liabilities
• Breakdown of Entry Age Accrued Liability
• Allocation of Plan’s Share of Pool’s Experience/Assumption Change
• Development of Plan’s Share of Pool’s Market Value of Assets
• Schedule of Plan’s Amortization Bases
• Amortization Schedule and Alternatives
• Employer Contribution History
• Funding History
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 11
Breakdown of Entry Age Accrued Liability
Active Members $20,371,772
Transferred Members 711,897
Terminated Members 885,764
Members and Beneficiaries Receiving Payments 35,726,701
Total $57,696,134
Allocation of Plan’s Share of Pool’s
Experience/Assumption Change
It is the policy of CalPERS to ensure equity within the risk pools by allocating the pool’s experience
gains/losses and assumption changes in a manner that treats each employer equitably and maintains benefit
security for the members of the System while minimizing substantial variations in employer contributions.
The Pool’s experience gains/losses and impact of assumption/method changes is allocated to the plan as
follows:
1. Plan’s Accrued Liability $57,696,134
2. Projected UAL balance at 6/30/2020 14,226,207
3. Pool’s Accrued Liability1 19,314,480,060
4. Sum of Pool’s Individual Plan UAL Balances at 6/30/20201 4,306,566,797
5. Pool’s 2019/20 Investment (Gain)/Loss1 344,968,792
6. Pool’s 2019/20 Non-Investment (Gain)/Loss1 60,428,629
7. Plan’s Share of Pool’s Investment (Gain)/Loss: [(1) - (2)] ÷ [(3) - (4)] × (5) 999,191
8. Plan’s Share of Pool’s Non-Investment (Gain)/Loss: (1) ÷ (3) × (6) 180,512
9. Plan’s New (Gain)/Loss as of 6/30/2020: (7) + (8) 1,179,703
1 Does not include plans that transferred to Pool on the valuation date.
Development of the Plan’s Share of Pool’s Market
Value of Assets
10. Plan’s UAL: (2) + (9) $15,405,910
11. Plan’s Share of Pool’s MVA: (1) - (10) $42,290,224
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 12
Schedule of Plan’s Amortization Bases
Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year.
• The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2020.
• The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: fiscal year 2022-23.
This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provi de public agencies with
their required employer contribution well in advance of the start of the fiscal year.
The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuat ion date to the first
day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal
year and adjusting for interest. The expected payment for the first fiscal year is determined by the actuarial valuation two years ago and the contribution for the second
year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by
the agency.
Reason for Base
Date
Est.
Ramp
Level
2022-23
Ramp
Shape
Escala-
tion
Rate
Amort.
Period
Balance
6/30/20
Expected
Payment
2020-21
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Minimum
Required
Payment
2022-23
Share of Pre-2013 Pool UAL 6/30/13 No Ramp 2.75% 14 4,343,611 374,011 4,260,784 384,296 4,161,520 394,864
Non-Investment (Gain)/Loss 6/30/13 100% Up/Down 2.75% 23 15,472 1,050 15,469 1,078 15,437 1,108
Investment (Gain)/Loss 6/30/13 100% Up/Down 2.75% 23 4,085,514 277,149 4,084,815 284,771 4,076,183 292,602
Non-Investment (Gain)/Loss 6/30/14 100% Up/Down 2.75% 24 3,885 257 3,891 264 3,890 271
Investment (Gain)/Loss 6/30/14 100% Up/Down 2.75% 24 (3,472,396) (229,619) (3,477,944) (235,933) (3,477,349) (242,421)
Assumption Change 6/30/14 100% Up/Down 2.75% 14 2,146,310 204,091 2,085,438 209,703 2,014,500 215,470
Non-Investment (Gain)/Loss 6/30/15 100% Up/Down 2.75% 25 (183,328) (9,589) (186,242) (12,316) (186,539) (12,654)
Investment (Gain)/Loss 6/30/15 100% Up/Down 2.75% 25 2,219,909 116,110 2,255,198 149,129 2,258,802 153,230
Non-Investment (Gain)/Loss 6/30/16 100% Up/Down 2.75% 26 (349,326) (13,728) (359,578) (18,807) (365,294) (24,156)
Investment (Gain)/Loss 6/30/16 100% Up/Down 2.75% 26 2,804,866 110,227 2,887,187 151,012 2,933,082 193,956
Assumption Change 6/30/16 100% Up/Down 2.75% 16 870,275 47,382 882,182 64,913 876,788 83,373
Non-Investment (Gain)/Loss 6/30/17 80% Up/Down 2.75% 27 (74,695) (1,986) (77,869) (3,060) (80,155) (4,192)
Investment (Gain)/Loss 6/30/17 80% Up/Down 2.75% 27 (1,440,065) (38,279) (1,501,273) (58,998) (1,545,334) (80,827)
Assumption Change 6/30/17 80% Up/Down 2.75% 17 1,004,176 36,618 1,036,590 56,437 1,050,772 77,319
Non-Investment (Gain)/Loss 6/30/18 60% Up/Down 2.75% 28 221,295 3,022 233,660 6,211 243,591 9,573
Investment (Gain)/Loss 6/30/18 60% Up/Down 2.75% 28 (444,334) (6,069) (469,160) (12,471) (489,101) (19,221)
Assumption Change 6/30/18 60% Up/Down 2.75% 18 1,599,123 29,815 1,680,221 61,270 1,734,458 94,432
Method Change 6/30/18 60% Up/Down 2.75% 18 436,258 8,134 458,382 16,715 473,179 25,762
Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 19 225,842 0 241,651 22,051 235,757 22,051
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 13
Schedule of Plan’s Amortization Bases (continued)
Reason for Base
Date
Est.
Ramp
Level
2022-23
Ramp
Shape
Escala-
tion
Rate
Amort.
Period
Balance
6/30/20
Expected
Payment
2020-21
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Minimum
Required
Payment
2022-23
Investment (Gain)/Loss 6/30/19 40% Up Only 0.00% 19 213,815 0 228,782 5,002 239,623 10,004
Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 20 180,512 0 193,148 0 206,668 18,859
Investment (Gain)/Loss 6/30/20 20% Up Only 0.00% 20 999,191 0 1,069,134 0 1,143,973 25,012
Total 15,405,910 908,596 15,544,466 1,071,267 15,524,451 1,234,415
The (gain)/loss bases are the plan’s allocated share of the risk pool’s (gain)/loss for the fiscal year as disclosed in “Allocation of Plan’s Share of Pool’s Experience/Assumption
Change” earlier in this section. These (gain)/loss bases will be amortized in accordance with the CalPERS amortization policy in effect at the time the base was established.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool
Page 14
Amortization Schedule and Alternatives
The amortization schedule on the previous page shows the minimum contributions required according to the CalPERS
amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest
in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternative amortization
schedules to help analyze the current amortization schedule and illustrate the potential savings of accelerating unfunded
liability payments.
Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting
the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules
using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate
a Fresh Start, please consult with your plan actuary.
The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan
changes, assumption changes, method changes or plan experience that increase unfunded liability. Negative bases result
from plan changes, assumption changes, method changes, or plan experience that decrease unfunded liability. The
combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances
in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or
• When the payment would completely amortize the total unfunded liability in a very short time period, and results in
a large change in the employer contribution requirement.
In any year when one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing
unfunded liability bases with a single “fresh start” base and amortizing it over a reasonable period.
The Current Amortization Schedule on the following page may appear to show that, based on the current amortization bases,
one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will
in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario
arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool
Page 15
Amortization Schedule and Alternatives (continued)
Alternate Schedules
Current Amortization
Schedule 15 Year Amortization 10 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2022 15,524,451 1,234,415 15,524,451 1,647,804 15,524,451 2,136,809
6/30/2023 15,334,273 1,332,170 14,906,661 1,647,804 14,400,830 2,136,809
6/30/2024 15,029,666 1,434,809 14,245,626 1,647,804 13,198,556 2,136,809
6/30/2025 14,597,566 1,500,541 13,538,318 1,647,803 11,912,123 2,136,809
6/30/2026 14,067,223 1,562,253 12,781,500 1,647,804 10,535,639 2,136,809
6/30/2027 13,435,922 1,599,964 11,971,703 1,647,803 9,062,801 2,136,809
6/30/2028 12,721,419 1,638,711 11,105,222 1,647,804 7,486,865 2,136,810
6/30/2029 11,916,822 1,678,524 10,178,086 1,647,804 5,800,612 2,136,809
6/30/2030 11,014,720 1,719,430 9,186,050 1,647,803 3,996,322 2,136,809
6/30/2031 10,007,154 1,761,463 8,124,573 1,647,804 2,065,732 2,136,810
6/30/2032 8,885,583 1,748,127 6,988,791 1,647,803
6/30/2033 7,699,297 1,732,872 5,773,506 1,647,804
6/30/2034 6,445,753 1,692,508 4,473,150 1,647,804
6/30/2035 5,146,210 1,621,252 3,081,769 1,647,803
6/30/2036 3,829,411 909,081 1,592,992 1,647,804
6/30/2037 3,157,110 814,554
6/30/2038 2,535,527 714,291
6/30/2039 1,974,146 634,486
6/30/2040 1,456,018 581,395
6/30/2041 956,541 446,711
6/30/2042 561,418 293,381
6/30/2043 297,240 233,517
6/30/2044 76,497 79,129
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
Total 26,963,584 24,717,055 21,368,092
Interest Paid 11,439,133 9,192,604 5,843,641
Estimated Savings 2,246,529 5,595,492
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 16
Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan. The amounts are
based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes
made during a fiscal year. Additional discretionary payments before July 1, 2019 or after June 30, 2020 are not
included.
[
Fiscal
Year
Employer
Normal Cost
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2016 - 17 11.008% $439,615 N/A
2017 - 18 11.049% 525,713 N/A
2018 - 19 11.569% 655,239 N/A
2019 - 20 12.514% 794,757 0
2020 - 21 13.515% 908,597
2021 - 22 13.35% 1,071,267
2022 - 23 13.35% 1,234,415
Funding History
The table below shows the recent history of the actuarial accrued liability, share of the pool’s market value of
assets, unfunded accrued liability, funded ratio, and annual covered payroll.
Valuation
Date
Accrued
Liability
(AL)
Share of Pool’s
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
06/30/2011 $27,672,683 $21,260,534 $6,412,149 76.8% $5,638,442
06/30/2012 30,226,937 21,909,350 8,317,587 72.5% 5,604,538
06/30/2013 32,819,032 25,175,741 7,643,291 76.7% 6,052,036
06/30/2014 37,302,359 30,357,378 6,944,981 81.4% 5,892,668
06/30/2015 39,673,505 31,049,572 8,623,933 78.3% 5,590,815
06/30/2016 42,754,304 31,259,596 11,494,708 73.1% 5,520,980
06/30/2017 46,058,228 34,642,116 11,416,112 75.2% 5,592,818
06/30/2018 50,818,757 37,544,699 13,274,058 73.9% 5,448,926
06/30/2019 54,693,071 40,669,953 14,023,118 74.4% 4,831,823
06/30/2020 57,696,134 42,290,224 15,405,910 73.3% 4,729,731
Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 18
Future Investment Return Scenarios
Analysis was performed to determine the effects of various future investment returns on required employer
contributions. The projections below provide a range of results based on five investment return scenarios
assumed to occur during the next four fiscal years (2020-21, 2021-22, 2022-23 and 2023-24). The projections
also assume that all other actuarial assumptions will be realized and that no further changes to assumptions,
contributions, benefits, or funding will occur.
For fiscal years 2020-21, 2021-22, 2022-23, and 2023-24, each scenario assumes an alternate fixed annual
return. The fixed return assumptions for the five scenarios are 1.0%, 4.0%, 7.0%, 9.0% and 12.0%.
These alternate investment returns were chosen based on stochastic analysis of possible future investment
returns over the four-year period ending June 30, 2024. Using the expected returns and volatility of the asset
classes in which the funds are invested, we produced five thousand stochastic outcomes for this period based
on the most recently completed Asset Liability Management process. We then selected annual returns that
approximate the 5th, 25th, 50th, 75th, and 95th percentiles for these outcomes. For example, of all the 4-year
outcomes generated in the stochastic analysis, approximately 25% had an average annual return of 4.0% or
less.
Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment
returns will average less than 1.0% or greater than 12.0% over this four-year period, the likelihood of a single
investment return less than 1.0% or greater than 12.0% in any given year is much greater.
Assumed Annual Return From
2020-21 through 2023-24
Projected Employer Contributions
2023-24 2024-25 2025-26 2026-27
1.0%
Normal Cost 13.4% 13.4% 13.4% 13.4%
UAL Contribution $1,396,000 $1,626,000 $1,883,000 $2,201,000
4.0%
Normal Cost 13.4% 13.4% 13.4% 13.4%
UAL Contribution $1,364,000 $1,531,000 $1,696,000 $1,891,000
7.0%
Normal Cost 13.4% 13.4% 13.4% 13.4%
UAL Contribution $1,332,000 $1,435,000 $1,501,000 $1,562,000
9.0%
Normal Cost 13.6% 13.9% 14.2% 14.4%
UAL Contribution $1,315,000 $1,387,000 $1,406,000 $1,402,000
12.0%
Normal Cost 13.6% 13.9% 14.2% 14.4%
UAL Contribution $1,284,000 $1,288,000 $1,200,000 $1,045,000
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 19
Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed
annual price inflation, currently 4.50% and 2.50%, respectively. Changing either the price inflation assumption
or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the
discount rate assumption depends on which component of the discount rate is changed. Shown below are
various valuation results as of June 30, 2020 assuming alternate discount rates by changing the two components
independently. Results are shown using the current discount rate of 7.0% as well as alternate discount rates of
6.0% and 8.0%. The rates of 6.0% and 8.0% were selected since they illustrate the impact of a 1.0% increase
or decrease to the 7.0% assumption.
Sensitivity to the Real Rate of Return Assumption
As of June 30, 2020 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 6.0% 7.0% 8.0%
Inflation 2.5% 2.5% 2.5%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 26.67% 21.31% 17.21%
b) Accrued Liability $65,382,136 $57,696,134 $51,309,550
c) Market Value of Assets $42,290,224 $42,290,224 $42,290,224
d) Unfunded Liability/(Surplus) [(b) - (c)] $23,091,912 $15,405,910 $9,019,326
e) Funded Status 64.7% 73.3% 82.4%
Sensitivity to the Price Inflation Assumption
As of June 30, 2020 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 6.0% 7.0% 8.0%
Inflation 1.5% 2.5% 3.5%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 22.69% 21.31% 19.63%
b) Accrued Liability $61,008,351 $57,696,134 $53,494,348
c) Market Value of Assets $42,290,224 $42,290,224 $42,290,224
d) Unfunded Liability/(Surplus) [(b) - (c)] $18,718,127 $15,405,910 $11,204,124
e) Funded Status 69.3% 73.3% 79.1%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2020 plan costs and funded status under two different
longevity scenarios, namely assuming post-retirement rates of mortality are 10% lower or 10% higher than our
current mortality assumptions adopted in 2017. This type of analysis highlights the impact on the plan of
improving or worsening mortality over the long-term.
As of June 30, 2020 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 21.67% 21.31% 20.98%
b) Accrued Liability $58,757,536 $57,696,134 $56,712,706
c) Market Value of Assets $42,290,224 $42,290,224 $42,290,224
d) Unfunded Liability/(Surplus) [(b) - (c)] $16,467,312 $15,405,910 $14,422,482
e) Funded Status 72.0% 73.3% 74.6%
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 20
Maturity Measures
As pension plans mature they become more sensitive to risks. Understanding plan maturity and how it affects
the ability of a pension plan sponsor to tolerate risk is important in understanding how the pension plan is
impacted by investment return volatility, other economic variables and changes in longevity or other
demographic assumptions. Since it is the employer that bears the risk, it is appropriate to perform this analysis
on a pension plan level considering all rate plans. The following measures are for one rate plan only.
One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability
to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As
the plan matures, the ratio starts increasing. A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2019 June 30, 2020
1. Retired Accrued Liability 33,457,519 35,726,701
2. Total Accrued Liability 54,693,071 57,696,134
3. Ratio of Retiree AL to Total AL [(1) / (2)] 0.61 0.62
Another measure of maturity level of CalPERS and its plans is to look at the ratio of actives to retirees, also
called the Support Ratio. A pension plan in its infancy will have a very high ratio of active to retired members.
As the plan matures, and members retire, the ratio starts declining. A mature plan will often have a ratio near
or below one. The average support ratio for CalPERS public agency plans is 1.25.
Support Ratio June 30, 2019 June 30, 2020
1. Number of Actives 42 37
2. Number of Retirees 39 44
3. Support Ratio [(1) / (2)] 1.08 0.84
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 21
Maturity Measures (Continued)
The actuarial calculations supplied in this communication are based on various assumptions about long-term
demographic and economic behavior. Unless these assumptions (e.g., terminations, deaths, disabilities,
retirements, salary growth, and investment return) are exactly realized e ach year, there will be differences on
a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called
actuarial gains and losses and serve to lower or raise required employer contributions from one year to the
next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of
investment returns.
Asset Volatility Ratio (AVR)
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll.
Plans that have higher AVR experience more volatile employer contributions (as a percentage of payroll) due to
investment return. For example, a plan with an asset-to-payroll ratio of 8 may experience twice the contribution
volatility due to investment return volatility than a plan with an asset-to-payroll ratio of 4. It should be noted
that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as t he
plan matures.
Liability Volatility Ratio (LVR)
Also shown in the table below is the liability volatility ratio (LVR), which is the ratio of accrued liability to payroll.
Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due
to investment return and changes in liability. For example, a plan with LVR ratio of 8 is expected to have twice
the contribution volatility of a plan with LVR of 4. It should be noted that this ratio indicates a longer-term
potential for contribution volatility. The AVR, described above, will tend to move closer to the LVR as a plan
matures.
Contribution Volatility June 30, 2019 June 30, 2020
1. Market Value of Assets $40,669,953 $42,290,224
2. Payroll 4,831,823 4,729,731
3. Asset Volatility Ratio (AVR) [(1) / (2)] 8.4 8.9
4. Accrued Liability $54,693,071 $57,696,134
5. Liability Volatility Ratio (LVR) [(4) / (2)] 11.3 12.2
Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
06/30/2017 0.47 1.76 6.2 8.2
06/30/2018 0.53 1.38 6.9 9.3
06/30/2019 0.61 1.08 8.4 11.3
06/30/2020 0.62 0.84 8.9 12.2
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 22
Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with
CalPERS been terminated as of June 30, 2020. The plan liability on a termination basis is calculated differently
compared to the plan’s ongoing funding liability. For the hypothetical termination liability calculation, both
compensation and service are frozen as of the valuation date and no future pay increases or service accruals
are assumed. This measure of funded status is not appropriate for assessing the need for future employer
contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS
retirement benefits to active employees.
A more conservative investment policy and asset allocation strategy was adopted by the CalPERS Board for the
Terminated Agency Pool. The Terminated Agency Pool has limited funding sources since no future employer
contributions will be made. Therefore, expected benefit payments are secured by risk-free assets and benefit
security for members is increased while limiting the funding risk. However, this asset allocation has a lower
expected rate of return than the PERF and consequently, a lower discount rate is assumed. The lower discount
rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The effective termination discount rate will depend on actual market rates of return for risk-free securities on
the date of termination. As market discount rates are variable, the table below shows a range for the hypothetical
termination liability based on the lowest and highest interest rates observed during an approximate 19 -month
period from 12 months before the valuation date to 7 months after.
Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 0.75%
Funded
Status
Unfunded
Termination
Liability
at 0.75%
Hypothetical
Termination
Liability1,2
at 2.50%
Funded
Status
Unfunded
Termination
Liability
at 2.50%
$42,290,224 $131,782,099 32.1% $89,491,875 $100,223,773 42.2% $57,933,549
1 The hypothetical liabilities calculated above include a 5% mortality contingency load in accordance with Board policy. Other
actuarial assumptions can be found in Appendix A of the Section 2 report.
2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S.
Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The
discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point,
which is a good proxy for most plans. The 20-year Treasury yield was 1.18% on June 30, 2020, and was 1.68% on January
31, 2021.
In order to terminate the plan, you must first contact our Retirement Services Contract Unit to initiate a
Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to give you a preliminary
termination valuation with a more up-to-date estimate of the plan liabilities. CalPERS advises you to consult with
the plan actuary before beginning this process.
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 23
Participant Data
The table below shows a summary of your plan’s member data upon which this valuation is based:
June 30, 2019 June 30, 2020
Active Members
Counts 42 37
Average Attained Age N/A 50.1
Average Entry Age to Rate Plan N/A 36.3
Average Years of Credited Service N/A 14.8
Average Annual Covered Pay $115,043 $127,831
Annual Covered Payroll $4,831,823 $4,729,731
Projected Annual Payroll for Contribution Year $5,241,511 $5,130,763
Present Value of Future Payroll $35,987,839 $34,025,826
Transferred Members 4 4
Separated Members 10 10
Retired Members and Beneficiaries
Counts* 39 44
Average Annual Benefits* N/A $57,302
Counts of members included in the valuation are counts of the recor ds processed by the valuation. Multiple
records may exist for those who have service in more than one valuation group. This does not result in double
counting of liabilities.
* Values include community property settlements.
List of Class 1 Benefit Provisions
This plan has the additional Class 1 Benefit Provisions:
• None
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 24
Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions
is in Section 2.
Benefit Group
Member Category Misc Misc
Demographics
Actives No Yes
Transfers/Separated Yes Yes
Receiving Yes Yes
Benefit Group Key 100604 100605
Benefit Provision
Benefit Formula 2% @ 60 2.7% @ 55
Social Security Coverage Yes Yes
Full/Modified Full Full
Employee Contribution Rate 8.00%
Final Average Compensation Period Three Year Three Year
Sick Leave Credit Yes Yes
Non-Industrial Disability Standard Standard
Industrial Disability No No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes Yes
1959 Survivor Benefit Level No No
Special Yes Yes
Alternate (firefighters) No No
Post-Retirement Death Benefits
Lump Sum $500 $500
Survivor Allowance (PRSA) No No
COLA 2% 2%
CALPERS ACTUARIAL VALUATION - June 30, 2020
Miscellaneous Plan of the Truckee Donner Public Utility District
CalPERS ID: 1268699297
Rate Plan belonging to the Miscellaneous Risk Pool Page 25
Section 2
CALIFORNIA PUBLIC EM PLOYEES’ RETIREMENT SYSTEM
Risk Pool Actuarial Valuation Information
Section 2 may be found on the CalPERS website
(calpers.ca.gov) in the Forms and
Publications section