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HomeMy Public PortalAbout2019 Actuarial Valuation Milliman Actuarial Valuation METROPOLITAN ST. LOUIS SEWER DISTRICT EMPLOYEES' PENSION PLAN Actuarial Valuation as of December 31, 2019 Plan Year: January 1, 2020 to December 31, 2020 Prepared by Michael J. Zwiener, FSA, MAAA Consulting Actuary William D. Winningham, EA, MAAA Consulting Actuary Milliman, Inc. 500 North Broadway, Suite 1750 St. Louis, MO 63102 USA Tel +1 314 231 3031 milliman.com May 29, 2020 Milliman Actuarial Valuation Introduction and Purpose 1 Actuarial Certification 2 Discussion of Valuation Results 4 Summary of Valuation Results 6 Statement of Market Value Assets 7 Statement of Income and Disbursements 8 Development of Actuarial Value of Assets 9 Actuarial Balance Sheet 10 Development of Actuarially Determined Contribution 11 Amortization Charges for the Actuarially Determined Contribution 12 Determination of (Gain)/Loss for Plan Year Ending December 31, 2019 13 Actuarial Methods 14 Actuarial Assumptions 15 Summary of Plan Provisions 18 Demographic Information 23 Actuarial Standard of Practice No. 51 (ASOP 51)27 Historical Trends 29 Actuarial Valuation as of December 31, 2019 Metropolitan St. Louis Sewer District Employees' Pension Plan Table of Contents This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Introduction and Purpose Purposes of the Valuation The actuarial valuation of the Plan is intended to accomplish several purposes: ●The determination of the recommended level of employer contributions for the 2020 calendar year ● Actuarial Valuation as of December 31, 2019 Page 1 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Assessment of the relative funded position of the plan on an ongoing basis, i.e., through a comparison of plan assets and projected plan liabilities In this report, we present the results of the December 31, 2019 actuarial valuation for the Metropolitan St. Louis Sewer District Employees' Pension Plan. The report has been prepared at the request of the District's Board for the sole use of the Board and the Metropolitan St. Louis Sewer District as the contributing plan sponsor. Milliman Actuarial Valuation Actuarial Certification Actuarial Valuation as of December 31, 2019 Page 2 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. This valuation report is only an estimate of the Plan’s financial condition as of a single date. It can neither predict the Plan’s future condition nor guarantee future financial soundness. Actuarial valuations do not affect the ultimate cost of Plan benefits, only the timing of Plan contributions. While the valuation is based on an array of individually reasonable assumptions, other assumption sets may also be reasonable and valuation results based on those assumptions would be different. No one set of assumptions is uniquely correct. Determining results using alternative assumptions is outside the scope of our engagement. Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; increases or decreases expected as part of the natural operation of the methodology used for these measurements (such as the end of an amortization period or additional cost or contribution requirements based on the plan’s funded status); and changes in plan provisions or applicable law. Due to the limited scope of our assignment, we did not perform an analysis of the potential range of future measurements. The District has the final decision regarding the appropriateness of the assumptions and adopted them as indicated in this report. Actuarial computations presented in this report are for purposes of determining the recommended funding amounts for the District. The calculations in the enclosed report have been made on a basis consistent with our understanding of the District’s funding requirements and goals as well as our understanding of the plan provisions described on pages 18-22 of this report. Determinations for purposes other than meeting these requirements may be significantly different from the results contained in this report. Accordingly, additional determinations may be needed for other purposes. As requested, we have performed an actuarial valuation of the Metropolitan St. Louis Sewer District Employees' Pension Plan as of December 31, 2019 for determining contributions for the calendar year ending December 31, 2020. Our findings are set forth in this actuary’s report. This report reflects the benefit provisions in effect on December 31, 2019. In preparing this report, we relied, without audit, on information (some oral and some in writing) supplied by the District and U.S. Bank. This information includes, but is not limited to, statutory provisions, employee data, and financial information. We found this information to be reasonably consistent and comparable with information used for other purposes. The valuation results depend on the integrity of this information. If any of this information is inaccurate or incomplete, our results may be different, and our calculations may need to be revised. Actuarial assumptions, including discount rates, mortality tables, and others identified in this report, and actuarial cost methods are prescribed by the District. The District is responsible for selecting the plan’s funding policy, actuarial valuation methods, asset valuation methods, and assumptions. The policies methods and assumptions used in this valuation are those that have been so prescribed and are described in the Actuarial Basis of this report. Milliman Actuarial Valuation Actuarial Certification (a) (b) We respectfully submit the following report, and we look forward to discussing it with you. Michael J. Zwiener, FSA, MAAA William D. Winningham, EA, MAAA Consulting Actuary Consulting Actuary Joint Board Enrollment # 20-03686 Joint Board Enrollment # 20-06367 Actuarial Valuation as of December 31, 2019 Page 3 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. The District may provide a copy of Milliman’s work, in its entirety, to the Plan’s professional service advisors who are subject to a duty of confidentiality and who agree to not use Milliman’s work for any purpose other than to benefit the Plan. The District may provide a copy of Milliman’s work, in its entirety, to other governmental entities, as required by law. Milliman’s work is prepared solely for the internal business use of the Metropolitan St. Louis Sewer District. To the extent that Milliman’s work is not subject to disclosure under applicable public records laws, Milliman’s work may not be provided to third parties without Milliman’s prior written consent. Milliman does not intend to benefit or create a legal duty to any third party recipient of its work product. Milliman’s consent to release its work product to any third party may be conditioned on the third party signing a Release, subject to the following exceptions: On the basis of the foregoing, we hereby certify that, to the best of our knowledge and belief, this report is complete and accurate and has been prepared in accordance with generally recognized and accepted actuarial principles and practices. We are members of the American Academy of Actuaries and meet the Qualification Standards to render the actuarial opinion contained herein. The signing actuaries are independent of the plan sponsor. We are not aware of any relationship that would impair the objectivity of our work. The consultants who worked on this assignment are retirement actuaries. Milliman’s advice is not intended to be a substitute for qualified legal or accounting counsel. No third party recipient of Milliman’s work product should rely upon Milliman’s work product. Such recipients should engage qualified professionals for advice appropriate to their own specific needs. Milliman Actuarial Valuation Discussion of Valuation Results Actuarially Determined Contribution Valuation Date Valuation Date 12/31/2018 12/31/2019 Applies to Calendar Year 2019 2020 Actuarially Determined Contribution $12,725,462 $13,398,565 Actual Contribution 12,725,462 N/A Plan Assets Actuarial Assumptions, Methods and Plan Provisions Actuarial Valuation as of December 31, 2019 Page 4 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. The results of this valuation are used to actuarially determine contribution amounts to the Plan for the 2020 calendar year. A comparison of actuarially determined contribution amounts for the current and immediately preceding valuation are shown below: There was an increase in the actuarially determined contribution as compared to the preceding year. The primary reason for the increase was the changes to the interest rate and mortality assumptions. The market value of plan assets increased from $260,560,576 at December 31, 2018 to $296,202,647 at December 31, 2019. A balance sheet and statement of income and disbursements are presented on pages 7 and 8, respectively. The net market rate of return was 16.1% for the period. The actuarial value of assets increased from $276,771,846 at December 31, 2018 to $290,911,258 at December 31, 2019. The development of the December 31, 2019 actuarial value of assets is presented on page 9. The net actuarial rate of return for the period was 7.3% vs. the assumed rate of 6.9%. Due to the asset smoothing method used, there are $5,291,389 of net investment gains that have not yet been recognized in the Actuarial Value of Assets. The discount rate was decreased from 6.90% to 6.75%, and the mortality assumption was changed from the RP-2014 Mortality Tables with generational projection of healthy rates based on Scale MP-2018 to the Pub- 2010 General Amount-Weighted Mortality Tables with generational projection based on Scale MP-2019. All other actuarial assumptions, methods and plan provisions remained the same as the prior year. Descriptions of these can be found on pages 14-22. The funding method is the Entry Age Normal method where Normal Costs are computed as a level percent of pay. The Unfunded Accrued Liability is amortized in layers over a period of 20 years. The annual amortization payment is calculated as a level dollar amount. The amortization period was reset to 20 years for all outstanding bases effective December 31, 2008. Milliman Actuarial Valuation Discussion of Valuation Results Plan Population Actuarial Experience (Gain)/Loss Gain on Actuarial Assets ($1,418,000) Salary Increases Lower than Expected (1,095,000) Liability Gain on All Other Sources (650,000) Net Actuarial Gain (3,163,000) GASB Statements 67 and 68 Disclosures GASB Statements 67 and 68 disclosures will be presented in a separate report. Actuarial Valuation as of December 31, 2019 Page 5 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. The number of active members included in the valuation decreased from 545 in the previous valuation to 493 in the current valuation. The number of retired members, disabled members and beneficiaries increased from 748 to 771. The number of deferred vested members decreased from 181 to 180. A detailed reconciliation can be found on page 26. The Plan experienced an overall net actuarial gain for the Plan year ending December 31, 2019. The major components of the gain are summarized below. Milliman Actuarial Valuation Summary of Valuation Results Valuation Date Valuation Date 12/31/2018 12/31/2019 Participant Data Number of Members Active Members 545 493 Retired Members 608 633 Disabled Members 21 21 Beneficiaries 119 117 Terminated Vested Members 181 180 Total 1,474 1,444 Covered Payroll 39,437,165 36,793,274 Assets Market Value of Assets 260,560,576 296,202,647 Rate of Return -4.7%16.1% Actuarial Value of Assets 276,771,846 290,911,258 Rate of Return 3.8%7.3% Valuation Liabilities Valuation Interest Rate 6.90%6.75% Present Value of Future Benefits 374,287,419 392,476,721 Entry Age Normal Accrued Liability 334,957,313 353,995,560 Unfunded Entry Age Normal Accrued Liability 58,185,467 63,084,302 Present Value of Accrued Benefits 302,787,327 322,244,233 Costs and Contributions Actuarially Determined Contribution 12,725,462 13,398,565 Percentage of Covered Payroll 32.27%36.42% Actuarial Valuation as of December 31, 2019 Page 6 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Statement of Market Value Assets 12/31/2018 12/31/2019 Assets Money market funds $10,299,912 $3,110,257 Receivables and prepaid expenses: Interest and dividends receivable 288,581 333,726 Total receivables 288,581 333,726 Investments: Mutual funds 55,453,699 70,580,513 Corporate obligations 20,350,656 21,981,050 Collective investment fund 147,965,932 168,628,252 Domestic common stocks 9,235,066 13,798,990 US Treasury and agency obligations 15,878,117 16,428,797 Foreign stocks 538,865 1,069,782 Municipal obligations 754,971 554,136 Total investments 250,177,306 293,041,520 Total assets 260,765,799 296,485,503 Liabilities Accrued expenses 205,223 282,856 Total liabilities 205,223 282,856 Net Assets $260,560,576 $296,202,647 Actuarial Valuation as of December 31, 2019 Page 7 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Statement of Income and Disbursements Market Value of Assets as of January 1, 2019 $260,560,576 Income Member contributions $0 Employer contributions 12,725,462 Total contributions 12,725,462 Investment income (including realized and unrealized capital gains/losses)42,462,700 Total additions 55,188,162 Disbursements Benefit payments 18,626,890 Expenses 919,201 Total deductions 19,546,091 Net increase (decrease)35,642,071 Market Value of Assets as of December 31, 2019 $296,202,647 Net Rate of Return 16.1% Actuarial Valuation as of December 31, 2019 Page 8 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Development of Actuarial Value of Assets 2019 2018 Plan Year Plan Year Prior Year Actuarial Value of Assets $276,771,846 $271,048,527 Contributions 12,725,462 12,493,916 Benefit Payments (18,626,890)(16,911,759) Expenses (919,201)(843,426) Expected Return 19,097,257 18,702,348 Net Adjustment 12,276,628 13,441,079 12/31/2019 12/31/2018 12/31/2017 Market Value $296,202,647 $260,560,576 $277,976,215 2019 Adjustment N/A 12,276,628 12,276,628 2018 Adjustment N/A N/A 13,441,079 Adjusted Market Value 296,202,647 272,837,204 303,693,922 Actuarial Value of Assets (Average of Adjusted Market Values)290,911,258 Return on Actuarial Value 20,040,840 Rate of Return on Actuarial Value 7.3% Actuarial Valuation as of December 31, 2019 Page 9 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Actuarial Balance Sheet 12/31/2019 Liabilities 1.Actuarial Present Value of Future Benefits a.Active Members $177,866,712 b.Terminated Vested Members 8,461,355 c.Retired Members 183,617,366 d.Disabled Members 4,275,457 e.Beneficiaries 18,255,831 f.Total 392,476,721 Assets 1.Current Valuation Assets a.Actuarial Value of Assets 290,911,258 2.Prospective Valuation Assets a.Unfunded Actuarial Accrued Liability 63,084,302 b.Present Value of Future Normal Cost Contributions 38,481,161 3.Total 392,476,721 Actuarial Valuation as of December 31, 2019 Page 10 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. The key elements of the actuarial funding process are illustrated in the Actuarial Balance Sheet. The format of the balance sheet captures the essential purpose of an actuarial cost method - the determination of assets sufficient to provide for pension benefits. The Actuarial Present Value of Current and Prospective Plan Benefits is the liability that must be balanced by Current and Prospective assets. The Present Value of Future Normal Cost Contributions represents the prospective assets from contributions that will be made for costs allocated to the future. Milliman Actuarial Valuation Development of Actuarially Determined Contribution 12/31/2019 1.Present Value of Future Benefits a.Active Members $177,866,712 b.Terminated Vested Members 8,461,355 c.Retired Members 183,617,366 d.Disabled Members 4,275,457 e.Beneficiaries 18,255,831 f.Total 392,476,721 2.Present Value of Future Normal Costs 38,481,161 3.Entry Age Accrued Liability: (1f) - (2)353,995,560 4.Actuarial Value of Assets 290,911,258 5.Entry Age Unfunded Accrued Liability: (3) - (4)63,084,302 6.Entry Age Normal Cost 4,832,125 7.Covered Payroll 36,793,274 8.Amortization of Unfunded Actuarial Accrued Liability 7,719,224 9.Actuarially Determined Contribution at Beginning of Year: (6) + (8)12,551,349 10.Actuarially Determined Contribution at End of Year 13,398,565 11.Actuarially Determined Contribution as a Percentage of Payroll a.Normal Cost 14.02% b.Amortization Payment 22.40% c.Total 36.42% Actuarial Valuation as of December 31, 2019 Page 11 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Amortization Charges for the Actuarially Determined Contribution Initial Unamortized Unamortized Date Initial Amortization Base as of Contribution Base as of Amortization Incurred Description Balance Period 12/31/2018 to Base 12/31/2019 Payment 12/31/2008 Amortization Restarted $28,387,059 20 $16,107,603 $2,868,254 $14,350,774 $2,545,038 12/31/2009 Experience Loss 9,801,628 20 6,139,557 988,567 5,574,619 876,129 12/31/2010 Experience Loss 6,504,951 20 4,422,278 655,440 4,071,975 580,686 03/31/2011 Plan Change (374,381)20 (259,765)(37,700)(239,989)(33,384) 12/31/2011 Experience Gain (5,769,079)20 (4,209,695)(580,440)(3,919,724)(513,861) 12/31/2011 Assumption Changes 14,265,441 20 10,409,491 1,435,278 9,692,468 1,270,646 12/31/2012 Experience Gain (2,111,370)20 (1,637,468)(212,201)(1,538,252)(187,807) 12/31/2013 Assumption Change (269,285)20 (220,161)(27,027)(208,325)(23,905) 12/31/2013 Experience Gain (4,827,108)20 (3,946,561)(484,458)(3,734,416)(428,298) 12/31/2014 Experience Gain (6,122,993)20 (5,304,607)(603,194)(5,067,431)(532,830) 12/31/2014 Assumption Changes 6,500,227 20 5,631,420 640,357 5,379,631 565,657 12/31/2015 Experience Loss 2,577,288 20 2,330,389 253,804 2,237,382 224,144 12/31/2016 Experience Loss 10,884,162 20 10,214,713 1,071,475 9,848,053 945,602 12/31/2016 Assumption Changes 11,664,881 20 10,947,414 1,148,331 10,554,455 1,013,430 12/31/2017 Experience Gain (379,023)20 (367,795)(37,300)(355,873)(32,895) 12/31/2017 Assumption Change 1,667,047 20 1,617,661 164,055 1,565,225 144,681 12/31/2018 Experience Loss 6,310,993 20 6,310,993 621,068 6,125,383 547,591 12/31/2019 Experience Gain (3,162,539)20 N/A N/A (3,162,539)(274,235) 12/31/2019 Assumption Changes 11,910,886 20 N/A N/A 11,910,886 1,032,835 Total 87,458,785 58,185,467 7,864,309 63,084,302 7,719,224 Actuarial Valuation as of December 31, 2019 Page 12 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Determination of (Gain)/Loss for Plan Year Ending December 31, 2019 1.Unfunded Accrued Liability as of December 31, 2018 $58,185,467 2.Normal Cost due December 31, 2018 4,902,474 3.Interest on (1) and (2) at 6.90%4,353,068 4.Employer Contributions for Prior Plan Year 12,725,462 5.Interest on (4) at 6.90%379,592 6.Change in Unfunded Accrued Liability due to Actuarial Assumption Changes 11,910,886 7.Change in Unfunded Accrued Liability due to Plan Amendment 0 8.Expected Unfunded Actuarial Accrued Liability as of December 31, 2019: (1) + (2) + (3) - (4) - (5) + (6) + (7)66,246,841 9.Entry Age Accrued Liability as of December 31, 2019 353,995,560 10.Actuarial Value of Assets as of December 31, 2019 290,911,258 11.Unfunded Actuarial Accrued Liability as of December 31, 2019: (9) - (10)63,084,302 12.(Gain)/Loss for Plan Year Ending December 31, 2019: (11) - (8)(3,162,539) Actuarial Valuation as of December 31, 2019 Page 13 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Actuarial Methods Following are brief descriptions of the actuarial cost and asset valuation methods used in the valuation. Actuarial Cost Method Asset Valuation Method Actuarial Valuation as of December 31, 2019 Page 14 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. The Entry Age Normal Cost Method on a closed group basis was used. Normal costs are computed as a level percent of pay. Changes in the Entry Age Normal Unfunded Accrued Liability (UAL) are amortized on a level dollar basis over layered 20 year periods. For the December 31, 2008 valuation, the amortization period for outstanding bases was reset to 20 years. The Actuarial Value of Assets is equal to the average of the Adjusted Market Values for the current and two previous valuation dates. The Adjusted Market Value for the current valuation date is equal to the Market Value of Assets. The Adjusted Market Values for the two previous valuation dates are equal to the Market Values as of the respective valuation dates increased for contributions and expected return on Actuarial Assets and decreased for benefit payments and expenses. Milliman Actuarial Valuation Actuarial Assumptions Following are the primary actuarial assumptions used in the valuation. Interest (Effective 12/31/2019) 6.75%, compounded annually. For the previous valuation, the assumption was 6.90%, compounded annually. Salary Increases 4.25% per annum Social Security Wage Base Assumed to increase at a rate of 3.50% per annum Inflation 2.50% per annum Mortality (Effective 12/31/2019) Actuarial Valuation as of December 31, 2019 Page 15 Metropolitan St. Louis Sewer District Employees' Pension Plan Rationale: The funding interest rate was developed based on the Plan’s asset allocation model and capital market assumptions. Rationale: We have reviewed the Plan’s historical experience to help develop this assumption. In addition, we have considered sponsor input and economic conditions that might have influenced prior experience or may impact future experience. Rationale: This assumption was developed based on current pension mortality tables and our experience with similar populations and industries. The mortality assumption includes mortality improvement as of the valuation date as well as projected future mortality improvements. This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Pub-2010 General Amount-Weighted Mortality Tables for Employees, Healthy Retirees, Disabled Retirees and Contingent Survivors, male and female rates, with generational projection from 2010 using Scale MP- 2019 (improvement scale updates published annually) For the previous valuation, the assumption was RP-2014 Mortality Tables for Employees and Healthy Annuitants, male and female rates, with generational projection from 2006 using Scale MP-2018 and RP- 2014 Disabled Mortality Table, male and female rates. Milliman Actuarial Valuation Actuarial Assumptions Withdrawal Years of Service % Terminating Age % Terminating 0 20 20 5.5 1 12 30 3.7 2 7.5 40 1.1 50 & over 0.0 Retirement Rates vary by age as follows: Age Before 75 Points After 75 Points 55 1 10 56 2 10 57 2 10 58 2 10 59 3 10 60 4 15 61 5 15 62 20 35 63 10 25 64 20 25 65 & over 100 100 Actuarial Valuation as of December 31, 2019 Page 16 Metropolitan St. Louis Sewer District Employees' Pension Plan Select rates based on service, ultimate rates based on attained age. Ultimate rates are from the Sarason T- 1 Table. Rates at selected ages are: Rationale: This assumption was developed based on eligibility criteria for the benefits and our experience with similar populations and industries. Ultimate Rates Rationale: This assumption was developed based on eligibility criteria for the benefits, eligibility criteria for social insurance programs, past plan experience, our experience with similar populations and industries, and economic conditions that might have influenced prior experience or may impact future experience. This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. % Retiring Select Rates Milliman Actuarial Valuation Actuarial Assumptions Disability Rates at selected ages are: % Becoming Age Disabled 20 0.056 30 0.064 40 0.102 50 0.311 Expenses None assumed Marriage Form of Payment All members are assumed to elect the 5 Year Certain and Life Annuity. Actuarial Valuation as of December 31, 2019 Page 17 Metropolitan St. Louis Sewer District Employees' Pension Plan 80% of members are assumed to be married at the time of withdrawal, retirement, death or disability. Males are assumed to be 3 years older than their spouses. This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Rationale: This assumption was developed based on eligibility criteria for the benefits and our experience with similar populations and industries. Milliman Actuarial Valuation Summary of Plan Provisions Effective Date Originally effective November 1, 1967; most recently restated effective January 1, 2014. Eligibility Employee Earnings Final Average Earnings (FAE) Prior to August 1, 2004, the sum of A and B divided by 3: A)Highest 78 consecutive pay periods out of the last 260 pay periods B) After August 1, 2004, the average of the highest 78 consecutive pay periods out of the last 260 pay periods. Continuous Service Actuarial Valuation as of December 31, 2019 Page 18 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. A summary of the current primary provisions of the Plan is presented below. A complete description of the provisions can be found in Ordinance 15110 (adopted February 14, 2019). Members become eligible after their first hour of employment. The plan was closed to new entrants effective January 1, 2011. Employed on a regular, full-time permanent basis; 1,000 hours deemed full-time. Does not include technical personnel employed on special occasions. Base pay excluding unpaid leaves of absence (other than on account of military service), bonuses, overtime and any other additional compensation, determined without regard to salary reductions under Sections 125, 132, or 457. Does not include unused sick leave. 1.25% of the cash amount paid to a member with respect to unused sick leave, multiplied by the member’s years of Credited Service If a member has less than 78 pay periods, FAE is calculated by dividing the total pay by the actual number of pay periods and then multiplying by 26. Elapsed time from date of hire to date of termination including authorized leaves of absence, the imputed employment period solely for determining early retirement reductions, military leave and other absences that do not constitute a termination of employment under the District’s Civil Service Rules Milliman Actuarial Valuation Summary of Plan Provisions Credited Service Vesting A member becomes 100% vested upon completion of 60 months of Continuous Service. Normal Retirement Date (NRD) First of the month coincident with or next following age 65 and 60 months of Continuous Service Normal Retirement Benefit Prior to August 1, 2004: After August 1, 2004: Alternate Retirement Date (ARD) Early Retirement Date (ERD) First of the month coincident with or next following age 55 and 60 months of Continuous Service Actuarial Valuation as of December 31, 2019 Page 19 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Elapsed time from date of hire to date of termination including military leave but not including leaves of absence 1.45% of FAE multiplied by years and complete months Credited Service, plus 0.4% of FAE in excess of Covered Compensation multiplied by years and complete months of Credited Service, with a maximum of 35 years 1.7% of FAE multiplied by years and complete months Credited Service, plus 0.4% of FAE in excess of Covered Compensation multiplied by years and complete months of Credited Service, with a maximum of 35 years The formula in effect prior to August 1, 2004 based on service, earning and sick leave as of June 1, 2009 is protected as a minimum benefit for certain members for which the prior formula produced higher benefit as of June 1, 2009. Attainment of 80 points upon Separation from Service where points are defined as the sum of the member’s age and Continuous Service. For early retirement reduction, ARD is the date 80 points would have been achieved if service continued to ARD. Milliman Actuarial Valuation Summary of Plan Provisions Early Retirement Benefit The benefit is unreduced if the member has 75 points as of Separation from Service. Postponed Retirement Date (PRD) First of the month coincident with or next following Separation from Service after Normal Retirement Date Postponed Retirement Benefit The greater of: A)Accrued Benefit calculated at Postponed Retirement Date, or B) Disability Benefit A)Accrued Benefit calculated at Disability Date, or B)25% of monthly earnings Actuarial Valuation as of December 31, 2019 Page 20 Metropolitan St. Louis Sewer District Employees' Pension Plan The disability benefit may not exceed the projected Normal Retirement Benefit calculated using average earnings at the disability date. The disability benefit is payable to age 65 as long as the member remains disabled. If the member does not have 75 points as of Separation from Service, the benefit is reduced 1% per year between ages 60 and 65 and 2% per year between ages 55 and 60 from the earlier of the member’s Normal Retirement Date or Alternate Retirement Date. This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Normal Retirement Benefit plus the Actuarial Equivalent of the amount that would have been paid from NRD to PRD accumulated at 4.0% If a member becomes disabled while in employment after completing three years of service and qualifies for disability under Social Security, an immediate monthly benefit will be payable equal to the greater of: Milliman Actuarial Valuation Summary of Plan Provisions Death Benefit A)50% of the Accrued Benefit calculated at the date of death, or B)15% of monthly earnings, or C)Accrued Benefit payable in a reduced amount under the 100% Contingent Annuitant Option Lump Sum Death Benefit Post-Retirement Medical Coverage Cost-of-Living Adjustment (COLA) Actuarial Valuation as of December 31, 2019 Page 21 Metropolitan St. Louis Sewer District Employees' Pension Plan For years after January 1, 2001, an annual COLA based on the Consumer Price Index with a maximum annual increase of the lesser of 3% or $50/month, and a lifetime maximum of the lesser of 45% or $750/month. Retirees, beneficiaries and disabled members first become eligible for the COLA on the third January 1st following retirement. This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. If a member dies while in employment after completing five years of service, an immediate monthly benefit will be payable to his or her beneficiary equal to the greatest of: If a terminated vested member dies prior to retirement, an immediate monthly benefit will be payable to his or her beneficiary equal to 50% of the Accrued Benefit. If the beneficiary is the member’s surviving spouse, the benefit will be payable for the spouse’s lifetime. Otherwise, the benefit will be payable to the beneficiary for a period of sixty months without the adjustment for the Contingent Annuitant Option. If a member dies after early or normal retirement, there is a $5,000 death benefit payable to the member’s beneficiary from the Plan only if no life insurance has been paid from another District program. This death benefit is in addition to any monthly survivor benefits that would be payable to the member’s beneficiary under the payment option elected at the time of the member’s retirement. The District provides individual medical coverage under the same terms as active employees for members who retire after attaining 75 points or age 62. Such coverage shall continue until the member becomes eligible for Medicare or becomes covered under another group medical plan. This benefit is not paid from the Pension Trust, and no liabilities or costs for this benefit are included in this report. Milliman Actuarial Valuation Summary of Plan Provisions Normal Form of Payment Five-Year Certain and Life Annuity Optional Forms of Payment Ten-Year Certain and Life Option Life Annuity Option Social Security Option Contingent Annuitant Options (100%, 75%, 66 2/23% or 50%) Contingent Annuitant Options with “Pop-up” (100%, 75%, 66 2/23% or 50%) Actuarial Valuation as of December 31, 2019 Page 22 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. A member may elect to take 10% of the value of his or her monthly benefit as a lump sum payment with the balance of the benefit payable in one of the forms described above. The lump sum is based on the Plan’s definition of Actuarial Equivalence. Milliman Actuarial Valuation Summary of Member Data 12/31/2018 12/31/2019 1.Active Members (Including Postponed Retirees) a.Count 545 493 b.Plan Compensation $40,703,098 $38,670,381 c.Average Compensation $74,685 $78,439 d.Average Age 52.1 52.4 e.Average Service 19.6 20.0 2.Retired Members a.Count 608 633 b.Total Monthly Benefits $1,244,693 $1,340,795 c.Average Monthly Benefits $2,047 $2,118 3.Disabled Members a.Count 21 21 b.Total Monthly Benefits $32,403 $31,863 c.Average Monthly Benefits $1,543 $1,517 4.Beneficiaries a.Count 119 117 b.Total Monthly Benefits $154,142 $160,391 c.Average Monthly Benefits $1,295 $1,371 5.Terminated Vested Members a.Count 181 180 b.Total Monthly Benefits $100,756 $103,640 c.Average Monthly Benefits $557 $576 Actuarial Valuation as of December 31, 2019 Page 23 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Distribution of Active Members by Age and by Years of Service (as of December 31, 2019) Years of Service Attained Age Under 1 1 to 4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 to 34 35 to 39 40 and up Total Under 25 0 0 0 0 0 0 0 0 0 0 0 25 to 29 0 0 0 0 0 0 0 0 0 0 0 30 to 34 0 0 1 13 0 0 0 0 0 0 14 35 to 39 0 0 0 42 3 0 0 0 0 0 45 40 to 44 0 0 1 46 5 2 0 0 0 0 54 45 to 49 0 0 2 34 12 19 7 1 0 0 75 50 to 54 0 0 3 24 9 20 12 9 0 0 77 55 to 59 0 0 1 26 11 17 20 29 10 0 114 60 to 64 0 0 1 19 13 17 12 15 14 6 97 65 to 69 0 0 0 3 0 2 5 4 0 3 17 70 and up 0 0 0 0 0 0 0 0 0 0 0 Total *0 0 9 207 53 77 56 58 24 9 493 * Includes 17 Postponed Retirees Actuarial Valuation as of December 31, 2019 Page 24 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Distribution of Inactive Members by Age and Average Monthly Benefit Average Monthly Age Group Count Benefit Amount Under 30 0 $0 30 - 34 1 472 35 - 39 11 805 40 - 44 9 477 45 - 49 24 704 50 - 54 33 620 55 - 59 48 593 60 - 64 34 584 65 and Over 20 218 Total 180 $576 Average Monthly Age Group Count Benefit Amount Under 55 13 $1,879 55 - 59 60 1,833 60 - 64 136 2,190 65 - 69 207 1,996 70 - 74 159 2,124 75 - 79 93 2,004 80 - 84 55 1,950 85 - 89 31 1,272 90 and over 17 995 Total 771 $1,988 Actuarial Valuation as of December 31, 2019 Page 25 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Terminated Vested Members Retired Members, Disabled Members and Beneficiaries Milliman Actuarial Valuation Summary of Changes in Member Data Terminated Active Postponed Retired Vested Members Retirees Members Members Total Count as of January 1, 2019 524 21 748 181 1,474 New Entrants 0 0 0 0 0 Moved to Postponed Retirees (7)7 0 0 0 Retired (32)(11)50 (7)0 Became Disabled 0 0 0 0 0 Lump Sum Payouts 0 0 0 0 0 Died with Beneficiary (2)0 (6)(2)(10) New Beneficiaries 0 0 10 1 11 Died without Beneficiary 0 0 (22)0 (22) Terminated with Vesting (7)0 0 7 0 Terminated without Vesting 0 0 0 0 0 Rehired 0 0 0 0 0 Certain Period Expired 0 0 (8)0 (8) No Longer Due Benefits 0 0 (1)0 (1) Data Corrections 0 0 0 0 0 Total Changes (48)(4)23 (1)(30) Count as of December 31, 2019 476 17 771 180 1,444 Actuarial Valuation as of December 31, 2019 Page 26 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Milliman Actuarial Valuation Actuarial Standard of Practice No. 51 (ASOP 51) ●Identify risks that may be significant to the plan. ●Assess the risks identified as significant to the plan. ● Maturity Risk ● ● ● Actuarial Valuation as of December 31, 2019 Page 27 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. The purpose of this appendix is to identify, assess, and provide illustrations of risks that are significant to the Plan, and in some cases to the Plan’s participants. The results of the actuarial valuation are based on one set of reasonable assumptions. However, it is almost certain that future experience will not exactly match the assumptions. As an example, investments may perform better or worse than assumed in any single year and over any longer time horizon. It is therefore important to consider the potential impacts of these potential differences when making decisions that may affect the future financial health of the Plan, or of the Plan’s participants. Actuarial Standard of Practice No. 51 (ASOP 51) addresses these issues by providing actuaries with guidance for assessing and disclosing the risk associated with measuring pension liabilities and the determination of pension plan contributions. Specifically, it directs the actuary to: Disclose plan maturity measures and historical information that are significant to understanding the plan’s risks. In addition, as plans mature they accumulate larger pools of assets and liabilities. This increases the potential risk to plan funding and the finances of those who are responsible for plan funding. As an example, it is more difficult for a plan sponsor to deal with the effects of a 10% investment loss on a plan with $1 Billion in assets and liabilities than if the same plan sponsor is responsible for a 10% investment loss on a plan with $1 Million in assets and liabilities. Since pension plans make long-term promises and rely on long-term funding, it is important to consider how mature the plan is today, and how mature it may become in the future. ASOP 51 states that if in the actuary’s professional judgment, a more detailed assessment would be significantly beneficial in helping the individuals responsible for the plan to understand the risks identified by the actuary, then the actuary should recommend that such an assessment be performed. This appendix uses the framework of ASOP 51 to communicate important information about: significant risks to the Plan, the Plan’s maturity, and relevant historical Plan data. Definition: This is the potential for total plan liabilities to become more heavily weighted toward inactive liabilities over time. Identification: The Plan is subject to maturity risk because as Plan assets and liabilities continue to grow, the impact of any gains or losses on the assets or liabilities also becomes larger. Assessment: Currently assets are equal to 23 times last year’s contributions indicating a one-year asset loss of 10% would be equal to 2.3 times last year’s contributions. Milliman Actuarial Valuation Actuarial Standard of Practice No. 51 (ASOP 51) Retirement Risk ● ● Investment Risk ●Definition: The potential that investment returns will be different than expected. ● Interest Rate Risk ●Definition: The potential that interest rates will be different than expected. ● ● Demographic Risks ●Definition: The potential that mortality or other demographic experience will be different than expected. ● Actuarial Valuation as of December 31, 2019 Page 28 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. Assessment: If the interest rate changes by 1%, the estimated percentage change in pension liability is approximately 11%. Identification: The pension liabilities reported herein have been calculated by assuming that participants will follow patterns of demographic experience (e.g. mortality, withdrawal, disability, retirement, form of payment election, etc.) as described in the appendix. If actual demographic experience or future demographic assumptions are different from what is assumed to occur in this valuation, future pension liabilities, funding contributions and funded status may differ significantly from those presented in this valuation. Definition: This is the potential for participants to retire and receive subsidized benefits more valuable than expected. Identification: This plan has valuable early retirement benefits. If participants retire at earlier ages than anticipated by the actuarial assumptions, it is expected that additional funding will be required. Identification: To the extent that actual investment returns differ from the assumed investment return, the plan’s future assets, funding contributions and funded status may differ significantly from those presented in this valuation. Identification: The pension liabilities reported herein have been calculated by computing the present value of expected future benefit payments using the interest rate(s) described in the appendix. If interest rate(s) in future valuations are different from those used in this valuation, future pension liabilities, funding contributions and funded status may differ significantly from those presented in this valuation. As a general rule, using a higher interest rate to compute the present value of future benefit payments will result in a lower pension liability, and vice versa. One aspect that can be used to estimate the impact of different interest rates is the plan’s duration. Milliman Actuarial Valuation Member Data Valuation Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Active Members 647 605 571 524 476 Postponed Retirees 18 21 24 21 17 Retired Members 556 575 579 608 633 Disabled Members 20 21 21 21 21 Beneficiaries 115 121 122 119 117 Terminated Vested Members 175 174 178 181 180 Total 1,531 1,517 1,495 1,474 1,444 Actuarial Valuation as of December 31, 2019 Page 29 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. 0 200 400 600 800 1,000 1,200 1,400 1,600 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019Member CountActive Members Postponed Retirees Retired Members Disabled Members Beneficiaries Terminated Vested Members Milliman Actuarial Valuation Total Assets Valuation Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Market Value $244,212,239 $251,010,031 $277,976,215 $260,560,576 $296,202,647 Actuarial Value $259,774,260 $260,826,650 $271,048,527 $276,771,846 $290,911,258 Actuarial Valuation as of December 31, 2019 Page 30 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Market Value Actuarial Value Milliman Actuarial Valuation Rate of Return on Total Assets Valuation Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Market Value -0.8%4.9%12.2%-4.7%16.1% Actuarial Value 4.1%2.4%5.3%3.8%7.3% Actuarial Valuation as of December 31, 2019 Page 31 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Market Value Actuarial Value Milliman Actuarial Valuation Funded Ratio: Actuarial Value of Assets (AVA) vs. Actuarial Accrued Liability (AAL) Valuation Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Funded Ratio (AVA / AAL)87.5%82.0%83.1%82.6%82.2% Actuarial Valuation as of December 31, 2019 Page 32 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Funded Ratio (AVA / AAL) Milliman Actuarial Valuation Normal Cost Valuation Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Normal Cost $5,106,625 $5,157,148 $5,238,812 $4,902,474 $4,832,125 Actuarial Valuation as of December 31, 2019 Page 33 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Normal Cost Milliman Actuarial Valuation Actuarially Determined Contribution Valuation Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Actuarially Determined Contribution $10,145,562 $12,328,093 $12,493,916 $12,725,462 $13,398,565 Actuarial Valuation as of December 31, 2019 Page 34 Metropolitan St. Louis Sewer District Employees' Pension Plan This work product was prepared solely for the District for the purposes described herein and may not be appropriate to use for other purposes.Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work.Milliman recommends that third parties be aided by their own actuary or other qualified professional when reviewing the Milliman work product. $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 $11,000,000 $12,000,000 $13,000,000 $14,000,000 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Actuarially Determined Contribution