HomeMy Public PortalAboutMSD 12-31-21 Actuarial Valuation Milliman Actuarial Valuation
METROPOLITAN ST. LOUIS SEWER DISTRICT
EMPLOYEES' PENSION PLAN
Actuarial Valuation as of December 31, 2021
Plan Year: January 1, 2022 to December 31, 2022
Prepared by
William D. Winningham, EA, MAAA
Consulting Actuary
Michael A. Sudduth, FSA, MAAA
Consulting Actuary
Milliman, Inc.
500 North Broadway, Suite 1750
St. Louis, MO 63102 USA
Tel +1 314 231 3031
milliman.com
May 23, 2022
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, 2021 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, 2021
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 2022 calendar year
●
Actuarial Valuation as of December 31, 2021 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 31,2021 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, 2021 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.
As requested,we have performed an actuarial valuation of the Metropolitan St.Louis Sewer District
Employees'Pension Plan as of December 31,2021 for determining contributions for the calendar year
ending December 31,2022.Our findings are set forth in this actuary’s report.This report reflects the benefit
provisions in effect on December 31, 2021.
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.
The valuation results have been developed using models employing standard actuarial techniques.We have
reviewed the models,including their inputs,calculations,and outputs for consistency,reasonableness,and
appropriateness to the intended purpose and in compliance with generally accepted actuarial practice and
relevant actuarial standards of practice.The models,including all input,calculations,and output may not be
appropriate for any other purpose.
Milliman Actuarial Valuation
Actuarial Certification
(a)
(b)
We respectfully submit the following report, and we look forward to discussing it with you.
William D. Winningham, EA, MAAA Michael A. Sudduth, FSA, MAAA
Consulting Actuary Consulting Actuary
Joint Board Enrollment # 20-06367 Joint Board Enrollment # 20-06248
Actuarial Valuation as of December 31, 2021 Page 3
Metropolitan St. Louis Sewer District Employees' Pension Plan
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.
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
12/31/2020 12/31/2021
Applies to Calendar Year 2021 2022
Actuarially Determined Contribution $12,144,484 $12,342,595
Actual Contribution 12,144,484 N/A
Plan Assets
Actuarial Assumptions, Methods and Plan Provisions
Actuarial Valuation as of December 31, 2021 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 2022
calendar year.A comparison of actuarially determined contribution amounts for the current and immediately
preceding valuation are shown below:
The market value of plan assets increased from $326,912,684 at December 31,2020 to $350,373,843 at
December 31,2021.A balance sheet and statement of income and disbursements are presented on pages
7 and 8, respectively. The net market rate of return was 9.9% for the period.
The actuarial value of assets increased from $307,150,063 at December 31,2020 to $336,119,211 at
December 31,2021.The development of the December 31,2021 actuarial value of assets is presented on
page 9. The net actuarial rate of return for the period was 12.4% vs. the prior year assumed rate of 6.75%.
Due to the asset smoothing method used,there are $14,254,632 of net investment gains that have not yet
been recognized in the Actuarial Value of Assets.
The interest rate assumption was changed from 6.75%to 6.25%.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.
There was an increase in the actuarially determined contribution as compared to the preceding year.The
primary reason for the increase was the change in the interest rate assumption from 6.75%to 6.25%which
was offset by asset return on an actuarial value basis of 12.4%vs.the prior year assumed rate of 6.75%and
salary increases lower than expected.
Milliman Actuarial Valuation
Discussion of Valuation Results
Plan Population
Actuarial Experience
(Gain)/Loss
Gain on Actuarial Assets ($17,105,000)
Salary Increases Lower than Expected (1,426,000)
Liability Loss on All Other Sources 2,990,000
Net Actuarial Gain (15,541,000)
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, 2021 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 450 in the previous valuation to
396 in the current valuation.The number of retired members,disabled members and beneficiaries
increased from 800 to 841.The number of deferred vested members decreased from 172 to 164.A
detailed reconciliation can be found on page 26.
The Plan experienced an overall net actuarial gain for the Plan year ending December 31,2021.The major
components of the gain are summarized below.
Milliman Actuarial Valuation
Summary of Valuation Results
Valuation Date Valuation Date
12/31/2020 12/31/2021
Participant Data
Number of Members
Active Members 450 396
Retired Members 662 701
Disabled Members 19 18
Beneficiaries 119 122
Terminated Vested Members 172 164
Total 1,422 1,401
Covered Payroll 34,391,330 30,947,530
Assets
Market Value of Assets 326,912,684 350,373,843
Rate of Return 12.5%9.9%
Actuarial Value of Assets 307,150,063 336,119,211
Rate of Return 7.7%12.4%
Valuation Liabilities
Valuation Interest Rate 6.75%6.25%
Present Value of Future Benefits 391,412,769 420,795,609
Entry Age Normal Accrued Liability 356,407,862 384,244,899
Unfunded Entry Age Normal Accrued Liability 49,257,799 48,125,688
Costs and Contributions
Actuarially Determined Contribution 12,144,484 12,342,595
Percentage of Covered Payroll 35.31%39.88%
Actuarial Valuation as of December 31, 2021 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
12/31/2020 12/31/2021
Assets
Money market funds $3,237,837 $3,666,492
Receivables and prepaid expenses:
Interest and dividends receivable 236,729 237,314
Total receivables 236,729 237,314
Investments:
Collective investment funds 171,767,753 185,031,152
Mutual funds 60,179,174 62,608,137
Real estate investments 30,265,219 29,021,383
Corporate obligations 27,630,867 27,025,796
Domestic common stocks 18,552,256 21,934,156
US Treasury and agency obligations 13,994,724 19,727,449
Municipal obligations 1,292,527 1,370,872
Total investments 323,682,520 346,718,945
Total assets 327,157,086 350,622,751
Liabilities
Accrued expenses 244,402 248,908
Total liabilities 244,402 248,908
Net Assets $326,912,684 $350,373,843
Actuarial Valuation as of December 31, 2021 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, 2021 $326,912,684
Income
Member contributions $0
Employer contributions 12,144,484
Total contributions 12,144,484
Investment income (including realized and unrealized capital gains/losses)33,133,972
Total additions 45,278,456
Disbursements
Benefit payments 20,665,530
Expenses 1,151,767
Total deductions 21,817,297
Net increase (decrease)23,461,159
Market Value of Assets as of December 31, 2021 $350,373,843
Net Rate of Return 9.9%
Actuarial Valuation as of December 31, 2021 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
2021 2020
Plan Year Plan Year
Prior Year Actuarial Value of Assets $307,150,063 $290,911,258
Contributions 12,144,484 13,398,565
Benefit Payments (20,665,530)(19,273,097)
Expenses (1,151,767)(1,013,151)
Expected Return 20,732,629 19,636,510
Net Adjustment 11,059,816 12,748,827
12/31/2021 12/31/2020 12/31/2019
Market Value $350,373,843 $326,912,684 $296,202,647
2021 Adjustment N/A 11,059,816 11,059,816
2020 Adjustment N/A N/A 12,748,827
Adjusted Market Value 350,373,843 337,972,500 320,011,290
Actuarial Value of Assets
(Average of Adjusted Market Values)336,119,211
Return on Actuarial Value 37,490,194
Rate of Return on Actuarial Value 12.4%
Actuarial Valuation as of December 31, 2021 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
12/31/2021
Liabilities
1.Actuarial Present Value of Future Benefits
a.Active Members $169,991,113
b.Terminated Vested Members 9,391,227
c.Retired Members 215,530,347
d.Disabled Members 3,900,724
e.Beneficiaries 21,982,198
f.Total 420,795,609
Assets
1.Current Valuation Assets
a.Actuarial Value of Assets 336,119,211
2.Prospective Valuation Assets
a.Unfunded Actuarial Accrued Liability 48,125,688
b.Present Value of Future Normal Cost Contributions 36,550,710
3.Total 420,795,609
Actuarial Valuation as of December 31, 2021 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
12/31/2021
1.Present Value of Future Benefits
a.Active Members $169,991,113
b.Terminated Vested Members 9,391,227
c.Retired Members 215,530,347
d.Disabled Members 3,900,724
e.Beneficiaries 21,982,198
f.Total 420,795,609
2.Present Value of Future Normal Costs 36,550,710
3.Entry Age Accrued Liability: (1f) - (2)384,244,899
4.Actuarial Value of Assets 336,119,211
5.Entry Age Unfunded Accrued Liability: (3) - (4)48,125,688
6.Entry Age Normal Cost 4,554,971
7.Amortization of Unfunded Actuarial Accrued Liability (see following page)7,061,589
8.Actuarially Determined Contribution at Beginning of Year: (6) + (7)11,616,560
9.Actuarially Determined Contribution at End of Year: (8) x 1.0625 12,342,595
10.Covered Payroll 30,947,530
11.Actuarially Determined Contribution as a Percentage of Payroll
a.Normal Cost: (6) x 1.0625 / (10)15.64%
b.Amortization Payment: (7) x 1.0625 / (10)24.24%
c.Total 39.88%
Actuarial Valuation as of December 31, 2021 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 12/31/2020 to Base 12/31/2021 Payment
12/31/2008 Amortization Restarted $28,387,059 20 $12,475,247 $2,841,827 $10,475,499 $2,522,528
12/31/2009 Experience Loss 9,801,628 20 4,971,789 978,299 4,329,086 867,750
12/31/2010 Experience Loss 6,504,951 20 3,697,888 648,403 3,299,093 573,746
03/31/2011 Plan Change (374,381)20 (218,880)(37,277)(196,377)(32,952)
12/31/2011 Experience Gain (5,769,079)20 (3,610,040)(573,785)(3,279,933)(506,487)
12/31/2011 Assumption Changes 14,265,441 20 8,926,700 1,418,822 8,110,430 1,252,412
12/31/2012 Experience Gain (2,111,370)20 (1,432,201)(209,708)(1,319,167)(184,684)
12/31/2013 Assumption Change (269,285)20 (195,672)(26,693)(182,187)(23,455)
12/31/2013 Experience Gain (4,827,108)20 (3,507,845)(478,244)(3,266,381)(420,213)
12/31/2014 Experience Gain (6,122,993)20 (4,814,020)(594,966)(4,544,000)(521,280)
12/31/2014 Assumption Changes 6,500,227 20 5,110,607 631,621 4,823,952 553,396
12/31/2015 Experience Loss 2,577,288 20 2,137,913 250,283 2,031,939 218,751
12/31/2016 Experience Loss 10,884,162 20 9,456,040 1,055,873 9,038,450 921,116
12/31/2016 Assumption Changes 11,664,881 20 10,134,324 1,131,611 9,686,780 987,188
12/31/2017 Experience Gain (379,023)20 (343,132)(36,731)(329,562)(31,982)
12/31/2017 Assumption Change 1,667,047 20 1,509,190 161,553 1,449,507 140,665
12/31/2018 Experience Loss 6,310,993 20 5,926,886 611,448 5,715,503 531,401
12/31/2019 Experience Gain (3,162,539)20 (3,069,539)(306,215)(2,970,518)(265,709)
12/31/2019 Assumption Changes 11,910,886 20 11,560,628 1,153,279 11,187,691 1,000,724
12/31/2020 Experience Gain (9,458,084)20 (9,458,084)(915,785)(9,180,720)(793,161)
12/31/2021 Experience Gain (15,540,945)20 N/A N/A (15,540,945)(1,301,231)
12/31/2021 Assumption Change 18,787,548 20 N/A N/A 18,787,548 1,573,066
Total 81,247,304 49,257,799 7,703,615 48,125,688 7,061,589
Actuarial Valuation as of December 31, 2021 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, 2021
1.Unfunded Accrued Liability as of December 31, 2020 $49,257,799
2.Normal Cost due December 31, 2020 4,477,486
3.Interest on (1) and (2) at 6.75%3,627,131
4.Employer Contributions for Prior Plan Year 12,144,484
5.Interest on (4) at 6.75%338,847
6.Change in Unfunded Accrued Liability due to Actuarial Assumption Changes 18,787,548
7.Change in Unfunded Accrued Liability due to Plan Amendment 0
8.Expected Unfunded Actuarial Accrued Liability as of December 31, 2021:
(1) + (2) + (3) - (4) - (5) + (6) + (7)63,666,633
9.Entry Age Accrued Liability as of December 31, 2021 384,244,899
10.Actuarial Value of Assets as of December 31, 2021 336,119,211
11.Unfunded Actuarial Accrued Liability as of December 31, 2021: (9) - (10)48,125,688
12.(Gain)/Loss for Plan Year Ending December 31, 2021: (11) - (8)(15,540,945)
Actuarial Valuation as of December 31, 2021 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, 2021 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 12/31/2021)
6.25%, compounded annually. For the previous valuation, the assumption was 6.75%, compounded annually.
Salary Increases
4.25% per annum
Social Security Wage Base
Assumed to increase at a rate of 3.50% per annum
Inflation/Cost-of-Living Adjustment
2.50% per annum
Mortality (Effective 12/31/2019)
Actuarial Valuation as of December 31, 2021 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.
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-
2021 (improvement scale updates published annually)
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.
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, 2021 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, 2021 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, 2021 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.
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
Employed on a regular,full-time permanent basis;1,000 hours deemed full-time.Does not include technical
personnel employed on special occasions.
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, 2021 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, 2021 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, 2021 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, 2021 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
12/31/2020 12/31/2021
1.Active Members (Including Postponed Retirees)
a.Count 450 396
b.Plan Compensation $36,575,206 $33,104,372
c.Average Compensation $81,278 $83,597
d.Average Age 52.8 53.0
e.Average Service 20.8 21.0
2.Retired Members
a.Count 662 701
b.Total Monthly Benefits $1,389,089 $1,527,317
c.Average Monthly Benefits $2,098 $2,179
3.Disabled Members
a.Count 19 18
b.Total Monthly Benefits $29,645 $29,498
c.Average Monthly Benefits $1,560 $1,639
4.Beneficiaries
a.Count 119 122
b.Total Monthly Benefits $169,585 $181,566
c.Average Monthly Benefits $1,425 $1,488
5.Terminated Vested Members
a.Count 172 164
b.Total Monthly Benefits $106,565 $104,679
c.Average Monthly Benefits $620 $638
Actuarial Valuation as of December 31, 2021 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, 2021)
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 0 4 0 0 0 0 0 0 4
35 to 39 0 0 0 23 7 0 0 0 0 0 30
40 to 44 0 0 0 40 14 0 0 0 0 0 54
45 to 49 0 0 0 21 19 14 2 0 0 0 56
50 to 54 0 0 0 16 18 14 13 1 1 0 63
55 to 59 0 0 0 19 18 17 15 13 11 0 93
60 to 64 0 0 0 12 10 11 13 12 11 5 74
65 to 69 0 0 0 3 3 2 2 4 3 4 21
70 and up 0 0 0 0 0 0 0 1 0 0 1
Total *0 0 0 138 89 58 45 31 26 9 396
* Includes 22 Postponed Retirees
Actuarial Valuation as of December 31, 2021 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 1,702
35 - 39 11 866
40 - 44 8 696
45 - 49 19 1,021
50 - 54 39 663
55 - 59 31 742
60 - 64 36 439
65 and Over 19 202
Total 164 $638
Average Monthly
Age Group Count Benefit Amount
Under 55 12 $2,877
55 - 59 62 1,798
60 - 64 141 2,218
65 - 69 206 2,005
70 - 74 212 2,214
75 - 79 89 2,195
80 - 84 66 1,858
85 - 89 36 1,769
90 and over 17 914
Total 841 2,067
Actuarial Valuation as of December 31, 2021 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, 2021 427 23 800 172 1,422
New Entrants 0 0 0 0 0
Moved to Postponed Retirees (9)9 0 0 0
Retired (38)(10)62 (14)0
Became Disabled 0 0 0 0 0
Lump Sum Payouts 0 0 0 0 0
Died with Beneficiary 0 0 (11)0 (11)
New Beneficiaries 0 0 11 0 11
Died without Beneficiary 0 0 (19)0 (19)
Terminated with Vesting (6)0 0 6 0
Terminated without Vesting 0 0 0 0 0
Rehired 0 0 0 0 0
Certain Period Expired 0 0 (2)0 (2)
No Longer Due Benefits 0 0 0 0 0
Data Corrections 0 0 0 0 0
Total Changes (53)(1)41 (8)(21)
Count as of December 31, 2021 374 22 841 164 1,401
Actuarial Valuation as of December 31, 2021 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, 2021 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 29 times last year’s contributions indicating a one-year
asset loss of 10% would be equal to 2.9 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, 2021 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 10%.
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 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Active Members 571 524 476 427 374
Postponed Retirees 24 21 17 23 22
Retired Members 579 608 633 662 701
Disabled Members 21 21 21 19 18
Beneficiaries 122 119 117 119 122
Terminated Vested Members 178 181 180 172 164
Total 1,495 1,474 1,444 1,422 1,401
Actuarial Valuation as of December 31, 2021 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
12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Me
m
b
e
r
C
o
u
n
t
Active Members Postponed Retirees Retired Members
Disabled Members Beneficiaries Terminated Vested Members
Milliman Actuarial Valuation
Total Assets
Valuation Date 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Market Value $277,976,215 $260,560,576 $296,202,647 $326,912,684 $350,373,843
Actuarial Value $271,048,527 $276,771,846 $290,911,258 $307,150,063 $336,119,211
Actuarial Valuation as of December 31, 2021 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
$350,000,000
$400,000,000
12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Market Value Actuarial Value
Milliman Actuarial Valuation
Rate of Return on Total Assets
Valuation Date 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Market Value 12.2%-4.7%16.1%12.5%9.9%
Actuarial Value 5.3%3.8%7.3%7.7%12.4%
Actuarial Valuation as of December 31, 2021 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%
12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Market Value Actuarial Value
Milliman Actuarial Valuation
Funded Ratio: Actuarial Value of Assets (AVA)
vs. Actuarial Accrued Liability (AAL)
Valuation Date 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Funded Ratio (AVA / AAL)83.1%82.6%82.2%86.2%87.5%
Actuarial Valuation as of December 31, 2021 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%
12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Funded Ratio (AVA / AAL)
Milliman Actuarial Valuation
Normal Cost
Valuation Date 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Normal Cost $5,238,812 $4,902,474 $4,832,125 $4,477,486 $4,554,971
Actuarial Valuation as of December 31, 2021 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
12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Normal Cost
Milliman Actuarial Valuation
Actuarially Determined Contribution
Valuation Date 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Actuarially Determined Contribution $12,493,916 $12,725,462 $13,398,565 $12,144,484 $12,342,595
Actuarial Valuation as of December 31, 2021 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
12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021
Actuarially Determined Contribution
Milliman Actuarial Valuation
Projected Benefit Payments
Actuarial Valuation as of December 31, 2021 Page 35
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 M
$2 M
$4 M
$6 M
$8 M
$10 M
$12 M
$14 M
$16 M
$18 M
$20 M
$22 M
$24 M
$26 M
$28 M
$30 M
$32 M
2022 2032 2042 2052 2062 2072 2082 2092 2102
Active Members Terminated Vested Members Retired Members