HomeMy WebLinkAbout2025-12-18; CalPERS Update (Districts - All); Rocha, LauraTo the members of the:
CITY COUNCIL
Date\1-]~A~CC~
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Council Memorandum
December 18, 2025
To:
From:
Via:
Re:
Honorable Mayor Blackburn and Members of the City Council
Laura Rocha, Deputy City Manager, Administrative Services
Zach Korach, Finance Director ,n ~ )
Sheila Cobian, Assistant City Manager 'JJ~
Cal PERS Update (Districts -All}
{city of
Carlsbad
Memo ID# 2025076
This memorandum provides information related to the city's pension plan with California Public
Employment Retirement System {CalPERS), their updated actuarial valuation reports as of
June 2024 (issued in August 2025) and their recently completed quadrennial Asset Liability
Management (ALM) process. Compared to the previous year, there was a slight increase in the
funded ratio which was primarily driven by CalPERS' fiscal year 2023-24 investment return
of 9.3%, above their 6.8% target.
Background
The city provides a defined benefit pension to its employees through CalPERS. Each year, around
the August timeframe, Cal PERS issues actuarial valuation reports to participating agencies. These
comprehensive reports include the most current information related to CalPERS' investment
performance, actuarial assumptions as well as the city's required contributions for the upcoming
year. Due to the length of time it takes Cal PERS to compile the information and ultimately
publish the reports, they are issued over one year in arrears. For example, reports received in
August 2025 are measured as of June 30, 2024. This means any investment performance,
changes in actuarial assumptions and changes to the composition of the pension plan
subsequent to June 30, 2024, are not factored into the reports.
These reports are particularly critical to the city's budget process. Depending on CalPERS'
investment performance from the previous fiscal year and any potential changes to the actuarial
assumptions they use, the amount required to be contributed by the city in the following fiscal
year may be subject to increased volatility. It is important to note that these reports are issued as
of a point-in-time and can change significantly from one year to the next. While one year's
reports may indicate the city's required contributions are set to be higher or lower compared to
previous fiscal years, the following year's report may include significantly different projections.
As of Cal PERS' most recent actuarial reports for the year ending June 30, 2024, the city's
miscellaneous pension plan had assets of $411.3 million, liabilities of $523.9 million and a funded
ratio of 78.5%. The city's safety pension plan has assets of $316.8 million, liabilities of $437.7
million and a funded ratio of 72.4%. The unfunded liability is the difference between assets and
liabilities, while the funded ratio is the ratio of assets to liabilities. In total, the city's funded ratio
Administrative Services Branch
Finance Department
1635 Faraday I Carlsbad, CA 92008 I 442-339-2127 t
Council Memo -Cal PERS Update (Districts -All)
December 18, 2025
Page 2
was 75.7%, representing a shortfall of approximately $41.2 million from the city's 80% policy
target.
As of October 31, 2025, the city's Section 115 Pension Trust had $29.1 million, which included
city contributions of $25.0 million initial contribution and $4.1 million of net investment earnings.
These funds are legally restricted for pension-related costs and are available to mitigate pension
cost volatility and its impact on the city's budget. Additionally, in accordance with City Council
Policy No. 86, these funds are considered when calculating the city's funded status. Based on
CalPERS' most current actuarial valuations and the Section 115 Pension Trust's assets as of
October 31, 2025, the city's funded status is 78.7%. CalPERS recently released their preliminary
investment performance for fiscal year 2024-25 which yielded a return of 11.6%, or 4.8
percentage points above their 6.8% target. With this in mind, the city is still on track to achieve
an 80% funded status in fiscal year 2027-28 and within the 5-year timeframe that was proposed
when the trust was established in September 2023.
Discussion
CalPERS
The city provides a defined benefit pension to its employees through Cal PERS. Retirement
benefits are calculated using a formula based on an employee's age, earnings, and years of
service. The retirement benefits are funded by:
• Investment earnings (60%)
• Employer contributions (29%)
• Employee contributions (11%)
Each year, CalPERS determines an employer's contributions based on actual investment returns
and actuarial assumptions including:
• Expected investment returns (discount rates)
• Inflation rates
• Salaries
• Retirement ages
• Life expectancies
Contributions to fund the pension plan are comprised of two components:
• The normal cost (the cost of the benefits earned in a respective year)
• The amortization of the unfunded accrued liability (UAL)
CalPERS Discount Rate
Defined benefit plans are highly sensitive to the discount rate assumption. The discount rate is
the expected rate of return of the plan's assets over the long term. The discount rate will depend
on the plan's size, asset allocation, time horizon, and other considerations.
Council Memo -Cal PERS Update (Districts -All)
December 18, 2025
Page 3
From the city's perspective, the discount rate is important as it is used to determine the city's
annual contributions to the plan, the plan's unfunded liability, and the plan's funded status. In
other words, the discount rate is used to determine whether a plan has enough assets to meet its
future obligations. The discount rate must be realistic to allow the city to foresee funding issues
that may impact future operating budgets and future generations of retirees and plan members.
If the discount rate assumption is too high and investments earn less than expected, a funding
shortfall may result, requiring the city or CalPERS members to make greater contributions than
expected.
CalPERS Investment Earnings
Since investment earnings fund nearly 60% of retirement benefits, the city's pension plan is
sensitive to the investment returns of Cal PERS. Investment returns affect how much of the
retirement benefits can be funded by investment earnings rather than contributions. If
investment returns are lower than the discount rate, contributions must increase to make up the
difference. As a result, pension plans need accurate rate of return assumptions to ensure fiscal
sustainability.
Currently CalPERS assumes it will earn investment returns of 6.8% each year. As illustrated in the
following chart, over the last 20 years, Cal PERS has earned investment returns below the
discount rate assumption nearly half of the time. Individual fiscal year investment returns have
ranged between -24.0% and +21.7%. Notably, CalPERS earned negative investment returns in
2008 and 2009 due to the Great Recession.
CalPERS Historical Investment Returns
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H l1 FY\3 Fm ,m "" FY17 "" FY19 FY/0 cm I f-Y}.1 FY7.l
For fiscal year 2023-24, Cal PERS reported an investment return of 9.3%, 2.5 percentage points
higher than the 6.8% target rate of return. The average investment return is 7% for a 5-year
period, 6.5% for a 10-year period, and 7.2% for a 20-year period. As returns in a given year are
volatile, it can be more instructive to look at returns over longer time horizons.
Funding Risk Mitigation Policy
Under CalPERS' Funding Risk Mitigation Policy, the 21.3% return in fiscal year 2020-21 triggered a
reduction in the discount rate from 7% to 6.8%. The Funding Risk Mitigation Policy, approved by
the CalPERS Board in 2005, lowers the discount rate in years of good investment returns to
Council Memo -Cal PERS Update (Districts -All)
December 18, 2025
Page 4
reduce risk in the portfolio. The Risk Mitigation Policy and the resulting impacts from fiscal year
2020-21 began affecting contributions in fiscal year 2023-24.
Asset Liability Management Process
In November 2021, CalPERS completed its quadrennial Asset Liability Management (ALM)
process, which reviewed investment strategies and actuarial assumptions. At the
November 15-17, 2021, meetings, the CalPERS Board approved a 6.8% discount rate, selected a
new asset allocation for the fund's investment portfolio, and adopted new actuarial assumptions.
Previous Current
Asset Class Allocation Allocation
Global Equity 50% 42%
Fixed Income 28% 30%
Rea l Assets 13% 15%
Private Equity 8% 13%
Private Debt 0% 5%
Liquidity 1% 0%
Total 100% 105%
*Includes a 5% allocation to leverage.
CalPERS recently completed its latest ALM process in November 2025. While there were no
changes to the 6.8% discount rate, the Cal PERS Board did approve moving to a "total portfolio
approach" whereby target allocations for specific asset classes, as shown above, no longer apply.
While the potential for concentration risk increases, Cal PERS staff are also able to respond to
changing market conditions in hopes of achieving higher returns. While no changes were made
to the discount rate, the Cal PERS Board did approve changes to its actuarial assumptions, slightly
increasing price inflation and wage growth assumption. This change will go into effect on
July 1, 2026, and should have minimal direct impact on the city's required contributions and
future costs beginning in fiscal year 2027-28.
CalPERS Plan Status
As of the most recent actuarial valuation on June 30, 2024, the city's miscellaneous pension plan
had assets of $411.3 million, liabilities of $523.9 million and a funded ratio of 78.5%. The city's
safety pension plan has assets of $316.8 million, liabilities of $437.7 million and a funded ratio of
72.4%. The unfunded liability is the difference between assets and liabilities, while the funded
ratio is the ratio of assets to liabilities.
City Council's Pension Funding Policy (No. 86) strives to maintain an 80% funded ratio. As of
CalPERS' June 30, 2024, actuarial valuation, the city's combined funded status was 75.7%. Slightly
higher than the previous year's funded status of 73.7% and driven by higher-than-projected
investment performance in fiscal year 2023-24, this represents a shortfall below the city's
80% target of approximately $41.2 million.
Council Memo -Cal PERS Update (Districts -All)
December 18, 2025
Page 5
CalPERS Miscellaneous Plan Status
June 30, 2023 June 30, 2024
Present Value of Projected Benefits $ 587,760,912 $ 608,959,643
Entry Age Normal Accrued Liability $ 502,489,876 $ 523,908,484
Market Value of Assets $ 383,790,810 $ 411,316,849
Unfunded Accrued Liability $ 118,699,066 $ 112,591,635
Funded Ratio 76.4% 78.5%
CalPERS Safety Plan Status
June 30, 2023 June 30, 2024
Present Value of Projected Benefits $ 517,025,611 $ 537,026,611
Entry Age Normal Accrued Liability $ 416,941,852 $ 437,748,382
Market Value of Assets $ 294,206,830 $ 316,809,397
Unfunded Accrued Liability $ 122,735,022 $ 120,938,985
Funded Ratio 70.6% 72.4%
CalPERS Miscellaneous & Safety Plan Status
June 30, 2023 June 30, 2024
Present Value of Projected Benefits $ 1,104,786,523 $ 1,145,986,254
Entry Age Normal Accrued Liability $ 919,431,728 $ 961,656,866
Market Value of Assets $ 677,997,640 $ 728,126,246
Unfunded Accrued Liability $ 241,434,088 $ 233,530,620
Funded Ratio 73.7% 75.7%
Below is a 10-year history of the city's unfunded liability and funded ratio:
CalPERS -Unfunded Liability and Funded Ratio
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
$50,000,000
$-
2015 2016 2017 2018 2019 2020 2021 2022
-Unfunded Liability Funded Status
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2023 2024
Over this ten-year period, the city's unfunded liability has ranged between $102 million and
$241 million, and the funded ratio has ranged from 68% to 86%. These ranges represent a high
level of volatility which were driven primarily by Cal PERS' investment performance as well as
changes in their actuarial assumptions. Since fiscal year 2016-17, and in an effort to stabilize the
city's required contributions, $56.4 million in additional discretionary payments to CalPERS have
been made.
Council Memo -CalPERS Update (Districts -All)
December 18, 2025
Page 6
Impact of Cal PERS Investments Returns
Cal PERS assumes it will earn investment returns of 6.8% each year. If investment returns are
higher than 6.8%, the city's contributions decrease. Conversely, if investment returns are lower
than 6.8%, the city's contributions increase.
In fiscal year 2021-22, CalPERS experienced an investment loss of -6.1% and as a result, the city's
required pension contributions increased substantially in fiscal year 2024-25. In
fiscal year 2022-23, Cal PERS experienced an investment return of 5.8%, slightly below their
target of 6.8% and as a result, the city's required pension contributions increased in
fiscal year 2025-26. However, with CalPERS earning 9.3% in fiscal year 2023-24 and announcing
preliminary returns of 11.6% in fiscal year 2024-25, the city can expect annual required
contributions to decrease in future years, assuming there are no adverse actuarial assumption
changes made by CalPERS.
Impact of Cal PERS Discount Rate Changes
Since the early 2000's, CalPERS has reduced their discount rate from 8.25% to 6.8%. While this
makes it easier for Cal PERS to meet their target, it also represents a significant increase in costs
for the city.
During CalPERS' Asset Management Liability Process in 2021, CalPERS considered discount rates
between 6.25% and 7%. Ultimately, Cal PERS approved a discount rate of 6.8%, a decrease from
the previous discount rate of 7%.
The discount rate has a significant effect on the city's Cal PERS contributions. If the discount rate
is reduced, the city's required contributions will increase. For example, if CalPERS reduced their
discount rate from 6.8% to 5.8%, the city's unfunded liability would increase by $124.5 million
or 52%.
City Strategies
In recent years, unfunded liabilities, or pension debt, have caused cities in California to cut back
on public services. Three cities have even declared bankruptcy. Pension debt is the difference
between how much money is available to pay for the pensions city employees receive when they
retire, and the money needed to pay for the actual benefits. Pension debt is an estimate because
it is not possible to know exactly how well the pension fund investments will perform nor how
many employees will retire, at what age they will retire and how long they will live.
The City of Carlsbad has long recognized the financial uncertainty caused by the state's pension
system. That's why Carlsbad was one of the first cities in the region to enact pension reform,
pre-dating state reforms in 2013. This and other strategies have reduced the city's pension debt
considerably compared to most other cities in the state.
Council Memo -Cal PERS Update (Districts -All}
December 18, 2025
Page 7
Number of Employees by Benefit Tier
600
500
400
300
200
100
0
Tier 1 -Tier2
■2014 2024
-Tier3
In 2019, the City Council adopted a Pension Funding Policy {City Council Policy Statement No. 86}.
This policy states that the city will strive to maintain an 80% funded status. Said another way, the
goal of this policy is to keep Carlsbad's pension debt at no more than 20%.
Since fiscal year 2016-17, the city has contributed $56.4 million to CalPERS to reduce the city's
unfunded liability and thereby achieve interest savings. These contributions were in addition to
the annual required contributions set by CalPERS .
On September 12, 2023, the City Council approved the establishment of a Section 115 Pension
Trust and a Pension Investment Policy to govern the management of assets within the trust. This
trust allows the city to stabilize pension cost volatility, maintain local control over the city's
assets, and earn a potentially higher rate of return than if the assets were kept within the
General Fund. Since inception, the City Council has authorized $25 million of contributions to the
trust. The trust has earned approximately $4.1 million since its establishment.
City Council Policy No. 86 states that "in the event the city is unable to meet the minimum
combined pension funded ratio of 80% with current resources (i.e., without borrowing or using
reserves}, the Finance Director or Deputy City Manager of Administrative Services will identify a
reasonable period to return to a minimum 80% funded ratio status."
Rather than making a significant one-time payment to Cal PERS, the city will contribute the
difference between the 74.6% funded status as of June 30, 2022, and the 80% target to the
Section 115 Trust over a five-year period. The city has made $25 million in contributions to the
trust and is expected to contribute an additional $15 million over the next two fiscal years. Over
the five-year period and beyond, assets in the trust would be invested, in accordance with
City Council Policy No. 98 -Pension Trust Investment Policy, with a "balanced" investment
strategy. Staff project that at the end of fiscal year 2027-28, assets in the trust will meet
Council Memo -Cal PERS Update (Districts -All)
December 18, 2025
Page 8
the 80% funded status target, assuming CalPERS meets their annual target rate of return. Any
deposits or withdrawals from the trust require approval from the City Council.
The city's funded status changes every year based on CalPERS' investment performance. In the
event the city's combined funded status meets or exceeds the 80% target level, it is important
the Section 115 Trust continues to serve the city as a pension rate stabilization tool. The asset
balance in the trust is evaluated to ensure it is on track to accumulate sufficient funds to cover
the additional costs associated with a potential future reduction in CalPERS' discount rate.
While the trust helps ensure an 80% combined funded ratio is maintained, the ultimate funding
goal is for the city to have sufficient assets in the trust to be prepared for further discount rate
reductions by CalPERS.
With the initial contribution of $10 million, followed by four annual contributions of $7.5 million,
and assuming an annual rate of return of 6.25%, not only would the city's funded status reach
80% over a five-year period, but over a 20-year period there would be sufficient assets in the
trust to fund a potential reduction in CalPERS' discount rate from the current 6.8% to 6.25%.
When the Section 115 Pension Trust was established in 2023, the potential reduction in CalPERS'
discount rate represented an additional $118 million in unfunded pension costs for the City of
Carlsbad.
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$120
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$-
FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 FY42 FY43
-3.00% Investment Return -6.25% Investment Return
Even though Cal PERS is continuing to take prudent measures to manage the pension liability for
its participants, the annual costs paid by participating members will continue to increase. And,
while CalPERS has outperformed its assumed rate of return on investments over the last
Council Memo -Cal PERS Update (Districts -All)
December 18, 2025
Page 9
10-years, future economic uncertainty is likely to have a profound impact on its investment
performance, which will impact the city's annual required contributions.
Next Steps
Information included in CalPERS' most recent actuarial reports will not affect the city's
contributions until fiscal year 2026-27. The appropriate data will be incorporated in the fiscal
year 2026-27 budget process and presented to the City Council in May 2026.
Attachment: A. CalPERS Miscellaneous Actuarial Valuation Report
(Due to the size of Attachment A, a hard copy is on file in the Office of the
City Council, as reference)
B. CalPERS Safety Actuarial Valuation Report
(Due to the size of Attachment B, a hardcopy is on file in the Office of the
City Council, as reference)
cc: Geoff Patnoe, City Manager
Cindie McMahon, City Attorney
Gary Barberio, Deputy City Manager, Community Services
Paz Gomez, Deputy City Manager, Public Works
Christie Calderwood, Police Chief
Michael Calderwood, Fire Chief
Faviola Medina, Director of Constituent & Clerk Services
Roxanne Muhlmeister, Assistant Finance Director
Brigid Drury, Budget Manager
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 2025
Miscellaneous Plan of the City of Carlsbad (CalPERS ID: 3747905882)
Annual Valuation Report as of June 30, 2024
Dear Employer,
Attached to this letter is the June 30, 2024, actuarial valuation report for the plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2026-27. 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.
Required Contributions
The table below shows the minimum required employer contributions and the PEPRA member contribution rates for FY 2026-27
along with an estimate of the employer contribution requirements for FY 2027-28. The required employer and member
contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Contribution Rate
2026-27 11.33% $10,280,656 8.50%
Projected Results
2027-28 11.1% $10,750,000 TBD
The actual investment return for FY 2024-25 was not known at the time this report was prepared. The projection UAL payment
above assumes the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2024-25
differs from 6.8%, the actual UAL contribution requirement for FY 2027-28 will differ from that shown above. For additional
information on future contribution requirements, please refer to Projected Employer Contributions. This section also contains projected required contributions through FY 2031-32.
PEPRA Member Contribution Rate
The employee contribution rate for PEPRA members can change based on the results of the actuarial valuation. See Member
Contribution Rates for more information.
Report Navigation Features
The valuation report has a number of features to ease navigation and allow the reader to find specific information more quickly.
The tables of contents are “clickable.” This is true for the main table of contents that follows the title page and the intermediate
tables of contents at the beginning of sections. The Adobe navigation pane on the left can also be used to skip to specific
exhibits.
Attachment A
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 2
There are a number of links throughout the document in blue text. Links that are internal to the document are not underlined,
while underlined links will take you to the CalPERS website. Examples are shown below.
Internal Bookmarks CalPERS Website Links
Required Employer Contributions Required Employer Contribution Search Tool
Member Contribution Rates Public Agency PEPRA Member Contribution Rates
Summary of Key Valuation Results Pension Outlook Overview
Funded Status – Funding Policy Basis Interactive Summary of Public Agency Valuation Results
Projected Employer Contributions Public Agency Actuarial Valuation Reports
Further descriptions of general changes are included in the Highlights and Executive Summary section and in Appendix A -
Actuarial Methods and Assumptions. The effects of any changes on the required contributions are included in the Reconciliation of Required Employer Contributions section.
Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact Center at 888 CalPERS (or 888-225-7377).
Sincerely,
Nina Ramsey, ASA, MAAA
Senior Actuary, CalPERS
Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
~ ~
~p
California Public Employees’ Retirement System
Actuarial Valuation for the
Miscellaneous Plan
of the City of Carlsbad
as of June 30, 2024
(CalPERS ID: 3747905882)
(Rate Plan ID: 316)
Required Contributions for Fiscal Year
July 1, 2026 —June 30, 2027
CY Fin Job Instance ID: 470020 PY Fin Job Instance ID: 437819 Report ID: 473277
Table of Contents
Actuarial Certification.......................................................................................................................................................................................1
Highlights and Executive Summary .............................................................................................................................................................2
Introduction .......................................................................................................................................................................................................3 Purpose .............................................................................................................................................................................................................3
Summary of Key Valuation Results ..............................................................................................................................................................4
Changes Since the Prior Year’s Valuation ..................................................................................................................................................5
Subsequent Events .........................................................................................................................................................................................5
Assets ...................................................................................................................................................................................................................6
Reconciliation of the Market Value of Assets..............................................................................................................................................7
Asset Allocation................................................................................................................................................................................................8
CalPERS History of Investment Returns .....................................................................................................................................................9
Liabilities and Contributions ....................................................................................................................................................................... 10
Determination of Required Contributions.................................................................................................................................................. 11
Development of Accrued and Unfunded Liabilities ................................................................................................................................. 12
Required Employer Contributions .............................................................................................................................................................. 13
Member Contribution Rates ........................................................................................................................................................................ 14
Funded Status – Funding Policy Basis ..................................................................................................................................................... 15
Additional Employer Contributions............................................................................................................................................................. 16
Projected Employer Contributions ............................................................................................................................................................. 17
(Gain)/Loss Analysis 6/30/23 – 6/30/24 .................................................................................................................................................... 18
Schedule of Amortization Bases ................................................................................................................................................................ 19
Amortization Schedule and Alternatives ................................................................................................................................................... 21 Reconciliation of Required Employer Contributions................................................................................................................................ 23
Employer Contribution History .................................................................................................................................................................... 24
Funding History ............................................................................................................................................................................................. 24
Risk Analysis ................................................................................................................................................................................................... 25
Future Investment Return Scenarios......................................................................................................................................................... 26
Discount Rate Sensitivity............................................................................................................................................................................. 27 Mortality Rate Sensitivity ............................................................................................................................................................................. 27
Maturity Measures ........................................................................................................................................................................................ 28
Maturity Measures History........................................................................................................................................................................... 29
Funded Status – Termination Basis .......................................................................................................................................................... 30
Funded Status – Low-Default-Risk Basis ................................................................................................................................................. 31
Supplementary Information ......................................................................................................................................................................... 32
Normal Cost by Benefit Group.................................................................................................................................................................... 33
Summary of Valuation Data ........................................................................................................................................................................ 34
Status of PEPRA Transition ........................................................................................................................................................................ 35
Plan's Major Benefit Options....................................................................................................................................................................... 36
Appendix A - Actuarial Methods and Assumptions .............................................................................................................................. 39
Appendix B - Principal Plan Provisions.................................................................................................................................................... 65
Appendix C - Participant Data ..................................................................................................................................................................... 76
Appendix D - Glossary .................................................................................................................................................................................. 81
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 1
Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the
applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report is intended to be complete,
our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification
Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with
regard to pensions.
Actuarial Methods and Assumptions
It is our opinion that the assumptions and methods, as recommended by the Chief Actuary and adopted by the CalPERS Board
of Administration, are internally consistent and reasonable for this plan.
Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are
reasonable, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded
condition of the Miscellaneous Plan of the City of Carlsbad and satisfies the actuarial valuation requirements of Government
Code section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation
was based on the member and financial data as of June 30, 2024, provided by the various CalPERS databases and the benefits
under this plan with CalPERS as of the date this report was produced.
Nina Ramsey, ASA, MAAA
Senior Actuary, CalPERS
-
Highlights and Executive Summary
x Introduction 3
x Purpose 3
x Summary of Key Valuation Results 4
x Changes Since the Prior Year’s Valuation 5
x Subsequent Events 5
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 3
Introduction
This report presents the results of the June 30, 2024, actuarial valuation of the Miscellaneous Plan of the City of Carlsbad of the
California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions
for fiscal year (FY) 2026-27.
Purpose
This report documents the results of the actuarial valuation prepared by the CalPERS Actuarial Office using data as of June 30,
2024. This report contains actuarial information for the following rate plan(s).
x 316, Miscellaneous First Level
x 30365, Miscellaneous Second Level
x 26260, Miscellaneous PEPRA Level
The purpose of the valuation is to:
x Set forth the assets and accrued liabilities of this rate plan as of June 30, 2024; x Determine the minimum required employer contributions for this rate plan for FY July 1, 2026, through June 30, 2027;
x Determine the required member contribution rate for FY July 1, 2026, through June 30, 2027, for employees subject
to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and
x Provide actuarial information as of June 30, 2024, to the CalPERS Board of Administration (board) 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 an Agent Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available from CalPERS and details for ordering are available on the CalPERS
website (www.calpers.ca.gov).
The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact a
CalPERS 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; changes in plan provisions or applicable law; and
differences between the required contributions determined by the valuation and the actual contributions made by the agency.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of the Actuarial Standards of Practice:
x A “Scenario Test,” projecting future results under different investment income returns.
x A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 5.8% and
7.8%.
x 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 2021.
x Plan maturity measures indicating how sensitive a plan may be to the risks noted above. x The funded status on a termination basis.
x A low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 4
Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found.
Required Employer Contributions — page 13
Fiscal Year
2025-26
Fiscal Year
2026-27
Employer Normal Cost Rate 11.59% 11.33%
Unfunded Accrued Liability (UAL) Contribution Amount $9,296,961 $10,280,656
Paid either as
Option 1) 12 Monthly Payments of $774,747 $856,721
Option 2) Annual Prepayment in July $8,996,123 $9,947,987
Member Contribution Rates — page 14
Fiscal Year
2025-26
Fiscal Year
2026-27
Classic Member Contribution Rate 7.00%/8.00% 7.00%/8.00%
PEPRA Member Contribution Rate 8.50% 8.50%
Projected Employer Contributions — page 17
Fiscal Year Normal Cost
(% of payroll)
Annual
UAL Payment
2027-28 11.1% $10,750,000
2028-29 10.9% $12,224,000
2029-30 10.6% $12,273,000
2030-31 10.4% $12,260,000
2031-32 10.2% $12,500,000
Funded Status – Funding Policy Basis — page 15
June 30, 2023 June 30, 2024
Entry Age Accrued Liability (AL) $502,489,876 $523,908,484
Market Value of Assets (MVA) 383,790,810 411,316,849
Unfunded Accrued Liability (UAL) [AL – MVA] $118,699,066 $112,591,635
Funded Ratio [MVA ÷ AL] 76.4% 78.5%
Summary of Valuation Data — page 34
June 30, 2023 June 30, 2024
Active Member Count 581 572
Annual Covered Payroll $50,552,759 $50,931,380
Transferred Member Count 259 267
Separated Member Count 332 359
Retired Members and Beneficiaries Count 703 735
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 5
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. For rate plans that are not in a risk pool (non-pooled), benefit changes by contract
amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the
effective date of the amendment is after the valuation date.
Please refer to the Plan’s Major Benefit Options and Appendix B - Principal Plan Provisions for a summary of the plan provisions
used in this valuation. The effect of any mandated benefit changes or plan amendments on the unfunded liability is shown in the
(Gain)/Loss Analysis 6/30/23 – 6/30/24 and the effect on the employer contribution is shown in the Reconciliation of Required
Employer Contributions. It should be noted that no change in liability or contribution is shown for any plan changes which were
already included in the prior year’s valuation.
Board Policy
On April 16, 2024, the board took action to modify the Funding Risk Mitigation Policy to remove the automatic change to the
discount rate when the investment return exceeds various thresholds. Rather than an automatic change to the discount rate, a
board discussion would be placed on the calendar. The 95th percentile return in the Future Investment Return Scenarios exhibit in this report, which includes returns high enough to trigger a board discussion, does not reflect any change in the discount rate.
Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2024, actuarial valuation.
Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2024, as well as statutory changes, regulatory
changes and board actions through January 2025.
CalPERS will be completing an Asset Liability Management (ALM) review process in November 2025 that will review the capital
market assumptions and the CalPERS Total Fund Investment Policy and ascertain whether a change in the discount is
warranted. In addition, the Actuarial Office will be presenting the findings of its Experience Study which reviews economic
assumptions other than the discount rate as well as all demographic assumptions and makes recommendations to modify actuarial assumptions where appropriate. Any changes in actuarial assumptions will be reflected in the June 30, 2025, actuarial
valuations.
The 2024 annual benefit limit under Internal Revenue Code (IRC) section 415(b) and annual compensation limits under IRC
section 401(a)(17) and Government Code section 7522.10 were used for this valuation and are assumed to increase 2.3% per
year based on the price inflation assumption. The actual 2025 limits, determined in October 2024, are not reflected.
To the best of our knowledge, there have been no other subsequent events that could materially affect current or future
certifications rendered in this report.
Assets
x Reconciliation of the Market Value of Assets 7
x Asset Allocation 8
x CalPERS History of Investment Returns 9
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 7
Reconciliation of the Market Value of Assets
1. Market Value of Assets as of 6/30/23 including Receivables $383,790,810
2. Change in Receivables for Service Buybacks (54,091)
3. Employer Contributions 12,662,206
4. Employee Contributions 4,236,381
5. Benefit Payments to Retirees and Beneficiaries (25,402,964)
6. Refunds (78,467)
7. Transfers 0
8. Service Credit Purchase (SCP) Payments and Interest 132,361
9. Administrative Expenses (280,450)
10. Miscellaneous Adjustments 0
11. Investment Return (Net of Investment Expenses) 36,311,063
12. Market Value of Assets as of 6/30/24 including Receivables $411,316,849
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Planof the City of Carlsbad
CalPERS ID: 3747905882
Page 8
Asset Allocation
CalPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and ranges and
manages those asset class allocations within their policy ranges. CalPERSInvestment Belief No. 6 recognizes that strategic
asset allocation is the dominant determinant of portfolio risk and return.
The asset allocation shown below reflects the allocation of the Public Employees’ Retirement Fund (PERF) in its entirety. The
assets forCity of CarlsbadMiscellaneous Planare a subsetof the PERF and are invested accordingly.
On March 20, 2024, the board adopted changes to the strategic asset allocation. The new allocation was effective July 1, 2024.
The asset allocation as of June 30, 2024,is shown below, along with the strategic assetallocationtargets.
For more information see the Trust Level Review as of June 30, 2024, which is available on the CalPERS website.
31.8%
10.0%
7.3%
5.3%
6.4%
5.3%
5.3%
15.5%
13.2%
2.8%
(3.0%)
27%
10%
7%
5%
6%
5%
5%
17%
15%
8%
(5%)
(10%) 0% 10% 20% 30% 40%
Public Equities - Cap Weighted
Public Equities - Factor Weighted
Treasury
Mortgage-Backed Securities
Investment Grade Corporates
High Yield
Emerging Market Sovereign Bonds
Private Equity
Real Assets
Private Debt
Strategic Financing
Current Allocation Strategic Asset Allocation Target■
0
0
_____ Q
____ Q
0
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 9
CalPERS History of Investment Returns
The following is a chart with 20 years of historical annual returns of the PERF for each fiscal year ending on June 30 as reported
by the Investment Office. Investment returns reported are net of investment expenses but without reduction for administrative
expenses. The assumed rate of return, however, is net of both investment and administrative expenses. Also, the Investment
Office uses lagged private asset valuations for investment performance reporting purposes. This can lead to a timing difference
in private asset influence on performance in the returns below and those used for financial reporting purposes. The investment
gain or loss calculation in this report relies on final assets that have been audited and are appropriate for financial reporting.
Because of these differences, the effective investment return for funding purposes in a single year can be higher or lower than
the return reported by the Investment Office shown here.
History of Investment Returns (2005 through 2024)
* As reported by the Investment Office with lagged private valuations and without any reduction for administrative expenses.
The table below shows annualized investment returns of the PERF for various time periods ending on June 30, 2024. These
returns are the annual rates that if compounded over the indicated number of years would equate to the actual time-weighted
investment performance of the PERF. It should be recognized that the annual rate of return is volatile, as the chart above
illustrates, so when looking at investment returns, it is informative to look at average returns over longer time horizons.
PERF Realized Rates of Return as of June 30, 2024
1 year 3 year 5 year 10 year 20 year 30 year
9.3% 2.8% 6.6% 6.2% 6.7% 7.7%
25 %
20.7% 21.3%
20 % 18.8% 18.4%
15 %
11.1% r-11.2%
10 % , ' 9.3%
C ;, ' .._ 5 % ' ::, ' I ..... ' ,,
& '----1~/
ro 0 %
::,
§ -5 % -2.9%
<( -6.1% Actual Annual Return*
-10 % (Before Netting Administrative Expenses)
0 ---0 Rolling 5-Year Return
-15 % Discount Rate/Expected Return
(Net of Administrative Expenses)
-20 % ■ Discount Rate Change
-23.6%
Discount Rate 7.75% 7.50% 7.375% 7.25% 7.00% 6.80% Change
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year Ending
Liabilities and Contributions
x Determination of Required Contributions 11
x Development of Accrued and Unfunded Liabilities 12
x Required Employer Contributions 13
x Member Contribution Rates 14
x Funded Status – Funding Policy Basis 15
x Additional Employer Contributions 16
x Projected Employer Contributions 17
x (Gain)/Loss Analysis 6/30/23 – 6/30/24 18
x Schedule of Amortization Bases 19
x Amortization Schedule and Alternatives 21
x Reconciliation of Required Employer Contributions 23
x Employer Contribution History 24
x Funding History 24
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 11
Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex
calculations based on a set of actuarial assumptions and methods. See Appendix A for information on the assumptions and
methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required
contributions for the fiscal year that begins two years after the valuation date.
Contribution Components
Two components comprise required contributions:
x Normal Cost — expressed as a percentage of pensionable payroll
x Unfunded Accrued Liability (UAL) Contribution — expressed as a dollar amount
Normal Cost represents the value of benefits allocated to the upcoming year for active employees. If all plan experience exactly
matched the actuarial assumptions, normal cost would be sufficient to fully fund all benefits. The employer and employees each
pay a share of the normal cost with contributions payable as part of the regular payroll reporting process. The contribution rate
for Classic members is set by statute based on benefit formula whereas for PEPRA members it is based on 50% of the total
normal cost.
When plan experience differs from the actuarial assumptions, UAL emerges. The new UAL may be positive or negative. If the
total UAL is positive (i.e., accrued liability exceeds assets), the employer is required to make contributions to pay off the UAL
over time. This is called the UAL Contribution component. There is an option to prepay this amount during July of each fiscal year, otherwise it is paid monthly.
In measuring the UAL each year, plan experience is split by source. Common sources of UAL include investment experience
different than expected, non-investment experience different than expected, assumption changes, and benefit changes. Each
source of UAL (positive or negative) forms a base that is amortized, or paid off, over a specified period of time in accordan ce with the CalPERS Actuarial Amortization Policy. The UAL Contribution is the sum of the payments on all bases. See the
Schedule of Amortization Bases section of this report for an inventory of existing bases and Appendix A for more information on
the amortization policy.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 12
Development of Accrued and Unfunded Liabilities
June 30, 2023 June 30, 2024
1. Present Value of Projected Benefits
a) Active Members $236,539,905 $242,867,541
b) Transferred Members 28,083,261 28,261,128
c) Separated Members 12,272,619 13,068,955
d) Members and Beneficiaries Receiving Payments 310,865,127 324,762,019
e) Total $587,760,912 $608,959,643
2. Present Value of Future Employer Normal Costs $47,069,044 $46,308,590
3. Present Value of Future Employee Contributions $38,201,992 $38,742,569
4. Entry Age Accrued Liability
a) Active Members [(1a) - (2) - (3)] $151,268,869 $157,816,382
b) Transferred Members (1b) 28,083,261 28,261,128
c) Separated Members (1c) 12,272,619 13,068,955
d) Members and Beneficiaries Receiving Payments (1d) 310,865,127 324,762,019
e) Total $502,489,876 $523,908,484
5. Market Value of Assets (MVA) $383,790,810 $411,316,849
6. Unfunded Accrued Liability (UAL) [(4e) - (5)] $118,699,066 $112,591,635
7. Funded Ratio [(5) ÷ (4e)] 76.4% 78.5%
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 13
Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the
employees.
Fiscal Year
Required Employer Contributions 2026-27
Employer Normal Cost Rate 11.33%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount $10,280,656
Paid either as
1) Monthly Payment $856,721
Or
2) Annual Prepayment Option* $9,947,987
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) and the 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).
For Member Contribution Rates see the following page.
Fiscal Year Fiscal Year
2025-26 2026-27
Normal Cost Contribution as a Percentage of Payroll
Total Normal Cost1 19.74% 19.50%
Offset due to Employee Contributions2 (8.15%) (8.17%)
Employer Normal Cost 11.59% 11.33%
Projected Annual Payroll for Contribution Year $54,919,200 $55,330,525
Estimated Employer Contributions Based on Projected Payroll
Total Normal Cost $10,841,050 $10,789,452
Expected Employee Contributions (4,475,915) (4,520,504)
Employer Normal Cost $6,365,135 $6,268,948
Unfunded Liability Contribution $9,296,961 $10,280,656
% of Projected Payroll (illustrative only) 16.93% 18.58%
Estimated Total Employer Contribution $15,662,096 $16,549,604
% of Projected Payroll (illustrative only) 28.52% 29.91%
1 The Total Normal Cost is a blended rate for all benefit groups in the plan. For a breakout of normal cost by benefit
group, see Normal Cost by Benefit Group.
2 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use
of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each
benefit formula, see Member Contribution Rates.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 14
Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the
employees.
Classic Members
Each member contributes toward their retirement based upon the retirement formula. The standard Classic member contribution
rate above the breakpoint, if any, is as described below.
Benefit Formula
Percent Contributed
above the Breakpoint
Miscellaneous, 1.5% at age 65 2%
Miscellaneous, 2% at age 60 7%
Miscellaneous, 2% at age 55 7%
Miscellaneous, 2.5% at age 55 8% Miscellaneous, 2.7% at age 55 8%
Miscellaneous, 3% at age 60 8%
Auxiliary organizations of the CSU system may elect reduced contribution rates for Miscellaneous members, in which case the
contribution rate above the breakpoint is 6% if members are not covered by Social Security and 5% if they are.
PEPRA Members
The California Public Employees’ Pension Reform Act of 2013 (“PEPRA”) established new benefit formulas, final compensation
period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or
after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial
contribution rate of at least 50% of the normal cost rate.” The normal cost rate for the plan is dependent on the benefit levels,
actuarial assumptions, and demographics of the plan, particularly members’ entry age into the plan. Should the total normal cost
rate of the plan change by more than 1% from the base total normal cost rate established for the plan, the new member rate
shall be 50% of the new normal cost rate rounded to the nearest quarter percent.
The table below shows the determination of the PEPRA member contribution rates effective July 1, 2026, based on 50% of the
total normal cost rate for each respective rate plan as of the June 30, 2024, valuation.
Basis for Current Rate Rates Effective July 1, 2026
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change
in
Normal
Cost
Adj.
Needed
Member
Rate
26260 Miscellaneous PEPRA
Level 16.980% 8.50% 16.85% (0.130%) No 8.50%
For a description of the methodology used to determine the Total Normal Cost for this purpose, see PEPRA Normal Cost Rate
Methodology in Appendix A.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 15
Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this
purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method
and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s
projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected
benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the
valuation date. The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute
measure of funded status and can be viewed as employer debt. The Funded Ratio equals the assets divided by the funding
target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.
June 30, 2023 June 30, 2024
1. Present Value of Benefits $587,760,912 $608,959,643
2. Entry Age Accrued Liability 502,489,876 523,908,484
3. Market Value of Assets (MVA) 383,790,810 411,316,849
4. Unfunded Accrued Liability (UAL) [(2) – (3)] $118,699,066 $112,591,635
5. Funded Ratio [(3) ÷ (2)] 76.4% 78.5%
A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the
normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the
actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward
the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under
current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.
Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation
date that future investment returns will average something greater/less than the expected return, calculated normal costs and
accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual average
future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund
all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in
this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative
purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8% 1. Present Value of Benefits $708,608,300 $608,959,643 $530,828,067
2. Entry Age Accrued Liability 591,794,688 523,908,484 467,753,513
3. Market Value of Assets (MVA) 411,316,849 411,316,849 411,316,849
4. Unfunded Accrued Liability (UAL) [(2) – (3)] $180,477,839 $112,591,635 $56,436,664
5. Funded Ratio [(3) ÷ (2)] 69.5% 78.5% 87.9%
The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the
expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate
for assessing the sufficiency of plan assets to cover estimated termination liabilities.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 16
Additional Employer Contributions
The CalPERS amortization policy provides a systematic methodology for paying down a plan’s unfunded accrued liability (UAL)
over a reasonable period of years. The projected schedule of required payments for this plan under the amortization policy is
provided in Amortization Schedule and Alternatives. Certain aspects of the policy such as 1) layered amortization bases
(positive and negative) with different remaining payoff periods, and 2) the phase-in of required payments toward investment
gains and losses, can result in volatility in year-to-year projected UAL payments. Provided below is information on how an
Additional Discretionary Payment (ADP), together with your required UAL payment of $10,280,656 for FY 2026-27, may better
accomplish your agency’s specific objectives with regard to either smoothing out projected future payments or achieving a
greater reduction in UAL than would otherwise occur when making only the minimum required payment. Such additional
payments are allowed at any time and can also result in significant long-term savings.
Fiscal Year 2026-27 Employer Contribution Versus Agency Funding Objectives
The interest-to-payment ratio for the FY 2026-27 minimum required UAL payment is 69%, which means the required payment of $10,280,656 includes $7,127,576 of interest cost and results in a $3,153,080 reduction in the UAL, as can be seen in
Amortization Schedule and Alternatives (see columns labelled Current Amortization Schedule). If the interest-to-payment ratio is
close to 100%, and the reduction in the UAL is small, it may indicate that required contributions will be increasing in the coming
years, which would be shown in Projected Employer Contributions. Another measure that can be used to evaluate how well the
FY 2026-27 required UAL payment meets the agency’s specific funding objectives is the number of years required to pay off the existing UAL if the annual payment were held constant in future years. With an annual payment of $10,280,656 it would take
18.5 years to pay off the current UAL. A result that is longer than the agency’s target funding period suggests that the option of
supplementing the minimum payment with an ADP should be weighed against the agency’s budget constraints.
Provided below are select ADP options for consideration. Making such an ADP during FY 2026-27 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 Amortization Schedule and Alternatives. Agencies considering
making an ADP should contact CalPERS for additional information.
Fiscal Year 2026-27 Employer Contributions — Illustrative Scenarios
If the Annual UAL
Payment Each
Year Were…
The Current
UAL Would be
Paid Off in…
This Would
Require an ADP1
in FY 2026-27 of…
Plus the Estimated
Normal Cost of…
Estimated Total
Contribution
$10,280,656 18.5 years $0 $6,268,948 $16,549,604
11,526,088 15 years 1,245,432 6,268,948 17,795,036
14,997,611 10 years 4,716,955 6,268,948 21,266,559
25,791,198 5 years 15,510,542 6,268,948 32,060,146
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.
The calculations above are based on the projected UAL as of June 30, 2026, as determined in the June 30, 2024, 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.
Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.
Fiscal
Year ADP Fiscal
Year ADP
2017-18 N/A 2021-22 $3,200,000
2018-19 $5,779,350 2022-23 0
2019-20 0 2023-24 0
2020-21 5,403,140 2024-25 0
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 17
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. In particular, the investment return beginning with FY 2024-25 is
assumed to be 6.80% per year, net of investment and administrative expenses. The actual long-term cost of the plan will
depend on the actual benefits and expenses paid and the actual investment experience of the fund.
The projected normal cost percentages below reflect that the normal cost is expected to continue to decline over time as new
employees are hired into lower cost benefit tiers. Future contribution requirements may differ significantly from those shown
below. The actuarial valuation does not include payroll beyond the valuation date. For the most realistic projections, the
employer should apply projected payroll amounts to the rates below based on the most recent information available, such as
current payroll as well as any plans to fill vacancies or add or remove positions.
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2024-25 and Beyond)
2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
Normal Cost % 11.33% 11.1% 10.9% 10.6% 10.4% 10.2%
UAL Payment $10,280,656 $10,750,000 $12,224,000 $12,273,000 $12,260,000 $12,500,000
Total as a % of Payroll* 29.91% 30.0% 31.8% 31.1% 30.3% 29.9%
Projected Payroll $55,330,525 $56,879,780 $58,472,414 $60,109,641 $61,792,711 $63,522,906
*Illustrative only and based on the projected payroll shown.
The required UAL payments are expected to vary significantly from the projections above due to experience, particularly
investment experience. For projected contributions under alternate investment return scenarios, please see the Future
Investment Return Scenarios exhibit. Our online pension plan projection tool, Pension Outlook, is available in the Employers
section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.
For ongoing plans, investment gains and losses are amortized using an initial 5-year ramp. For more information, please see
Amortization of Unfunded Actuarial Accrued Liability in Appendix A. 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 investment loss, the relatively small
amortization payments during the initial ramp period could result in contributions that are less than interest on the UAL (i.e.
negative amortization) while the contribution impact of the increase in the UAL is phased in.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 18
(Gain)/Loss Analysis 6/30/23 – 6/30/24
To calculate the cost requirements of the plan, assumptions are made about future events that affect the amount and timing of
benefits to be paid and assets to be accumulated. Each year, actual experience is compared to the expected experience based
on the actuarial assumptions. This results in actuarial gains or losses, as shown below.
1. Total (Gain)/Loss for the Year
a) Unfunded Accrued Liability (UAL) as of 6/30/23 $118,699,066
b) Expected payment on the UAL during 2023-24 6,355,367
c) Interest through 6/30/24 [0.068 x (1a) - ((1.068)½ - 1) x (1b)] 7,859,007
d) Expected UAL before all other changes [(1a) - (1b) + (1c)] 120,202,706
e) Change due to plan changes 0
f) Change due to AL Significant Increase 0
g) Change due to assumption changes 0
h) Change due to method changes 0 i) Change due to discount rate change with Funding Risk Mitigation 0
j) Expected UAL after all other changes [(1d) + (1e) + (1f) + (1g) + (1h) + (1i)] 120,202,706
k) Actual UAL as of 6/30/24 112,591,635
l) Total (Gain)/Loss for 2023-24 [(1k) - (1j)] ($7,611,071)
2. Investment (Gain)/Loss for the Year
a) Market Value of Assets as of 6/30/23 $383,790,810
b) Prior fiscal year receivables (416,532)
c) Current fiscal year receivables 362,440 d) Contributions received 16,898,587
e) Benefits and refunds paid (25,481,430)
f) Transfers, SCP payments and interest, and miscellaneous adjustments 132,361
g) Expected return at 6.8% per year 25,999,551 h) Expected assets as of 6/30/24 [(2a) + (2b) + (2c) + (2d) + (2e) + (2f) + (2g)] 401,285,788
i) Actual Market Value of Assets as of 6/30/24 411,316,849
j) Investment (Gain)/Loss [(2h) - (2i)] ($10,031,061)
3. Non-Investment (Gain)/Loss for the Year
a) Total (Gain)/Loss (1l) ($7,611,071)
b) Investment (Gain)/Loss (2j) (10,031,061)
c) Non-Investment (Gain)/Loss [(3a) - (3b)] $2,419,990
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CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 21
Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS
amortization policy. Each year, many agencies express a desire for a more stable pattern of payments or indicate 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 contact a CalPERS 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:
x When a negative payment would be required on a positive unfunded actuarial liability; or
x 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 an appropriate 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 Actuarial Amortization Policy.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 22
Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 15 Year Amortization 10 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2026 109,873,071 10,280,656 109,873,071 11,526,088 109,873,071 14,997,611
6/30/2027 106,719,991 10,750,380 105,432,910 11,526,088 101,845,296 14,997,610
6/30/2028 102,867,069 12,224,068 100,690,818 11,526,088 93,271,633 14,997,611
6/30/2029 97,229,178 12,272,969 95,626,263 11,526,088 84,114,960 14,997,610
6/30/2030 91,157,373 12,260,450 90,217,319 11,526,088 74,335,634 14,997,610
6/30/2031 84,685,624 12,500,399 84,440,566 11,526,088 63,891,314 14,997,610
6/30/2032 77,525,824 12,221,412 78,270,994 11,526,088 52,736,780 14,997,610
6/30/2033 70,167,475 11,919,892 71,681,891 11,526,088 40,823,738 14,997,611
6/30/2034 62,620,362 11,412,612 64,644,729 11,526,088 28,100,608 14,997,610
6/30/2035 55,084,285 10,729,227 57,129,040 11,526,088 14,512,306 14,997,610
6/30/2036 47,741,996 9,571,415 49,102,284 11,526,088
6/30/2037 41,096,959 8,946,737 40,529,709 11,526,088
6/30/2038 34,645,628 8,282,460 31,374,199 11,526,089
6/30/2039 28,442,097 7,786,033 21,596,113 11,526,088
6/30/2040 22,329,756 7,420,363 11,153,118 11,526,088
6/30/2041 16,179,674 6,401,341
6/30/2042 10,664,483 4,899,375
6/30/2043 6,326,455 6,538,017
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 176,417,806 172,891,321 149,976,103
Interest Paid 66,544,735 63,018,250 40,103,032
Estimated Savings 3,526,485 26,441,703
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 23
Reconciliation of Required Employer Contributions
Normal Cost (% of Payroll)
1. For Period 7/1/25 – 6/30/26
a) Employer Normal Cost 11.59%
b) Employee contribution 8.15%
c) Total Normal Cost 19.74%
2. Changes since the prior year annual valuation
a) Effect of demographic experience (0.24%)
b) Effect of plan changes 0.00%
c) Effect of discount rate change due to Funding Risk Mitigation 0.00%
d) Effect of assumption changes 0.00%
e) Effect of method changes 0.00%
f) Net effect of the changes above [sum of (a) through (e)] (0.24%)
3. For Period 7/1/26 – 6/30/27
a) Employer Normal Cost 11.33%
b) Employee contribution 8.17%
c) Total Normal Cost 19.50%
Employer Normal Cost Change [(3a) – (1a)] (0.26%)
Employee Contribution Change [(3b) – (1b)] 0.02%
Unfunded Liability Contribution ($)
1. For Period 7/1/25 – 6/30/26 9,296,961
2. Changes since the prior year annual valuation
a) Effect of adjustments to prior year’s amortization schedule 0
b) Effect of elimination of amortization bases 76,221
c) Effect of progression of amortization bases1 905,193
d) Effect of investment (gain)/loss during prior year2 (245,935)
e) Effect of non-investment (gain)/loss during prior year 248,216
f) Effect of re-amortizing existing bases due to Funding Risk Mitigation 0
g) Effect of Golden Handshake 0
h) Effect of plan changes 0
i) Effect of AL Significant Increase (Government Code section 20791) 0
j) Effect of assumption changes 0
k) Effect of adjustments to the amortization schedule (e.g., Fresh Start) 0
l) Effect of method change 0
m) Net effect of the changes above [sum of (a) through (l)] 983,695
3. For Period 7/1/26 – 6/30/27 [(1) + (2m)] 10,280,656
The amounts shown for the period 7/1/25 – 6/30/26 may be different if a prepayment of unfunded actuarial liability is made or a
plan change became effective after the prior year’s actuarial valuation was performed.
1 Includes scheduled escalation in individual amortization base payments due to the 5-year ramp and payroll growth assumption used in the pre-2019 amortization policy.
2 The unfunded liability contribution for the investment (gain)/loss during the year prior to the valuation date is 20% of the
“full” annual requirement due to the 5-year ramp. Increases to this amount that occur during the ramp period w ill be included in line c) for each of the next four years.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 24
Employer Contribution History
The table below provides a 10-year history of the employer contribution requirements for the plan, as determined by the annual
actuarial valuation. Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected.
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2015 2017-18 12.255% $6,649,209
06/30/2016 2018-19 12.343% 7,126,004
06/30/2017 2019-20 12.410% 5,596,719
06/30/2018 2020-21 12.787% 5,675,255
06/30/2019 2021-22 12.15% 6,577,258
06/30/2020 2022-23 11.72% 7,227,710
06/30/2021 2023-24 12.51% 6,360,246
06/30/2022 2024-25 12.13% 8,103,356
06/30/2023 2025-26 11.59% 9,296,961
06/30/2024 2026-27 11.33% 10,280,656
Funding History
The table below shows the recent history of the actuarial accrued liability, market value of assets, unfunded accrued liability,
funded ratio and annual covered payroll.
Valuation
Date
Accrued
Liability
(AL)
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
6/30/2015 $325,919,906 $242,072,220 $83,847,686 74.3% $34,274,855
6/30/2016 344,920,666 241,133,786 103,786,880 69.9% 36,249,206
6/30/2017 363,173,103 269,810,408 93,362,695 74.3% 36,940,152
6/30/2018 392,462,997 300,350,224 92,112,773 76.5% 36,242,013
6/30/2019 410,200,348 322,146,603 88,053,745 78.5% 39,277,286
6/30/2020 430,502,885 330,903,112 99,599,773 76.9% 42,888,826
6/30/2021 456,814,169 404,515,911 52,298,258 88.6% 43,167,428
6/30/2022 481,393,865 369,436,837 111,957,028 76.7% 46,150,095
6/30/2023 502,489,876 383,790,810 118,699,066 76.4% 50,552,759
6/30/2024 523,908,484 411,316,849 112,591,635 78.5% 50,931,380
Risk Analysis
x Future Investment Return Scenarios 26
x Discount Rate Sensitivity 27
x Mortality Rate Sensitivity 27
x Maturity Measures 28
x Maturity Measures History 29
x Funded Status – Termination Basis 30
x Funded Status – Low-Default-Risk Basis 31
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 26
Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed
to determine the effects of various future investment returns on required employer UAL contributions. The CalPERS Funding
Risk Mitigation Policy stipulates that when the investment return exceeds the discount rate by at least 2%, the board will
consider adjustments to the discount rate. The projections below use a discount rate of 6.8% for all scenarios even though an
annual return of 10.8% is high enough to trigger a board discussion on the discount rate. The projections also assume that all
other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits, or funding will
occur.
The employer normal cost rates are not affected by investment returns, and since no future assumption changes are being
reflected, the projected employer normal cost rates for every future investment return scenario are the same as those shown
earlier in this report. See Projected Employer Contributions for more information on projecting the employer normal cost.
The first table shows projected UAL contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the
20-year period ending June 30, 2044.
Assumed Annual Return
FY 2024-25
through FY 2043-44
Projected Employer UAL Contributions
2027-28 2028-29 2029-30 2030-31 2031-32
3.0% (5th percentile) $11,130,000 $13,368,000 $14,570,000 $16,108,000 $18,301,000
10.8% (95th percentile) $10,351,000 $10,989,000 $9,726,000 $1,957,000 $0
Required UAL contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns
will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single
year investment return.
The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16%
probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.
The following table shows the effect of one and two standard deviation investment losses in FY 2024-25 on the FY 2027-28
contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution
amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However,
the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically,
significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the
impact of these single year negative returns in years beyond FY 2027-28.
Assumed Annual Return for
Fiscal Year 2024-25
Required Employer
UAL Contributions
Projected Employer
UAL Contributions
2026-27 2027-28
(17.2%) (2 standard deviation loss) $10,280,656 $13,146,000
(5.2%) (1 standard deviation loss) $10,280,656 $11,949,000
x Without investment gains (returns higher than 6.8%) in FY 2025-26 or later, projected contributions rates would
continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in
FY 2024-25.
x The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2027-28 as well as to model other investment return scenarios.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 27
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 4.5% and 2.3%, 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, 2024, assuming
alternate discount rates by changing the two components independently. Results are shown using the current discount rate of
6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the
impact of a 1.0% increase or decrease to the 6.8% assumption.
Sensitivity to the Discount Rate Due to Varying the Real Rate of Return Assumption
As of June 30, 2024
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 24.67% 19.50% 15.60%
b) Accrued Liability $591,794,688 $523,908,484 $467,753,513
c) Market Value of Assets $411,316,849 $411,316,849 $411,316,849
d) Unfunded Liability/(Surplus) [(b) - (c)] $180,477,839 $112,591,635 $56,436,664
e) Funded Ratio 69.5% 78.5% 87.9%
Sensitivity to the Discount Rate Due to Varying the Price Inflation Assumption
As of June 30, 2024
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3% Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 20.56% 19.50% 17.67%
b) Accrued Liability $541,412,445 $523,908,484 $487,597,969
c) Market Value of Assets $411,316,849 $411,316,849 $411,316,849
d) Unfunded Liability/(Surplus) [(b) - (c)] $130,095,596 $112,591,635 $76,281,120
e) Funded Ratio 76.0% 78.5% 84.4%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2024, plan costs and funded status under two different longevity
scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality
assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.
As of June 30, 2024 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 19.80% 19.50% 19.22%
b) Accrued Liability $534,806,469 $523,908,484 $513,894,539 c) Market Value of Assets $411,316,849 $411,316,849 $411,316,849
d) Unfunded Liability/(Surplus) [(b) - (c)] $123,489,620 $112,591,635 $102,577,690
e) Funded Ratio 76.9% 78.5% 80.0%
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 28
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.
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 increases.
A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2023 June 30, 2024
1. Retiree Accrued Liability $310,865,127 $324,762,019
2. Total Accrued Liability $502,489,876 $523,908,484
3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 62% 62%
Another measure of the maturity level of CalPERS and its plans is 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 declines. A mature plan will often have a ratio near or below one.
To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even
though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support
ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.
For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2023, was 0.78 and was calculated
consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree
with service from more than one CalPERS agency is counted as a retiree more than once.
Support Ratio June 30, 2023 June 30, 2024
1. Number of Actives 581 572
2. Number of Retirees 703 735
3. Support Ratio [(1) ÷ (2)] 0.83 0.78
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 29
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 increases, investment
return) are exactly realized each 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
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
a higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For
example, a plan with an AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan
with an AVR 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 a plan matures.
Liability Volatility Ratio
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 changes in liability. For
example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a
change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a
longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the
funded ratio approaches 100%.
Contribution Volatility June 30, 2023 June 30, 2024
1. Market Value of Assets without Receivables $383,374,278 $410,954,409
2. Payroll 50,552,759 50,931,380
3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 7.6 8.1
4. Accrued Liability $502,489,876 $523,908,484
5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 9.9 10.3
Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
6/30/2017 56% 0.98 7.3 9.8
6/30/2018 58% 0.88 8.3 10.8
6/30/2019 59% 0.89 8.2 10.4
6/30/2020 59% 0.89 7.7 10.0
6/30/2021 60% 0.82 9.4 10.6
6/30/2022 62% 0.81 8.0 10.4
6/30/2023 62% 0.83 7.6 9.9
6/30/2024 62% 0.78 8.1 10.3
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 30
Funded Status – Termination Basis
The funded status measured on a termination basis is an estimated range for the financial position of the plan had the contract
with CalPERS been terminated as of June 30, 2024. The accrued liability on a termination basis (termination liability) is
calculated differently from the plan’s ongoing funding liability. For the 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. Unlike the actuarial cost method
used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.
A more conservative investment policy and asset allocation strategy was adopted by the 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 remainder of the PERF and
consequently, a lower discount rate assumption. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where
the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the
following analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as demonstrated below.
Valuation 20-Year Valuation 20-Year
Date Treasury Rate Date Treasury Rate
06/30/2015 2.83% 06/30/2020 1.18%
06/30/2016 1.86% 06/30/2021 2.00%
06/30/2017 2.61% 06/30/2022 3.38%
06/30/2018 2.91% 06/30/2023 4.06%
06/30/2019 2.31% 06/30/2024 4.61%
As Treasury rates are variable, the table below shows a range for the termination liability using discount rates 1% below and
above the 20-year Treasury rate on the valuation date. The price inflation assumption is the 20-year Treasury breakeven
inflation rate, that is, the difference between the 20-year inflation indexed bond and the 20-year fixed-rate bond.
The Market Value of Assets (MVA) also varies with interest rates and will fluctuate depending on other market conditions on the
date of termination. Since it is not possible to approximate how the MVA will change in different interest rate environments, the
results below use the MVA as of the valuation date.
Discount Rate: 3.61%
Price Inflation: 2.45%
Discount Rate: 5.61%
Price Inflation: 2.45%
1. Termination Liability1 $774,143,697 $591,395,414
2. Market Value of Assets (MVA) 411,316,849 411,316,849
3. Unfunded Termination Liability [(1) – (2)] $362,826,848 $180,078,565
4. Funded Ratio [(2) ÷ (1)] 53.1% 69.6%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial
assumptions can be found in Appendix A.
In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Terminate. The
completed Resolution will allow a CalPERS actuary to provide a preliminary termination valuation with a more up-to-date
estimate of the plan’s assets and liabilities. Before beginning this process, please consult with a CalPERS actuary.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 31
Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or
Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the
valuation date using a discount rate based on the yields of high quality fixed income securities with cash flows that replicate
expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued
plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial
characteristics to accrued plan costs.
As permitted in ASOP No. 4, the Actuarial Office uses the Entry Age Actuarial Cost Method to calculate the LDROM. This
methodology is in line with the measure of “benefit entitlements” calculated by the Bureau of Economic Analysis and used by the
Federal Reserve to report the indebtedness due to pensions of plan sponsors and, conversely, the household wealth due to
pensions of plan members.
As shown below, the discount rate used for the LDROM is 5.35%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2024.
Selected Measures on a Low-Default-Risk Basis June 30, 2024
Discount Rate 5.35%
1. Accrued Liability – Low-Default-Risk Basis (LDROM)
a) Active Members $200,354,894
b) Transferred Members 37,418,486
c) Separated Members 16,448,642
d) Members and Beneficiaries Receiving Payments 372,776,635
e) Total $626,998,657
2. Market Value of Assets (MVA) 411,316,849
3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $215,681,808
4. Unfunded Accrued Liability – Funding Policy Basis 112,591,635
5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $103,090,173
The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present
value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued plan
costs at the levels anticipated by the funding policy.
Benefit security for members of the plan relies on a combination of the assets in the plan, the investment income generated from
those assets and the ability of the plan sponsor to make necessary future contributions. If future returns fall short of 6.8%,
benefit security could be at risk without higher than currently anticipated future contributions.
The funded status on a low-default-risk basis is not appropriate for assessing the sufficiency of plan assets to cover the cost of
settling the plan’s benefit obligations (see Funded Status – Termination Basis), nor is it appropriate for assessing the need for
future contributions (see Funded Status – Funding Policy Basis).
1 This index is based on a yield curve of hypothetical AA-rated zero-coupon corporate bonds whose maturities range
from 6 months to 30 years. The index represents the single discount rate that would produce the same present value
as discounting a standardized set of liability cash flows for a fully open pension plan using the yield curve. The liability
cash flows are reasonably consistent with the pattern of benefits expected to be paid from the entire Public
Employees’ Retirement Fund for current and former plan members. A different index, hence a different discount rate,
may be needed to measure the LDROM for a subset of the fund, such as a single rate plan or a group of retirees.
Supplementary Information
x Normal Cost by Benefit Group 33
x Summary of Valuation Data 34
x Status of PEPRA Transition 35
x Plan's Major Benefit Options 36
CalPERS Actuarial Valuation - June 30, 2024 Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 33
Normal Cost by Benefit Group
The table below displays the Total Normal Cost broken out by benefit group for FY 2026-27. The Total Normal Cost is the annual cost of service accrual for the fiscal year for active employees and can be viewed as the long-term contribution rate for
the benefits contracted. Generally, the normal cost for a benefit group subject to more generous benefit provisions will exceed
the normal cost for a group with less generous benefits. However, based on the characteristics of the members (particularly
when the number of actives is small), this may not be the case. Future measurements of the Total Normal Cost for each group
may differ significantly from the current values due to such factors as: changes in the demographics of the group, changes in economic and demographic assumptions, changes in plan benefits or applicable law.
Rate
Plan
Identifier Benefit Group Name
Total
Normal
Cost
FY 2026-27
Offset due to
Employee
Contributions
FY 2026-27
Employer
Normal
Cost1
FY 2026-27
Number
of
Actives
Payroll on
6/30/2024
316 Miscellaneous First Level 23.96% 8.00% 15.96% 157 $15,860,128
30365 Miscellaneous Second Level 20.98% 7.00% 13.98% 47 5,972,758
26260 Miscellaneous PEPRA Level 16.85% 8.50% 8.35% 368 29,098,494
Plan Total 19.50% 8.17% 11.33% 572 $50,931,380
1 The employer normal cost for individual rate plans is provided for illustrative purposes only. The employer normal cost rate for contribution purposes is the blended rate shown in the Plan Total row and is the employer normal cost contribution rate that applies to the covered payroll of members in every rate plan shown above.
Note that if a Benefit Group above has multiple bargaining units, each of which has separately contracted for different benefits
such as Employer Paid Member Contributions, then the Normal Cost shown for the respective benefit level does not reflect
those differences. Additionally, if a Second Level Benefit Group amended to the same benefit formula as a First Level Benefit
Group, their Normal Costs may be dissimilar due to demographic or other population differences. For questions in these
situations, please contact a CalPERS actuary.
CalPERS Actuarial Valuation - June 30, 2024 Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 34
Summary of Valuation Data
June 30, 2023 June 30, 2024
1. Active Members
a) Counts 581 572
b) Average Attained Age 44.71 44.70
c) Average Entry Age to Rate Plan 36.08 35.78
d) Average Years of Credited Service 8.30 8.59
e) Average Annual Covered Payroll $87,010 $89,041
f) Annual Covered Payroll $50,552,759 $50,931,380
g) Projected Annual Payroll for Contribution Year $54,919,200 $55,330,525
h) Present Value of Future Payroll $466,393,279 $471,745,872
2. Transferred Members
a) Counts 259 267
b) Average Attained Age 46.00 45.43
c) Average Years of Credited Service 3.26 3.18
d) Average Annual Covered Payroll $115,098 $117,005
3. Separated Members
a) Counts 332 359
b) Average Attained Age 47.02 46.84
c) Average Years of Credited Service 2.64 2.67
d) Average Annual Covered Payroll $61,798 $62,664
4. Retired Members and Beneficiaries Receiving Payments
a) Counts 703 735
b) Average Attained Age 69.52 69.90
c) Average Annual Benefits $35,273 $35,653
d) Total Annual Benefits $24,796,766 $26,205,223
5. Active to Retired Ratio [(1a) ÷ (4a)] 0.83 0.78
Counts of members included in the valuation are counts of the records 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.
Average Annual Benefits represents benefit amounts payable by this plan only. Some members may have service with
another agency and would therefore have a larger total benefit than would be included as part of the average shown here.
CalPERS Actuarial Valuation - June 30, 2024 Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 35
Status of PEPRA Transition
The California Public Employees' Pension Reform Act of 2013 (PEPRA), which took effect in January 2013, changed
CalPERS retirement benefits and placed compensation limits on new members joining CalPERS on or after January 1, 2013. One of the objectives of PEPRA was to improve the ability of employers to manage the costs of retirement benefits for their
members. While such changes can reduce future benefit costs in a meaningful way, the full impact on employer contributions
will not occur until all active members are subject to the rules and provisions of PEPRA. The table below illustrates the status
of this transition as of June 30, 2024.
Classic PEPRA
PEPRA
as a Percent
of Total
Active Members
Count 204 368 64.3%
Average Attained Age 52.31 40.48
Average Entry Age 34.62 36.42
Average Years of Credited Service 17.13 3.86
Average Annual Covered Payroll $107,024 $79,072
Annual Covered Payroll $21,832,886 $29,098,494 57.1%
Present Value of Future Payroll $155,059,260 $316,686,612 67.1%
Transferred Members
Count 142 125 46.8%
Separated Members
Count 162 197 54.9%
Retired Members and Beneficiaries Receiving Payments
Count 714 21 2.9%
Average Annual Benefit $36,481 $7,505
Total Annual Benefits $26,047,623 $157,601 0.6%
Accrued Liabilities
Active Members $132,608,016 $25,208,366 16.0%
Transferred Members 24,795,355 3,465,773 12.3%
Separated Members 10,678,639 2,390,316 18.3%
Retired Members and Beneficiaries 322,460,376 2,301,643 0.7%
Total $490,542,386 $33,366,098 6.4%
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2%
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2%
Appendix A - Actuarial Methods and Assumptions
x Actuarial Data 40
x Actuarial Methods 40
x Actuarial Assumptions 44
x Miscellaneous 64
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 40
Actuarial Data
As stated in the Actuarial Certification, the data which serves as the basis of this valuation has been obtained from the various
CalPERS databases. We have reviewed the valuation data and believe that it is reasonable and appropriate in aggregate. We
are unaware of any potential data issues that would have a material effect on the results of this valuation, except that data does
not always contain the latest salary information for former members now in reciprocal systems and does not recognize the
potential for unusually large salary deviation in certain cases such as elected officials. Therefore, salary information in these
cases may not be accurate. These situations are relatively infrequent, however, and generally do not have a material impact on
the required employer contributions.
Actuarial Methods
Actuarial Cost Method
With one exception, the actuarial cost method used in this valuation is the Entry Age Actuarial Cost Method. This method is
used to calculate the required employer contributions and the PEPRA member contribution rate. Under this method, the cost of
the projected benefits is allocated on an individual basis as a level percent of earnings for the individual between entry age and
retirement age. The portion allocated to the year following the valuation date is the normal cost. This method yields a total
normal cost rate, expressed as a percentage of payroll, which is designed to remain level throughout the member’s career.
The actuarial accrued liability for active members is then calculated as the present value of benefits minus the present value of
future normal cost, or the portion of the total present value of benefits allocated to prior years. The actuarial accrued liability for
members currently receiving benefits and for members entitled to deferred benefits is equal to the present value of the benefits
expected to be paid. No normal costs are applicable for these participants.
To calculate the accrued liability on termination basis, this valuation used the Traditional Unit Credit Actuarial Cost Method. This
method differs from the entry age method only for active members where the accrued liability is the present value of benefits
assuming no future pay increases or service accruals.
Amortization of Unfunded Actuarial Accrued Liability
The excess of the total actuarial accrued liability over the market value of plan assets is called the unfunded actuarial accrued
liability (UAL). Funding requirements are determined by adding the normal cost and a payment toward the UAL. The UAL
payment is equal to the sum of individual amortization payments, each representing a different source of UAL for a given
measurement period.
Amortization payments are determined according to the CalPERS Actuarial Amortization Policy. The board adopted a new
policy effective for the June 30, 2019, actuarial valuation. The new policy applies prospectively only; amortization bases
(sources of UAL) established prior to the June 30, 2019, valuation will continue to be amortized according to the prior policy.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 41
Amortization of Unfunded Actuarial Accrued Liability (continued)
Prior Policy (Bases Established on or after June 30, 2013, and prior to June 30, 2019)
Amortization payments are determined as a level percentage of payroll whereby the payment increases each year at an escalation rate. Gains or losses are amortized over a fixed 30-year period with a 5-year ramp up at the beginning and a 5-year
ramp down at the end of the amortization period. All changes in liability due to plan amendments (other than golden
handshakes) are amortized over a 20-year period with no ramp. Changes in actuarial assumptions or changes in actuarial
methodology are amortized over a 20-year period with a 5-year ramp up at the beginning and a 5-year ramp down at the end of
the amortization period. Changes in unfunded accrued liability due to a Golden Handshake are amortized over a period of five
years (20 years prior to June 30, 2014). A summary is provided in the following table:
Driver
Source
(Gain)/Loss
Assumption/Method
Change
Benefit
Change
Golden
Handshake Investment
Non-
investment
Amortization
Period 30 Years 30 Years 20 Years
20
Years 5 Years
Escalation Rate
- Active Plans
- Inactive Plans
2.80%
0%
2.80%
0%
2.80%
0%
2.80%
0%
2.80%
0%
Ramp Up 5 5 5 0 0
Ramp Down 5 5 5 0 0
The 5-year ramp up means that the payments in the first four years of the amortization period are 20%, 40%, 60% and 80% of the “full” payment which begins in year five. The 5-year ramp down means that the reverse is true in the final four years of the
amortization period.
Current Policy (Bases Established on or after June 30, 2019)
Amortization payments are determined as a level dollar amount. Investment gains or losses are amortized over a fixed 20-year
period with a 5-year ramp up at the beginning of the amortization period. Non-investment gains or losses are amortized over a
fixed 20-year period with no ramps. All changes in liability due to plan amendments (other than golden handshakes) are
amortized over a 20-year period with no ramps. Changes in actuarial assumptions or changes in actuarial methodology are
amortized over a 20-year period with no ramps. Changes in unfunded accrued liability due to a Golden Handshake are
amortized over a period of five years. A summary is provided in the table below:
Driver
Source
(Gain)/Loss Assumption/
Method Change Benefit Change Golden Handshake Investment Non-investment
Amortization
Period 20 Years 20 Years 20 Years 20 Years 5 Years
Escalation Rate 0% 0% 0% 0% 0%
Ramp Up 5 0 0 0 0
Ramp Down 0 0 0 0 0
The 5-year ramp up means that the payments in the first four years of the amortization period are 20%, 40%, 60% and 80% of
the “full” payment which begins in year five.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 42
Amortization of Unfunded Actuarial Accrued Liability (continued)
Exceptions for Inconsistencies
An exception to the amortization rules above is used whenever their application results in inconsistencies. In these cases, a “fresh start” approach is used. This means that the current unfunded actuarial liability is projected and amortized over a set
number of years. For example, a fresh start is needed in the following situations:
x When a negative payment would be required on a positive unfunded actuarial liability; or x 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.
It should be noted that the actuary may determine that a fresh start is necessary under other circumstances. In all cases of a fresh start, the period is set by the actuary at what is deemed appropriate; however, the period will not be greater than 20 years.
Exceptions for Plans in Surplus
If a surplus exists (i.e., the Market Value of Assets exceeds the plan’s accrued liability) any prior amortization layers shall be considered fully amortized, and the surplus shall not be amortized.
In the event of any subsequent unfunded liability, a Fresh Start shall be used with an amortization period of 20 years or les s.
Exceptions for Small Amounts
Where small unfunded liabilities are identified in annual valuations which result in small payment amounts, the actuary may
shorten the remaining period for these bases.
x When the balance of a single amortization base has an absolute value less than $250, the amortization period is
reduced to one year.
x When the entire unfunded liability is a small amount, the actuary may perform a Fresh Start and use an appropriate
amortization period.
Exceptions for Inactive Plans
The following exceptions apply to plans classified as Inactive. These plans have no active members and no expectation to have
active members in the future.
x Amortization of the unfunded liability is on a “level dollar” basis rather than a “level percent of pay” basis. For
amortization layers, which utilize a ramp up and ramp down, the “ultimate” payment is constant. x Actuarial judgment will be used to shorten amortization periods for Inactive plans with existing periods that are deemed
too long given the duration of the liability. The specific demographics of the plan will be used to determine if shorter
periods may be more appropriate.
Exceptions for Inactive Agencies
For a public agency with no active members in any CalPERS rate plan, the unfunded liability shall be amortized over a closed
amortization period of no more than 15 years.
Asset Valuation Method
The Actuarial Value of Assets is set equal to the market value of assets. Asset values include accounts receivable.
PEPRA Normal Cost Rate Methodology
Per Government Code section 7522.30(b), the “normal cost rate” shall mean the annual actuarially determined normal cost for
the plan of retirement benefits provided to the new member and shall be established based on actuarial assumptions used to
determine the liabilities and costs as part of the annual actuarial valuation. The plan of retirement benefits shall include any
elements that would impact the actuarial determination of the normal cost, including, but not limited to, the retirement form ula,
eligibility and vesting criteria, ancillary benefit provisions, and any automatic cost-of-living adjustments as determined by the public retirement system.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 43
PEPRA Normal Cost Rate Methodology (continued)
For purposes of setting member rates, it is preferable to determine total normal cost using a large active population so that the
rate remains relatively stable. While each CalPERS non-pooled plan has a sufficiently large active population for this purpose,
the PEPRA active population by itself may not be sufficiently large enough yet. The total PEPRA normal cost for each PEPRA benefit tier will be determined based on the entire active plan population (both PEPRA and Classic) only until the number of
members covered under the PEPRA formula meets either:
1. 50% of the active population, or
2. 25% of the active population and 100 or more PEPRA members
Once one of these conditions is met, the total PEPRA normal cost for each PEPRA benefit tier will be determined using the
entire active PEPRA population.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 44
Actuarial Assumptions
In 2021, CalPERS completed its most recent asset liability management study incorporating actuarial assumptions and strategic
asset allocation. In November 2021, the board adopted changes to the asset allocation that increased the expected volatility of
returns. The adopted asset allocation was expected to have a long-term blended return that continued to support a discount rate
assumption of 6.80%. The board also approved several changes to the demographic assumptions that more closely aligned with
actual experience.
For more details and additional rationale for the selection of the actuarial assumptions, please refer to the 2021 CalPERS
Experience Study and Review of Actuarial Assumptions that can be found on the CalPERS website under: Forms and
Publications. Click on “View All” and search for Experience Study.
All actuarial assumptions (except the discount rates and price inflation assumption used for the accrued liability on a termination
basis and the interest rate used for the low-default-risk obligation measure) represent an estimate of future experience rather
than observations of the estimates inherent in market data.
Economic Assumptions
Discount Rate The prescribed discount rate assumption, adopted by the board on November 17, 2021, is 6.80% compounded annually (net of
investment and administrative expenses) as of June 30, 2024. The discount rate is based on the long-term expected rate of
return on assets using a building-block method in which expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. The current assumption, originally based on
capital market assumptions developed by the Investment Office in 2021, has been reviewed for this valuation based on capital market assumptions developed by the Investment Office in 2023.
Termination Liability Discount Rate
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 accrued
liabilities on a termination basis in this report use discount rates that are based on the 20-year Treasury rate on the valuation
date.
To illustrate the impact of the variability of interest rates, the accrued liabilities on a termination basis in this report use discount
rates 1% below and 1% above the 20-year Treasury rate on the valuation date. The 20-year Treasury rate was 4.61% on June
30, 2024.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 45
Salary Increases
Annual increases vary by category, entry age, and duration of service. A sample of assumed increases due to seniority, merit
and promotion are shown below. Assumed wage inflation is combined with these factors to develop the total expected salary
increases.
Public Agency Miscellaneous
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.0764 0.0621 0.0521
1 0.0663 0.0528 0.0424
2 0.0576 0.0449 0.0346
3 0.0501 0.0381 0.0282
4 0.0435 0.0324 0.0229
5 0.0378 0.0276 0.0187
10 0.0201 0.0126 0.0108
15 0.0155 0.0102 0.0071
20 0.0119 0.0083 0.0047
25 0.0091 0.0067 0.0031
30 0.0070 0.0054 0.0020
Public Agency Fire
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.1517 0.1549 0.0631
1 0.1191 0.1138 0.0517
2 0.0936 0.0835 0.0423
3 0.0735 0.0613 0.0346
4 0.0577 0.0451 0.0284
5 0.0453 0.0331 0.0232
10 0.0188 0.0143 0.0077
15 0.0165 0.0124 0.0088
20 0.0145 0.0108 0.0101
25 0.0127 0.0094 0.0115
30 0.0112 0.0082 0.0132
Public Agency Police
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.1181 0.1051 0.0653
1 0.0934 0.0812 0.0532
2 0.0738 0.0628 0.0434
3 0.0584 0.0485 0.0353
4 0.0462 0.0375 0.0288
5 0.0365 0.0290 0.0235
10 0.0185 0.0155 0.0118
15 0.0183 0.0150 0.0131
20 0.0181 0.0145 0.0145
25 0.0179 0.0141 0.0161
30 0.0178 0.0136 0.0179
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 46
Salary Increases (continued)
Public Agency County Peace Officers
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.1238 0.1053 0.0890
1 0.0941 0.0805 0.0674
2 0.0715 0.0616 0.0510
3 0.0544 0.0471 0.0387
4 0.0413 0.0360 0.0293
5 0.0314 0.0276 0.0222
10 0.0184 0.0142 0.0072
15 0.0174 0.0124 0.0073
20 0.0164 0.0108 0.0074
25 0.0155 0.0094 0.0075
30 0.0147 0.0083 0.0077
Schools
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.0275 0.0275 0.0200
1 0.0422 0.0373 0.0298
2 0.0422 0.0373 0.0298
3 0.0422 0.0373 0.0298
4 0.0388 0.0314 0.0245
5 0.0308 0.0239 0.0179
10 0.0236 0.0160 0.0121
15 0.0182 0.0135 0.0103
20 0.0145 0.0109 0.0085
25 0.0124 0.0102 0.0058
30 0.0075 0.0053 0.0019
x The Miscellaneous salary scale is used for Local Prosecutors.
x The Police salary scale is used for Other Safety, Local Sheriff, and School Police.
Price Inflation
2.30% compounded annually.
Termination Liability Price Inflation
The breakeven inflation rate for 20-year Treasuries on the valuation date, 2.45%.
Wage Inflation
2.80% compounded annually. This is used in projecting individual salary increases.
Payroll Growth 2.80% compounded annually. This is used as the escalation rate of the amortization payments on level percent of payroll
amortization bases, that is, on any amortization bases established prior to 2019 for plans that currently have active members.
Miscellaneous Loading Factors
Credit for Unused Sick Leave
Total years of service is increased by 1% for those plans that have adopted the provision of providing Credit for Unused Sick
Leave.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 47
Conversion of Employer Paid Member Contributions (EPMC)
Total years of service is increased by the Employee Contribution Rate for those plans with the provision providing for the
Conversion of Employer Paid Member Contributions (EPMC) during the final compensation period.
Norris Decision (Best Factors) Employees hired prior to July 1, 1982, have projected benefit amounts increased in order to reflect the use of “Best Factors” in
the calculation of optional benefit forms. This is due to a 1983 Supreme Court decision, known as the Norris decision, which
required males and females to be treated equally in the determination of benefit amounts. Consequently, anyone already
employed at that time is given the best possible conversion factor when optional benefits are determined. No loading is
necessary for employees hired after July 1, 1982.
Termination Liability
The termination liabilities include a 5% contingency load. This load is for unforeseen improvements in mortality.
Demographic Assumptions
Pre-Retirement Mortality
The mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by
the CalPERS Board in November 2021. For purposes of the mortality rates, the rates incorporate generational mortality to
capture ongoing mortality improvement. Generational mortality explicitly assumes that members born more recently will live
longer than the members born before them thereby capturing the mortality improvement seen in the past and expected
continued improvement. For more details, please refer to the 2021 CalPERS Experience Study and Review of Actuarial
Assumptions report that can be found on the CalPERS website.
Rates vary by age and gender. This table only contains a sample of the 2017 base table rates for illustrative purposes. The non-industrial death rates are used for all plans. The industrial death rates are used for Safety plans, except for local Safety
members described in Government Code section 20423.6 where the agency has not specifically contracted for industrial death
benefits.
Miscellaneous Safety Non-Industrial Death Non-Industrial Death Industrial Death
(Not Job-Related) (Not Job-Related) (Job-Related)
Age Male Female Male Female Male Female
20 0.00039 0.00014 0.00038 0.00014 0.00004 0.00002
25 0.00033 0.00013 0.00034 0.00018 0.00004 0.00002
30 0.00044 0.00019 0.00042 0.00025 0.00005 0.00003
35 0.00058 0.00029 0.00048 0.00034 0.00005 0.00004
40 0.00075 0.00039 0.00055 0.00042 0.00006 0.00005
45 0.00093 0.00054 0.00066 0.00053 0.00007 0.00006
50 0.00134 0.00081 0.00092 0.00073 0.00010 0.00008
55 0.00198 0.00123 0.00138 0.00106 0.00015 0.00012
60 0.00287 0.00179 0.00221 0.00151 0.00025 0.00017
65 0.00403 0.00250 0.00346 0.00194 0.00038 0.00022
70 0.00594 0.00404 0.00606 0.00358 0.00067 0.00040
75 0.00933 0.00688 0.01099 0.00699 0.00122 0.00078
80 0.01515 0.01149 0.02027 0.01410 0.00225 0.00157
x The pre-retirement mortality rates above are for 2017 and are projected generationally for future years using 80% of
the Society of Actuaries’ Scale MP-2020.
x Miscellaneous plans usually have industrial death rates set to zero unless the agency has specifically contracted for
industrial death benefits. If so, each non-industrial death rate shown above will be split into two components: 99% will
become the non-industrial death rate and 1% will become the industrial death rate.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 48
Post-Retirement Mortality
Rates vary by age, type of retirement, and gender. See sample rates in table below. These rates are used for all plans.
Service Retirement
Non-Industrial Disability Industrial Disability
(Not Job-Related) (Job-Related) Age Male Female Male Female Male Female
50 0.00267 0.00199 0.01701 0.01439 0.00430 0.00311
55 0.00390 0.00325 0.02210 0.01734 0.00621 0.00550
60 0.00578 0.00455 0.02708 0.01962 0.00944 0.00868
65 0.00857 0.00612 0.03334 0.02276 0.01394 0.01190
70 0.01333 0.00996 0.04001 0.02910 0.02163 0.01858
75 0.02391 0.01783 0.05376 0.04160 0.03446 0.03134
80 0.04371 0.03403 0.07936 0.06112 0.05853 0.05183
85 0.08274 0.06166 0.11561 0.09385 0.10137 0.08045
90 0.14539 0.11086 0.16608 0.14396 0.16584 0.12434
95 0.24665 0.20364 0.24665 0.20364 0.24665 0.20364
100 0.36198 0.31582 0.36198 0.31582 0.36198 0.31582
105 0.52229 0.44679 0.52229 0.44679 0.52229 0.44679
110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
x The post-retirement mortality rates above are for 2017 and are projected generationally for future years using 80% of
the Society of Actuaries’ Scale MP-2020.
Marital Status
For active members, a percentage who are married upon retirement is assumed according to the member category as shown in
the following table.
Member Category Percent Married
Miscellaneous Member 70%
Local Police 85%
Local Fire 85%
Other Local Safety 70%
School Police 85%
Local County Peace Officers 75%
Age of Spouse
It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for all plans.
Separated Members
It is assumed that separated members refund immediately if non-vested. Separated members who are vested are assumed to
retire at age 59 for Miscellaneous members and age 54 for Safety members.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 49
Termination with Refund
Rates vary by entry age and service for Miscellaneous plans. Rates vary by service for Safety plans. See sample rates in tables
below.
Public Agency Miscellaneous
Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45
Male Female Male Female Male Female Male Female Male Female Male Female
0 0.1851 0.1944 0.1769 0.1899 0.1631 0.1824 0.1493 0.1749 0.1490 0.1731 0.1487 0.1713
1 0.1531 0.1673 0.1432 0.1602 0.1266 0.1484 0.1101 0.1366 0.1069 0.1323 0.1037 0.1280
2 0.1218 0.1381 0.1125 0.1307 0.0970 0.1183 0.0815 0.1058 0.0771 0.0998 0.0726 0.0938
3 0.0927 0.1085 0.0852 0.1020 0.0727 0.0912 0.0601 0.0804 0.0556 0.0737 0.0511 0.0669
4 0.0672 0.0801 0.0616 0.0752 0.0524 0.0670 0.0431 0.0587 0.0392 0.0523 0.0352 0.0459
5 0.0463 0.0551 0.0423 0.0517 0.0358 0.0461 0.0292 0.0404 0.0261 0.0350 0.0230 0.0296
10 0.0112 0.0140 0.0101 0.0129 0.0083 0.0112 0.0064 0.0094 0.0048 0.0071 0.0033 0.0049
15 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
20 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
25 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
30 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Public Agency Safety
Duration of
Service Fire Police County Peace Officer
Male Female Male Female Male Female
0 0.1022 0.1317 0.1298 0.1389 0.1086 0.1284
1 0.0686 0.1007 0.0789 0.0904 0.0777 0.0998
2 0.0441 0.0743 0.0464 0.0566 0.0549 0.0759
3 0.0272 0.0524 0.0274 0.0343 0.0385 0.0562
4 0.0161 0.0349 0.0170 0.0206 0.0268 0.0402
5 0.0092 0.0214 0.0113 0.0128 0.0186 0.0276
10 0.0015 0.0000 0.0032 0.0047 0.0046 0.0038
15 0.0000 0.0000 0.0000 0.0000 0.0023 0.0036
20 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
25 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
30 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
x The police termination and refund rates are also used for Public Agency Local Prosecutors, Other Safety, Local
Sheriff, and School Police.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 50
Termination with Refund (continued)
Schools
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45
Male Female Male Female Male Female Male Female Male Female Male Female
0 0.2054 0.2120 0.1933 0.1952 0.1730 0.1672 0.1527 0.1392 0.1423 0.1212 0.1318 0.1032
1 0.1922 0.2069 0.1778 0.1883 0.1539 0.1573 0.1300 0.1264 0.1191 0.1087 0.1083 0.0910
2 0.1678 0.1859 0.1536 0.1681 0.1298 0.1383 0.1060 0.1086 0.0957 0.0934 0.0853 0.0782
3 0.1384 0.1575 0.1256 0.1417 0.1042 0.1155 0.0829 0.0893 0.0736 0.0774 0.0643 0.0656
4 0.1085 0.1274 0.0978 0.1143 0.0800 0.0925 0.0622 0.0707 0.0542 0.0620 0.0462 0.0533
5 0.0816 0.0991 0.0732 0.0887 0.0590 0.0713 0.0449 0.0539 0.0383 0.0476 0.0317 0.0413
10 0.0222 0.0248 0.0200 0.0221 0.0163 0.0174 0.0125 0.0128 0.0094 0.0100 0.0063 0.0072
15 0.0106 0.0132 0.0095 0.0113 0.0077 0.0083 0.0058 0.0052 0.0040 0.0039 0.0021 0.0026
20 0.0059 0.0065 0.0050 0.0054 0.0035 0.0036 0.0021 0.0019 0.0010 0.0009 0.0000 0.0000
25 0.0029 0.0034 0.0025 0.0029 0.0018 0.0020 0.0010 0.0012 0.0005 0.0006 0.0000 0.0000
30 0.0012 0.0015 0.0011 0.0013 0.0011 0.0011 0.0010 0.0009 0.0005 0.0005 0.0000 0.0000
35 0.0006 0.0007 0.0006 0.0007 0.0005 0.0006 0.0005 0.0005 0.0003 0.0002 0.0000 0.0000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 51
Termination with Vested Benefits
Rates vary by entry age and service for Miscellaneous plans. Rates vary by service for Safety plans. See sample rates in tables
below.
Public Agency Miscellaneous
Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40
Male Female Male Female Male Female Male Female Male Female
5 0.0381 0.0524 0.0381 0.0524 0.0358 0.0464 0.0334 0.0405 0.0301 0.0380
10 0.0265 0.0362 0.0265 0.0362 0.0254 0.0334 0.0244 0.0307 0.0197 0.0236
15 0.0180 0.0252 0.0180 0.0252 0.0166 0.0213 0.0152 0.0174 0.0119 0.0132
20 0.0141 0.0175 0.0141 0.0175 0.0110 0.0131 0.0079 0.0087 0.0000 0.0000
25 0.0084 0.0108 0.0084 0.0108 0.0064 0.0076 0.0000 0.0000 0.0000 0.0000
30 0.0047 0.0056 0.0047 0.0056 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0038 0.0041 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Public Agency Safety
Duration of
Service Fire Police County Peace Officer
Male Female Male Female Male Female
5 0.0089 0.0224 0.0156 0.0272 0.0177 0.0266
10 0.0066 0.0164 0.0113 0.0198 0.0126 0.0189
15 0.0048 0.0120 0.0083 0.0144 0.0089 0.0134
20 0.0035 0.0088 0.0060 0.0105 0.0063 0.0095
25 0.0024 0.0061 0.0042 0.0073 0.0042 0.0063
30 0.0012 0.0031 0.0021 0.0037 0.0021 0.0031
35 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
x After termination with vested benefits, a Miscellaneous member is assumed to retire at age 59 and a Safety
member at age 54.
x The Police termination with vested benefits rates are also used for Public Agency Local Prosecutors, Other Safety,
Local Sheriff, and School Police.
Schools
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40
Male Female Male Female Male Female Male Female Male Female
5 0.0359 0.0501 0.0359 0.0501 0.0332 0.0402 0.0305 0.0304 0.0266 0.0272
10 0.0311 0.0417 0.0311 0.0417 0.0269 0.0341 0.0228 0.0265 0.0193 0.0233
15 0.0193 0.0264 0.0193 0.0264 0.0172 0.0220 0.0151 0.0175 0.0123 0.0142
20 0.0145 0.0185 0.0145 0.0185 0.0113 0.0141 0.0080 0.0097 0.0000 0.0000
25 0.0089 0.0123 0.0089 0.0123 0.0074 0.0093 0.0000 0.0000 0.0000 0.0000
30 0.0057 0.0064 0.0057 0.0064 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0040 0.0049 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 52
Non-Industrial (Not Job-Related) Disability
Rates vary by age and gender for Miscellaneous plans. Rates vary by age and category for Safety plans.
Miscellaneous Fire Police County Peace Officer Schools
Age Male Female All All All Male Female
20 0.0001 0.0000 0.0001 0.0001 0.0001 0.0000 0.0002
25 0.0001 0.0001 0.0001 0.0001 0.0001 0.0000 0.0002
30 0.0002 0.0003 0.0001 0.0001 0.0001 0.0002 0.0002
35 0.0004 0.0007 0.0001 0.0002 0.0003 0.0005 0.0004
40 0.0009 0.0012 0.0001 0.0002 0.0006 0.0010 0.0008
45 0.0015 0.0019 0.0002 0.0003 0.0011 0.0019 0.0015
50 0.0015 0.0019 0.0004 0.0005 0.0016 0.0027 0.0021
55 0.0014 0.0013 0.0006 0.0007 0.0009 0.0024 0.0017
60 0.0012 0.0009 0.0006 0.0011 0.0005 0.0020 0.0010
x The Miscellaneous non-industrial disability rates are used for Local Prosecutors.
x The police non-industrial disability rates are also used for Other Safety, Local Sheriff, and School Police.
Industrial (Job-Related) Disability
Rates vary by age and category.
Age Fire Police County Peace Officer
20 0.0001 0.0000 0.0004
25 0.0002 0.0017 0.0013
30 0.0006 0.0048 0.0025
35 0.0012 0.0079 0.0037
40 0.0023 0.0110 0.0051
45 0.0040 0.0141 0.0067
50 0.0208 0.0185 0.0092
55 0.0307 0.0479 0.0151
60 0.0438 0.0602 0.0174
x The police industrial disability rates are also used for Local Sheriff and Other Safety. x 50% of the police industrial disability rates are used for School Police.
x 1% of the police industrial disability rates are used for Local Prosecutors. x Normally, rates are zero for Miscellaneous plans unless the agency has specifically contracted for industrial
disability benefits. If so, each Miscellaneous non-industrial disability rate will be split into two components: 50% will
become the non-industrial disability rate and 50% will become the industrial disability rate.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 53
Service Retirement
Retirement rates vary by age, service, and formula, except for the Safety Half Pay at 55 and 2% at 55 formulas, where
retirement rates vary by age only.
Public Agency Miscellaneous 1.5% at age 65
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.008 0.011 0.013 0.015 0.017 0.019
51 0.007 0.010 0.012 0.013 0.015 0.017
52 0.010 0.014 0.017 0.019 0.021 0.024
53 0.008 0.012 0.015 0.017 0.019 0.022
54 0.012 0.016 0.019 0.022 0.025 0.028
55 0.018 0.025 0.031 0.035 0.038 0.043
56 0.015 0.021 0.025 0.029 0.032 0.036
57 0.020 0.028 0.033 0.038 0.043 0.048
58 0.024 0.033 0.040 0.046 0.052 0.058
59 0.028 0.039 0.048 0.054 0.060 0.067
60 0.049 0.069 0.083 0.094 0.105 0.118
61 0.062 0.087 0.106 0.120 0.133 0.150
62 0.104 0.146 0.177 0.200 0.223 0.251
63 0.099 0.139 0.169 0.191 0.213 0.239
64 0.097 0.136 0.165 0.186 0.209 0.233
65 0.140 0.197 0.240 0.271 0.302 0.339
66 0.092 0.130 0.157 0.177 0.198 0.222
67 0.129 0.181 0.220 0.249 0.277 0.311
68 0.092 0.129 0.156 0.177 0.197 0.221
69 0.092 0.130 0.158 0.178 0.199 0.224
70 0.103 0.144 0.175 0.198 0.221 0.248
Public Agency Miscellaneous 2% at age 60
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.010 0.011 0.014 0.014 0.017 0.017
51 0.017 0.013 0.014 0.010 0.010 0.010
52 0.014 0.014 0.018 0.015 0.016 0.016
53 0.015 0.012 0.013 0.010 0.011 0.011
54 0.006 0.010 0.017 0.016 0.018 0.018
55 0.012 0.016 0.024 0.032 0.036 0.036
56 0.010 0.014 0.023 0.030 0.034 0.034
57 0.006 0.018 0.030 0.040 0.044 0.044
58 0.022 0.023 0.033 0.042 0.046 0.046
59 0.039 0.033 0.040 0.047 0.050 0.050
60 0.063 0.069 0.074 0.090 0.137 0.116
61 0.044 0.058 0.066 0.083 0.131 0.113
62 0.084 0.107 0.121 0.153 0.238 0.205
63 0.173 0.166 0.165 0.191 0.283 0.235
64 0.120 0.145 0.164 0.147 0.160 0.172
65 0.138 0.160 0.214 0.216 0.237 0.283
66 0.198 0.228 0.249 0.216 0.228 0.239
67 0.207 0.242 0.230 0.233 0.233 0.233
68 0.201 0.234 0.225 0.231 0.231 0.231
69 0.152 0.173 0.164 0.166 0.166 0.166
70 0.200 0.200 0.200 0.200 0.200 0.200
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 54
Service Retirement (continued)
Public Agency Miscellaneous 2% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.014 0.014 0.017 0.021 0.023 0.024
51 0.013 0.017 0.017 0.018 0.018 0.019
52 0.013 0.018 0.018 0.020 0.020 0.021
53 0.013 0.019 0.021 0.024 0.025 0.026
54 0.017 0.025 0.028 0.032 0.033 0.035
55 0.045 0.042 0.053 0.086 0.098 0.123
56 0.018 0.036 0.056 0.086 0.102 0.119
57 0.041 0.046 0.056 0.076 0.094 0.120
58 0.052 0.044 0.048 0.074 0.106 0.123
59 0.043 0.058 0.073 0.092 0.105 0.126
60 0.059 0.064 0.083 0.115 0.154 0.170
61 0.087 0.074 0.087 0.107 0.147 0.168
62 0.115 0.123 0.151 0.180 0.227 0.237
63 0.116 0.127 0.164 0.202 0.252 0.261
64 0.084 0.138 0.153 0.190 0.227 0.228
65 0.167 0.187 0.210 0.262 0.288 0.291
66 0.187 0.258 0.280 0.308 0.318 0.319
67 0.195 0.235 0.244 0.277 0.269 0.280
68 0.228 0.248 0.250 0.241 0.245 0.245
69 0.188 0.201 0.209 0.219 0.231 0.231
70 0.229 0.229 0.229 0.229 0.229 0.229
Public Agency Miscellaneous 2.5% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.014 0.017 0.027 0.035 0.046 0.050
51 0.019 0.021 0.025 0.030 0.038 0.040
52 0.018 0.020 0.026 0.034 0.038 0.037
53 0.013 0.021 0.031 0.045 0.052 0.053
54 0.025 0.025 0.030 0.046 0.057 0.068
55 0.029 0.042 0.064 0.109 0.150 0.225
56 0.036 0.047 0.068 0.106 0.134 0.194
57 0.051 0.047 0.060 0.092 0.116 0.166
58 0.035 0.046 0.062 0.093 0.119 0.170
59 0.029 0.053 0.072 0.112 0.139 0.165
60 0.039 0.069 0.094 0.157 0.177 0.221
61 0.080 0.077 0.086 0.140 0.167 0.205
62 0.086 0.131 0.149 0.220 0.244 0.284
63 0.135 0.135 0.147 0.214 0.222 0.262
64 0.114 0.128 0.158 0.177 0.233 0.229
65 0.112 0.174 0.222 0.209 0.268 0.273
66 0.235 0.254 0.297 0.289 0.321 0.337
67 0.237 0.240 0.267 0.249 0.267 0.277
68 0.258 0.271 0.275 0.207 0.210 0.212
69 0.117 0.208 0.266 0.219 0.250 0.270
70 0.229 0.229 0.229 0.229 0.229 0.229
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 55
Service Retirement (continued)
Public Agency Miscellaneous 2.7% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.011 0.016 0.022 0.033 0.034 0.038
51 0.018 0.019 0.023 0.032 0.031 0.031
52 0.019 0.020 0.026 0.035 0.034 0.037
53 0.020 0.020 0.025 0.043 0.048 0.053
54 0.018 0.030 0.040 0.052 0.053 0.070
55 0.045 0.058 0.082 0.138 0.208 0.278
56 0.057 0.062 0.080 0.121 0.178 0.222
57 0.045 0.052 0.071 0.106 0.147 0.182
58 0.074 0.060 0.074 0.118 0.163 0.182
59 0.058 0.067 0.086 0.123 0.158 0.187
60 0.087 0.084 0.096 0.142 0.165 0.198
61 0.073 0.084 0.101 0.138 0.173 0.218
62 0.130 0.133 0.146 0.187 0.214 0.249
63 0.122 0.140 0.160 0.204 0.209 0.243
64 0.104 0.124 0.154 0.202 0.214 0.230
65 0.182 0.201 0.242 0.264 0.293 0.293
66 0.272 0.249 0.273 0.285 0.312 0.312
67 0.182 0.217 0.254 0.249 0.264 0.264
68 0.223 0.197 0.218 0.242 0.273 0.273
69 0.217 0.217 0.217 0.217 0.217 0.217
70 0.227 0.227 0.227 0.227 0.227 0.227
Public Agency Miscellaneous 3% at age 60
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.015 0.020 0.025 0.039 0.040 0.044
51 0.041 0.034 0.032 0.041 0.036 0.037
52 0.024 0.020 0.022 0.039 0.040 0.041
53 0.018 0.024 0.032 0.047 0.048 0.057
54 0.033 0.033 0.035 0.051 0.049 0.052
55 0.137 0.043 0.051 0.065 0.076 0.108
56 0.173 0.038 0.054 0.075 0.085 0.117
57 0.019 0.035 0.059 0.088 0.111 0.134
58 0.011 0.040 0.070 0.105 0.133 0.162
59 0.194 0.056 0.064 0.081 0.113 0.163
60 0.081 0.085 0.133 0.215 0.280 0.333
61 0.080 0.090 0.134 0.170 0.223 0.292
62 0.137 0.153 0.201 0.250 0.278 0.288
63 0.128 0.140 0.183 0.227 0.251 0.260
64 0.174 0.147 0.173 0.224 0.239 0.264
65 0.152 0.201 0.262 0.299 0.323 0.323
66 0.272 0.273 0.317 0.355 0.380 0.380
67 0.218 0.237 0.268 0.274 0.284 0.284
68 0.200 0.228 0.269 0.285 0.299 0.299
69 0.250 0.250 0.250 0.250 0.250 0.250
70 0.245 0.245 0.245 0.245 0.245 0.245
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 56
Service Retirement (continued)
Public Agency Miscellaneous 2% at age 62
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.000 0.000 0.000 0.000 0.000 0.000
51 0.000 0.000 0.000 0.000 0.000 0.000
52 0.005 0.008 0.012 0.015 0.019 0.031
53 0.007 0.011 0.014 0.018 0.021 0.032
54 0.007 0.011 0.015 0.019 0.023 0.034
55 0.010 0.019 0.028 0.036 0.061 0.096
56 0.014 0.026 0.038 0.050 0.075 0.108
57 0.018 0.029 0.039 0.050 0.074 0.107
58 0.023 0.035 0.048 0.060 0.073 0.099
59 0.025 0.038 0.051 0.065 0.092 0.128
60 0.031 0.051 0.071 0.091 0.111 0.138
61 0.038 0.058 0.079 0.100 0.121 0.167
62 0.044 0.074 0.104 0.134 0.164 0.214
63 0.077 0.105 0.134 0.163 0.192 0.237
64 0.072 0.101 0.129 0.158 0.187 0.242
65 0.108 0.141 0.173 0.206 0.239 0.300
66 0.132 0.172 0.212 0.252 0.292 0.366
67 0.132 0.172 0.212 0.252 0.292 0.366
68 0.120 0.156 0.193 0.229 0.265 0.333
69 0.120 0.156 0.193 0.229 0.265 0.333
70 0.120 0.156 0.193 0.229 0.265 0.333
Public Agency Fire Half Pay at age 55 and 2% at age 55
Age Rate
Age Rate
50 0.016 56 0.111
51 0.000 57 0.000
52 0.034 58 0.095
53 0.020 59 0.044
54 0.041 60 1.000
55 0.075
Public Agency Police Half Pay at age 55 and 2% at age 55
Age Rate
Age Rate
50 0.026 56 0.069
51 0.000 57 0.051
52 0.016 58 0.072
53 0.027 59 0.070
54 0.010 60 0.300
55 0.167
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 57
Service Retirement (continued)
Public Agency Police 2% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.018 0.077 0.056 0.046 0.043 0.046
51 0.022 0.087 0.060 0.048 0.044 0.047
52 0.020 0.102 0.081 0.071 0.069 0.075
53 0.016 0.072 0.053 0.045 0.042 0.046
54 0.006 0.071 0.071 0.069 0.072 0.080
55 0.009 0.040 0.099 0.157 0.186 0.186
56 0.020 0.051 0.108 0.165 0.194 0.194
57 0.036 0.072 0.106 0.139 0.156 0.156
58 0.001 0.046 0.089 0.130 0.152 0.152
59 0.066 0.094 0.119 0.143 0.155 0.155
60 0.177 0.177 0.177 0.177 0.177 0.177
61 0.134 0.134 0.134 0.134 0.134 0.134
62 0.184 0.184 0.184 0.184 0.184 0.184
63 0.250 0.250 0.250 0.250 0.250 0.250
64 0.177 0.177 0.177 0.177 0.177 0.177
65 1.000 1.000 1.000 1.000 1.000 1.000
x These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.054 0.054 0.056 0.080 0.064 0.066
51 0.020 0.020 0.021 0.030 0.024 0.024
52 0.037 0.037 0.038 0.054 0.043 0.045
53 0.051 0.051 0.053 0.076 0.061 0.063
54 0.082 0.082 0.085 0.121 0.097 0.100
55 0.139 0.139 0.139 0.139 0.139 0.139
56 0.129 0.129 0.129 0.129 0.129 0.129
57 0.085 0.085 0.085 0.085 0.085 0.085
58 0.119 0.119 0.119 0.119 0.119 0.119
59 0.167 0.167 0.167 0.167 0.167 0.167
60 0.152 0.152 0.152 0.152 0.152 0.152
61 0.179 0.179 0.179 0.179 0.179 0.179
62 0.179 0.179 0.179 0.179 0.179 0.179
63 0.179 0.179 0.179 0.179 0.179 0.179
64 0.179 0.179 0.179 0.179 0.179 0.179
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 58
Service Retirement (continued)
Public Agency Police 3% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.019 0.053 0.045 0.054 0.057 0.061
51 0.002 0.017 0.028 0.044 0.053 0.060
52 0.002 0.031 0.037 0.051 0.059 0.066
53 0.026 0.049 0.049 0.080 0.099 0.114
54 0.019 0.034 0.047 0.091 0.121 0.142
55 0.006 0.115 0.141 0.199 0.231 0.259
56 0.017 0.188 0.121 0.173 0.199 0.199
57 0.008 0.137 0.093 0.136 0.157 0.157
58 0.017 0.126 0.105 0.164 0.194 0.194
59 0.026 0.146 0.110 0.167 0.195 0.195
60 0.155 0.155 0.155 0.155 0.155 0.155
61 0.210 0.210 0.210 0.210 0.210 0.210
62 0.262 0.262 0.262 0.262 0.262 0.262
63 0.172 0.172 0.172 0.172 0.172 0.172
64 0.227 0.227 0.227 0.227 0.227 0.227
65 1.000 1.000 1.000 1.000 1.000 1.000
x These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 3% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.003 0.006 0.013 0.019 0.025 0.028
51 0.004 0.008 0.017 0.026 0.034 0.038
52 0.005 0.011 0.022 0.033 0.044 0.049
53 0.005 0.034 0.024 0.038 0.069 0.138
54 0.007 0.047 0.032 0.051 0.094 0.187
55 0.010 0.067 0.046 0.073 0.134 0.266
56 0.010 0.063 0.044 0.069 0.127 0.253
57 0.135 0.100 0.148 0.196 0.220 0.220
58 0.083 0.062 0.091 0.120 0.135 0.135
59 0.137 0.053 0.084 0.146 0.177 0.177
60 0.162 0.063 0.099 0.172 0.208 0.208
61 0.598 0.231 0.231 0.231 0.231 0.231
62 0.621 0.240 0.240 0.240 0.240 0.240
63 0.236 0.236 0.236 0.236 0.236 0.236
64 0.236 0.236 0.236 0.236 0.236 0.236
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 59
Service Retirement (continued)
Public Agency Police 3% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.124 0.103 0.113 0.143 0.244 0.376
51 0.060 0.081 0.087 0.125 0.207 0.294
52 0.016 0.055 0.111 0.148 0.192 0.235
53 0.072 0.074 0.098 0.142 0.189 0.237
54 0.018 0.049 0.105 0.123 0.187 0.271
55 0.069 0.074 0.081 0.113 0.209 0.305
56 0.064 0.108 0.113 0.125 0.190 0.288
57 0.056 0.109 0.160 0.182 0.210 0.210
58 0.108 0.129 0.173 0.189 0.214 0.214
59 0.093 0.144 0.204 0.229 0.262 0.262
60 0.343 0.180 0.159 0.188 0.247 0.247
61 0.221 0.221 0.221 0.221 0.221 0.221
62 0.213 0.213 0.213 0.213 0.213 0.213
63 0.233 0.233 0.233 0.233 0.233 0.233
64 0.234 0.234 0.234 0.234 0.234 0.234
65 1.000 1.000 1.000 1.000 1.000 1.000
x These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 3% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.095 0.048 0.053 0.093 0.134 0.175
51 0.016 0.032 0.053 0.085 0.117 0.149
52 0.013 0.032 0.054 0.087 0.120 0.154
53 0.085 0.044 0.049 0.089 0.129 0.170
54 0.038 0.065 0.074 0.105 0.136 0.167
55 0.042 0.043 0.049 0.085 0.132 0.215
56 0.133 0.103 0.075 0.113 0.151 0.209
57 0.062 0.048 0.060 0.124 0.172 0.213
58 0.124 0.097 0.092 0.153 0.194 0.227
59 0.092 0.071 0.078 0.144 0.192 0.233
60 0.056 0.044 0.061 0.131 0.186 0.233
61 0.282 0.219 0.158 0.198 0.233 0.260
62 0.292 0.227 0.164 0.205 0.241 0.269
63 0.196 0.196 0.196 0.196 0.196 0.196
64 0.197 0.197 0.197 0.197 0.197 0.197
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 60
Service Retirement (continued)
Public Agency Police 2% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.040 0.040 0.040 0.040 0.040 0.080
51 0.028 0.028 0.028 0.028 0.040 0.066
52 0.028 0.028 0.028 0.028 0.043 0.061
53 0.028 0.028 0.028 0.028 0.057 0.086
54 0.028 0.028 0.028 0.032 0.069 0.110
55 0.050 0.050 0.050 0.067 0.099 0.179
56 0.046 0.046 0.046 0.062 0.090 0.160
57 0.054 0.054 0.054 0.072 0.106 0.191
58 0.060 0.060 0.060 0.066 0.103 0.171
59 0.060 0.060 0.060 0.069 0.105 0.171
60 0.113 0.113 0.113 0.113 0.113 0.171
61 0.108 0.108 0.108 0.108 0.108 0.128
62 0.113 0.113 0.113 0.113 0.113 0.159
63 0.113 0.113 0.113 0.113 0.113 0.159
64 0.113 0.113 0.113 0.113 0.113 0.239
65 1.000 1.000 1.000 1.000 1.000 1.000
x These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.005 0.005 0.005 0.005 0.008 0.012
51 0.006 0.006 0.006 0.006 0.009 0.013
52 0.012 0.012 0.012 0.012 0.019 0.028
53 0.033 0.033 0.033 0.033 0.050 0.075
54 0.045 0.045 0.045 0.045 0.069 0.103
55 0.061 0.061 0.061 0.061 0.094 0.140
56 0.055 0.055 0.055 0.055 0.084 0.126
57 0.081 0.081 0.081 0.081 0.125 0.187
58 0.059 0.059 0.059 0.059 0.091 0.137
59 0.055 0.055 0.055 0.055 0.084 0.126
60 0.085 0.085 0.085 0.085 0.131 0.196
61 0.085 0.085 0.085 0.085 0.131 0.196
62 0.085 0.085 0.085 0.085 0.131 0.196
63 0.085 0.085 0.085 0.085 0.131 0.196
64 0.085 0.085 0.085 0.085 0.131 0.196
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 61
Service Retirement (continued)
Public Agency Police 2.5% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.050 0.050 0.050 0.050 0.050 0.100
51 0.038 0.038 0.038 0.038 0.055 0.089
52 0.038 0.038 0.038 0.038 0.058 0.082
53 0.036 0.036 0.036 0.036 0.073 0.111
54 0.036 0.036 0.036 0.041 0.088 0.142
55 0.061 0.061 0.061 0.082 0.120 0.217
56 0.056 0.056 0.056 0.075 0.110 0.194
57 0.060 0.060 0.060 0.080 0.118 0.213
58 0.072 0.072 0.072 0.079 0.124 0.205
59 0.072 0.072 0.072 0.083 0.126 0.205
60 0.135 0.135 0.135 0.135 0.135 0.205
61 0.130 0.130 0.130 0.130 0.130 0.153
62 0.135 0.135 0.135 0.135 0.135 0.191
63 0.135 0.135 0.135 0.135 0.135 0.191
64 0.135 0.135 0.135 0.135 0.135 0.287
65 1.000 1.000 1.000 1.000 1.000 1.000
x These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2.5% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.007 0.007 0.007 0.007 0.010 0.015
51 0.008 0.008 0.008 0.008 0.012 0.018
52 0.016 0.016 0.016 0.016 0.025 0.038
53 0.042 0.042 0.042 0.042 0.064 0.096
54 0.057 0.057 0.057 0.057 0.088 0.132
55 0.074 0.074 0.074 0.074 0.114 0.170
56 0.066 0.066 0.066 0.066 0.102 0.153
57 0.090 0.090 0.090 0.090 0.139 0.208
58 0.071 0.071 0.071 0.071 0.110 0.164
59 0.066 0.066 0.066 0.066 0.101 0.151
60 0.102 0.102 0.102 0.102 0.157 0.235
61 0.102 0.102 0.102 0.102 0.157 0.236
62 0.102 0.102 0.102 0.102 0.157 0.236
63 0.102 0.102 0.102 0.102 0.157 0.236
64 0.102 0.102 0.102 0.102 0.157 0.236
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 62
Service Retirement (continued)
Public Agency Police 2.7% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.050 0.050 0.050 0.050 0.050 0.100
51 0.040 0.040 0.040 0.040 0.058 0.094
52 0.038 0.038 0.038 0.038 0.058 0.083
53 0.038 0.038 0.038 0.038 0.077 0.117
54 0.038 0.038 0.038 0.044 0.093 0.150
55 0.068 0.068 0.068 0.091 0.134 0.242
56 0.063 0.063 0.063 0.084 0.123 0.217
57 0.060 0.060 0.060 0.080 0.118 0.213
58 0.080 0.080 0.080 0.088 0.138 0.228
59 0.080 0.080 0.080 0.092 0.140 0.228
60 0.150 0.150 0.150 0.150 0.150 0.228
61 0.144 0.144 0.144 0.144 0.144 0.170
62 0.150 0.150 0.150 0.150 0.150 0.213
63 0.150 0.150 0.150 0.150 0.150 0.213
64 0.150 0.150 0.150 0.150 0.150 0.319
65 1.000 1.000 1.000 1.000 1.000 1.000
x These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2.7% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.007 0.007 0.007 0.007 0.010 0.015
51 0.008 0.008 0.008 0.008 0.013 0.019
52 0.016 0.016 0.016 0.016 0.025 0.038
53 0.044 0.044 0.044 0.044 0.068 0.102
54 0.061 0.061 0.061 0.061 0.093 0.140
55 0.083 0.083 0.083 0.083 0.127 0.190
56 0.074 0.074 0.074 0.074 0.114 0.171
57 0.090 0.090 0.090 0.090 0.139 0.208
58 0.079 0.079 0.079 0.079 0.122 0.182
59 0.073 0.073 0.073 0.073 0.112 0.168
60 0.114 0.114 0.114 0.114 0.175 0.262
61 0.114 0.114 0.114 0.114 0.175 0.262
62 0.114 0.114 0.114 0.114 0.175 0.262
63 0.114 0.114 0.114 0.114 0.175 0.262
64 0.114 0.114 0.114 0.114 0.175 0.262
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 63
Service Retirement (continued)
Schools 2% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.003 0.004 0.006 0.007 0.010 0.010
51 0.004 0.005 0.007 0.008 0.011 0.011
52 0.005 0.007 0.008 0.009 0.012 0.012
53 0.007 0.008 0.010 0.012 0.015 0.015
54 0.006 0.009 0.012 0.015 0.020 0.021
55 0.011 0.023 0.034 0.057 0.070 0.090
56 0.012 0.027 0.036 0.056 0.073 0.095
57 0.016 0.027 0.036 0.055 0.068 0.087
58 0.019 0.030 0.040 0.062 0.078 0.103
59 0.023 0.034 0.046 0.070 0.085 0.109
60 0.022 0.043 0.062 0.095 0.113 0.141
61 0.030 0.051 0.071 0.103 0.124 0.154
62 0.065 0.098 0.128 0.188 0.216 0.248
63 0.075 0.112 0.144 0.197 0.222 0.268
64 0.091 0.116 0.138 0.180 0.196 0.231
65 0.163 0.164 0.197 0.232 0.250 0.271
66 0.208 0.204 0.243 0.282 0.301 0.315
67 0.189 0.185 0.221 0.257 0.274 0.287
68 0.127 0.158 0.200 0.227 0.241 0.244
69 0.168 0.162 0.189 0.217 0.229 0.238
70 0.191 0.190 0.237 0.250 0.246 0.254
Schools 2% at age 62
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.000 0.000 0.000 0.000 0.000 0.000
51 0.000 0.000 0.000 0.000 0.000 0.000
52 0.004 0.007 0.010 0.011 0.013 0.015
53 0.004 0.008 0.010 0.013 0.014 0.016
54 0.005 0.011 0.015 0.018 0.020 0.022
55 0.014 0.027 0.038 0.045 0.050 0.056
56 0.013 0.026 0.037 0.043 0.048 0.055
57 0.013 0.027 0.038 0.045 0.050 0.055
58 0.017 0.034 0.047 0.056 0.062 0.069
59 0.019 0.037 0.052 0.062 0.068 0.076
60 0.026 0.053 0.074 0.087 0.097 0.108
61 0.030 0.058 0.081 0.095 0.106 0.119
62 0.053 0.105 0.147 0.174 0.194 0.217
63 0.054 0.107 0.151 0.178 0.198 0.222
64 0.053 0.105 0.147 0.174 0.194 0.216
65 0.072 0.142 0.199 0.235 0.262 0.293
66 0.077 0.152 0.213 0.252 0.281 0.314
67 0.070 0.139 0.194 0.229 0.255 0.286
68 0.063 0.124 0.173 0.205 0.228 0.255
69 0.066 0.130 0.183 0.216 0.241 0.270
70 0.071 0.140 0.196 0.231 0.258 0.289
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 64
Miscellaneous
Models
The valuation results are based on proprietary actuarial valuation models. The models are centralized and maintained by a
specialized team to achieve a high degree of accuracy and consistency. The Actuarial Office is responsible for confirming the
appropriateness of the inputs (such as participant data, actuarial methods and assumptions, and plan provisions) as well as
performing tests and validating the reasonableness of the output. The results of our models are independently confirmed by
parallel valuations performed by outside actuaries on a periodic basis using their models. In our professional judgment, our
actuarial valuation models produce comprehensive pension funding information consistent with the purposes of the valuation
and have no material limitations or known weaknesses.
Internal Revenue Code Section 415(b)
The limitations on benefits imposed by Internal Revenue Code section 415(b) are taken into account in this valuation. Each
year, the impact of any changes in this limitation other than assumed since the prior valuation is included and amortized as part
of the non-investment gain or loss base. This results in lower contributions for those employers contributing to the Replacement
Benefit Fund and protects CalPERS from prefunding expected benefits in excess of limits imposed by federal tax law. The
Section 415(b) dollar limit for the 2024 calendar year is $275,000.
Internal Revenue Code Section 401(a)(17)
The limitations on compensation imposed by Internal Revenue Code section 401(a)(17) are taken into account in this valuation.
Each year, the impact of any changes in the compensation limitation other than assumed since the prior valuation is included and amortized as part of the non-investment gain or loss base. The compensation limit for classic members for the 2024
calendar year is $345,000.
PEPRA Compensation Limits
The limitations on compensation for PEPRA members imposed by Government Code section 7522.10 are taken into account in
this valuation. Each year, the impact of any changes in the compensation limitation other than assumed since the prior valuation
is included and amortized as part of the non-investment gain or loss base. The PEPRA compensation limit for 2024 is $151,446
for members who participate in Social Security and $181,734 for those who do not. The limits are adjusted annually based on
changes to the CPI for all urban consumers.
Appendix B - Principal Plan Provisions
x Service Retirement 66
x Vested Deferred Retirement 68
x Non-Industrial Disability Retirement 68
x Industrial Disability Retirement 69
x Post-Retirement Death Benefit 70
x Form of Payment for Retirement Allowance 70
x Pre-Retirement Death Benefits 71
x Cost-of-Living Adjustments (COLA) 73
x Purchasing Power Protection Allowance (PPPA) 73
x Employee Contributions 74
x Refund of Employee Contributions 74
x 1959 Survivor Benefit 75
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 66
The following is a description of the principal plan provisions used in calculating costs and liabilities. We have indicated whether
a plan provision is standard or optional. Standard benefits are applicable to all members while optional benefits vary among
employers. Optional benefits that apply to a single period of time, such as Golden Handshakes, have not been included. Many of the statements in this summary are general in nature, and are intended to provide an easily understood summary of the
Public Employees’ Retirement Law and the California Public Employees’ Pension Reform Act of 2013. The law itself governs in
all situations.
Service Retirement
Eligibility
A classic CalPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 50 with
at least 5 years of credited service (total service across all CalPERS employers, and with certain other retirement systems with
which CalPERS has reciprocity agreements). For employees hired into a plan with the 1.5% at age 65 formula, eligibility for
service retirement is age 55 with at least 5 years of service. PEPRA Miscellaneous members become eligible for service
retirement upon attainment of age 52 with at least 5 years of service.
Benefit
The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final
compensation. The benefit factor depends on the benefit formula specified in the agency’s contract. The table below shows the
factors for each of the available formulas. Factors vary by the member’s age at retirement. Listed are the factors for retire ment
at whole year ages:
Miscellaneous Plan Formulas
Retirement
Age
1.5% at
age 65
2% at
age 60
2% at
age 55
2.5% at
age 55
2.7% at
age 55
3% at
age 60
PEPRA
2% at
age 62
50 0.5000% 1.092% 1.426% 2.000% 2.000% 2.000% N/A
51 0.5667% 1.156% 1.522% 2.100% 2.140% 2.100% N/A
52 0.6334% 1.224% 1.628% 2.200% 2.280% 2.200% 1.000%
53 0.7000% 1.296% 1.742% 2.300% 2.420% 2.300% 1.100%
54 0.7667% 1.376% 1.866% 2.400% 2.560% 2.400% 1.200%
55 0.8334% 1.460% 2.000% 2.500% 2.700% 2.500% 1.300%
56 0.9000% 1.552% 2.052% 2.500% 2.700% 2.600% 1.400%
57 0.9667% 1.650% 2.104% 2.500% 2.700% 2.700% 1.500%
58 1.0334% 1.758% 2.156% 2.500% 2.700% 2.800% 1.600%
59 1.1000% 1.874% 2.210% 2.500% 2.700% 2.900% 1.700%
60 1.1667% 2.000% 2.262% 2.500% 2.700% 3.000% 1.800%
61 1.2334% 2.134% 2.314% 2.500% 2.700% 3.000% 1.900%
62 1.3000% 2.272% 2.366% 2.500% 2.700% 3.000% 2.000%
63 1.3667% 2.418% 2.418% 2.500% 2.700% 3.000% 2.100%
64 1.4334% 2.418% 2.418% 2.500% 2.700% 3.000% 2.200%
65 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.300%
66 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.400%
67 & up 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.500%
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 67
Classic Safety Plan Formulas
Retirement Age Half Pay at
age 55* 2% at age 55 2% at age 50 3% at age 55 3% at age 50
50 1.783% 1.426% 2.000% 2.400% 3.000%
51 1.903% 1.522% 2.140% 2.520% 3.000%
52 2.035% 1.628% 2.280% 2.640% 3.000%
53 2.178% 1.742% 2.420% 2.760% 3.000%
54 2.333% 1.866% 2.560% 2.880% 3.000%
55 & Up 2.500% 2.000% 2.700% 3.000% 3.000%
* For this formula, the benefit factor also varies by entry age. The factors shown are for members with an entry age of 35 or
greater. If entry age is less than 35, then the age 55 benefit factor is 50% divided by the difference between age 55 and entry
age. The benefit factor for ages prior to age 55 is the same proportion of the age 55 benefit factor as in the above table.
PEPRA Safety Plan Formulas
Retirement Age 2% at age 57 2.5% at age 57 2.7% at age 57
50 1.426% 2.000% 2.000%
51 1.508% 2.071% 2.100%
52 1.590% 2.143% 2.200%
53 1.672% 2.214% 2.300%
54 1.754% 2.286% 2.400%
55 1.836% 2.357% 2.500%
56 1.918% 2.429% 2.600%
57 & Up 2.000% 2.500% 2.700%
x The years of service is the amount credited by CalPERS to a member while he or she is employed in this group (or for other
periods that are recognized under the employer’s contract with CalPERS). For a member who has earned service with
multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s
contract, and then added together for the total allowance. An agency may contract for an optional benefit where any unused
sick leave accumulated at the time of retirement will be converted to credited service at a rate of 0.004 years of service for
each day of sick leave.
x The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full-time equivalent
monthly pay (no matter which CalPERS employer paid this compensation). The standard benefit is 36 months. Employers
had the option of providing a final compensation equal to the highest 12 consecutive months for classic plans only. Final
compensation must be defined by the highest 36 consecutive months’ pay under the 1.5% at age 65 formula. PEPRA
members have a limit on the annual compensation that can be used to calculate final compensation. The limits are adjusted
annually based on changes to the CPI for all urban consumers.
x PEPRA benefit formulas have no Social Security offsets and Social Security coverage is optional. For Classic benefit
formulas, employees must be covered by Social Security with the 1.5% at age 65 formula. Social Security is optional for all
other Classic benefit formulas. For employees covered by Social Security, the modified formula is the standard benefit.
Under this type of formula, the final compensation is offset by $133.33 (or by one third if the final compensation is less than
$400). Employers may contract for the full benefit with Social Security that will eliminate the offset applicable to the final compensation. For employees not covered by Social Security, the full benefit is paid with no offsets. Auxiliary organizations
of the CSUC system may elect reduced contribution rates, in which case the offset is $317 if members are not covered by
Social Security or $513 if members are covered by Social Security.
x The Miscellaneous and PEPRA Safety service retirement benefit is not capped. The Classic Safety service retirement
benefit is capped at 90% of final compensation.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 68
Vested Deferred Retirement
Eligibility for Deferred Status
CalPERS members becomes eligible for a deferred vested retirement benefit when they leave employment, keep their
contribution account balance on deposit with CalPERS, and have earned at least 5 years of credited service (total service
across all CalPERS employers, and with certain other retirement systems with which CalPERS has reciprocity agreements).
Eligibility to Start Receiving Benefits
The CalPERS classic members and PEPRA Safety members become eligible to receive the deferred retirement benefit upon
satisfying the eligibility requirements for deferred status and upon attainment of age 50 (55 for employees hired into a 1.5% at
age 65 plan). PEPRA Miscellaneous members become eligible to receive the deferred retirement benefit upon satisfying the
eligibility requirements for deferred status and upon attainment of age 52.
Benefit
The vested deferred retirement benefit is the same as the service retirement benefit, where the benefit factor is based on the
member’s age at allowance commencement. For members who have earned service with multiple CalPERS employers, the
benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total
allowance.
Non-Industrial Disability Retirement
Eligibility
A CalPERS member is eligible for Non-Industrial (non-job related) Disability Retirement if he or she becomes disabled and has
at least 5 years of credited service (total service across all CalPERS employers, and with certain other retirement systems with
which CalPERS has reciprocity agreements). There is no special age requirement. Disabled means the member is unable to
perform their job because of an illness or injury, which is expected to be permanent or to last indefinitely. The illness or injury
does not have to be job related. A CalPERS member must be actively employed by any CalPERS employer at the time of
disability in order to be eligible for this benefit.
Standard Benefit
The standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied
by service, which is determined as follows:
x Service is CalPERS credited service, for members with less than 10 years of service or greater than 18.518 years of
service; or
x Service is CalPERS credited service plus the additional number of years that the member would have worked until age
60, for members with at least 10 years but not more than 18.518 years of service. The maximum benefit in this case is
33⅓% of final compensation.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 69
Improved Benefit
Employers have the option of providing the improved Non-Industrial Disability Retirement benefit. This benefit provides a monthly allowance equal to 30% of final compensation for the first 5 years of service, plus 1% for each additional year of service
to a maximum of 50% of final compensation.
Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of a disability benefit.
Members eligible to retire, and who have attained the normal retirement age determined by their service retirement benefit
formula, will receive the same dollar amount for disability retirement as that payable for service retirement. For members who
have earned service with multiple CalPERS employers, the benefit attributed to each employer is the total disability allowance
multiplied by the ratio of service with a particular employer to the total CalPERS service.
Industrial Disability Retirement
This is a standard benefit for Safety members except those described in Section 20423.6. For excluded Safety members and all
Miscellaneous members, employers have the option of providing this benefit. An employer may choose to provide the increased
benefit option or the improved benefit option.
Eligibility
An employee is eligible for Industrial (job related) Disability Retirement if he or she becomes disabled while working, where
disabled means the member is unable to perform the duties of the job because of a work-related illness or injury, which is
expected to be permanent or to last indefinitely. A CalPERS member who has left active employment within this group is not eligible for this benefit, except to the extent described below.
Standard Benefit
The standard Industrial Disability Retirement benefit is a monthly allowance equal to 50% of final compensation.
Increased Benefit (75% of Final Compensation)
The increased Industrial Disability Retirement benefit is a monthly allowance equal to 75% of final compensation for total disability.
Improved Benefit (50% to 90% of Final Compensation)
The improved Industrial Disability Retirement benefit is a monthly allowance equal to the Workman’s Compensation Appeals
Board permanent disability rate percentage (if 50% or greater, with a maximum of 90%) times the final compensation.
For a CalPERS member not actively employed in this group who became disabled while employed by some other CalPERS
employer, the benefit is a return of accumulated member contributions with respect to employment in this group. With the
standard or increased benefit, a member may also choose to receive the annuitization of the accumulated member
contributions.
If a member is eligible for service retirement and if the service retirement benefit is more than the industrial disability retirement
benefit, the member may choose to receive the larger benefit.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 70
Post-Retirement Death Benefit
Standard Lump Sum Payment
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the
retiree’s estate. The lump sum payment amount increases to $2,000 for any death occurring on or after July 1, 2023, due to SB
1168.
Optional Lump Sum Payment
In lieu of the standard lump sum death benefit, employers have the option of providing a lump sum death benefit of $600,
$3,000, $4,000 or $5,000.
Form of Payment for Retirement Allowance
Standard Form of Payment
Generally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she is alive. The retiree
may choose to provide for a portion of their allowance to be paid to any designated beneficiary after the retiree’s death.
CalPERS provides for a variety of such benefit options, which the retiree pays for by taking a reduction in their retirement
allowance. Such reduction takes into account the amount to be provided to the beneficiary and the probable duration of payments (based on the ages of the member and beneficiary) made subsequent to the member’s death.
Improved Form of Payment (Post-Retirement Survivor Allowance)
Employers have the option to contract for the post-retirement survivor allowance.
For retirement allowances with respect to service subject to a modified Classic formula, 25% of the retirement allowance will
automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s
allowance. For retirement allowances with respect to service subject to a PEPRA formula or a full or supplemental Classic
formula, 50% of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the
retiree, without a reduction in the retiree’s allowance. This additional benefit is referred to as post-retirement survivor allowance
(PRSA) or simply as survivor continuance.
In other words, 25% or 50% of the allowance, the continuance portion, is paid to the retiree for as long as he or she is alive, and
that same amount is continued to the retiree’s spouse (or if no eligible spouse, to unmarried child(ren) until they attain age 18;
or, if no eligible child(ren), to a qualifying dependent parent) for the rest of their lifetime. This benefit will not be discontinued in
the event the spouse remarries.
The remaining 75% or 50% of the retirement allowance, which may be referred to as the option portion of the benefit, is paid to
the retiree as an annuity for as long as he or she is alive. Or, the retiree may choose to provide for some of this option portion to
be paid to any designated beneficiary after the retiree’s death. Benefit options applicable to the option portion are the sam e as
those offered with the standard form. The reduction is calculated in the same manner but is applied only to the option portion.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 71
Pre-Retirement Death Benefits
Basic Death Benefit
This is a standard benefit.
Eligibility
An employee’s beneficiary (or estate) may receive the basic death benefit if the member dies while actively employed. A
CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. A
member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of
this basic death benefit.
Benefit
The basic death benefit is a lump sum in the amount of the member’s accumulated contributions, where interest is credited
annually at the greater of 6% or the prevailing discount rate through the date of death, plus a lump sum in the amount of one
month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit,
one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding
death.
1957 Survivor Benefit
This is a standard benefit.
Eligibility
An employee’s eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while actively employed, has
attained at least age 50 for classic and PEPRA Safety members and age 52 for PEPRA Miscellaneous members, and has at
least 5 years of credited service (total service across all CalPERS employers and with certain other retirement systems with
which CalPERS has reciprocity agreements). A CalPERS member must be actively employed with the CalPERS employer
providing this benefit to be eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was
married at least one year before death or, if there is no eligible spouse, to the member's unmarried child(ren) under age 18. A
member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of
this 1957 Survivor benefit.
Benefit
The 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified service retirement benefit that the member
would have been entitled to receive if the member had retired on the date of their death. If the benefit is payable to the spouse,
the benefit is discontinued upon the death of the spouse. If the benefit is payable to dependent child(ren), the benefit will be
discontinued upon death or attainment of age 18, unless the child(ren) is disabled. The total amount paid will be at least equal to
the basic death benefit.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 72
Optional Settlement 2 Death Benefit
This is an optional benefit.
Eligibility
An employee’s eligible survivor may receive the Optional Settlement 2 Death benefit if the member dies while actively employed,
has attained at least age 50 for classic and PEPRA Safety members and age 52 for PEPRA Miscellaneous members, and has
at least 5 years of credited service (total service across all CalPERS employers and with certain other retirement systems with
which CalPERS has reciprocity agreements). A CalPERS member who is no longer actively employed with any CalPERS
employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at
least one year before death. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to
receive that death benefit instead of this Optional Settlement 2 Death benefit.
Benefit
The Optional Settlement 2 Death benefit is a monthly allowance equal to the service retirement benefit that the member would
have received had the member retired on the date of their death and elected 100% to continue to the eligible survivor after the
member’s death. The allowance is payable to the surviving spouse until death, at which time it is continued to any unmarried
child(ren), if applicable. The total amount paid will be at least equal to the basic death benefit.
Special Death Benefit
This is a standard benefit for Safety members except those described in Section 20423.6. For excluded Safety members and all
Miscellaneous members, employers have the option of providing this benefit.
Eligibility
An employee’s eligible survivor(s) may receive the special death benefit if the member dies while actively employed and the
death is job-related. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this
benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or
illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried child(ren) under
age 22. An eligible survivor who chooses to receive this benefit will not receive any other death benefit.
Benefit
The special death benefit is a monthly allowance equal to 50% of final compensation and will be increased whenever the
compensation paid to active employees is increased but ceasing to increase when the member would have attained age 50. The
allowance is payable to the surviving spouse until death, at which time the allowance is continued to any unmarried child(ren)
under age 22. There is a guarantee that the total amount paid will at least equal the basic death benefit.
If the member’s death is the result of an accident or injury caused by external violence or physical force incurred in the
performance of the member’s duty, and there are eligible surviving child(ren) (eligible means unmarried child(ren) under age 22)
in addition to an eligible spouse, then an additional monthly allowance is paid equal to the following:
x if 1 eligible child: 12.5% of final compensation x if 2 eligible children: 20.0% of final compensation
x if 3 or more eligible children: 25.0% of final compensation
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 73
Alternate Death Benefit for Local Fire Members
This is an optional benefit available only to local fire members.
Eligibility
An employee’s eligible survivor(s) may receive the alternate death benefit in lieu of the basic death benefit or the 1957 Survivor
benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. A CalPERS member who
is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the
surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no
eligible spouse, an eligible survivor means the member's unmarried child(ren) under age 18.
Benefit
The Alternate Death benefit is a monthly allowance equal to the service retirement benefit that the member would have received
had the member retired on the date of their death and elected Optional Settlement 2. (A retiree who elects Optional Settlement 2
receives an allowance that has been reduced so that it will continue to be paid after their death to a surviving beneficiary.) If the
member has not yet attained age 50, the benefit is equal to that which would be payable if the member had retired at age 50,
based on service credited at the time of death. The allowance is payable to the surviving spouse until death, at which time it is
continued to any unmarried child(ren), if applicable. The total amount paid will be at least equal to the basic death benefit.
Cost-of-Living Adjustments (COLA)
Standard Benefit
Retirement and survivor allowances are adjusted each year in May for cost of living, beginning the second calendar year after
the year of retirement. The standard cost-of-living adjustment (COLA) is 2%. Annual adjustments are calculated by first determining the lesser of 1) 2% compounded from the end of the year of retirement or 2) actual rate of price inflation. The
resulting increase is divided by the total increase provided in prior years. For any given year, the COLA adjustment may be less
than 2% (when the rate of price inflation is low), may be greater than the rate of price inflation (when the rate of price inflation is
low after several years of high price inflation) or may even be greater than 2% (when price inflation is high after several years of
low price inflation).
Improved Benefit
Employers have the option of providing a COLA of 3%, 4%, or 5%, determined in the same manner as described above for the
standard 2% COLA. An improved COLA is not available with the 1.5% at age 65 formula.
Purchasing Power Protection Allowance (PPPA)
Retirement and survivor allowances are protected against price inflation by PPPA. PPPA benefits are cost-of-living adjustments
that are intended to maintain an individual’s allowance at 80% of the initial allowance at retirement adjusted for price inflation
since retirement. The PPPA benefit will be coordinated with other cost-of-living adjustments provided under the plan.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 74
Employee Contributions
Each employee contributes toward their retirement based upon the retirement formula. The standard employee contribution is as
described below.
x The percent contributed below the monthly compensation breakpoint is 0%.
x The monthly compensation breakpoint is $0 for all PEPRA members and Classic members covered by a full or
supplemental formula and $133.33 for Classic members covered by a modified formula.
x The percent contributed above the monthly compensation breakpoint depends upon the benefit formula, as shown in
the table below.
Benefit Formula Percent Contributed
above the Breakpoint
Miscellaneous, 1.5% at age 65 2%
Miscellaneous, 2% at age 60 7%
Miscellaneous, 2% at age 55 7%
Miscellaneous, 2.5% at age 55 8%
Miscellaneous, 2.7% at age 55 8% Miscellaneous, 3% at age 60 8%
Miscellaneous, 2% at age 62 50% of the Total Normal Cost
Miscellaneous, 1.5% at age 65 50% of the Total Normal Cost
Safety, Half Pay at age 55 Varies by entry age
Safety, 2% at age 55 7% Safety, 2% at age 50 9%
Safety, 3% at age 55 9%
Safety, 3% at age 50 9%
Safety, 2% at age 57 50% of the Total Normal Cost
Safety, 2.5% at age 57 50% of the Total Normal Cost
Safety, 2.7% at age 57 50% of the Total Normal Cost
The employer may choose to “pick-up” these contributions for classic members (Employer Paid Member Contributions or
EPMC). EPMC is prohibited for new PEPRA members.
An employer may also include Employee Cost Sharing in the contract, where employees agree to share the cost of the employer
contribution. These contributions are paid in addition to the member contribution.
Auxiliary organizations of the CSU system may elect reduced contribution rates, in which case the offset is $317 and the
contribution rate is 6% if members are not covered by Social Security. If members are covered by Social Security, the offset is
$513 and the contribution rate is 5%.
Refund of Employee Contributions
If the member’s service with the employer ends, and if the member does not satisfy the eligibility conditions for any of the
retirement benefits above, the member may elect to receive a refund of their employee contributions, which are credited with 6%
interest compounded annually.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 75
1959 Survivor Benefit
This is a pre-retirement death benefit available only to members not covered by Social Security. Any agency joining CalPERS
subsequent to 1993 is required to provide this benefit if the members are not covered by Social Security. The benefit is optional
for agencies joining CalPERS prior to 1994. Levels 1, 2, and 3 are now closed. Any new agency or any agency wishing to add
this benefit or increase the current level may only choose the 4th or Indexed Level.
This benefit is not included in the results presented in this valuation. More information on this benefit is available on the
CalPERS website.
Appendix C - Participant Data
x Active Members 77
x Transferred and Separated Members 78
x Retired Members and Beneficiaries 79
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 77
Active Members
Counts of members included in the valuation are counts of the records 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.
Distribution of Active Members by Age and Service
Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+ Total
15-24 22 0 0 0 0 0 22
25-29 57 5 0 0 0 0 62
30-34 34 20 0 0 0 0 54
35-39 43 24 6 3 1 0 77
40-44 29 26 5 10 6 0 76
45-49 29 14 8 15 3 1 70
50-54 21 17 3 13 15 8 77
55-59 16 16 6 12 5 14 69
60-64 8 12 5 3 7 12 47
65 and Over 6 1 3 3 1 4 18
All Ages 265 135 36 59 38 39 572
Distribution of Average Annual Salaries by Age and Service
Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+
Average
Salary
15-24 $50,890 $0 $0 $0 $0 $0 $50,890
25-29 61,834 80,334 0 0 0 0 63,326
30-34 62,143 86,470 0 0 0 0 71,153
35-39 94,009 87,748 83,198 101,124 111,621 0 91,721
40-44 95,780 88,553 97,463 97,307 93,839 0 93,466
45-49 91,835 103,442 96,583 87,295 85,089 117,439 93,803
50-54 98,383 120,032 84,366 99,334 94,911 118,961 104,239
55-59 82,678 123,228 119,003 104,683 148,031 103,914 108,111
60-64 87,281 105,604 85,940 99,387 71,507 122,643 99,268
65 and Over 79,155 15,122 57,387 53,999 63,842 67,878 64,420
Average $78,499 $98,386 $92,448 $94,806 $96,267 $109,414 $89,041
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 78
Transferred and Separated Members
Distribution of Transfers to Other CalPERS Plans by Age, Service, and average Salary
Years of Service at Valuation Date
Attained Age 0-4 5-9 10-14 15-19 20-24 25+ Total Average Salary
15-24 3 0 0 0 0 0 3 $83,822
25-29 26 0 0 0 0 0 26 74,122
30-34 25 1 0 0 0 0 26 92,193
35-39 27 3 1 0 0 0 31 103,040
40-44 39 10 2 0 0 0 51 119,230
45-49 32 6 1 1 1 0 41 137,496
50-54 18 6 0 1 2 0 27 141,011
55-59 18 10 0 1 0 0 29 147,358
60-64 14 4 2 1 0 0 21 108,602
65 and Over 9 0 2 1 0 0 12 115,923
All Ages 211 40 8 5 3 0 267 $117,005
Distribution of Separated Participants with Funds on Deposit by Age, Service, and average Salary
Years of Service at Valuation Date
Attained Age 0-4 5-9 10-14 15-19 20-24 25+ Total
Average
Salary
15-24 4 0 0 0 0 0 4 $45,105
25-29 21 1 0 0 0 0 22 53,854
30-34 33 1 0 0 0 0 34 56,475
35-39 38 6 0 1 0 0 45 66,663
40-44 51 9 3 0 0 0 63 69,079
45-49 42 7 3 2 0 0 54 63,681
50-54 33 10 2 1 1 0 47 73,781
55-59 24 11 0 0 0 0 35 57,061
60-64 26 3 0 0 0 1 30 58,013
65 and Over 23 1 1 0 0 0 25 48,606
All Ages 295 49 9 4 1 1 359 $62,664
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 79
Retired Members and Beneficiaries
Distribution of Retirees and Beneficiaries by Age and Retirement Type*
Attained Age Service Retirement
Non-
Industrial Disability Industrial Disability
Non-
Industrial Death Industrial Death Death After Retirement Total
Under 30 0 0 0 0 0 0 0
30-34 0 0 0 0 0 0 0
35-39 0 0 0 0 0 0 0
40-44 0 1 1 0 0 0 2
45-49 0 1 8 0 0 0 9
50-54 13 4 4 0 0 0 21
55-59 60 2 5 0 0 2 69
60-64 116 7 1 1 0 4 129
65-69 142 2 0 1 0 6 151
70-74 131 5 1 0 0 13 150
75-79 89 1 1 0 0 8 99
80-84 47 0 0 0 0 13 60
85 and Over 27 2 0 0 0 16 45
All Ages 625 25 21 2 0 62 735
Distribution of Average Annual Disbursements to Retirees and Beneficiaries by Age and Retirement Type*
Attained
Age
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death After
Retirement Average
Under 30 $0 $0 $0 $0 $0 $0 $0
30-34 0 0 0 0 0 0 0
35-39 0 0 0 0 0 0 0
40-44 0 26,099 310 0 0 0 13,204
45-49 0 26,941 806 0 0 0 3,710
50-54 13,229 16,574 1,455 0 0 0 11,623
55-59 18,963 19,754 1,127 0 0 11,139 17,467
60-64 43,708 14,479 153 33,684 0 22,846 41,060
65-69 41,720 24,783 0 17,751 0 29,063 40,834
70-74 40,713 18,127 198 0 0 27,583 38,552
75-79 43,661 320 19,860 0 0 41,620 42,818
80-84 34,587 0 0 0 0 34,359 34,537
85 and Over 25,876 15,667 0 0 0 25,597 25,323
All Ages $38,156 $17,282 $1,830 $25,718 $0 $29,610 $35,653
* Counts of members do not include alternate payees receiving benefits while the member is still w orking. Therefore, the total counts may not
match information on C-1 of the report. Multiple records may exist for those who have service in more than one coverage group. This does not
result in double counting of liabilities.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 80
Retired Members and Beneficiaries (continued)
Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type*
Years Retired Service Retirement
Non-
Industrial Disability Industrial Disability
Non-
Industrial Death Industrial Death Death After Retirement Total
Under 5 Yrs 179 1 8 1 0 24 213
5-9 169 5 6 0 0 11 191
10-14 100 4 2 0 0 9 115
15-19 99 3 4 1 0 12 119
20-24 39 2 0 0 0 2 43
25-29 31 4 0 0 0 4 39
30 and Over 8 6 1 0 0 0 15
All Years 625 25 21 2 0 62 735
Distribution of Average Annual Disbursements to Retirees and Beneficiaries by Years Retired and Retirement Type*
Years
Retired
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death After
Retirement Average
Under 5 Yrs $34,970 $15,784 $1,088 $33,684 $0 $31,581 $33,219
5-9 40,429 21,184 1,089 0 0 42,957 38,835
10-14 48,959 18,334 163 0 0 27,889 45,396
15-19 43,328 19,969 5,664 17,751 0 15,914 38,494
20-24 17,857 9,575 0 0 0 43,429 18,661
25-29 24,418 20,634 0 0 0 19,126 23,487
30 and Over 14,585 12,570 198 0 0 0 12,820
All Years $38,156 $17,282 $1,830 $25,718 $0 $29,610 $35,653
* Counts of members do not include alternate payees receiving benefits while the member is still working. Therefore, the total
counts may not match information on C-1 of the report. Multiple records may exist for those who have service in more than one
coverage group. This does not result in double counting of liabilities.
Appendix D - Glossary
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 82
Glossary
Accrued Liability (Actuarial Accrued Liability)
The portion of the Present Value of Benefits allocated to prior years. It can also be expressed as the Present Value of
Benefits minus the present value of future Normal Cost. Different actuarial cost methods and different assumptions will lead
to different measures of Accrued Liability.
Actuarial Assumptions
Assumptions made about certain events that will affect pension costs. Assumptions generally can be broken down into two
categories: demographic and economic. Demographic assumptions include such things as mortality, disability, and
retirement rates. Economic assumptions include discount rate, wage inflation, and price inflation.
Actuarial Methods
Procedures employed by actuaries to achieve certain funding goals of a pension plan. Actuarial methods include an
actuarial cost method, an amortization policy, and an asset valuation method.
Actuarial Valuation The determination as of a valuation date of the Normal Cost, Accrued Liability, and related actuarial present values for a
pension plan. These valuations are performed annually or when an employer is contemplating a change in plan provisions.
Actuary
A business professional proficient in mathematics and statistics who measures and manages risk. A public retirement system actuary in California performs actuarial valuations necessary to properly fund a pension plan and disclose its
liabilities and must satisfy the qualification standards for actuaries issuing statements of actuarial opinion in the United
States with regard to pensions.
Amortization Bases
Separate payment schedules for different portions of the Unfunded Accrued Liability (UAL). The total UAL of a rate plan can
be segregated by cause. The impact of such individual causes on the UAL are quantified at the time of their occurrence,
resulting in new amortization bases. Each base is separately amortized and paid for over a specific period of time.
Generally, in an actuarial valuation, the separate bases consist of changes in UAL due to contract amendments, actuarial assumption changes, method changes, and/or experience gains and losses.
Amortization Period
The number of years required to pay off an Amortization Base.
Classic Member (under PEPRA)
A member who joined a public retirement system prior to January 1, 2013, and who is not defined as a new member under
PEPRA. (See definition of New Member below.)
Discount Rate
The rate used to discount the expected future benefit payments to the valuation date to determine the Projected Value of
Benefits. Different discount rates will produce different measures of the Projected Value of Benefits. The discount rate for
funding purposes is based on the assumed long-term rate of return on plan assets, net of investment and administrative
expenses. This rate is called the “actuarial interest rate” in Section 20014 of the California Public Employees’ Retirement
Law.
Entry Age
The earliest age at which a plan member begins to accrue benefits under a defined benefit pension plan. In most cases, this
is the age of the member on their date of hire.
Entry Age Actuarial Cost Method
An actuarial cost method that allocates the cost of the projected benefits on an individual basis as a level percent of
earnings for the individual between entry age and retirement age. This method yields a total normal cost rate, expressed as
a percentage of payroll, which is designed to remain level throughout the member’s career.
Fresh Start
A Fresh Start is when multiple amortization bases are combined into a single base and amortized over a new Amortization
Period.
CalPERS Actuarial Valuation - June 30, 2024
Miscellaneous Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 83
Glossary (continued)
Funded Ratio
Defined as the Market Value of Assets divided by the Accrued Liability. Different actuarial cost methods and different
assumptions will lead to different measures of Funded Ratio. The Funded Ratio with the Accrued Liability equal to the
funding target is a measure of how well funded a rate plan is. A ratio greater than 100% means the rate plan has more
assets than the funding target and the employer need only contribute the Normal Cost. A ratio less than 100% means
assets are less than the funding target and contributions in addition to Normal Cost are required.
Funded Status
Any comparison of a particular measure of plan assets to a particular measure of pension obligations. The methods and
assumptions used to calculate a funded status should be consistent with the purpose of the measurement.
Funding Target
The Accrued Liability measure upon which the funding requirements are based. The funding target is the Accrued Liability
under the Entry Age Actuarial Cost Method using the assumptions adopted by the board.
GASB 68
Statement No. 68 of the Governmental Accounting Standards Board; the accounting standard governing a state or local
governmental employer’s accounting and financial reporting for pensions.
New Member (under PEPRA) A new member includes an individual who becomes a member of a public retirement system for the first time on or after
January 1, 2013, and who was not a member of another public retirement system prior to that date, and who is not subject
to reciprocity with another public retirement system.
Normal Cost
The portion of the Present Value of Benefits allocated to the upcoming fiscal year for active employees. Different actuarial
cost methods and different assumptions will lead to different measures of Normal Cost. The Normal Cost under the Entry
Age Actuarial Cost Method, using the assumptions adopted by the board, plus the required amortization of the UAL, if any,
make up the required contributions.
PEPRA
The California Public Employees’ Pension Reform Act of 2013.
Present Value of Benefits (PVB)
The total dollars needed as of the valuation date to fund all benefits earned in the past or expected to be earned in the
future for current members.
Traditional Unit Credit Actuarial Cost Method
An actuarial cost method that sets the Accrued Liability equal to the Present Value of Benefits assuming no future pay
increases or service accruals. The Traditional Unit Credit Cost Method is used to measure the accrued liability on a
termination basis.
Unfunded Accrued Liability (UAL)
The Accrued Liability minus the Market Value of Assets. If the UAL for a rate plan is positive, the employer is required to
make contributions in excess of the Normal Cost.
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 2025
Safety Plan of the City of Carlsbad (CalPERS ID: 3747905882)
Annual Valuation Report as of June 30, 2024
Dear Employer,
Attached to this letter is the June 30, 2024, actuarial valuation report for the plan noted above. Provided in this report is the determination of the minimum required employer contributions for fiscal year (FY) 2026-27. 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.
Required Contributions
The table below shows the minimum required employer contributions and the PEPRA member contribution rates for FY 2026-27
along with an estimate of the employer contribution requirements for FY 2027-28. The required employer and member
contributions in this report do not reflect any cost sharing arrangement between the agency and the employees.
Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
PEPRA Member
Contribution Rate
2026-27 19.79% $10,376,036 14.00%
Projected Results
2027-28 19.5% $10,779,000 TBD
The actual investment return for FY 2024-25 was not known at the time this report was prepared. The projection UAL payment
above assumes the investment return for that year would be 6.8%. To the extent the actual investment return for FY 2024-25
differs from 6.8%, the actual UAL contribution requirement for FY 2027-28 will differ from that shown above. For additional
information on future contribution requirements, please refer to Projected Employer Contributions. This section also contains projected required contributions through FY 2031-32.
PEPRA Member Contribution Rate
The employee contribution rate for PEPRA members can change based on the results of the actuarial valuation. See Member
Contribution Rates for more information.
Report Navigation Features
The valuation report has a number of features to ease navigation and allow the reader to find specific information more quickly.
The tables of contents are “clickable.” This is true for the main table of contents that follows the title page and the intermediate
tables of contents at the beginning of sections. The Adobe navigation pane on the left can also be used to skip to specific
exhibits.
Attachment B
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 2
There are a number of links throughout the document in blue text. Links that are internal to the document are not underlined,
while underlined links will take you to the CalPERS website. Examples are shown below.
Internal Bookmarks CalPERS Website Links
Required Employer Contributions Required Employer Contribution Search Tool
Member Contribution Rates Public Agency PEPRA Member Contribution Rates
Summary of Key Valuation Results Pension Outlook Overview
Funded Status – Funding Policy Basis Interactive Summary of Public Agency Valuation Results
Projected Employer Contributions Public Agency Actuarial Valuation Reports
Further descriptions of general changes are included in the Highlights and Executive Summary section and in Appendix A -
Actuarial Methods and Assumptions. The effects of any changes on the required contributions are included in the Reconciliation of Required Employer Contributions section.
Questions
A CalPERS actuary is available to answer questions about this report. Other questions may be directed to the Customer Contact
Center at 888 CalPERS (or 888-225-7377).
Sincerely,
Nina Ramsey, ASA, MAAA
Senior Actuary, CalPERS
Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
~~
~JP
&7-e: -
California Public Employees’ Retirement System
Actuarial Valuation for the
Safety Plan
of the City of Carlsbad
as of June 30, 2024
(CalPERS ID: 3747905882)
(Rate Plan ID: 317)
Required Contributions for Fiscal Year
July 1, 2026 — June 30, 2027
CY Fin Job Instance ID: 470290 PY Fin Job Instance ID: 438721 Report ID: 473278
Table of Contents
Actuarial Certification.......................................................................................................................................................................................1
Highlights and Executive Summary .............................................................................................................................................................2
Introduction .......................................................................................................................................................................................................3 Purpose .............................................................................................................................................................................................................3
Summary of Key Valuation Results ..............................................................................................................................................................4
Changes Since the Prior Year’s Valuation ..................................................................................................................................................5
Subsequent Events .........................................................................................................................................................................................5
Assets ...................................................................................................................................................................................................................6
Reconciliation of the Market Value of Assets..............................................................................................................................................7
Asset Allocation................................................................................................................................................................................................8
CalPERS History of Investment Returns .....................................................................................................................................................9
Liabilities and Contributions ....................................................................................................................................................................... 10
Determination of Required Contributions.................................................................................................................................................. 11
Development of Accrued and Unfunded Liabilities ................................................................................................................................. 12
Required Employer Contributions .............................................................................................................................................................. 13
Member Contribution Rates ........................................................................................................................................................................ 14
Funded Status – Funding Policy Basis ..................................................................................................................................................... 15
Additional Employer Contributions............................................................................................................................................................. 16
Projected Employer Contributions ............................................................................................................................................................. 17
(Gain)/Loss Analysis 6/30/23 – 6/30/24 .................................................................................................................................................... 18
Schedule of Amortization Bases ................................................................................................................................................................ 19
Amortization Schedule and Alternatives ................................................................................................................................................... 21 Reconciliation of Required Employer Contributions................................................................................................................................ 23
Employer Contribution History .................................................................................................................................................................... 24
Funding History ............................................................................................................................................................................................. 24
Risk Analysis ................................................................................................................................................................................................... 25
Future Investment Return Scenarios......................................................................................................................................................... 26
Discount Rate Sensitivity............................................................................................................................................................................. 27 Mortality Rate Sensitivity ............................................................................................................................................................................. 27
Maturity Measures ........................................................................................................................................................................................ 28
Maturity Measures History........................................................................................................................................................................... 29
Funded Status – Termination Basis .......................................................................................................................................................... 30
Funded Status – Low-Default-Risk Basis ................................................................................................................................................. 31
Supplementary Information ......................................................................................................................................................................... 32
Normal Cost by Benefit Group.................................................................................................................................................................... 33
Summary of Valuation Data ........................................................................................................................................................................ 34
Status of PEPRA Transition ........................................................................................................................................................................ 35
Plan's Major Benefit Options....................................................................................................................................................................... 36
Appendix A - Actuarial Methods and Assumptions .............................................................................................................................. 38
Appendix B - Principal Plan Provisions.................................................................................................................................................... 64
Appendix C - Participant Data ..................................................................................................................................................................... 75
Appendix D - Glossary .................................................................................................................................................................................. 80
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 1
Actuarial Certification
It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles as well as the
applicable Standards of Practice promulgated by the Actuarial Standards Board. While this report is intended to be complete,
our office is available to answer questions as needed. All of the undersigned are actuaries who satisfy the Qualification
Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States of the American Academy of Actuaries with
regard to pensions.
Actuarial Methods and Assumptions
It is our opinion that the assumptions and methods, as recommended by the Chief Actuary and adopted by the CalPERS Board
of Administration, are internally consistent and reasonable for this plan.
Randall Dziubek, ASA, MAAA
Deputy Chief Actuary, Valuation Services, CalPERS
Scott Terando, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS
Actuarial Data and Rate Plan Results
To the best of my knowledge and having relied upon the attestation above that the actuarial methods and assumptions are
reasonable, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded
condition of the Safety Plan of the City of Carlsbad and satisfies the actuarial valuation requirements of Government Code
section 7504. This valuation and related validation work was performed by the CalPERS Actuarial Office. The valuation was
based on the member and financial data as of June 30, 2024, provided by the various CalPERS databases and the benefits
under this plan with CalPERS as of the date this report was produced.
Nina Ramsey, ASA, MAAA
Senior Actuary, CalPERS
Highlights and Executive Summary
• Introduction 3
• Purpose 3
• Summary of Key Valuation Results 4
• Changes Since the Prior Year’s Valuation 5
• Subsequent Events 5
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 3
Introduction
This report presents the results of the June 30, 2024, actuarial valuation of the Safety Plan of the City of Carlsbad of the
California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required contributions
for fiscal year (FY) 2026-27.
Purpose
This report documents the results of the actuarial valuation prepared by the CalPERS Actuarial Office using data as of June 30,
2024. This report contains actuarial information for the following rate plan(s).
• 317, Safety Fire Second Level
• 30366, Safety Police First Level
• 30367, Safety Police Second Level
• 30368, Safety Fire First Level
• 25275, Safety Fire PEPRA Level
• 25276, Safety Police PEPRA Level
The purpose of the valuation is to:
• Set forth the assets and accrued liabilities of this rate plan as of June 30, 2024;
• Determine the minimum required employer contributions for this rate plan for FY July 1, 2026, through June 30, 2027;
• Determine the required member contribution rate for FY July 1, 2026, through June 30, 2027, for employees subject
to the California Public Employees' Pension Reform Act of 2013 (PEPRA); and • Provide actuarial information as of June 30, 2024, to the CalPERS Board of Administration (board) 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 an Agent Employer Defined Benefit Pension Plan. A separate
accounting valuation report for such purposes is available from CalPERS and details for ordering are available on the CalPERS
website (www.calpers.ca.gov).
The measurements shown in this actuarial valuation may not be applicable for other purposes. The agency should contact a
CalPERS 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; changes in plan provisions or applicable law; and
differences between the required contributions determined by the valuation and the actual contributions made by the agency.
Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the guidance of the Actuarial Standards of Practice:
• 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 5.8% and
7.8%. • 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 2021.
• Plan maturity measures indicating how sensitive a plan may be to the risks noted above.
• The funded status on a termination basis.
• A low-default-risk obligation measure (LDROM) of benefit costs accrued as of the valuation date.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 4
Summary of Key Valuation Results
Below is a brief summary of key valuation results along with page references where more detailed information can be found.
Required Employer Contributions — page 13
Fiscal Year
2025-26
Fiscal Year
2026-27
Employer Normal Cost Rate 19.77% 19.79%
Unfunded Accrued Liability (UAL) Contribution Amount $9,387,155 $10,376,036
Paid either as
Option 1) 12 Monthly Payments of $782,263 $864,670
Option 2) Annual Prepayment in July $9,083,398 $10,040,280
Member Contribution Rates — page 14
Fiscal Year
2025-26
Fiscal Year
2026-27
Classic Member Contribution Rate 9.00% 9.00%
PEPRA Member Contribution Rate 14.00% 14.00%
Projected Employer Contributions — page 17
Fiscal Year Normal Cost
(% of payroll)
Annual
UAL Payment
2027-28 19.5% $10,779,000
2028-29 19.2% $11,913,000
2029-30 18.9% $11,958,000
2030-31 18.6% $11,959,000
2031-32 18.3% $12,154,000
Funded Status – Funding Policy Basis — page 15
June 30, 2023 June 30, 2024
Entry Age Accrued Liability (AL) $416,941,852 $437,748,382
Market Value of Assets (MVA) 294,206,830 316,809,397
Unfunded Accrued Liability (UAL) [AL – MVA] $122,735,022 $120,938,985
Funded Ratio [MVA ÷ AL] 70.6% 72.4%
Summary of Valuation Data — page 34
June 30, 2023 June 30, 2024
Active Member Count 225 219
Annual Covered Payroll $29,565,417 $30,102,696
Transferred Member Count 63 62
Separated Member Count 51 57
Retired Members and Beneficiaries Count 295 303
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 5
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. For rate plans that are not in a risk pool (non-pooled), benefit changes by contract
amendment are generally included in the first valuation that is prepared after the amendment becomes effective, even if the
effective date of the amendment is after the valuation date.
Please refer to the Plan’s Major Benefit Options and Appendix B - Principal Plan Provisions for a summary of the plan provisions
used in this valuation. The effect of any mandated benefit changes or plan amendments on the unfunded liability is shown in the
(Gain)/Loss Analysis 6/30/23 – 6/30/24 and the effect on the employer contribution is shown in the Reconciliation of Required
Employer Contributions. It should be noted that no change in liability or contribution is shown for any plan changes which were
already included in the prior year’s valuation.
Board Policy
On April 16, 2024, the board took action to modify the Funding Risk Mitigation Policy to remove the automatic change to the
discount rate when the investment return exceeds various thresholds. Rather than an automatic change to the discount rate, a
board discussion would be placed on the calendar. The 95th percentile return in the Future Investment Return Scenarios exhibit in this report, which includes returns high enough to trigger a board discussion, does not reflect any change in the discount rate.
Actuarial Methods and Assumptions
There are no significant changes to the actuarial methods or assumptions for the June 30, 2024, actuarial valuation.
Subsequent Events
This actuarial valuation report reflects fund investment return through June 30, 2024, as well as statutory changes, regulatory
changes and board actions through January 2025.
CalPERS will be completing an Asset Liability Management (ALM) review process in November 2025 that will review the capital
market assumptions and the CalPERS Total Fund Investment Policy and ascertain whether a change in the discount is
warranted. In addition, the Actuarial Office will be presenting the findings of its Experience Study which reviews economic
assumptions other than the discount rate as well as all demographic assumptions and makes recommendations to modify actuarial assumptions where appropriate. Any changes in actuarial assumptions will be reflected in the June 30, 2025, actuarial
valuations.
The 2024 annual benefit limit under Internal Revenue Code (IRC) section 415(b) and annual compensation limits under IRC
section 401(a)(17) and Government Code section 7522.10 were used for this valuation and are assumed to increase 2.3% per
year based on the price inflation assumption. The actual 2025 limits, determined in October 2024, are not reflected.
To the best of our knowledge, there have been no other s ubsequent events that could materially affect current or future
certifications rendered in this report.
Assets
• Reconciliation of the Market Value of Assets 7
• Asset Allocation 8
• CalPERS History of Investment Returns 9
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 7
Reconciliation of the Market Value of Assets
1. Market Value of Assets as of 6/30/23 including Receivables $294,206,830
2. Change in Receivables for Service Buybacks (45,823)
3. Employer Contributions 12,395,743
4. Employee Contributions 3,483,484
5. Benefit Payments to Retirees and Beneficiaries (20,856,776)
6. Refunds (143,951)
7. Transfers 0
8. Service Credit Purchase (SCP) Payments and Interest 67,836
9. Administrative Expenses (215,028)
10. Miscellaneous Adjustments 0
11. Investment Return (Net of Investment Expenses) 27,917,083
12. Market Value of Assets as of 6/30/24 including Receivables $316,809,397
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 8
Asset Allocation
CalPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and ranges and
manages those asset class allocations within their policy ranges . CalPERS Investment Belief No. 6 recognizes that strategic
asset allocation is the dominant determinant of portfolio risk and return.
The asset allocation shown below reflects the allocation of the Public Employees’ Retirement Fund (PERF) in its entirety. The
assets for City of Carlsbad Safety Plan are a subset of the PERF and are invested accordingly.
On March 20, 2024, the board adopted changes to the strategic asset allocation. The new allocation was effective July 1, 2024.
The asset allocation as of June 30, 2024, is shown below, along with the strategic asset allocation targets.
For more information see the Trust Level Review as of June 30, 2024, which is available on the CalPERS website.
31.8%
10.0%
7.3%
5.3%
6.4%
5.3%
5.3%
15.5%
13.2%
2.8%
(3.0%)
27%
10%
7%
5%
6%
5%
5%
17%
15%
8%
(5%)
(10%)0%10%20%30%40%
Public Equities - Cap Weighted
Public Equities - Factor Weighted
Treasury
Mortgage-Backed Securities
Investment Grade Corporates
High Yield
Emerging Market Sovereign Bonds
Private Equity
Real Assets
Private Debt
Strategic Financing
Current Allocation Strategic Asset Allocation Target■
0
0
_____ Q
____ Q
0
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 9
CalPERS History of Investment Returns
The following is a chart with 20 years of historical annual returns of the PERF for each fiscal year ending on June 30 as reported
by the Investment Office. Investment returns reported are net of investment expenses but without reduction for administrative
expenses. The assumed rate of return, however, is net of both investment and administrative expenses. Also, the Investment
Office uses lagged private asset valuations for investment performance reporting purposes. This can lead to a timing difference
in private asset influence on performance in the returns below and those used for financial reporting purposes. The investment
gain or loss calculation in this report relies on final assets that have been audited and are appropriate for financial reporting.
Because of these differences, the effective investment return for funding purposes in a single year can be higher or lower than
the return reported by the Investment Office shown here.
History of Investment Returns (2005 through 2024)
* As reported by the Investment Office with lagged private valuations and without any reduction for administrative expenses.
The table below shows annualized investment returns of the PERF for various time periods ending on June 30, 2024. These
returns are the annual rates that if compounded over the indicated number of years would equate to the actual time-weighted
investment performance of the PERF. It should be recognized that the annual rate of return is volatile, as the chart above
illustrates, so when looking at investment returns, it is informative to look at average returns over longer time horizons.
PERF Realized Rates of Return as of June 30, 2024
1 year 3 year 5 year 10 year 20 year 30 year
9.3% 2.8% 6.6% 6.2% 6.7% 7.7%
25 %
20.7% 21.3%
20 % 18.8% 18.4%
15 %
12.2% 11.9% 12.5% 11.2% 11.1% r-
I 10 % )' )' 8.6% , ' 9.3%
C ' .._ 5 % ' ::, ' I ...., ' ,,
Q) '-- -er::: 0% ro ::,
§ -5 % -2.9%
<( X.X% Actual Annual Return*
-10 % -(Before Netting Administrative Expenses)
0-- -0 Rolling 5-Year Return
-15 % Discount Rate/Expected Return
(Net of Administrative Expenses)
-20 % ■ Discount Rate Change
-23.6%
Discount Rate 7.75% 7.50% 7.375% 7.25% 7.00% 6.80% Change
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Fiscal Year Ending
Liabilities and Contributions
• Determination of Required Contributions 11
• Development of Accrued and Unfunded Liabilities 12
• Required Employer Contributions 13
• Member Contribution Rates 14
• Funded Status – Funding Policy Basis 15
• Additional Employer Contributions 16
• Projected Employer Contributions 17
• (Gain)/Loss Analysis 6/30/23 – 6/30/24 18
• Schedule of Amortization Bases 19
• Amortization Schedule and Alternatives 21
• Reconciliation of Required Employer Contributions 23
• Employer Contribution History 24
• Funding History 24
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 11
Determination of Required Contributions
Contributions to fund the plan are determined by an actuarial valuation performed each year. The valuation employs complex
calculations based on a set of actuarial assumptions and methods. See Appendix A for information on the assumptions and
methods used in this valuation. The valuation incorporates all plan experience through the valuation date and sets required
contributions for the fiscal year that begins two years after the valuation date.
Contribution Components
Two components comprise required contributions:
• Normal Cost — expressed as a percentage of pensionable payroll
• Unfunded Accrued Liability (UAL) Contribution — expressed as a dollar amount
Normal Cost represents the value of benefits allocated to the upcoming year for active employees. If all plan experience exactly
matched the actuarial assumptions, normal cost would be sufficient to fully fund all benefits. The employer and employees each
pay a share of the normal cost with contributions payable as part of the regular payroll reporting process. The contribution rate
for Classic members is set by statute based on benefit formula whereas for PEPRA members it is based on 50% of the total
normal cost.
When plan experience differs from the actuarial assumptions, UAL emerges. The new UAL may be positive or negative. If the
total UAL is positive (i.e., accrued liability exceeds assets), the employer is required to make contributions to pay off the UAL
over time. This is called the UAL Contribution component. There is an option to prepay this amount during July of each fiscal year, otherwise it is paid monthly.
In measuring the UAL each year, plan experience is split by source. Common sources of UAL include investment experience
different than expected, non-investment experience different than expected, assumption changes, and benefit changes. Each
source of UAL (positive or negative) forms a base that is amortized, or paid off, over a specified period of time in accordance with the CalPERS Actuarial Amortization Policy. The UAL Contribution is the sum of the payments on all bases. See the
Schedule of Amortization Bases section of this report for an inventory of existing bases and Appendix A for more information on
the amortization policy.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 12
Development of Accrued and Unfunded Liabilities
June 30, 2023 June 30, 2024
1. Present Value of Projected Benefits
a) Active Members $212,113,050 $220,160,817
b) Transferred Members 9,319,452 9,907,591
c) Separated Members 3,046,849 3,322,057
d) Members and Beneficiaries Receiving Payments 292,546,260 303,636,146
e) Total $517,025,611 $537,026,611
2. Present Value of Future Employer Normal Costs $58,763,668 $57,962,535
3. Present Value of Future Employee Contributions $41,320,091 $41,315,694
4. Entry Age Accrued Liability
a) Active Members [(1a) - (2) - (3)] $112,029,291 $120,882,588
b) Transferred Members (1b) 9,319,452 9,907,591
c) Separated Members (1c) 3,046,849 3,322,057
d) Members and Beneficiaries Receiving Payments (1d) 292,546,260 303,636,146
e) Total $416,941,852 $437,748,382
5. Market Value of Assets (MVA) $294,206,830 $316,809,397
6. Unfunded Accrued Liability (UAL) [(4e) - (5)] $122,735,022 $120,938,985
7. Funded Ratio [(5) ÷ (4e)] 70.6% 72.4%
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 13
Required Employer Contributions
The required employer contributions in this report do not reflect any cost sharing arrangement between the agency and the
employees.
Fiscal Year
Required Employer Contributions 2026-27
Employer Normal Cost Rate 19.79%
Plus
Unfunded Accrued Liability (UAL) Contribution Amount $10,376,036
Paid either as
1) Monthly Payment $864,670
Or
2) Annual Prepayment Option* $10,040,280
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) and the 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).
For Member Contribution Rates see the following page.
Fiscal Year Fiscal Year
2025-26 2026-27
Normal Cost Contribution as a Percentage of Payroll
Total Normal Cost1 31.30% 31.40%
Offset due to Employee Contributions2 (11.53%) (11.61%)
Employer Normal Cost 19.77% 19.79%
Projected Annual Payroll for Contribution Year $32,119,099 $32,702,785
Estimated Employer Contributions Based on Projected Payroll
Total Normal Cost $10,053,278 $10,268,674
Expected Employee Contributions (3,703,332) (3,796,793)
Employer Normal Cost $6,349,946 $6,471,881
Unfunded Liability Contribution $9,387,155 $10,376,036
% of Projected Payroll (illustrative only) 29.23% 31.73%
Estimated Total Employer Contribution $15,737,101 $16,847,917
% of Projected Payroll (illustrative only) 49.00% 51.52%
1 The Total Normal Cost is a blended rate for all benefit groups in the plan. For a breakout of normal cost by benefit
group, see Normal Cost by Benefit Group.
2 This is the expected employee contributions, taking into account individual benefit formula and any offset from the use
of a modified formula, divided by projected annual payroll. For member contribution rates above the breakpoint for each
benefit formula, see Member Contribution Rates.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 14
Member Contribution Rates
The required member contributions in this report do not reflect any cost sharing arrangement between the agency and the
employees.
Classic Members
Each member contributes toward their retirement based upon the retirement formula. The standard Classic member contribution
rate above the breakpoint, if any, is as described below.
Benefit Formula
Percent Contributed
above the Breakpoint
Safety, Half Pay at age 55 Varies by entry age
Safety, 2% at age 55 7%
Safety, 2% at age 50 9%
Safety, 3% at age 55 9%
Safety, 3% at age 50 9%
PEPRA Members
The California Public Employees’ Pension Reform Act of 2013 (“PEPRA”) established new benefit formulas, final compensation
period, and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or
after January 1, 2013). In accordance with Government Code Section 7522.30(b), “new members … shall have an initial
contribution rate of at least 50% of the normal cost rate.” The normal cost rate for the plan is dependent on the benefit levels,
actuarial assumptions, and demographics of the plan, particularly members’ entry age into the plan. Should the total normal cost
rate of the plan change by more than 1% from the base total normal cost rate established for the plan, the new member rate
shall be 50% of the new normal cost rate rounded to the nearest quarter percent.
The table below shows the determination of the PEPRA member contribution rates effective July 1, 2026, based on 50% of the
total normal cost rate for each respective rate plan as of the June 30, 2024, valuation.
Basis for Current Rate Rates Effective July 1, 2026
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change
in
Normal
Cost
Adj.
Needed
Member
Rate
25275 Safety Fire PEPRA
Level 28.040% 14.00% 28.40% 0.360% No 14.00%
25276 Safety Police PEPRA
Level 28.040% 14.00% 28.40% 0.360% No 14.00%
For a description of the methodology used to determine the Total Normal Cost for this purpose, see PEPRA Normal Cost Rate
Methodology in Appendix A.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 15
Funded Status – Funding Policy Basis
The table below provides information on the current funded status of the plan under the funding policy. The funded status for this
purpose is based on the market value of assets relative to the funding target produced by the entry age actuarial cost method
and actuarial assumptions adopted by the board. The actuarial cost method allocates the total expected cost of a member’s
projected benefit (Present Value of Benefits) to individual years of service (the Normal Cost). The value of the projected
benefit that is not allocated to future service is referred to as the Accrued Liability and is the plan’s funding target on the
valuation date. The Unfunded Accrued Liability (UAL) equals the funding target minus the assets. The UAL is an absolute
measure of funded status and can be viewed as employer debt. The Funded Ratio equals the assets divided by the funding
target. The funded ratio is a relative measure of the funded status and allows for comparisons between plans of different sizes.
June 30, 2023 June 30, 2024
1. Present Value of Benefits $517,025,611 $537,026,611
2. Entry Age Accrued Liability 416,941,852 437,748,382
3. Market Value of Assets (MVA) 294,206,830 316,809,397
4. Unfunded Accrued Liability (UAL) [(2) – (3)] $122,735,022 $120,938,985
5. Funded Ratio [(3) ÷ (2)] 70.6% 72.4%
A funded ratio of 100% (UAL of $0) implies that the funding of the plan is on target and that future contributions equal to the
normal cost of the active plan members will be sufficient to fully fund all retirement benefits if future experience matches the
actuarial assumptions. A funded ratio of less than 100% (positive UAL) implies that in addition to normal costs, payments toward
the UAL will be required. Plans with a funded ratio greater than 100% have a negative UAL (or surplus) but are required under
current law to continue contributing the normal cost in most cases, preserving the surplus for future contingencies.
Calculations for the funding target reflect the expected long-term investment return of 6.8%. If it were known on the valuation
date that future investment returns will average something greater/less than the expected return, calculated normal costs and
accrued liabilities provided in this report would be less/greater than the results shown. Therefore, for example, if actual a verage
future returns are less than the expected return, calculated normal costs and UAL contributions will not be sufficient to fully fund
all retirement benefits. Under this scenario, required future normal cost contributions will need to increase from those provided in
this report, and the plan will develop unfunded liabilities that will also add to required future contributions. For illustrative
purposes, funded statuses based on a 1% lower and higher average future investment return (discount rate) are as follows:
1% Lower
Average Return
Current
Assumption
1% Higher
Average Return
Discount Rate 5.8% 6.8% 7.8% 1. Present Value of Benefits $636,517,121 $537,026,611 $460,616,459
2. Entry Age Accrued Liability 499,554,480 437,748,382 387,440,665
3. Market Value of Assets (MVA) 316,809,397 316,809,397 316,809,397
4. Unfunded Accrued Liability (UAL) [(2) – (3)] $182,745,083 $120,938,985 $70,631,268
5. Funded Ratio [(3) ÷ (2)] 63.4% 72.4% 81.8%
The Risk Analysis section of the report provides additional information regarding the sensitivity of valuation results to the
expected investment return and other factors. Also provided in that section are measures of funded status that are appropriate
for assessing the sufficiency of plan assets to cover estimated termination liabilities.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 16
Additional Employer Contributions
The CalPERS amortization policy provides a systematic methodology for paying down a plan’s unfunded accrued liability (UAL)
over a reasonable period of years. The projected schedule of required payments for this plan under the amortization policy is
provided in Amortization Schedule and Alternatives. Certain aspects of the policy such as 1) layered amortization bases
(positive and negative) with different remaining payoff periods, and 2) the phase-in of required payments toward investment
gains and losses, can result in volatility in year-to-year projected UAL payments. Provided below is information on how an
Additional Discretionary Payment (ADP), together with your required UAL payment of $10,376,036 for FY 2026-27, may better
accomplish your agency’s specific objectives with regard to either smoothing out projected future payments or achieving a
greater reduction in UAL than would otherwise occur when making only the minimum required payment. Such additional
payments are allowed at any time and can also result in significant long-term savings.
Fiscal Year 2026-27 Employer Contribution Versus Agency Funding Objectives
The interest-to-payment ratio for the FY 2026-27 minimum required UAL payment is 75%, which means the required payment of $10,376,036 includes $7,821,278 of interest cost and results in a $2,554,758 reduction in the UAL, as can be seen in
Amortization Schedule and Alternatives (see columns labelled Current Amortization Schedule). If the interest-to-payment ratio is
close to 100%, and the reduction in the UAL is small, it may indicate that required contributions will be increasing in the coming
years, which would be shown in Projected Employer Contributions. Another measure that can be used to evaluate how well the
FY 2026-27 required UAL payment meets the agency’s specific funding objectives is the number of years required to pay off the existing UAL if the annual payment were held constant in future years . With an annual payment of $10,376,036 it would take
over 20 years to pay off the current UAL. A result that is longer than the agency’s target funding period suggests that the option
of supplementing the minimum payment with an ADP should be weighed against the agency’s budget constraints.
Provided below are select ADP options for consideration. Making such an ADP during FY 2026-27 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 Amortization Schedule and Alternatives. Agencies considering
making an ADP should contact CalPERS for additional information.
Fiscal Year 2026-27 Employer Contributions — Illustrative Scenarios
If the Annual UAL
Payment Each
Year Were…
The Current
UAL Would be
Paid Off in…
This Would
Require an ADP1
in FY 2026-27 of…
Plus the Estimated
Normal Cost of…
Estimated Total
Contribution
$10,376,036 Over 20 years $0 $6,471,881 $16,847,917
10,801,748 20 years 425,712 6,471,881 17,273,629
12,601,182 15 years 2,225,146 6,471,881 19,073,063
16,396,509 10 years 6,020,473 6,471,881 22,868,390
28,196,866 5 years 17,820,830 6,471,881 34,668,747
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. The calculations above are based on the projected UAL as of June 30, 2026, as determined in the June 30, 2024, 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 year s
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.
Additional Discretionary Payment History
The following table provides a recent history of actual ADPs made to the plan.
Fiscal
Year ADP Fiscal
Year ADP
2017-18 N/A 2021-22 $3,200,000
2018-19 $14,220,650 2022-23 0
2019-20 0 2023-24 0
2020-21 4,596,860 2024-25 0
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 17
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. In particular, the investment return beginning with FY 2024-25 is
assumed to be 6.80% per year, net of investment and administrative expenses. The actual long -term cost of the plan will
depend on the actual benefits and expenses paid and the actual investment experience of the fund.
The projected normal cost percentages below reflect that the normal cost is expected to continue to decline over time as new
employees are hired into lower cost benefit tiers. Future contribution requirements may differ significantly from those shown
below. The actuarial valuation does not include payroll beyond the valuation date. For the most realistic projections, the
employer should apply projected payroll amounts to the rates below based on the most recent information available, such as
current payroll as well as any plans to fill vacancies or add or remove positions.
Required
Contribution
Projected Future Employer Contributions
(Assumes 6.80% Return for Fiscal Year 2024-25 and Beyond)
2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
Normal Cost % 19.79% 19.5% 19.2% 18.9% 18.6% 18.3%
UAL Payment $10,376,036 $10,779,000 $11,913,000 $11,958,000 $11,959,000 $12,154,000
Total as a % of Payroll* 51.52% 51.6% 53.7% 52.6% 51.4% 50.7%
Projected Payroll $32,702,785 $33,618,462 $34,559,779 $35,527,454 $36,522,223 $37,544,845
*Illustrative only and based on the projected payroll shown.
The required UAL payments are expected to vary significantly from the projections above due to experience, particularly
investment experience. For projected contributions under alternate investment return scenarios, please see the Future
Investment Return Scenarios exhibit. Our online pension plan projection tool, Pension Outlook, is available in the Employers
section of the CalPERS website. Pension Outlook can help plan and budget pension costs under various scenarios.
For ongoing plans, investment gains and losses are amortized using an initial 5-year ramp. For more information, please see
Amortization of Unfunded Actuarial Accrued Liability in Appendix A. 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 investment loss, the relatively small
amortization payments during the initial ramp period could result in contributions that are less than interest on the UAL (i.e.
negative amortization) while the contribution impact of the increase in the UAL is phased in.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 18
(Gain)/Loss Analysis 6/30/23 – 6/30/24
To calculate the cost requirements of the plan, assumptions are made about future events that affect the amount and timing of
benefits to be paid and assets to be accumulated. Each year, actual experience is compared to the expected experience based
on the actuarial assumptions. This results in actuarial gains or losses, as shown below.
1. Total (Gain)/Loss for the Year
a) Unfunded Accrued Liability (UAL) as of 6/30/23 $122,735,022
b) Expected payment on the UAL during 2023-24 5,935,778
c) Interest through 6/30/24 [0.068 x (1a) - ((1.068)½ - 1) x (1b)] 8,147,485
d) Expected UAL before all other changes [(1a) - (1b) + (1c)] 124,946,729
e) Change due to plan changes 0
f) Change due to AL Significant Increase 0
g) Change due to assumption changes 0
h) Change due to method changes 0 i) Change due to discount rate change with Funding Risk Mitigation 0
j) Expected UAL after all other changes [(1d) + (1e) + (1f) + (1g) + (1h) + (1i)] 124,946,729
k) Actual UAL as of 6/30/24 120,938,985
l) Total (Gain)/Loss for 2023-24 [(1k) - (1j)] ($4,007,744)
2. Investment (Gain)/Loss for the Year
a) Market Value of Assets as of 6/30/23 $294,206,830
b) Prior fiscal year receivables (366,201)
c) Current fiscal year receivables 320,379 d) Contributions received 15,879,226
e) Benefits and refunds paid (21,000,727)
f) Transfers, SCP payments and interest, and miscellaneous adjustments 67,836
g) Expected return at 6.8% per year 20,010,661 h) Expected assets as of 6/30/24 [(2a) + (2b) + (2c) + (2d) + (2e) + (2f) + (2g)] 309,118,004
i) Actual Market Value of Assets as of 6/30/24 316,809,397
j) Investment (Gain)/Loss [(2h) - (2i)] ($7,691,394)
3. Non-Investment (Gain)/Loss for the Year
a) Total (Gain)/Loss (1l) ($4,007,744)
b) Investment (Gain)/Loss (2j) (7,691,394)
c) Non-Investment (Gain)/Loss [(3a) - (3b)] $3,683,650
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 19
Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution year.
• The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2024.
• The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuati on date: FY 2026-27.
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 provide 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 valuation 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 on the UAL for FY 2024-25 is based on the actuarial valuation two years ago, adjusted for additional discretionary payments, if
necessary, and the expected payment for FY 2025-26 is based on the actuarial valuation one year ago.
Reason for Base
Date
Est.
Ramp
Level
2026-27
Ramp
Shape
Escala-
tion
Rate
Amort.
Period
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Expected
Payment
2025-26
Balance
6/30/26
Minimum
Required
Payment
2026-27
Assets Change 6/30/03 No Ramp 2.80% 0 (5,404) (5,585) 0 0 0 0
Assumption Change 6/30/03 No Ramp 2.80% 0 (459,268) (474,626) 0 0 0 0
Method Change 6/30/04 No Ramp 2.80% 0 (119,537) (62,946) (62,615) (64,709) 0 0
Special (Gain)/Loss 6/30/09 No Ramp 2.80% 15 4,268,450 346,071 4,201,061 355,760 4,119,076 365,722
Special (Gain)/Loss 6/30/10 No Ramp 2.80% 16 4,059,845 316,194 4,009,147 325,047 3,945,852 334,148
Special (Gain)/Loss 6/30/11 No Ramp 2.80% 17 (3,722,420) (279,325) (3,686,879) (287,146) (3,640,838) (295,186)
(Gain)/Loss 6/30/12 No Ramp 2.80% 18 16,748,771 1,214,118 16,632,968 1,248,113 16,474,159 1,283,060
Payment (Gain)/Loss 6/30/12 No Ramp 2.80% 18 898,199 65,110 891,989 66,934 883,472 68,808
(Gain)/Loss 6/30/13 100% Up/Dn 2.80% 19 27,423,134 2,060,611 27,158,388 2,118,308 26,816,012 2,177,620
(Gain)/Loss 6/30/14 100% Up/Dn 2.80% 20 (18,798,593) (1,364,445) (18,666,824) (1,402,650) (18,486,612) (1,441,924)
(Gain)/Loss 6/30/15 100% Up/Dn 2.80% 21 11,468,192 805,968 11,415,109 828,535 11,335,094 851,734
(Gain)/Loss 6/30/16 100% Up/Dn 2.80% 22 13,519,380 921,956 13,485,911 947,770 13,423,489 974,308
Assumption Change 6/30/16 100% Up/Dn 2.80% 12 5,207,211 549,815 4,993,100 565,209 4,748,521 581,035
(Gain)/Loss 6/30/17 100% Up/Dn 2.80% 23 (7,180,846) (476,113) (7,177,109) (489,444) (7,159,341) (503,148)
Assumption Change 6/30/17 100% Up/Dn 2.80% 13 6,894,751 683,747 6,656,982 702,892 6,383,259 722,573
(Gain)/Loss 6/30/18 100% Up/Dn 2.80% 24 (2,353,755) (152,002) (2,356,725) (156,258) (2,355,499) (160,634)
Assumption Change 6/30/18 100% Up/Dn 2.80% 14 11,584,063 1,085,285 11,250,201 1,115,673 10,862,233 1,146,912
Method Change 6/30/18 100% Up/Dn 2.80% 14 1,432,571 134,214 1,391,284 137,973 1,343,304 141,836
Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 15 3,065,824 299,661 2,964,618 299,661 2,856,530 299,660
Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 16 5,549,895 526,195 5,383,496 526,195 5,205,782 526,195
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CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 20
Schedule of Amortization Bases (continued)
Reason for Base
Date
Est.
Ramp
Level
2026-27
Ramp
Shape
Escala-
tion
Rate
Amort.
Period
Balance
6/30/24
Expected
Payment
2024-25
Balance
6/30/25
Expected
Payment
2025-26
Balance
6/30/26
Minimum
Required
Payment
2026-27
Investment (Gain)/Loss 6/30/20 100% Up Only 0.00% 16 7,375,164 443,443 7,418,403 591,257 7,311,825 739,072
Assumption Change 6/30/21 No Ramp 0.00% 17 2,792,045 257,490 2,715,803 257,490 2,634,377 257,490
Net Investment (Gain) 6/30/21 80% Up Only 0.00% 17 (35,286,804) (1,450,543) (36,187,256) (2,175,814) (36,399,414) (2,901,086)
Non-Investment (Gain)/Loss 6/30/21 No Ramp 0.00% 17 2,905,209 267,926 2,825,878 267,926 2,741,152 267,926
Benefit Change 6/30/22 No Ramp 0.00% 18 157,443 14,158 153,518 14,158 149,326 14,158
Investment (Gain)/Loss 6/30/22 60% Up Only 0.00% 18 50,877,284 1,093,592 53,206,777 2,187,183 54,564,514 3,280,775
Non-Investment (Gain)/Loss 6/30/22 No Ramp 0.00% 18 6,005,846 540,067 5,856,116 540,067 5,696,205 540,067
Investment (Gain)/Loss 6/30/23 40% Up Only 0.00% 19 2,118,587 0 2,262,651 48,635 2,366,250 97,270
Non-Investment (Gain)/Loss 6/30/23 No Ramp 0.00% 19 8,521,492 0 9,100,953 818,390 8,874,060 818,390
Investment (Gain)/Loss 6/30/24 20% Up Only 0.00% 20 (7,691,394) 0 (8,214,409) 0 (8,772,989) (188,573)
Non-Investment (Gain)/Loss 6/30/24 No Ramp 0.00% 20 3,683,650 0 3,934,138 0 4,201,659 377,828
Total 120,938,985 7,360,036 121,556,674 9,387,155 120,121,458 10,376,036
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······················································································-························-------------------------------······································-··············································-·········································-··············································-·········································· ...................................................................................... -........................ _______________________________ ...................................... -.............................................. -......................................... -.............................................. -......................................... .
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CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 21
Amortization Schedule and Alternatives
The amortization schedule on the previous page(s) shows the minimum contributions required according to the CalPERS
amortization policy. Each year, many agencies express a desire for a more stable pattern of payments or indicate 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 th e
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 contact a CalPERS 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 an appropriate 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 su ch a scenario arise in
any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Policy.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 22
Amortization Schedule and Alternatives (continued)
Alternative Schedules
Current Amortization
Schedule 15 Year Amortization 10 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2026 120,121,458 10,376,036 120,121,458 12,601,182 120,121,458 16,396,509
6/30/2027 117,566,700 10,779,336 115,267,141 12,601,181 111,344,895 16,396,509
6/30/2028 114,421,431 11,912,799 110,082,731 12,601,182 101,971,526 16,396,510
6/30/2029 109,890,917 11,957,705 104,545,780 12,601,181 91,960,766 16,396,509
6/30/2030 105,005,920 11,959,152 98,632,318 12,601,181 81,269,276 16,396,510
6/30/2031 99,787,247 12,154,492 92,316,740 12,601,182 69,850,763 16,396,509
6/30/2032 94,011,829 12,355,302 85,571,702 12,601,181 57,655,793 16,396,510
6/30/2033 87,636,158 12,561,733 78,368,002 12,601,181 44,631,564 16,396,510
6/30/2034 80,613,609 12,629,008 70,674,451 12,601,182 30,721,687 16,396,509
6/30/2035 73,044,003 12,508,828 62,457,737 12,601,181 15,865,939 16,396,510
6/30/2036 65,083,860 12,036,183 53,682,288 12,601,181
6/30/2037 57,070,880 11,531,184 44,310,108 12,601,182
6/30/2038 49,034,902 10,992,363 34,300,619 12,601,181
6/30/2039 41,009,317 10,584,634 23,610,486 12,601,182
6/30/2040 32,859,356 10,362,085 12,193,423 12,601,181
6/30/2041 24,385,192 9,000,602
6/30/2042 16,741,797 7,107,546
6/30/2043 10,535,013 10,276,144
6/30/2044 631,607 652,728
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
Total 201,737,860 189,017,721 163,965,095
Interest Paid 81,616,402 68,896,263 43,843,637
Estimated Savings 12,720,139 37,772,765
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 23
Reconciliation of Required Employer Contributions
Normal Cost (% of Payroll)
1. For Period 7/1/25 – 6/30/26
a) Employer Normal Cost 19.77%
b) Employee contribution 11.53%
c) Total Normal Cost 31.30%
2. Changes since the prior year annual valuation
a) Effect of demographic experience 0.10%
b) Effect of plan changes 0.00%
c) Effect of discount rate change due to Funding Risk Mitigation 0.00%
d) Effect of assumption changes 0.00%
e) Effect of method changes 0.00%
f) Net effect of the changes above [sum of (a) through (e)] 0.10%
3. For Period 7/1/26 – 6/30/27
a) Employer Normal Cost 19.79%
b) Employee contribution 11.61%
c) Total Normal Cost 31.40%
Employer Normal Cost Change [(3a) – (1a)] 0.02%
Employee Contribution Change [(3b) – (1b)] 0.08%
Unfunded Liability Contribution ($)
1. For Period 7/1/25 – 6/30/26 9,387,155
2. Changes since the prior year annual valuation
a) Effect of adjustments to prior year’s amortization schedule 0
b) Effect of elimination of amortization bases 64,709
c) Effect of progression of amortization bases 1 734,917
d) Effect of investment (gain)/loss during prior year2 (188,573)
e) Effect of non-investment (gain)/loss during prior year 377,828
f) Effect of re-amortizing existing bases due to Funding Risk Mitigation 0
g) Effect of Golden Handshake 0
h) Effect of plan changes 0
i) Effect of AL Significant Increase (Government Code section 20791) 0
j) Effect of assumption changes 0
k) Effect of adjustments to the amortization schedule (e.g., Fresh Start) 0
l) Effect of method change 0
m) Net effect of the changes above [sum of (a) through (l)] 988,881
3. For Period 7/1/26 – 6/30/27 [(1) + (2m)] 10,376,036
The amounts shown for the period 7/1/25 – 6/30/26 may be different if a prepayment of unfunded actuarial liability is made or a
plan change became effective after the prior year’s actuarial valuation was performed.
1 Includes scheduled escalation in individual amortization base payments due to the 5-year ramp and payroll growth assumption used in the pre-2019 amortization policy.
2 The unfunded liability contribution for the investment (gain)/loss during the year prior to the valuation date is 20% of the
“full” annual requirement due to the 5-year ramp. Increases to this amount that occur during the ramp period will be included in line c) for each of the next four years.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 24
Employer Contribution History
The table below provides a 10-year history of the employer contribution requirements for the plan, as determined by the annual
actuarial valuation. Changes due to prepayments or plan amendments after the valuation report was finalized are not reflected.
Valuation
Date
Contribution
Year
Employer
Normal Cost Rate
Unfunded Liability
Payment
06/30/2015 2017-18 19.718% $4,564,145
06/30/2016 2018-19 19.595% 4,523,960
06/30/2017 2019-20 20.410% 5,471,488
06/30/2018 2020-21 21.401% 4,146,779
06/30/2019 2021-22 20.39% 5,146,782
06/30/2020 2022-23 19.79% 5,881,880
06/30/2021 2023-24 21.55% 5,935,778
06/30/2022 2024-25 20.49% 7,360,036
06/30/2023 2025-26 19.77% 9,387,155
06/30/2024 2026-27 19.79% 10,376,036
Funding History
The table below shows the recent history of the actuarial accrued liability, market value of assets, unfunded accrued liability,
funded ratio and annual covered payroll.
Valuation
Date
Accrued
Liability
(AL)
Market Value of
Assets (MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
6/30/2015 $250,753,240 $187,057,814 $63,695,426 74.6% $18,114,657
6/30/2016 265,900,205 184,355,019 81,545,186 69.3% 18,517,461
6/30/2017 284,296,267 205,720,952 78,575,315 72.4% 19,289,890
6/30/2018 307,725,897 219,697,334 88,028,563 71.4% 20,345,676
6/30/2019 324,351,564 243,980,037 80,371,527 75.2% 21,491,727
6/30/2020 343,243,950 251,416,320 91,827,630 73.2% 24,919,615
6/30/2021 372,017,358 308,342,667 63,674,691 82.9% 25,834,015
6/30/2022 393,017,010 282,537,994 110,479,016 71.9% 27,595,346
6/30/2023 416,941,852 294,206,830 122,735,022 70.6% 29,565,417
6/30/2024 437,748,382 316,809,397 120,938,985 72.4% 30,102,696
Risk Analysis
• Future Investment Return Scenarios 26
• Discount Rate Sensitivity 27
• Mortality Rate Sensitivity 27
• Maturity Measures 28
• Maturity Measures History 29
• Funded Status – Termination Basis 30
• Funded Status – Low-Default-Risk Basis 31
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 26
Future Investment Return Scenarios
Analysis using the investment return scenarios from the Asset Liability Management process completed in 2021 was performed
to determine the effects of various future investment returns on required employer UAL contributions. The CalPERS Funding
Risk Mitigation Policy stipulates that when the investment return exceeds the discount rate by at least 2%, the board will
consider adjustments to the discount rate. The projections below use a discount rate of 6.8% for all scenarios even though an
annual return of 10.8% is high enough to trigger a board discussion on the discount rate. The projections also assume that all
other actuarial assumptions will be realized and that no further changes in assumptions, contributions, benefits , or funding will
occur.
The employer normal cost rates are not affected by investment returns, and since no future assumption changes are being
reflected, the projected employer normal cost rates for every future investment return scenario are the same as those shown
earlier in this report. See Projected Employer Contributions for more information on projecting the employer normal cost.
The first table shows projected UAL contribution requirements if the fund were to earn either 3.0% or 10.8% annually. These alternate investment returns were chosen because 90% of long-term average returns are expected to fall between them over the
20-year period ending June 30, 2044.
Assumed Annual Return
FY 2024-25
through FY 2043-44
Projected Employer UAL Contributions
2027-28 2028-29 2029-30 2030-31 2031-32
3.0% (5th percentile) $11,072,000 $12,797,000 $13,739,000 $14,951,000 $16,680,000
10.8% (95th percentile) $10,471,000 $10,958,000 $9,983,000 $8,553,000 $6,863,000
Required UAL contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns
will average less than 3.0% or greater than 10.8% over a 20-year period, the likelihood of a single investment return less than 3.0% or greater than 10.8% in any given year is much greater. The following analysis illustrates the effect of an extreme, single
year investment return.
The portfolio has an expected volatility (or standard deviation) of 12.0% per year. Accordingly, in any given year there is a 16%
probability that the annual return will be -5.2% or less and a 2.5% probability that the annual return will be -17.2% or less. These returns represent one and two standard deviations below the expected return of 6.8%.
The following table shows the effect of one and two standard deviation investment losses in FY 2024-25 on the FY 2027-28
contribution requirements. Note that a single-year investment gain or loss decreases or increases the required UAL contribution
amount incrementally for each of the next five years, not just one, due to the 5-year ramp in the amortization policy. However,
the contribution requirements beyond the first year are also impacted by investment returns beyond the first year. Historically,
significant downturns in the market are often followed by higher than average returns. Such investment gains would offset the
impact of these single year negative returns in years beyond FY 2027-28.
Assumed Annual Return for
Fiscal Year 2024-25
Required Employer
UAL Contributions
Projected Employer
UAL Contributions
2026-27 2027-28
(17.2%) (2 standard deviation loss) $10,376,036 $12,629,000
(5.2%) (1 standard deviation loss) $10,376,036 $11,704,000
• Without investment gains (returns higher than 6.8%) in FY 2025-26 or later, projected contributions rates would
continue to rise over the next four years due to the continued phase-in of the impact of the illustrated investment loss in
FY 2024-25.
• The Pension Outlook Tool can be used to model projected contributions for these scenarios beyond FY 2027-28 as well as to model other investment return scenarios.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 27
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 4.5% and 2.3%, 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, 2024, assuming
alternate discount rates by changing the two components independently. Results are shown using the current discount rate of
6.8% as well as alternate discount rates of 5.8% and 7.8%. The rates of 5.8% and 7.8% were selected since they illustrate the
impact of a 1.0% increase or decrease to the 6.8% assumption.
Sensitivity to the Discount Rate Due to Varying the Real Rate of Return Assumption
As of June 30, 2024
1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 2.3% 2.3% 2.3%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 40.01% 31.40% 24.94%
b) Accrued Liability $499,554,480 $437,748,382 $387,440,665
c) Market Value of Assets $316,809,397 $316,809,397 $316,809,397
d) Unfunded Liability/(Surplus) [(b) - (c)] $182,745,083 $120,938,985 $70,631,268
e) Funded Ratio 63.4% 72.4% 81.8%
Sensitivity to the Discount Rate Due to Varying the Price Inflation Assumption
As of June 30, 2024
1% Lower
Price Inflation
Current
Assumptions
1% Higher
Price Inflation
Discount Rate 5.8% 6.8% 7.8%
Price Inflation 1.3% 2.3% 3.3% Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 33.12% 31.40% 28.37%
b) Accrued Liability $453,361,463 $437,748,382 $408,153,410
c) Market Value of Assets $316,809,397 $316,809,397 $316,809,397
d) Unfunded Liability/(Surplus) [(b) - (c)] $136,552,066 $120,938,985 $91,344,013
e) Funded Ratio 69.9% 72.4% 77.6%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2024, plan costs and funded status under two different longevity
scenarios, namely assuming rates of post-retirement mortality are 10% lower or 10% higher than our current mortality
assumptions adopted in 2021. This type of analysis highlights the impact on the plan of a change in the mortality assumption.
As of June 30, 2024 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 31.75% 31.40% 31.07%
b) Accrued Liability $444,908,406 $437,748,382 $431,128,496 c) Market Value of Assets $316,809,397 $316,809,397 $316,809,397
d) Unfunded Liability/(Surplus) [(b) - (c)] $128,099,009 $120,938,985 $114,319,099
e) Funded Ratio 71.2% 72.4% 73.5%
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 28
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.
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 increases.
A mature plan will often have a ratio above 60%-65%.
Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2023 June 30, 2024
1. Retiree Accrued Liability $292,546,260 $303,636,146
2. Total Accrued Liability $416,941,852 $437,748,382
3. Ratio of Retiree AL to Total AL [(1) ÷ (2)] 70% 69%
Another measure of the maturity level of CalPERS and its plans is 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 declines. A mature plan will often have a ratio near or below one.
To calculate the support ratio for the rate plan, retirees and beneficiaries receiving a continuance are each counted as one, even
though they may have only worked a portion of their careers as an active member of this rate plan. For this reason, the support
ratio, while intuitive, may be less informative than the ratio of retiree liability to total accrued liability above.
For comparison, the support ratio for all CalPERS public agency plans as of June 30, 2023, was 0.78 and was calculated
consistently with how it is for the individual rate plan. Note that to calculate the support ratio for all public agency plans, a retiree
with service from more than one CalPERS agency is counted as a retiree more than once.
Support Ratio June 30, 2023 June 30, 2024
1. Number of Actives 225 219
2. Number of Retirees 295 303
3. Support Ratio [(1) ÷ (2)] 0.76 0.72
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 29
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 increases, investment
return) are exactly realized each 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
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
a higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For
example, a plan with an AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan
with an AVR 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 a plan matures.
Liability Volatility Ratio
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 changes in liability. For
example, a plan with an LVR of 8 is expected to have twice the contribution volatility of a plan with an LVR of 4 when there is a
change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a
longer-term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the
funded ratio approaches 100%.
Contribution Volatility June 30, 2023 June 30, 2024
1. Market Value of Assets without Receivables $293,840,629 $316,489,019
2. Payroll 29,565,417 30,102,696
3. Asset Volatility Ratio (AVR) [(1) ÷ (2)] 9.9 10.5
4. Accrued Liability $416,941,852 $437,748,382
5. Liability Volatility Ratio (LVR) [(4) ÷ (2)] 14.1 14.5
Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability Support Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
6/30/2017
66%
0.82
10.6
14.7
6/30/2018
67%
0.80
10.8
15.1
6/30/2019
71%
0.77
11.3
15.1
6/30/2020
70%
0.82
10.1
13.8
6/30/2021
69%
0.76
11.9
14.4
6/30/2022
69%
0.77
10.2
14.2
6/30/2023
70%
0.76
9.9
14.1
6/30/2024
69%
0.72
10.5
14.5
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 30
Funded Status – Termination Basis
The funded status measured on a termination basis is an estimated range for the financial position of the plan had the contract
with CalPERS been terminated as of June 30, 2024. The accrued liability on a termination basis (termination liability) is
calculated differently from the plan’s ongoing funding liability. For the 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. Unlike the actuarial cost method
used for ongoing plans, the termination liability is the present value of the benefits earned through the valuation date.
A more conservative investment policy and asset allocation strategy was adopted by the 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 remainder of the PERF and
consequently, a lower discount rate assumption. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.
The discount rate used for actual termination valuations is a weighted average of the 10-year and 30-year Treasury yields where
the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the
following analysis is based on 20-year Treasury bonds, which is a good proxy for most plans. The discount rate upon contract termination will depend on actual Treasury rates on the date of termination, which varies over time, as demonstrated below.
Valuation 20-Year Valuation 20-Year
Date Treasury Rate Date Treasury Rate
06/30/2015 2.83% 06/30/2020 1.18%
06/30/2016 1.86% 06/30/2021 2.00%
06/30/2017 2.61% 06/30/2022 3.38%
06/30/2018 2.91% 06/30/2023 4.06%
06/30/2019 2.31% 06/30/2024 4.61%
As Treasury rates are variable, the table below shows a range for the termination liability using discount rates 1% below and
above the 20-year Treasury rate on the valuation date. The price inflation assumption is the 20-year Treasury breakeven
inflation rate, that is, the difference between the 20-year inflation indexed bond and the 20-year fixed-rate bond.
The Market Value of Assets (MVA) also varies with interest rates and will fluctuate depending on other market conditions on the
date of termination. Since it is not possible to approximate how the MVA will change in different interest rate environments, the
results below use the MVA as of the valuation date.
Discount Rate: 3.61%
Price Inflation: 2.45%
Discount Rate: 5.61%
Price Inflation: 2.45%
1. Termination Liability1 $668,971,822 $492,194,187
2. Market Value of Assets (MVA) 316,809,397 316,809,397
3. Unfunded Termination Liability [(1) – (2)] $352,162,425 $175,384,790
4. Funded Ratio [(2) ÷ (1)] 47.4% 64.4%
1 The termination liabilities calculated above include a 5% contingency load. The contingency load and other actuarial
assumptions can be found in Appendix A.
In order to terminate the plan, first contact our Pension Contract Services unit to initiate a Resolution of Intent to Termin ate. The
completed Resolution will allow a CalPERS actuary to provide a preliminary termination valuation with a more up-to-date
estimate of the plan’s assets and liabilities. Before beginning this process, please consult with a CalPERS actuary.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 31
Funded Status – Low-Default-Risk Basis
Actuarial Standard of Practice (ASOP) No. 4, Measuring Pension Obligations and Determining Pension Plan Costs or
Contributions, requires the disclosure of a low-default-risk obligation measure (LDROM) of benefit costs accrued as of the
valuation date using a discount rate based on the yields of high quality fixed income securities with cash flows that replicate
expected benefit payments. Conceptually, this measure represents the level at which financial markets would value the accrued
plan costs, and would be approximately equal to the cost of a portfolio of low-default-risk bonds with similar financial
characteristics to accrued plan costs.
As permitted in ASOP No. 4, the Actuarial Office uses the Entry Age Actuarial Cost Method to calculate the LDROM. This
methodology is in line with the measure of “benefit entitlements” calculated by the Bureau of Economic Analysis and used by the
Federal Reserve to report the indebtedness due to pensions of plan sponsors and, conversely, the household wealth due to
pensions of plan members.
As shown below, the discount rate used for the LDROM is 5.35%, which is the Standard FTSE Pension Liability Index1 discount rate as of June 30, 2024.
Selected Measures on a Low-Default-Risk Basis June 30, 2024
Discount Rate 5.35%
1. Accrued Liability – Low-Default-Risk Basis (LDROM)
a) Active Members $157,242,306
b) Transferred Members 13,070,444
c) Separated Members 4,388,977
d) Members and Beneficiaries Receiving Payments 357,304,175
e) Total $532,005,902
2. Market Value of Assets (MVA) 316,809,397
3. Unfunded Accrued Liability – Low-Default-Risk Basis [(1e) – (2)] $215,196,505
4. Unfunded Accrued Liability – Funding Policy Basis 120,938,985
5. Present Value of Unearned Investment Risk Premium [(3) – (4)] $94,257,520
The difference between the unfunded liabilities on a low-default-risk basis and on the funding policy basis represents the present
value of the investment risk premium that must be earned in future years to keep future contributions for currently accrued plan
costs at the levels anticipated by the funding policy.
Benefit security for members of the plan relies on a combination of the assets in the plan, the investment income generated from
those assets and the ability of the plan sponsor to make necessary future contributions. If future returns fall short of 6.8%,
benefit security could be at risk without higher than currently anticipated future contributions.
The funded status on a low-default-risk basis is not appropriate for assessing the sufficiency of plan assets to cover the cost of
settling the plan’s benefit obligations (see Funded Status – Termination Basis), nor is it appropriate for assessing the need for
future contributions (see Funded Status – Funding Policy Basis).
1 This index is based on a yield curve of hypothetical AA-rated zero-coupon corporate bonds whose maturities range
from 6 months to 30 years. The index represents the single discount rate that would produce the same present value
as discounting a standardized set of liability cash flows for a fully open pension plan using the yield curve. The liability
cash flows are reasonably consistent with the pattern of benefits expected to be paid from the entire Public
Employees’ Retirement Fund for current and former plan members. A different index, hence a different discount rate,
may be needed to measure the LDROM for a subset of the fund, such as a single rate plan or a group of retirees.
Supplementary Information
• Normal Cost by Benefit Group 33
• Summary of Valuation Data 34
• Status of PEPRA Transition 35
• Plan's Major Benefit Options 36
CalPERS Actuarial Valuation - June 30, 2024 Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 33
Normal Cost by Benefit Group
The table below displays the Total Normal Cost broken out by benefit group for FY 2026-27. The Total Normal Cost is the annual cost of service accrual for the fiscal year for active employees and can be viewed as the long -term contribution rate for
the benefits contracted. Generally, the normal cost for a benefit group subject to more generous benefit provisions will exceed
the normal cost for a group with less generous benefits. However, based on the characteristics of the members (particularly
when the number of actives is small), this may not be the case. Future measurements of the Total Normal Cost for each group
may differ significantly from the current values due to such factors as: changes in the demographics of the group, changes in economic and demographic assumptions, changes in plan benefits or applicable law.
Rate
Plan
Identifier Benefit Group Name
Total
Normal
Cost
FY 2026-27
Offset due to
Employee
Contributions
FY 2026-27
Employer
Normal
Cost1
FY 2026-27
Number
of
Actives
Payroll on
6/30/2024
317 Safety Fire Second Level 30.45% 9.00% 21.45% 14 $1,933,199
30366 Safety Police First Level 37.76% 9.00% 28.76% 28 4,930,091
30367 Safety Police Second Level 34.63% 9.00% 25.63% 14 2,066,199
30368 Safety Fire First Level 33.51% 9.00% 24.51% 37 5,762,292
25275 Safety Fire PEPRA Level 26.22% 14.00% 12.22% 45 5,218,865
25276 Safety Police PEPRA Level 29.53% 14.00% 15.53% 81 10,192,050
Plan Total 31.40% 11.61% 19.79% 219 $30,102,696
1 The employer normal cost for individual rate plans is provided for illustrative purposes only. The employer normal cost rate for contribution purposes is the blended rate shown in the Plan Total row and is the employer normal cost contribution rate that applies to the covered payroll of members in every rate plan shown above.
Note that if a Benefit Group above has multiple bargaining units, each of which has separately contracted for different benefits
such as Employer Paid Member Contributions, then the Normal Cost shown for the respective benefit level does not reflect
those differences. Additionally, if a Second Level Benefit Group amended to the same benefit formula as a First Level Benefit
Group, their Normal Costs may be diss imilar due to demographic or other population differences. For questions in these
situations, please contact a CalPERS actuary.
CalPERS Actuarial Valuation - June 30, 2024 Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 34
Summary of Valuation Data
June 30, 2023 June 30, 2024
1. Active Members
a) Counts 225 219
b) Average Attained Age
38.03 38.80
c) Average Entry Age to Rate Plan 29.46 29.54
d) Average Years of Credited Service 8.71 9.40
e) Average Annual Covered Payroll $131,402 $137,455
f) Annual Covered Payroll $29,565,417 $30,102,696
g) Projected Annual Payroll for Contribution Year $32,119,099 $32,702,785
h) Present Value of Future Payroll $339,141,915 $335,838,079
2. Transferred Members
a) Counts 63 62
b) Average Attained Age 41.24 42.12
c) Average Years of Credited Service 2.87 2.87
d) Average Annual Covered Payroll $111,699 $119,952
3. Separated Members
a) Counts 51 57
b) Average Attained Age 43.20 42.59
c) Average Years of Credited Service 2.34 2.45
d) Average Annual Covered Payroll $77,762 $81,302
4. Retired Members and Beneficiaries Receiving Payments
a) Counts 295 303
b) Average Attained Age 64.03 64.49
c) Average Annual Benefits $69,269 $70,837
d) Total Annual Benefits $20,434,378 $21,463,697
5. Active to Retired Ratio [(1a) ÷ (4a)] 0.76 0.72
Counts of members included in the valuation are counts of the records 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.
Average Annual Benefits represents benefit amounts payable by this plan only. Some members may have service with
another agency and would therefore have a larger total benefit than would be included as part of the average shown here.
CalPERS Actuarial Valuation - June 30, 2024 Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 35
Status of PEPRA Transition
The California Public Employees' Pension Reform Act of 2013 (PEPRA), which took effect in January 2013, changed
CalPERS retirement benefits and placed compensation limits on new members joining CalPERS on or after January 1, 2013. One of the objectives of PEPRA was to improve the ability of employers to manage the costs of retirement benefits for their
members. While such changes can reduce future benefit costs in a meaningful way, the full impact on empl oyer contributions
will not occur until all active members are subject to the rules and provisions of PEPRA. The table below illustrates the status
of this transition as of June 30, 2024.
Classic PEPRA
PEPRA
as a Percent
of Total
Active Members
Count 93 126 57.5%
Average Attained Age 45.07 34.18
Average Entry Age 29.33 29.69
Average Years of Credited Service 16.02 4.52
Average Annual Covered Payroll $157,976 $122,309
Annual Covered Payroll $14,691,781 $15,410,915 51.2%
Present Value of Future Payroll $114,032,762 $221,805,317 66.0%
Transferred Members
Count 39 23 37.1%
Separated Members
Count 25 32 56.1%
Retired Members and Beneficiaries Receiving Payments
Count 295 8 2.6%
Average Annual Benefit $71,524 $45,531
Total Annual Benefits $21,099,448 $364,250 1.7%
Accrued Liabilities
Active Members $101,209,418 $19,673,170 16.3%
Transferred Members 9,126,200 781,391 7.9%
Separated Members 2,685,762 636,295 19.2%
Retired Members and Beneficiaries 297,190,206 6,445,940 2.1%
Total $410,211,586 $27,536,796 6.3%
CalPERS Actuarial Valuation - June 30, 2024 Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 36
Plan's Major Benefit Options
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in
Appendix B.
Benefit Group
Member Category Police Fire Police Fire Fire Police Police
Demographics
Actives Yes Yes Yes Yes Yes Yes No
Transfers/Separated Yes Yes Yes Yes Yes Yes No
Receiving Yes Yes Yes Yes No Yes Yes
Benefit Group Key 103033 103035 103037 108501 112321 112322 202170
Benefit Provision
Benefit Formula 2% @ 50 3% @ 50 3% @ 50 2% @ 50 2.7% @ 57 2.7% @ 57
Social Security Coverage No No No No No No
Full/Modified Full Full Full Full Full Full
Employee Contribution Rate 9.00% 9.00% 9.00% 9.00% 14.00% 14.00%
Final Average Compensation Period Three Year One Year One Year Three Year Three Year Three Year
Sick Leave Credit Yes Yes Yes Yes Yes Yes
Non-Industrial Disability Standard Standard Standard Standard Standard Standard
Industrial Disability Standard Standard Standard Standard Standard Standard
Pre-Retirement Death Benefits Optional Settlement 2 No No No No No No
1959 Survivor Benefit Level Level 3 Level 4 Level 3 Level 4 Level 4 Level 3
Special Yes Yes Yes Yes Yes Yes
Alternate (firefighters) No No No No No No
Post-Retirement Death Benefits
Lump Sum $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 Survivor Allowance (PRSA) Yes Yes Yes Yes Yes Yes Yes
COLA 2% 2% 2% 2% 2% 2% 2%
CalPERS Actuarial Valuation - June 30, 2024 Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 37
Plan's Major Benefit Options (Continued)
Shown below is a summary of the major optional benefits for which the agency has contracted. A description of principal standard and optional plan provisions is in
Appendix B.
Benefit Group
Member Category Police Police Fire Fire Fire
Demographics
Actives No No No No No
Transfers/Separated No No No No No
Receiving Yes Yes Yes Yes Yes
202171 202172 202173 202174 202175
Benefit Provision
Benefit Formula
Social Security Coverage
Full/Modified
Employee Contribution Rate
Final Average Compensation Period
Sick Leave Credit
Non-Industrial Disability
Industrial Disability
Pre-Retirement Death Benefits
Optional Settlement 2
1959 Survivor Benefit Level
Special
Alternate (firefighters)
Post-Retirement Death Benefits
Lump Sum $2,000 $2,000 $2,000 $2,000 $2,000 Survivor Allowance (PRSA) Yes Yes Yes Yes Yes
COLA 2% 2% 2% 2% 2%
Appendix A - Actuarial Methods and Assumptions
• Actuarial Data 39
• Actuarial Methods 39
• Actuarial Assumptions 43
• Miscellaneous 63
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 39
Actuarial Data
As stated in the Actuarial Certification, the data which serves as the basis of this valuation has been obtained from the various
CalPERS databases. We have reviewed the valuation data and believe that it is reasonable and appropriate in aggregate. We
are unaware of any potential data issues that would have a material effect on the results of this valuation, except that data does
not always contain the latest salary information for former members now in reciprocal systems and does not recognize the
potential for unusually large salary deviation in certain cases such as elected officials. Therefore, salary information in these
cases may not be accurate. These situations are relatively infrequent, however, and generally do not have a material impact on
the required employer contributions.
Actuarial Methods
Actuarial Cost Method
With one exception, the actuarial cost method used in this valuation is the Entry Age Actuarial Cost Method. This method is
used to calculate the required employer contributions and the PEPRA member contribution rate. Under this method, the cost of
the projected benefits is allocated on an individual basis as a level percent of earnings for the individual between entry age and
retirement age. The portion allocated to the year following the valuation date is the normal cost. This method yields a total
normal cost rate, expressed as a percentage of payroll, which is designed to remain level throughout the member’s career.
The actuarial accrued liability for active members is then calculated as the present value of benefits minus the present value of
future normal cost, or the portion of the total present value of benefits allocated to prior years. The actuarial accrued liability for
members currently receiving benefits and for members entitled to deferred benefits is equal to the present value of the benefits
expected to be paid. No normal costs are applicable for these participants.
To calculate the accrued liability on termination basis, this valuation used the Traditional Unit Credit Actuarial Cost Method. This
method differs from the entry age method only for active members where the accrued liability is the present value of benefits
assuming no future pay increases or service accruals.
Amortization of Unfunded Actuarial Accrued Liability
The excess of the total actuarial accrued liability over the market value of plan assets is called the unfunded actuarial accrued
liability (UAL). Funding requirements are determined by adding the normal cost and a payment toward the UAL. The UAL
payment is equal to the sum of individual amortization payments, each representing a different source of UAL for a given
measurement period.
Amortization payments are determined according to the CalPERS Actuarial Amortization Policy. The board adopted a new
policy effective for the June 30, 2019, actuarial valuation. The new policy applies prospectively only; amortization bases
(sources of UAL) established prior to the June 30, 2019, valuation will continue to be amortized according to the prior policy.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 40
Amortization of Unfunded Actuarial Accrued Liability (continued)
Prior Policy (Bases Established on or after June 30, 2013, and prior to June 30, 2019)
Amortization payments are determined as a level percentage of payroll whereby the payment increases each year at an escalation rate. Gains or losses are amortized over a fixed 30-year period with a 5-year ramp up at the beginning and a 5-year
ramp down at the end of the amortization period. All changes in liability due to plan amendments (other than golden
handshakes) are amortized over a 20-year period with no ramp. Changes in actuarial assumptions or changes in actuarial
methodology are amortized over a 20-year period with a 5-year ramp up at the beginning and a 5-year ramp down at the end of
the amortization period. Changes in unfunded accrued liability due to a Golden Handshake are amortized over a period of five
years (20 years prior to June 30, 2014). A summary is provided in the following table:
Driver
Source
(Gain)/Loss
Assumption/Method
Change
Benefit
Change
Golden
Handshake Investment
Non-
investment
Amortization
Period 30 Years 30 Years 20 Years
20
Years 5 Years
Escalation Rate
- Active Plans
- Inactive Plans
2.80%
0%
2.80%
0%
2.80%
0%
2.80%
0%
2.80%
0%
Ramp Up 5 5 5 0 0
Ramp Down 5 5 5 0 0
The 5-year ramp up means that the payments in the first four years of the amortization period are 20%, 40%, 60% and 80% of the “full” payment which begins in year five. The 5-year ramp down means that the reverse is true in the final four years of the
amortization period.
Current Policy (Bases Established on or after June 30, 2019)
Amortization payments are determined as a level dollar amount. Investment gains or losses are amortized over a fixed 20-year
period with a 5-year ramp up at the beginning of the amortization period. Non-investment gains or losses are amortized over a
fixed 20-year period with no ramps. All changes in liability due to plan amendments (other than golden handshakes) are
amortized over a 20-year period with no ramps. Changes in actuarial assumptions or changes in actuarial methodology are
amortized over a 20-year period with no ramps. Changes in unfunded accrued liability due to a Golden Handshake are
amortized over a period of five years. A summary is provided in the table below:
Driver
Source
(Gain)/Loss Assumption/
Method Change Benefit Change Golden Handshake Investment Non-investment
Amortization
Period 20 Years 20 Years 20 Years 20 Years 5 Years
Escalation Rate 0% 0% 0% 0% 0%
Ramp Up 5 0 0 0 0
Ramp Down 0 0 0 0 0
The 5-year ramp up means that the payments in the first four years of the amortization period are 20%, 40%, 60% and 80% of
the “full” payment which begins in year five.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 41
Amortization of Unfunded Actuarial Accrued Liability (continued)
Exceptions for Inconsistencies
An exception to the amortization rules above is used whenever their application results in inconsistencies. In these cases, a “fresh start” approach is used. This means that the current unfunded actuarial liability is projected and amortized over a set
number of years. For example, a fresh start is needed in the following situations:
• 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.
It should be noted that the actuary may determine that a fresh start is necessary under other circumstances. In all cases of a fresh start, the period is set by the actuary at what is deemed appropriate; however, the period will not be greater than 20 years.
Exceptions for Plans in Surplus
If a surplus exists (i.e., the Market Value of Assets exceeds the plan’s accrued liability) any prior amortization layers shall be
considered fully amortized, and the surplus shall not be amortized.
In the event of any subsequent unfunded liability, a Fresh Start shall be used with an amortization period of 20 years or les s.
Exceptions for Small Amounts
Where small unfunded liabilities are identified in annual valuations which result in small payment amounts, the actuary may
shorten the remaining period for these bases.
• When the balance of a single amortization base has an absolute value less than $250, the amortization period is
reduced to one year.
• When the entire unfunded liability is a small amount, the actuary may perform a Fresh Start and use an appropriate
amortization period.
Exceptions for Inactive Plans
The following exceptions apply to plans classified as Inactive. These plans have no active members and no expectation to have
active members in the future.
• Amortization of the unfunded liability is on a “level dollar” basis rather than a “level percent of pay” basis. For
amortization layers, which utilize a ramp up and ramp down, the “ultimate” payment is constant. • Actuarial judgment will be used to shorten amortization periods for Inactive plans with existing periods that are deemed
too long given the duration of the liability. The specific demographics of the plan will be used to determine if shorter
periods may be more appropriate.
Exceptions for Inactive Agencies
For a public agency with no active members in any CalPERS rate plan, the unfunded liability shall be amortized over a closed
amortization period of no more than 15 years.
Asset Valuation Method
The Actuarial Value of Assets is set equal to the market value of assets. Asset values include accounts receivable.
PEPRA Normal Cost Rate Methodology
Per Government Code section 7522.30(b), the “normal cost rate” shall mean the annual actuarially determined normal cost for
the plan of retirement benefits provided to the new member and shall be established based on actuarial assumptions used to
determine the liabilities and costs as part of the annual actuarial valuation. The plan of retirement benefits shall include any
elements that would impact the actuarial determination of the normal cost, including, but not limited to, the retirement form ula,
eligibility and vesting criteria, ancillary benefit provisions, and any automatic cost-of-living adjustments as determined by the public retirement system.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 42
PEPRA Normal Cost Rate Methodology (continued)
For purposes of setting member rates, it is preferable to determine total normal cost using a large active population so that the
rate remains relatively stable. While each CalPERS non-pooled plan has a sufficiently large active population for this purpose,
the PEPRA active population by itself may not be sufficiently large enough yet. The total PEPRA normal cost for each PEPRA benefit tier will be determined based on the entire active plan population (both PEPRA and Classic) only until the number of
members covered under the PEPRA formula meets either:
1. 50% of the active population, or
2. 25% of the active population and 100 or more PEPRA members
Once one of these conditions is met, the total PEPRA normal cost for each PEPRA benefit tier will be determined using the
entire active PEPRA population.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 43
Actuarial Assumptions
In 2021, CalPERS completed its most recent asset liability management study incorporating actuarial assumptions and strategic
asset allocation. In November 2021, the board adopted changes to the asset allocation that increased the expected volatility of
returns. The adopted asset allocation was expected to have a long-term blended return that continued to support a discount rate
assumption of 6.80%. The board also approved several changes to the demographic assumptions that more closely aligned with
actual experience.
For more details and additional rationale for the selection of the actuarial assumptions, please refer to the 2021 CalPERS
Experience Study and Review of Actuarial Assumptions that can be found on the CalPERS website under: Forms and
Publications. Click on “View All” and search for Experience Study.
All actuarial assumptions (except the discount rates and price inflation assumption used for the accrued liability on a termination
basis and the interest rate used for the low-default-risk obligation measure) represent an estimate of future experience rather
than observations of the estimates inherent in market data.
Economic Assumptions
Discount Rate The prescribed discount rate assumption, adopted by the board on November 17, 2021, is 6.80% compounded annually (net of
investment and administrative expenses) as of June 30, 2024. The discount rate is based on the long-term expected rate of
return on assets using a building-block method in which expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. The current assumption, originally based on
capital market assumptions developed by the Investment Office in 2021, has been reviewed for this valuation based on capital market assumptions developed by the Investment Office in 2023.
Termination Liability Discount Rate
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 accrued
liabilities on a termination basis in this report use discount rates that are based on the 20-year Treasury rate on the valuation
date.
To illustrate the impact of the variability of interest rates, the accrued liabilities on a termination basis in this report use discount
rates 1% below and 1% above the 20-year Treasury rate on the valuation date. The 20-year Treasury rate was 4.61% on June
30, 2024.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 44
Salary Increases
Annual increases vary by category, entry age, and duration of service. A sample of assumed increases due to seniority, merit
and promotion are shown below. Assumed wage inflation is combined with these factors to develop the total expected salary
increases.
Public Agency Miscellaneous
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.0764 0.0621 0.0521
1 0.0663 0.0528 0.0424
2 0.0576 0.0449 0.0346
3 0.0501 0.0381 0.0282
4 0.0435 0.0324 0.0229
5 0.0378 0.0276 0.0187
10 0.0201 0.0126 0.0108
15 0.0155 0.0102 0.0071
20 0.0119 0.0083 0.0047
25 0.0091 0.0067 0.0031
30 0.0070 0.0054 0.0020
Public Agency Fire
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.1517 0.1549 0.0631
1 0.1191 0.1138 0.0517
2 0.0936 0.0835 0.0423
3 0.0735 0.0613 0.0346
4 0.0577 0.0451 0.0284
5 0.0453 0.0331 0.0232
10 0.0188 0.0143 0.0077
15 0.0165 0.0124 0.0088
20 0.0145 0.0108 0.0101
25 0.0127 0.0094 0.0115
30 0.0112 0.0082 0.0132
Public Agency Police
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.1181 0.1051 0.0653
1 0.0934 0.0812 0.0532
2 0.0738 0.0628 0.0434
3 0.0584 0.0485 0.0353
4 0.0462 0.0375 0.0288
5 0.0365 0.0290 0.0235
10 0.0185 0.0155 0.0118
15 0.0183 0.0150 0.0131
20 0.0181 0.0145 0.0145
25 0.0179 0.0141 0.0161
30 0.0178 0.0136 0.0179
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 45
Salary Increases (continued)
Public Agency County Peace Officers
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.1238 0.1053 0.0890
1 0.0941 0.0805 0.0674
2 0.0715 0.0616 0.0510
3 0.0544 0.0471 0.0387
4 0.0413 0.0360 0.0293
5 0.0314 0.0276 0.0222
10 0.0184 0.0142 0.0072
15 0.0174 0.0124 0.0073
20 0.0164 0.0108 0.0074
25 0.0155 0.0094 0.0075
30 0.0147 0.0083 0.0077
Schools
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40)
0 0.0275 0.0275 0.0200
1 0.0422 0.0373 0.0298
2 0.0422 0.0373 0.0298
3 0.0422 0.0373 0.0298
4 0.0388 0.0314 0.0245
5 0.0308 0.0239 0.0179
10 0.0236 0.0160 0.0121
15 0.0182 0.0135 0.0103
20 0.0145 0.0109 0.0085
25 0.0124 0.0102 0.0058
30 0.0075 0.0053 0.0019
• The Miscellaneous salary scale is used for Local Prosecutors.
• The Police salary scale is used for Other Safety, Local Sheriff, and School Police.
Price Inflation
2.30% compounded annually.
Termination Liability Price Inflation
The breakeven inflation rate for 20-year Treasuries on the valuation date, 2.45%.
Wage Inflation
2.80% compounded annually. This is used in projecting individual salary increases.
Payroll Growth 2.80% compounded annually. This is used as the escalation rate of the amortization payments on level percent of payroll
amortization bases, that is, on any amortization bases established prior to 2019 for plans that currently have active members.
Miscellaneous Loading Factors
Credit for Unused Sick Leave
Total years of service is increased by 1% for those plans that have adopted the provision of providing Credit for Unused Sick
Leave.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 46
Conversion of Employer Paid Member Contributions (EPMC)
Total years of service is increased by the Employee Contribution Rate for those plans with the provision providing for the
Conversion of Employer Paid Member Contributions (EPMC) during the final compensation period.
Norris Decision (Best Factors) Employees hired prior to July 1, 1982, have projected benefit amounts increased in order to reflect the use of “Best Factors” in
the calculation of optional benefit forms. This is due to a 1983 Supreme Court decision, known as the Norris decision, which
required males and females to be treated equally in the determination of benefit amounts. Consequently, anyone already
employed at that time is given the best possible conversion factor when optional benefits are determined. No loading is
necessary for employees hired after July 1, 1982.
Termination Liability
The termination liabilities include a 5% contingency load. This load is for unforeseen improvements in mortality.
Demographic Assumptions
Pre-Retirement Mortality
The mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by
the CalPERS Board in November 2021. For purposes of the mortality rates, the rates incorporate generational mortality to
capture ongoing mortality improvement. Generational mortality explicitly assumes that members born more recently will live
longer than the members born before them thereby capturing the mortality improvement seen in the past and expected
continued improvement. For more details, please refer to the 2021 CalPERS Experience Study and Review of Actuarial
Assumptions report that can be found on the CalPERS website.
Rates vary by age and gender. This table only contains a sample of the 2017 base table rates for illustrative purposes. The non-industrial death rates are used for all plans. The industrial death rates are used for Safety plans , except for local Safety
members described in Government Code section 20423.6 where the agency has not specifically contracted for industrial death
benefits.
Miscellaneous Safety Non-Industrial Death Non-Industrial Death Industrial Death
(Not Job-Related) (Not Job-Related) (Job-Related)
Age Male Female Male Female Male Female
20 0.00039 0.00014 0.00038 0.00014 0.00004 0.00002
25 0.00033 0.00013 0.00034 0.00018 0.00004 0.00002
30 0.00044 0.00019 0.00042 0.00025 0.00005 0.00003
35 0.00058 0.00029 0.00048 0.00034 0.00005 0.00004
40 0.00075 0.00039 0.00055 0.00042 0.00006 0.00005
45 0.00093 0.00054 0.00066 0.00053 0.00007 0.00006
50 0.00134 0.00081 0.00092 0.00073 0.00010 0.00008
55 0.00198 0.00123 0.00138 0.00106 0.00015 0.00012
60 0.00287 0.00179 0.00221 0.00151 0.00025 0.00017
65 0.00403 0.00250 0.00346 0.00194 0.00038 0.00022
70 0.00594 0.00404 0.00606 0.00358 0.00067 0.00040
75 0.00933 0.00688 0.01099 0.00699 0.00122 0.00078
80 0.01515 0.01149 0.02027 0.01410 0.00225 0.00157
• The pre-retirement mortality rates above are for 2017 and are projected generationally for future years using 80% of
the Society of Actuaries’ Scale MP-2020.
• Miscellaneous plans usually have industrial death rates set to zero unless the agency has specifically contracted for
industrial death benefits. If so, each non-industrial death rate shown above will be split into two components: 99% will
become the non-industrial death rate and 1% will become the industrial death rate.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 47
Post-Retirement Mortality
Rates vary by age, type of retirement, and gender. See sample rates in table below. These rates are used for all plans.
Service Retirement
Non-Industrial Disability Industrial Disability
(Not Job-Related) (Job-Related) Age Male Female Male Female Male Female
50 0.00267 0.00199 0.01701 0.01439 0.00430 0.00311
55 0.00390 0.00325 0.02210 0.01734 0.00621 0.00550
60 0.00578 0.00455 0.02708 0.01962 0.00944 0.00868
65 0.00857 0.00612 0.03334 0.02276 0.01394 0.01190
70 0.01333 0.00996 0.04001 0.02910 0.02163 0.01858
75 0.02391 0.01783 0.05376 0.04160 0.03446 0.03134
80 0.04371 0.03403 0.07936 0.06112 0.05853 0.05183
85 0.08274 0.06166 0.11561 0.09385 0.10137 0.08045
90 0.14539 0.11086 0.16608 0.14396 0.16584 0.12434
95 0.24665 0.20364 0.24665 0.20364 0.24665 0.20364
100 0.36198 0.31582 0.36198 0.31582 0.36198 0.31582
105 0.52229 0.44679 0.52229 0.44679 0.52229 0.44679
110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
• The post-retirement mortality rates above are for 2017 and are projected generationally for future years using 80% of
the Society of Actuaries’ Scale MP-2020.
Marital Status
For active members, a percentage who are married upon retirement is assumed according to the member category as shown in
the following table.
Member Category Percent Married
Miscellaneous Member 70%
Local Police 85%
Local Fire 85%
Other Local Safety 70%
School Police 85%
Local County Peace Officers 75%
Age of Spouse
It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for all plans.
Separated Members
It is assumed that separated members refund immediately if non-vested. Separated members who are vested are assumed to
retire at age 59 for Miscellaneous members and age 54 for Safety members.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 48
Termination with Refund
Rates vary by entry age and service for Miscellaneous plans. Rates vary by service for Safety plans. See sample rates in tables
below.
Public Agency Miscellaneous
Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45
Male Female Male Female Male Female Male Female Male Female Male Female
0 0.1851 0.1944 0.1769 0.1899 0.1631 0.1824 0.1493 0.1749 0.1490 0.1731 0.1487 0.1713
1 0.1531 0.1673 0.1432 0.1602 0.1266 0.1484 0.1101 0.1366 0.1069 0.1323 0.1037 0.1280
2 0.1218 0.1381 0.1125 0.1307 0.0970 0.1183 0.0815 0.1058 0.0771 0.0998 0.0726 0.0938
3 0.0927 0.1085 0.0852 0.1020 0.0727 0.0912 0.0601 0.0804 0.0556 0.0737 0.0511 0.0669
4 0.0672 0.0801 0.0616 0.0752 0.0524 0.0670 0.0431 0.0587 0.0392 0.0523 0.0352 0.0459
5 0.0463 0.0551 0.0423 0.0517 0.0358 0.0461 0.0292 0.0404 0.0261 0.0350 0.0230 0.0296
10 0.0112 0.0140 0.0101 0.0129 0.0083 0.0112 0.0064 0.0094 0.0048 0.0071 0.0033 0.0049
15 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
20 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
25 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
30 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Public Agency Safety
Duration of
Service Fire Police County Peace Officer
Male Female Male Female Male Female
0 0.1022 0.1317 0.1298 0.1389 0.1086 0.1284
1 0.0686 0.1007 0.0789 0.0904 0.0777 0.0998
2 0.0441 0.0743 0.0464 0.0566 0.0549 0.0759
3 0.0272 0.0524 0.0274 0.0343 0.0385 0.0562
4 0.0161 0.0349 0.0170 0.0206 0.0268 0.0402
5 0.0092 0.0214 0.0113 0.0128 0.0186 0.0276
10 0.0015 0.0000 0.0032 0.0047 0.0046 0.0038
15 0.0000 0.0000 0.0000 0.0000 0.0023 0.0036
20 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
25 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
30 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
• The police termination and refund rates are also used for Public Agency Local Prosecutors, Other Safety, Local
Sheriff, and School Police.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 49
Termination with Refund (continued)
Schools
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45
Male Female Male Female Male Female Male Female Male Female Male Female
0 0.2054 0.2120 0.1933 0.1952 0.1730 0.1672 0.1527 0.1392 0.1423 0.1212 0.1318 0.1032
1 0.1922 0.2069 0.1778 0.1883 0.1539 0.1573 0.1300 0.1264 0.1191 0.1087 0.1083 0.0910
2 0.1678 0.1859 0.1536 0.1681 0.1298 0.1383 0.1060 0.1086 0.0957 0.0934 0.0853 0.0782
3 0.1384 0.1575 0.1256 0.1417 0.1042 0.1155 0.0829 0.0893 0.0736 0.0774 0.0643 0.0656
4 0.1085 0.1274 0.0978 0.1143 0.0800 0.0925 0.0622 0.0707 0.0542 0.0620 0.0462 0.0533
5 0.0816 0.0991 0.0732 0.0887 0.0590 0.0713 0.0449 0.0539 0.0383 0.0476 0.0317 0.0413
10 0.0222 0.0248 0.0200 0.0221 0.0163 0.0174 0.0125 0.0128 0.0094 0.0100 0.0063 0.0072
15 0.0106 0.0132 0.0095 0.0113 0.0077 0.0083 0.0058 0.0052 0.0040 0.0039 0.0021 0.0026
20 0.0059 0.0065 0.0050 0.0054 0.0035 0.0036 0.0021 0.0019 0.0010 0.0009 0.0000 0.0000
25 0.0029 0.0034 0.0025 0.0029 0.0018 0.0020 0.0010 0.0012 0.0005 0.0006 0.0000 0.0000
30 0.0012 0.0015 0.0011 0.0013 0.0011 0.0011 0.0010 0.0009 0.0005 0.0005 0.0000 0.0000
35 0.0006 0.0007 0.0006 0.0007 0.0005 0.0006 0.0005 0.0005 0.0003 0.0002 0.0000 0.0000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 50
Termination with Vested Benefits
Rates vary by entry age and service for Miscellaneous plans. Rates vary by service for Safety plans. See sample rates in tables
below.
Public Agency Miscellaneous
Duration of Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40
Male Female Male Female Male Female Male Female Male Female
5 0.0381 0.0524 0.0381 0.0524 0.0358 0.0464 0.0334 0.0405 0.0301 0.0380
10 0.0265 0.0362 0.0265 0.0362 0.0254 0.0334 0.0244 0.0307 0.0197 0.0236
15 0.0180 0.0252 0.0180 0.0252 0.0166 0.0213 0.0152 0.0174 0.0119 0.0132
20 0.0141 0.0175 0.0141 0.0175 0.0110 0.0131 0.0079 0.0087 0.0000 0.0000
25 0.0084 0.0108 0.0084 0.0108 0.0064 0.0076 0.0000 0.0000 0.0000 0.0000
30 0.0047 0.0056 0.0047 0.0056 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0038 0.0041 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Public Agency Safety
Duration of
Service Fire Police County Peace Officer
Male Female Male Female Male Female
5 0.0089 0.0224 0.0156 0.0272 0.0177 0.0266
10 0.0066 0.0164 0.0113 0.0198 0.0126 0.0189
15 0.0048 0.0120 0.0083 0.0144 0.0089 0.0134
20 0.0035 0.0088 0.0060 0.0105 0.0063 0.0095
25 0.0024 0.0061 0.0042 0.0073 0.0042 0.0063
30 0.0012 0.0031 0.0021 0.0037 0.0021 0.0031
35 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
• After termination with vested benefits, a Miscellaneous member is assumed to retire at age 59 and a Safety
member at age 54.
• The Police termination with vested benefits rates are also used for Public Agency Local Prosecutors, Other Safety,
Local Sheriff, and School Police.
Schools
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40
Male Female Male Female Male Female Male Female Male Female
5 0.0359 0.0501 0.0359 0.0501 0.0332 0.0402 0.0305 0.0304 0.0266 0.0272
10 0.0311 0.0417 0.0311 0.0417 0.0269 0.0341 0.0228 0.0265 0.0193 0.0233
15 0.0193 0.0264 0.0193 0.0264 0.0172 0.0220 0.0151 0.0175 0.0123 0.0142
20 0.0145 0.0185 0.0145 0.0185 0.0113 0.0141 0.0080 0.0097 0.0000 0.0000
25 0.0089 0.0123 0.0089 0.0123 0.0074 0.0093 0.0000 0.0000 0.0000 0.0000
30 0.0057 0.0064 0.0057 0.0064 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
35 0.0040 0.0049 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 51
Non-Industrial (Not Job-Related) Disability
Rates vary by age and gender for Miscellaneous plans. Rates vary by age and category for Safety plans.
Miscellaneous Fire Police County Peace Officer Schools
Age Male Female All All All Male Female
20 0.0001 0.0000 0.0001 0.0001 0.0001 0.0000 0.0002
25 0.0001 0.0001 0.0001 0.0001 0.0001 0.0000 0.0002
30 0.0002 0.0003 0.0001 0.0001 0.0001 0.0002 0.0002
35 0.0004 0.0007 0.0001 0.0002 0.0003 0.0005 0.0004
40 0.0009 0.0012 0.0001 0.0002 0.0006 0.0010 0.0008
45 0.0015 0.0019 0.0002 0.0003 0.0011 0.0019 0.0015
50 0.0015 0.0019 0.0004 0.0005 0.0016 0.0027 0.0021
55 0.0014 0.0013 0.0006 0.0007 0.0009 0.0024 0.0017
60 0.0012 0.0009 0.0006 0.0011 0.0005 0.0020 0.0010
• The Miscellaneous non-industrial disability rates are used for Local Prosecutors.
• The police non-industrial disability rates are also used for Other Safety, Local Sheriff, and School Police.
Industrial (Job-Related) Disability
Rates vary by age and category.
Age Fire Police County Peace Officer
20 0.0001 0.0000 0.0004
25 0.0002 0.0017 0.0013
30 0.0006 0.0048 0.0025
35 0.0012 0.0079 0.0037
40 0.0023 0.0110 0.0051
45 0.0040 0.0141 0.0067
50 0.0208 0.0185 0.0092
55 0.0307 0.0479 0.0151
60 0.0438 0.0602 0.0174
• The police industrial disability rates are also used for Local Sheriff and Other Safety. • 50% of the police industrial disability rates are used for School Police.
• 1% of the police industrial disability rates are used for Local Prosecutors. • Normally, rates are zero for Miscellaneous plans unless the agency has specifically contracted for industrial
disability benefits. If so, each Miscellaneous non-industrial disability rate will be split into two components: 50% will
become the non-industrial disability rate and 50% will become the industrial disability rate.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 52
Service Retirement
Retirement rates vary by age, service, and formula, except for the Safety Half Pay at 55 and 2% at 55 formulas, where
retirement rates vary by age only.
Public Agency Miscellaneous 1.5% at age 65
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.008 0.011 0.013 0.015 0.017 0.019
51 0.007 0.010 0.012 0.013 0.015 0.017
52 0.010 0.014 0.017 0.019 0.021 0.024
53 0.008 0.012 0.015 0.017 0.019 0.022
54 0.012 0.016 0.019 0.022 0.025 0.028
55 0.018 0.025 0.031 0.035 0.038 0.043
56 0.015 0.021 0.025 0.029 0.032 0.036
57 0.020 0.028 0.033 0.038 0.043 0.048
58 0.024 0.033 0.040 0.046 0.052 0.058
59 0.028 0.039 0.048 0.054 0.060 0.067
60 0.049 0.069 0.083 0.094 0.105 0.118
61 0.062 0.087 0.106 0.120 0.133 0.150
62 0.104 0.146 0.177 0.200 0.223 0.251
63 0.099 0.139 0.169 0.191 0.213 0.239
64 0.097 0.136 0.165 0.186 0.209 0.233
65 0.140 0.197 0.240 0.271 0.302 0.339
66 0.092 0.130 0.157 0.177 0.198 0.222
67 0.129 0.181 0.220 0.249 0.277 0.311
68 0.092 0.129 0.156 0.177 0.197 0.221
69 0.092 0.130 0.158 0.178 0.199 0.224
70 0.103 0.144 0.175 0.198 0.221 0.248
Public Agency Miscellaneous 2% at age 60
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.010 0.011 0.014 0.014 0.017 0.017
51 0.017 0.013 0.014 0.010 0.010 0.010
52 0.014 0.014 0.018 0.015 0.016 0.016
53 0.015 0.012 0.013 0.010 0.011 0.011
54 0.006 0.010 0.017 0.016 0.018 0.018
55 0.012 0.016 0.024 0.032 0.036 0.036
56 0.010 0.014 0.023 0.030 0.034 0.034
57 0.006 0.018 0.030 0.040 0.044 0.044
58 0.022 0.023 0.033 0.042 0.046 0.046
59 0.039 0.033 0.040 0.047 0.050 0.050
60 0.063 0.069 0.074 0.090 0.137 0.116
61 0.044 0.058 0.066 0.083 0.131 0.113
62 0.084 0.107 0.121 0.153 0.238 0.205
63 0.173 0.166 0.165 0.191 0.283 0.235
64 0.120 0.145 0.164 0.147 0.160 0.172
65 0.138 0.160 0.214 0.216 0.237 0.283
66 0.198 0.228 0.249 0.216 0.228 0.239
67 0.207 0.242 0.230 0.233 0.233 0.233
68 0.201 0.234 0.225 0.231 0.231 0.231
69 0.152 0.173 0.164 0.166 0.166 0.166
70 0.200 0.200 0.200 0.200 0.200 0.200
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 53
Service Retirement (continued)
Public Agency Miscellaneous 2% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.014 0.014 0.017 0.021 0.023 0.024
51 0.013 0.017 0.017 0.018 0.018 0.019
52 0.013 0.018 0.018 0.020 0.020 0.021
53 0.013 0.019 0.021 0.024 0.025 0.026
54 0.017 0.025 0.028 0.032 0.033 0.035
55 0.045 0.042 0.053 0.086 0.098 0.123
56 0.018 0.036 0.056 0.086 0.102 0.119
57 0.041 0.046 0.056 0.076 0.094 0.120
58 0.052 0.044 0.048 0.074 0.106 0.123
59 0.043 0.058 0.073 0.092 0.105 0.126
60 0.059 0.064 0.083 0.115 0.154 0.170
61 0.087 0.074 0.087 0.107 0.147 0.168
62 0.115 0.123 0.151 0.180 0.227 0.237
63 0.116 0.127 0.164 0.202 0.252 0.261
64 0.084 0.138 0.153 0.190 0.227 0.228
65 0.167 0.187 0.210 0.262 0.288 0.291
66 0.187 0.258 0.280 0.308 0.318 0.319
67 0.195 0.235 0.244 0.277 0.269 0.280
68 0.228 0.248 0.250 0.241 0.245 0.245
69 0.188 0.201 0.209 0.219 0.231 0.231
70 0.229 0.229 0.229 0.229 0.229 0.229
Public Agency Miscellaneous 2.5% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.014 0.017 0.027 0.035 0.046 0.050
51 0.019 0.021 0.025 0.030 0.038 0.040
52 0.018 0.020 0.026 0.034 0.038 0.037
53 0.013 0.021 0.031 0.045 0.052 0.053
54 0.025 0.025 0.030 0.046 0.057 0.068
55 0.029 0.042 0.064 0.109 0.150 0.225
56 0.036 0.047 0.068 0.106 0.134 0.194
57 0.051 0.047 0.060 0.092 0.116 0.166
58 0.035 0.046 0.062 0.093 0.119 0.170
59 0.029 0.053 0.072 0.112 0.139 0.165
60 0.039 0.069 0.094 0.157 0.177 0.221
61 0.080 0.077 0.086 0.140 0.167 0.205
62 0.086 0.131 0.149 0.220 0.244 0.284
63 0.135 0.135 0.147 0.214 0.222 0.262
64 0.114 0.128 0.158 0.177 0.233 0.229
65 0.112 0.174 0.222 0.209 0.268 0.273
66 0.235 0.254 0.297 0.289 0.321 0.337
67 0.237 0.240 0.267 0.249 0.267 0.277
68 0.258 0.271 0.275 0.207 0.210 0.212
69 0.117 0.208 0.266 0.219 0.250 0.270
70 0.229 0.229 0.229 0.229 0.229 0.229
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 54
Service Retirement (continued)
Public Agency Miscellaneous 2.7% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.011 0.016 0.022 0.033 0.034 0.038
51 0.018 0.019 0.023 0.032 0.031 0.031
52 0.019 0.020 0.026 0.035 0.034 0.037
53 0.020 0.020 0.025 0.043 0.048 0.053
54 0.018 0.030 0.040 0.052 0.053 0.070
55 0.045 0.058 0.082 0.138 0.208 0.278
56 0.057 0.062 0.080 0.121 0.178 0.222
57 0.045 0.052 0.071 0.106 0.147 0.182
58 0.074 0.060 0.074 0.118 0.163 0.182
59 0.058 0.067 0.086 0.123 0.158 0.187
60 0.087 0.084 0.096 0.142 0.165 0.198
61 0.073 0.084 0.101 0.138 0.173 0.218
62 0.130 0.133 0.146 0.187 0.214 0.249
63 0.122 0.140 0.160 0.204 0.209 0.243
64 0.104 0.124 0.154 0.202 0.214 0.230
65 0.182 0.201 0.242 0.264 0.293 0.293
66 0.272 0.249 0.273 0.285 0.312 0.312
67 0.182 0.217 0.254 0.249 0.264 0.264
68 0.223 0.197 0.218 0.242 0.273 0.273
69 0.217 0.217 0.217 0.217 0.217 0.217
70 0.227 0.227 0.227 0.227 0.227 0.227
Public Agency Miscellaneous 3% at age 60
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.015 0.020 0.025 0.039 0.040 0.044
51 0.041 0.034 0.032 0.041 0.036 0.037
52 0.024 0.020 0.022 0.039 0.040 0.041
53 0.018 0.024 0.032 0.047 0.048 0.057
54 0.033 0.033 0.035 0.051 0.049 0.052
55 0.137 0.043 0.051 0.065 0.076 0.108
56 0.173 0.038 0.054 0.075 0.085 0.117
57 0.019 0.035 0.059 0.088 0.111 0.134
58 0.011 0.040 0.070 0.105 0.133 0.162
59 0.194 0.056 0.064 0.081 0.113 0.163
60 0.081 0.085 0.133 0.215 0.280 0.333
61 0.080 0.090 0.134 0.170 0.223 0.292
62 0.137 0.153 0.201 0.250 0.278 0.288
63 0.128 0.140 0.183 0.227 0.251 0.260
64 0.174 0.147 0.173 0.224 0.239 0.264
65 0.152 0.201 0.262 0.299 0.323 0.323
66 0.272 0.273 0.317 0.355 0.380 0.380
67 0.218 0.237 0.268 0.274 0.284 0.284
68 0.200 0.228 0.269 0.285 0.299 0.299
69 0.250 0.250 0.250 0.250 0.250 0.250
70 0.245 0.245 0.245 0.245 0.245 0.245
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 55
Service Retirement (continued)
Public Agency Miscellaneous 2% at age 62
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.000 0.000 0.000 0.000 0.000 0.000
51 0.000 0.000 0.000 0.000 0.000 0.000
52 0.005 0.008 0.012 0.015 0.019 0.031
53 0.007 0.011 0.014 0.018 0.021 0.032
54 0.007 0.011 0.015 0.019 0.023 0.034
55 0.010 0.019 0.028 0.036 0.061 0.096
56 0.014 0.026 0.038 0.050 0.075 0.108
57 0.018 0.029 0.039 0.050 0.074 0.107
58 0.023 0.035 0.048 0.060 0.073 0.099
59 0.025 0.038 0.051 0.065 0.092 0.128
60 0.031 0.051 0.071 0.091 0.111 0.138
61 0.038 0.058 0.079 0.100 0.121 0.167
62 0.044 0.074 0.104 0.134 0.164 0.214
63 0.077 0.105 0.134 0.163 0.192 0.237
64 0.072 0.101 0.129 0.158 0.187 0.242
65 0.108 0.141 0.173 0.206 0.239 0.300
66 0.132 0.172 0.212 0.252 0.292 0.366
67 0.132 0.172 0.212 0.252 0.292 0.366
68 0.120 0.156 0.193 0.229 0.265 0.333
69 0.120 0.156 0.193 0.229 0.265 0.333
70 0.120 0.156 0.193 0.229 0.265 0.333
Public Agency Fire Half Pay at age 55 and 2% at age 55
Age Rate
Age Rate
50 0.016 56 0.111
51 0.000 57 0.000
52 0.034 58 0.095
53 0.020 59 0.044
54 0.041 60 1.000
55 0.075
Public Agency Police Half Pay at age 55 and 2% at age 55
Age Rate
Age Rate
50 0.026 56 0.069
51 0.000 57 0.051
52 0.016 58 0.072
53 0.027 59 0.070
54 0.010 60 0.300
55 0.167
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 56
Service Retirement (continued)
Public Agency Police 2% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.018 0.077 0.056 0.046 0.043 0.046
51 0.022 0.087 0.060 0.048 0.044 0.047
52 0.020 0.102 0.081 0.071 0.069 0.075
53 0.016 0.072 0.053 0.045 0.042 0.046
54 0.006 0.071 0.071 0.069 0.072 0.080
55 0.009 0.040 0.099 0.157 0.186 0.186
56 0.020 0.051 0.108 0.165 0.194 0.194
57 0.036 0.072 0.106 0.139 0.156 0.156
58 0.001 0.046 0.089 0.130 0.152 0.152
59 0.066 0.094 0.119 0.143 0.155 0.155
60 0.177 0.177 0.177 0.177 0.177 0.177
61 0.134 0.134 0.134 0.134 0.134 0.134
62 0.184 0.184 0.184 0.184 0.184 0.184
63 0.250 0.250 0.250 0.250 0.250 0.250
64 0.177 0.177 0.177 0.177 0.177 0.177
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.054 0.054 0.056 0.080 0.064 0.066
51 0.020 0.020 0.021 0.030 0.024 0.024
52 0.037 0.037 0.038 0.054 0.043 0.045
53 0.051 0.051 0.053 0.076 0.061 0.063
54 0.082 0.082 0.085 0.121 0.097 0.100
55 0.139 0.139 0.139 0.139 0.139 0.139
56 0.129 0.129 0.129 0.129 0.129 0.129
57 0.085 0.085 0.085 0.085 0.085 0.085
58 0.119 0.119 0.119 0.119 0.119 0.119
59 0.167 0.167 0.167 0.167 0.167 0.167
60 0.152 0.152 0.152 0.152 0.152 0.152
61 0.179 0.179 0.179 0.179 0.179 0.179
62 0.179 0.179 0.179 0.179 0.179 0.179
63 0.179 0.179 0.179 0.179 0.179 0.179
64 0.179 0.179 0.179 0.179 0.179 0.179
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 57
Service Retirement (continued)
Public Agency Police 3% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.019 0.053 0.045 0.054 0.057 0.061
51 0.002 0.017 0.028 0.044 0.053 0.060
52 0.002 0.031 0.037 0.051 0.059 0.066
53 0.026 0.049 0.049 0.080 0.099 0.114
54 0.019 0.034 0.047 0.091 0.121 0.142
55 0.006 0.115 0.141 0.199 0.231 0.259
56 0.017 0.188 0.121 0.173 0.199 0.199
57 0.008 0.137 0.093 0.136 0.157 0.157
58 0.017 0.126 0.105 0.164 0.194 0.194
59 0.026 0.146 0.110 0.167 0.195 0.195
60 0.155 0.155 0.155 0.155 0.155 0.155
61 0.210 0.210 0.210 0.210 0.210 0.210
62 0.262 0.262 0.262 0.262 0.262 0.262
63 0.172 0.172 0.172 0.172 0.172 0.172
64 0.227 0.227 0.227 0.227 0.227 0.227
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 3% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.003 0.006 0.013 0.019 0.025 0.028
51 0.004 0.008 0.017 0.026 0.034 0.038
52 0.005 0.011 0.022 0.033 0.044 0.049
53 0.005 0.034 0.024 0.038 0.069 0.138
54 0.007 0.047 0.032 0.051 0.094 0.187
55 0.010 0.067 0.046 0.073 0.134 0.266
56 0.010 0.063 0.044 0.069 0.127 0.253
57 0.135 0.100 0.148 0.196 0.220 0.220
58 0.083 0.062 0.091 0.120 0.135 0.135
59 0.137 0.053 0.084 0.146 0.177 0.177
60 0.162 0.063 0.099 0.172 0.208 0.208
61 0.598 0.231 0.231 0.231 0.231 0.231
62 0.621 0.240 0.240 0.240 0.240 0.240
63 0.236 0.236 0.236 0.236 0.236 0.236
64 0.236 0.236 0.236 0.236 0.236 0.236
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 58
Service Retirement (continued)
Public Agency Police 3% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.124 0.103 0.113 0.143 0.244 0.376
51 0.060 0.081 0.087 0.125 0.207 0.294
52 0.016 0.055 0.111 0.148 0.192 0.235
53 0.072 0.074 0.098 0.142 0.189 0.237
54 0.018 0.049 0.105 0.123 0.187 0.271
55 0.069 0.074 0.081 0.113 0.209 0.305
56 0.064 0.108 0.113 0.125 0.190 0.288
57 0.056 0.109 0.160 0.182 0.210 0.210
58 0.108 0.129 0.173 0.189 0.214 0.214
59 0.093 0.144 0.204 0.229 0.262 0.262
60 0.343 0.180 0.159 0.188 0.247 0.247
61 0.221 0.221 0.221 0.221 0.221 0.221
62 0.213 0.213 0.213 0.213 0.213 0.213
63 0.233 0.233 0.233 0.233 0.233 0.233
64 0.234 0.234 0.234 0.234 0.234 0.234
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 3% at age 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.095 0.048 0.053 0.093 0.134 0.175
51 0.016 0.032 0.053 0.085 0.117 0.149
52 0.013 0.032 0.054 0.087 0.120 0.154
53 0.085 0.044 0.049 0.089 0.129 0.170
54 0.038 0.065 0.074 0.105 0.136 0.167
55 0.042 0.043 0.049 0.085 0.132 0.215
56 0.133 0.103 0.075 0.113 0.151 0.209
57 0.062 0.048 0.060 0.124 0.172 0.213
58 0.124 0.097 0.092 0.153 0.194 0.227
59 0.092 0.071 0.078 0.144 0.192 0.233
60 0.056 0.044 0.061 0.131 0.186 0.233
61 0.282 0.219 0.158 0.198 0.233 0.260
62 0.292 0.227 0.164 0.205 0.241 0.269
63 0.196 0.196 0.196 0.196 0.196 0.196
64 0.197 0.197 0.197 0.197 0.197 0.197
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 59
Service Retirement (continued)
Public Agency Police 2% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.040 0.040 0.040 0.040 0.040 0.080
51 0.028 0.028 0.028 0.028 0.040 0.066
52 0.028 0.028 0.028 0.028 0.043 0.061
53 0.028 0.028 0.028 0.028 0.057 0.086
54 0.028 0.028 0.028 0.032 0.069 0.110
55 0.050 0.050 0.050 0.067 0.099 0.179
56 0.046 0.046 0.046 0.062 0.090 0.160
57 0.054 0.054 0.054 0.072 0.106 0.191
58 0.060 0.060 0.060 0.066 0.103 0.171
59 0.060 0.060 0.060 0.069 0.105 0.171
60 0.113 0.113 0.113 0.113 0.113 0.171
61 0.108 0.108 0.108 0.108 0.108 0.128
62 0.113 0.113 0.113 0.113 0.113 0.159
63 0.113 0.113 0.113 0.113 0.113 0.159
64 0.113 0.113 0.113 0.113 0.113 0.239
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.005 0.005 0.005 0.005 0.008 0.012
51 0.006 0.006 0.006 0.006 0.009 0.013
52 0.012 0.012 0.012 0.012 0.019 0.028
53 0.033 0.033 0.033 0.033 0.050 0.075
54 0.045 0.045 0.045 0.045 0.069 0.103
55 0.061 0.061 0.061 0.061 0.094 0.140
56 0.055 0.055 0.055 0.055 0.084 0.126
57 0.081 0.081 0.081 0.081 0.125 0.187
58 0.059 0.059 0.059 0.059 0.091 0.137
59 0.055 0.055 0.055 0.055 0.084 0.126
60 0.085 0.085 0.085 0.085 0.131 0.196
61 0.085 0.085 0.085 0.085 0.131 0.196
62 0.085 0.085 0.085 0.085 0.131 0.196
63 0.085 0.085 0.085 0.085 0.131 0.196
64 0.085 0.085 0.085 0.085 0.131 0.196
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 60
Service Retirement (continued)
Public Agency Police 2.5% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.050 0.050 0.050 0.050 0.050 0.100
51 0.038 0.038 0.038 0.038 0.055 0.089
52 0.038 0.038 0.038 0.038 0.058 0.082
53 0.036 0.036 0.036 0.036 0.073 0.111
54 0.036 0.036 0.036 0.041 0.088 0.142
55 0.061 0.061 0.061 0.082 0.120 0.217
56 0.056 0.056 0.056 0.075 0.110 0.194
57 0.060 0.060 0.060 0.080 0.118 0.213
58 0.072 0.072 0.072 0.079 0.124 0.205
59 0.072 0.072 0.072 0.083 0.126 0.205
60 0.135 0.135 0.135 0.135 0.135 0.205
61 0.130 0.130 0.130 0.130 0.130 0.153
62 0.135 0.135 0.135 0.135 0.135 0.191
63 0.135 0.135 0.135 0.135 0.135 0.191
64 0.135 0.135 0.135 0.135 0.135 0.287
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2.5% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.007 0.007 0.007 0.007 0.010 0.015
51 0.008 0.008 0.008 0.008 0.012 0.018
52 0.016 0.016 0.016 0.016 0.025 0.038
53 0.042 0.042 0.042 0.042 0.064 0.096
54 0.057 0.057 0.057 0.057 0.088 0.132
55 0.074 0.074 0.074 0.074 0.114 0.170
56 0.066 0.066 0.066 0.066 0.102 0.153
57 0.090 0.090 0.090 0.090 0.139 0.208
58 0.071 0.071 0.071 0.071 0.110 0.164
59 0.066 0.066 0.066 0.066 0.101 0.151
60 0.102 0.102 0.102 0.102 0.157 0.235
61 0.102 0.102 0.102 0.102 0.157 0.236
62 0.102 0.102 0.102 0.102 0.157 0.236
63 0.102 0.102 0.102 0.102 0.157 0.236
64 0.102 0.102 0.102 0.102 0.157 0.236
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 61
Service Retirement (continued)
Public Agency Police 2.7% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.050 0.050 0.050 0.050 0.050 0.100
51 0.040 0.040 0.040 0.040 0.058 0.094
52 0.038 0.038 0.038 0.038 0.058 0.083
53 0.038 0.038 0.038 0.038 0.077 0.117
54 0.038 0.038 0.038 0.044 0.093 0.150
55 0.068 0.068 0.068 0.091 0.134 0.242
56 0.063 0.063 0.063 0.084 0.123 0.217
57 0.060 0.060 0.060 0.080 0.118 0.213
58 0.080 0.080 0.080 0.088 0.138 0.228
59 0.080 0.080 0.080 0.092 0.140 0.228
60 0.150 0.150 0.150 0.150 0.150 0.228
61 0.144 0.144 0.144 0.144 0.144 0.170
62 0.150 0.150 0.150 0.150 0.150 0.213
63 0.150 0.150 0.150 0.150 0.150 0.213
64 0.150 0.150 0.150 0.150 0.150 0.319
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other
Safety.
Public Agency Fire 2.7% at age 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.007 0.007 0.007 0.007 0.010 0.015
51 0.008 0.008 0.008 0.008 0.013 0.019
52 0.016 0.016 0.016 0.016 0.025 0.038
53 0.044 0.044 0.044 0.044 0.068 0.102
54 0.061 0.061 0.061 0.061 0.093 0.140
55 0.083 0.083 0.083 0.083 0.127 0.190
56 0.074 0.074 0.074 0.074 0.114 0.171
57 0.090 0.090 0.090 0.090 0.139 0.208
58 0.079 0.079 0.079 0.079 0.122 0.182
59 0.073 0.073 0.073 0.073 0.112 0.168
60 0.114 0.114 0.114 0.114 0.175 0.262
61 0.114 0.114 0.114 0.114 0.175 0.262
62 0.114 0.114 0.114 0.114 0.175 0.262
63 0.114 0.114 0.114 0.114 0.175 0.262
64 0.114 0.114 0.114 0.114 0.175 0.262
65 1.000 1.000 1.000 1.000 1.000 1.000
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 62
Service Retirement (continued)
Schools 2% at age 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.003 0.004 0.006 0.007 0.010 0.010
51 0.004 0.005 0.007 0.008 0.011 0.011
52 0.005 0.007 0.008 0.009 0.012 0.012
53 0.007 0.008 0.010 0.012 0.015 0.015
54 0.006 0.009 0.012 0.015 0.020 0.021
55 0.011 0.023 0.034 0.057 0.070 0.090
56 0.012 0.027 0.036 0.056 0.073 0.095
57 0.016 0.027 0.036 0.055 0.068 0.087
58 0.019 0.030 0.040 0.062 0.078 0.103
59 0.023 0.034 0.046 0.070 0.085 0.109
60 0.022 0.043 0.062 0.095 0.113 0.141
61 0.030 0.051 0.071 0.103 0.124 0.154
62 0.065 0.098 0.128 0.188 0.216 0.248
63 0.075 0.112 0.144 0.197 0.222 0.268
64 0.091 0.116 0.138 0.180 0.196 0.231
65 0.163 0.164 0.197 0.232 0.250 0.271
66 0.208 0.204 0.243 0.282 0.301 0.315
67 0.189 0.185 0.221 0.257 0.274 0.287
68 0.127 0.158 0.200 0.227 0.241 0.244
69 0.168 0.162 0.189 0.217 0.229 0.238
70 0.191 0.190 0.237 0.250 0.246 0.254
Schools 2% at age 62
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
50 0.000 0.000 0.000 0.000 0.000 0.000
51 0.000 0.000 0.000 0.000 0.000 0.000
52 0.004 0.007 0.010 0.011 0.013 0.015
53 0.004 0.008 0.010 0.013 0.014 0.016
54 0.005 0.011 0.015 0.018 0.020 0.022
55 0.014 0.027 0.038 0.045 0.050 0.056
56 0.013 0.026 0.037 0.043 0.048 0.055
57 0.013 0.027 0.038 0.045 0.050 0.055
58 0.017 0.034 0.047 0.056 0.062 0.069
59 0.019 0.037 0.052 0.062 0.068 0.076
60 0.026 0.053 0.074 0.087 0.097 0.108
61 0.030 0.058 0.081 0.095 0.106 0.119
62 0.053 0.105 0.147 0.174 0.194 0.217
63 0.054 0.107 0.151 0.178 0.198 0.222
64 0.053 0.105 0.147 0.174 0.194 0.216
65 0.072 0.142 0.199 0.235 0.262 0.293
66 0.077 0.152 0.213 0.252 0.281 0.314
67 0.070 0.139 0.194 0.229 0.255 0.286
68 0.063 0.124 0.173 0.205 0.228 0.255
69 0.066 0.130 0.183 0.216 0.241 0.270
70 0.071 0.140 0.196 0.231 0.258 0.289
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 63
Miscellaneous
Models
The valuation results are based on proprietary actuarial valuation models. The models are centralized and maintained by a
specialized team to achieve a high degree of accuracy and consistency. The Actuarial Office is responsible for confirming the
appropriateness of the inputs (such as participant data, actuarial methods and assumptions, and plan provisions) as well as
performing tests and validating the reasonableness of the output. The results of our models are independently confirmed by
parallel valuations performed by outside actuaries on a periodic basis using their models. In our professional judgment, our
actuarial valuation models produce comprehensive pension funding information consistent with the purposes of the valuation
and have no material limitations or known weaknesses.
Internal Revenue Code Section 415(b)
The limitations on benefits imposed by Internal Revenue Code section 415(b) are taken into account in this valuation. Each
year, the impact of any changes in this limitation other than assumed since the prior valuation is included and amortized as part
of the non-investment gain or loss base. This results in lower contributions for those employers contributing to the Replacement
Benefit Fund and protects CalPERS from prefunding expected benefits in excess of limits imposed by federal tax law. The
Section 415(b) dollar limit for the 2024 calendar year is $275,000.
Internal Revenue Code Section 401(a)(17)
The limitations on compensation imposed by Internal Revenue Code section 401(a)(17) are taken into account in this valuation.
Each year, the impact of any changes in the compensation limitation other than assumed since the prior valuation is included and amortized as part of the non-investment gain or loss base. The compensation limit for classic members for the 2024
calendar year is $345,000.
PEPRA Compensation Limits
The limitations on compensation for PEPRA members imposed by Government Code section 7522.10 are taken into account in
this valuation. Each year, the impact of any changes in the compensation limitation other than assumed since the prior valuation
is included and amortized as part of the non-investment gain or loss base. The PEPRA compensation limit for 2024 is $151,446
for members who participate in Social Security and $181,734 for those who do not. The limits are adjusted annually based on
changes to the CPI for all urban consumers.
Appendix B - Principal Plan Provisions
• Service Retirement 65
• Vested Deferred Retirement 67
• Non-Industrial Disability Retirement 67
• Industrial Disability Retirement 68
• Post-Retirement Death Benefit 69
• Form of Payment for Retirement Allowance 69
• Pre-Retirement Death Benefits 70
• Cost-of-Living Adjustments (COLA) 72
• Purchasing Power Protection Allowance (PPPA) 72
• Employee Contributions 73
• Refund of Employee Contributions 73
• 1959 Survivor Benefit 74
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 65
The following is a description of the principal plan provisions used in calculating costs and liabilities. We have indicated whether
a plan provision is standard or optional. Standard benefits are applicable to all members while optional benefits vary among
employers. Optional benefits that apply to a single period of time, such as Golden Handshakes, have not been included. Many of the statements in this summary are general in nature, and are intended to provide an easily understood summary of the
Public Employees’ Retirement Law and the California Public Employees’ Pension Reform Act of 2013. The law itself governs in
all situations.
Service Retirement
Eligibility
A classic CalPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 50 with
at least 5 years of credited service (total service across all CalPERS employers, and with certain other retirement systems with
which CalPERS has reciprocity agreements). For employees hired into a plan with the 1.5% at age 65 formula, eligibility for
service retirement is age 55 with at least 5 years of service. PEPRA Miscellaneous members become eligible for service
retirement upon attainment of age 52 with at least 5 years of service.
Benefit
The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final
compensation. The benefit factor depends on the benefit formula specified in the agency’s contract. The table below shows the
factors for each of the available formulas. Factors vary by the member’s age at retirement. Listed are the factors for retire ment
at whole year ages:
Miscellaneous Plan Formulas
Retirement
Age
1.5% at
age 65
2% at
age 60
2% at
age 55
2.5% at
age 55
2.7% at
age 55
3% at
age 60
PEPRA
2% at
age 62
50 0.5000% 1.092% 1.426% 2.000% 2.000% 2.000% N/A
51 0.5667% 1.156% 1.522% 2.100% 2.140% 2.100% N/A
52 0.6334% 1.224% 1.628% 2.200% 2.280% 2.200% 1.000%
53 0.7000% 1.296% 1.742% 2.300% 2.420% 2.300% 1.100%
54 0.7667% 1.376% 1.866% 2.400% 2.560% 2.400% 1.200%
55 0.8334% 1.460% 2.000% 2.500% 2.700% 2.500% 1.300%
56 0.9000% 1.552% 2.052% 2.500% 2.700% 2.600% 1.400%
57 0.9667% 1.650% 2.104% 2.500% 2.700% 2.700% 1.500%
58 1.0334% 1.758% 2.156% 2.500% 2.700% 2.800% 1.600%
59 1.1000% 1.874% 2.210% 2.500% 2.700% 2.900% 1.700%
60 1.1667% 2.000% 2.262% 2.500% 2.700% 3.000% 1.800%
61 1.2334% 2.134% 2.314% 2.500% 2.700% 3.000% 1.900%
62 1.3000% 2.272% 2.366% 2.500% 2.700% 3.000% 2.000%
63 1.3667% 2.418% 2.418% 2.500% 2.700% 3.000% 2.100%
64 1.4334% 2.418% 2.418% 2.500% 2.700% 3.000% 2.200%
65 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.300%
66 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.400%
67 & up 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.500%
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 66
Classic Safety Plan Formulas
Retirement Age Half Pay at
age 55* 2% at age 55 2% at age 50 3% at age 55 3% at age 50
50 1.783% 1.426% 2.000% 2.400% 3.000%
51 1.903% 1.522% 2.140% 2.520% 3.000%
52 2.035% 1.628% 2.280% 2.640% 3.000%
53 2.178% 1.742% 2.420% 2.760% 3.000%
54 2.333% 1.866% 2.560% 2.880% 3.000%
55 & Up 2.500% 2.000% 2.700% 3.000% 3.000%
* For this formula, the benefit factor also varies by entry age. The factors shown are for members with an entry age of 35 or
greater. If entry age is less than 35, then the age 55 benefit factor is 50% divided by the difference between age 55 and entry
age. The benefit factor for ages prior to age 55 is the same proportion of the age 55 benefit factor as in the above table.
PEPRA Safety Plan Formulas
Retirement Age 2% at age 57 2.5% at age 57 2.7% at age 57
50 1.426% 2.000% 2.000%
51 1.508% 2.071% 2.100%
52 1.590% 2.143% 2.200%
53 1.672% 2.214% 2.300%
54 1.754% 2.286% 2.400%
55 1.836% 2.357% 2.500%
56 1.918% 2.429% 2.600%
57 & Up 2.000% 2.500% 2.700%
• The years of service is the amount credited by CalPERS to a member while he or she is employed in this group (or for other
periods that are recognized under the employer’s contract with CalPERS). For a member who has earned service with
multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s
contract, and then added together for the total allowance. An agency may contract for an optional benefit where any unused
sick leave accumulated at the time of retirement will be converted to credited service at a rate of 0.004 years of service for
each day of sick leave.
• The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full-time equivalent
monthly pay (no matter which CalPERS employer paid this compensation). The standard benefit is 36 months. Employers
had the option of providing a final compensation equal to the highest 12 consecutive months for classic plans only. Final
compensation must be defined by the highest 36 consecutive months’ pay under the 1.5% at age 65 formula. PEPRA
members have a limit on the annual compensation that can be used to calculate final compensation. The limits are adjusted
annually based on changes to the CPI for all urban consumers.
• PEPRA benefit formulas have no Social Security offsets and Social Security coverage is optional. For Classic benefit
formulas, employees must be covered by Social Security with the 1.5% at age 65 formula. Social Security is optional for all
other Classic benefit formulas. For employees covered by Social Security, the modified formula is the standard benefit.
Under this type of formula, the final compensation is offset by $133.33 (or by one third if the final compensation is less than
$400). Employers may contract for the full benefit with Social Security that will eliminate the offset applicable to the final compensation. For employees not covered by Social Security, the full benefit is paid with no offsets. Auxiliary organizations
of the CSUC system may elect reduced contribution rates, in which case the offset is $317 if members are not covered by
Social Security or $513 if members are covered by Social Security.
• The Miscellaneous and PEPRA Safety service retirement benefit is not capped. The Classic Safety service retirement
benefit is capped at 90% of final compensation.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 67
Vested Deferred Retirement
Eligibility for Deferred Status
CalPERS members becomes eligible for a deferred vested retirement benefit when they leave employment, keep their
contribution account balance on deposit with CalPERS, and have earned at least 5 years of credited service (total service
across all CalPERS employers, and with certain other retirement systems with which CalPERS has reciprocity agreements).
Eligibility to Start Receiving Benefits
The CalPERS classic members and PEPRA Safety members become eligible to receive the deferred retirement benefit upon
satisfying the eligibility requirements for deferred status and upon attainment of age 50 (55 for employees hired into a 1.5% at
age 65 plan). PEPRA Miscellaneous members become eligible to receive the deferred retirement benefit upon satisfying the
eligibility requirements for deferred status and upon attainment of age 52.
Benefit
The vested deferred retirement benefit is the same as the service retirement benefit, where the benefit factor is based on the
member’s age at allowance commencement. For members who have earned service with multiple CalPERS employers, the
benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total
allowance.
Non-Industrial Disability Retirement
Eligibility
A CalPERS member is eligible for Non-Industrial (non-job related) Disability Retirement if he or she becomes disabled and has
at least 5 years of credited service (total service across all CalPERS employers, and with certain other retirement systems with
which CalPERS has reciprocity agreements). There is no special age requirement. Disabled means the member is unable to
perform their job because of an illness or injury, which is expected to be permanent or to last indefinitely. The illness or injury
does not have to be job related. A CalPERS member must be actively employed by any CalPERS employer at the time of
disability in order to be eligible for this benefit.
Standard Benefit
The standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied
by service, which is determined as follows:
• Service is CalPERS credited service, for members with less than 10 years of service or greater than 18.518 years of
service; or
• Service is CalPERS credited service plus the additional number of years that the member would have worked until age
60, for members with at least 10 years but not more than 18.518 years of service. The maximum benefit in this case is
33⅓% of final compensation.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 68
Improved Benefit
Employers have the option of providing the improved Non-Industrial Disability Retirement benefit. This benefit provides a monthly allowance equal to 30% of final compensation for the first 5 years of service, plus 1% for each additional year of service
to a maximum of 50% of final compensation.
Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of a disability benefit.
Members eligible to retire, and who have attained the normal retirement age determined by their service retirement benefit
formula, will receive the same dollar amount for disability retirement as that payable for service retirement. For members wh o
have earned service with multiple CalPERS employers, the benefit attributed to each employer is the total disability allowance
multiplied by the ratio of service with a particular employer to the total CalPERS service.
Industrial Disability Retirement
This is a standard benefit for Safety members except those described in Section 20423.6. For excluded Safety members and all
Miscellaneous members, employers have the option of providing this benefit. An employer may choose to provide the increased
benefit option or the improved benefit option.
Eligibility
An employee is eligible for Industrial (job related) Disability Retirement if he or she becomes disabled while working, where
disabled means the member is unable to perform the duties of the job because of a work-related illness or injury, which is
expected to be permanent or to last indefinitely. A CalPERS member who has left active employment within this group is not eligible for this benefit, except to the extent described below.
Standard Benefit
The standard Industrial Disability Retirement benefit is a monthly allowance equal to 50% of final compensation.
Increased Benefit (75% of Final Compensation)
The increased Industrial Disability Retirement benefit is a monthly allowance equal to 75% of final com pensation for total disability.
Improved Benefit (50% to 90% of Final Compensation)
The improved Industrial Disability Retirement benefit is a monthly allowance equal to the Workman’s Compensation Appeals
Board permanent disability rate percentage (if 50% or greater, with a maximum of 90%) times the final compensation.
For a CalPERS member not actively employed in this group who became disabled while employed by some other CalPERS
employer, the benefit is a return of accumulated member contributions with respect to employment in this group. With the
standard or increased benefit, a member may also choose to receive the annuitization of the accumulated member
contributions.
If a member is eligible for service retirement and if the service retirement benefit is more than the industrial disability retirement
benefit, the member may choose to receive the larger benefit.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 69
Post-Retirement Death Benefit
Standard Lump Sum Payment
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the
retiree’s estate. The lump sum payment amount increases to $2,000 for any death occurring on or after July 1, 2023, due to SB
1168.
Optional Lump Sum Payment
In lieu of the standard lump sum death benefit, employers have the option of providing a lump sum death benefit of $600,
$3,000, $4,000 or $5,000.
Form of Payment for Retirement Allowance
Standard Form of Payment
Generally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she is alive. The retiree
may choose to provide for a portion of their allowance to be paid to any designated beneficiary after the retiree’s death.
CalPERS provides for a variety of such benefit options, which the retiree pays for by taking a reduction in their retirement
allowance. Such reduction takes into account the amount to be provided to the beneficiary and the probable duration of payments (based on the ages of the member and beneficiary) made subsequent to the member’s death.
Improved Form of Payment (Post-Retirement Survivor Allowance)
Employers have the option to contract for the post-retirement survivor allowance.
For retirement allowances with respect to service subject to a modified Classic formula, 25% of the retirement allowance will
automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s
allowance. For retirement allowances with respect to service subject to a PEPRA formula or a full or supplemental Classic
formula, 50% of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the
retiree, without a reduction in the retiree’s allowance. This additional benefit is referred to as post-retirement survivor allowance
(PRSA) or simply as survivor continuance.
In other words, 25% or 50% of the allowance, the continuance portion, is paid to the retiree for as long as he or she is alive, and
that same amount is continued to the retiree’s spouse (or if no eligible spouse, to unmarried child(ren) until they attain age 18;
or, if no eligible child(ren), to a qualifying dependent parent) for the rest of their lifetime. This benefit will not be discontinued in
the event the spouse remarries.
The remaining 75% or 50% of the retirement allowance, which may be referred to as the option portion of the benefit, is paid to
the retiree as an annuity for as long as he or she is alive. Or, the retiree may choose to provide for some of this option portion to
be paid to any designated beneficiary after the retiree’s death. Benefit options applicable to the option portion are the sam e as
those offered with the standard form. The reduction is calculated in the same manner but is applied only to the option portion.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 70
Pre-Retirement Death Benefits
Basic Death Benefit
This is a standard benefit.
Eligibility
An employee’s beneficiary (or estate) may receive the basic death benefit if the member dies while actively employed. A
CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. A
member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of
this basic death benefit.
Benefit
The basic death benefit is a lump sum in the amount of the member’s accumulated contributions, where interest is credited
annually at the greater of 6% or the prevailing discount rate through the date of death, plus a lump sum in the amount of one
month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit,
one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding
death.
1957 Survivor Benefit
This is a standard benefit.
Eligibility
An employee’s eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while actively employed, has
attained at least age 50 for classic and PEPRA Safety members and age 52 for PEPRA Miscellaneous members, and has at
least 5 years of credited service (total service across all CalPERS employers and with certain other retirement systems with
which CalPERS has reciprocity agreements). A CalPERS member must be actively employed with the CalPERS employer
providing this benefit to be eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was
married at least one year before death or, if there is no eligible spouse, to the member's unmarried child(ren) under age 18. A
member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of
this 1957 Survivor benefit.
Benefit
The 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified service retirement benefit that the member
would have been entitled to receive if the member had retired on the date of their death. If the benefit is payable to the spouse,
the benefit is discontinued upon the death of the spouse. If the benefit is payable to dependent child(ren), the benefit will be
discontinued upon death or attainment of age 18, unless the child(ren) is disabled. The total amount paid will be at least equal to
the basic death benefit.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 71
Optional Settlement 2 Death Benefit
This is an optional benefit.
Eligibility
An employee’s eligible survivor may receive the Optional Settlement 2 Death benefit if the member dies while actively employed,
has attained at least age 50 for classic and PEPRA Safety members and age 52 for PEPRA Miscellaneous members, and has
at least 5 years of credited service (total service across all CalPERS employers and with certain other retirement systems with
which CalPERS has reciprocity agreements). A CalPERS member who is no longer actively employed with any CalPERS
employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at
least one year before death. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to
receive that death benefit instead of this Optional Settlement 2 Death benefit.
Benefit
The Optional Settlement 2 Death benefit is a monthly allowance equal to the service retirement benefit that the member would
have received had the member retired on the date of their death and elected 100% to continue to the eligible survivor after the
member’s death. The allowance is payable to the surviving spouse until death, at which time it is continued to any unmarried
child(ren), if applicable. The total amount paid will be at least equal to the basic death benefit.
Special Death Benefit
This is a standard benefit for Safety members except those described in Section 20423.6. For excluded Safety members and all
Miscellaneous members, employers have the option of providing this benefit.
Eligibility
An employee’s eligible survivor(s) may receive the special death benefit if the member dies while actively employed and the
death is job-related. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this
benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or
illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried child(ren) under
age 22. An eligible survivor who chooses to receive this benefit will not receive any other death benefit.
Benefit
The special death benefit is a monthly allowance equal to 50% of final compensation and will be increased whenever the
compensation paid to active employees is increased but ceasing to increase when the member would have attained age 50. The
allowance is payable to the surviving spouse until death, at which time the allowance is continued to any unmarried child(ren)
under age 22. There is a guarantee that the total amount paid will at least equal the basic death benefit.
If the member’s death is the result of an accident or injury caused by external violence or physical force incurred in the
performance of the member’s duty, and there are eligible surviving child(ren) (eligible means unmarried child(ren) under age 22)
in addition to an eligible spouse, then an additional monthly allowance is paid equal to the following:
• if 1 eligible child: 12.5% of final compensation • if 2 eligible children: 20.0% of final compensation
• if 3 or more eligible children: 25.0% of final compensation
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 72
Alternate Death Benefit for Local Fire Members
This is an optional benefit available only to local fire members.
Eligibility
An employee’s eligible survivor(s) may receive the alternate death benefit in lieu of the basic death benefit or the 1957 Survivor
benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. A CalPERS member who
is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the
surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no
eligible spouse, an eligible survivor means the member's unmarried child(ren) under age 18.
Benefit
The Alternate Death benefit is a monthly allowance equal to the service retirement benefit that the member would have received
had the member retired on the date of their death and elected Optional Settlement 2. (A retiree who elects Optional Settlement 2
receives an allowance that has been reduced so that it will continue to be paid after their death to a surviving beneficiary.) If the
member has not yet attained age 50, the benefit is equal to that which would be payable if the member had retired at age 50,
based on service credited at the time of death. The allowance is payable to the surviving spouse until death, at which time it is
continued to any unmarried child(ren), if applicable. The total amount paid will be at least equal to the basic death benefit.
Cost-of-Living Adjustments (COLA)
Standard Benefit
Retirement and survivor allowances are adjusted each year in May for cost of living, beginning the second calendar year after
the year of retirement. The standard cost-of-living adjustment (COLA) is 2%. Annual adjustments are calculated by first determining the lesser of 1) 2% compounded from the end of the year of retirement or 2) actu al rate of price inflation. The
resulting increase is divided by the total increase provided in prior years. For any given year, the COLA adjustment may be less
than 2% (when the rate of price inflation is low), may be greater than the rate of price inflation (when the rate of price inflation is
low after several years of high price inflation) or may even be greater than 2% (when price inflation is high after several years of
low price inflation).
Improved Benefit
Employers have the option of providing a COLA of 3%, 4%, or 5%, determined in the same manner as described above for the
standard 2% COLA. An improved COLA is not available with the 1.5% at age 65 formula.
Purchasing Power Protection Allowance (PPPA)
Retirement and survivor allowances are protected against price inflation by PPPA. PPPA benefits are cost-of-living adjustments
that are intended to maintain an individual’s allowance at 80% of the initial allowance at retirement adjusted for price inflation
since retirement. The PPPA benefit will be coordinated with other cost-of-living adjustments provided under the plan.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 73
Employee Contributions
Each employee contributes toward their retirement based upon the retirement formula. The standard employee contribution is as
described below.
• The percent contributed below the monthly compensation breakpoint is 0%.
• The monthly compensation breakpoint is $0 for all PEPRA members and Classic members covered by a full or
supplemental formula and $133.33 for Classic members covered by a modified formula.
• The percent contributed above the monthly compensation breakpoint depends upon the benefit formula, as shown in
the table below.
Benefit Formula Percent Contributed
above the Breakpoint
Miscellaneous, 1.5% at age 65 2%
Miscellaneous, 2% at age 60 7%
Miscellaneous, 2% at age 55 7%
Miscellaneous, 2.5% at age 55 8%
Miscellaneous, 2.7% at age 55 8% Miscellaneous, 3% at age 60 8%
Miscellaneous, 2% at age 62 50% of the Total Normal Cost
Miscellaneous, 1.5% at age 65 50% of the Total Normal Cost
Safety, Half Pay at age 55 Varies by entry age
Safety, 2% at age 55 7% Safety, 2% at age 50 9%
Safety, 3% at age 55 9%
Safety, 3% at age 50 9%
Safety, 2% at age 57 50% of the Total Normal Cost
Safety, 2.5% at age 57 50% of the Total Normal Cost
Safety, 2.7% at age 57 50% of the Total Normal Cost
The employer may choose to “pick-up” these contributions for classic members (Employer Paid Member Contributions or
EPMC). EPMC is prohibited for new PEPRA members.
An employer may also include Employee Cost Sharing in the contract, where employees agree to share the cost of the employer
contribution. These contributions are paid in addition to the member contribution.
Auxiliary organizations of the CSU system may elect reduced contribution rates, in which case the offset is $317 and the
contribution rate is 6% if members are not covered by Social Security. If members are covered by Social Security, the offset is
$513 and the contribution rate is 5%.
Refund of Employee Contributions
If the member’s service with the employer ends, and if the member does not satisfy the eligibility conditions for any of the
retirement benefits above, the member may elect to receive a refund of their employee contributions, which are credited with 6%
interest compounded annually.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 74
1959 Survivor Benefit
This is a pre-retirement death benefit available only to members not covered by Social Security. Any agency joining CalPERS
subsequent to 1993 is required to provide this benefit if the members are not covered by Social Security. The benefit is optional
for agencies joining CalPERS prior to 1994. Levels 1, 2, and 3 are now closed. Any new agency or any agency wishing to add
this benefit or increase the current level may only choose the 4th or Indexed Level.
This benefit is not included in the results presented in this valuation. More information on this benefit is available on the
CalPERS website.
Appendix C - Participant Data
• Active Members 76
• Transferred and Separated Members 77
• Retired Members and Beneficiaries 78
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 76
Active Members
Counts of members included in the valuation are counts of the records 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.
Distribution of Active Members by Age and Service
Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+ Total
15-24 3 0 0 0 0 0 3
25-29 32 3 0 0 0 0 35
30-34 23 19 1 0 0 0 43
35-39 13 15 6 3 0 0 37
40-44 6 12 11 16 3 0 48
45-49 4 3 5 11 7 3 33
50-54 1 1 1 6 6 2 17
55-59 0 1 0 1 1 0 3
60-64 0 0 0 0 0 0 0
65 and Over 0 0 0 0 0 0 0
All Ages 82 54 24 37 17 5 219
Distribution of Average Annual Salaries by Age and Service
Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+
Average
Salary
15-24 $112,913 $0 $0 $0 $0 $0 $112,913
25-29 107,386 119,292 0 0 0 0 108,406
30-34 118,596 132,614 131,782 0 0 0 125,097
35-39 134,838 131,406 141,394 158,774 0 0 136,450
40-44 128,126 136,695 138,250 162,341 145,998 0 145,111
45-49 129,160 132,133 129,778 164,537 193,563 173,720 159,028
50-54 106,145 200,169 197,545 151,753 165,954 215,505 167,124
55-59 0 140,691 0 170,531 176,338 0 162,520
60-64 0 0 0 0 0 0 0
65 and Over 0 0 0 0 0 0 0
Average $117,649 $133,819 $139,472 $161,209 $174,412 $190,434 $137,455
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 77
Transferred and Separated Members
Distribution of Transfers to Other CalPERS Plans by Age, Service, and average Salary
Years of Service at Valuation Date
Attained Age 0-4 5-9 10-14 15-19 20-24 25+ Total Average Salary
15-24 0 0 0 0 0 0 0 $0
25-29 2 0 0 0 0 0 2 96,040
30-34 12 1 0 0 0 0 13 108,258
35-39 9 0 0 0 0 0 9 98,516
40-44 12 2 0 0 0 0 14 121,271
45-49 12 1 1 0 0 0 14 125,865
50-54 5 2 0 0 1 0 8 148,093
55-59 0 0 0 1 0 0 1 216,757
60-64 1 0 0 0 0 0 1 89,527
65 and Over 0 0 0 0 0 0 0 0
All Ages 53 6 1 1 1 0 62 $119,952
Distribution of Separated Participants with Funds on Deposit by Age, Service, and average Salary
Years of Service at Valuation Date
Attained Age 0-4 5-9 10-14 15-19 20-24 25+ Total
Average
Salary
15-24 0 0 0 0 0 0 0 $0
25-29 4 0 0 0 0 0 4 77,873
30-34 11 1 0 0 0 0 12 78,995
35-39 7 3 1 0 0 0 11 93,049
40-44 7 1 1 0 0 0 9 83,620
45-49 6 2 2 0 0 0 10 86,879
50-54 2 0 0 0 0 0 2 71,113
55-59 4 1 0 0 0 0 5 80,054
60-64 3 0 0 0 0 0 3 40,719
65 and Over 1 0 0 0 0 0 1 65,203
All Ages 45 8 4 0 0 0 57 $81,302
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 78
Retired Members and Beneficiaries
Distribution of Retirees and Beneficiaries by Age and Retirement Type*
Attained Age Service Retirement
Non-
Industrial Disability Industrial Disability
Non-
Industrial Death Industrial Death Death After Retirement Total
Under 30 0 0 0 0 0 0 0
30-34 0 0 2 0 0 0 2
35-39 0 0 1 0 0 0 1
40-44 0 0 7 0 0 0 7
45-49 0 0 10 0 0 0 10
50-54 16 0 13 0 0 1 30
55-59 33 0 21 0 0 1 55
60-64 43 0 15 0 0 0 58
65-69 32 1 10 0 0 4 47
70-74 26 0 15 0 0 5 46
75-79 14 0 10 0 2 2 28
80-84 7 0 4 0 0 1 12
85 and Over 2 0 1 0 0 4 7
All Ages 173 1 109 0 2 18 303
Distribution of Average Annual Disbursements to Retirees and Beneficiaries by Age and Retirement Type*
Attained
Age
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death After
Retirement Average
Under 30 $0 $0 $0 $0 $0 $0 $0
30-34 0 0 59,669 0 0 0 59,669
35-39 0 0 59,338 0 0 0 59,338
40-44 0 0 56,348 0 0 0 56,348
45-49 0 0 53,030 0 0 0 53,030
50-54 66,086 0 58,360 0 0 7,621 60,789
55-59 75,068 0 68,548 0 0 66,544 72,424
60-64 75,120 0 67,502 0 0 0 73,150
65-69 90,145 32,701 53,232 0 0 68,657 79,240
70-74 71,680 0 54,557 0 0 52,410 64,002
75-79 95,293 0 84,240 0 34,759 101,106 87,437
80-84 84,262 0 42,401 0 0 94,299 71,144
85 and Over 86,849 0 36,417 0 0 32,545 48,613
All Ages $78,675 $32,701 $61,589 $0 $34,759 $57,641 $70,837
* Counts of members do not include alternate payees receiving benefits while the member is still working. Therefore, the total counts may not
match information on C-1 of the report. Multiple records may exist for those who have service in more than one coverage group. This does not
result in double counting of liabilities.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 79
Retired Members and Beneficiaries (continued)
Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type*
Years Retired Service Retirement
Non-
Industrial Disability Industrial Disability
Non-
Industrial Death Industrial Death Death After Retirement Total
Under 5 Yrs 35 0 22 0 0 10 67
5-9 44 0 24 0 0 3 71
10-14 46 0 14 0 0 0 60
15-19 28 0 14 0 0 1 43
20-24 16 0 13 0 0 1 30
25-29 1 0 4 0 0 2 7
30 and Over 3 1 18 0 2 1 25
All Years 173 1 109 0 2 18 303
Distribution of Average Annual Disbursements to Retirees and Beneficiaries by Years Retired and Retirement Type*
Years
Retired
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death After
Retirement Average
Under 5 Yrs $73,857 $0 $74,063 $0 $0 $59,645 $71,803
5-9 74,846 0 67,883 0 0 45,772 71,264
10-14 73,710 0 66,306 0 0 0 71,983
15-19 97,624 0 68,460 0 0 66,544 87,406
20-24 83,187 0 64,798 0 0 112,148 76,184
25-29 22,701 0 41,057 0 0 37,250 37,347
30 and Over 84,886 32,701 31,184 0 34,759 50,576 38,751
All Years $78,675 $32,701 $61,589 $0 $34,759 $57,641 $70,837
* Counts of members do not include alternate payees receiving benefits while the member is still working. Therefore, the total
counts may not match information on C-1 of the report. Multiple records may exist for those who have service in more than one
coverage group. This does not result in double counting of liabilities .
Appendix D - Glossary
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 81
Glossary
Accrued Liability (Actuarial Accrued Liability)
The portion of the Present Value of Benefits allocated to prior years. It can also be expressed as the Present Value of
Benefits minus the present value of future Normal Cost. Different actuarial cost methods and different assumptions will lead
to different measures of Accrued Liability.
Actuarial Assumptions
Assumptions made about certain events that will affect pension costs. Assumptions generally can be broken down into two
categories: demographic and economic. Demographic assumptions include such things as mortality, disability, and
retirement rates. Economic assumptions include discount rate, wage inflation, and price inflation.
Actuarial Methods
Procedures employed by actuaries to achieve certain funding goals of a pension plan. Actuarial methods include an
actuarial cost method, an amortization policy, and an asset valuation method.
Actuarial Valuation The determination as of a valuation date of the Normal Cost, Accrued Liability, and related actuarial present values for a
pension plan. These valuations are performed annually or when an employer is contemplating a change in plan provisions.
Actuary
A business professional proficient in mathematics and statistics who measures and manages risk. A public retirement system actuary in California performs actuarial valuations necessary to properly fund a pension plan and disclose its
liabilities and must satisfy the qualification standards for actuaries issuing statements of actuarial opinion in the United
States with regard to pensions.
Amortization Bases
Separate payment schedules for different portions of the Unfunded Accrued Liability (UAL). The total UAL of a rate plan can
be segregated by cause. The impact of such individual causes on the UAL are quantified at the time of their occurrence,
resulting in new amortization bases. Each base is separately amortized and paid for over a specific period of time.
Generally, in an actuarial valuation, the separate bases consist of changes in UAL due to contract amendments, actuarial assumption changes, method changes, and/or experience gains and losses.
Amortization Period
The number of years required to pay off an Amortization Base.
Classic Member (under PEPRA)
A member who joined a public retirement system prior to January 1, 2013, and who is not defined as a new member under
PEPRA. (See definition of New Member below.)
Discount Rate
The rate used to discount the expected future benefit payments to the valuation date to determine the Projected Value of
Benefits. Different discount rates will produce different measures of the Projected Value of Benefits. The discount rate for
funding purposes is based on the assumed long-term rate of return on plan assets, net of investment and administrative
expenses. This rate is called the “actuarial interest rate” in Section 20014 of the California Public Employees’ Retirement
Law.
Entry Age
The earliest age at which a plan mem ber begins to accrue benefits under a defined benefit pension plan. In most cases, this
is the age of the member on their date of hire.
Entry Age Actuarial Cost Method
An actuarial cost method that allocates the cost of the projected benefits on an individual basis as a level percent of
earnings for the individual between entry age and retirement age. This method yields a total normal cost rate, expressed as
a percentage of payroll, which is designed to remain level throughout the member’s career.
Fresh Start
A Fresh Start is when multiple amortization bases are combined into a single base and amortized over a new Amortization
Period.
CalPERS Actuarial Valuation - June 30, 2024
Safety Plan of the City of Carlsbad
CalPERS ID: 3747905882
Page 82
Glossary (continued)
Funded Ratio
Defined as the Market Value of Assets divided by the Accrued Liability. Different actuarial cost methods and different
assumptions will lead to different measures of Funded Ratio. The Funded Ratio with the Accrued Liability equal to the
funding target is a measure of how well funded a rate plan is. A ratio greater than 100% means the rate plan has more
assets than the funding target and the employer need only contribute the Normal Cost. A ratio less than 100% means
assets are less than the funding target and contributions in addition to Normal Cost are required.
Funded Status
Any comparison of a particular measure of plan assets to a particular measure of pension obligations. The methods and
assumptions used to calculate a funded status should be consistent with the purpose of the measurement.
Funding Target
The Accrued Liability measure upon which the funding requirements are based. The funding target is the Accrued Liability
under the Entry Age Actuarial Cost Method using the assumptions adopted by the board.
GASB 68
Statement No. 68 of the Governmental Accounting Standards Board; the accounting standard governing a state or local
governmental employer’s accounting and financial reporting for pensions.
New Member (under PEPRA) A new member includes an individual who becomes a member of a public retirement system for the first time on or after
January 1, 2013, and who was not a member of another public retirement system prior to that date, and who is not subject
to reciprocity with another public retirement system.
Normal Cost
The portion of the Present Value of Benefits allocated to the upcoming fiscal year for active employees. Different actuarial
cost methods and different assumptions will lead to different measures of Normal Cost. The Normal Cost under the Entry
Age Actuarial Cost Method, using the assumptions adopted by the board, plus the required amortization of the UAL, if any,
make up the required contributions.
PEPRA
The California Public Employees’ Pension Reform Act of 2013.
Present Value of Benefits (PVB)
The total dollars needed as of the valuation date to fund all benefits earned in the past or expected to be earned in the
future for current members.
Traditional Unit Credit Actuarial Cost Method
An actuarial cost method that sets the Accrued Liability equal to the Present Value of Benefits as suming no future pay
increases or service accruals. The Traditional Unit Credit Cost Method is used to measure the accrued liability on a
termination basis.
Unfunded Accrued Liability (UAL)
The Accrued Liability minus the Market Value of Assets. If the UAL for a rate plan is positive, the employer is required to
make contributions in excess of the Normal Cost.