Oklahoma County Employees Retirement System Summary of Actuarial Valuation as of June 30, 2018 October 29, 2018 Board Meeting Daniel L. Homan, Principal

Agenda Page Historical Census Data 3 Plan Assets 8 Plan Liabilities 13 Valuation Results Summary 17

Historical Census Data

Census Data Participant Counts 2018 2017 2016 2015 July 1, July 1, July 1, July 1, 2018 2017 2016 2015 Actives 1 1 3 4 Terminated Vested 11 11 13 15 Retirees 73 82 82 84 Beneficiaries 42 47 48 56 Total 127 141 146 159 Net change year-to-year -14 -5 -13 Participant Changes during the year 3 inactive corrected from Beneficiary to Retiree 20 Retiree deaths during the year, only 6 had a beneficiary

Census Data

Participant Statistics as of July 1: Census Data Participant Statistics as of July 1: 2018 2017 2016 2015 Actives Average age 54.6 53.6 57.6 56.8 Average service 35.5 34.5 31.7 31.5 Average pay $79,380 $78,840 $66,211 $64,710 Terminated Vested Average age 59.1 58.1 57.8 57.3 Average monthly benefit $458 $458 $451 $518 Retirees Average age 76.6 77.5 77.7 77.5 Average monthly benefit $1,295 $1,308 $1,261 $1,237 Beneficiaries Average age 82.7 82.4 81.5 82.5 Average monthly benefit $937 $881 $874 $852

Census Data

Plan Assets

Plan Assets For the 7/2018 valuation, we have decreased the expected rate of return on plan assets from 5.75% to 2.25% The expected return on assets needs to be based on the investments held by in plan Historical asset information is shown on the next few pages

Plan Assets

Plan Assets

Plan Assets

Plan Liabilities

Plan Liabilities Discount rate has been reduced to value plan liabilities The discount rate has NO impact on ultimate payments from the plan, the discount rate ONLY provides the PRESENT VALUE of expected cash flows Examples We are to pay a $1,000 monthly payment for 10 years starting immediately. How much do we need to deposit today to make these 120 payments?

Plan Liabilities

Plan Liabilities

Valuation Results Summary

Valuation Results Summary Accounting Results (GASB 68) as of July 1: 2018 2017 2016 2015 Plan Liabilities $19,527 $16,771 $17,498 $19,514 Plan Assets $5,750 $6,133 $6,622 $7,118 Unfunded Liability $13,777 $10,638 $10,876 $12,396 Pension Expense/(Income) $4,515 $925 ($430) $2,728 Funded Percentage 29.4% 36.6% 37.8% 36.5% Discount Rate 2.76% 5.38% 5.32% 4.62% (All dollar figures in $1,000)

Valuation Results Summary

Valuation Results Summary Funding Results as of July 1: 2018 2017 2016 2015 Plan Liabilities $20,512 $16,304 $16,923 $17,846 Plan Assets $5,750 $6,133 $6,622 $7,118 Unfunded Liability $14,762 $10,171 $10,301 $10,728 Recommended Contribution $1,187 $1,068 $786 $811 Amortization Period 15 15 30 30 Discount Rate 2.25% 5.75% 5.75% 5.75% (All dollar figures in $1,000)

Valuation Results Summary

Closing Questions?