|
individual included in an actuarial valuation is allocated on a level basis over the earnings or service of the
individual between entry age and assumed exit age(s). The portion of this actuarial present value allocated to a
valuation year is called the normal cost The portion of this actuarial present value not provided for at a valuation
date by the actuarial present value of future normal costs is called the actuarial accrued liability.
Contributions to the System for State employees for fiscal year 1994 are as follows (amounts expressed in
thousands):
|
|
|
State
|
Employees
|
|
Total
|
|
|
|
Percentage of
|
Percentage of
|
|
Percentage of
|
|
|
Contribution
|
Covered Payroll
|
Contribution Covered Payroll
|
Contribution
|
Covered Payroll
|
|
Normal Cost......................................
|
$360,759
|
7.7%
|
$88,855 1.9%
|
$449,614
|
9.6%
|
|
Amortization of underfunding........
|
251,735
|
5.4%
|
|
251,735
|
5.4
|
|
Total....................................................
|
$612,494
|
13.1%
|
$88,855 1.9%
|
$701,349
|
15.0%
|
The total and covered payrolls for State employees for the year ended June 30, 1994, are $2,289,095,000 and
$4,679,896,000, respectively. The covered payroll amount includes amounts for employees for whom the State pays
retirement benefits, but does not pay the payroll. The required and actual contributions were actuarially
determined based on the June 30, 1992, valuation.
The liquidation period for the unfunded actuarial accrued liabilities (as provided by law) is 26 years from June
30, 1994. Significant actuarial assumptions used to compute contribution requirements are the same as those used
to compute the pension benefit obligation.
The computation of the pension contribution requirements for fiscal year 1994 was based on the same actuarial
assumptions, benefit provisions, actuarial funding method, and other significant factors used to determine pension
contribution requirements in the previous year.
The total contribution for all participating political subdivisions for the year ended June 30, 1994, was
$49,706,000.
Three-Year Historical Trend Information for the System, excluding participating political subdivisions
(amounts expressed in thousands):
|
|
(1)
|
(2)
|
(3)
|
(4)
Unfunded
|
|
(6)
Unfunded
Pension Benefit
Obligation as
|
(7)
|
(8)
Employer
Contributions
asa
|
|
|
Net Assets
|
|
|
Pension
|
(5)
|
a Percentage
|
|
Percentage
|
|
|
Available for
|
Pension
|
Percentage
|
Benefit
|
Annual
|
of Covered
|
|
of Annual
|
|
Fiscal
|
Benefits
|
Benefit
|
Funded
|
Obligation
|
Covered
|
Payroll
|
Employer
|
Covered Payroll
|
|
Year
|
at Cost
|
Obligation
|
(1X2)
|
(2H1)
|
Payroll
|
(4X5)
|
Contributions
|
(7X6)
|
|
1992
|
$11,884,463
|
$17,625,026
|
67.4%
|
$5,740,563
|
$4,487,636
|
127.9%
|
$588,785
|
13.1%
|
|
1993
|
13,197,548
|
18,675,201
|
70.7
|
5,477,653
|
4,542,599
|
120.6
|
617,782
|
13.6
|
|
1994
|
14,089,325
|
19,295,944
|
73.0
|
5,206,619
|
4,679,896
|
111.3
|
612,494
|
13.1
|
Ten-year historical trend information for the System is available in a separate financial report issued by the
System. This report presents information about progress made in accumulating sufficient assets to pay benefits
when due.
For asset and investment management purposes, the State combined the assets of all State-administered
retirement and pension systems into a pooled trust fund. Accordingly, the financial statements for the State-
administered pension fund are presented on a combined basis in the fiduciary fund types financial statements.
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