The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities decreased slightly from 91.2% to 91.0%. The Association’s unfunded actuarial accrued liability (UAAL) has increased from $1.05 billion to $1.12 billion. The increase in UAAL is primarily due to an investment return on the valuation value (i.e., after asset smoothing) less than the assumed rate of 6.75% and individual salary increases greater than expected by the assumptions used in the December 31, 2022 valuation.

The average employer rate calculated in this valuation (excluding any employer subvention of member rates or member subvention of employer rates) has decreased from 30.01% of payroll to 28.55% of payroll. This decrease is primarily due to the tail volatility adjustments discussed above and amortizing the prior year’s UAAL over a larger than projected total payroll, partially offset by the investment return on the valuation value (i.e., after asset smoothing) less than the assumed rate of 6.75% and individual salary increases greater than expected by the assumptions used in the December 31, 2022 valuation.

December 31, 2023 Actuarial Valuation