CITY COUNCIL WORKSHOP SUPPLEMENTAL

October 13, 2022 13 ACTUARIAL ASSUMPTION HIGHLIGHTS June 30, 2019 Valuation June 30, 2021 Valuation  Valuation Date  June 30, 2019  Fiscal Years 20/21 & 21/22  June 30, 2021  Fiscal Years 22/23 & 23/24  Discount Rate  6.75%, Pre-funded through CERBT Strategy #1  6.25%, Pre-funded through CERBT Strategy #1  Payroll Increases  Aggregate increase –3.00%  Merit Increases – CalPERS 1997-15 Experience Study  Aggregate increase –2.75%  Merit Increases – CalPERS 2000-19 Experience Study  General Inflation  2.75%  2.50%  Mortality, Disability, Termination  CalPERS 1997-2015 Experience Study  Post-retirement mortality improvement projection Scale MP-2019  CalPERS 2000-2019 Experience Study  Mortality improvement projection Scale MP-2021 October 13, 2022 14 ACTUARIAL ASSUMPTION HIGHLIGHTS June 30, 2019 Valuation June 30, 2021 Valuation  Medical Healthcare Trend Increase from Prior Year Year Non- Medicare Medicare 2019 Actual Premiums/Claims 2020 Actual Premiums/Claims 2021 7.25% 6.30% 2022 7.00% 6.10% 2023 6.75% 5.90% 2024 6.50% 5.70% 2025 6.25% 5.50% 2026 6.00% 5.30% 2027 5.80% 5.15% 2028 5.60% 5.00% 2029 5.40% 4.85% 2030 5.20% 4.70% 2031-2035 5.05% 4.60% 2036-2045 4.90% 4.50% 2046-2055 4.75% 4.45% 2056-2065 4.60% 4.40% 2066-2075 4.30% 4.20% 2076+ 4.00% 4.00% Increase from Prior Year Year Non- Medicare Medicare Kaiser Other 2019 n/a 2020 n/a 2021 Actual Premiums/Claims 2022 Actual Premiums/Claims 2023 6.50% 4.60% 5.65% 2024 6.25% 4.45% 5.45% 2025 6.00% 4.35% 5.25% 2026 5.75% 4.25% 5.05% 2027 5.55% 4.20% 4.90% 2028 5.35% 4.15% 4.75% 2029 5.15% 4.10% 4.60% 2030 4.95% 4.05% 4.45% 2031-35 4.80% 4.00% 4.35% 2036-45 4.65% 3.95% 4.25% 2046-55 4.50% 3.90% 4.20% 2056-65 4.35% 3.85% 4.15% 2066-75 4.05% 3.80% 3.95% 2076+ 3.75% 3.75% 3.75%