Loading...
HomeMy WebLinkAbout2010-02-23; City Council; Minutes (3)CITY OF CARLSBAD CITY COUNCIL SPECIAL MEETING MINUTES February 23. 2010 City Council Chambers 1200 Carlsbad Village Drive. Carlsbad CALL TO ORDER: Mayor Lewis called the meeting to order at 3:30 p.m. ROLL CALL: Present: Lewis, Kulchin, Hall, Packard, Blackburn PUBLIC COMMENT ON AGENDA ITEM: None. DEPARTMENTAL REPORT: 1. AB #20.140 - PRESENTATION ON PENSION AND HEALTH INSURANCE PROGRAMS. The staff report was presented by Finance Director Lisa Irvine, Assistant Finance Director Kevin Branca, and John Bartel, President of Bartel and Associates, as contained in two Power Point presentations (Pension and Health Care Information and Actuarial Issues) copies on file in the City Clerk's Office. Finance Director Irvine reviewed the charts showing the costs and benefits of the safety and miscellaneous retirements, and the portions paid by the City on behalf of the employees, and the percentage paid by the employees themselves. In response to inquiry from Council Member Hall, Ms. Irvine explained that the maximum rate that could be earned by a safety member, after 30 years of service, would be 90% of the last highest year's income. Council Member Blackburn inquired why the City is paying a portion of the employees' contributions, and if this practice is standard for other agencies. Ms. Irvine responded that the City's payment for employee costs was a benefit that was negotiated in 1981, when miscellaneous employees voted to remove themselves from Social Security, and that safety employees followed suit in 1985. Mr. Bartel explained that most agencies currently pay all, or part of, employee retirement costs. Mr. Bartels further discussed CalPERS rate calculations and investment policies. Ms. Irvine reviewed the charts outlining general fund salary and benefit cost projections. Mr. Bartel reviewed the CalPERS 10 year projection for asset gains and losses, showed the history of investment returns, and explained the methods used by CalPERS to determine agency contributions and amortize losses. Mr. Bartel also showed the contribution projections for the City for both safety and miscellaneous employees. In response to inquiry from Council Member Blackburn, Mr. Bartell explained that there were certain years around 2002 during which the City, and other agencies, did not pay into CalPERS due to a determination that the system was over-funded. He also noted that more recently, CalPERS has experienced several years of negative returns on their investments. Mr. Bartel also outlined certain recommendations for the Council to consider (on file in the City Clerk's Office) including how to deal with the unfunded liability, reduce amortization periods, and the option for establishing a two-tiered retirement system for new employees. Mayor Lewis suggested considering a charter amendment regarding establishment of a two-tier retirement system. Mr. Bartel concluded the presentation with information regarding a proposed statewide pension reform initiative. ADJOURNMENT. By proper motion, the Special Meeting was adjourned at 5:25 p.m. City Clerk 2/23/2010 City of Carlsbad Special Council Presentation February 23, 2010 Pension 2/23/2010 Fiscal Year 2008-09 Safety Plan Pension Costs 3(5)50 Benefit (# of employees = 183) Reporting the Value of EPMC $520,000 (3.0%) EPMC Employee Paid Member *" Contribution $187,000 (1.08%) Total Safety Plan Contribution Rates $7,207,000 (41.7%) Fiscal Year 2008-09 Miscellaneous Plan Pension Costs 3(5)60 Benefit (# of employees = 395) EPMC Employer Paid Member Contribution $2,348,000 (7%) Employer Contribution $6,984,000 (20.8%) Total Miscellaneous Plan Contribution Rates $9,667,000 (28.8%) Employee Member Contribution $335,000 (1%) 2/23/2010 30.000% & 1 15.000% -aS. 10.000% History of Employer Rate "5r © rf^^T® -s^..-^-- . . 'X>~->-:-v- ' \ ©^^p^-^-^r © \ &\ Q*• \ y / W >><)!><&<&<& aNfJ>d&oN o$ <£* fO cfc cO- c$ k^^^^^^^^^^^r^^r^1 Fiscal Year -"-Miscellaneous Employer Rate Safety Employer Rate 1. 2% @ 50 for safely (1983) 2. 2% @ 55 for miscellaneous (1999)(origmal=2%at60). 3. 3% @ 50 for police {7/2001 )' 4. EPMC for fire (3/2002) 5. 3% @ 50 for fire (1/2004) 6. EPMCforpolice(1/2004) 7. 3% at 60 for miscellaneous 1/2005) 8. CalPERS implemented a new rate stabilization policy, where market gains/losses are spread over 1 5 years as compared to 3 years. Note: The increase in rates reflected at points 4 thru 7 are also reflective of the decline in interest earnings during dot-corn failures. S GENERAL FUND PERS TO TOTAL GENERAL FUND SALARIES Projections -*-S of PERS to Salaries ToulGFS*l*rl« 11 Qtv (PERS. EPMC, ind npoitaCM EPMC] 2/23/2010 GENERAL FUND PERS AND TOTAL SALARIES ft BENEFITS TO TOTAL GENERAL FUND EXPENDITURES Projections KofPERS to Total GFExp 10UJ 101.04 iM.il iu.14 »;.0t 11: 1Q.-11 11-12 12-13 / TOTAL CITYWIDE PERS AND SALARIES & BENEFITS TO TOTAL CITY WIDE OPERATING EXPENDITURES HN M IM Tot.ICrtvwKt.PRS Tot«iaiywW*Sti B Tot»IC!tvwld.Op,EKp. -*-H Salaries and Benefits to City Total Operating Budget -*•% PERS to City Total Operating Budget m *- 4SK "*44K . — -*- — "• <» —4>K * •==i=»=S=^41* • m-» i — »8HX. : » MM .„ PERS imourti IncUM nKil co« lo m* Oty (PERS. EPHC. InO npo » "'" „ IttM EPMC) HM MJ r .!«. V _— • """ :: <% os-ot : '""•' „, •; IM. :, =4 014* .,, 2/23/2010 Health Insurance 2/23/2010 GENERAL FUND HEALTH TO TOTAL GENERAL FUND SALARIES GENERAL FUND HEALTH TO TOTAL GENERAL FUND EXPENDITURES Ht(Wl TotalfiF B<pMidttu<vi K Health to Total GFExp. 2/23/2010 Average Increase in CalPERS Medical Premiums II \ ^\ /? \10.0X \ if / \,« M // \ v/ 2004 2005 2006 2007 \>l -«-PPO[iverate] \ -»-HMO(»v«rag«) \ \ . ' V /"x/ 2008 2009 2010 13 2/23/2010 CITY OF CARLSBAD SAFETY & MISCELLANEOUS PLANS CalPERS Actuarial Issues - 6/30/08 Valuation JOHN E. BARTEL February 23. 21)10 Agenda Asset Smoothing City's Safety & Miscellaneous Plans Impact of 2nd Tiers Pension Reform 2/23/10 2/23/2010 Asset Smoothing 2/23/10 CalPERS Smoothing Method • Project Assets forward » Asset Gain/Losses Recognized • Corridor • Amortization • Years • Factor Old 7.75% 15 Years 80-120% 30 Years 6% New 7.75% 15 Years 80-140% 80-130% 80-120% 30 Years 6% jj£7 2/23/10 4 (B-j) 2/23/2010 CalPERS Smoothing Method Expand Corridor: • 140% for 2011/12 * 130% for 2012/13 • Back to 120% for 2013/14 & beyond Amortization: » 30 Fixed for 6/30/09, 6/30/10 & 6/30/11 losses * Rolling 30 years for everything else Significant reduction for 2011/12 & 2012/13 2013/14 rates likely back where they would have been 2/23/10 Case Study City's Safety & Miscellaneous Plans » Funded Status « Asset Projections: Actuarial & Market Basis » Contribution Projections Complicated Policy Decision! 2/23/10 2/23/2010 Historical Investment Returns —.-Above assumes contributions, payments, etc. received evenly throughout year. 2/23/10 Historical Investment Returns • 6/30/08: « Market Value return ~(5.1)% * Actuarial Value return ~ 8.0% • 6/30/09: « Market Value return1 ~(24.8)% » Estimated1 Modified AVA Return ~ 5.7% • Estimated1 Unmodified AVA Return ~ (8.2)% 1 Preliminary based on CalPERS July 21, 2009 published information adjusted for estimated AIM & real estate losses. 1 6/30/10 estimates based on CalPERS 12/31/09 published rate of return of 12.6%, loss of 1.5% through 1/31/10 based on CalPERS market value from the website and 7.75% thereafter. 2/23/10 8 2/23/2010 Safety Plan - Funded Ratio 140%Y 120%-' 100%-' 80%-' 60%-' 40%-' 20%-' 0%-'1 D Funded Ratio - AVA a Funded Ratio -MVA j° •J a-MUi 1996 1997 1998 104% 116% 119% 112% 129% 132% |- f JJLJ-HJJ j. 1999 2000 2001 2002 24% 121% 113% 90% 136% 126% 104% 82% fs JJHLL 2003 2<X 86% 84 78% 83 Jy 2(X 83 85 b 20C 82 87 b 200 84 97 b 200 84! ~85V 2009 84% 60% JJ 2010 83% 65% 2/23/10 Safety Plan - Funded Status Investment gains/(losses) - Impact on funded status: » Total estimated % loss through 6/30/09, not recognized in 6/30/08 valuation -24% [Considers excess of AVA over MVA at 6/30/07, 6/30/08 investment loss & 6/30/09 investment loss offset by anticipated 6/30/10] « Total estimated unrecognized loss $ -33 million Projected, 6/30/07 6/30/08 6/30/09/6730/39N $24 $26 [-24%x$136] UAL1 (millions) Investment losses2 Total 1 Includes gains or losses through June 30, 2008. 2 Ignores future gains & losses (after 6/30/10) and asset smoothing, and assumes continuance of 30-year rolling amortization method. 2/23/10 10 2/23/2010 Safety Plan Contribution Projections -•-Unmodified AVA -75th • - * - - Unmodified AVA - 50th - • • • Unmodified AVA - 25th -*~ Modified AVA - 75th — *— Modified AVA - 50th — •— Modified AVA - 25th _^, ^r^^ " """ u • — 1m- •• i • • « L • - - - A A. - ' 08/0909/10 10/11 11/12 12/13 13/14 14 29.6 28.4 28.0 35.0 35.1 35.4 37 29.6 28.4 28.0 35.0 35.1 35.2 35 29.6 28.4 28.0 35.0 35.1 35.0 34 29.6 28.4 28.0 28.8 29.5 35.9 38 29.6 28.4 28.0 28.8 29.5 32.6 33 29.6 28.4 28.0 28.8 29.5 30.0 3C 15 15/16 16/17 .2 39.0 40.5 .3 35.3 35.4 .8 34.3 33.8 .3 40.3 41.9 .0 33.5 33.9 .2 30.4 30.3 17/18 41.6 35.4 33.1 43.2 34.3 30.2 18/19 42.6 35.5 32.4 44.4 34.6 29.9 19/20 43.5 35.5 31.5 45.3 35.0 29.5 20/21 44.4 35.5 30.6 46.3 35.3 29.0 > jpib,. Employer rate only, does not include any City payment for employee contributions ^_ Safety Plan Total Estimated Asset Loss Through 6/30/10 » =$33 Million 2013/14 Fiscal Year Contribution Impact: » 4.6% of PERSable Wages » =$1.0 million Payments Do Not Cover Interest on Asset Losses » 30 year amortization beginning in 2009/10 would be ~ $2.0 million Estimated 2011/12: ^ 9 Benefit Payments /$7million\ * Modified AVA $ Contribution I 6 million J 2/23/10 12 2/23/2010 Miscellaneous Plan - Funded Ratio 160% Y 140%-' |M| f , <. 120%-' f* « : " 100%-' • * 80%-' 60%-' 40%-' 20%-' 1996 1997 1998 1999 2000 2001 • O Funded Ratio - AVA 102% 116% 129% 135% 133% 126% Q Funded Ratio -MVA 110% 129% 144% 149% 142% 119% \jjy 2/23/10 ,- • r' fir • 2002 2003 2004 2005 2006 2007 200^ 2009 2010 109% 81% 80% 79% 80% 80% 8l(i 81% 81% 99% 74% 78% 81% 84% 93% 82°\ 58% 63% <__> (^ Miscellaneous Plan - Funded Status Investment gains/(losses) - Impact on funded status: ® Total estimated % loss through 6/30/09, not recognized in 6/30/08 valuation -25% [Considers excess of AVA over MVA at 6/30/07, 6/30/08 investment loss & 6/30/09 investment loss offset by anticipated 6/30/10] •a Total estimated unrecognized loss $ -40 million [-25%x$163] UAL1 (millions) Investment losses2 Total 6/30/07 6/30/08 6/30/09 $36 $38 _40 78 1 Includes gains or losses through June 30, 2008. 2 Ignores future gains & losses (after 6/30/10) and asset smoothing, and assumes continuance of 30-year rolling amortization method. 2/23/10 14 2/23/2010 Miscellaneous Plan Contribution Projections • • • • Unmodified AVA - 75th * Unmodified AVA - 50th ••••• Unmodified AVA - 25th — •— Modified AVA - 75th — *— Modified AVA - 50th -*— Modified AVA - 25th ^r^^' m ••»•+ ' '*" - *-•_-L_£~Z~~~^~ //* "._, — . — . * '"*•••••• 08/09 20.8 20.8 20.8 20.8 20.8 208 09/10 21.2 21.2 21.2 21.2 21.2 21.2 10/11 21. 21 21. 21. 21. 21. _-* — 11/12 26.0 260 26.0 21.7 21.7 21.7 —f— 12/13 26.1 26.1 26.1 22.2 22,2 22.2 13/14 26.3 26.1 26.0 26.5 24.2 22.5 14/15 27.4 26.2 25.9 28.1 24.6 22.7 15/16 28.6 26.3 25.6 29.5 24.9 22.9 16/17 29.6 26.3 25.2 30.6 25.2 22.9 • • 17/18 30.4 26.4 24.8 31.5 25.5 22.8 18/19 31.1 26.4 24.3 32.3 25.8 22.6 19/20 31.8 26.5 23.7 33.0 26.1 22.3 20/21 32.4 26.5 23.1 33.7 26.3 22.0 .a^ Employer rate only, does not include any City payment for employee contributions __ Miscellaneous Plan Total Estimated Asset Loss Through 6/30/10 * =$40 Million 2013/14 Fiscal Year Contribution Impact: * 3.1% of PERSable Wages « =$1.2 million Payments Do Not Cover Interest on Asset Losses » 30 year amortization beginning in 2009/10 would be = $2.4 million Estimated 2011/12: ^—^ * Benefit Payments /$8 million\ •» Modified AVA $ Contribution 1 9 million J 2/23/10 16 8 2/23/2010 Assumptions: CalPERS Annual Rate of Return = 4.5% No change in benefit formula or EPMC 2/23/10 Recommendations for City to Consider Policy Implications of Not Asking for Shorter Amortization Period: * UAL Not Being Paid Off * Generational shift of Unfunded Liability Shorter Amortization Period —> Higher Rate for 2011/12 and Beyond? Generally bigger impact for Safety than Miscellaneous Recommend consider: » No change for 2010/11 but » Shorter amortization for 2011/12 2/23/10 9 2/23/2010 Impact of 2nd Tier 2/23/10 Impact of 2nd Tier Retirement Formula California Vested Rights: » Retirement Formula when hired can't be reduced unless provided with something of equal or greater value * Individual right - can't be bargained away 2-Tier Formula: * Lower formula for future hires, e.g. July 1, 2010 Existing UAL amortized over total (Tier 1 & Tier 2) payroll Negotiate to have employees pay portion of: » Employee contribution * Recent benefit improvement 2/23/10 20 10 2/23/2010 Impact of 2nd Tier Retirement Formula - Un-Pooled Plans Savings on reduction of normal cost only for Tier 2 Takes several years to become significant CalPERS 2 year valuation lag: » Savings may also lag 2 years » Unless CalPERS changes policy 2/23/10 Current Benefits • Benefit Formula • FAE • COLA • Report the Value of EPMC • 107 HER Contribution > Normal Cost > Amortizations > Subtotal • EPMC • Total Miscellaneous 3%@60 One Year (FAE 1) 2% No 12.2% 8.8 21.1 7.0 28.1 Safety 3%@50 One Year (FAE 1) 2% By Resolution 17.9% 10.1 28.0 8.0 36.0 \$ 2/23/10 22 UXj) 11 2/23/2010 Pension Benefit Comparison - Safety %—•—I—•—•- S 20% Ex. Final salary = $91,000 Total years of service = 28 50 51 52 53 54 55 56 57 58 59 60 Retirement Age ^oes not include the effect of EPMC or other special compensation (ex. uniform allowance) 2/23/10 !3 Pension Benefit Comparison - Miscellaneous 3.0V. 2.5% £- 1.5H 1.0% | -m-2*&a -*-a*e5s • z.sitass *- 2.7ses5 -»-3%aso| G\ ..... ^x^l^*^*^ ^^ --"^^" ,'^ ,"'"l,---^" 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Retirement Age 2/23/10 24 Sample Benefit at Age 60 Ex. Final salary = $82,000 Total years of service = 23 © 12 2/23/2010 Alternative Benefits Alternative Benefits - Employees Hired > 7/1/10 • Miscellaneous: 2%a<50 FAE3 • Safety: 2%fg;50 FAE3 Estimated ER Normal Cost (NC) • Based on Pool Normal Cost • Adjusted for demographic difference Formula > Pool's Net NC > Surcharge for Class 1 Benefits » Total > Saving from current formula Miscellaneous 2%@60 FAE3 6.5% 01 7.3 4.9% Safety 2%@50 FAE3 11.2% 13 12.5 5.4% I Estimated Savings • Projection based on benefits earned, not benefits being paid out • Savings % apply to Tier 2 payroll 2/23/10 25 2nd Tier Projected Savings (OOOs omitted) Year 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 Total Over 1 0 yrs SAFETY 2@50 3-yr FAE1 .$12 $25 $46 $85 $141 $216 $285 $360 $440 $531 $2,141 MISC. 2@60 3-yr FAE1 $79 $134 $207 $311 $420 $536 $660 $787 $914 $1,050 $5,098 'Final Average Earnings (FAE) used to calculate retirement benefit. Data estimated as of 2/2010 \jj[ 2/23/10 26 nv]) 13 2/23/2010 Historical Impact of 3%@50 & 3%@60 Safety (3% @ 50): % of Persable Payroll By Unit % of Total Safety Persable Payroll Fire 13.9% 6.6% Police Miscellaneous (3% @ 60): 9.7% 12.10/ 2/23/10 Pension Reform 2/23/10 14 2/23/2010 Pension Reform Ballot Initiative California Foundation for Fiscal Responsibility * Signatures Proposal: • Police & Fire 2.3%@58 ®Other Safety 1.8%@60 »Miscw/oSS 1.65%@67 «MiscwSS 1.25%(5>67 2/23/10 Pension Reform Ballot Initiative Proposal: » Cap » PERSable Wages » Final Average Earnings « COLA » Employee Contributions With Social Security Without Social Security 75% Base only 3 year average 2-3% 2% 4% 2/23/10 15 2/23/2010 Pension Reform Ballot Initiative Likely Normal Cost Savings: Agency Employee • Police & Fire 3.5% 5% • Misc w/o SS 2.5 -5.5% 3-4% » Misc w SS 2-5% 5-6% 2/23/10 16 CITY OF CARLSBAD Memorandum February 17, 2010 www.carlsbadca.gov To: Mayor and City Council From: City Manager jj^—-— \FEB 2 3 2010 CITY OF CARLSBADCITY CLERK'S OFFICE Re:Benefit Plans Offered by CalPERS to Miscellaneous and Safety Personnel As requested, attached you will find both graphic and numeric information relating to the various benefit plans offered by CalPERS for Miscellaneous and Safety employees. Please let me know if you would like additional information. Thank you. Attachments LH/src CB City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-2820 I 760-720-9461 fax 3.0% 1.0% Miscellaneous Benefit Factor Comparison •2%@60 -+-2%@55 2.7%@55 -B-3%@60 50 51 52 53 54 55 56 57 58 59 62 63 64 65 Retirement Age Benefit Cap: Miscellaneous has NO cap February 24.2009 10 PERCENTAGE OF FINAL COMPENSATION Age 50 51 52 53 54 55 56 57 58 59 60 61 62 63n- Benefit Factor i 1.092 1.156 1.224 j 1.296 1.376 1.460 1.552 1.650 1.758 1.8741 2.000 2.134 2.272 | 2.418 Years of Service 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Percentage of Final Compensation 5.46 6.55 7.64 8.74 9.83 10.92 12.01 13.10 14.20 15.29 16.38 17.47 18.56 19.66 20.75 21.84 22.93 24.02 25.12 26.21 27.30 28.39 29.48 30.58 31.67 32.76 33.85 5.78 6.94 8.09 9.25 10.40 11.56 12.72 13.87 15.03 16.18 17.34 18.50 19.65 20.81 21.96 23.12 24.28 25.43 26.59 27.74 28.90 30.06 31.21 32.37 33.52 6.12 7.34 8.57 9.79 11.02 12.24 13.46 14.69 15.91 17.14 18.36 19.58 20.81 22.03 23.26 24.48 25.70 26.93 28.15 29.38 30.60 31.82 33.05 34.27 35.50 34.68 36.72 6.48 7.78 9.07 10.37 11.66 12.96 14.26 15.55 16.85 18.14 19.44 20.74 22.03 23.33 24.62 25.92 27.22 28.51 29.81 31.10 32.40 33.70 34.99 36.29 37.58 38.88 35.84 37.94 40.18 34.94 36.99 39.17 41.47 6.88 8.26 9.63 11.01 12.38 13.76 15.14 16.51 17.89 19.26 20.64 22.02 23.39 24.77 26.14 27.52 28.90 30.27 31.65 33.02 34.40 35.78 37.15 38.53 39.90 41.28 42.66 44.03 36.04 38.15 40.39 42.77 45.41 — 39.30 41.62 44.06j i 46.78 7.30 8.76 10.22 11.68 13.14 14.60 16.06 17.52 18.98 20.44 21.90 23.36 24.82 26.28 27.74 29.20 30.66 32.12 33.58 35.04 36.50 37.96 39.42 40.88 42.34 43.80 45.26 46.72 48.18 7.76 9.31 10.86 12.42 13.97 15.52 17.07 18.62 20.18 21.73 23.28 24.83 26.38 27.94 29.49 31.04 32.59 34.14 35.70 37.25 38.80 40.35 41.90 43.46 45.01 8.25 9.90 11.55 13.20 14.85 16.50 18.15 19.80 21.45 23.10 24.75 26.40 28.05 29.70 31.35 33.00 34.65 36.30 37.95 39.60 41.25 42.90 44.55 46.20 47.85 8.79 10.55 12.31 14.06 15.82 17.58 19.34 21.10 22.85 24.61 26.37 28.13 29.89 31.64 33.40 35.16 36.92 38.68 40.43 42.19 43.95 45.71 47.47 49.22 50.98 9.37 11.24 13.12 14.99 16.87 18.74 20.61 22.49 24.36 26.24 28.11 29.98 31.85 33.73 35.61 37.48 39.35 41.23 43.10 44.98 46.85 48.72 50.60 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 52.47 56.00 54.35 58.00 10.67 12.80 14.94 17.07 19.21 21.34 23.47 25.61 27.74 29.88 32.01 34.14 36.28 38.41 40.55 42.68 44.81 46.95 49.08 51.22 53.35 55.48 11.36 13.63 15.90 18.18 20.45 22.72 24.99 27.26 29.54 31.81 34.08 36.35 38.62 40.90 43.17 45.44 47.71 49.98 52.26 54.53 56.80 59.07 57.62 i 61.34 59.75 61.89 63.62 65.89 46.56 49.50 52.74 56.22 60.00 64.02 68.16 48.11 51.15 54.50 58.09 j 62.00 66.15 \ 70.43 49.66 52.80 56.26 59.97 j 64.00 68.29 72.70 51.22 54.45 58.01 61.84 j 66.00 I 70.42 74.98 49.64 52.77 56.10 | 59.77 | 63.72 68.00 j 72.56 77.25 — 1 — ; 42.84 i 45.36 48.16 j 51.10 54.32 j 57.75 j 61.53 65.59 j 70.00 I 74.69 | 79.52 36 | — I — — 46.66 49.54 52.56 55.87 ] 59.40 ! 63.29 i 67.46 j 72.00 j 76.82 J 81.79 37 — i — ; — ! — 50.91 54.02 j 57.42 | 61.05 1 65.05 j 69.34 74.00 | 78.96 j 84.06 38 — \ — I — — — 55.48 58.98 i 62.70 j 66.80 j 71.21 76.00 I 81.09 | 86.34 39 — : — : — 1 — | — — 60.53 j 64.35 j 68.56 73.09 \ 78.00 ; 83.23 ! 88.61 40 — . — — j — — — i — ! 66.00 i 70.32 • 74.96 ; 80.00 85.36 : 90.88 12.09 14.51 16.93 19.34 21.76 24.18 26.60 29.02 31.43 33.85 36.27 38.69 41.11 43.52 45.94 48:36 50.78 53.20 55.61 58.03 60.45 62.87 65.29 67.70 70.12 72.54 74.96 77.38 79.79 82.21 84.63 87.05 89.47 91.88 94.30 96.72 (883) CalPERS (22 | www.calpers.ca.gov 21 PERCENTAGE OF FINAL COMPENSATION Age 50 51 52 53 54 55 56 57 58 59 60 61 62 63+ BcncHt Fiittor 1.426 j 1. 522 1.628 j 1.742 1 .866 j 2.000 | 2.052 j 2.104 2. 156 j 2.210 | 2.262 ! 2.314 2.366 2.418 fears of Service 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Percentage of Final Compensation 7.13 8.56 9.98 11.41 12.83 14.26 15.69 17.11 18.54 19.96 21.39 22.82 24.24 25.67 27.09 28.52 29.95 31.37 32.80 34.22 35.65 37.08 38.50 39.93 41.35 42.78 7.61 9.13 10.65 12.18 13.70 15.22 16.74 18.26 19.79 21.31 22.83 24.35 25.87 27.40 28.92 30.44 31.96 33.48 35.01 36.53 38.05 39.57 41.09 42.62 44.14 45.66 44.21 1 47.18 45.63 1 48.70 47.06 — 50.23 51.75 8.14 9.77 11.40 13.02 14.65 16.28 17.91 19.54 21.16 22.79 24.42 26.05 27.68 29.30 30.93 32.56 34.19 35.82 37.44 39.07 40.70 42.33 43.96 45.58 47.21 48.84 50.47 52.10 53.72 55-35 — — 56.98 — — — i — i — — 8.71 10.45 12.19 13.94 15.68 17.42 19.16 20.90 22.65 24.39 26.13 27.87 29.61 31.36 33.10 34.84 36.58 38.32 40.07 41.81 43.55 45.29 47.03 48.78 50.52 52.26 54.00 55.74 57.49 59.23 60.97 62.71 ! — — 9.33 11.20 13.06 14.93 16.79 18.66 20.53 22.39 24.26 26.12 27.99 29.86 31.72 33.59 35.45 37.32 39.19 41.05 42.92 44.78 46.65 48.52 50.38 52.25 54.11 55.98 57.85 59.71 61.58 63.44 65.31 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 56.00 58.00 60.00 62.00 64.00 66.00 68.00 70.00 67.18 72.00 10.26 12.31 14.36 16.42 18.47 20.52 22.57 24.62 26.68 28.73 30.78 32.83 34.88 36.94 38.99 41.04 43.09 45.14 47.20 49.25 51.30 53.35 55.40 57.46 59.51 61.56 63.61 65.66 67.72 69.77 10.52 12.62 14.73 16.83 18.94 21.04 23.14 25.25 27.35 29.46 31.56 33.66 35.77 37.87 39.98 42.08 44.18 46.29 48.39 50.50 52.60 54.70 56.81 58.91 61.02 63.12 65.22 10.78 12.94 15.09 17.25 19.40 21.56 23.72 25.87 28.03 30.18 32.34 34.50 36.65 38.81 40.96 43.12 45.28 47.43 49.59 51.74 53.90 56.06 58.21 60.37 62.52 64.68 66.84 11.05 13.26 15-47 17.68 19.89 22.10 24.31 26.52 28.73 30.94 33.15 35.36 37.57 39.78 41.99 44.20 46.41 48.62 50.83 53.04 55.25 57.46 59.67 61.88 64.09 66.30 11.31 13.57 15.83 18.10 20.36 22.62 24.88 27.14 29.41 31.67 33.93 36.19 38.45 40.72 42.98 45.24 47.50 49.76 52.03 54.29 56.55 58.81 61.07 63.34 65.60 67.86 68.51 70.12 11.57 13.88 16.20 18.51 20.83 23.14 25.45 27.77 30.08 32.40 34.71 37.02 39.34 41.65 43.97 46.28 48.59 50.91 53.22 55.54 57.85 60.16 62.48 64.79 67.11 11.83 14.20 16.56 18.93 21.29 23.66 26.03 28.39 30.76 33.12 35.49 37.86 40.22 42.59 44.95 47.32 49.69 52.05 54.42 56.78 59.15 61.52 63.88 66.25 68.61 69.42 70.98 71.73 73.35 67.33 68.99 | 70.72 72.38 74.05 75.71 69.43 71.54 71.82 73.64 71.15 72.93 74.65 76.36 j 78.08 73.30 | 75.14 76.91 78.68 ! 80.44 75.46 77.35 79.17 ! 80.99 1 82.81 73.87 75.74 77.62 j 79.56 81.43 83.30 85.18 69.04 74.00 75.92 77.85 79.77 i 81.77 1 83.69 | 85.62 ! 87.54 — 76.00 77.98 | 79.95 81.93 I 83.98 : 85.96 1 87.93 1 89.91 — ; — | — — — — | 80.03 j 82.06 ! 84.08 | 86.19 88 22 - 90.25 92.27 40 — j — ! — |. — — | — 1 — | 84.16 | 86.24 j 88.40 90.48 92.56 I 94.64 12.09 14.51 16.93 19.34 21.76 24.18 26.60 29.02 31.43 33.85 36.27 38.69 41.11 43.52 45.94 48.36 50.78 53.20 55.61 58.03 60.45 62.87 65.29 67.70 70.12 72.54 74.96 77.38 79.79 82.21 84.63 87.05 89.47 91.88 94.30 96.72 I (888) CalPERS (225-7377) | www.calpers.ca.gov 19 PERCENTAGE OF FINAL COMPENSATION Age Benefit Factor Years of Service 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 50 51 ' 52 53 2.000 2.100 2.200 2.300 54 2.400 55+ 2.500 Percentage of Final Compensation 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 56.00 58.00 60.00 62.00 64.00 66.00 — — — — — 10.50 12.60 14.70 16.80 18.90 21.00 23.10 25.20 27.30 29.40 31.50 33.60 35.70 37.80 39.90 42.00 44.10 46.20 48.30 50.40 52.50 54.60 56.70 58.80 60.90 63.00 65.10 67.20 69.30 71.40 — — — — 11.00 13.20 15.40 17.60 19.80 22.00 24.20 26.40 28.60 30.80 33.00 35-20 37.40 39.60 41.80 44.00 46.20 48.40 50.60 52.80 55.00 57.20 59.40 61.60 63.80 66.00 68.20 70.40 72.60 74.80 77.70 — — — 11.50 13.80 16.10 18.40 20.70 23.00 25.30 27.60 29.90 32.20 34.50 .36.80 39.10 41.40 43.70 46.00 48.30 50.60 52.90 55.20 57.50 59.80 62.10 64.40 66.70 69.00 71.30 73.60 75.90 78.20 80.50 82.80 — — 12.00 14.40 16.80 19.20 21.60 24.00 26.40 28.80 31.20 33.60 36.00 38.40 40.80 43.20 45.60 48.00 50.40 52.80 55.20 57.60 60.00 62.40 64.80 67.20 69.60 72.00 74.40 76.80 79.20 81.60 84.00 86.40 88.80 — 12.50 15.00 17.50 20.00 22.50 25.00 27.50 30.00 32.50 35.00 37.50 40.00 42.50 45.00 47.56 50.00 52.50 55.00 57.50 60.00 62.50 65.00 67.50 70.00 72.50 75.00 77.50 80.00 82.50 85.00 87.50 90.00 92.50 95.00 BENEFIT FACTORS The chart below shows how the benefit factor increases for each quarter year of age from 50 to 55. Age at Retirement 50 51 52 53 54 55+ Exact Year 2.000 2.140 2.280 2.420 2.560 • 2.700 V4 Year 2.035 2.175 2.315 2.455 2.595 — 1/2 Year 2.070 2.210 2.350 2.490 2.630 — % Year 2.105 2.245 2.385 2.525 2.665 — PERCENTAGE OF FINAL COMPENSATION Age 3U 31 DZ 55 . 14 55 + ', Benefit Factor . 2.00 2.14 2.28 2.42 2.56 270 Years of Service 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Percentage of Final Compensation . 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 56.00 58.00 60.00 62.00 64.00 66.00 — — — — — 10.70 12.84 14.98 17.12 19.26 21.40 23.54 25.68 27.82 29.96 32.10 34.24 36.38 38.52 40.66 42.80 44.94 47.08 49.22 51.36 53.50 55.64 57.78 59.92 62.06 64.20 66.34 68.48 70.62 72.76 — — — — 11.40 13.68 15.96 18.24 20.52- 22.80 . 25.08 27.36 29.64 31.92 34.20 36.48 38.76 41.04 43.32 45.60 47.88 50.16 52.44 54.72 57.00 59.28 61.56 63.84 66.12 68.40 70.68 72.96 75.24 77.52 79.80 — — ~ _ ._i 12.10 14.52 16.94 19.36 21.78 24.20 26.62 29.04 31.46 33.88 36.30 38.72 41.14 43.56 45.98 48.40 50.82 53.24 55.66 58.08 60.50 62.92 65.34 67.76 70.18 72.60 75.02 77.44 79.86 82.28 84.70 87.12 — 12.80 15.36 17.92 20.48 23.04 25.60 28.16 30.72 33.28 35.84 38.40 40.96 43.52 . 46.08 48.64. 51.20 53.76 56.32 58.88 61.44 64.00 66.56 69.12 71.68 74.24 76.80 79.36 81.92 84.48 87.04 89.60 '92.16 94.72 ~~ 13.50 1 16.20 18.90 21.60 24.30 27.00 29.70 32.40 35.10 37.80 40.50 43.20 45.90 48.60 51.30 54.00 56.70 59.40 62.10 64.80 67.50 70.20 72.90 75.60 78.30 81.00 83.70 86.40 89.10 91.80 94.50 97.20 99.90 102.60 082007 MH 0.1 percent BENEFIT FACTORS The chart below shows how the benefit factor increases for each quarter year of age from 50 to 60. Age at Retirement 50 51 52 53 54 55 56 57 58 59 60 or older Exact Year 2.000 2.100 2.200 2.300 2.400 2.500 2.600 2.700 2.800 2.900 3.000 1/4 Year 2.025 2.125 2.225 2.325 2.425 2.525 2.625 2.725 2.825 2.925 — '/2 Year 2.050 2.150 2.250 2.350 2.450 2.550 2.650 2.750 2.850 2.950 — %Year 2.075 2.175 2.275 2.375 2.475 2.575 2.675 2.775 2.875 2.975 — PERCENTAGE OF FINAL COMPENSATION Age 50 Benefit Factor 2.00 Years of Service 'percentw Percentage of Final Compensation 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 4- 38 1 39 •10 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 32.00 34.00 36.00 38.00 40.00 42.00 44.00 46.00 48.00 50.00 52.00 54.00 56.00 58.00 60.00 62.00 64.00 66.00 — — — - — — ~ 10.50 12.60 14.70 16.80 18.90 21.00 23.10 25.20 27.30 29.40 31.50 33.60 35.70 37.80 39.90 42.00 44.10 46.20 48.30 50.40 52.50 54.60 56.70 58.80 60.90 63.00 65.10 67.20 69.30 71.40 — — — — — — 11.00 13.20 15.40 17.60 19.80 22.00 24.20 26.40 28.60 30.80 33.00 35.20 37.40 39.60 41.80 44.00 46.20 48.40 50.60 52.80 55.00 57.20 59.40 61.60 63.80 66.00 68.20 70.40 72.60 74.80 77.00 — — — — — 11.51 13.8( 16.K 18.40 20.70 23.00 25.30 27.60 29.90 32.20 34.50 36.80 39.10 41.40 43.70 46.00 48.30 50.60 52.90 55.20 57,50 59.80 62.10 64.40 66.70 69.00 71.30 73.60 75.90 78.20 80.50 82.80 — — — — 3 12.0 ) 14.4 ) 16.8 19.2 21.6 24.CH 26.41 28.8C 31.20 33.60 36.00 38.40 40.80 43.20 45.60 48.00 50.40 52.80 55.20 57.60 60.00 62.40 64.80 67.20 69.60 72.00 74.40 76.80 79.20 81.60 84.00 86.40 88.80 — 0 12.5 0 15.0 0 17.5 0 20.0 3 22.51 ) 25.0( ) 27.5C 1 30.0C 32.50 35.00 37.50 40.00 42.50 45.00 47.50 50.00 52.50 55.00 57.50 60.00 62.50 65.00 67.50 70.00 72.50 75.00 77.50 80.00 82.50 85.00 87.50 90.00 92.50 95.00 j n n 0 D 1 ) ) L i A 4 S "S 5 5 (1 ' 6' 6- 7f 7? 75 78 SO 83 85 88 91. 93. 96. 98 mi 13.00 15.60 18.20 20.80 23.40 26.00 28.60 31.20 33.80 36.40 39.00 41.60 44.20 46.80 49.40 52.00 54.60 57.20 59.80 62.40 65.00 67.60 13.50 16.20 18.90 21.60 24.30 27.00 29.70 32.40 35.10 37.80 40.50 43.20 45.90 48.60 51.30 54.00 56.70 59.40 62.10 64.80 67.50 70.20 72.90 75.60 7^8.30 81.00 83.70 86.40 89.10 91.80 94.50 97.20 99.90 102.60 105.30 108.00 14.00 16.80 19.60 22.40 25.20 28.00 30.80 33.60 36.40 39.20 42.00 44.80 47.60 50.40 53.20 56.00 58.80 61.60 64.40 67.20 70.00 72.80 75.60 78.40 81.20 84.00 86.80 89.60 92.40 95.20 98.00 100.80 103.60 106.40 109.20 112.00 14.50 17.40 20.30 23.20 26.10 29.00 31.90 34.80 37.70 40.60 43.50 46.40 49.30 52.20 55.10 58.00 60.90 63.80 66.70 69.60 72.50 75.40 78.30 81.20 84.10 87.00 89.90 92.80 ^570 98.60 101.50 104.40 10730 110.20 113.10 16.00 15.00 18.00 21.00 24.00 27.00 30.00 33.00 36.00 39.00 42.00 45.00_ 48.00 51.09 54.0^ 57.00 60.00 63.C 66.C 69.C 72.00 75.00_ 78.00 8LOO 84.00 87.00 90.00 93.00 96.00 ^9.00 102.C 105.C 108. ( m^ 114.C 17.00 120. 3.0% 1.0% Safety Benefit Factor Comparison -2% @ 55 -4-2% @ 50 -•- 3% @ 55 -A- 3% @ 50 50 51 52 53 Benefit Cap: Safety = 90% February 24, 2009 54 55 56 Retirement Age 8 57 58 59 60 O PERCENTAGE OF FINAL COMPENSATION *~y IHHI ^IpiTOiBiUjrHijffpl ! r _ 1 5 ! 6 i 8 I 9 1 10 i 11 I 12 1 13 14 15 1 16 1 17 1 18 I 19 | 20 1 21 22 23 24 25 26 I 27 1 28 ! 29 I 30 31 i 32 I 33 34 ; 35 36 37 38 39 40 50 1.426 51 . - 1.522. ' .; „ 52 i '...'.. 1.628 ; 53 | 54 55 • .. 1,742, ..J.'.. .1.866:: a: '.•:. 2.000 '• ^1 7.13 8.56 9.98 11.41 12.83 14.26 15.69 17.11 18.54 19.96 21.39 22.82 24.24 25.67 27.09 28.52 29.95 31.37 32.80 34.22 35.65 37.08 38.50 39.93 41.35 • 42.78 44.21 45.63 7.61 9.13 10.65 12.18 13.70 15.22 16.74 18.26 19.79 21.31 22.83 24.35 25.87 1 8.14 9.77 1 1 .40 13.02 14.65 16.28 17.91 19.54 21.16 22.79 24.42 26.05 27.68 27.40 j 29.30 28.92 1 30.93 30.44 31.96 33.48 35.01 36.53 32.56 34.19 35.82 37.44 39.07 38.05 ! 40.70 39.57 1 42.33 ; 41.09 42.62 44.14 45.66 47.18 48.70 50.23 43.96 45.58 47.21 48.84 1 50.47 i 52.10 ; 53.72 ; 55.35 8.71 10.45 12.19 13.94 15.68 17.42 19.16 20.90 22.65 24.39 26.13 27.87 29.61 31.36 33.10 34.84 9.33 11.20 13.06 14.93 16.79 18.66 20.53 22.39 24.26 26.12 27.99 29.86 31.72 33.59 35.45-. 37.32 36.58 1 39.19 38.32 | 41.05 40.07 1 42.92 41.81 j 44.78 43.55 1 46.65 45.29 1 48.52 47.03 | 50.38 48.78 | 52.25 50.52 j 54.11 52.26 i 55.98 54.00 | 57.85 55.74 | 59.71 57.49 \ 61.58 ; 59.23 63.44 60.97 : 65.31 — ; 67. 1 8 I 10.00 j 12.00 | 14.00 16.00 1 18.00 j 20.00 j 22.00 ! 24.00 j 26.00 | 28.00 ! 30.00 j 32.00 j 34.00 j 36.00 | 38.00 1 40.00 | 42.00 i 44.00 j 46.00 ; 48.00 j 50.00 j 52.00 | 54.00 j 56.00 j 58.00 : 60.00 : 62.00 64.00 66.00 : 68.00 70.00 : 72.00 74.00 76.00 7H.OO XD. 00 PERCENTAGE OF FINAL COMPENSATION j^^^^^^^H^^^^^HBi^BH^^^H^^^HHHB «M|Ml^N^S^^^M^n i Years oF Service * [ 5 j 10.00, f6 i 12.00 7 | 14.00 8 I 16.00 9 1 18.00 10 [ 20.00 | 11 1 22.00 12 i 24.00 13 [ 26.00 j 14 | 28.00 | 15 | 30.00 1 16 | 32.00 1 17 | 34.00 j 18 | 36.00 j 19 1 38.00 ! 20 ! 40.00 | 21 i 42.00 | 22 44.00 j 23 | 46.00 ! 24 | 48.00 l • ! 25 j 50.00 | 26 | 52.00 | 27 I 54.00 j 28 | 56.00 i 29 j 58.00 i 30 60.00 ! 31 I 62.00 ! 32 ! 64.00 1 33 — ! 34 I _ 35 | — 36 i — 37 : — ••)•HHHEffi^HTI HHwSIH IBBHHEwl Lfiisentage nt HnaLCompensation ; | 10.50 j 11.00 | ]K5o ( 12.60 | 14.70 | 16.80 I 18.90 | 21.00 | 23.10 | 25.20 27.30 | 29.40 I 31.50 j 33.60 | 35.70 i 37.80 [ 39.90 42.00 | 44.10 | 46.20 • i | 48.30 | I 50.40 1 I 52.50 j 54.60 | I 56.70 | 1 58.80 j 60.90 1 63.00 [ ! 65.10 i ; 67.20 | ! 69.30 \ — : : : .. | 13.20 15.40 [ 17.60 j 19.80 j 22.00 ! 24.20 26.40 | 28.60 | 30.80 1 33.00 35.20 37.40 39.60 41.80 44.00 46.20 48.40 50.60 52.80 | 55.00 | 57.20 1 59.40 | 61.60 I 63.80. | 66.00 | 68.20 i 70.40 | 72.60 j 74.80 i — j 1 13.80 | 16.10 I 18.40 j 20.70 1 23.00 25.30 1 27.60 | 29.90 I 32.20 | 34.50 | 36.80 [ 39.10 j 41.40 43.70 46.00 48.30 50.60 52.90 55.20 57.50 59.80 62.10 64.40 66.70 69.00 71.30 73.60 75.90 78.20 80.50 ~ ., | 54 .,, • ••;.'( •: : 2.400- :. j 12.00 1 14.40 | 16.80 | 19.20 1 21.60 j 24.00 [ 26.40 j 28.80 1 31.20 j 33.60 1 36.00 | 38.40 | 40.80 I 43.20 | 45.60 | 48.00 | 50.40 I 52.80 I 55.20 ! 57.60 1 60.00 j 62.40 • i 64.80 67.20 I 69.60 ! 72.00 • 74.40 '• 76.80 i 79.20 ; 81.60 ; 84.00 \ 86.40 ; "HBHiBffi8Bi j 12.50 1L ' 1 15.00 ! | 17.50 j ! 20.00 ) i 22.50 i i 25.00 | 1 27.50 i I 30.00 I i 32.50 j | 35.00 ) i 37.50 i; j— r ; I 40.00 1 ! 42.50 j | 45.00 | ! 47.50- 1 j 50.00 1 1 52-5() i I 55.00 i I 57.50 j | 60.00 j I 62.50 I ! 65.00 ! ! 67.50 ! j 70.00 i 1 72.50 - 75.00 ; 77.50 : 80.00 82.50 8.5.00 87.50 90.00 max 90.00 max (888) CalPERS (225-7377; PERCENTAGE OF FIN/ ^•-BeneZkor ; 2.000 Years of Service 5 ! 10.00 j 6 12.00 7 | 14.00 j 8 | 16.00 9 18.00 10 20.00 11 22.00 12 j 24.00 13 26.00 14 28.00 15 30.00 | 16 32.00 | 17 34.00 18 36.00 19 38.00 20 40.00 21 I 42.00 22 44.00 23 46.00 24 48.00 | 25 50.00 26 52.00 | 27 54.00 i 28 56.00 i 29 I 58.00 | 30 | ' 60.00 1 31 ! 62.00 j 32 64.00 } 33 1 — : 34 ; — 35 : — ; 36 [ — 37 ; — a COMPENSATION 51 52 2.140 -.(•'• 2.280 Eerceatage-c 10.70 1 11.40 12.84 13.68 14.98 j 15.96 17.12 18.24 19.26 20.52 21.40 22.80 23.54 25.08 25.68 27.36 27.82 i 29.64 29.96 j 31.92 32.10 34.20 34.24 36.48 36.38 38.76 38.52 41.04 40.66 43.32 42.80 45.60 44.94 47.88 47.08 50.16 49.22 52.44 51.36 54.72 53.50 57.00 55.64 59.28 57.78 61.56 59.92 63.84 62.06 | 66.12 64.20 ! 68.40 66.34 ; 70.68 68.48 72.96 70.62 : 75.24 — 77.52 .. j » i . .' 2.420. . - ^FiaatCefflpensattorr { 12.10 | 14.52 | 16.94 | 19.36 j 21.78 24.20 | 26.62 29.04 31.46 33.88 | 36.30 38.72 41.14 43.56 ! 45.98 1 48.40 50.82 53.24 55.66 58.08 j 60.50 | 62.92 i 65.34 i 67.76 i 70.18 : 72.60 75.02 ; 77.44 | 79.86 82.28 : 84.70 54 j.; : 2.560 1 12.80 1 15.36 | 17.92 I 20.48 i 23.04 i 25.60 i 28.16 i 30.72 j 33.28 | 35.84 1 38.40 40.96 43.52 46.08 48.64 51.20 53.76 56.32 58.88 61.44 64.00 66.56 69.12 71.68 74.24 76.80 79.36 81.92 84.48 87.04 89.60 90.00 max 2percent "50 \ 13.50 j I 16.20 | j 18.90 1 I 21.60 | i 24.30 i ! 27.00 i j 29.70 1 i 32.40 i ! 35.10 | 1 37.80 ! | 40.50 ! ! 43.20 ! ! 45.90 I 1 48.60 1 | 51.30 | ! 54.00 I ! 56.70 1 ' 59.40 j \ 62.10 | i 64.80 '• 1 67.50 i | 70.20 1 j 72.90 ! i 75.60 ; ! 78.30 ; : 81.00 83.70 86.40 89.10 90.00 max 90.00 max 90.00 max 90.00 max PERCENTAGE OF COMPENSATION | Years of Service j Percent,,, «f K.^T^^^Tf — I - -, crcentage_olLhaai-Compen.8at:ioiii c i , _ — _ ! i " ,•5 1 12.00 12.60 j 1370 i 7r --• — * i .J.^u ' 1! j - j. ! I ! 6 i 14.40 15 12 i iT'su ^ B^AU^^^^H i 3.80 f - f i±i± 1 15-84 | i6.56 1 7 \ 16-80 ! 17.64 i I848 1 —i •'! ' f 1920 : ' — 1 — i : 19;32 1 f ' 9-20 20:16 ! 21 . 12 j 22.08 9 I 21.60 . . 22.68 I 2576 ? 777;- - -, i J-.^. / O i //} O ni L ! •£ ••1 10 ! 24:°° 1 25:20 1 1 2^40 f 27 ! : U j 26:40 27.72 j 29:04 f 30 1 12 1 28:8° 30.24 3168 1 33 1 L3 1 31.20 32.76 3432 t ,,r - i. •n-J'f- | j514 3360 3S7S i •—" t - '.60 .36 .12 .88 ^^^^™*Y-_— i j 14.40 | 17.28 i I 20.16 | 23.04 | 25.92 | 28.80 31.68 34.56 37.44 f - ' 3±28 L 36.96 j 38.64 4() 15 i 36.00 37.80 ! 396o f 7T7,, ' : F r - : J.... JJ-ov , 41.40 i 43 20 i 16 j 38.40 40.32 j ^TJ f — | ™ ! ~ f ; - - - | I±2! 44-16 46.08 !7 i 40.80 i 42.84 44 ss 1 ~,~ >j I f.— ±"1 [ 44-88 i 46. . [ 18 i 43.20 45.36 j 4752 ; 49f I ! - i ' "^ 1).i 19 i 45.6o 47 HH i 7~":f -. ! .__ 4 4/-M8 ! 50.16 i 52 | 20 1 48.00 1 50.40 ] 5280 ' «"r — - t™ — - 4 s *fftj\/ : s H 21 1 1°:40 J 52:92 5144 1 57. 22 1 - 52:8°- 1 ^44 i - 58:08 f 60. 23 1 55.20 57 % rn7o- :i j ^ _ 60'72 63.4 24 ! 5760 60 48 7777 f " 92 6844 : | 20 i*r '2^23 f : | . ' 1 - ™:48 ! 63.36 | 66.24 j 1 25 i 60 00 > C3. rin j ^ " > i-1 - ! : — •• 1 63;00 ! 66-00 i 69.00 1 I 26 | 62.40 . I 6552" i 7«"7x f '~! ! : i — ~ 1 68'64 1 71.76 | 1 27 i 64f ° | 68.04 71.28 j 74'r i ! 28 1 fi7 9(1 . i -7ii s./- 1 " f '•'-• 2. j 1 1 67-20 1 70:56 | 73.92 i 77.28 j 29 i (^O <fl i -11 nr, i I i; ' i Oy.OU : /T OM i ~Jf C/" '•1 ; / ->.UO j /O.5C) : «H A; i : - 1 /vj.^/u ; OlJ.Ol | ! 30 j 72.00 ! 7560 i ~~ i f i • 1 ^U i 7)'20 l 82.80 ! 31 ! 74.40 ! 78.12 ! 8184 i ~ i^ 1 i * ! ' 84 ! 8 5 . 5 ( 32 : 76.80 ; «o 64 1 «x/«i [ _ 1 84;48 i 88.3i 33 i — i 83 16 1 »-? n : I i i ":.iC) 1 87-12 ! 90.00 rr34 ! i i : • • \ lax I ; : i 1 89'76 ! 90. 00 max i 35 : -_ | _ j ' i l ; 90.00 max i 48.96 51.84 54.72 57.60 60.48 i 63.36 | 66.24 1 69.12 | 72.00 | 74.88 j 77.76 I 80.64 1 !•- 83.52 j 86.40 j 89.28 ; 90.00 max 90.00 max 90.00 max i 90.00 max : 1 : • .3.000;-. ,;: ^H , _ i J 15.00 1 ) 18.00 j i 21.00 j j 24.00 I j 27-°° i I 30.00 ) 1 33.00 j j 36.00 i 1 39.00 j | 42.00 i ) 45.00 1 1 48.00 j ' 51.00 j 54.00 J 57.00 | 60.00 j 63.00 j 66.00 | 69.00 | 72.00 I 75.00 ! 78.00 j 81.00 | 84.00 1 87.00 ! 90.00 max ! 90.00 max ! I 90.00 max 90.00 max , 90.00 max 90.00 max ! 5 - 7 3 7 7 | | www.calpers.ca go v PERCENTAGE OF FINAL COMPENSATION K Age 50 51 At Factor.]:. ..3.000: ; .' ; - 3.000 \ ! mam 3.000 : 53 j 54 j : : 3-000: V: !,:: 3.000 i'" 55+ .•• 3.000: ,• j Years of Service Percentage of Final Compensation — ' •5 15.00 | 15.00 6 18.00 | 18.00 - 7 8 9 10 11 ~ 12 13 14 15 16 17 18 19 20 21 22 21.00 24.00 27.00 30.00 33.00 •• — ~ " " 36.00 39.00 42.00 45.00 48.00 51.00 54.00 57.00 21.00 24.00 27.00 " " 30.00 33.00 ~ " ' 36.00 39.00 42.00 45.00 48.00 51.00 54.00 57.00 60.00 | 60.00 63.00 1 63.00 66.00 23 | 69.00 24 i 72.00 25 1 75.00 26 | 78.00 i 27 81.00 28 i 84.00 29 i 87.00 66.00 69.00 72.00 75.00 78.00 j 81.00 84.00 87.00 30 90.00 max i 90.00 max j 15.00 18.00 - 21.00 24.00 27.00 30.00 33.00 - 36.00 39.00 42.00 45.00 48.00 51.00 54.00 j 57.00 ! 60.00 I 15.00 | 15.00 | 18.00 i 18.00 I 21.00 | 21.00 i 24.00 | 24.00 | 27,00 j 27.00 | 30.00 | 30.00 1 33.00 j 33.00 - f i. 36.00 | 36.00 | 39.00 | 39.00 | 42.00 45.00 48.00 51.00 54.00 57.00 60.00 63.00 63.00 66.00 69.00 72.00 75.00 78.00 - - - 81.00 84.00 | 87.00 90.00 max 66.00 69.00 42.00 | 45.00 | 48.00 i ; 51.00 | 54.00 | 57.00 i 60.00 1 63.00 66.00 | 69.00 | 72.00 | 72.00 | 75.00 | 75.00 | 78.00 i 78.00 f- L 81.00 | 81.00 84.00 1 84.00 j 87.00 1 87.00 90. 00 max i 90.00 max : 15.00 1 18.00 ! 21.00 ! 24.00 1 27.00 j 30.00 ; 33.00 1 _ ; 36.00 i 39.00 1- i 42.00 | 45.00 48.00 51.00 | 54.00 | 57.00 I 60.00 j 63.00 | 66.00 1 69.00 i 72.00 1 75.00 1 78.00 i j 81.00 ; 84.00 ! 87.00 90.00 max ^ Lisa Hildabrand All Receive-Agenda Item # \ For the Information of the- Subject:FW: Pension question Asst. City Manager Also, attached are other information requests regarding our pension plans. This information was previously distributed to the City Council. From: Julie Clark Sent: Tuesday, February 23, 2010 10:14 AM To: Lisa Hildabrand Subject: Pension question One of the City Council members had a question this morning regarding how many years following retirement a typical retiree collects a pension benefit. According to John Bartel, it is generally assumed that a safety employee will collect a pension for 25 to 30 years after retirement while a miscellaneous employee will collect a pension for 20 to 25 years following retirement. This is based on a general assumption that men will live to age 80 and women to age 85. FPR C'TY OF CARLSBAD CITY CLERK'S OFFICE 3.0% 2.5% -S 2.0% 1.5% 1.0% Pension Benefit Comparison - Safety Avg. Carlsbad Safety Retiree Final salary = $91,000 Total years of service = 28 Retirement age = 55 --•o- 2% @ 50 3% @ 50 u ii u it m m m m m -m — • As >! ^,,^T X> ' 0 O o Sample Benefit at Age >= 55 ^^^^^Js^-&i^l^^i^K3Ls»^Jf9^i:^^»'<^^^ ' . ... . x $9J,000 = $76,440 50 51 52 53 54 55 56 57 58 59 60 Retirement Age 11 City of Carlsbad Data as of 6/30/09' Police Safety Fire Safety Misc. Current Benefit Formula 3%@50 3%@50 3%@60 Effective Date of Benefit Formula 6/30/2001 12/23/2003 1/1/2005 Number of Retirees Under the Current Benefit Formula 19 26 74 Average Retirement Age 54 55 58 Average Years of Service with Carlsbad 26 27 21 Average Current CalPERS Retirement Annuity $ 86,985 $ 82,619 $ 55,583 Average CalPERS Retirement Annuity as Percent of Final Base Salary 92% 93% 68% ESTIMATE OF "WHAT IF 3-YEAR FINAL AVERAGE SALARY WAS USED" (vs single highest year salary) Police Fire Misc. $ $ $ 78,392 73,968 51,185 83% 84% 63% NOTES: 1) The average CalPERS annuity for Safety is higher than the 90% cap primarily because the EPMC (8% of salary) is reported as "persable" wages. Therefore, the retirement benefit is based on a numberthat is 8% higherthan the base salary. 2) The average years of service shown does not reflect service with another CalPERS agency or additional service credit purchased by an employee (ex. military service, airtime etc.). Therefore, it does not reflect the average years of service that was used to calculate the retirement annuities. *Excludes disability retirements where the retiree was under age 50 at the time of retirement Examples -Actual Retirees (2005-2009) with the Highest Retirement Benefit per Type of Job Actual CalPERS Actual Retirement Final Base Retirement Annuity as Percent of Police Fire Misc. Type of Job Upper Mgt. (Chief or Captain) Middle Mgt. (Lieutenant or Sergeant) Non-mgt. (Corporal or Officer) Upper Mgt. (Chief or Division Chief) Middle Mgt. (Battalion Chief or Captain) Non-mgt. (Engineer or Paramedic Firefighter) Upper Mgt. (Department Head) Middle Mgt. (ex. Construction Manager, Sr. Analyst) Non-mgt. Paraprofessional (ex. Accountant, Engineer) Non-mgt. Other (ex. Maintenance Worker, Secretary) $ $ $ $ $ $ $ $ $ Salary 130,197 98,703 68,268 N/A 123,791 68,494 134,241 82,600 69,747 52,681 Annuity1 Final Base Salary $ $ $ $ $ $ $ $ $ 123,200 103,118 68,757 N/A 123,907 71,168 131,440 101,873 44,213 51,937 95% 104% 101% N/A 100% 104% 98% 123% 63% 99% : Annuity upon retirement; does not include cost of living adjustments to annuity since retirement date 21