San Dieguito Water District Pension

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ACalPERSOctober 2011

California Public Employees' Retirement SystemActuarial OfficeP.O. Box 942701Sacramento, CA 94229-2701TIY: (916) 795-3240(888) 225-7377 phone. (916) 795-2744 faxwww.calpers.ca.gov

MISCELLANEOUS PLAN OF THE SAN DIEGUITO WATER DISTRICT (EMPLOYER # 628)Annual Valuation Report as of June 30, 2010Dear Employer,Enclosed please find a copy of the June 30, 2010 actuarial valuation report of your pension plan. Since your plan hadless than 100 active members in at least one valuation since June 30, 2003, it is required to participate in a risk pool.The following valuation report has been separated into two Sections: Section 1 contains specific information for your plan, including the development of your pooled employercontribution rate, and Section 2 contains the Risk Pool Actuarial Valuation appropriate to your plan, as of June 30, 2010.This report contains important actuarial information about your pension plan at CaIPERS. Your CaIPERS staff actuaryis available to discuss the actuarial report with you.

Changes Since the Prior ValuationA temporary modification to our method of determining the actuarial value of assets and amortizing gains and losseswas implemented for the valuations as of June 30, 2009 through June 30, 2011. The effect of those modificationscontinue in this valuation.There may also be changes specific to your plan such as contract amendments and funding changes.Future Contribution RatesThe exhibit below displays the required employer contribution rate and Superfunded status for 2012/2013 along withan estimate of the contribution rate and Superfunded status for 2013/2014. The estimated rate for 2013/2014 isbased on a projection of the most recent information we have available, including an estimate of the investmentreturn for fiscal 2010/2011, namely 20.0%. See Section 2 Appendix E, "Investment Return Sensitivity Analysis", forincrease in 2014/2015 rate projections under a variety of investment return scenarios for the Risk Pool's portion ofyour rate. Please disregard any projections that we may have provided to you in the past.

Fiscal Year2012/20132013/2014

Employer Contribution Rate16.081%

16.3% (projected)Superfunded?

NoNo

Member contributions (whether paid by the employer or the employee) are in addition to the above rates.


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MISCELLANEOUS PLAN OF THE SAN DIEGUITO WATER DISTRICT (EMPLOYER # 628)October 2011Page 2

The estimate for 2013/2014 assumes that there are no amendments and no liability gains or losses (such as largerthan expected pay increases, more retirements than expected, etc.). This is a very important assumptionbecause these gains and losses do occur and can have a significant effect on your contribution rate.Even for the largest plans, such gains and losses can impact the employer's contribution rate by one or two percentor even more in some less common instances. These gains and losses cannot be predicted in advance so theprojected employer contribution rate for 2013/2014 is just an estimate. Your actual rate for 2013/2014 will beprovided in next year's report.I f you have questions, please call (888) CaIPERS (225-7377). In the interest of allowing us to give every publicagency their result, we ask that, if at all possible, you wait until after October 31 to contact us with questions.

Sincerely,

I L # - -ALAN MILUGAN, MAAA, FCA, FSA, FOAChief Actuary


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ACalPERSActuarial Valuation

as ofJune 30, 2010The MISCELLANEOUS PLAN

of theSAN DIEGUITO WATER DISTRICT(Employer# 628)Required ContributionsFor Fiscal Year

July 1, 2012 -June 30, 2013


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TABLE OF CONTENTS

SECTION 1 - PLAN SPECIFIC INFORMATION

SECTION 2 - RISK POOL ACTUARIAL VALUATION INFORMATION

FIN PROCESS CONTROL ID Ccy): 369236 FIN PROCESS CONTROL ID CPy): 346124 REPORT ID: 66115


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Section 1CALIFORNIA PUBLIC EMP LO Y EES ' R ETI R EM ENT SYSTEM

Plan Specific Infonnation forThe MISCELLANEOUS PLANof the SAN DIEGUITO WATERDISTRICT

(Employer# 628)(Rate Plan #686)


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Table of ContentsACTUARIAL CERTIFICATION 1

PURPOSE OF SECTION 1 3

REQUIRED EMPLOYER CONTRIBUTIONS 3

PROJECTED CONTRIBUTIONS 4

RATE VOLATILITY 4

EMPLOYER SIDE FUND 4

SUPERFUNDED STATUS 5

SUMMARY OF PARTICIPANT DATA 5

LIST OF CLASS 1 BENEFIT PROVISIONS 6

INFORMATION FOR COMPLIANCE WITH GASB STATEMENT NO. 27 6

SUMMARY OF MAJOR BENEFIT OPTIONS 7


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Actuarial CertificationSection 1 of this report is based on the member and financial data as of June 3D, 2010 provided by youragency and contained in our records, and the benefit provisions under your contract with CaIPERS. Section2 of this report is based on the member and financial data as of June 3D, 2010 provided by employersparticipating in the risk pool and contained in our records, and benefit provisions under the CaIPERScontracts for those agencies participating in the risk pool.As set forth in Section 2 of this report, the Pool Actuary has certified that, in her opinion, the valuation ofthe Risk Pool containing your MISCELLANEOUS PLAN has been performed in accordance with generallyaccepted actuarial principles consistent with standards of practice prescribed by the Actuarial StandardsBoard, and that the assumptions and methods are internally consistent and reasonable for the Risk Pool, asprescribed by the CaIPERS Board of Administration according to provisions set forth in the California PublicEmployees' Retirement Law.Having relied upon the information set forth in Section 2 of this report and based on the census and benefitprovision information for your plan, it is my opinion as your Plan Actuary that the Side Fund as of June 30,2010 and employer contribution rate as of July 1, 2012, have been properly and accurately determined in.accordance with the principles and standards stated above.The undersigned is an actuary for CaIPERS and a member of both the American Academy of Actuaries andSociety of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to renderthe actuarial opinion contained herein.

NANCY E. CAMPBELL, ASA, MAAAEnrolled ActuarySupervising Pension Actuary, CaIPERSPlan Actuary

CaIPERS Actuarial Valuation - June 3D, 2010Rate Plan belonging to Miscellaneous 2.7% at 55 Risk Pool Page 1


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Purpose of Section 1Section 1 of this report was prepared by the Plan Actuary in order to:

Certify that the actuarially required employer contribution rate of the MISCELLANEOUS PLAN of theSAN DIEGUITO WATER DISTRICT for the fiscal year July 1, 2012 through June 30, 2013 is16.081%; Set forth the plan's Employer Side Fund as of June 30, 2010; Provide pension information as of June 30, 2010 to be used in financial reports subject toGovernmental Accounting Standards Board (GAS B) Statement Number 27.

This section was prepared in order to provide actuarial information as of June 30, 2010 to the calPERSBoard of Administration and other interested partiesThe use of this report for any other purposes may be inappropriate. In particular, this report does notcontain information applicable to termination or alternative benefit costs. The employer should contact theiractuary before disseminating any portion of this report for any reason that is not explicitly described above.

Required Employer ContributionsFiscal Year Fiscal Year2011/2012 2012/2013

Employer Contribution Required (in Projected Dollars). Risk Pool's Net Employer Normal Cost $ 109,478 $ 89,957Risk Pool's Payment on Amortization Bases 46,794 40,954Surcharge for Class 1 Benefits

a)FAC 1 7,186 5,885Phase out of Normal Cost Difference 0 0Amortization of Side Fund 0 8,140Total Employer Contribution $ 163,458 $ 144,936Annual Lump Sum Prepayment Option* $ 157,470 $ 139,626

Projected Payroll for the Contribution Fiscal Year $ 1,107,290 $ 901,284Employer Contribution Required (Percentage of Payroll)

Risk Pool's Net Employer Normal Cost 9.887% 9.981%Risk Pool's Payment on Amortization Bases 4.226% 4.544%Surcharge for Class 1 Benefits

a) FAC 1 0.649% 0.653%Phase out of Normal Cost Difference 0.000% 0.000%Amortization of Side Fund 0.000% 0.903%Total Employer Contribution 14.762% 16.081%

Appendix C of Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges foreach benefit.Risk pooling was implemented as of June 30, 2003. The normal cost difference was scheduled to be phasedout over a five year period. The phase out of normal cost difference began at 100% for the first year, andwas incrementally reduced by 20% of the original normal cost difference for each subsequent year.*Payment must be received by calPERS before the first payroll of the new fiscal year and after June 30.

calPERS Actuarial Valuation - June 30, 2010 Page 3Rate Plan belonging to Miscellaneous 2.7% at 55 Risk Pool


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Projected ContributionsThe rate shown below is an estimate for the employer contribution for Fiscal Year 2013/2014. Theestimated rate is based on a projection of the most recent information we have available, including anestimate of the investment return for fiscal year 2010/2011, namely 20.0%:Projected Employer Contribution Rate: 16.3%The estimate also assumes that there are no liability gains or losses among the plans in your risk pool, thatyour plan has no new amendments in the next year, and that your plan's and your risk pool's payrolls bothincrease exactly 3.25% in the 2010/2011 fiscal year. Therefore, the projected employer contribution ratefor 2013/2014 is just an estimate. Your actual rate for 2013/2014 will be provided in next year's report.

Rate VolatilityYour plan's employer contribution rate will ineVitably fluctuate, for many reasons. However, the biggestfluctuations are generally due to changes in the side fund rate resulting from unexpected changes in payrolLThe following figure shows how much your 2013/2014 rate would change for each 1% deviation betweenour 3.25% payroll growth assumption and your actual 2010/2011 payroll growth.

POTENTIAL 2013/2014 RATE IMPACTFROM 2010/2011 PAYROll DEVIATION

0/ 0 Rate Change per 1% Deviation from Assumed 3.250/0 Payroll Growth: (0.009%)Examples: To see how your employer contribution rate might be affected by unexpected payroll change,suppose the following: The % Rate Change per 1% Deviation figure given above is -0.400% Your plan's payroll increased 10% in 2010/2011 (6.75% more than our 3.25% assumption).Then your 2013/2014 rate would decrease -0.400% x (10 - 3.25) = -2.70% from that cause alone.Or conversely, using the same % Rate Change per 1% Deviation figure given above, suppose your plan'spayroll remained the same in 2010/2011 (3.25% less than our 3.25% assumption).Then your 2013/2014 rate would increase -0.400% x (0 - 3.25) = 1.3% from that cause alone.Note that if your plan had a negative side fund, an unexpected payroll increase would spread the payback ofthe negative side fund over a bigger payroll, which would decrease your plan's side fund percentage rateand the total employer contribution rate. On the other hand, if your plan had a positive side fund, anunexpected payroll increase would spread the payback of the positive side fund over a larger payroll, whichwould increase your plan's side fund percentage rate and the total employer contribution rate. In eithercase, the Side Fund dollar amount would not change.

Employer Side FundAt the time of joining a risk pool, a side fund was created to account for the difference between the fundedstatus of the pool and the funded status of your plan. The side fund for your plan as of the June 30, 2010valuation is shown in the following table.Your side fund will be credited, on an annual basis, with the actuarial investment return assumption. Thisassumption is currently 7.75%. A positive side fund will cause your required employer contribution rate to

CaIPERS Actuarial Valuation - June 30, 2010 Page 4Rate Plan belonging to Miscellaneous 2.7% at 55 Risk Pool


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be reduced by the Amortization of Side Fund shown above in Required Employer Contributions. A negativeside fund will cause your required employer contribution rate to be increased by the Amortization of SideFund. In the absence of subsequent contract amendments or funding changes, the side fund will disappearat the end of the amortization period shown below.

Employer Side Fund ReconciliationJune 30, 2009 June 30, 2010

Side Fund as of valuation date* $ 0 $ (92,825)Adjustments 0 0Side Fund Payment 0 0Side Fund one year later $ 0 $ (100,019)Adjustments 0 0Side Fund Payment 0 0Side Fund two years later $ 0 $ (107,770)Amortization Period 0 20Side Fund Payment during last year $ 0 $ 8,140

* I f your agency employed vouchers in fiscal year 2009/2010 to pay employee contributions, the June 30,2010 Side Fund amount has been adjusted by a like amount without any further adjustment to the SideFund's amortization period. Similarly, the Side Fund has been adjusted for the increase in liability from anyrecently adopted Class 1 or Class 2 contract amendments. Also, the Side Fund may be adjusted oreliminated due to recent lump sum payments. Contract amendments and lump sum payments may result inan adjustment to the Side Fund amortization period.

Superfunded StatusIs the plan Superfunded?[Yes if Assets exceed PVB, No otherwise]

Summary of Participant Data

June 30, 2009No

June 30, 2010No

The table below shows a summary of your plan's member data upon which this valuation is based:

Projected Payroll for Contribution PurposesNumber of Members

ActiveTransferredSeparatedRetired

CaIPERS Actuarial Valuation - June 30, 2010Rate Plan belonging to Miscellaneous 2.7% at 55 Risk Pool

June 30, 2009$ 1,107,290

1321

25

June 30, 2010$ 901,284

1021

27

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List of Class 1 Benefit Provisions One Year Final Compensation

Information for Compliance with GASB Statement No. 27for Cost-Sharing Multiple-Employer Defined Benefit PlanYour plan is part of the Miscellaneous 2.7% at 55 Risk Pool, a cost-sharing multiple-employer defined benefitplan. Under GASB 27, an employer should recognize annual pension expenditures/expense equal to itscontractually required contributions to the plan. Pension liabilities and assets result from the differencebetween contributions required and contributions made. The contractually required contribution for theperiod July 1, 2012 to June 30, 2013 has been determined by an actuarial valuation of the plan as of June30, 2010. Your contribution rate for the indicated period is 16.081% of payroll. In order to calculate thedollar value of the contractually required contributions for inclusion in financial statements prepared as ofJune 30, 2013, this contribution rate, as modified by any subsequent finanCing changes or contractamendments for the year, would be multiplied by the payroll of covered employees that was actually paidduring the period July 1, 2012 to June 30, 2013. However, if this contribution is fully prepaid in a lump sum,then the dollar value of contractually required contributions is equal to the lump sum prepayment. Theemployer and the employer's auditor are responsible for determining the contractually required contributions.Further, the required contributions in dollars and the percentage of that amount contributed for the currentyear and each of the two preceding years is to be disclosed under GASB 27.A summary of prinCipal assumptions and methods used to determine the contractually requiredcontributions is shown below for the cost-sharing multiple-employer defined benefit plan.Valuation DateActuarial Cost MethodAmortization MethodAverage Remaining PeriodAsset Valuation MethodActuarial AssumptionsInvestment Rate of ReturnProjected Salary IncreasesInflationPayroll GrowthIndividual Salary Growth

June 30, 2010Entry Age Normal Cost MethodLevel Percent of Payroll19 Years as of the Valuation Date15 Year Smoothed Market7.75% (net of administrative expenses)3.55% to 14.45% depending on Age, Service, and type of employment3.00%3.25%A merit scale varying by duration of employment coupled with anassumed annual inflation growth of 3.00% and an annual productiongrowth of 0.25%.

Complete information on assumptions and methods is provided in Appendix A of Section 2 of the report.Appendix B of Section 2 of the report contains a description of benefits included in the Risk Pool ActuarialValuation.A Schedule of Funding for the Risk Pool's actuarial value of assets, accrued liability, their relationship, andthe relationship of the unfunded liability (UL) to payroll for the risk pool(s) to which your plan belongs canbe found in Section 2 of the report.

CaIPERS Actuarial Valuation - June 30, 2010 Page 6Rate Plan belonging to Miscellaneous 2.7% at 55 Risk Pool


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' 1 l ~ ~ r f i j ' R ' i i ! " P i ! J ( I i ~ P Y 6 f l < : ' H l F l l R ~ ~ l f o i l l f ~ ~ ! , ~ ~ $ G " ~ R 1 b l S 1 i i ! ! l E T C , . , ...

Summary of Major Benefit OptionsShown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisionsis in Appendix B within Section 2 of this report.

Coverage Group70003 70001*

Benef it ProvisionBenefit Formula 2.7%@ 55 2.0%@ 55Social Security Coverage no noFull/Modified full fullFinal Average Com pensation Period 12 mos. 12 mos.Sick Leave Credit yes yesNon-Industrial Disability standard standardIndustrial Disability no noPre-Retirement Death BenefitsOptional Settlement 2W yes yes1959 Survivor Benefit Level level 3 level 3Special no noAlternate (firefighters) no noPost-Retirement Death BenefitsLump Sum $500 $500Survivor Allowance (PRSA) no noCOLA 2% 2%Employee ContributionsContractual employer paid no no'---_Contractu_al ElIlplQyeE! Cost sharing 0% 0%

*Inactive Coverage Group

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C A LI FO R N I A PU B LI C EMPLOYEES ' RETIREMENT SYSTEM

iscellaneous 70/0asof ne

55,2010


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ACTUARIAL CERTIFICATION

HIGHUGHTS AND EXECUTIVE SUMMARYPurpose of Section 2Risk Pool's Required Employer ContributionRisk Pool's Required Base Employer RateFunded Status of the Risk PoolCost and VolatilityChanges Since the Prior ValuationSubsequent Events

SUMMARY OF UABIUTIES AND RATESDevelopment of Pool's Accrued and Unfunded Liabilities(Gain)/Loss Analysis 06/30/09 - 06/30/10Schedule of Amortization Bases for the Risk PoolDevelopment of Risk Pool's Annual Required Base ContributionPool's Employer Contribution Rate HistoryFunding History

SUMMARY OF ASSETSReconciliation of the Market Value of AssetsDevelopment of the Actuarial Value of AssetsAsset AllocationcalPERS History of Investment Returns

SUMMARY OF PARTICIPANT DATASource of the Participant DataData Validation Tests and AdjustmentsSummary of Valuation Data. Active MembersTransferred and Terminated MembersRetired Members and Beneficiaries

APPENDIX AStatement of Actuarial Data, Methods and AssumptionsAPPENDIX BSummary of Principal Plan ProvisionsAPPENDIX C

Classification of Optional BenefitsExample of Individual Agency's Rate calculationDistribution of Class 1 BenefitsAPPENDIX DList of Participating EmployersAPPENDIX EInvestment Return Sensitivity AnalysisAPPENDIX FGlossary of Actuarial Terms

Risk Pool Valuation Job !D: 392

1

5556677

111213141515

19192021

232324252627


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ACTUARIAL CERTIFICAnON

Actuarial Certif ication

To the best of my knowledge, Section 2 of this report is complete and accurate and contains sufficientinformation to disclose, fully and fairly, the funded condition of the Miscellaneous 2.7% at 55 Risk Pool. Thisvaluation is based on the member and financial data as of June 3D, 2010 provided by the various CalPERSdatabases and the benefits under this Risk Pool with CalPERS as of the date this report was produced. I t ismy opinion that the valuation has been performed in accordance with generally accepted actuarialprinciples, in accordance with standards of practice prescribed by the Actuarial Standards Board, and thatthe assumptions and methods are internally consistent and reasonable for this risk pool, as prescribed bythe CaIPERS Board of Administration according to provisions set forth in the California Public Employees'Retirement Law.The undersigned is an actuary for CaIPERS. She is a member of the American Academy of Actuaries andthe Society of Actuaries and meets the Qualification Standards of the American Academy of Actuaries torender the actuarial opinion contained herein.

SHELLY CHU, ASA, MAAAAssociate Pension Actuary, CalPERSPool Actuary

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HIGHLIGHTS AND EXECUTIVE SUMMARY PURPOSE OF SECTION 2

RISK poOL's REQUIRED EMPLOYER CONTRIBUTION RISK POOL'S REQUIRED BASE EMP LOYER RATE FUNDED STATUS OF TH E RISK POOL COST AND VOLATILITY CHANGES SINCE THE PRIOR VALUATION SUBSEQUENT EVENTS


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: . ~ ~ . ~ H L ~ ~ ~ ; ~ ~ N D : E X E C U T . I V ~ . ' ~ ' l J ~ ~ ~ ~ Y 'i:jl,>:,;>."." , : . ~ . ! : ~ , ) . ~ : :".:':' . C ....Schedule of Amortization Bases for the Risk PoolThe schedule below shows the development of the payment on the Pool's amortization bases used to determine the Total Required Employer Contributions to thePool. Each row of the schedule gives a brief description of a base (or portion of the Unfunded Actuarial Liability), the balance of the base on the valuation date,and the number of years remaining in the amortization period. In addition, we show the expected payments for the two years immediately following the valuationdate, the balances on the dates a year and two years after the valuation date, and the scheduled payment for fiscal year 2012-2013. Please refer to Appendix Afor an explanation of how amortization periods are determined.

Reason fo r Base2004 FRESH START2005 (GAIN)/LOSS2005 PAYMENT (GAIN)/LOSS2009 ASSUMPTION CHANGE2009 SPECIAL (GAIN)/LOSS2010 SPECIAL (GAIN)/LOSSTotal

AmortizationPeriod243030192930

Scheduled PaymentBalance on Expected ' Balance Expected Balance Payment for a percentJune 301 2010 P a ~ m e n t 10-11 June 301 2011 P a ~ m e n t 11-12 June 30, 2012 2012-2013 of ~ a ~ r o$14,356,357 $928,676 $14,504,984 $958,858 $14,633,800 $990,021 0.207%$108,185,794 $6,496,661 $109,826,484 $6,595,188 $111,492,054 $6,695,207 1.401 %$(12,208,965) $(5,929,954) $(6,999,708) $(136,317) $(7,400,685) $(444,418) (0.093%$111,089,795 $(849,145) $120,580,690 $9,107,599 $120,471,760 $9,403,596 1.968%$70,394,008 $0 $75,849,544 $4,554,839 $76,999,838 $4,702,871 0.984%$5.165,481 1Q $5,565,806 1Q $5,997,156 $360,135 0 .075%

$ 2 9 6 , 9 8 2 , 4 7 0 _ $ 6 ~ 6 , : z 3 ~ ~ ~ 1 1 J , 3 2 7 & 0 0 _ _ fi21&!J0,167 $322,193,923 $21,707,412 4.544%The speCial (gain)/Ioss bases are special bases established for the gain/loss that is recognized in the 2009, 2010, and 2011 annual valuations. Unlike the gain/lossoccurring in previous and subsequent years, the gain/loss recognized in the 2009, 2010, and 2011 annual valuations will be amortized over fixed and declining 30 yearperiods so that these annual gain/losses will be fully paid off in 30 years.

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;. ; ' r ~ ; " : " " . ~ ... ;> ~ > " . \ ....: . ' ~ .. '.S l . J ~ i . " ~ ~ R y ' O F L I A B I L I T Y A N D RATES';t-i/'i( ... ,.";'

..


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.:: ""; .' ::i,) .. .... ::,' : . / ..>' " / .",c : s u M M A R Y ( ) i = L I A B I L I ' T Y : : i ~ D R A T E s

' ~ ' : ' : ~ ; ~ ' : " : ; ~ ; , : . ' , ' ' : ' " "; :;;.:~ . " , , . ,/


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SUMMARYOF ASSETS RECONCILIATION OF THE MARKET VALUE OF ASSETS

DEVELOPMENT OF THE ACTUARIAL VALUE OF ASSETS

ASSET ALLOCATION

CALPERS HISTORY OF INVESTMENT RETURNS


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~ : ~ ~ M ' ~ A , ~ , ~ : ~ ~ ~ ~ S E T S .'- ' < ; ~ \ ! " -,.-;-:Reconcil iat ion of the Market Value of Assets1. Market Value of Assets as ofJune 30, 2009 Including Receivables $ 1,224,530,0922. Receivables for Service Buybacks as of June 30, 2009 6,442,2573. Market Value of Assets as of June 30, 2009 [1 - 2] 1,218,087,8354. Employer Contributions 72,122,5175. Employee Contributions 42,378,0346. Benefit Payments to Retirees and Beneficiaries (74,782,215)7. Refunds (1,600,482)8. Lump Sum Payments (382,371)9. Transfers and Miscellaneous Adjustments (767,336)10. I n v e s t m ~ n t Return 176172160211. Market Value of Assets as of June 30, 2010 (w/o Pool Transfers) $ 1,431,128,58412. Transfers into and out of the Risk Pool 11113116113. Market Value of Assets as of June 30, 2010 $ 1,432,241,74514. Receivables for Service Buybacks as of June 30,2010 5,776,36815. Market Value of Assets as of June 30, 2010 Including Receivables [13 + 14] 1,438,018,113

Developn:aent of the Actuarial Value of Assets1. Actuarial Value of Assets as of June 30, 2009 Used for Rate Setting Purposes2. Receivables for Service Buyback as of June 30, 20093. Actuarial Value of Assets as of June 30 j 2009 [1 - 2]4. Employer Contributions5. Employee Contributions6. Benefit Payments to Retirees and Beneficiaries7. Refunds8. Lump Sum Payments9. Transfers and Miscellaneous Adjustments10. Expected Investment Income at 7.75%11. Expected Actuarial Value of Assets (w/o Pool Transfers)12. Market Valueof Assets June 30, 2010 (w/o Pool Transfers)13. Preliminary Actuarial Valueof Assets (w/o Pool Transfers) [(11) + 12) - (11 I 15]

1,674,260,3026,442,257

1,667,818,04572,122,51742,378,034

(74,782,215)(1,600,482)

(382,371)(767,336)

1301661 1685$ 1,835,447,8771,431,128,5841,808,493,257

14. Preliminary Actuarial Value to MarketValue Ratio 126.37%15. Final Actuarial Value to Market Value Ratio (minimum 70%, maximum 130%) 126.37%16. Market Value of Assets June 30, 2010 1,432,241,74517. Actuarial Valueof Assets as of June 30, 2010 1,809,895,24818. Receivables for Service Buybacks as of June 30,2010 5,776,36819. Actuarial Value of Assets as of June 30, 2010 Used for Rate Setting Purposes [17 + 18] 1,815,671,616

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Asset AllocationCalPERS follows a strategic asset allocation policy that identifies the percentage of funds to be invested ineach asset class. The current target allocation was adopted by the Board in December 2010The asset allocation and market value of assets shown below reflect the values of the Public EmployeesRetirement Fund (PERF) in its entirely as of June 30, 2010. The assets for Miscellaneous 2.7% at 55 RiskPool are part of the Public Employees Retirement Fund (PERF) and are invested accordingly.

(A)Asset ClasS1) Short-term Investments2) Total Global Rxed Income3) Total Equities4) Inflation Linked (HAC)5) Total Real Estate6) Alternative Investments

Total Fund

(B)Market Value. ($ Billion)

9.353.491.9

5.015.228.7

203.51

14.1%Alternative

2.5% HAC

45.1% TotalEquites

(C)CurrentAllocation4.6%

26.2%45.1%2.5%7.5%

14.1%100.0%

4.6% Short-termInvestments

(D)Current

26.2% FixedIncome

Target4.0%

16.0%49.0%

4.0%13.0%14.0%

100.0%

1 Differences between investment values above and the values on the Summary of Investments onpage 23 of the Comprehensive Annual Financial Report (Year Ended June 30, 2010) are due todifferences in reporting methods. The Summary of Investments includes Net InvestmentReceivables/Payables.

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CalPERS 20 .Year History of Investment ReturnsThe following is a chart with historical annual returns of the Public Employees Retirement Fund for eachfiscal year ending on June 30. Beginning with June 30, 2002 the figures are reported as gross of fees.

25.0% N ,..0P "if. .20.0% '" !-'W ~ ' < '-"*- r-15.0%10.0% f ..- 1--_ . . .- - !-L[ - - '-5.0% - - - --.0%

92 93 94 95 96 97 98..5.0%

-10.0%

-15.0%

-20.0%

-25.0%

(aIPERS Actuarial Valuation - June 30, 2010Miscellaneous 2.7% at 55 Risk Pool

'- -

--

99

!-'

P,:; .....E *,-- ......... ...._ 1-" , .....0" - - I- - -.i--- f - : ; ; ~ - - >-- '-1= Ir -00 q 03 04 05 06 07 10H

rv,

.:.r - - -N " ' ~ * c---"--, - -

21


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SUMMARYOF PARTICIPANT DATA SOURCE OF THE PARTICIPANT DATA

DATA VALIDATION TESTS AND ADJUSTMENTS

SUMMARY OF VALUATION DATA

ACTIVE MEMBERS

TRANSFERRED AND TERMINATED MEMBERS

RETIRED MEMBERS AND BEN EFICIARIES


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; S U ~ ~ i R Y ; O ~ ! ; ~ I J ~ I C I ~ ~ ~ : r t r ) ~ r t A " ~ " /. ,"

Source of the Participant DataThe data was extracted from various databases within CaIPERS and placed in a database by a series ofextract programs. Included in this data are:

individual member and beneficiary information, employment and payroll information, accumulated contributions with interest, service information, benefit payment information, information about the various organizations which contract with CaIPERS, and detailed information about the plan provisions applicable to each group of members.

Data Validation Tests and AdjustmentsOnce the information is extracted from the various computer systems into the database, update queries arethen run against this data to correct for flaws found in the data. This part of the process is intended tovalidate the participant data for all CaIPERS plans. The data is then checked for reasonableness andconsistency with data from the prior valuation.Checks on the data include:

a reconciliation of the membership of the plans, comparisons of various member statistics (average attained age, average entry age, averagesalary, etc.) for each plan with those from the prior valuation, comparisons of pension amounts for each retiree and beneficiary receiving payments with thosefrom the prior valuation, checks for invalid ages and dates, and reasonableness checks on various key data elements such as service and salary.As a result of the tests on the data, a number of adjustments were determined to be necessary. Theseincluded:

dates of hire and dates of entry were adjusted where necessary to be consistent with the servicefields, the date of birth and each other. .

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SummarJ of Valuation DataJune 30, 2009 . June 30, 2010

1. Number of Plans in the Risk Pool 178 1812. Active Members

a) Counts 6,856 6,654b) Average Attained Age 44.69 45.02c) Average Entry Age on Rate Plan 36.47 36.35d) Average Years of Service 8.22 8.67e) Average Annual Covered Pay $ 64,188 $ 65,227f) Annual Covered Payroll $ 440,071,499 $ 434,023,381g) Projected Annual Payroll for Contribution Year $ 484,388,054 $ 477,730,871h) Present Value of Future Payroll $ 3,479,389,232 $ 3,408,218,497

3. Transferred Membersa) Counts 2,764 2,613b) Average Attained Age 46.55 46.84c) Average Years of Service 3.82 3.74d) Average Annual Covered Pay $ 81,848 $ 83,066

4. Terminated Membersa) Counts 2,568 2,686b) Average Attained Age 43.75 44.30c) Average Years of Service 2.83 2.87d) Average Annual Covered Pay $ 39,647 $ 41,720

5. Retired Members and Beneficiariesa) Counts* 4,396 4,721b) Average Attained Age 67.33 67.32c) Average Annual Benefi ts* $ 15,625 $ 16,745

6. Active to Retired Ratio [(2a) / (Sa)] 1.56 1.41

Counts of members included in the valuation are counts of the records processed by the valuation. Multiplerecords may exist fo r those who have service in more than one valuation group. This does not result in doublecounting of liabilities.* Values may not match those on pages 27 and 28 due to inclusion of community property settlements.

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Active MembersCounts of members included in the valuation are counts of the records processed by the valuation. Multiplerecords may exist for those who have service in more than one valuation group. This does not result in doublecounting of liabilities.

Distribution of Active Members by Age and ServiceYears of Service at Valuation DateAttainedAge 0-4 5-9 10-14 15-19 20-24 25 +15-24 203 4 0 0 0 025-29 461 105 4 0 0 030-34 415 211 41 7 0 035-39 386 256 86 28 2 040-44 392 243 115 78 45 445-49 392 319 167 131 100 3450-54 311 283 170 125 121 11755-59 170 201 131 99 104 7460-64 95 101 60 56 35 33

65 and over 42 39 20 21 7 10All Ages 2867 1762 794 545 414 272

Distribution of Average Annual Salaries by Age and ServiceYears of Service at Valuation DateAttain'edAge 0-4 5-9

15-24 $32,683 $41,98925-29 46,770 54,79830-34 52,038 60,46635-39 56,411 64,23040-44 59,635 68,50045-49 67,461 69,49650-54 64,901 69,19855-59 65,418 72,34860-64 73,936 63,09265 and over 54,195 59,039

Average 56,502 66,253

CaIPERS Actuarial Valuation - June 30, 2010, ' Miscellaneous 2.7% at 55 Risk Pool

10-14 15-19$0 $048,034 060,960 60,46873,109 79,13078,203 79,81774,137 74,85876,852 79,07078,299 72,20078,550 76,08245,538 65,36974,684 75,846

20-24 25+$0 $00 00 0

51,921 078,374 102,84778,179 80,06482,937 84,26577,224 81,20775,409 74,45554,691 66,22978,593 81,328

Total207570674758877

1,1431,127779380139

6,654

Average$32,86348,25755,30661,77467,48071,16573,30173,31072,27956,88765,227

25


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Transferred and Terminated Members

Distribution of Transfers to Other CaIPERS Plans by Age and ServiceYears of Service at Valuation DateAttained AverageAge 0-4 5-9 10-14 15-19 20-25 25 + Total Salary15-24 23 0 0 0 0 0 23 $55,525

25-29 125 3 0 0 0 0 128 60,50230-34 203 11 3 0 0 0 217 68,63035-39 240 35 9 2 0 0 286 76,92340-44 310 62 16 5 1 0 394 79,55145-49 . 339 86 28 10 2 1 466 83,47250-54 345 141 42 25 5 1 559 89,90455-59 224 66 31 7 2 3 333 91,30460-64 105 38 16 4 0 0 163 97,88665 and over 26 12 5 0 1 0 44 97,263

All Ages 1940 454 150 53 11 5 2,613 83,066

Distribution of Terminated Participants with Funds on Deposit by Age and ServiceYears of Service at Valuation DateAttainedAge 0-4 5-9 10-14

15-24 89 0 025-29 236 4 030-34 283 16 135-39 303 38 640-44 286 54 1645-49 320 87 3450-54 283 88 2855-59 206 45 1960-64 120 23 2

65 and over 44 6 2All Ages 2170 361 108

CaIPERS Actuarial Valuation - June 30, 2010Misce"aneous 2.7% at 55 Risk Pool

15-19 20-250 00 01 01 03 012 113 54 02 21 0

37 8

Average25+ Total Salary

0 89 $27,7410 240 31,2770 301 37,8570 348 41,3590 359 44,3381 455 48,0530 417 46,5080 274 43,7260 149 38,4361 54 26,1732 2,686 41,720

26


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Retired Members and Beneficiaries

Distribution of Retirees and Beneficiaries by Age and Retirement Type*Non- Non- DeathAttained Service Industrial Industrial Industrial Industrial AfterAge Retirement Disability Disability Death Death RetirementUnder 30 0 0 0 0 0 8

30-34 0 1 0 0 0 335-39 0 3 3 0 0 240-44 0 8 8 0 0 445-49 0 19 11 2 0 1050-54 156 28 19 5 0 1355-59 666 66 19 6 0 2560-64 984 61 15 9 0 4265-69 768 42 8 8 0 5570-74 499 19 5 3 0 5975-79 373. 18 2 3 0 7580-84 206 13 2 . 1 0 72

85 and Over 187' 7 1 2 0 88All Ages 3839 285 93 39 0 456

Total848

2042

221782

1,111881585471294285

4,712

Distribution of Average Annual Amounts for Retirees and Beneficiaries by Age and RetirementType*Non- Non-Attained Service Industrial Industrial Industrial Industrial Death AfterAge' Retirement Disability Disability Death Death Retirement Average

Under 30 $0 $0 $0 $0 $0 $4,454 $4,45430-34 0 5,272 0 0 0 1,058 2,11235-39 0 8,079 243 0 0 11,360 5,96140-44 0 9,827 2,390 0 0 4,981 5,88345-49 0 9,903 643 17,671 0 14,231 8,87850-54 15,520 10,657 8,712 17,684 0 4,693 13,73155-59 24,402 9,428 4,360 14,112 0 22,380 22,50760-64 20,552 12,290 10,036 17,736 0 13,725 19,67665-69 18,644 8,774 6,648 15,746 0 13,374 17,70970-74 14,738 10,853 3,275 3,288 0 10,143 13,99275-79 14,182 10,440 384 4,177 0 13,229 13,76580-84 10,927 11,226 185 13,196 0 9,406 10,502

85 and Over 8,976 11,132 619 7,968 0 8,193 8,750All Ages 18,179 10,362 5,345 13,989 0 11,283 16,751

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> . , . : : ~ ~ . ' ~ > .. '. ::.;c - .. ..,SUNIMARYOF,PAR'J"ICIPANTDATA

Retired Members and Beneficiaries (continued)Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type*

Non- Non- DeathYears Service Industrial Industrial Industrial Industrial AfterRetired Retirement Disability Disability Death Death Retirement TotalUnder 5 Yrs 1617 57 23 16 0 175 1,8885-9 967 66 25 11 0 117 1,186

10-14 575 69 11 9 0 75 73915-19 321 39 18 3 0 27 40820-24 215 24 10 0 0 14 26325-29 103 16 1 0 0 24 144

30 and Over 41 14 5 0 0 24 84All Years 3839 285 93 39 0 456 4,712

Distribution of Average Annual Amounts for Retirees and Beneficiaries by Years Retired andRetirement Type*Non- Non- DeathYears Service Industrial Industrial Industrial Industrial AfterRetired Retirement Disability Disability Death Death Retirement AverageUnder 5 Yrs $23,736 $12,138 $3,352 $19,542 $0 $12,691 $22,078

5-9 17,031 10,741 7,354 11,093 0 12,895 16,01410-14 14,043 11,283 4,250 10,506 0 9,815 13,16715-19 12,158 8,810 8,219 5,431 0 9,216 11,42020-24 9,420 7,199 3,942 0 0 10,592 9,07125-29 6,536 10,537 56 0 0 6,929 7,001

30 and Over 6,389 6,344 397 0 0 4,824 5,578All Years 18,179 10,362 5,345 13,989 0 11,283 16,751* 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 page 24 of the report. Multiple records may exist forthose who have service in more than one coverage group. This does not result in double counting of liabilities.

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APPENDIX A STATEMENT OF ACTUARIAL DATA, METHODS AND ASSUMPTIONS


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DataAs stated in the Actuarial Certification, the data which serves as the basis of this valuation has been obtained fromthe various CaIPERS databases. We have reviewed the valuation data and believe that it is reasonable andappropriate in aggregate. We are unaware of any potential data issues that would have a material effect on theresults ofthis valuation, except that data does not always contain the latest salary information for former membersnow in reciprocal systems and does not recognize the potential for usually large salary deviation in certain cases suchas elected officials. Therefore, salary information inthese cases may not be accurate. These situations are relativelyinfrequent, however, and when they do occur, they generally do not have a material impact on the employercontribution rates.

Actuar ial MethodsFunding MethodThe actuarial funding method used for the Retirement Program is the Entry Age Normal Cost Method. Under thismethod, projected benefits are determined for all members and the associated liabilities are spread in a manner thatproduces level annual cost as a percent of pay in each year from the age of hire (entry age) to the assumedretirement age. The cost allocated to the current fiscal year is called the normal cost.The actuarial accrued liability for active members is then calculated as the portion of the total cost of the planallocated to prior years. The actuarial accrued liability for members currently receiving benefits, for active membersbeyond the assumed retirement age, and fo r members entitled to deferred benefits, is equal to the present value ofthe benefits expected to be paid. No normal costs are applicable for these participants.The excess of the total actuarial accrued liability over the actuarial value of plan assets is called the unfundedactuarial accrued liability. Funding requirements are determined by adding the normal cost and an amortization ofthe unfunded liability as a level percentage of assumed future payrolls. All changes in liability due to planamendments, changes in actuarial assumptions, or changes in actuarial methodology are amortized separately over a20-year period. All gains or losses are tracked and amortized over a rolling .30-year period with the exception ofgains and losses in fiscal years 2008-2009, 2009-2010 and 2010-2011 in which each year's gains or losses will beisolated and amortized over fixed and declinIng 30 year periods (as opposed to the current rolling 3D-yearamortization). I f a pool's accrued liability exceeds the actuarial value of assets, the annual contribution with respectto the total unfunded liability may not be less than the amount produced by a 3D-year amortization of the unfundedliability.Additional contributions will be required for any plan or pool if their cash flows hamper adequate funding progress bypreventing the expected funded status on a market value of assets basis of the plan to either:

Increase by at least 15% by June 3D, 2043; or Reach a level of 75% funded by June 3D, 2043The necessary additional contribution will be obtained by changing the amortization period of the gains and lossesprior to 2009 to a period which will result in the satisfaction of the above criteria. CaIPERS actuaries will reassess thecriteria above when performing each future valuation to determine whether or not additional contributions arenecessary.An exception to the funding rules above is used whenever the application of such rules results in inconsistencies. Inthese cases a "fresh start" approach is used. This simply means that the current unfunded actuarial liability isprojected and amortized ov.er a set number of years. For instance, if the annual contribution on the total unfundedliability was 1e5.$ than the amount produced by a 3D-year amortization of the unfunded liability, the plan actuarywould implement a 3D-year fresh start. In addition, a fresh start is needed in the following situations:

1) when a positive payment would be required on a negative unfunded actuarial liability (or conversely anegative payment on a positive unfunded actuarial liability); or

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: -, """ ~ . " " .APPENDIXA .

" "" "" ":""":' ." ,"

2) when there are excess assets, rather than an unfunded liability. In this situation a 30-yearused, unless a larger fresh start is needed to avoid a negative total rate.It should be noted that the actuary may choose to use a fresh start under other circumstances. In all cases, theperiod of the fresh start is chosen by the actuary according to his or her best judgment, and will not be less than fiveyears nor greater than 30 years.

Asset Valuation MethodIn order to dampen the effect of short term market value fluctuations on employer contribution rates, the followingasset smoothing technique is used. First an Expected Value of Assets is computed by bringing forward the prioryear's Actuarial Value of Assets and the contributions received and benefits paid during the year at the assumedactuarial rate of return. The Actuarial Value of Assets is then computed as the Expected Value of Assets plus onefifteenth of the difference between the actual Market Value of Assets and the Expected Value of Assets as of thevaluation date. However in no case will the Actuarial Value of Assets be less than 80% nor greater than 120% of theactual Market Value of Assets.In June 2009, the CalPERS Board adopted changes to the asset smoothing method in order to phase in over a threeyear period the impact of the -24% investment loss experienced by CalPERS in fiscal year 2008-2009. The followingchanges were adopted:

Increase the corridor limits for the actuarial value of assets from 80%-120% of market value to 60%-140%of market value on June 30, 2009 Reduce the corridor limits for the actuarial value of assets to 70%-130% of market value on June 30,2010 Return to the 80%-120% of market value corridor limits for the actuarial value of assets on June 30, 2011and thereafter

Superfunded StatusI f a rate plan is superfunded (actuarial value of assets exceeds the present value of benefits), as of the mostrecently completed annual valuation, the employer may cover their employees' member contributions (both taxedand tax-deferred) using their employer assets during the fiscal year for which this valuation applies. This wouldentail transferring assets within the Public Employees' Retirement Fund (PERF) from the employer account to themember accumulated contribution accounts. This change was implemented effective January 1, 1999 pursuant toChapter 231 (Assembly Bill 2099) which added Government Code Section 20816.Superfunded status applies only to individual plans, not risk pools. For rate plans within a risk pool, actuarial valueof assets is the sum of the rate plan's side fund plus the rate plan's pro-rata share of non-side fund assets.Superfunded status is determined only on annual valuation dates.Internal Revenue Code Section 415The limitations on benefits imposed by Internal Revenue Code Section 415 were not taken into account in thisvaluation. The effect of these limitations has been deemed immaterial on the overall results of this valuation.Internal Revenue Code Section 401(a)(17)The limitations on compensation imposed by Internal Revenue Code Section 401(a)(17) were taken into account inthis valuation. I t was determined that this change generally had minimal impact on the employer rates and nospecial amortization base has been created.

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ACTUARIAL ASSUMPTIONSEconomic Assumptions

Investment Return7.75% compounded annually (net of expenses). This assumption is used for all plans.Salary GrowthAnnual increases vary by category, entry age, and duration of service. Sample assumed increases are shownbelow.

Public A g e n ~ MiscellaneousDuration of Service Ent!}' Age 20 Ent!}' Age 30 Ent!}' Age 40

0 0.1445 0.1265 0.10051 0.1215 0.1075 0.08752 0.1035 0.0935 0.07753 0.0905 0.0825 0.06954 0.0805 0.0735 0.06355 0.0725 0.0675 0.0585

10 0.0505 0.0485 0.043515 0.0455 0.0435 b.038520 0.0415 0.0395 0.035525 0.0385 0.0385 0.035530 0.0385 0.0385 0.0355

. Public A g e n ~ FireDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1075 0.1075 0.10451 0.0975 0.0965 0.0875 .2 0.0895 0.0855 0.07253 0.0825 0.0775 0.06254 0.0765 0.0705 0.05355 0.0715 0.0645 0.047510 0.0535 0.0485 0.037515 0.0435 0.0415 0.036520 0.0395 0.0385 0.035525 0.0375 0.0375 0.035530 0.0375 0.0375 0.0355

Public Agencl! PoliceDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1115 0.1115 0.11151 0.0955 0.0955 0.09552 0.0835 0.0835 0.08053 0.0745 0.0725 0.06654 0.0675 0.0635 0.05755 0.0615 0.0575 0.0505

10 0.0475 0.0445 0.036515 0.0435 0.0415 0.035520 0.0395 0.0385 0.035525 0.0375 0.0365 0.035530 0.0375 0.0365 0.0355

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Public Agen9: County Peace OfficersDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1315 0.1315 0.13151 0.1115 0.1085 0.10552 0.0965 0.0915 0.08653 0.0845 0.0795 0.07354 0.0755 0.0695 0.06355 0.0685 0.0625 0.0555

10 0.0485 0.0445 0.040515 0.0435 0.0405 0.038520 0.0395 .0.0385 0.036525 0.0375 0.0365 0.035530 0.0375 0.0365 0.0355

SchoolsDuration of Service Entry Age 20 Entry Age 30 Entry Age 40

0 0.1105 0.0985 0.08451 0.0965 0.0875 0.07652 0.0865 0.0795 0.06953 0.0775 0.0725 0.06454 0.0715 0.0665 0.05955 0.0655 0.0625 0.0555

10 0.0475 0.0465 0.043515 0.0415 0.0405 0.037520 0.0385 0.0375 0.034525 0.0365 0.0365 0.034530 0.0365 0.0365 0.0345

The Miscellaneous salary scale is used for Local Prosecutors. The Police salary scale is used for Other Safety, Local Sheriff, and School Police.Overall Payroll Growth3.25% compounded annually (used in projecting the payroll over which the unfunded liability is amortized).This assumption is used for all plans.Inflation3.00% compounded annually. This assumption is used fo r all plans.Non-valued Potential Additional LiabilitiesThe potential liability loss for a cost-of-living increase exceeding the 3% inflation assumption, and anypotential liability loss from future member service purchases are not reflected in the valuation.



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Miscellaneous Loading FactorsCredit for Unused Sick LeaveFinal Average Salary is increased by 1% for those agencies that have accepted the provision providingCredit for Unused Sick Leave.Conversion of Employer Paid Member Contributions (EPMC)Final Average Salary is increased by the Employee Contribution Rate for those agencies that havecontracted for 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" for these employees in the calculation of optional benefit forms. This is due to a 1983Supreme Court decision, known as the Norris deciSion, which required males and females to be treatedequally in the determination of benefit amounts. Consequently, anyone already employed at that time isgiven the best possible conversion factor when optional benefits are determined. No loading is necessary foremployees hired after July 1, 1982.

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Demographic AssumptionsPre-Retirement MortalityNon-Industrial Death Rates vary by age and gender. Industrial Death rates vary by age. See sample ratesin table below. The non-industr ial death rates are used for all plans. The industrial death rates are used forSafety Plans (except for Local Prosecutor safety members where the corresponding Miscellaneous Plan does

not have the Industrial Death Benefit).Non-Industrial Death Industrial Death(Not Job-Related) (Job-Related)

Age Male Female Male and Female20 0.00047 0.00016 0.0000325 0.00050 0.00026 0.0000730 0.00053 0.00036 0.0001035 0.00067 0.00046 0.0001240 0.00087 0.00065 0.0001345 0.00120 0.00093 0.0001450 0.00176 0.00126 0.0001555 0.00260 0.00176 0.0001660 0.00395 0.00266 0.0001765 0.00608 0.00419 0.0001870 0.00914 0.00649 0.0001975 0.01220 0.00878 0.0002080 0.01527 0.01108 0.00021

Miscellaneous Plans usually have Industrial Death rates set to zero unless the agency has specificallycontracted for Industrial Death benefits. If so, each Non-Industrial Death rate shown above will be split intotwo components: 99% will become the Non-Industrial Death rate and 1% will become the Industrial Deathrate.

Post-Retirement MortalityRates vary by age, type of retirement and gender. See sample rates in table below. These rates are usedfor all plans.

Healthy RecipientsAge Male Female50 0.00239 0.0012555 0.00474 0 . 0 0 2 4 ~ 60 0.00720 0.0043165 0.01069 0.0077570 0.01675 0.0124475 0.03080 0.0207180 0.05270 0.0374985 0.09775 0.0700590 0.16747 0.1240495 0.25659 0.21556100 0.34551 0.31876

105 0.58527 0.56093110 1.00000 1.00000

CaIPERS Actuarial Valuation - June 30, 2010Miscellaneous 2.7% at 55 Risk Pool

Non-Industrially Disabled Industrially Disabled(Not Job-Related) (Job-Related)Male Female Male Female

0.01632 0.01245 0.00443 0.003560.01936 0.01580 0.00563 0.005460.02293 0.01628 0.00777 0.007980.03174 0.01969 0.01388 0.011840.03870 0.03019 0.02236 0.017160.06001 0.03915 0.03585 0.026650.08388 0.05555 0.06926 0.045280.14035 0.09577 0.11799 0.080170.21554 0.14949 0.16575 0.137750.31025 0.23055 0.26108 0.233310.45905 0.37662 0.40918 0.351650.67923 0.61523 0.64127 0.601351.00000 1.00000 1.00000 1.00000

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Public Agency SafetyDuration of Service Fire Police County Peace Officer

0 0.0710 0.1013 0.09971 0.0554 0.0636 0.07822 0.0398 0.0271 0.05663 0.0242 0.0258 0.04374 0.0218 0.0245 0.04145 0.0029 0.0086 0.014510 0.0009 0.0053 0.008915 0.0006 0.0027 0.004520 0.0005 0.0017 0.002025 0.0003 0.0012 0.000930 0.0003 0.0009 0.000635 0.0003 0.0009 0.0006

The Police Termination and Refund rates are used for Public Agency Local Prosecutors, Other Safety, Local Sheriff,and School Police.

SchoolsDuration ofService Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45

0 0.1730 0.1627 0.1525 0.1422 0.1319 0.12171 0.1585 0.1482 0.1379 0.1277 0.1174 0.10712 0.1440 0.1336 0.1234 0.1131 0.1028 0.09263 0.1295 0.1192 0.1089 0.0987 0-0884 0.07814 0.1149 0.1046 0.0944 0.0841 0.0738 0.06365 0.0278 0.0249 0.0221 0.0192 0.0164 0.0135

10 0.0172 0.0147 0.0122 0.0098 0.0074 0.004915 0.0115 0.0094 0.0074 0.0053 0.0032 0.001120 0.0073 0.0055 0.0038 0.0020 0.0002 0.000225 0.0037 0.0023 0.0010 0.0002 0.0002 0.000230 0.0015 0.0003 0.0002 0.0002 0.0002 0.000235 0.0002 0.0002 0.0002 0.0002 0.0002 0.0002

Termination with Vested BenefitsRate vary by entry age and service for Miscellaneous Plans. Rates vary by service for Safety Plans. Seesample rates in tables below.Public Agency Miscellaneou$

Duration ofService Entry Age 205 0.0656

10 0.053015 0.044320 0.033325 0.021230 0.000035 0.0000


Entry Age 25 Entry Age 300.0597 0.05370.0466 0.04030.0373 0.03050.0261 0.00000.0000 0.00000.0000 0.00000.0000 0.0000

Entry Age 35 Entry Age 400.0477 0.04180.0339 0.00000.0000 0.00000.0000 0.00000.0000 0.00000.0000 0.00000.0000 0.0000

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' : ' < ~ : " ' , , : . .:.'0 .... , ! . ~ ' ...' A P ; E N b i ~ / A . < .: . ~ . / ; , , < > . ~ ; .. ,.. . " . ~ ' . .. ':

Public Agency SafetyDuration of County PeaceService Fire Police Officer

5 0.0162 0.0163 0.026510 0.0061 0.0126 0.020415 0.0058 0.0082 0.013020 0.0053 0.0065 0.007425 0.0047 0.0058 0.004330 0.0045 0.0056 0.003035 0.0000 0.0000 0.0000

When a member is eligible to retire, the termination with vested benefits probability is set to zero. After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and asafety member at age 54. The Police Termination with vested benefi ts rates are used for Public Agency Local Prosecutors, OtherSafety, Local Sheriff, and School Police.

SchoolsDuration ofService Entry Age 20 . Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40

5 0.0816 0.0733 0.0649 0.0566 0.048210 0.0629 0.0540 0.0450 0.0359 0.000015 0.0537 0.0440 0.0344 0.0000 0.000020 0.0420 0.0317 0.0000 0.0000 0.000025 0.0291 0.0000 0.0000 0.0000 0.000030 0.0000 0.0000 0.0000 0.0000 0.000035 0.0000 0.0000 0.0000 0.0000 0.0000

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Non-Industrial (Not Job-Related) DisabilityRates vary by age and gender for Miscellaneous Plans.Rates vary by age for Safety Plans

Miscellaneous Fire Police County Peace Officer SchoolsAge Male Female Male and Female Male and Female Male and Female Male Female---20 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.000125 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001 0.000130 0.0002 0.0002 0.0001 0.0002 0.0001 0.0002 0.000135 0.0006 0.0009 0.0001 0.0003 0.0004 0.0006 0.000440 0.0(115 0.0016 0.0001 O.OQ04 0.0007 0.0014 0.000945 0.0025 0.0024 0.0002 0.0005 0.0013 0.0028 0.001750 0.0033 0.0031 0.0005 0.0008 0.0018 0.0044 0.003055 0.0037 0.0031 0.0010 0.0013 0.0010 0.0049 0.003460 0.0038 0.0025 0.0015 0.0020 . 0.0006 0.0043 0.0024

The Miscellaneous Non-Industrial Disability rates are used for Local Prosecutors . The Police Non-Industrial Disability rates are used for Other Safety, Local Sheriff, and School Police

Industrial (Job-Related) DisabilityRates vary by age and category.

Age Fire Police County Peace Officer20 0.0002 0.0007 0.000325 0.0012 0.0032 0.001530 0.0025 0.0064 0.003135 0.0037 0.0097 0.004640 0.0049 0.0129 0.006345 0.0061 0.0161 0.007850 0.0074 0.0192 0.010155 0.0721 0.0668 0.017360 0.0721 0.0668 0.0173

The Police Industrial Disability rates are used for Local Sheriff and Other Safety. Fifty Percent of the Police Industrial Disability rates are used for School Police. One Percent of the Police Industrial Disability rates are used tor Local Prosecutors. Normally, rates are zero for Miscellaneous Plans unless the agency has specifically contracted forIndustrial Disability benefits. I f so, each Miscellaneous Non-Industrial Disability rate will be split into twocomponents: 50% will become the Non-Industrial Disability rate and 50% will become the IndustrialDisability rate.

Service RetirementRetirement rate vary by age, service, and formula, except for the safety V2 @ 55 and 2% @ 55 formulas, whereretirement rates vary by age only.

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. . "d" , . "A ~ P E N D I X A

Public Agency Miscellaneous 1.5% @ 65Age505152535455565758596061626364656667686970

5 Years0.008

0.0070.0100.0080.0120.0180.0150.0200.0240.0280.0490.062 .0.104

'0.0990.0970.1400.0920.1290.0920.0920.103

10 Years0.011O.OlD0.0140.0120.0160.0250.0210.0280.0330.0390.0690.0870.1460.1390.1360.1970.1300.1810.1290.1300.144

Duration of Service15 Years 20 Years

0.013 0.0150.0120.0170.0150.0190.0310.0250.0330.0400.0480.0830.1060.1770.1690.1650.2400.1570.2200.1560.1580.175

0.0130.0190.0170.0220.0350.0290.0380.0460.0540.0940.1200.2000.1910.1860.2710.1770.2490.1770.1780.198

25 Years 30 Years0.017 0.0190.0150.0210.0190.0250.0380.0320.0430.0520.0600.1050.1330.2230.2130.2090.3020.1980.2770.1970.1990.221

0.0170.0240.0220.0280.0430.0360.0480.0580.0670.1180.1500.2510.2390.2330.3390.2220.3110.2210.2240.248

Public Agency Miscellaneous 2% @ 60Age505152535455565758596061626364656667686970

5 Years0.0110.0090.0130.0110.D150.0230.0190.0250.0300.0350.0620.0790.1320.1260.1220.1730.1140.1590.1130.1140.127

10 Years0.0150.0130.0180.0160.0210.0320.0270.0350.0420.0490.0870.1100.1860.1780.1710.2430.1600.2230.1590.1610.178



0.018 0.0210.016 0.0180.022 0.0250.019 0.0220.0250.0390.0320.0420.0510.0600.1050.134'0.2250.2160.2070.2960.1940.2710.1930.1950.216

0.0280.0440.0370.0480.0580.0680.1190.1520.2550.2440.2340.3340.2190.3070.2180.2200.244

25 Years 30 Years0.023 0.0260.020 0.0230.028 0.0310.025 0.0280.0320.0490.0410.0540.0650.0760.1330.1690.2840.2720.2620.3730.2450.342-0.2430.2460.273

0.0360.0550.0460.0600.0730.0850.1490.1900.3190.3050.2930.4180.2740.3840.2730.2760.306

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Public Agency Miscellaneous 2% @ 55Age505152535455565758596061626364656667 .686970

5 Years0.0150.0130.0140.0170.0270.0500.0450.0480.0520.0600.0720.0890.1280.1290.1160.1740.1350.1330.1180.1160.138

10 Years0.0200.0160.0180.0220.0340.0640.0570.0610.0660.0760.0920.1130.1620.1640.1480.2210.1710.1690.1500.1470.176


0.024 0.0290.020 0.0240.022 0.0270.027 0.0320.041 0.0490.078 0.0940.069 0.0830.074 0.0900.080 0.0970.092 0.1110.112 0.1340.137 0.1650.197 0.2370.199 0.2390.180 0.2160.269 0.3230.208 0.2500.206 0.2470.182 . 0.2190.179 0.2150.214 0.257

25 Years 30 Years0.033 0.0390.027 0.0330.0300.0370.0560.1070.0950.1020.1100.1270.1530.1880.2700.2730.2470.3690.2850.2820.2500.2460.293

0.0360.0430.0670.1270.1130.1220.1310.1510.1820.2240.3220.3250.2940.4390.3400.3360.2970.2930.349

Public AgencY Miscelianeous 2.5% @ 55Age505152535455565758596061626364656667686970

5 Years0.0260.0210.0210.0260.0430.0880.0550.0610.0720.0830.0880.0830.1210.1050.1050.1430.1050.1050.1050.1050.125

10 Years0.0330.0260.0260.0330.0540.1120.0700.0770.0910.1050.1120.1050.1540.1330.1330.1820.1330.1330.1330.1330.160 .



0.040 0.0480.0320.0320.0400.0660.1360.0850.0940.1110.1280.1360.1280.1870.1620.1620.2210.1620.1620.1620.1620.194

0.0380.0380.0480.0780.1600.1000.1100.1300.1500:1600.1500.2200.1900.1900.2600.1900.1900.1900.1900.228

25 Years 30 Years0.055 0.0620.0430.0430.0550.0890.1840.1150.1270.1500.1730.1840.1730.2530.2190.2190.2990.2190.2190.2190.2190.262

0.0490.0490.0620.1010.2080.1300.1430.1690.1950.2080.1950.2860.2470.2470.3380.2470.2470.2470.2470.296

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Public Agency Miscellaneous 2.1% @ 55Duration of Service

Age 5 Years 10 Years 15 Years 20. Years 25 Years 3D Years50. 0..0.28 0..035 0..0.43 0..0.50. 0..0.58 0..0.6551 0..0.22 0..0.28 0..0.34 0..0.40 0.046 0..0.5252535455565758596061626364656667686970.

0..0.220..0.280..0440..0.910.0.610.0.630..0.740..0.830..0.880..0.850.1240.1070.1070..1460..1070..1070.10.70..1070..129

0..0.280.0.350..0.560..1160..0.770.0.810.0.950.1050..1120..1090..1580..1370.1370.1860..1370..1370..1370..1370.164

0..0340.0.430..0.680..140.0..0.940..0.980.1150..1280..1360..1320..1910..1660..1660..2250..1660..1660..1660..1660..199

0..040 0..0.460..0.50 0.0.580..0.80. 0..0.920..165 0..190.0..110. 0..1270..115 0.1320..135 0..1550..150. 0.1730..160 0.1840..155 0..1780..225 0..2590..195 0..2240..195 0..2240..265 0..30.50.195 0.2240.195 0..2240.195 0.2240..195 . 0.2240..234 0.269

Public Agency Miscellaneous 3% @ 60Age50.5152535455565758596061626364656667686970.

5 Years0..0.260..0.210..0.190..0.250..0390.0.830..0.550.0.610..0.720..080.

. 0..0.940..0.880..1270..110.0..110.0..1490..110.0..110.0..110.0..110.0..132

10. Years0..0.330..0.260..0.250..0.320..0.490..10.50..0.70.0..0.770..0.910..1020..1190..1120..1610..140.0..140.0..1890..140.0..140.0..140.0..140.0..168

CaIPERS Actuarial Valuation - June 3D, 2010.Miscellaneous 2.7% at 55 Risk Pool


0..0.40. 0..0.480..0.320..0.30.0..0380..0.60.0..1280..0.850..0.940..1110..1230..1450..1360..1960..170.0..170.0..230.0..170.0..170.0..170.0..170.0..204

0..0.380..0.350..0450..070.0.150.0..100.0..110.0..130.0..1450..170.0.160.0..230.0.2000.20.00..270.0..20.00.200.0.2000..200.0..240

25 Years0.0550.0430..0400.0.520.0810..1730.1150..1270.1500.1670.1960.1840.2650.2300.2300.3110..2300.2300.2300.2300..276

0..0.520..0.650..10.40..2150..1430..150.0.1760..1950..20.80..20.20..2930..2540..2540. .3450..2540..2540..2540..2540..30.4

30 Years0.0.620..0.490..0460..0.590..0.910..1950..130.0.1430..1690..1890..2210..20.80..2990..260.0..260.0.3510.260.0..260.0.260.0..260.0..312

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Public Agency Fire 112 @ 55 and 2% @ 55Rate Age Rate50 0.01588 56 0.1107951 0.00000 57 0.0000052 0.03442 58 0.09499

53 0.01990. 59 0.0440954 0.04132 60 1.0000055 0.07513

Public Agency Police 112 @ 55 and 2% @ 55Rate Age50 0.02552 5651 0.00000 5752 0.01637 5853 0.02717 5954 0.00949 60

55 0.16674

Public Agency Police 2%@ 50Duration of Service

Rate0.069210.051130.072410.070431.00000

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.014 0.014 0.014 0.014 0.025 0.04551 0.012 0.012 0.012 0.012 0.023 0.04052 0.026 0.026 0.026 0.026 0.048 0.08653 0.052 0.052 0.052 0.052 0.096 0.17154 0.070 0.070 0.070 0.070 0.128 0.22755 0.090 0.090 0.090 0.090 0.165 0.29356 0.064 0.064 0.064 0.064 0.117 0.20857 0.071 0.071 0.071 0.071 0.130 0.23258 0.063 0.063 0.063 0.063 0.115 0.20559 0.140 0.140 0.140 0.140 0.174 0.25460 .0.140 0.140 0.140 0.140 0.172 0.25161 0.140 0.140 0.140 0.140 0.172 0.25162 0.140 0.140 0.140 0.140 0.172 0.25163 0.140 0.140 0.140 0.140 0.172 0.25164 0.140 0.140 0.140 0.140 0.172 0.25165 1.000 1.000 1.000 1.000 1.000 1.000

These rates also apply to Local Prosecutors, Local Sheriff, School Police, and Other Safety

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Public Agency Fire 2%@50Duration of Service

Age 5 Years 10. Years 15 Years 20. Years 25 Years 3D Years50. 0..0.0.7 0..0.0.7 0..0.0.7 0..0.0.7 0..0.10. D.D1551 0..0.0.8 0..0.0.8 0..0.0.8 0..0.0.8 0..0.13 0..0.1952 0..0.17 0..0.17 0..0.17 0..0.17 0..0.27 0..0.40.53 0..047 0..047 0..047 0..047 0..0.72 0..10754 0..0.64 0..0.64 0..0.64 0..0.64 0..0.98 0..14755 0..0.87 0..0.87 0..0.87 0..0.87 0..134 0..20.0.56 0..0.78 0..0.78 0..0.78 0..0.78 0..120. 0..180.57 0..0.90. 0..0.90. 0..0.90. 0..0.90. 0..139 0..20.858 0..0.79 0..0.79 0..0.79 0..0.79 0..122 0..18259 0..0.73 0..0.73 0..0.73 0..0.73 0..112 0..16860. 0..114 0..114 0..114 0..114 0..175 0..26261 0..114 0..114 0..114 0..114 0..175 0..26262 0..114 0..114 0..114 0..114 0..175 0..26263 0..114 0..114 0..114 0..114 0..175 0..26264 0..114 0..114 0..114 0..114 0..175 0..26,265 1.0.0.0. 1.0.0.0. 1.0.0.0. 1.0.0.0. 1.0.0.0. 1.0.0.0.


Age 5 Years 10. Years 15 Years 20. Years 25 Years 3D Years50. 0..0.19 0..0.19 0..0.19 0..0.19 0..0.40. 0..0.60.51 0..0.24 0..0.24 0..0.24 0..0.24 0..049 0..0.7452 0..0.24 0..0.24 0..0.24 0..0.24 0..0.51 0..0.7753 0..0.59 0..0.59 0.0.59 0..0.59 0..121 0..18354 0..0.69 0..0.69 0..0.69 0..0.69 0..142 0..21555 0..116 0..116 0..116 0..116 0..240. 0..36356 0..0.76 0..0.76 0..0.76 0..0.76 0..156 0..23657 0..0.58 0..0.58 0..0.58 0..0.58 0..120. 0..18158 0..0.76 0..0.76 0..0.76 0..0.76 0..157 0..23759 0..0.94 0..0.94 0..0.94 0..0.94 0..193 0..29260. 0..141 0..141 0..141 0..141 0..290. 0..43861 0..0.94 0..0.94 0..0.94 0..0.94 0..193 0..29262 0..118 0..118 0..118 0..118 0..241 0..36563 0..0.94 0..0.94 0..0.94 0..0.94 0..193 0..29264 0..0.94 0..0.94 0..0.94 0..0.94 0..193 0..29265 1.0.0.0. 1.0.0.0. 1.0.0.0. 1.0.0.0. 1.0.0.0. 1.0.0.0.


CaIPERS Actuarial Valuation - June 3D, 20.10.Miscellaneous 2.7% at 55 Risk PoolA-15


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:APPE';'DlXA: . ;,";,";.;,.>;-;".";-

Public Agency Fire 3%@55Duration of Service

Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.012 0.012 0.012 0.018 0.028 0.03351 0.008 0.008 0.008 0.012 0.019 0.02252 0.018 0.018 0.018 0.027 0.042 0.05053 0.043 0.043 0.043 0.062 0.098 0.11454 0.057 0.057 0.057 0.083 0.131 0.15255 0.092 0.092 0.092 0.134 0.211 0.24656 0.081 0.081 0.081 0.118 0.187 0.21857 0.100 0.100 0.100 0.146 0.230 0.26858 0.081 0.081 0.081 0.119 0.187 0.21959 0.078 0.078 0.078 0.113 0.178 0.20860 0.117 0.117 0.117 0.170 0.267 0.31261 0.078 0.078 0.078 0.113 0.178 0.20862 0.098 0.098 0.098 0.141 0.223 0.26063 0.078 0.078 0.078 0.113 0.178 0.20864 0.078 0.078 0.078 0.113 0.178 0.20865 1.000 1.000 1.000 1.000 1.000 1.000


Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years50 0.070 0.070 0.070 0.131 0.193 0.24951 0.050 0.050 0.050 0.095 0.139 0.18052 0.061 0.061 0.061 0.116 0.171 0.22053 0.069 0.069 0.069 0.130 0.192 0.24754 0.071 0.071 0.071 0.134 0.197 0.25555 0.090 0.090 0.090 0.170 0.250 0.32256 0.069 0.069 0.069 0.130 0.191 0.24757 0:080 0.080 0.080 0.152 0.223 0.28858 0.087 0.087 0.087 0.164 0.242 0.31259 0.090 0.090 0.090 0.170 0.251 0.32360 0.135 0.135 0.135 0.255 0.377 0.48561 0.090 0.090 0.090 0.170 0.251 0.32362 0.113 0.113 0.113 0.213 0.314 0.40463 0.090 0.090 0.090 0.170 0.251 0.32364 0.090 0.090 0.090 0.170 0.251 0.32365 1.000 1.000 1.000 1.000 1.000 1.000




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Public Agency Fire 3%@50Age50515253545556575859606162636465

5 Years0.0340.0460.0690.0840.1030.1270.1210.1010.1180.1000.1500.1000.1250.1000.1001.000

10 Years0.0340.0460.0690.0840.1030.1270.1210.1010.1180.1000.1500.1000.1250.1000.1001.000


0.034 0.0480.046 0.0650.069 0.0970.0840.1030.1270.1210.1010.1180.1000.1500.1000.1250.1000.1001.000

0.1170.1430.1770.1690.1410.1650.1400.2100.1400.1750.1400.1401.000

Schools 2%@ 55Age 5 Years 10 Years50 0.005 0.00951 0.005 0.01052 0.006 0.01253 0.007 0.01454 0.012 0.02455 0.024 0.04856 0.020 0.03957 0.021 0.04258 0.025 0.05059 0.029 0.05760 0.037 0.07361 0.046 0.09062 0.076 0.15163 0.069 0.13664 0.067 0.13365 0.091 0.18066 0.072 0.14367 0.067 0.13268 0.060 0.11869 0.067 0.13370 0.066 0.131



0.013 0.0150.014 0.0170.017 0.0200.019 0.0230:033 0.0390.067 0.0790.055 0.0650.059 0.0700.070 0.0830.080 0.0950.102 0.1210.126 0.1490.212 0.2500.191 0.2250.185 0.2190.251 0.2970.200 0.2370.185 0.2180.165 0.1950.187 0.2200.183 0.216

25 Years0.0680.0920.138

30 Years0.0800.1090.163

0.166 0.1970.204 0.241

. 0.252 0.2980.241 0.2850.201 0.2380.235 ' 0.2790.199 0.2360.299 0.3540.199 0.2360.249 0.2950.199 0.2360.199 0.2361.000 1.000

25 Years 30 Years0.016 0.0180.019 0.0210.022 0.0250.026 0.0290.044 0.0490.088 0.0990;072 0.0810.078 0.0870.092 . 0.1030.105 0.1180.134 0.1500.166 0.1860.278 0.3110.251 0.2810.244 0.2730.331 0.3700.264 0.2950.243 0.2720.217 0.2430.246 0.2750.241 0.270

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APPENDIXB SUMMARY OF PRINCIPAL PLAN PROVISIONS


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The following is a description of the principal plan provisions used in calculating the liabilitiesof the Miscellaneous2.7% at 55 Risk Pool. Plan provisions are divided based on whether they are standard, Class I, Class 2 or Class 3benefits. Standard benefits are applicable toall members of the risk pool while Class I, 2 or 3 benefits varyamong employers. Providedat the end of the listing is a table providing the percentageof members participatingin the pool that are subject to each benefit.Many of the statements in this summary are general in nature, and are intended to providean easily understoodsummary of the complex Public Employees' Retirement Law. The law itself governs in all situations.

EligibilityA calPERS member becomes eligible for Service Retirement upon attainment of age 50 with at least 5 years ofcredited service (total service across all calPERS employers, and with certain other Retirement Systems withwhich CalPERS has reciprOCity agreements). For employees hired into a plan with the 1.5% at 65 formula,eligibility for service retirement is age 55 with at least 5 years of service.BenefitThe Service Retirement benefit calculated for service earned by this groupof employees is a monthly allowanceequal to the product of the benefit factor, years ofservice, and final compensation, where The benefit factor for this group of employees comes from the 2.7% at 55 Miscellaneous benefit formulafactor -table. The factor depends on the member's age at retirement. Listed below are the factors forretirement at whole year ages:

Retirement Age 2.7% at 55 MiscellaneousFactor50 2.0%51 2.14%52 2.28%53 2.42%54 2.56%

55 & Up 2.7% The years of service is the amount credited by CalPERS to a member while he or she is employed in thisgroup (or for other periods that are recognized under the employer's contract withcaIPERS). For a memberwho has earned service with multiple CalPERS employers, the benefit from each employer is calculatedseparately according to each employer's contract, and then added together for the total allowance. Anyunused sick leave accumulated at the time of retirement will be converted to credited service at a rate of0.004 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' fulltime equivalent monthly pay (no matter which CalPERS employer paid this compensation). The standardbenefit available to all members is 36 months. Employers have the option of providing a final compensationequal to the highest 12 consecutive months by contracting for thisclass 1 optional benefit. For employees covered by the modified formula, the final compensationis offset by $133.33 (or by one third

if the final compensation is less than $400). Employers have the option to contract for theclass 3 benefitthat will eliminate the offset applicable to the final compensation of employees covered by a modifiedformula.

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APPENDIXB

The Miscellaneous Service Retirement benefit is not capped. The Safety Service Retirement benefit is cappedat 90% of final compensation.

Eligibility for Deferred StatusA calPERS member becomes eligible for a deferred vested retirement benefit when he or she leaves employment,keeps his or her contribution account balance on deposit with caIPERS, and has earned at least 5 years ofcredited service (total service across all CalPERS employers, and with certain other Retirement Systems withwhich calPERS has reciprocity agreements).Eligibility to Start Receiving BenefitsThe calPERS member becomes eligible to receive the deferred retirement benefit upon satisfying the eligibilityrequirements for Deferred Status and upon attainment of age 50.BenefitThe vested deferred retirement benefit is the same as the Service Retirement benefit, where the benefit factor isbased on the member's age at allowance commencement. For members who have earned service with multipleCalPERS employers, the benefit from each employer is calculated separately according to each employer'scontract, and then added together for the total allowance.

EligibilitYA calPERS member is eligible for Non-Industrial Disability Retirement if he or she becomes disabled and has atleast 5 years of credited service (total service across all calPERS employers, and with certain other RetirementSystems with which CalPERS has reciprocity agreements). There is no special age requirement. Disabled meansthe member is unable to perform his or her job because of an illness or injury which is expected to be permanentor to last indefinitely. The illness or injury does not have to be job related. A calPERS member must be activelyworking with any calPERS employer at the time of disability in order to be eligible for this benefit.Standard BenefitThe standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8% of finalcompensation, 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 18.518years of service; or service is calPERS credited service plus the additional number of years that the member would have workeduntil age 60, for members with at least 10 years but not more than 18.518 years of service. The maximumbenefit in this case is 33 1/3% of Final Compensation.Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of adisability benefit. Members eligible to retire, and who have attained the normal retirement age determined bytheir service retirement benefit formula, will receive the same dollar amount for disability retirement as thatpayable for service retirement. For members who have earned service with multiple calPERS employers, thebenefit attributed to each employer is the total disability allowance multiplied by the ratio of service with aparticular employer to the t ~ t a l calPERS service.Improved BenefitEmployers have the option of providing this improved benefit by contracting for this class 3 optional benefit.The improved Non-Industrial Disability Retirement benefit is a monthly allowance equal to 30% of finalcompensation for the first 5 years of service, plus 1% for each additional year of service to a maximum of 50% offinal compensation.calPERS Actuarial Valuation - June 30, 2010 B-2Miscellaneous 2.7% at 55 Risk Pool


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Members who are eligible for a larger service retirement benefit maychoose to receive that benefit in lieu of adisability benefit. Members eligible to retire, and who have attained the normal retirementage determined bytheir serVice retirement benefit formula, will receive thesame dollar amount for disability retirement as thatpayable for service retirement. For members who have earned service with multiple CalPERS employers, thebenefit attributed to each employer is the total disability allowance multiplied by the ratio of service with aparticular employer to the totalCaIPERS service.

Employers have the option of providing this improved benefit by contracting for thisclass 1 optional benefit.EligibilityAn employee is eligible for Industrial Disability Retirement if he or she becomes disabled while working, wheredisabled means the member is unable to perform the dutiesof the job because of a work-related illness or injurywhich is expected to be permanent or to last indefinitely. ACaIPERS member who has left active employmentwithin this group is not eligible for this benefit, except to the extent describedin the next paragraph.Standard BenefitThe standard Industrial Disability Retirement benefitis a monthly allowance equal to 50% of final compensation.For a CaIPERS member not actively employed in this group who became disabled while employed by some otherCaIPERS employer; the benefit is a return of or annuitization of the accumulated member contr ibutions withrespect to employment in this group. However, if a member is eligible for Service Retirement and if the ServiceRetirement benefit is more than the Industrial Disability Retirement benefit, the member may. choose to receivethe larger benefit.Increased Benefit (75% of Final Compensation)The increased Industrial Disability Retirement benefit is a monthly allowance equal to 75%of final compensationfo r total disability. For a CalPERS member not actively employed in this group who became disabled whileemployed by some other CaIPERS employer, the benefit is a return of or annuitization of the accumulatedmember contributions with respect to employment in this group. However, if a member is eligible for ServiceRetirement and if the Service Retirement benefit is more than the Industrial Disability Retirement benefit, themember may choose to receive the larger benefit.

Standard lump Sum PaymentUpon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designatedsurvivor(s), or to the retiree's estate.Improved lump Sum PaymentEmployers have the option of providing any of these improved lump sum death benefit by contracting for anyofthese class 3 optional benefits.Upon the death of a retiree, a one-time lump sum payment of $600, $2,000, $3,000, $4,000 or $5,000will bemade to the retiree's deSignated survivor(s), or to the retiree's estate.

Foam ofPayment forRetirement AllowanceStandard Form of PaymentCaIPERS Actuarial Valuation - June 30, 2010Miscellaneous 2.7% at 55 Risk Pool B-3


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Generally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she isalive. The retiree may choose to provide for a portion of his or her allowance to be paid to any designatedbeneficiary after the retiree's death. calPERS provides for a variety of such benefit options, which the retireepays for by taking a reduction in his or her retirement allowance. The larger the amount to be provided to thebeneficiary is; and the younger the beneficiary is, the greater the reduction to the retiree's allowance.Improved Form of Payment (Post Retirement Survivor Allowance)Employers have the option to contract for this class 1 benefit providing an improved post retirement survivorallowance.For retirement allowances with respect to service subject to the modified formula, 25% of the retirementallowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, withouta reduction in the retiree's allowance. For retirement allowances with respect to service subject to the fullformula, 50% of the retirement allowance will automatically be continued to certain statutory beneficiaries uponthe death of the retiree, without a reduction in the retiree's allowance. This additional benefit is often referred toas 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 orshe is alive, and that same amount is continued to the retiree's spouse (or if no eligible spouse, to unmarriedchildren until they attain age 18; or, if no eligible children, t o a qualifying dependent parent) for the rest of his orher 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 thebenefit, is paid to the. retiree as an annuity for as long as he or she is alive. Or, the r!=tiree may choose toprovide for some of this option portion to be paid to any deSignated beneficiary after the retiree's death. CalPERSoffers a variety of such benefit options, which the retiree pays fo r by taking a reduction to the option portion ofhis or her retirement allowance. .

EligibilityAn employee's beneficiary (or estate) may receive the Basic Death benefit if the member dies while activelyemployed. A CalPERS member must be actively employed with the calPERS employer providing this benefit to beeligible for this benefit. A member's survivor who is eligible for any other pre-retirement death benefit describedbelow may choose to receive that death benefit instead of this Basic Death benefit.Standard BenefitThe Basic Death Benefit is a lump sum in the amount of the member's !3ccumulated contributions, where interestis currently credited at 7.75% per year, plus a lump sum in the amount of one month's salary for each completedyear of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salaryis defined as the member's average monthly full-time rate of compensation during the 12 months precedingdeath.

1957Survivor BenefitEligibilityAn employee's eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while activelyemployed, has attained at least age 50, and has at least 5 years of credited service (total service across allCaIPERS employers and with certain other Retirement Systems with which calPERS has reciproCity agreements).calPERS Actuarial Valuation - June 30, 2010Miscellaneous 2.7% at 55 Risk Pool B-4


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A CaIPERS member must be actively employed with the CaIPERS employer providing this benefit to be eligible forthis benefit. An eligible survivor means the surviving spouse to whom the member was married at least one yearbefore death or, if there is no eligible spouse, to the member's unmarried children under age 18. A member'ssurvivor may choose this benefit in lieu of the Basic Death benefit or the Special Death benefit.Standard BenefitThe 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified Service Retirement benefitthat the member would have been entitled to receive if the member had retired on the date of his or her death.I f the benefit is payable to the spouse, the benefit is discontinued upon the death of the spouse. I f the benefit ispayable to' a dependent child, the benefit will be discontinued upon death or attainment of age 18, unless thechild is disabled. There is a guarantee that the total amount paid will at least equal the Basic Death benefit.

EligibilityAn employee's eligible survivor may receive the Optional Settlement 2W Death benefit if the member dies whileactively employed, has attained at least age 50, and has at least 5 years of credited service(total service acrossall CaIPERS employers and with certain other Retirement Systems with which CaIPERS has reciprocityagreements). A CaIPERS me

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