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

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

3. Historical
Census
Data

4. Census Data Participant Counts 2018 2017 2016 2015
July 1, July 1, July 1, July 1,
Actives
Terminated Vested
Retirees
Beneficiaries
Total
Net change year-to-year
Participant Changes during the year
3 inactive corrected from Beneficiary to Retiree
20 Retiree deaths during the year, only 6 had a beneficiary

5. Census Data

6. Participant Statistics as of July 1:
Census Data
Participant Statistics as of July 1:
Actives
Average age
Average service
Average pay $79,380 $78,840 $66,211 $64,710
Terminated Vested
Average age
Average monthly benefit $458 $458 $451 $518
Retirees
Average age
Average monthly benefit $1,295 $1,308 $1,261 $1,237
Beneficiaries
Average age
Average monthly benefit $937 $881 $874 $852

7. Census Data

8. Plan
Assets

9. 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

10. Plan Assets

11. Plan Assets

12. Plan Assets

13. Plan
Liabilities

14. 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?

15. Plan Liabilities

16. Plan Liabilities

17. Valuation
Results
Summary

18. Valuation Results Summary
Accounting Results (GASB 68) as of July 1:
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)

19. Valuation Results Summary

20. Valuation Results Summary
Funding Results as of July 1:
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
Discount Rate 2.25% 5.75% % %
(All dollar figures in $1,000)

21. Valuation Results Summary

22. Closing
Questions?