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This page provides information on the assumptions
used by the actuaries to value the Retirement Plan.
 
ACTUARIAL ASSUMPTIONS AND COST METHOD
A. Cost Method  Frozen Entry Age Actuarial Cost Method.
B. Investment Earnings
(including inflation) 		 8.5% per year, compounded annually; net rate after investment related expenses.
C. Salary Increases
(including inflation) 		 See Table below.
D. Inflation  4% per year.
E. Retirement Age  See Table below for retirement rates.
F. Turnover Rates  See Table below.
G. Mortality Rates  1983 Group Annuity Mortality Tables for males and females. For disabled lives, regular mortality rates are set forward five years.
H. Disability   
  1. Rates  See Table below.
2. Percent Service Connected  75%
I. Asset Value  Difference between actual and expected return recognized over five years.
J. Administrative Expenses  Expenses paid out of the fund other than investment related expenses are assumed to be equal to the average of actual expenses over the previous two years.
K. Increase in Covered Payroll  4% (Average over most recent 10 years exceeds 4%.)
L. Post Retirement Benefit Increase  NA
M. Changes Since Last Valuation  The Plan has adopted new retirement rates.
 
 
SERVICE AGE
42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60
10 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 30 30 80 80 100 100 100 100
11 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
12 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
13 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
14 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
15 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
16 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
17 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
18 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
19 0 0 0 0 0 2.5 2.5 2.5 2.5 2.5 2.5 10 10 80 80 100 100 100 100
20 30 30 30 30 30 30 30 30 35 40 45 50 60 80 80 100 100 100 100
21 5 5 5 5 5 5 15 15 15 15 15 15 15 80 80 100 100 100 100
22 5 5 5 5 5 5 15 15 15 15 15 15 15 80 80 100 100 100 100
23 5 5 5 5 5 5 15 15 15 15 15 15 15 80 80 100 100 100 100
24 5 5 5 5 5 5 15 15 15 15 15 15 15 80 80 100 100 100 100
25 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
(*** - All totals in the above table are displayed as Percentages)
 
 
AGE ANNUAL RATE OF
Turnover Disability Salary Increases
20 6.0% 0.14% 8.5%
25 5.7% 0.15% 8.5%
30 5.0% 0.18% 8.3%
35 3.8% 0.23% 7.2%
40 2.6% 0.30% 5.2%
45 1.6% 0.51% 5.2%
50 0.8% 1.00% 5.2%
55 0.3% 1.55% 5.2%
 
 
GLOSSARY OF TERMS
Actuarial Present Value is the value of an amount or series of amounts payable at various times, determined as of the valuation date by the application of the set of actuarial assumptions.
Actuarial Assumptions are assumptions as to the occurrence of future events affecting pension costs. The previous page outlines the Actuarial Assumptions utilized in this valuation.
Actuarial Cost Method is a procedure for determining the Actuarial Present Value of pension plan benefits and for developing an actuarially equivalent allocation of such value to time periods, usually in the form of a Normal Cost and Actuarial Accrued Liability.
Frozen Entry Age Actuarial Cost Method is a method under which the excess of the Actuarial Present Value of Projected Benefits of the group included in the valuation, over the sum of the Actuarial Value of Assets, the Unfunded Frozen Actuarial Accrued Liability and the Actuarial Present Value of Future Member Contributions (if any) is allocated as a level percentage of earnings of the group between the valuation date and the assumed retirement age. This allocation is performed for the group as a whole, not as a sum of individual allocations. The portion of this Actuarial Present Value allocated to a specific year is called the Employer Normal Cost. Under this method, actuarial gains (losses) reduce (increase) future Normal Costs.
Frozen Actuarial Accrued Liability is the portion of the Actuarial Present Value of Projected Benefits which is separated as of a valuation date and frozen under the Actuarial Cost Method being used. This separated portion is the sum of an initial Unfunded Actuarial Accrued Liability and any increments or decrements in the Actuarial Accrued Liability established subsequently as a result of changes in pension plan benefits or Actuarial Assumptions.
Unfunded Frozen Actuarial Accrued Liability is the portion of the Frozen Actuarial Accrued Liability remaining after the addition of interest and the deduction of amortization payments.