Ingham County

September 14, 2016

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Just starting to collect information on Ingham County, and not with any plan or purpose. Mostly related to stories I'm working on.

 

Actuarial valuation reports

 

 

As of December 31

1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011,  
    2012, 2013, 2014, 2015  

 

Pension funding history

 

Pensions are funded from 3 sources: earnings on investments, member contributions and payments from the county. The amounts the county is required to pay are determined by the actuarial valuations. Payments are made at the end of the year, after the actuarial valuations come out.

 

The source of the following is a section in the actuarial valuation called "Historical Funding Progress."

 

Ingham County

As of

December 31:

Actuarial Value

of Assets

Actuarial

Accrued Liability

Percentage

Funded

Unfunded Actuarial

Accrued Liability

1987

54,072,938

39,645,235

136%

(14,427,703)

1988

57,889,961

44,776,267

129%

(13,113,694)

1989

64,949,909

52,525,297

124%

(12,424,612)

1990

71,084,865

61,520,840

116%

(9,564,025)

1991

79,736,359

69,567,734

115%

(10,168,625)

1992

50,968,120

47,237,433

108%

(3,730,687)

1993

52,687,283

66,392,574

79%

13,705,291

1994

56,238,777

82,445,154

68%

26,206,377

1995

62,529,929

91,267,612

69%

28,737,683

1996

70,095,587

100,596,375

70%

30,500,788

1997

83,334,248

113,279,199

74%

29,944,951

1998

95,427,165

129,697,752

74%

34,270,587

1999

111,156,340

137,512,089

81%

26,355,749

2000

123,308,414

152,754,990

81%

29,446,576

2001

133,055,221

165,645,014

80%

32,589,793

2002

138,299,599

183,747,506

75%

45,447,907

2003

150,287,493

199,547,894

75%

49,260,401

2004

162,405,350

215,946,290

75%

53,540,940

2005

173,502,595

228,698,783

76%

55,196,188

2006

187,358,412

243,300,405

77%

55,941,993

2007

202,178,200

260,328,809

78%

58,150,609

2008

210,089,101

277,233,448

76%

67,144,347

2009

219,217,266

288,190,459

76%

68,973,193

2010

227,832,071

304,134,483

75%

76,302,412

2011

235,277,224

322,746,120

73%

87,468,896

2012

268,351,332

370,727,362

72%

102,376,030

2013

277,757,426

386,573,382

72%

108,815,956

2014

287,500,232

406,282,243

71%

118,782,011

2015

296,091,358

447,961,301

66%

151,869,943

 

As explained on pages 5-6 of the 2015 actuarial valuation report, 3% of the 5% drop in pension funding between 2014 and 2015 was due to changes in actuarial assumptions. "The new actuarial assumptions changed your December 31, 2015 percent funded from 69% to 66%, a change of -3%," it says. Kara Hope, chairperson of the Ingham County Board of Commissioners, addressed this in a 9/14/2016 opinion in the Lansing State Journal.

 

Benefit plan provision enhancements for Sheriff Supervisors

 

The history of retirement benefit plan provisions for Sheriff Supervisors goes at least as far back to the the 1950s, but here we will start with 7/1/1993 (the service requirement and member contribution rate shown for 7/1/1993 were in effect before then). Benefit provision history is in the latest actuarial valuation report and the current FOP contract.

 

7/1/1993

7/1/1994

1/1/1995

10/1/1997

 

 

Multiplier

2.25% (B-3)

 

2.5% (B-4)

3.2%

 

 

FAC Period

5

 

3

 

 

 

Service

Age 50 w/25

Age 55 w/15

 

25 and out

 

 

 

Member Contribution Rate

6.40%

5.40%

10.45%

19.61%

 

 

  MERS benefit plan definitions are on page 4 of this document and page 2 of this one.    

Sheriff Supervisors hired on or after January 1, 2013 are enrolled in a "hybrid" pension plan consisting of a defined benefit (DB) component with a 1.5% multiplier and a defined contribution (DC) component:

(1)

DB Component - The county pays the full cost of the defined benefit component which includes a 1.5% multiplier. Employees can retire at age 55 with 25 years of service.

 

(2)

DC Component - Employees contribute in an amount of their choice but no less than 2% of the base wage. The county contributes an amount equal to 1% of the employee's base wage.  

 

 

 

 

Computed Employer Contributions to the Retirement System for Sheriff Supervisors: Percent of Payroll

Source: actuarial valuation reports

Year beginning January 1:

Normal Cost

Unfunded

Accrued Liability

Total

1999

(1.72%)

19.50%

17.78%

2000

(1.49%)

21.36%

19.86%

2001

(1.59%)

19.62%

18.03%

2002

(2.48%)

22.32%

19.84%

2003

(1.97%)

22.04%

20.07%

2004

(1.98%)

23.50%

21.52%

2005

(2.02)%

24.45%

22.43%

2006

(1.28)%

23.78%

22.50%

2007

(1.28)%

26.03%

24.75%

2008

(1.12)%

26.66%

25.54%

2009

(1.13)%

28.42%

27.29%

2010

(0.38)%

34.12%

33.74%

2011

(0.23)%

37.12%

36.89%

2012

(0.08)%

42.92%

42.84%

2013

0.34%

49.00%

49.34%

2014

0.30%

62.66%

62.96%

 

Actuarial valuation reports show no employer contributions as percentage of payroll after 2014. Controller Tim Dolehanty explained this to me as follows:

Once the Hybrid plan went into effect and the defined benefit divisions were closed, the County discontinued the practice of making contributions based on a percentage of pay and began paying a flat amount per month/per division.  For internal reporting, the Budget office converts the flat amount to an estimated percentage of pay for accounting purposes.

 

 

 

Actuarial Accrued Liabilities and Valuation Assets: Sheriff Supervisors

 

 

As of

December 31

Actuarial Accrued Liability

Valuation Assets

Percent

Funded

Unfunded Accrued

Liabilities

 

 

1996

5,580,320

2,451,365

43.9%

3,128,955

 

 

1997

7,500,646

1,713,485

22.7%

5,787,161

 

 

1998

15,615,485

10,545,481

67.5%

5,070,004

 

 

1999

16,445,973

12,017,979

73.1%

4,427,994

 

 

2000

18,553,446

13,284,268

71.1%

5.269.178

 

 

2001

18,969,820

13,829,148

72.9%

5,140,672

 

 

2002

22,500,406

13,895,054

61.8%

8,605,352

 

 

2003

20,923,964

14,274,611

68.2%

6,649,353

 

 

2004

22,077,293

14,719,106

66.7%

7,358,187

 

 

2005

23,473,175

15,171,559

64.6%

8,301,616

 

 

2006

27,308,500

15,778,647

57.8%

11,529,853

 

 

2007

28,963,782

16,785,897

58.0%

12,177,885

 

 

2008

30,598,492

17,036,017

55.7%

13,562,475

 

 

2009

30,521,311

16,616,645

54.4%

13,904,666

 

 

2010

31,808,099

16,641,633

52.3%

15,166,466

 

 

2011

32,687,429

16,411,528

50.2%

16,275,901

 

 

2012

34,314,880

16,367,240

47.7%

17,947,640

 

 

2013

35,226,002

16,160,200

45.9%

19,065,802

 

 

2014

36,961,016

16,418,633

44.4%

20,542,383

 

 

2015

40,413,041

16,474,840

40.8%

23,938,201