2011 Cook County Pension Fund Actuary Report

Download 2011 Cook County Pension Fund Actuary Report

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The report on the Cook County Pension Fund for 2011


<ul><li> 1. COUNTY EMPLOYEES ANNUITYAND BENEFIT FUND OF COOK COUNTY ACTUARIAL VALUATION AS OF DECEMBER 31,2011</li></ul> <p> 2. 29 SOUTH LaSALLE STREET SUITE 735GOLDSTEIN &amp; ASSOCIATESCHICAGO, ILLINOIS 60603PHONE (312) 726-5877FAX (312) 726-4323Actuaries and ConsultantsApril 25, 2012Board of TrusteesCounty Employees Annuityand Benefit Fund of Cook County33 North Dearborn Street, Suite 1000Chicago, Illinois 60602Re: Actuarial Valuation as of December 31, 2011Dear Board Members:We are pleased to submit our actuarial report on the financial position and funding requirementsof the County Employees Annuity and Benefit Fund of Cook County based on the actuarialvaluation as of December 31,2011.The report consists of 10 Sections and 4 Appendices as follows:Page No.Section A- Purpose and Summary1Section B- Data Used For Valuation2Section C- Fund Provisions 11Section D- Actuarial Assumptions and Cost Method 11Section E- Actuarial Liability 12Section F- Reconciliation of Change in Unfunded Liability14Section G- Employers Normal Cost16Section H- Actuarially Determined Contribution Requirement 17Section I- Solvency Test 19Section J- Certification 21Appendix 1 - Summary of Actuarial Assumptions and Actuarial Cost Method22Appendix 2 - Summary of Principal Provisions 25Appendix 3 - Glossary of Terms 31Appendix 4 - Summary of Legislative Changes32We would be pleased to discuss any aspects of this report with you at your convenience.Respectfully submitted,Sander Goldstein, MAAAConsulting ActuaryCarl J. Smedinghoff, ASAActuaiy 3. A. PURPOSE AND SUMMARYFor purposes of GASB Statement No. 25 and GASB Statement No. 43, we have performed separateactuarial valuations of the pension benefits and retiree health insurance benefits provided by theCounty Employees Annuity and Benefit Fund of Cook County and have prepared actuarial reportsbased on these valuations.As has been done in past years, we have also performed a combined actuarial valuation of thepension and retiree health insurance benefits provided by the Fund to measure the overall fundedstatus and contribution requirements of the Fund. We believe that such a combined valuation isrequired under Section 9-199 of the Illinois Pension Code which provides that the Fund shall submita report each year "containing a detailed statement of the affairs of the Fund, its income andexpenditures, and assets and liabilities ". This report is intended to present the results of thecombined valuation. The results of the combined valuation are summarized below:1. Total Actuarial Liability$ 13,724,012,3992. Actuarial Value of Assets 7,897,102,1163. Unfunded Actuarial Liability5,826,910,2834. Funded Ratio 57.5%5. Employers Normal Cost for 2012 as a Percent of Payroll 12.46%6. Actuarially Determined Contribution Requirement For Year Beginning January 1, 2012 655,800,1007. Expected Employer Contribution from Tax Levy for 2012193,372,210 4. B. DATA USED FOR THE VALUATIONParticipant Data. The participant data required to carry out the valuation was supplied by the Fund.The membership of the Fund as of December 31, 2011, on which the valuation was based, issummarized in Exhibit 1. It can be seen that there were 22,037 active contributors, 15,866 membersreceiving benefits, and 12,584 inactive members included in the valuation. The total active payroll asof December 31,2011 was $1,456,444,123. 5. EXHIBIT 1Summary of Membership Data Year Ending December 31,2011 20101. Number of Members (a) Active Members (i) Vested 13,78414,279 (ii) Non-vested 8,253 8.886 (iii) Total Active Members 22,03723,165 (b) Members Receiving (i) Retirement Annuities 13,023 12,460 (ii) Surviving Spouses Annuities 2,4092,394 (iii) Childrens Annuities123124 (iv) Ordinary Disability Benefits 302337 (v) Duty Disability Benefits9 18 (c) Inactive Members 12,584 12.148 (d) Total50,48750,6462. Annual Salaries (a) Total Salary $ 1,456,444,123$1,494,093,569 (b) Average Salary66,09164,4983. Total Accumulated Contributions of Active Members$1,641,038,477 $ 1,639,114,5584. Annual Benefit Payments Currently Being Made (a) Retirement Annuities $ 447,109,007$ 406,441,204 (b) Surviving Spouses Annuities33,216,512 30,699,418 (c) Childrens Annuities 628,468683,087 (d) Ordinary Disability Benefits 6,824,3707,975,420 (e) Duty Disability Benefits77,189110.144 (f) Total Annual Benefit Payments$ 487,885,546$ 445,909,273An age and service distribution for active members is provided in Exhibit 2. A breakdown ofretirement and surviving spouse annuitants classified by age is provided in Exhibit 3. Age and salarystatistics for male and female active members are provided in Exhibit 4. Exhibit 5 provides similarage and salary statistics by age at entrance. 6. EXHIBIT 2 AGE AND SERVICE DISTRIBUTION OF ACTIVE MEMBERS Year 2011Number of Members and Average Salaries by Age and Service Grouping(Male and Female Combined) Years of Service Age</p>