Biennial Actuarial Report Issued!
Ed Koebel, Managing Partner, of our new actuary Cavanaugh Macdonald Consulting, LLC., presented the report at the March 18th meeting of the Board of Trustees. He explained terms and ramifications and answered questions from the Board. This was an especially important presentation for our Board in that Cavanaugh Macdonald is new to us, and we have two (2) new members on the Board. Regarding the report, there is good news and not so good news. The good news is that, overall, we are in much better condition than we were at the last valuation, which was taken as of July 1, 2009. That was the depths of the meltdown. Then we were 66% funded and had an unfunded liability of $454 million. The July 1, 2011 valuation shows that we are 76.4% funded, with an unfunded liability of $191 million. That is a vast improvement. Of note, our benefit payments are $33 million. Our actuarial Annual Required Contribution (ARC) is $30 million. Our employer + employee contribution (tax + dues revenue) is $26 million. We are not meeting our funding requirements, which is what we tried to tell the Senators as we sought a dues increase this winter.