1. P
Supplemental COLA
April 20, 2005

2. Today’s Discussion
What is it?
Who gets it?
Funding Trend
Options

3. Purchasing Power Year 1 2 3 4 5 Benefit $1,000 $1,030 $1,061 $1,0931 2 3 4 5
Benefit
$1,000
$1,030
$1,061
$1,093
$1,126
$1,159
Inflation
4.0%
COLA
3.0%
COLA Bank
0.0%
1.0%
2.0%
5.0%

4. Purchasing Power Lost
Retirement during twelve-month period ended April 1
Accumulated COLA Bank April 1, 2005
Accumulated COLA Bank April 1, 2004
1973 or earlier
69.5%
71.5%
1974
69.0%
71.0%
1975
66.0%
68.0%
1976
59.0%
61.0%
1977
52.0%
54.0%
1978
49.5%
51.5%
1979
45.0%
47.0%
1980
38.5%
40.5%
1981
33.0%
35.0%
1982
21.0%
23.0%
1983
11.0%
13.0%
1984
8.5%
10.5%

5. Purchasing Power Lost

6. Purchasing Power Supplement
Retirement during twelve-month period ended April 1
Excess COLA Bank 2005
Excess COLA Bank 2004
1973 or earlier
44.5%
46.5%
1974
44.0%
46.0%
1975
41.0%
43.0%
1976
34.0%
36.0%
1977
27.0%
29.0%
1978
24.5%
26.5%
1979
20.0%
22.0%
1980
13.5%
15.5%
1981
8.0%
10.0%

7. Funded Percentage – Purchasing Power Benefits
As of June 30
2002
2003
2004
PVB
$ 26.5
$ 35.4
$ 30.1
Actuarial Assets
$ 6.4
$ 4.0
$ 2.1
Unfunded Projected Liability
$ 20.1
$ 31.4
$ 27.9
Funded Percentage
24.0%
11.3%
7.1%

8. Funded Percentage as of 6/30/2004 – Non-Valuation Benefits
$ in Millions
Purchasing Power Benefits
Retiree Health Benefits
Total Non-Valuation Benefits
PVB
$ 30.1
$ 88.3
$ 118.4
Actuarial Assets
$ 2.1
$ 72.7
$ 74.8
Unfunded Projected Liability
$ 27.9
$ 15.6
$ 43.5
Funded Percentage
7.1%
82.3%
63.2%

9. Funded Percentage – Non-Valuation Benefits

10. Some Options
Examples of choices designed to show range of possibilities
There are many combinations and other variations that could be added if desired by the Board

11. Option 1
Stop payments when reserve is depleted
Projected August 2005

12. Option 2 Transfer assets from Non-Valuation Retiree Health Reserve.
Fully fund Purchasing Power COLA
Transfer Amount: $30.2 million

13. Option 3 Transfer assets from Non-Valuation Retiree Health Reserve.
Continue current benefit amount for those who are currently receiving it until they all die.
Estimated Transfer amount: $11.9 million

14. Option 4 Transfer assets from Non-Valuation Retiree Health Reserve.
Continue current benefit amount for those who are currently receiving it for 2-3 years.
Transfer Amount: Approx. $1.8 million per year

15. Questions