Actuary's report, 1980 June 30

RECEIVED
SEP 2 1 2004
DOCUMENTS UGA LIBRARIES EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA REPORT OF ACTUARY ON THE VALUATION PREPARED AS OF JUNE 30, 1980
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CONSULTANTS

1mplnyrr.a~ 1!{rttrrmrut @Jy.atrm
Two Northside 75, Atlanta, Ga., 30318 Telephone (404) 656-2960
June 13. 1983
Ms. Mary E. Stakes Legislative Research Division Institute of Government The University of Georgia Terrell Hall Athens, Georgia 30602 Dear Mary: Enclosed is a copy of the latest valuation and information pertaining to the $350 offset. I am hopeful that the 1981 valuation will be forthcoming shortly. I am working with our actuaries toward securing answers to as many of your questions as possible. However, it is probably going to be necessary for you to contact individual departments for records pertaining to part-time workers not covered by the System, as well as maternity leave questions, since these records are maintained by the departments.
AD:bwc Enclosures (2)

G~orge B. Buck Consulting Actuaries, Inc.
340 Interstate North, Atlanta, Georgia 30339
Telephone 4041955 2488

November 13, 1981

B~ard of Trustees, ~mployees' Retirement System of Georgia Two Northside 75 A~lanta, Georgia 30318

suc'
CO'NSULTANTS

Gentlemen:

S~ction VI-(16) of the law governing the operation of the Employees' Retirement System of Georgia provides that the actuary shall make annual valuations of the contingent assets and liabilities of the Retirement System on the basis of regular interest and the tables last adopted by the Board of Trustees. We are pleased to submit herewith the results of the actuarial valuation prepared as of June 30, 1980.

In our opinion the valuation is complete and accurate, and the methodology and assumptions used are reasonable as a basis for the valuation.

I trust that the report will meet the approval of the Board and will furnish the desired information concerning the financial condition of the Retirement System.

The Table of Contents, which immediately follows, outlines the material contained in the report.

Respectfully submitted,

GEORGE B. BUCK CONSULTING ACTUARIES, INC.

(Signed) DONALD M. OVERHOLSER

Donald M. Overholser Consulting Actuary

a subsidiary of Buck Consultants,lnc.

Section I
II III
IV V
Schedule A B
C D E
F

TABLE OF CONTENTS
Item Summary of Principal Results Membership Data Assets Comments on Valuation Contributions Payable by Employers
Valuation Balance Sheet Summary of Receipts and Disbursements Outline of Actuarial Assumptions and Methods Actuarial Cost Method Summary of Main System Provisions as Interpreted for Valuation Purposes Tables of Membership Data

Page No.
1 3 4 5 6
8 9 10 13
15 21

George B. Buck Consulting Actuaries, Inc.

EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA REPORT OF ACTUARY ON THE VALUATION
PREPARED AS OF JUNE 30, 1980
SECTION I - SUMMARY OF PRINCIPAL RESULTS
1. For convenience of reference, the principal results of the valuation
are summarized below (all dollar amounts are $l,OOO's):

Valuation Date
Active members: Number Annual compensation
Retired members and Beneficiaries: Number Annual allowances
Valuation assets
Unfunded actuarial accrued liability
Recommended employer contribution rates: Normal Accrued liability
Total

June 30, 1980

50,911

$

658,575

8,843

$

42,401

$

606,154

$

777 ,795

7.91% 4.72
12.63%

2. The valuation takes into account the effect of amendments to the System enacted through the 1980 session of the General Assembly. There have been no changes since the previous valuation. The major benefit and contribution provisions of the System as reflected in the valuation are summarized in Schedule E.
3. The valuation reflects a number of changes in actuarial assumptions since the previous valuation. The interest rate assumption was increased from 4-1/2% to 7%, pending passage of enabling l~gislation, and the inflation component of the salary increase assumption was increased to 5%. Service retirements were assumed to occur at ages
George B. Buck Consuhing Actuaries, Inc.

Page 2 other than 65, particularly upon the completion of 34 years of service if prior to age 65. Adjustments were also made in the assumed rates of withdrawal after completion of five or more years of service. Schedule C of this report outlines the full set of actuarial assumptions used. These assumptions are being submitted to the Board for adoption in a separate report. 4. The entry age actuarial cost method was used to prepare the valuation, instead of the projection method used in previous years. Schedule D contains a brief description of the actuarial cost method. 5. The recoounended employer contribution rate increased from 7.75% to 12.63% of members' compensation. The reasons for the rate increase were as follows:

Previous employer contribution rate
Increase due to change in: Actuarial cost method Assumed rates of interest and salary increase Assumed rates of retirement Assumed rates of withdrawal
Total increase
Recommended employer contribution rate

7.86%
(5.50) 2.07 0.45

7.75%
4.88 12.63%

6. Coounents on the valuation results as of June 30, 1980 are given in Section IV and further discussion of the contributions is set out in Section V.

George B. Buck Consuhing Actuaries, Inc.

Page 3

SECTION II - MEMBERSHIP DATA

1. Data regarding the membership of the System for use as a basis of the

valuations were furnished by the Retirement System office. The follow-

ing table shows the number of active members and their annual compensa-

tion as of June 30, 1980 on the basis of which the valuation was

prepared.

THE NUMBER AND ANNUAL COMPENSATION OF ACTIVE MEMBERS AS OF JUNE 30, 1980

GROUP

NUMBER

ANNUAL COMPENSATION
($1,000'5)

Men Women

24,342 $ 26,569

352,013 306,562

Total

50,911 $

658,575

2. The following table shows the number of beneficiaries on the roll as of June 30, 1980, together with the amount of their annual retirement allowances payable under the System as of that date.

THE NUMBER AND ANNUAL RETIREMENT ALLOWANCES OF RETIRED MEMBERS AND BENEFICIARIES ON THE ROLL AS OF JUNE 30, 1980

GROUP

NUMBER

ANNUAL RETIREMENT ALLOWANCES* ($l,OOO's)

Service Retirements

5,726

$

27,608

Disability Retirements

960

5,741

Beneficiaries of Deceased Members

1,828

4,789

Total

8,514

$

38,138

*Amounts include cost-of-living and supplemental adjustments as of June 30, 1980.

George B. Buck Consulting Actuaries, Inc.

Page 4

Note:

In addition, there are 329 retired members and beneficiaries receiving allowances under Option 4 totaling $4,263,395.

3. Tables 1 and 2 of Schedule F give the distribution by age and by years

of credited service of the number and annual compensation of active

members included in the valuation, while Tables 3, 4 and 5 give the

number and annual retirement allowances of retired members and bene-

ficiaries included in the valuation, distributed by age.

SECTION III - ASSETS
1. Two funds are maintained for the purpose of recording the financial
transactions of the System, namely, the Annuity Savings Fund and the
Pension Accumulation Fund.
(a) Annuity Savings Fund
The Annuity Savings Fund is the fund to which are credited all contributions made by or on behalf of members together with regular interest thereon. When a member retires, or if a death benefit allowance becomes payable to his beneficiary, his accumulated contributions are transferred from the Annuity Savings Fund to the Pension Accumulation Fund. The portion of the. allowance which these contributions provide is then paid from the Pension Accumulation Fund. On June 30, 1980 the assets credited to the Annuity ~avings Fund amounted to $177,069,226.
(b) Pension Accumulation Fund
The Pension Accumulation Fund is the fund to which all income from investments and all contributions made by employers of members of the System are credited. All retirement allowance and death benefit allowance payments are disbursed from this fund. Upon the retirement of a member, or upon his death if a' death benefit allowance is payable, his accumulated contributions are transferred from the Annuity Savings Fund to this fund to provide the member-contributed portion of the allowance. On June 30, 1980 the assets credited ta the Pension Accumulation Fund amounted to $429,084,573.
2. As of June 30, 1980 the total book value of assets amounted to
$606,153,799 as reported by the independent auditor of the System.
This amount was used for valuation purposes.
George B. Buck Consu"lng Actuaries, Inc.

Page 5 3. Schedule B shows the receipts and disbursements of the System for the
two years preceding the valuation date and a reconciliation of the fund balances.
SECTION IV - COMMENTS ON VALUATION 1. Schedule A of this report contains the valuation balance' sheet which
shows the present and prospective assets and liabilities of the System as of June 30, 1980 (amounts are $l,OOO's). The valuation was prepared in accordance with the actuarial assumptions set forth in Schedule C and the actuarial cost method which is described in Schedule D. 2. The valuation balance sheet shows that the System has total prospective liabilities of $2,311,462 of which $373,258 is for the prospective benefits payable on account of present retired members and beneficiaries of deceased members and $1,938,204 is for the prospective benefits payable on account of present active members. Against these liabilities, the System has total present assets of $606,154 as of June 30, 1980. The difference of $1,705,308 between the total liabilities and the total present assets represents the present value of contributions to be made in the future. Of this amount, $340,583 is the present value of future contributions expe~ted to be made by or on behalf of members to the Annuity Savings Fund, and the balance of $1,364,725 represents the present value of future contributions payable by the employers to the Pension Accumulation Fund. 3. The employers' contributions to the System consist of normal contributions and accrued liability contributions. The valuation indicates that employer normal contributions at the rate of 7.91% of payroll are required to provide the benefits of the System for the average new member.
George B. Buck Consulting Actuaries, Inc.

Page 6 4. Prospective normal contributions at the rate of 7.91% have a present"
value of $586,930. When this amount is subtracted from $1,364,725, which is the present value of the total future contributions to be made by the employers, there remains $777,795 as the amount of prospective unfunded accrued liability contributions.
SECTION V - CONTRIBUTIONS PAYABLE BY EMPLOYERS
1. The retirement law provides that the contributions of employers shall be a percentage of the compensation of members consisting of a normal contribution rate and an accrued liability contribution rate as determined by actuarial valuation.
2. The normal contribution rate is calculated as the level percentage rate which, if applied to the compensation of the average new member during the entire period of his anticipated covered service, would be required in addition to the contributions of the member to meet the cost of all basic benefits (i.e., benefits other than post-retirement supplements) payable on his behalf. On the basis of the valuation the normal contribution rate was determined to be 7.91% of active members I compensation.
3. The accrued liability contribution rate has been established as the level percentage of compensation which will be sufficient to amortize the unfunded actuarial accrued liability within slightly less than forty years following the valuation date, on the assumption that the total payroll of active members will increase by 4-1/2% each year. On the basis of the 7% interest rate used in connection with the valuation, the accrued liability contribution rate was calculated by multiplying the unfunded actuarial accrued liability by an amortization factor of 0.04 and dividing the result by the valuation payroll. The
George B. Buck Consulting Actuaries, Inc.

Page 7 accrued liability rate determined on this basis is 4.72% of activ~ members' compensation. 4. Additional employer contributions will be required if additional postretirement supplements are granted. The estimated annual cost of each 4% post-retirement adjustment for present retired members is 0.25% of active members' compensation. 5. The following table summarizes the employer contribution rates which were determined by the June 30, 1980 valuation and are recommended for use.
RECOMMENDED EMPLOYER CONTRIBUTION RATES

CONTRIBUTION
Normal Accrued Liability
Total

PERCENTAGE OF ACTIVE MEMBERS'
COMPENSATION
7.91%
4.72
12.63%

George B. Buck Consulting Actuaries, Inc.

SCHEDULE A - VALUATION BALANCE SHEET
RESULTS OF THE VALUATION AS OF JUNE 30, 1980 SHOWING THE PRESENT AND PROSPECTIVE ASSETS AND LIABILITIES
OF THE EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA (All dollar amounts are $1,OOO's)

Page 8

ACTUARIAL LIABILITIES
(1) Present value of prospective benefits payable on account of present retired members and beneficiaries of deceased members
(2) Present value of prospective benefits payable on account of present active members: Service retirement allowances Disability retirement allowances Survivor allowances Refunds of members' contributions Total
(3) TOTAL ACTUARIAL LIABILITIES

$ 1,373,170 350,309 148,180 66,545

PRESENT AND PROSPECTIVE ASSETS
(4) Present assets: Annuity Savings Fund Pension Accumulation Fund Total present assets
(5) Present value of total future
contributions = (3)-(4)
/
(6) Present value of future member contributions to the Annuity Savings Fund
(7) Present value of future employer contributions to the Pension
= Accumulation Fund (5)-(6)
(8) Employer normal contribution rate (9) Present value of future payroll (1%) (10) Prospective normal
contributions = (8) x (9)
(11) Prospective unfunded accrued
= liability contributions (7)-(10)
(12) TOTAL PRESENT AND PROSPECTIVE ASSETS

$ 177,069 429,085
$ 1,705,308

$ 1,364,725

7.91%

$

74,201

$ 373,258
1,938,204 $ 2,311 ,462
$ 606,154
340,583
586,930 777,795 $ 2 ,311 ,462

George B. Buck Consuhlng Actuaries, Inc.

SCHEDULE. B SUMMARY OF RECEIPTS AND DISBURSEMENTS

Page 9

Receipts for the Year Contributiolls: Members Employers Total Net investment income Independent systems transfers TOTAL
Disbursements for the Year Retirement allowances Refunds to members State Employees' Assurance Department Administrative expense TOTAL
Excess of Receipts Over Disbursements

YEAR ENDING

June 30, 1980

June 30, 1979

$

28,054,870

51,744,482

$

79,799,352

41,106,414 293,635

$ 121,199,401

$

25,059,653

46,581,654

$

71,641,307

34,819,050 306,009

$ 106,766,366

$

40,423,141

$

34,553,893

7,535,527

6,226,676

33,565

27,198

658,062

622,480

$

48,650,295

$

41,430,247

$

72 ,549,106

$

65,336,119

Reconciliation of Asset Balances
Asset Balance as of the Beginning of Year
Excess of Receipts Over Disbursements
Asset Balance as of the End of Year

$ 533,604,693 72,549,106
$ 606,153,799

$ 468,268,574 65 ,336,119
$ 533,604,693

George B. Buck Consulting Actuaries, Inc.

SCHEDULE C OUTLINE OF ACTUARIAL ASSUMPTIONS AND METHODS

Page 10

VALUATION INTEREST RATE: 7% per annum, compounded annually.

SALARY INCREASES:

Age

Annual Rate

Age

Annual Rate

20

9.0%

45

5.2%

25

8.0

50

5.2

30

6.0

55

5.2

35

5.5

60

5.2

40

5.2

65

5.2

SEPARATIONS BEFORE SERVICE RETIREMENT: Representative values of the assumed annual rates of separation before service retirement are as follows:

Annual Rates of

Death

Disability

Men

Women

20

.062%

.038%

.1%

25

.077

.050

.1

30

.100

.068

.2

35

.139

.094

.3

40

.203

.136

.4

45

.362

.202

.7

50

.656

.311

1.0

55

1.057

.471

1.8

60

1.566

.750

2.9

65

2.307

1.241

George B. Buck Consulting Actuaries, Inc.

Page 11

Annual Rates of Withdrawal

Years of Service

0-1

1-2

2-3

3-4

4-5

5-10

10 & Over

Men

20

53.1% 34.0% 24.1% 16.2% 11.1% 8.0%

25

40.9

25.5

18.3

13.8

10.3

7.0

4.2%

30

33.9

23.8

15.8

13.0

9.5

5.5

4.0

35

32.2

22.1

14.9

11.3

.8.7

4.0

2.5

40

30.4

20.4

14.1

10.5

7.9

3.0

2.0

45

28.7

18.7

13.3

9.7

7.1

2.5

1.5

50

27.0

17 .0

12.4

8.9

6.3

2.0

1.0

55

24.4

15.3

11.6

8.1

5.5

1.0

.0.5

60

1.0

0.5

65

1.0

0.5

Women

20

34.6% 29.4% 24.4% 19.5% 14.9% 8.0%

25

29.1

24.0

19.1

15.3

11.6

7.0

5.5%

30

23.7

19.6

15.7

11.9

8.3

5.5

4.5

35

20.0

16.0

12.2

8.5

6.6

4.0

3.0

40

18.2

13.3

8.7

6.8

5.8

3.0

2.5

45

17 .3

11.6

. 7.8

5.9

5.4

2.5

1.5

50

16.8

11.1

7.4

5.9

5.4

2.0

1.0

55

16.4

10.7

7.0

5.5

5.0

1.0

0.5

60

1.0

0.5

65

1.0

0.5

SERVICE RETIREMENT:

Age

Annual Rate

Age

Annual Rate

60

10%

61

5

62

20

63

15

64

25

65

75

66 67 68 69 70 & over

40% 25 40 40 100

It is also assumed that 75% of active members will retire during the year in which they attain 34 years of service.

DEATHS AFTER RETIREMENT: The 1949 Annuity Mortality Table is used for the period after retirement or disability and for dependent beneficiaries.

George B. Buck Consulting Actuaries, Inc.

Page 12

Representative values of the assumed annual rates of mortality are as follows:

Age

Men

Women

Age

Men

Women

40

.202%

.135%

45

.362

.202

50

.656

.311

55

1.056

.470

60

1.566

.750

65

2.307%

1. 241%

70

3.509

2.096

75

5.450

3.583

80

8.550

6.141

85

13.418

10.476

ASSETS: Book value, as reported by the System.

VALUATION METHOD: Entry age actuarial cost method. See Schedule D for a brief description of this method.

George B. Buck Consulting Actuaries, Inc.

SCHEDULE D ACTUARIAL COST METHOD

Page 13

1. The valuation is prepared on the projected benefit basis, under which the present value, at the interest rate assumed to be earned in the future (currently 7 per cent), of each member's expected basic benefit ( i.e. benefits other than post-retirement adjustments after the valuation date) at retirement or death is determined, based on his age, service, sex and compensation. The calculations take into account the probability of a member's death or termination of employment prior to becoming eligible for a benefit, as well as the possibility of his terminating with a service, disability or survivor's benefit. Future salary increases are also anticipated. The present value of the expected basic benefits payable on account of the active members is added to the present value of the expected future payments to retired members and beneficiaries to obtain the present value of all expected basic benefits payable from the System on account of the present group of members and beneficiaries.
2. The employer contributions required to support the basic benefits of the System are determined following a level funding approach, and consist of a normal contribution and an accrued liability contribution.
3. The normal contribution is determined using the entry age actuarial cost method. Under this method, a calculation is made to determine the level percentage rate which, if applied to the compensation of the average new member during the entire period of his anticipated covered service, would be required in addition to the contributions of the member to meet the cost of all basic benefits payable on his behalf.

George B. Buck Consuning Actuaries, Inc.

Page 14 The unfunded accrued liability contributions are determined by subtracting the present value of prospective employer normal contributions and member contributions, together with the current assets held, from the present value of expected basic benefits to be paid from the System. 5. The rates necessary to support future post-retirement adjustments which may be payable in addition to the basic benefits will be determined separately on a current disbursement basis.
George B. Buck Consulting Actuaries, Inc.

SCHEDULE E
SUMMARY OF MAIN SYSTEM PROVISIONS AS INTERPRETED FOR VALUATION PURPOSES

Page 15

The Employees' Retirement System of Georgia (ERS) was established February 3, 1949 to provide retirement allowances and other benefits to members of the Retirement System of the State of Georgia. The commencement date was January 1, 1950. The following summary describes the main provisions of the System.

Member Prior Service Membership Service
George B. Buck Consuning Actuaries, Inc.

1 - DEFINITIONS

An

employee

of

a

department

participating in ERS. Membership is a

condition of employment.

Service rendered as an employee prior to January 1, 1954.

For employees of departments which became participants in ERS after the date of establishment (1950), any service prior to January 1, 1954.

Some active duty military service before January 1, 1954 may be included as prior service for employees who were members of the System prior to April 1, 1972, provided that service was not used for military or other government retirement.

Service after January 1, 1954 as a contributing member of a participating department.

For employees of departments which became participants in ERS after the date of establishment (195"0), any service between January 1, 1954 and the date of participation by the department which is purchased by the employee.

Some service as a teacher in the public schools of Georgia may be included provided that service is not being used for teacher retirement and contributions are left on deposit.

/
Forfeited Leave Creditable Service
Average Final Compensation

Page 16
Six months or more of forfeited annual or sick leave for which a member is not eligible for payment at retirement. Each 20 days of such forfeited leave is equivalent to one month of service.
Prior service plus membership service plus forfeited leave. Upon retirement, a member with 34 years of service will receive credit for the 34 years plus membership credit for the period between the 34th year and his or her 65th birthday.
The average annual compensation of a member during the 8 consecutive calendar quarters of his creditable service that will yield the highest average. No more than two 5% increases or decreases in salary may be used in this computation. An adjustment will be made to allow for the contribution previously made by the member which is now made by the State.

Normal Retirement Allowance Condition for Retirement
Amount of Allowance
Early Retirement Allowance Condition for Early Retirement

2 - BENEFITS
A member is eligible for normal retirement upon the attainment of age 65 and 10 years of creditable service (age 65 and 5 years service if a member before July 1, 1968), or 30 years of creditable service regardless of age.
The annual normal retirement allowance is equal to (A) x (B) x (C), where
(A)= 60% of average final compensation up to $4,200 plus 100% of average final compensation over $4,200,
(B)= creditable service, and
(C)= .0115 + .0003 x (creditable service up to 35 years).
A member is eligible for early retirement upon the attainment of age 60 and 10 years of creditable service (age 60 and 5 years' service if a member before July 1, 1968).

George B. Buck Consuning Actuaries, Inc.

Page 17

Amount of Allowance

The annual early retirement allowance is determined in the same manner as the normal retirement allowance based on creditable service and average final compensation as of the early retirement date. If the member has less than 30 years of creditable service, the retirement allowance is reduced 5% for each year that benefits begin before age 65.

Disability Retirement Allowance

Condition for Disability Retirement

A member is eligible for disability retirement after having at least 13 years and 4 months of service and being certified by the medical board as permanently disabled for the further performance of the duties of the position held at the time of disability.

Amount of Allowance

The annual disability retirement allowance is an immediate benefit with the amount depending upon service at the time of disability.

Service at Disability

Allowance

(1) 13 years 4 months to 18 years

75% of what the normal retirement benefit would have been had the member continued to work until age 60 with no further change in salary

(2) over 18 years to 22 years 9 months

1001. of age 60 benefit

(3) over 22 years 9 months to 27 years 6 months

751. of age 65 benefit

(4) over 27 years 6 months

100% of age 65 benefit

Involuntary Retirement

Condition for Involuntary Retirement

Member prior to April 1, 1972, termination is involuntary and without prejudice, and member has more than 18 years of membership service.

For members prior to February 13, 1962, the service requirement is more than 18 years of creditable service.

Amount of Allowance

Computed as for disability retirement.

George B. Buck Consulting Actuaries, Inc.

/
Death Benefit
Conditions
(1) Before retirement, before age 60, before completing 13 years 4 months service
(2) Before retirement, after completing 13 years 4 months service
(3) Before retirement, after age 60, more than 10 years creditable service (5 years service if member prior to July 1, 1968)
(4) After retirement

Page 18
Allowance
Refund of all employee contributions plus allowable interest.
Benefit equal to disability retirement immediately prior to death under Option 2.
Benefit equal to retirement immediately prior to death under Option 2.
Payments continued to spouse as determined by option (if any) elected before retirement.

Termination Benefits Conditions
(1) Termination with less than 10 years membership service
(2) Termination with 10 years or more membership service
Optional Benefits
Maximum Benefit
Option 1

Allowance
Return of all member contributions and employer contributions made on behalf of member with allowable interest. (If member is covered, the 1/4 of 1% of salary for group term life insurance is not refunded.)
Refund of contributions plus interest as above or, if contributions retained in fund, a deferred retirement benefit at age 60 or later as for early or normal retirement.
At application for retirement, a member must choose one of the follQwing methods of payment. All forms are of equivalent actuarial value.
Life annuity, payable to member for the member's life with the final payment (for month of member's death) going to member's designated beneficiary.
Modified cash refund, paying a reduced retirement benefit to member so t:hat, upon member's death, the beneficiary

George B. Buck Consulting Actuaries, Inc.

Option 2 Option 3
Other Options Post-Retirement Adjustments
Conditions for Adjustments
Amount of Adjustment

Page 19
receives a lump sum cash settlement equal to the difference between the member's accumulated contributions at retirement and the benefit payments due to member contributions received prior to member's death.
Joint and 100% to survivor. Member receives a reduced allowance for life with the same allowance continuing for life of beneficiary upon member's death.
Joint and 50% to survivor. Member receives a reduced allowance for life with one-half member's allowance continuing to beneficiary for life upon member's death.
Other optional forms are available with certain restrictions.

Retiree must have been receiving benefits for the previous seven months and (1) be age 62 or (2) have 30 or more years of service, or (3) have a disability entitlement from the Social Security Administration.

(1) Semi-annual cost-of-living adjustments- may be made in January and July of each year upon the recommendation of the Board of Trustees. Adjustments in the year preceding the valuation were 2% of the base retirement allowance (original allowance before deductions plus previous cost-of-living adjustments)

(2) Supplemental adjustments, when

authorized, are made in January of

each year.

'The January, 1980

adjustment was 3%.

By Members
George B. Buck Consulting Actuaries, Inc.

3 - CONTRIBUTIONS

Member contributions are 3% of annual

compensation up to $4,200 plus 5% of

annual compensation over $4,200.

A

member with 34 or more years of service

may cease contributing until age 65, when

he must resume contributing if he con-

tinues employment and wishes to receive

By Employers

Page 20
additiona~ service credit. As of July 1, 1980, the State began paying member contributions except for 1/4 of 1% of annual compensation. These State contributions paid in behalf of members are included in the member's account for refund purposes. Covered tax officials and their employees and ~overed employees of State Courts continue to pay their full member contributions.
The employers contributes at a specified percentage of member payroll determined annually by actuarial valuation.

George B. Buck Consunlng Actuertes, Inc.
/

SCHEDULE F
TABLE 1
NUMBER AND ANNUAL COMPENSATION Of MEMBERS DISTRIBUTED BY AGE AS Of JUNE 30, 1980

Page 21

MEN

WOMEN

AGe

NUM8ER

AMOUNT NUMBER

AMOUNT

1"1

3$

22,OS1

18

11

80,404

15 $ 109,913

19

101

811,802

91

131,829

20

182

1,444,576

112

1,384,965

21

206

1,691,259

260

2,147,930

22

254

2,114,779

402

3,483,222

23

373

3,359,252

648

6,006,533

24

468

4,536,544

151"

1,349,990

25

527

5,228,373

943

9,497,037

26

649

6,929,729

936

9,798,299

21

693

7,739,182

1,055

11,319,865

28

784-

9,289,617 1,099 12,062,965

29

180

9,662,756 1,118 12,481,183

30

825 10.615,151 1.098 12,583.962

31

904-

12,424,011

1,049

12,377,223

32

939

13,218,183

1,093

13,027,117

33

1,024 14.843,314 1,025 12,492,516

34

842

12,417,501

900

11,163,451

35

671

10,105,645

730

8,814,132

36

684

10,819,012

726

9,011,094

37

700 10,900,770

709

8,718,184

38

608

9,874,099

701

8.567,316

39

612

10,082,581

595

7,000,459

~

40

600

9,81B,304

604

1,324,667

41

553

8,931.562

540

6,598,969

42

545

9,000,245

545

6,448,514

43

547

8,915,177

520

6,256,729

44

510

8,392,711

486

5,820,987

45

512

8,251,440

469

5,505,595

46

533

8,491,542

504

5,863,413

41

513

8,765,553

485

5,689,265

48

516

8,276,721

431

5,226,061

49

414

1,699,583

454

5,666,838

50

473

7,563,433

389

4,618,478

51

448

6,912,450

414

4,889,284

52

489

7,632,030

412

5,031.663

53

429

6,772,831

409

4,958,096

54

441

6,851,835

381

4,811,626

55

451

7,181,832

424

5,206,833

George B. Buck Consulting Actuaries, Inc.

TABLE 1
NUMBER AND ANNUAL COMPENSATION OF MEMBERS OISTRIBUTED BY AGE AS OF JU~E 30, 1980

Page 22

CONTINUEO

MEN

NUMBER

AMOUNT

WOMEN

NUMBER

AMOUNT

56 57 58 59 60 61 62 63
64
65 66 67 68 69 10 71 72 73 14 75 76 71 79 80 91
TOTAL

408 $ 400 4C4 409 385 370 310 217 183
13B
89
47
30 ZO 17
8 8 4 1 2 1

6,702,938
5,~66,658
6,416,423 6,260,539 6,038,9<;4 5.259,174 4,863,968 3,328,243 2,192.538 Z,151,096 1,582,966
818,208 579,431 539,016 287,153 112.664 194,276
91,485 18,500 24,660 4,600

2

23,904

2

18.360

1

10,667

24,342 $352,013,219

397 $ 367 388 367 337 285
230 171
146
121 58 40
21 10
10 3 2 5

4,781,615. 4,418,331 4,804,858 4,634.0544.017,219 3,359,378 2,926,165 2,184,730 1.180.Z00
1,539,834116,956 5Z5,635
.301.235 105,382 121,506
51.385 35,810 41,020

2

16,882

1

8,200

1

5,747

26,569 $306,561,677

George B. Buck Consulting Actuaries, Inc.

TABLE 2
THE NUMBER AND ANNUAL COMPENSATION OF MEMBERS DISTRIBUTED BY
YEARS OF CREDITED SER~ICE AS OF JUNE 30, 1980

Page 23

YEARS

MEN

OF

SERV ICE NUMBER

AMOUNT

WOMEN

NUMBER

AMOUNT

0

1,215 $ 12,380,347

1,860 $ 11,512,419

1

2,526 21,357,842 3,433 34,134,184

2

2,069

22,956,928

2,401

24,520,185

3

1,646 20,301,102 2,280 24,385,145

4

1,312

18,128,981

1,824

20,288,209

5

978

14,138,263

1,319

16,083,495

6

1,466 21,141,290 2,217 25,460,211

1

1,545 22,064,158 1,107 19,854,111

8

1,426

21,261,055

1,501

18,151,281

9

1,193

11,802,891

1,115

15,011,516

10

1,136

11,122,652

1,165

14,853,115

11

875

13,950,539

966

12,306,498

12

866

13,544 ,108

766

9,951,434

13

199

13,269,603

694

8,848,012

14

689

11,268,292

500

6,679,297

15

665

11,112,744

428

5,668,658

16

494

8,553,709

321

4,389,519

17

379

6,860,207

264

3,783,201

18

332

5,965,072

228

3,319,390

19

449

8,049,291

203

3,032,880

20

346

6,458,331

167

2,355,713

21

2f1

4,869,489

154

2,183,119

22

2Se

5,825,481

140

2,036,131

23

271

5,245,9a4

121

1,790,541

24

286

5,522,109

113

1,680,992

25

186

3,474,987

a4

1,181,597

26

137

2,708,482

JJO

1,074,245

27

140

2,608,643

64

965,174

28

64

l,204,i67

91

1,318,398

29

40

836,475

66

1,056,623

30

20

470,790

32

492,401

31

53

1,125,243

29

409,617

32

67

1,330,336

19

266,099

33

39

831,510

28

418,119

34

23

478,095

15

226,672

35

13

285,916

16

242,160

George B. Buck ConsuRlng Actuaries, Inc.

TABLE 2
THE NUMBER AND ANNUAL COMPENSATION OF MEMBERS DISTRIBUTED BY
YEARS OF CREDITED SERVICE AS OF JUNE 30. 1980

CONTINUED

YEARS

MEN

Of

SEkVICE NUMBER

AMOUNT

WOMEN

NUMBER

AMOUNT

36 37 38 39 40 41 42 43 41 48
TOTAL

14 $ 284.809

8

226.229

5

127,027

2

39.864

4

119.467

3

85,626

2

19,067

24.342 $352.013,279

8$ 7 5 4 2 2 2 1
1

108.859 108.235
90.828 82.853 38.310 38.514 38.149 24.936 19.932

26.569 $306,561.677

Page 24

George B. Buck Consulting Actuaries, Inc.

Page 25

TABLE 3

THE DISTRIBUTION OF THE NUABER AND ANNUAL RETIREMENT AllOkANCES OF RETIREES
DISTRIBUTED BY AGE AS OF JUNE 30.1980

MEMBERS OF THE RETIREMENT SYSTE~

SERVICE RETIREMENTS

MEN

WOMEN

AGE

HUMBER

AMWNT NUMBER

AMOUNT

39

2$

21,215

it1

2

30,999

~2

1$

6.1it2

1t3

1

9,046

itlt

1

6,502

1

5,511t

It5

3

31.613

It6

1

9,106

Itl

1

19.460

Its

1

10,565

3

34.757

it9

6

53,462

SO

5

61.169

1

13,192

51

8

SIt ,113

3

21.621

52

12

18O,lt14

5

51t.319

53

14

211t.343

2

16,900

5~

12

180,119

it

it5,it90

55

29

It20,930

1

63.8't2

56

26

~38,Ol1

13

139,393

51

26

381.it02

10

151,119

58

31t

It" ,1M

1

10.085

59

35

468.8"

18

114,439

60

'tit

593.106

22

213.0\45

61

Itlt

423.955

39

241.518

62

11

515.511

63

432.119

63

113

130.3M

71

367,605

64

113

115.830

92

492.358

65

139

744 ..768 102

1t08.431

66

208

952.876 155

6n.OOl

61

200\

951t.836 153

611,186

68

241 1,067.119 184

l11t, 154

69

200

908.800 153

602.148

10

203

864.212 162

119.586

11

200

81tl,5It9 111

685.111

12

116

780,920 161t

625,061

13

164

620.381 153

553.182

lit

150

640.124 123

't91,992

15

115

"3.429 103

323.906

16

96

366.1t5lt

86

31it,921t

11

82

331.916

86

308,5it9

18

65

233,312

65

199,643

19

1t3

121t.'50

61

119.996

80

Its

200.930

65

185,141

George B. Buck Consulting Actuaries, Inc.

Page 26

TABLE 3

THE DISTRIBUTION OF THf MlMBER AND ANNUAL RETIREMENT ALLOWANCES OF RETIREES
DISTRIBUTED BY A'E AS OF JUNE 30.1980

MEMBERS OF THE RETIREMENT SYSTEM

SER~ICE RETIREMENTS

CONTU'UED

MEN

WlMEH

AGE

NUMBER

AMOUNT NUMBER

AMOUNT

81

3.5 $ 100.430. .9 $ 162.424

82

33

110.998

32

76.256

83

23

72.969

43

94.331

BIt

25

66.618

28

63.319

8.5

14

70.432

26

34.082

86

16

71.253

16

41.869

87

7

33.597

9

14,S51

88

10

29.801

13

29.872

89

5

31.019

12

20.953

90

3

5.757

-\

11.445

91

3

3.631

4

1.191

92

3

4.802

it

5.819

93

1

354

1

324

94

3

8,130

95

2

3,25.

91

1

1.251

98

1

329

99

1

3,222

100

1

781

TOTAL 3,132 $ 16,710.471 2,594 $ 10,891.821

George B. Buck Consulting Actuaries, Inc.

Page 27

TABLE ~

THE DISTRIBUTION Of THE NUMBER AID A~NUAL RETJREIU:HT ALLOWANCES OF JtTIREES
DISTRIBUTED 8Y AGE AS OF JUNE 30.1980

MEM8ERS OF 'HE RETIRERENT SYSTEM

DISABILITY RET IREMENTS

"EN

WOMEN

AGE

NUMBER

AMOUNT NUMBER

A"CIINT

3"

1 ..

1,630.

36

1

~,833

2 ..

8,319

31

1

5.057

38

2

15,185

39

1

12,125

2

1.S89

40

~

26.3~

~1

~

39,B17

3

19,256

42

2

11,38J.

~3

2

11.318

3

11.031

~~

5

35,3""

2

12,708

~5

3

10,110

3

27,981

"6

4

27,563

7

3~.826

~1

10

85,897

4

2~.6~8

1t8

16

115.512

2

10.115

~9

15

12~,787

7

26,360.

50

21

161.717

9

51.705

51

19

113,023

6

26.548

52

13

96.038

11

70.ta19

53

21

181.,065

3

I1t,109

5it

19

162,199

13

69.3~ "

55

29

191,527

9

56,872

56

20

155,81~ .

13

55.Ml

57

35

201,521

12

5Ch~53

58

36

311,398

14

86,583

59

~8

366,250

8

23,539

60

41

239,822

20

81,341

61

30

185,139

22

86,669

62

it3

253,6~

16

113,915

63

30

163,122

18

8S,S75

64

25

120,021

15

63,9M

6S

20.

111,8~

12

itS,150

66

17

113,569

12

39,031

67

21

121,211

12

32.6itl

68

12

63,315

a

~1.618

69

6

54,231

13

52,103

10

IS

M,ln

10

",431

George B. Buck Consulting Actuaries, Inc.

Page 28

TABL ~

THE DISTRI8UTION Of THE NUMBER AND ANNUal RETIREMENT ALLOWANCES Of RETIREES
DISTRI8UTED BY AGE AS OF ~UHE 30.1980.

MEMBERS Of THE RETIREMENT SYSTEM

DISABILITY RETIREMENTS

CONTINUED

MfN

WOllEN

AGE

NUMBER

AMOUNT NUMBER

AMWNT

11

8$

Ltl.~19

10 $

",306

12

8

59.215

5

39,915

13

3

5 ,a12

Lt

20.306

1~

2

3.351

S

11.801

15

Lt

19,520

3

9,089

16

1

10.521

3

8,157

11

1

3.132

2

5,.33

1.

3

13,581

19

1

3,153

1

2.940 .

80

1

1.991

0\

8,858

81

1

1,~98

2

5.M5

82

1

9,830

1

3.860,

84

1

5.ItLtl

85

1

3,319

81

1

2.831

TOTAL

623 $ Lt,168,398

331 1.512.~86

George B. Buck Consulting Actuaries. Inc.

Page 29

TABLE 5

THE DISTRIBUTION Of THE NUMBER AND ANNUAL RETIREMENT AllOWAN&ES OF RETIREES
DISTRIBUTED BY AGE AS OF JUNE 30.1980

BENEFICIARIES OF DECEASED ACTIVE AND RETIRED MEM8ERS
Of THE RETIREMEMT SYSTEM

MEN

WOMEN

AGE

NUMBER

AMOUNT NUMBER

AMOUNT

1-\

1$

5.872

16

1

2.216

11

1$

1.168

21

1

3.169

23

2

5.176

2S

5

8.373

26

2

2.807

1

4.1M

27

1

-\.319

28

~

6.368

-\

5.985

29

-\

6.321

3

13.103

30

-\

4.838

3

8.562

31

5

1.'2.

2

-\.935

32

5

~.762

2

5.335

33

~

~.253

0\

24.0\2

30\

8

9.031

0\

8.975

35

1

9.107

6

20.685

36

-\

-\.101

6

10.708

37

5

~.961t

Ie

30.582

38

6

1.(. .8 0 1

3

4.982

39

3

3.388

5

13.064

-\0

5

8.981

6

6.130

-\1

0\

12.915

6

12.822

42

0\

1.106

-\

16.582

-\3

5

1.512

3

11.246

-\4

6

15.322

45

2

-\66

12

50.579

0\6

3

5.215

16

59.939

-\7

6

5.961

11

29.319

0\8

6

8.189

9

33.759

49

3

1.266

18

63.660 .

SO

3

8.312

19

111.881

George B. Buck Consulting Actuaries, Inc.

Page 30

TABLE 5

THE DISTRIBUTION Of THE NUMBER AND ANNUAL
RETIREMENT ALLOWANCES Of RETIREES DISTRIBUTED BY AGE AS OF JUNE 30.1980

BENEfiCIARIES Of DECEASED ACTIVE AND RETIRED MEMBERS OF THE RETJRE"ENT SYSTE"

CONTINUED

"EN

WO"EN

AGE

NUMBER

AMOUNT NU"BER

AMWNT

51

5$

3.061

10 $

31.849

52

10

22.93~

17

58.996

53

10

1,5~

15

31.160

51t

1

10.515

21

101.688

55

10

12.346

22

99.140

56

8

11.151

22

11.6

51

9

13e675

26

1~.678

58

13

12.-\-51

2~

80,135

59

11

20,201

4\4\

I11t.587

60

18

35.293

29

50.836

61

10

19,661

~3

99.276

62

10

22.652

34\

90.11t8

63

15

36.568

38

12,6~1

61t

15

19.399

1t3

99.'t1t9

65

11

35,891

42

146.508

66

13

31 92

4\9

129.658

67

11

44.11a

50

I1t2.220

68 69

22 23

53.881 43.6M

"58

121.175 151t.51t7

10.

25

80.130

55

153.291

11

28

58.330

1t3

168.558

12

11

44 .402

Itl

113,6M

13

19

35.,213

30

82.811

14

28

60,819

2~

10\,658

15

26

1t8.929

29

62.991

16

15

58.166

20

31.925

11

29

61,818

16

39.62.

18

22

56.639

14

67.611

19

13

33.523

a

4\0.263

80

23

1t2.1"

4

4.863

George B. Buck ConSUlting Actuaries, Inc.

11I1I1~flll~~~III~fl~~~ m~~~~mlill
3 2108 03282 2523 r TAILE 5

Page 31

THE DISTRIBUTION OF THE NUMBER AND ANNUAL RETIREMENT AllC~ANCES Of RETIREES
DISTRIBUTED BY AGE AS OF JUNE 30,1980

BENEfICIARIES Of DECEASED ACT I VE AND RET IRED MEMBERS
Of THE RETIREMENT SYStEM

CONTINUED

MEN

WDMEH

AGE

NUMBER

AMOUNT NUMBER

AMQUNT

81

11 .$

26,795

8$

12,221

82

23

95.289

4

6.114

83

10

22.115

3

9.652

8~

11

11 .. 3 2 8

3

3.034

85

18

31.618

5

8,641

86

1

14.461

2

5.96.

81

6

14.-\69

2

11.1t08

88

5

19.593

1

860

89

6

6,818

1

11.825

90

4

1.412

1

10.915

91

3

4.131

92

1

192

93

2

1.329

94

2

14.411

95

1

14.406

98

2

1,118

TOTAL

111 .$ 1.494.101 1.111 .$ 3.294.412

George B. Buck Consulting Actuaries, Inc.