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 sue' 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.