bottom we're identifying from our unfunded liability the interest costs on that and that's something we're starting to compare from fund to fund yours is a very good situation the railroad on the unfunded liability is 3 and a half percent payroll so 3 and a half is the interest on the united way funded liability so our california survey by comparison as of just about 30th 2013 was median of 13 percent yours was significantly better than we saw on this slide we're showing the changes in the membership the new things the changes in the liability and the funds are

maturing over the years currently about 60 percent of liability is attributable to members who are currently receiving benefits an increase from 50 percent a part of the maturation of the funds and now over one active member for each retiree and that used to be closer to one .7 that medians you've got a smaller active base to support of overall fund we're showing some different breaks down of the contribution rates the first section is the basic contributions rate we've circulated this is before the adjustments to employee contribution rates so we've calibrated this as 82 percent

here and the adjustments and we those juchlts are varied by employee and we say estimate the aggregate the employer contribution rates to be 19.2 percent of pay and the employee contribution rate 11 point one percent that's a decrease of 4 percent of pay for the employer and the employees stated in the same range their rate is about the same bottom we show the praekd of that same contribution rate between the normal costs of additional benefits accruing every year and that payment is breakdown both the interest versus the amount our paying if

principle this is a great breakdown many systems the payment on principle is at or no more zero and some cases zero our contributing 8 percent towards paying down the principle of the unfunded money. >> this slide shows would you we estimate the cost sharing have enough time under prop c and specific to an employer contribution rate of 22 psi points 8 percent that's the contribution rate for 2016 adjustment is made based in members when they were hired their pay waiting rate and whether or not the members are in a safety group or

miscellaneous group the percentages you're seeing the base before the adjustments and then the adjusted rates that are adjusted for the cost-share on the right-hand side of the vied an aggregate about 3.56 percent of a cost adjustment based on the 22 p.s. .8 percent actual determined rate this slide summarizes the new policy kicked out in august of 2014 and basically there were no changed for prior charter amendments their am tied over 14 or 5 years depending on who is effected by the amendment and the 15 year rolling ambition for a change has been replied by the following schedule and for the

most part there are longer amortizations you'll be paying off the urban funded over the number of years the rolling period you've never paid that unfunded this slow down shows the changes from last year's contributions rate to this year's contribution rate and nylon stockings that by sources i'll highlight the birth reason for the change in the contribution rate for the asset gain and as bill said it was doug due to the mandating thought you unlawful percentage and recognizing some gains that decreases the contribution rate eye by two and a half percent and then the doctor in the investment return assumption to 7 and a half percent increased did contribution rate that was

offsetting the liability gain this slide is the same story as the previous slide in terms of the changes in 9 unfounded a you're seeing our biggest change due to the investment gain a slight increase in the unfunded change in the economic summation that again was offset by the liability gain this slide shows did historical experience in the gains and losses of the plan have you at gains and losses when they are different from the actual experience i'll see the draft is driven by the black line the experience of the plan so from 2009 to 2013 you're seeing those

say a as a result of 2009 market crash and now in 2014 we're seeking a large investment gain which bill has offered from the deferred gains we're projecting there are gains in the future as well. >> this graft is new we took two previous grafts of the history of the fund and our preservations into one groofl this is the funded status and so the purple bars or the bars are the liabilities and the purple are the liability for the plan and the gray and black bars are the projected liability with the black bars being years in with which we're projecting they'll be paid the lines are the assets the green resign is

your market rate assets and the bylaw blue lines are the smooth assets and historically the assets the market rate assets their more volatile than the smooth wellness at 2014 which is the last purple bar number two, percent funded and will be projected to be one hundred percent projected in 2019 if all the assumptions are met again, this is a new graph we're showing the ago gait contribution recites the gold bar portions are your employer rates and the purple are our member rates and back in 2007 and 8 they were around five or six rate and in fiscal year in 2016 that is the

current contribution rate we determined in the r79 actual rates we're shown a decrease in our contribution rate and over the next 10 years decreases in the rate due to the gains we've spoken of and chart amendments that be will paid off a decrease in the contribution rate. >> so we have standard economic scenarios we run the projections through this table kind of oils we have a positive and negative one shot 5 year to year moderate and 5 years significant plus or negative their derived from the capital market assumption distribution of returns over one or 5 year period they're not meant to indicate a projection

of what the numbers will be only the sensitivity of the various investment returns we we so a series off grafts showing the positive scenario on top and negative numbers on the bottom and funded status by contributions so positive returns increased the liberal hood of a cola and funding status in negative will wipeout the supplemental cola i think as i flip through those things the things that struck me those reflect the cost sharing by the way as well the negative scenarios used that $2 billion curb so on so the contribution

rates don't go up like they do in the past like a one year shock the negative scenario the contribution rates remained level this was after the negative scenario that's the message that come out of those it that you built up that curb on that provides protection against the medium contribution with that, the last slide in here on page 21 we put in a zero percent return for the current fiscal year because we understand current returns for this year are zero so we held that projection it is enough to eliminate the projected

supplemental cola rate in the baseline with that we'll take questions and have the live model in monikers to consider other scenarios. >> i'd like to point out the news for the city is there is an $80 million reduction in employer tricked for the budget part of this we've benefit signaling to the mayors budget office they expected it but there is roughly based on payroll it is - well on page 6 and well, that's for the system as a whole not only the city but the employer reduction is $83 million with the kaurgsz. >> so for budget are purposes this is good news the fwe 22.8

percent rate didn't provide relief for the actively employees the point of relief is 22.5 but if we go forwarded the 19.2 will provide the relief in the fiscal year for the actual employees but the trigger point for relief is 22 that is 5 so we're very close to it but not achieving it this year but projected to reach that point if not more relieve for the fiscal year and so the current chart with the zero percent of the fiscal year 2015 the employee rate doctors from 10 point to two points lower and questions and commissioner driscoll. >> not a trigger but the

appendix for this report will be based on barnes this plan and two it was talked about they have extra cash for the budget unexcelling if they want to hypotheses the money we can get the 22.5 for that. >> we anticipate the city will continue to be interested in prepaying which they did for the first time this year but this is the first time we're provided what we're estimating banls the projected based salary growth with the payment is after cost sharing i'll say the city has a different approach to determine the cost sharing we do ours we believe is well, we know it's based on actual payroll but in my event their taking

advantage of the fact they can give us the money on july 1st and receive a discount of what they what have paid paycheck to paycheck. >> this goes into effect in july. >> there are union communicating that directly to - every mark this will be february i send a letter out to the mayors board of supervisors and the labor and all interested parties now and then you've identified a contribution rate of 22.8 and the impact on actually employees is a follows the bands of wages covered wages generally speaking folks who make less than $50,000 arriving will adjust it our cip and they pay no additional contributions

folks that make $10,150,000 make one level the contributions than folks over $100,000 make additional contributions it's communicated to all the labor organizations as well as the city. >> just to labor not to individuals. >> it's an engagement in 9 newsletter and i'm concerned about the 20 hundred will not get it. >> it will be on our website. >> make sure that - >> pardon. >> people don't check your website. >> we have historic news last night in this meeting hopefully folks will have an increased interest in the website. >> any other questions. >> we advertise free money. >> no give a ways but - >> i have one do you run stress

test when you distribute it do you use zero for 2015 and don't one average return for that the past years don't do it now but anchorage in the return for the past 20 years. >> the past 10 years and 20 years average. >> commissioners. >> what our return was we'll see how it goes. >> what zero for the first year. >> yeah. correct. >> great. >> chair will entertain the motion to adopt the actuary funding results accommodations on item 12 seeing none, public

comment is closed all in favor, say i. passes unanimously call item 13. >> item 13 action of the adaptation employees contribution. >> we'll accept the report as presented. >> open up for public comment on item 13. >> seeing none, public comment is closed. any questions on this all in favor, say i. >> i. >> passes unanimously thank you very much item number 14 please. commissioner driscoll. >> you want to call the item. >> this was what two year i show is this was a two year budgeted this year is a continuation so we made no

significant changes and affirmed the last items were yet to be filled and the budget hirings there are still online do we call him chief executive officer he made a positive report about the management the audit letter in glijdz glitches a positive report and the review on the captured commitment that was reviewed and the numbers were there more and more merchandise are trying to stay awe from the soft issues. >> any questions commissioners. >> seeing none i'll corp 15.

>> the comment decision item only thank you very much item 16. >> discussion item update on the economic interests and other filing requirements. >> it's that time again those are die by april 21st and yourselves must be filed electronically we've provide you all the information related to getting those filed trop by april 1st and do a followup reminder as also the city attorney staff we're available to help folks if you have questions on our forms seven hundred. >> great any questions seeing none open up for public comment on item 16 seeing none, public comment is closed thank you jay can you call item 17. >> item 17 an action item approve the interpretation of the term shortage in the sf

plan sir. >> actually, this is a proposal where we've been asked to look at the definition of shortage which is not defined in the charter or the administrative code we talk about the property laws and form spouses and domestic patrons are eligible to receive monthly benefits when the member becomes eligible to retire for service regardless in the employee continues to work this was a recommendation a they've add to pick up the payment on behalf of the members the gilmore case basically said the member had been responsible for making sure those payment are made if they choose to continue to work and the retirement system mind we'll

make an those payments on our on behalf there's an accomodation of a debt if it's unpaid at the time the member retires a reduction in the members earned benefits and it is very similar to the shortages we normally talk about where folks may reduce contributions and at retirement they must pay those back in order to get a full benefit otherwise they have a reduction based on the missed contribution we'll request the board approve that if approved will allow telephone pole people to use their 468 plans to pay off the debt prior to retirement and we'll be bringing back to you more research to potentially on this up for monthly pretax

agreements where they can pay it back to prepayroll discussions to allow tour transfers and role offers i'll be happy to answer any questions. >> again questions for the executive director. >> i have a couple of questions. >> first i recognize karen i've been working on this for acquit some. thank you for your time and effort and jay and katie as well i think this is an important benefit adjustment that will certainly benefit a lot of members that want the chance to return their retirement back to full states in terms of timeline for someone actually being able to take advantage of this is it ready to go tomorrow or when do you expect. >> once the board praufdz that

it will be in effective tomorrow. >> okay. >> and we will figure out how to announce it folks that have gilmore building department this year's three or four hundred we don't know what state they're close to retirement but do a targeted mailing to the folks there's a new option you you mention on the repayment of the gilmore debt. >> thank you you thank you very much commissioner driscoll. >> you write that letter or have that educational piece in the letter for those how who have come down it has to be written in simple english the gilmore act and the time to pay it off or not pay it off it's

not well understood at all and the motion i'm confused about is that a continental co-change to require or not require a pretax i couldn'tful understand that. >> the qualified plan to qualified the transfer automatically i mean you're from the 457 rolling into to the qualified plan it automatically is pretax dollars and so the way it is becoming a non-taxable event the nature of the funds don't change the remaining issue whether we have pretax deductions into into pca this off. >> it's an advantage but we allow them to do this.

>> actually there's a growing debt if i want to start pca paying that off we have to freeze it at this point but continue there's going to be a tennessee debt at the end of someone's career when they can know the exact dollar this is unusually what people wish they had the phone money and more likely to have a 457 plan so we feel it's important this go forward we'll continue with the pretax issues as to relates to this since we've adapted those rules you can buy certain parental service and other types of concerns not included that the pretax service. >> as we said you'll precede

without the pretax. >> i understand the motion. >> i think it's a great benefit say you indicated someone brought it to us rather than us coming up with that on our own who asked us to look at it. >> actually a number of employees like i said they know it could be a couple of thousand dollars gee would you look at the possibility it been in the works for over a year. >> great now, when we advance advancing money to one it's entitled to it what trick or treat when they pay back what's the trick or treat and the planned interest is at 4 percent. >> is that a impounded rate or on the sum at the end.

>> impounded. >> great. >> chair will entertain a motion. >> i'll move we adapt staffs recommendation. >> open up for public comment on item 17 seeing none, public is closed all in favor, say i. >> i. >> passed unanimously item number 18 please. >> i have two things to report one was lecturer the commission advert went to a sunshine ordinance to defend the retirement board and myself against anchors we violated the shons at your december meeting by not having sufficiently described the action item the allocation items and not having copies of a because of a motion

that was a memo dated depress third i'll say that the person that brought the complaint was mr. patrick shaw and i'm pleased to say that of i don't think how many departments that actually folks that came down the task force found no violation either the lack of notice or the availability of the materials so that was again, we're not going to - we might break the record of how long we were there but historic news i want to make sure that in particular commissioner driscoll is going to hear this i've worked here for 6 years and started a website with with a calculator

when i say soft launched we soft launched to today, we intend to do some more soft testing but sending nos out to the retired employees that, in fact, how they can log on it is will be a secure portal people see their balances and service credits and use those to model our retirement benefits for dates spot future i'll say that i feel confident it is a good circulate it was built and maintained by our actuary it will continue for retirees it is 1099 r season for those of you the