2012-07-23 Study Council Actuarial Report

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UNIVERSITY CITYCOUNCIL STUDY SESSION 5th floor of City Hall 6801 Delmar July 23, 2012 th The City Council Study Session was held in the Chambers, 5 floor of City Hall on July 23, 2012. Mayor Pro-Tem Arthur Sharpe, Jr. called the Study Session to order at 5:30 p.m. In addition to the Mayor Pro-Tem Sharpe, the following members of the Council were present: Ms. Paulette Carr Mr. Stephen Kraft arrived at 5:45 Mr. Terry Crow Mr. Michael Glickert Also in attendance were City Manager Lehman Walker and Stephen Siepman from Buck Consultants. Mr. Siepman was present to review their Acturarial Valuation Reports for Police and Firefighters’ Retirement System and the Non-uniformed Employees Retirement System. Mayor Pro-Tem Sharpe asked if there were any questions, changes or additions to Council’s Regular Session Agenda. Mr. Glickert asked if anyone had any discussion points on item number 5 on the City Manager’s Report. It was agreed that item number 5 would be removed from the City Manager’s Report. Mr. Glickert said he wanted to make a motion to request a RFP be sent to look at a traffic study of the Loop. He was not sure if he would do it under item number 5 in the City Manager’s report or under Council comments. Mr. Sharpe noted that by consensus, City Manager’s report #5 would be removed and Mr. Glickert could make his motion where he said. Mr. Stephen Siepman presented the Acturarial Valuation Report results of the City of University City Police and Firefighters’ Retirement System and the Non-uniform Retirement System for the year beginning January 1, 2012. The results of the January 1, 2012, valuation revealed that the Police and Firefighters’ plan had an unfunded Accrued Liability of $4,729,410 as compared to January 1, 2011, unfunded Accrued Liability of $2,553,269. The unfunded Accrued Liability showed an additional $2,176,141 was needed from 2011 to 2012. It was explained that the change was mainly due to a change in the mortality table assumption. With the increase in the underfunding, the amount was still below the assumed rate of 6.5%. This assumed change in rate to 6.5% also provided additional underfunding. The Non-uniform Employees Acturarial Valuation Report revealed that both the Library and the City costs have increased since the prior 2011 valuation. In 2011, the Non-uniform plan was underfunded by $3,317,203 and as of January 1, 2012, the plan was underfunded by $4,478,879. The increase in the amount of underfunding was primarily due to a change in the mortality assumptions. Additionally there was a demographic experience loss and a lower than expected return on assets. 1