1. COPERS City of Phoenix Employees’ Retirement System March 2017
Scott Miller
Retirement Program Administrator
March 2017

2. Agenda Plan Statistics Asset Allocation Changes
Post-Retirement Increases
Questions

3. Plan Statistics as of June 30, 2016
Membership:
Employees: 7,783 (+320)
Inactives: (-16)
Retirees: ,885 (+197)
Total: ,553 (+501)
Assets As of June 30, 2016: $2.15 billion
Average annual pension, all retirees: $31,640 (+$559)
Average annual compensation for active members: $63,772 (-$1,196)
Average age of active members: 46.8 (+0.1)
Average years of service of actives: 12.2 (-0.7)
Number of retirees over age 90: 109 (+3)

4. Funded Ratio

6. Asset Allocation Changes
COPERS Board’s “Statement of Investment Beliefs” provides that “Our duty of prudence requires that we only invest in products we understand.”
COPERS Board has received in-depth education regarding investable asset classes
COPERS’ previous asset allocation was only projected to obtain a 6.6% return/20 years
New allocation – 7.26%/20 years

7. Asset Allocation Changes

8. Post-Retirement Increases
Pension Equalization Program (PEP)
13th Check

9. Pension Equalization Program “PEP”
Permanent increase
Eligible if retired 36 months by January 1st
Paid with March check retroactive to January
Lesser of prior year’s CPI (not less than zero) or percentage supported by excess returns reserve
Reserve Fund balance based on excess investment returns over 8%
Reserve Fund balance is nearly zero

12. 13th Check Dependent upon last Fiscal Year’s Results One time payment
Eligible if retired by June 30th of payment year
Paid with December pension payment
Lesser of ½ of prior year’s CPI increase or 3%; minimum of 1%, if excess returns reserve balance sufficient

14. Thank You