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August 9, 2013 Maze & Associates 3478 Buskirk Ave., Suite 214 Pleasant Hill, CA 94523 RE: Alameda-Contra Costa Transit D...

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August 9, 2013 Maze & Associates 3478 Buskirk Ave., Suite 214 Pleasant Hill, CA 94523 RE: Alameda-Contra Costa Transit District ATU Local 192 Benefits Trust Plan as of June 30, 2013 Dear Maze & Associates: Below and enclosed is the information requested in your attached letter to Buck Consultants from Ralph Martini dated July 1, 2013 regarding Alameda-Contra Costa Transit District’s ATU Local 192 Benefits Trust Plan for the fiscal year ending June 30, 2012. A copy of Buck’s most recent valuation results letter as of July 1, 2012 is also enclosed. This information will be referred to as responses are provided below in the order requested. Requested Audit Information 1. General Plan information: (a) The Plan is a single-employer plan. (b) See page 1 of the September 6, 2012 dated valuation results letter attached for a description of the Substantive Plan as valued. (c) See page 1 of the September 6, 2012 dated valuation results letter attached for a description of the Substantive Plan as valued. (d) See page 1 of the September 6, 2012 dated valuation results letter attached for a description of the Substantive Plan as valued. (e) See page 1 of the September 6, 2012 dated valuation results letter attached for a description of the Substantive Plan as valued. (f) No known legal or contractual limitations on the maximum amount of A-C Transit District’s contribution. (g) No known changes for or during the current year for questions 1.(a)-1.(f). 2. No known long-term contracts for contributions or shortfalls other than as already referred to. 3. N/A, see valuation report for this information. 4. Census listings used in the valuation will be sent electronically via secure upload (a) The data was provided by A-C Transit District as of July 1, 2012. (b) Yes, to our knowledge, all employees currently covered by the Plan’s provisions were included in the census. (c) No, there was no information included in the participant census that was excluded from the valuation. (d) No, the actuarial valuation and census data were both as of July 1, 2012.

Maze & Associates August 9, 2013 Page 2 of 3

5. Actuarial Information for the year ending June 30, 2013: Net OPEB Obligation (Asset) 7/1/2012

$1,404,000

Annual OPEB cost: Annual Required Contribution (ARC)

$5,013,000

Interest on Net OPEB Obligation

70,000

Adjustments to the ARC

(60,000)

Annual OPEB Cost

$5,023,000

Contributions made

$3,008,000 Change in Net OPEB Obligation

Net OPEB Obligation (Asset) 6/30/2013

2,015,000 $ 3,419,000

6. Information regarding the valuation: (a) Yes, current contribution level is significantly less than the calculated ARC. We understand that the current contribution level is based on collective bargaining agreements. (b) Projected Unit Credit actuarial cost method. (c) Market Value of Assets is used with no adjustments. 7. Information as of the 7/1/2012 actuarial valuation: Actuarial Valuation Date Actuarial Value of Plan Assets

$

7/1/2012 7,100,000

Actuarial Accrued Liability (AAL) Total Unfunded Actuarial Accrued Liability (UAAL)

78,305,000 $

Annual Covered Payroll

N/A, benefits are not related to payroll

71,205,000

8. Information about actuarial assumptions: (a)-(f) See Appendix A of the valuation result letter for all current valuation assumptions. Overall payroll is assumed to grow 3.5% per year. 9. Amortization of the unfunded actuarial liability is over 30 years on an open basis level percentage of projected payroll. 10. No known plan amendments were not considered in the latest valuation. 11. No, to our knowledge the plan has not been amended, fully, or partially terminated since the date of the valuation. 12. N/A, the answer was no.

Maze & Associates August 9, 2013 Page 3 of 3 13. N/A, we are not aware of any changes in benefits, or demographics that would have a significant effect on the results of the valuation. The mortality assumption was altered from a fully generational basis to a static projection to 2027 for actives and 2019 for retirees. The trend assumption was altered from an assumed 10% for FY2012, grading down 1% each year to 5.0% for FY2017 and beyond to an assumed trend rate of 10% for FY2013 grading down 1% each year to 5.0% for FY2018 and beyond. The assumed payroll growth assumption used in developing the amortization amount for the Annual Required Contribution has been reduced from 5.0% to 3.5% for this valuation. 14. N/A, no known plan amendments since the prior valuation. 15. Yes, all information in questions 5-14 was determined in accordance with GASB Statement Nos. 43 and 45. 16. General Information: (a) I am not aware of any relationship that exists with the Plan or the Plan sponsor that may impair or appear to impair the objectivity of our work. (b) $0 in unpaid fees due to Buck Consultants by the Plan on June 30, 2013. (c) N/A, no additional information at this time. Please let me know if additional information is needed to assist in your audit. Sincerely,

Kristi C Olivas, FSA, MAAA, FCA Director and Consulting Actuary August 7, 2013

Enclosures

cc: Ralph Martini, Controller, Alameda-Contra Costa Transit District Charlie Chittenden, Principal, Buck Consultants