a complete copy of the 2012 CAFR Report! - PSERs

More documents

Recommendations

Info

ACTUARIAL SECTION DESCRIPTION OF ACTUARIAL ASSUMPTIONS AND METHODS (Continued) Actuarial Cost Method for Pension Funding: Entry Age Normal Cost Method (modified slightly as of June 30, 2005 to use a payweighted average normal contribution rate). The results of each June 30 valuation normally determine the employer contribution rate for the second succeeding fiscal year. Act 120 revised the funding method effective with the June 30, 2010 valuation. Act 120 mandated that the outstanding balance of the unfunded accrued liability as of June 30, 2010, including changes in the unfunded accrued liability due to the funding reforms of Act 120, be amortized over a 24-year period, as a level percent of pay, beginning July 1, 2011. Future valuation gains and losses, and changes in the unfunded accrued liability resulting from changes in actuarial assumptions and methods, are amortized over a 24- year period, as a level percent of pay. Future increases in the unfunded accrued liability due to legislation will be amortized over a 10-year period, as a level percent of pay. Act 120 also modified the employer pension contribution requirements by imposing collars on the rate at which employer contributions may rise from year to year. For the fiscal years ending June 30, 2012, June 30, 2013, and on or after June 30, 2014 the pension contribution rate can be no more than 3%, 3.5% and 4.5%, respectively, of total compensation of all active members, greater than the prior year’s final contribution rate. Beginning with the fiscal year in which the actuarially required contribution rate is less than the collared rate, the final contribution rate is the actuarially determined contribution rate, provided that the final contribution rate is not less than the employer normal contribution rate. Actuarial Cost Method for GASB 25 Accounting for Pensions: Same as for pension funding, except that the GASB 25 amortization payment will be set equal to the level dollar amount that will amortize the unfunded accrued liability over a period of 30 years. Actuarial Cost Method for Health Insurance Funding: The actuarial liability equals the assets in the health insurance account, and the results of the June 30 valuation determine the contribution rate for the second succeeding fiscal year. The rate so determined is the rate necessary to establish reserves sufficient to cover administrative expenses and provide premium assistance payments for all participating eligible annuitants during the third fiscal year that follows the valuation date. Actuarial Cost Method for GASB 43 Accounting for Health Insurance: The actuarial liability is determined under the entry age actuarial cost method, and the Annual Required Contribution (ARC) for the second fiscal year that follows the valuation date is equal to the entry age normal cost for health insurance plus an amount that will amortize the entry age unfunded actuarial liability for health insurance over a period of 30 years. DATA Census and Assets: The valuation was based on members of the Retirement System as of June 30, 2011 and does not take into account future members. All census data was supplied by the Retirement System and was subject to reasonable consistency checks. The actuary adjusts the data to account for service and pay earned by members on or before the valuation that is not reported by the Retirement System until after the actuarial valuation is performed. Asset data was supplied by the Retirement System. PAGE 91
ACTUARIAL SECTION SCHEDULE OF ACTIVE MEMBERS VALUATION DATA Valuation as of June 30 Number of Active Members Annual Compensation (Thousands) Average Compensation % Increase in Average 2011 279,152 $ 12,910,043 46,247 1.99 % 2010 282,041 12,788,847 45,344 1.26 2009 279,701 12,524,593 44,779 2.43 2008 272,690 11,921,469 43,718 1.16 2007 264,023 11,410,257 43,217 (0.33) 2006 263,350 11,419,049 43,361 5.22 SCHEDULE OF RETIRED MEMBERS AND BENEFICIARIES ADDED TO AND REMOVED FROM ROLLS Valuation Date as of June 30 Number Added to Rolls Removed from Rolls Rolls at End of Year Annual Allowance (Millions) Number Annual Allowance (Millions) Number* Annual Allowance** (Millions) % Increase in Annual Allowance Average Annual Allowance 2011 16,228 $ 453.7 6,540 $ 76.4 194,622 $ 4,650.8 7.17 % $ 23,897 2010 12,649 372.8 5,678 77.6 184,934 4,339.6 8.59 23,466 2009 9,651 314.9 5,228 74.4 177,963 3,996.3 4.85 22,456 2008 10,911 345.3 5,397 73.9 173,540 3,811.5 8.18 21,963 2007 10,612 307.5 4,399 56.0 168,026 3,523.4 7.60 20,970 2006 10,637 N/A 5,343 N/A 161,813 3,274.5 8.16 20,236 * Excludes inactive members and vestees. ** Reflects changes in annuities for continuing payees due to finalization of benefit calculations and due to the commencement of supplemental annuity payments. PAGE 92
Page 1 and 2:
PENNSYLVANIA PUBLIC SCHOOL EMPLOYEE
Page 3 and 4:
INTRODUCTORY SECTION Table of Conte
Page 5 and 6:
INTRODUCTORY SECTION This page inte
Page 7 and 8:
INTRODUCTORY SECTION Letter of Tran
Page 9 and 10:
INTRODUCTORY SECTION PSERS has annu
Page 11 and 12:
INTRODUCTORY SECTION Statement No.
Page 13 and 14:
INTRODUCTORY SECTION PAGE 12
Page 15 and 16:
INTRODUCTORY SECTION Mission Statem
Page 17 and 18:
INTRODUCTORY SECTION PSERS Board of
Page 19 and 20:
INTRODUCTORY SECTION OFFICE OF FINA
Page 21 and 22:
INTRODUCTORY SECTION PSERS REGIONAL
Page 23 and 24:
INTRODUCTORY SECTION This page inte
Page 25 and 26:
FINANCIAL SECTION This page intenti
Page 27 and 28:
Management’s Discussion and Analy
Page 29 and 30:
Page 31 and 32:
FINANCIAL SECTION Management’s Di
Page 33 and 34:
FINANCIAL SECTION Management’s Di
Page 35 and 36:
Page 37 and 38:
FINANCIAL SECTION Statements of Pla
Page 39 and 40:
FINANCIAL SECTION Statements of Cha
Page 41 and 42: FINANCIAL SECTION Notes to Financia
Page 43 and 44: Notes to Financial Statements (cont
Page 61 and 62: Valuation as of June 30 FINANCIAL S
Page 63 and 64: FINANCIAL SECTION Supplementary Sch
Page 65 and 66: FINANCIAL SECTION Supplementary Sch
Page 67 and 68: Dear Members of The PSERS Board of
Page 69 and 70: INVESTMENT SECTION (11.2%). Within
Page 71 and 72: INVESTMENT SECTION To benchmark rea
Page 73 and 74: INVESTMENT SECTION The System also
Page 75 and 76: INVESTMENT SECTION Comparison of Ac
Page 77 and 78: Description INVESTMENT SECTION Comm
Page 79 and 80: INVESTMENT SECTION Comparison of In
Page 81 and 82: INVESTMENT SECTION Professional Con
Page 83 and 84: INVESTMENT SECTION This page intent
Page 85 and 86:   ACTUARIAL SECTION January 31, 2
Page 87 and 88: ACTUARIAL SECTION In our opinion, t
Page 89 and 90: ACTUARIAL SECTION HISTORY AND PROJE
Page 91: ACTUARIAL SECTION DESCRIPTION OF AC
Page 95 and 96: ACTUARIAL SECTION ANALYSIS OF PAST
Page 97 and 98: ACTUARIAL SECTION SCHEDULE OF EMPLO
Page 99 and 100: ACTUARIAL SECTION This page intenti
Page 101 and 102: STATISTICAL SECTION Statistical Sec
Page 103 and 104: STATISTICAL SECTION Schedule of Tot
Page 105 and 106: STATISTICAL SECTION Schedule of Tot
Page 107 and 108: STATISTICAL SECTION Deductions from
Page 109 and 110: STATISTICAL SECTION Schedule of Pre
Page 111 and 112: STATISTICAL SECTION Schedule of Pen
Page 113 and 114: STATISTICAL SECTION Schedule of Ave
Page 115 and 116: STATISTICAL SECTION Schedule of Ave
Page 117 and 118: A__________________ Abington Abingt
Page 119 and 120: Schedule of Employers (Continued) O
Page 121 and 122: Schedule of Employers (Continued) A
Page 123: STATISTICAL SECTION This page inten
show all

a complete copy of the 2012 CAFR Report! - PSERs

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?