HomeMy WebLinkAbout03/09/2023 - Retirement Committee - Agenda - Regular Meeting
General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES’ RETIREMENT COMMITTEE
AGENDA
FOR
MARCH 9, 2023
3:00 PM
ZOOM MEETING
https://us02web.zoom.us/j/8140111859
Meeting ID: 814 011 1859
1. Citizen Participation and Plan Member Comments
2. Consider Approving the Minutes from the Meeting of February 9, 2023
3. Plan Participant Updates (LeeAnna Vargas)
4. Review Draft Actuarial Valuation Report (Joel Stewart)
Consider Motion to Approve Report
5. Review Investment Report (Randy Bailey)
6. Consider a motion to go into Executive Session to discuss GERP in-service
distributions
7. Other Business
General Employees Retirement
Committee
215 N. Mason
2nd Floor
PO Box 580
Fort Collins, CO 80522
970.221.6788
970.221.6782 - fax
fcgov.com
GENERAL EMPLOYEES’ RETIREMENT COMMITTEE ZOOM MEETING
MINUTES
FEBRUARY 9, 2023
11 AM
Committee Members Present: Clark Mapes, Chair
Del Bernhardt
Ralph Zentz
Jackie Darner
Members Absent: Randy Bailey, Vice Chair
Others Present: Blaine Dunn
Amber Fluke
LeeAnna Vargas
Joel Stewart
Jenny Lopez Filkins
Carolyn Koontz
___________________________________________________________________
Meeting called to order at 11:02 am
1. Citizen Participation and Plan Member Comments – none noted.
2. Consider Approving the Minutes from the Meeting of January 12, 2023
Ralph Zentz made a motion to approve the minutes as presented.
Del Bernhardt seconded the motion.
Approval confirmed via roll call; Ralph Zentz, Del Bernhardt, Jackie Darner, and Clark
Mapes.
3. Plan Participant Updates (LeeAnna Vargas)
We notified GERP members that we are in the process of updating beneficiary designations
and personal information, therefore we asked them to complete a Beneficiary Form and PI
form. We also requested email addresses from everyone so we could have them on file for
future correspondence.
65 members were notified via mail on January 11th.
7 internal active employees have not responded so we extended the deadline to February
13th and send them a reminder email. The next step will be a follow-up phone call if we
don’t receive their forms by February 13th.
1 active employee is on short term disability, so forms were mailed to their home address.
10 term vested members have not returned their forms, but we are in contact with them.
2 were mailed and returned. We are unable to locate the members but we are working on
finding new addresses by contacting other family members through the online system.
2
We are hoping to wrap this project up by the end of February.
Regarding current GERP eligible members in 2023. 10 are eligible for their benefit. 6 are
currently in progress and we are in the process of contacting the other 4 members who are
eligible this year.
We have one term vested member over 65 who has been eligible for awhile but has not
made an election. We are communicating with this member.
4. Election of Officers
Chair: Del Bernhardt nominated Clark Mapes to continue as chair.
Ralph Zentz seconded the nomination.
Approval confirmed via roll call; Ralph Zentz, Del Bernhardt, Jackie Darner, and Clark
Mapes.
Vice Chair: Clark Mapes nominated Randy Bailey to continue as vice chair.
Ralph Zentz seconded the nomination.
Approval confirmed via roll call; Ralph Zentz, Del Bernhardt, Jackie Darner, and Clark
Mapes.
5. Review Key Assumptions to be used in Annual Actuarial Evaluation
(Joel Stewart)
Joel Stewart recommended that the GERC make no changes recommended to the
assumptions listed below;
At the beginning of the year, there were26 active members continuing to earn benefits for
each year of service.
42 deferred participants (who have terminated and are no longer earning new benefits but
have not yet begun to receive a distribution under the Plan).
271 members are receiving their monthly distribution benefits.
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5
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No changes recommended to the assumptions as reviewed above;
A motion to accept the Annual Actuarial Evaluation Assumptions as presented was made
by.
Ralph Zentz. The motion was seconded by Del Bernhardt.
Approval confirmed via roll call; Ralph Zentz, Del Bernhardt, Jackie Darner, and Clark
Mapes.
6. Review GERC Member Acceptance of Trust form prior to signing;
This is done on an annual basis. A very significant duty and obligation for members. The
wording makes it clear that it is a heavy burden. The key is for members to act within the
scope of their duties as a member of this committee. If a member were sued and they were
acting within the scope of their duties and met other requirements described in City Code,
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the city would not only indemnify the member, the city would also defend the member in
such a claim.
Carolyn will distribute this document via DocuSign for committee members signatures.
7. Review Investment Report (Blaine Dunn)
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8. Other Business
Blaine Dunn; we will be switching the trustees for the investments sitting at Fidelity. Clark
Mapes, Chair is a current trustee, and the second trustee is the vice chair. We will be
working on adding Randy Bailey, Vice Chair as a trustee as well.
Meeting adjourned at 12:15 pm
Clark Mapes, Chair
Carolyn Koontz, Staff Liaison
MARCH 9, 2023Joel Stewart, FSA, EA, MAAABrian Nichols, EA, MAAACity of Fort Collins General Employees’ Retirement PlanJanuary 1, 2023 Actuarial Valuation
Meeting Agenda21. Actuarial Topics –[company X] Pension Plan2. Legislative/Compliance Topics3. Other TopicsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.Purpose of ValuationPension Valuation ElementsReview Assets and LiabilitiesOverview of ResultsFunding Analysis (Resources vs. Obligations)Solvency Projections
3Purposes of a valuationReview demographic and financial experienceDetermine the funded status of the planMeasure adequacy of the plan’s funding policyProvide financial reporting information pursuant to accounting standardsProvide an assessment and disclosure of risk (see full valuation report for additional detail).This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
Necessary Elements of a Valuation41. Actuarial Topics –[company X] Pension Plan2. Legislative/Compliance Topics3. Other TopicsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.Actuarial Cost MethodValuation ResultsDataAssetsAssumptionsPlan of BenefitsActuaries provide information based on:Probability, Statistics,Financial mathematicsSo the Plan Sponsor is informed about…Projected annual level of plan benefitsFunding of those benefits
5Pension Plan EquationAssumptions do affect calculated rates and liabilitiesAssumptions do not affect the plan’s long-term contribution costThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.$7$$$$$$$$$$$$$Assets$$$$$$$$$$PENSIONFUND$$benefitsexpensescontributionsinvestment earnings
6Data summary2022 2023ActivesNumber of Participants28 26Average Age59.3 59.8Average Compensation$70,331 $74,237Average Years of Service29.7 30.5Vested InactiveNumber of Participants51 42Average Monthly Benefits$822 $833RetireesNumber of Participants273 271Average Monthly Benefits$1,374 $1,389Total Participants352 339This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
7Review of key assumptionsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs..Long-term Investment Return Assumption of 6.0%20-year geometric mean return using Milliman capital market assumptions and current allocation is 6.3%6.5% for 20-year outlook from Horizon studyChange to 6.0% adopted 1/1/2021Longevity: Pub-2010 / MP-2020 (Generational)Pub-2010 was adopted 1/1/2019MP-2020 was adopted 1/1/2021Generational projection reflects longer life expectancy for younger membersI.e., a 65 year old today has a different life expectancy than someone turning 65 20 years from nowWage Increase3.25%, includes inflation (2.25%) plus productivity (1.00%)Lump sum election15% for retirement from active status; 30% for retirement from terminated status
Summary of Plan Provisions81. Actuarial Topics –[company X] Pension Plan2. Legislative/Compliance Topics3. Other TopicsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.Normal Retirement Benefit1.5% x Average Compensation x Credited ServiceAverage Compensation 60 Month Average of Annualized CompensationCredited Service Hours worked in a plan year ÷ 2,080Normal Form of PaymentLife Annuity (other optional forms available, including single sum payment)Normal RetirementAge 65Early RetirementAge 55 (benefit reduced for earlier commencement)
Financial Data - 202291. Actuarial Topics –[company X] Pension Plan2. Legislative/Compliance Topics3. Other TopicsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.1.Market Value of Assets, January 1, 2022 $ 54,549,2852.Incomea)Contributions $ 1,341,392b)Income and appreciation (7,647,164)c)Total $ (6,305,772)3.Disbursementsa)Monthly benefits $ 4,604,194b)Lump sum payments 306,191c)Expenses 25,123d)Total $ 4,935,5084.Net Increase/(Decrease) $(11,241,280) 5.Market Value of Assets, January 1, 2023 $ 43,308,0056.Return on Plan Assets (Prior Year) -14.3%
10Development of projected benefit payments1/1/2023 valuation's projected benefit paymentsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs..Actual benefit payments (including lump sums): 2022 = $4.9 million2021 = $4.5 million2023 projected payments$5.1 million2033 projected payments$4.4 million
11Development of liabilitiesLiabilities are the present value of projected benefit paymentsPresent values are as of a particular date and use a discount rate to convert the estimated value of future payments in today’s dollarsPresent values for this valuation“As of” valuation date is 1/1/2023The discount rate used is a 6.0% investment return assumptionYear of PaymentProjectedPayment1/1/2023 Present Value of Projected Payment2023 $5.1 million $5.1 million2033 $4.4 million $2.5 million**$2.5 million invested at 1/1/2023 grows to $4.5 million in 10 years if it earns 6.0% per yearThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.As of 1/1/2023…Discounted present value at 6.0% of all projected benefits is $59.0 million
12Actuarial Liability14%7%79%ActivesVested InactiveRetireesThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
13Overview of Results - Funding2022 20231. Market Value of Assets (MVA) $ 54,551,272 $ 43,308,0052. Return on MVA (prior year) 12.7% -14.3%3. Discount Rate for Liabilities 6.0% 6.0%4. Present Value of Future Benefits $ 60,197,971 $ 58,960,3035. Actuarial Liability (AL) $ 59,647,727 $ 58,477,3916. Unfunded Actuarial Liability (UAL)(AL – MVA)$ 5,096,455 $ 15,169,3867. Funded Ratio (MVA÷AL)91.46% 74.06%8. Normal Cost + Expenses(as a % of Payroll)$ 148,3377.53%$ 135,4797.02%9. Years of Supplement to Amortize UAL 5 25This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
Gain/Loss141. Actuarial Topics –[company X] Pension Plan2. Legislative/Compliance Topics3. Other TopicsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.1. Actual Unfunded Actuarial Liability (UAL), 1/1/2022 $5,096,4552. Expected Changes during 2022 (919,147)3. Expected UAL, 1/1/2023 $4,177,308Changes:4. Investment Experience $10,815,9745. Demographic Experiencea. Salary (Gain)/Loss $104,395b. Termination/Retirement Experience 88,524c. Pensioner Mortality Experience (36,204)d. Other 19,389e. Total$176,1046. Assumption Changes$07. Plan Changes$08. UAL, 1/1/2023: 3. + 4. + 5e. + 6. + 7. $15,169,386
15Summary of Resources and ObligationsObligations consist of the Actuarial Liability (Current) and the amount of the total liability attributable to future service, the Present Value of Future Normal Costs (Future)Resources consist of the current market value of assets (Current) and the present value of the future anticipated payroll contributions of 10.5% of compensation (Future)The difference of $14.7 million is the amount anticipated to be funded through the supplemental contribution of $1.12 millionper year. This equates to about 25 years as of the valuation date.This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.$0$10$20$30$40$50$60$70Obligations ResourcesMillionsCurrentFutureFuture Supplemental
16Overview of Results – GASB 67/68 Disclosure Information12/31/2021 12/31/20221. Discount Rate for Liabilities 6.00% 6.00%2. Total Pension Liability (TPL) $ 59,647,727 $ 58,477,3913. Fiduciary Net Position (FNP) $ 54,551,272 $ 43,308,0054. Net Pension Liability (NPL) $ 5,096,455 $ 15,169,3865. FNP as a % of TPL 91.46% 74.06%The TPL is calculated using a discount rate of 6.00%, the Plan’s long-term expected rate of return assumption.The use of the long-term expected rate of return assumption is based on Plan’s Depletion Date Projection, which takes into account the current FNP, projected net cash flow, and reliance on the adopted policy of supplemental contributions. If the Plan were projected to run out of money the TPL would be calculated using a blended discount rate incorporating the current rates of 20-year tax-exempt municipal bonds. The 20-year Muni Bond rate was 3.72% at 12/31/2022.The Depletion Date Projection is reviewed annually based on factors such as the current FNP and future anticipated level of contributions.This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
17Low Default Risk Obligation Measure (LDROM)January 1, 2022 January 1, 20231. Discount Rate for Liabilities 2.75% 5.07%2. Liability (Accrued Basis) $ 78,862,272 $ 61,650,6753. Market Value of Assets $ 54,551,272 $ 43,308,0054. Funded Percentage 69.2% 70.3%The liability is calculated using the corporate bond yield curve at the measurement date.Difference between LDROM liability and actuarial liability is a measure of the hoped for, but not guaranteed, financial benefit of investing in risk-bearing, return-seeking asset classes The liability is calculated using the traditional unit credit ‘Accrued benefit’ allocation method (does not include projected future service or pay increases).Does not include cost of future benefit accruals.This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
18Projection of Contributions, Benefit Payments, Obligations, and Market Value of AssetsAssumes Market Value of Assets earns 6.0% per annum, and payroll contributions are 10.5% of compensation.Includes excess contributions of $1,120,000 for 2022 - 2048.This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, and may not be appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.
19Projection of Contributions, Benefit Payments, Obligations, and Market Value of Assets ($millions)Assumes Market Value of Assets earns 6.0% per annum, and payroll contributions are 10.5% of compensation.Includes excess contributions of $1,120,000 for 2021 - 2048.This work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.Year Assets Obligations ContributionBenefit Payments Year Assets Obligations ContributionBenefit Payments2023 43.31 58.96 1.32 5.07 2043 11.94 17.26 1.12 2.722024 42.03 57.26 1.28 4.93 2044 10.97 15.48 1.12 2.522025 40.77 55.61 1.26 5.20 2045 10.15 13.81 1.12 2.322026 39.13 53.57 1.24 5.02 2046 9.48 12.24 1.12 2.112027 37.56 51.60 1.23 5.06 2047 8.99 10.79 1.12 1.912028 35.85 49.47 1.21 4.93 2048 8.67 9.46 1.12 1.722029 34.13 47.34 1.19 4.86 2049 8.52 8.25 0.00 1.542030 32.36 45.15 1.18 4.66 2050 7.40 7.16 0.00 1.372031 30.69 43.04 1.17 4.69 2051 6.40 6.18 0.00 1.202032 28.88 40.78 1.16 4.50 2052 5.49 5.30 0.00 1.052033 27.13 38.57 1.15 4.39 2053 4.69 4.54 0.00 0.912034 25.40 36.35 1.15 4.23 2054 3.98 3.86 0.00 0.792035 23.72 34.16 1.15 4.08 2055 3.35 3.28 0.00 0.682036 22.08 31.99 1.14 4.04 2056 2.80 2.77 0.00 0.582037 20.39 29.73 1.14 3.92 2057 2.32 2.34 0.00 0.492038 18.71 27.47 1.13 3.70 2058 1.89 1.97 0.00 0.422039 17.15 25.29 1.13 3.52 2059 1.52 1.65 0.00 0.352040 15.69 23.17 1.13 3.30 2060 1.19 1.39 0.00 0.302041 14.35 21.15 1.13 3.17 2061 0.89 1.16 0.00 0.252042 13.06 19.14 1.12 2.93 2062 0.63 0.97 0.00 0.21
Certification201. Actuarial Topics –[company X] Pension Plan2. Legislative/Compliance Topics3. Other TopicsThis work product was prepared solely for the City of Fort Collins and the General Employees Retirement Committee, 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. Any recipient of this work product who desires professional guidance should engage qualified professionals for advice appropriate to its own specific needs.Except as otherwise indicated in this presentation, the explanatorynotes contained in our January 1, 2023 draft actuarial valuation report, including statements of reliance andlimitations on use, continue to apply.The results in this report were developed using models intended for valuations that use standard actuarial techniques. The intent of the models is to estimate future plan costs.We have reviewed the models, including their inputs, calculations and outputs for consistency, reasonableness and appropriateness to the intendedpurpose and in compliancewith generally recognized and accepted actuarial practice and relevant actuarial standards of practice.Milliman’s work is prepared solely for the use and benefit of the City of Fort Collins General Employees’ Retirement Plan (“Plan”). To the extent that Milliman’s work is not subjectto disclosure under applicable public record laws, Milliman’s work may not be provided to third parties without Milliman’s prior written consent. Milliman does not intend to benefitor 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 signinga Release, subject to the following exception(s):a. The Plan 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 notuse Milliman’s work for any purpose other than to benefit the Plan.b. The Plan may provide a copy of Milliman’s work, in its entirety, to other government entities, as required by law.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 theirown specific needs.The consultants who worked on this assignment are actuaries. Milliman’s advice is not intended to be a substitute for qualified legal or accounting counsel.On the basis of the foregoing, I hereby certify that, to the best of my knowledge and belief, this report is complete and accurate and has been prepared inaccordance withgenerally recognized and accepted actuarial principles and practices which are consistent with the principles prescribed by the Actuarial Standards Board and theCode ofProfessional Conduct and Qualification Standards for Actuaries Issuing Statements of Actuarial Opinionin the United States published by the American Academy of Actuaries. Iam a member of the American Academy of Actuaries and meet the Qualification Standards to render the actuarial opinion contained herein._______________________Joel E. Stewart, FSA, EA, MAAAPrincipal and Consulting Actuary
DRAFTMilliman Actuarial Valuation
Issued March 3, 2023
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
City of Fort Collins
General Employees’ Retirement Plan
January 1, 2023 Actuarial Valuation
Prepared by:
Joel E. Stewart, FSA, EA, MAAA
Principal and Consulting Actuary
Brian C. Nichols, EA, MAAA
Associate Actuary
Milliman, Inc.
1400 Wewatta Street, Suite 900
Denver, CO 80202-5549
Tel +1 303 299 9400
Fax +1 303 299 9018
milliman.com
DRAFT1400 Wewatta Street
Suite 900
Denver, CO 80202-5549
USA
Tel +1 303 299 9400
milliman.com
\\denver-wr\WR\FortCollinsCity\AC\FinalDocs\23val.docx
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
March 3, 2023
General Employees’ Retirement Committee
City of Fort Collins
215 North Mason Street
Fort Collins, Colorado 80522
Re: City of Fort Collins General Employees’ Retirement Plan - 2023 Actuary’s Report
Dear Retirement Committee:
As requested, we performed an actuarial valuation of the City of Fort Collins General Employees’
Retirement Plan as of January 1, 2023. Our findings are set forth in this actuary’s report. This report reflects
the benefit provisions in effect as of January 1, 2023.
In preparing this report, we relied, without audit, on information (some oral and some in writing) supplied by
City staff. This information includes, but is not limited to, plan provisions, participant census 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.
All costs, liabilities, rates of interest, and other factors for the Plan have been determined on the basis of
actuarial assumptions and methods which are individually reasonable (taking into account the experience
of the Plan and reasonable expectations); and which, in combination, offer a reasonable estimate of
anticipated experience affecting the Plan. Further, in our opinion, each actuarial assumption used is
reasonably related to the experience of the Plan and to reasonable expectations which, in combination,
represent a reasonable estimate of anticipated experience under the Plan.
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 Retirement Committee has
the final decision regarding the appropriateness of the assumptions and adopted them at their February
2023 meeting.
Actuarial computations presented in this report are for purposes of determining the recommended funding
amounts for the Plan. Actuarial computations presented in this report under GASB Statements Nos. 67 and
68 are for purposes of assisting the Plan and Sponsor in fulfilling their financial accounting requirements.
The computations prepared for these two purposes may differ as disclosed in our report. The calculations
in the enclosed report have been made on a basis consistent with our understanding of the Plan’s funding
DRAFTGeneral Employees’ Retirement Committee
City of Fort Collins
March 3, 2023
2
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
requirements and goals and of the plan provisions described in Appendix B 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.
The valuation results were developed using models intended for valuations that use standard actuarial
techniques. The intent of the models is to estimate future plan costs. We have reviewed the models, including
their inputs, calculations, and outputs for consistency, reasonableness, and appropriateness to the intended
purpose and in the compliance with generally accepted actuarial practice and relevant actuarial standards of
practice.
Milliman’s work is prepared solely for the use and benefit of the City of Fort Collins General Employees’
Retirement Plan (“Plan”). 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 exception(s):
(a)The Plan 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 System.
(b)The Plan may provide a copy of Milliman’s work, in its entirety, to other governmental entities,
as required by law.
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.
The consultants who worked on this assignment are pension actuaries. Milliman’s advice is not intended to
be a substitute for qualified legal or accounting counsel.
The signing actuaries are independent of the Plan Sponsor. We are not aware of any relationship that would
impair the objectivity of our work.
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 which are consistent with the principles prescribed by the Actuarial
Standards Board and the Code of Professional Conduct and Qualification Standards for Actuaries Issuing
Statements of Actuarial Opinion in the United States published by the American Academy of Actuaries. We
are members of the American Academy of Actuaries and meet the Qualification Standards to render the
actuarial opinion contained herein.
We respectfully submit the following report, and we look forward to discussing it with you.
Joel E. Stewart, FSA, EA, MAAA Brian C. Nichols, EA, MAAA
Principal and Consulting Actuary Associate Actuary
JES/BCN:trb
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
TABLE OF CONTENTS
PAGE
EXECUTIVE SUMMARY ................................................................................................................ 1
VALUATION RESULTS
Table 1 Statement of Market Value of Assets ........................................................ 6
Table 2 Change in Market Value of Assets ............................................................ 7
Table 3 Investment Return ............................................................................................ 8
Table 4 Actuarial Balance Sheet ................................................................................... 9
Table 5 Unfunded Actuarial Liability ........................................................................... 10
Table 6 Funding Analysis ............................................................................................ 11
Table 7 Historical Statistics ......................................................................................... 12
Table 8 Twenty-Year Projection of Benefit Payments ............................................... 13
APPENDICES
A ACTUARIAL PROCEDURES AND ASSUMPTIONS
B PLAN SUMMARY
C PARTICIPANT DATA
D RISK ASSESSMENT AND DISCLOSURE
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation
City of Fort Collins General Employees’ Retirement Plan
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EXECUTIVE SUMMARY
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 1
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
Overview
Actuarial Valuation
For Plan Year Beginning
January 1, 2022 January 1, 2023
Assets
Market Value of Plan Assets $ 54,551,272 $ 43,308,005
Return on Market Value of Plan Assets 12.7% -14.3%
Liabilities
Actuarial Present Value of Future Benefits $ 60,197,971 $ 58,960,303
Actuarial Liability $ 59,647,727 $ 58,477,391
Assumed Average Annual Long-Term Future
Investment Return (Discount Rate)
6.00%
6.00%
Normal Cost and Annual Expenses $ 148,337 $ 135,479
(as a % of Payroll) 7.53% 7.02%
Unfunded Actuarial Liability (UAL) Relative
to:
Market Value of Plan Assets $ 5,096,455 $ 15,169,386
Funded Ratio Relative to:
Market Value of Plan Assets 91.46% 74.06%
GASB 67/68 Disclosure Information
Measurement Date December 31, 2021 December 31, 2022
Discount Rate for Liabilities 6.00% 6.00%
Total Pension Liability (TPL) $ 59,647,727 $ 58,477,391
Fiduciary Net Position (FNP) $ 54,551,272 $ 43,308,005
Net Pension Liability (NPL) $ 5,096,455 $ 15,169,386
FNP as a % of TPL 91.46% 74.06%
Participant Data
Active Participants 28 26
Retired Participants and Beneficiaries 273 271
Vested Terminated Participants 51 42
Total Participants 352 339
The Actuarial Present Value of Future Benefits includes the effects of projected future service and
pay increases for current active participants, stated in present value terms using the plan’s
investment return assumption as the discount rate. The Actuarial Accrued Liability is the portion
of that amount that is allocated to service already completed as of the valuation date by
participants.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 2
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee for the purposes described herein and may not be
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Purpose of this Report
This report has been prepared for the City of Fort Collins General Employees’ Retirement Plan
as of January 1, 2023 to:
1. Review the experience for the plan year ending December 31, 2022. “Experience”
encompasses the performance of the plan’s assets during the year and changes in plan
participant demographics that impact liabilities.
2. Review the Plan’s funded ratio.
3. Review the adequacy of plan funding based on the City’s current funding policy for the plan.
4. Provide the basis for later financial reporting under Governmental Accounting Standards
Board (GASB) Statements Nos. 67 and 68.
5. Provide a risk assessment and disclosure summary, as required by Actuarial Standard of
Practice NO. 51 (ASOP 51).
Actuarial Methods and Assumptions
The methods and assumptions used in this valuation are detailed in Appendix A. An annual
assumption review was performed based on data through 2022, as documented in our annual
assumption review report delivered at the February 2023 Retirement Committee meeting. The
assumptions used in this valuation are based on the recommendations from that report, as
approved by the Retirement Committee at that meeting.
Table 5 contains additional detail quantifying the impact of the assumption changes.
Plan Provisions
The valuation reflects our understanding of the plan provisions in effect as of January 1, 2023.
Since the last valuation, our understanding is that the plan provisions have not been amended.
Please see Appendix B for a detailed summary of plan provisions.
Plan Experience
Actuarial gains or losses arise when actual experience differs from actuarial assumptions used in
the valuation. During the year ending December 31, 2022, the Plan experienced an overall
actuarial loss of approximately $11.0 million. The actuarial experience can be broken down as
follows.
Source of (Gain) or Loss Amount
Investment experience $ 10,815,974
Demographic experience 176,104
Total (gain)/loss $ 10,992,078
Plan assets returned -14.3% during 2022, falling short of the prior valuation’s return assumption
of 6.00%, and resulting in a loss of $10.8 million for the 2022 plan year.
The demographic experience was primarily due to losses from salary increases higher than
expected and fewer lump sum elections among retirees from deferred vested status. Table 5
contains additional detail on the changes in the unfunded actuarial liability from January 1, 2022
to January 1, 2023.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 3
City of Fort Collins General Employees’ Retirement Plan
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Funding Analysis
The City’s current funding policy is to contribute 10.5% of compensation for active plan
participants, plus a supplemental contribution necessary for the Plan to remain solvent. The
supplemental contribution is currently budgeted at $1.12 million per year.
The following chart compares the obligations of the Plan to the resources available to pay those
obligations. The obligations of the Plan are equal to the present value of all benefits projected to
be accrued for all current participants through their anticipated termination date. This includes the
present value of benefits attributable to service already completed as of the valuation date
(“Current”), also known as the Actuarial Liability, as well as the amounts attributable to projected
future service for current active participants (“Future”). The resources of the Plan include the value
of the assets set aside to pay for the benefits (“Current”), plus the present value of the future
expected contributions for participants in the Plan as of the valuation date (“Future”) equal to
10.5% of projected future compensation plus the supplemental contribution of $1.12 million per
year.
The present value of future benefits is $59.0 million, versus the current market value of assets of
$43.3 million and the present value of future payroll contributions of $1.0 million. The shortfall of
approximately $14.7 million is anticipated to be funded through the supplemental contribution.
This represents approximately 25 years of the $1.12 million supplemental contribution as of the
actuarial valuation date. Table 6 provides additional analysis on the current funding policy of the
City.
If all future experience follows assumptions, there are no changes to assumptions, plan provisions
or funding policy, and the policy contributions (including the supplemental contribution) are made
each year, the Plan’s funded status should improve. In addition, the declining active participant
population should result in declining contributions as the compensation base declines, absent an
increase to the supplemental funding amount.
$0
$10
$20
$30
$40
$50
$60
$70
Obligations ResourcesMillions
Current Future Future Supplemental
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January 1, 2023 Actuarial Valuation 4
City of Fort Collins General Employees’ Retirement Plan
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Risk Assessment and Disclosure
Appendix D contains a risk assessment and disclosure summary, as required by Actuarial
Standard of Practice No. 51 (ASOP 51). This appendix uses the framework of ASOP 51 to
communicate important information about significant risks to the Plan and the Plan’s maturity.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation
City of Fort Collins General Employees’ Retirement Plan
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VALUATION RESULTS
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 6
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TABLE 1
STATEMENT OF MARKET VALUE OF ASSETS
December 31, 2021 December 31, 2022
CASH AND CASH EQUIVALENTS $ 4,488,332 $ 952,561
INVESTMENTS
US Government Securities $ 9,934,322 $ 9,073,744
Corporate Bonds 2,189,589 2,256,799
Mutual Funds 37,892,739 30,980,725
Total $ 50,016,650 $ 42,311,268
RECEIVABLES
Employer Contributions $ 0 $ 0
Accrued Interest and Dividends 46,290 44,176
Total $ 46,290 $ 44,176
LIABILITIES
Expenses and Benefits Payable $ 0 $ 0
Investment Transaction 0 0
Total $ 0 $ 0
TOTAL MARKET VALUE OF ASSETS $ 54,551,272 $ 43,308,005
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 7
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TABLE 2
CHANGE IN MARKET VALUE OF ASSETS
2021 2022
Market value at end of prior year $ 51,370,772 $ 54,551,272
Audit Adjustment 0 (1,987)
Adjusted market value at beginning of year $ 51,370,772 $ 54,549,285
Income:
Contributions $ 1,361,952 $ 1,341,392
Interest Income 140,965 178,784
Net appreciation/(depreciation) 6,248,386 (7,825,948)
Total $ 7,751,303 $ (6,305,772)
Disbursements:
Benefit payments:
Periodic Payments $ 4,394,998 $ 4,604,194
Lump Sum Distributions 149,727 306,191
Expenses 26,078 25,123
Total $ 4,570,803 $ 4,935,508
Net increase/(decrease): $ 3,180,500 $ (11,241,280)
Market value at end of year $ 54,551,272 $ 43,308,005
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 8
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TABLE 3
INVESTMENT RETURN
Annual Rate of Investment Return
For One-Year Period
For Period Ending
December 31, 2022
Ending
December 31
Annual Rate
Period
Average
Annual Rate
2022 -14.3% 1 year -14.3%
2021 12.7 2 years -1.7
2020 15.0 3 years 3.6
2019 21.0 4 years 7.7
2018 -5.1 5 years 5.0
2017 16.5 6 years 6.8
2016 5.9 7 years 6.7
2015 -0.6 8 years 5.8
2014 6.0 9 years 5.8
2013 18.7 10 years 7.0
2012 11.6 11 years 7.4
2011 -3.1 12 years 6.5
2010 11.1 13 years 6.8
2009 20.5 14 years 7.8
2008 -26.5 15 years 5.1
2007 12.2 16 years 5.5
2006 13.6 17 years 5.9
2005 8.5 18 years 6.1
2004 9.5 19 years 6.3
2003 18.8 20 years 6.9
2002 -9.3 21 years 6.0
2001 -4.0 22 years 5.5
2000 -3.5 23 years 5.1
1999 21.1 24 years 5.8
1998 8.8 25 years 5.9
1997 10.5 26 years 6.1
1996 10.1 27 years 6.2
1995 13.8 28 years 6.5
1994 -0.2 29 years 6.2
* Rates of return for 1999 and earlier as reported by the prior actuary and used
without audit.
** Rates of return for 2013 and earlier are net of all expenses. Rate of return for
2014 and later are net of investment expenses only.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 9
City of Fort Collins General Employees’ Retirement Plan
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TABLE 4
ACTUARIAL BALANCE SHEET
AS OF JANUARY 1, 2023
The following table contains information on the actuarial balance sheet: The Plan’s resources and
requirements. The Plan requirements consist of the actuarial present value of projected plan
benefits as of the valuation date. Plan resources consist of plan assets, projected future normal
costs and the Plan’s unfunded actuarial liability.
REQUIREMENTS
Present Value of Projected Benefits
Retired Participants $ 46,497,190
Vested Inactive Participants 3,916,688
Active Participants
Retirement $ 7,964,169
Vested Withdrawal 89,596
Death 47,490
Disability 445,170
Total Active 8,546,425
Total Present Value of Projected Benefits $ 58,960,303
RESOURCES
Actuarial Value of Assets $ 43,308,005
Present Value of Future Normal Costs 482,912
Unfunded Actuarial Liability 15,169,386
Total $ 58,960,303
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 10
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TABLE 5
UNFUNDED ACTUARIAL LIABILITY
Actuarial Liability as of January 1, 2023
Retired Participants and Beneficiaries $ 46,497,190
Vested Inactive Participants 3,916,688
Active Participants 8,063,513
Total $ 58,477,391
Market Value of Assets $ 43,308,005
Unfunded Actuarial Liability as of January 1, 2023 $ 15,169,386
Expected Unfunded Actuarial Liability on January 1, 2023
Unfunded Actuarial Liability as of January 1, 2022 $ 5,096,455
Normal Cost 122,875
Contributions (1,341,392)
Administrative Expenses 25,123
Interest 274,247
Expected, January 1, 2023 $ 4,177,308
Changes
Investment Experience (Gain)/Loss 10,815,974
Demographic Experience (Gain)/Loss
Salary (Gain)/Loss 104,395
Active Withdrawal (Gain)/Loss 19,629
Active Retirement Experience (130,533)
Terminated Vested Retirement Experience 199,428
Pensioner Mortality (Gain)/Loss (36,204)
Other Demographic 19,389
Total Demographic Experience 176,104
Total Assumption Changes 0
Plan Changes 0
Unfunded Actuarial Liability on January 1, 2023 $ 15,169,386
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 11
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TABLE 6
FUNDING ANALYSIS
The current annual budgeted contribution is 10.5% of payroll, plus an additional supplemental
contribution of $1,120,000 per year while the Plan is underfunded. Annual costs of the Plan include
the value of benefit accrual allocated to the current year (normal cost) plus a payment towards the
Unfunded Actuarial Liability, as well as a provision for administrative expenses paid out of plan
assets. The following table shows the development of the anticipated number of years of
supplemental contribution necessary to pay off the UAL based on the current annual valuation, if all
future experience follows assumptions, there are no changes to assumptions, plan provisions or
funding policy, and the policy contributions (including the supplemental contribution) are made
each year.
Annual Cost
1. Entry Age Normal Cost $ 110,566
2. Anticipated Administrative Expenses 24,913
3. Total Annual Cost: 1. + 2. 135,479
4. Total Payroll $ 1,930,152
5. Annual Cost as a Percentage of Payroll: 3. ÷ 4. 7.02%
Percent of Payroll Contribution
6. Percent of Payroll Contribution Rate 10.50%
7. Present Value of Future Salary $ 9,018,394
8. Present Value of Future Payroll Contributions: 6. x 7. $ 946,931
9. Present Value of Future Normal Costs 482,912
10. Present Value of Payroll Contributions in excess of Normal
Cost, available to fund UAL: 8. - 9.
$ 464,019
Unfunded Actuarial Liability (UAL)
11. UAL at January 1, 2023 $ 15,169,386
12. Present Value of Payroll Contributions in excess of Normal
Cost, available to fund UAL: Line 10. above
464,019
13. Net UAL to be funded by Supplemental Contributions: 11. - 12. $ 14,705,367
Supplemental Contribution
14. Budgeted Annual Supplemental Contribution $ 1,120,000
15. Anticipated Annual Administrative Expenses 24,913
16. Net Annual Supplemental Contribution to fund UAL: 14. - 15. $ 1,095,087
Number of Years of Supplemental Contribution (as a Flat Dollar
Amount) Necessary to Fund UAL
25
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January 1, 2023 Actuarial Valuation 12
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TABLE 7
HISTORICAL STATISTICS
2023 2022 2021 2020 2019
Assets
Market Value of Assets $ 43,308,005 $ 54,551,272 $ 51,370,772 $ 48,058,021 $ 43,059,069
Market Value Return -14.3% 12.7% 15.0% 21.0% -5.1%
Present Value of Projected
Benefits
For retirees and
beneficiaries
$ 46,497,190 $ 46,916,451 $ 44,744,270 $ 43,313,186 $ 40,250,755
For terminated vested
participants
3,916,688 4,680,454 5,799,223 6,632,242 7,057,296
For active participants 8,546,425 8,601,066 10,600,344 12,186,236 16,094,733
Total $ 58,960,303 $ 60,197,971 $ 61,143,837 $ 62,131,664 $ 63,402,784
Actuarial Liability $ 58,477,391 $ 59,647,727 $ 60,484,916 $ 61,300,247 $ 62,288,923
Market Value Funded Status 74.1% 91.5% 84.9% 78.4% 69.1%
Normal Cost $ 110,566 $ 122,875 $ 144,873 $ 170,915 $ 253,853
Experience (Gain)/Loss
Investment Experience $ 10,815,974 $ (3,401,968) $ (4,143,604) $ (6,194,229) $ 5,407,238
Demographic Experience 176,104 59,231 (340,845) 224,902 554,889
Total $ 10,992,078 $ (3,342,737) $ (4,484,449) $ (5,969,327) $ 5,962,127
Participant Statistics
Retired Participants
Number 271 273 270 271 257
Average Monthly
Benefits
$ 1,389 $ 1,374 $ 1,327 $ 1,283 $ 1,249
Vested Inactive Participants
Number 42 51 64 70 78
Average Monthly
Benefits
$ 833 $ 822 $ 833 $ 864 $ 854
Active Participants
Number of Participants 26 28 34 42 57
Average Compensation $ 74,237 $ 70,331 $ 69,514 $ 68,682 $ 68,838
Average Years of
Service
30.5 29.7 30.1 29.3 28.2
Average Age 59.8 59.3 59.3 58.8 59.1
Actuarial Assumptions
Interest 6.00% 6.00% 6.00% 6.25% 6.25%
Salary Growth Table Table Table Table Table
Mortality Table Utilized Pub-2010;
Proj Gen
(MP-2020)
Pub-2010;
Proj Gen
(MP-2020)
Pub-2010;
Proj Gen
(MP-2020)
Pub-2010;
Proj Gen
(MP-2018)
Pub-2010;
Proj Gen
(MP-2018)
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 13
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TABLE 8
TWENTY-YEAR PROJECTION OF BENEFIT PAYMENTS
The following table provides a projection of benefit payments over the next twenty years. This can
be useful for the investment manager in planning future liquidity requirements.
Plan Year
Estimated Annual
Benefit Payments
2023 $5,065,000
2024 4,925,000
2025 5,202,000
2026 5,017,000
2027 5,058,000
2028 4,933,000
2029 4,865,000
2030 4,664,000
2031 4,687,000
2032 4,505,000
2033 4,388,000
2034 4,231,000
2035 4,084,000
2036 4,035,000
2037 3,922,000
2038 3,700,000
2039 3,517,000
2040 3,301,000
2041 3,174,000
2042 2,933,000
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 14
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APPENDIX A
ACTUARIAL PROCEDURES AND ASSUMPTIONS
The actuarial assumptions used in the valuation are intended to estimate future experience
affecting projected benefit flow and investment earnings. Any variations in future experience from
that expected from these assumptions will result in corresponding changes in the estimated costs
of the plan’s benefits.
The tables in this section give rates of decrement, referred to in actuarial notation by the general
symbol “q'.” The underlying theory is described more fully in Jordan, Life Contingencies, Society
of Actuaries (Second Edition, 1967), page 277. Any age referred to in a table is always the age
of the person at his or her nearest birthday.
Each assumption is reviewed for reasonableness annually, taking into account relevant factors
that may affect future experience. Such factors include:
Forward looking economic and capital market expectations
Published studies
The Plan's past experience
Recent gain and loss analyses
Please refer to the Executive Summary and Table 5 of this report for an overview of actuarial
gains and losses experienced by the Plan during the prior year. An annual assumption review
was performed based on data through 2022, as documented in our annual assumption review
report delivered at the February 2023 Retirement Committee meeting. The assumptions used in
this valuation are based on the recommendations from that report, as approved by the Retirement
Committee at that meeting.
Actuarial Cost Method
The actuarial cost method we use to calculate the funding requirements of the Plan is called the
entry age normal cost method.
Under this cost method, the actuarial present value of the projected benefits of each individual
included in the valuation is allocated on a level basis over the earnings of the individual between
entry age and assumed exit age. The portion of the actuarial present value of the projected
benefits allocated to all service prior to the valuation date is called the Actuarial Liability. The
portion of this actuarial present value of projected benefits allocated to a valuation year is called
the Normal Cost.
Asset Valuation Method
The actuarial value of assets is equal to the market value.
Investment Earnings
6.00% per annum, compounded annually net of investment-related expenses.
The investment return assumption was selected based on the Plan’s asset allocation and capital
market assumptions from several sources, including published studies summarizing the
expectations of various investment experts. This information was then used to develop forward
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 15
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looking long-term expected returns, producing a range of reasonable expectations according to
industry experts. Based on the resulting range of potential assumptions, in our professional
judgement the selected investment return assumption is reasonable and is not expected to have
any significant bias.
COLA
None.
Wage Increase
3.25%
This assumption is based on capital market assumption sources and published studies used to
develop the Plan’s investment earnings assumption.
Earnings Progression
Annual salary increases are based on a table graded by age, as displayed below:
Age
Percentage Increase at Age
Inflation Productivity Merit Total
40 2.25% 1.00% 1.00% 4.25%
45 2.25 1.00 0.80 4.05
50 2.25 1.00 0.70 3.95
55 2.25 1.00 0.50 3.75
60 2.25 1.00 0.20 3.45
65+ 2.25 1.00 0.10 3.35
The inflation and productivity assumptions are based on capital market assumption sources and
published studies used to develop the Plan’s investment earnings assumption, as discussed
above. The merit component is based on GERP experience. The Plan’s experience was reviewed
as of the most recent measurement date. The assumption remains reasonable.
Retirement
The following table sets forth the probability of retirement according to age.
Age
Probability of
Retirement
55-60 5%
61-64 10
65 65
66-68 40
69 & Over 100
Deferred Vested participants were assumed to retire at age 65.
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The Plan’s experience was reviewed as of the most recent measurement date. The assumption
remains reasonable.
Disablement
Graduated rates are used. See table below for sample rates.
Withdrawal Rates
Graduated rates are used. Sample rates are as follows:
Age at
Termination
Withdrawal
Disability Male Female
35 8.58% 9.53% 0.19%
45 3.88 5.23 0.44
55 2.00 3.29 1.19
60 1.50 2.15 1.80
The Plan’s experience was reviewed as of the most recent measurement date. The assumption
remains reasonable.
Mortality
Healthy Lives – Pub-2010 Healthy Employee and Retiree Mortality Tables for General Employees
projected generationally using Scale MP-2020
Disabled Lives – Pub-2010 Disabled Retiree Mortality Table for Non-Safety Employees projected
generationally using Scale MP-2020
This assumption includes a margin for future mortality improvement relative to recent plan
experience.
The size of the GERP population is not large enough to have a statistically credible independent
study of retiree mortality serve as the sole basis for assumption setting. As such, we rely on a
standard published table that is appropriate to the Plan’s employee and retiree population while
also taking into account statistically significant trends in the United States regarding
improvements in life expectancy. The Plan’s mortality experience was reviewed as of the most
recent measurement date. The assumption remains reasonable.
Expenses
The average of the prior three year's expenses:
Year Expenses
2022 $ 25,123
2021 26,078
2020 23,539
Average $ 24,913
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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.
Marriage Rates
85% of all active and terminated participants not currently receiving benefits are assumed to be
married. Male spouses are assumed to be three years older than their female spouses.
Future Credited Service
The Future Credited Service rate is equal to the member’s Full Time Equivalent (FTE) rate as of
December 31 preceding the current valuation year.
Form of Payment
15% of participants retiring from active service are assumed to elect a lump sum.
30% of participants retiring from deferred vested status are assumed to elect a lump sum.
The Plan’s experience was reviewed as of the most recent measurement date. The assumption
remains reasonable.
Changes in Actuarial Assumptions and Methods as of January 1, 2023
There were no changes in the assumptions or methods since the January 1, 2022 valuation.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 18
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
APPENDIX B
PLAN SUMMARY
All actuarial calculations are based upon our understanding of the provisions of City of Fort Collins
General Employees’ Retirement Plan, as adopted and in effect on January 1, 2023. This summary
does not attempt to cover all of the detailed provisions.
Plan Year
The Plan Year is the 12-month period beginning January 1 and ending December 31.
Effective Date
The original effective date of the Plan is January 1, 1971. The Plan was most recently amended and
restated effective January 1, 2016.
Eligible Employee Classification
All persons employed to fill a classified position defined by the city, excluding police officers and
firefighters, shall become a member of the Plan on the later of the Effective Date of the Plan or Date
of Hire.
The Plan was frozen to new entrants as of January 1, 1999.
Accrued Benefit
The Accrued Benefit for each Member is the Member's Normal Retirement Benefit calculated using
Average Monthly Compensation and Credited Service as of the calculation date. In no event will a
Member’s Accrued Benefit be less than the Accrued Benefit earned as of June 30, 2003.
Average Monthly Compensation
A Member’s Average Monthly Compensation, as of a given date, is the average of the highest 60
consecutive months of considered compensation during the last 120 months of Credited Service. In
the event that a participant was employed on a part time basis during any portion of this period, the
compensation will be converted to a full time equivalent for purposes of calculating the Average
Monthly Compensation.
Compensation
Compensation is the gross compensation included as taxable income on Form W-2, excluding
bonuses, compensatory time recorded as additional hours, overtime pay, workers' compensation
accrued vacation pay, taxable fringe benefits, but including any amounts contributed by the City
to a salary reduction agreement including Code Sections 125, 132(f)(4), 402(a)(8), 403(b), 402(a),
and 457.
Credited Service
A Year of Service is credited for each plan year a member works 2,080 hours. If the member
works less than 2,080 hours, a partial Year of Service will be credited on a prorate basis based
on the number of hours for which compensation is paid. Service is credited while a member is on
long-term disability as long as no benefits are being paid from the Plan.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 19
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
Vested Accrued Benefit
A Participant's Vested Accrued Benefit as of a given date is equal to the product of his Accrued
Benefit multiplied by his Vested Percentage as of that same date.
Vesting Schedule
Members become vested in their Accrued Benefit according to the following schedule:
Years of
Credited Service
Percent
Vested
Less than 2 0%
2 40%
3 60%
4 80%
5 and over 100%
Normal Retirement Date
A Participant’s Normal Retirement Age is the first of the month coincident with or next following the
attainment of age 65.
Normal Retirement Benefits
Each Member who becomes eligible for a Normal Retirement Benefit under the Plan will be entitled
to receive a monthly retirement pension benefit beginning at the Member's Normal Retirement Date
and payable in the Normal Benefit Form equal to:
1.5% of Average Monthly Compensation, multiplied by Credited Service.
Normal Benefit Form
Life Annuity - Monthly pension benefit payable for the lifetime of the Member.
Early Retirement
(a) Early Retirement Date
A Member's Early Retirement Date is the first day of the month so elected by the Member
which coincides with or next follows the date upon which the Member attains age 55 and
completes 2 Years of Service.
(b) Early Retirement Benefit
A Member's Early Retirement Benefit is a monthly pension benefit equal to his Accrued
Benefit determined as of his Early Retirement Date, reduced by 1/15th for the first 5 years
and 1/30th for each of the next 5 years payments commence prior to age 65.
Optional Benefit Forms
Optional Benefit Forms are available and equal to the Actuarial Equivalent of the Normal Benefit
Form and may be in an amount more than or less than that provided by the Normal Benefit Form
depending on the option selected. Such distribution may be as a Joint & 50% or 100% Survivor
Annuity, a Life Annuity with 120 payments guaranteed, or a Lump Sum.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 20
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
Pre-Retirement Death Benefit
If a Member dies prior to commencing pension payments, the Member’s beneficiary will receive a
single sum benefit in an amount equal to 47% of the actuarial equivalent value of the Member’s
Accrued Benefit. If the beneficiary is the Member's spouse, the spouse may elect a monthly benefit
which is the actuarial equivalent of the single sum benefit. (The 47% factor is stated in the Plan
Document Article XI, Section 11. It was developed assuming that the participant quit the day prior to
death and elected a 50% joint and survivor benefit.)
Termination Benefit
In the event of the termination of a Member's employment for any reason other than death, disability
or retirement after completing 2 Years of Service, the Member will become entitled to receive a
monthly pension benefit commencing on his Normal Retirement Date equal to his Vested Accrued
Benefit.
If the deferred benefit to which the Member is to be paid at his Normal Retirement Date has an
actuarial equivalent value less than $5,000, the entire benefit will be paid to the terminated participant
as a single lump sum.
Disability Benefit
(a) Total Disability
The monthly benefit, payable for life commencing at normal retirement date, is equal to the
normal retirement benefit considering annual rate of compensation at disability and credited
service he would have accumulated if employment had continued uninterrupted to his normal
retirement date.
(b) Permanent Partial Disability
A member may accrue Credited Service under the Plan for any period of time up to a maximum
accrual of two (2) years.
Instead of the disability benefit described above, the disabled participant may elect to take a
lump-sum distribution at any time.
City Contributions
The entire cost of the Plan is to be paid by the City.
Plan Changes
None
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 21
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
APPENDIX C
PARTICIPANT DATA
The actuarial valuation of the Plan is based on the participant data provided to us by the City. The
data includes active participants, terminated vested participants who retain benefits under the Plan,
and retirees and beneficiaries receiving benefits as of January 1, 2023. A total of 339 participants
were reported to us and included in this valuation. Table 1 includes a reconciliation of the participant
data from January 1, 2022 to January 1, 2023.
The age and service characteristics of the 26 active participants in the Plan as of January 1, 2023
are shown in Table C-2. As indicated in Table C-2, the average age of the active participants on the
valuation date was 59.8, up from the average age of 59.3 of the active participants on January 1,
2022. The average years of service of the active participants on January 1, 2023 was 30.5, up from
the 29.7 average years of service of the active participants on January 1, 2022.
In addition to the active members, there were 42 inactive participants not yet in pay status retaining
benefits under the Plan. Table C-3 contains a summary of the number of inactive participants not yet
in pay status but retaining benefits under the Plan, and the amounts of those benefits.
Tables C-4 and C-5 summarize the information provided on the 271 members and beneficiaries who
are currently receiving monthly benefits. Table C-4 contains a summary of the number of participants
receiving benefits and the amounts of those benefits, while Table C-5 lists the benefits being paid as
of January 1 of each year from 1990 to 2022. Counts and total annual benefit amounts are separated
by status and sex.
Table C-6 displays the list of the retirement dates and status of participants eligible for normal or
delayed retirement in the next five years.
Because participation in the Plan was frozen as of January 1, 1999, the number of participants in the
Plan has declined over the years, as illustrated below:
0
200
400
600
800
1,000
1,200
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Summary of Plan Participants
Active Employees Retirees Vested Inactives
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 22
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
TABLE C-1
RECONCILIATION OF PARTICIPANT DATA
(JANUARY 1, 2022 TO JANUARY 1, 2023)
Actives
Terminated
Vested
Retired
Beneficiary
Total
Included in January 1, 2022
Valuation:
28
51
245
28
352
Change due to:
New entrants N/A N/A N/A N/A N/A
Rehired 0 0 0 N/A 0
Termination
Nonvested 0 N/A N/A N/A 0
Vested 0 0 N/A N/A 0
Retirement (1) (8) 9 0 0
Disabled 0 0 0 0 0
Death no Beneficiary 0 0 (8) (3) (11)
Death with Beneficiary 0 0 (4) 4 0
Cash out (1) (1) 0 0 (2)
Benefits Expired 0 0 0 0 0
Other 0 0 0 0 0
Net change (2) (9) (3) 1 (13)
Included in January 1, 2023
Valuation:
26
42
242
29
339
DRAFTMilliman Actuarial Valuation January 1, 2023 Actuarial Valuation 23 City of Fort Collins General Employees’ Retirement Plan This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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. TABLE C-2 SUMMARY OF ACTIVE PARTICIPANTS AS OF JANUARY 1, 2023 Years of Service 1 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 & Up Total Age Number of Participants Under 25 0 0 0 0 0 0 0 0 25 to 29 0 0 0 0 0 0 0 0 30 to 34 0 0 0 0 0 0 0 0 35 to 39 0 0 0 0 0 0 0 0 40 to 44 0 0 0 0 0 0 0 0 45 to 49 0 0 0 0 0 1 0 1 50 to 54 0 0 0 0 1 3 0 4 55 to 59 0 0 1 1 2 1 1 6 60 to 64 0 0 0 0 0 2 10 12 65 & Up 0 0 0 0 0 1 2 3 Total 0 0 1 1 3 8 13 26 Salary Under 25 - - - - - - - - 25 to 29 - - - - - - - - 30 to 34 - - - - - - - - 35 to 39 - - - - - - - - 40 to 44 - - - - - - - - 45 to 49 - - - - - 81,004 - 81,004 50 to 54 - - - - 75,636 215,935 - 291,571 55 to 59 - - 59,269 59,414 135,243 62,856 68,759 385,541 60 to 64 - - - - - 143,516 801,254 944,770 65 & Up - - - - - 80,449 146,817 227,266 Total - - 59,269 59,414 210,879 583,760 1,016,830 1,930,152
DRAFTMilliman Actuarial Valuation January 1, 2023 Actuarial Valuation 24 City of Fort Collins General Employees’ Retirement Plan This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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. TABLE C-2 (CONTINUED) SUMMARY OF ACTIVE PARTICIPANTS AS OF JANUARY 1, 2023 Years of Service 1 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 & Up Total Age Average Compensation Under 25 0 0 0 0 0 0 0 0 25 to 29 0 0 0 0 0 0 0 0 30 to 34 0 0 0 0 0 0 0 0 35 to 39 0 0 0 0 0 0 0 0 40 to 44 0 0 0 0 0 0 0 0 45 to 49 0 0 0 0 0 81,004 0 81,004 50 to 54 0 0 0 0 75,636 71,978 0 72,893 55 to 59 0 0 59,269 59,414 67,622 62,856 68,759 64,257 60 to 64 0 0 0 0 0 71,758 80,125 78,731 65 & Up 0 0 0 0 0 80,449 73,409 75,755 Total 0 0 59,269 59,414 70,293 72,970 78,218 74,237 HISTORICAL SUMMARY 2017 2018 2019 2020 2021 2022 2023 Not Vested: 0 0 0 0 0 0 0 Partially Vested: 0 0 0 0 0 0 0 Fully Vested: 78 70 57 42 34 28 26 Total: 78 70 57 42 34 28 26 Total Compensation: $5,255,224 $4,738,991 $3,923,740 $2,884,624 $2,363,492 $1,969,281 $1,930,152 Average Rate of Pay: $67,375 $67,700 $68,838 $68,682 $69,514 $70,331 $74,237 Average Service: 26.5 27.2 28.2 29.3 30.1 29.7 30.5 Average Age: 59.3 59.7 59.1 58.8 59.3 59.3 59.8
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 25
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
TABLE C-3
SUMMARY OF DEFERRED VESTED AND DEFERRED DISABLED PARTICIPANTS
AS OF JANUARY 1, 2023
Age
Number
Total
Annual
Benefit
Average
Monthly
Benefit
30-34 0 $ 0 $ 0
35-39 0 0 0
40-44 0 0 0
45-49 1 8,326 694
50-54 3 42,963 1,193
55-59 6 62,420 867
60-64 26 248,179 795
65 & Up 6 57,890 804
Total 42 $ 419,778 $ 833
HISTORICAL SUMMARY
2017 2018 2019 2020 2021 2022 2023
Deferred Vested
Number: 93 88 77 69 63 50 41
Total Annual
Benefit:
$927,624
$904,296
$785,724
$712,233
$626,691
$490,078
$406,515
Average Monthly
Benefit:
$831
$856
$850
$860
$829
$817
$826
Average Age: 59.3 59.9 60.4 61.0 61.2 61.4 61.6
Deferred Disabled
Number: 1 1 1 1 1 1 1
Total Annual
Benefit:
$13,263
$13,263
$13,263
$13,263
$13,263
$13,263
$13,263
Average Monthly
Benefit:
$1,105
$1,105
$1,105
$1,105
$1,105
$1,105
$1,105
Average Age: 60.0 61.0 62.0 63.0 64.0 65.0 66.0
DRAFTMilliman Actuarial Valuation January 1, 2023 Actuarial Valuation 26 City of Fort Collins General Employees’ Retirement Plan This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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. TABLE C-4 SUMMARY OF HEALTHY RETIREES, DISABLED RETIREES, AND BENEFICIARIES AS OF JANUARY 1, 2023 Healthy Retirees Disabled Retirees Beneficiaries Total Age Number Annual Benefit Average Monthly Benefit Number Annual Benefit Average Monthly Benefit Number Annual Benefit Average Monthly Benefit Number Annual Benefit Average Monthly Benefit 55-59 1 16,705 1,392 0 0 0 0 0 0 1 16,705 1,392 60-64 5 72,923 1,215 0 0 0 0 0 0 5 72,923 1,215 65-69 64 1,200,299 1,563 0 0 0 4 58,653 1,222 68 1,258,952 1,543 70-74 76 1,568,867 1,720 0 0 0 5 111,882 1,865 81 1,680,749 1,729 75-79 52 804,317 1,289 0 0 0 3 20,928 581 55 825,245 1,250 80-84 23 299,985 1,087 0 0 0 5 38,674 645 28 338,659 1,008 Above 85 21 231,102 917 0 0 0 12 93,462 649 33 324,564 820 Total 242 $4,194,198 $1,444 0 $0 $0 29 $323,599 $930 271 $4,517,797 $1,389 HISTORICAL SUMMARY 2017 2018 2019 2020 2021 2022 2023 Healthy Retirees Number: 208 211 228 242 239 242 242 Total Annual Benefit: $3,074,702 $3,206,708 $3,552,837 $3,857,570 $3,965,030 $4,156,431 $4,194,198 Average Monthly Benefit: $1,232 $1,266 $1,299 $1,328 $1,383 $1,431 $1,444 Average Age: 72.6 73.1 73.3 73.6 73.9 73.9 74.3 Disabled Retirees Number: 5 5 5 5 5 3 0 Total Annual Benefit: $87,228 $87,228 $87,228 $87,228 $87,228 $53,543 $0 Average Monthly Benefit: $1,454 $1,454 $1,454 $1,454 $1,454 $1,487 N/A Average Age: 75.6 76.6 77.6 78.6 79.6 82.4 N/A Beneficiaries Number: 25 26 24 24 26 28 29 Total Annual Benefit: $177,130 $229,817 $211,491 $226,833 $246,168 $290,887 $323,599 Average Monthly Benefit: $590 $737 $734 $788 $789 $866 $930 Average Age: 81.7 81.9 81.2 81.8 82.9 82.3 82.0
DRAFTMilliman Actuarial Valuation January 1, 2023 Actuarial Valuation 27 City of Fort Collins General Employees’ Retirement Plan This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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. TABLE C-5 NUMBER OF PENSIONERS AND AMOUNT OF ANNUAL ANNUITY AS OF THE END OF EACH YEAR Year Retirement* Beneficiaries* Disability** All Male Female Male Female Male Female No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount 1990 65 370,147 19 38,437 2 3,561 3 12,370 2 2,041 0 0 91 426,556 1991 64 370,359 17 42,832 3 4,736 3 14,349 2 2,041 0 0 89 434,317 1992 65 375,014 18 51,214 3 4,736 4 15,640 2 2,041 1 5,692 93 454,337 1993 67 393,340 22 79,136 3 4,736 7 35,056 3 18,485 1 5,692 103 536,445 1994 60 394,223 17 75,333 1 3,099 8 39,381 3 21,369 2 10,884 91 544,287 1995 55 359,659 17 77,358 1 3,099 11 55,120 4 25,825 2 10,884 90 531,945 1996 66 466,177 18 84,593 1 3,099 10 50,512 4 25,825 2 10,884 101 641,090 1997 68 477,993 21 104,091 1 3,099 10 50,512 5 35,717 2 10,884 107 682,296 1998 70 547,160 23 121,654 1 3,099 11 53,600 6 40,722 2 10,884 113 777,119 1999 74 593,649 23 133,013 1 3,099 12 61,432 5 32,577 2 10,884 117 834,654 2000 74 650,175 22 136,795 1 3,572 13 71,763 5 34,506 2 11,825 117 908,636 2001 74 656,815 23 143,199 1 3,572 13 71,763 6 45,764 2 11,825 119 932,938 2002 73 691,385 29 194,447 1 3,572 12 68,051 6 45,764 2 11,825 123 1,015,044 2003 75 750,807 31 214,130 2 9,855 12 70,742 6 45,764 1 5,543 127 1,096,841 2004 77 807,941 33 215,275 2 9,855 13 80,089 6 45,764 1 5,543 132 1,164,467 2005 78 809,581 33 215,275 2 9,855 14 87,665 6 45,764 1 5,543 134 1,173,683 2006 83 889,557 36 241,760 2 9,855 14 87,665 7 63,995 1 5,543 143 1,298,375 2007 90 1,080,910 43 310,359 2 9,855 16 97,728 7 63,994 1 5,543 159 1,568,389 2008 90 1,050,492 47 338,564 2 9,855 17 114,736 7 63,995 0 0 163 1,577,642 2009 92 1,160,329 49 384,191 2 9,855 20 128,436 8 88,050 0 0 171 1,770,861 2010 90 1,151,934 51 399,867 3 18,484 20 129,032 6 76,483 0 0 170 1,775,800 2011 90 1,141,103 53 412,155 3 18,484 19 121,869 6 76,483 0 0 171 1,770,094 2012 101 1,382,769 56 453,813 3 18,484 20 142,142 5 61,091 0 0 185 2,058,299 2013 103 1,512,466 60 544,641 2 12,201 19 139,753 6 91,047 0 0 190 2,300,108 2014 115 1,764,025 64 599,944 1 3,572 20 153,620 5 87,228 0 0 205 2,608,389 2015 122 2,024,794 71 709,937 1 3,572 23 168,456 5 87,228 0 0 222 2,993,987 2016 128 2,178,732 80 895,970 1 3,572 24 173,558 5 87,228 0 0 238 3,339,060 2017 131 2,277,008 80 929,700 1 3,572 25 226,245 5 87,228 0 0 242 3,523,753 2018 142 2,529,072 86 1,023,765 1 3,572 23 207,919 5 87,228 0 0 257 3,851,556 2019 153 2,776,424 89 1,081,146 1 3,572 23 223,261 5 87,228 0 0 271 4,171,631 2020 150 2,845,202 89 1,119,828 2 11,053 24 235,115 5 87,228 0 0 270 4,298,426 2021 153 2,982,319 89 1,174,112 2 11,053 26 279,834 3 53,543 0 0 273 4,500,861 2022 150 2,979,029 92 1,215,169 1 3,572 28 320,027 0 0 0 0 271 4,517,797 * Male and female splits are not available prior to 1990. ** Retirement and disability splits are not available prior to 1990.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 28
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee for the purposes described herein and may not be
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TABLE C-6
SCHEDULE OF MEMBERS ELIGIBLE FOR NORMAL OR
DELAYED RETIREMENT IN THE NEXT FIVE YEARS
Normal Retirement Date Current Status
2/1/2019
4/1/2019
6/1/2021
7/1/2021
8/1/2021
12/1/2021
2/1/2022
1/1/2023
1/1/2023
3/1/2023
3/1/2023
4/1/2023
4/1/2023
5/1/2023
6/1/2023
8/1/2023
8/1/2023
9/1/2023
12/1/2023
5/1/2024
6/1/2024
7/1/2024
8/1/2024
8/1/2024
9/1/2024
9/1/2024
10/1/2024
10/1/2024
12/1/2024
12/1/2024
6/1/2025
8/1/2025
8/1/2025
10/1/2025
12/1/2025
3/1/2026
8/1/2026
8/1/2026
9/1/2026
1/1/2027
1/1/2027
1/1/2027
2/1/2027
Deferred Vested
Active
Active
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested (Disabled)
Active
Deferred Vested
Deferred Vested
Deferred Vested
Active
Active
Deferred Vested
Active
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested
Active
Deferred Vested
Deferred Vested
Deferred Vested
Active
Deferred Vested
Deferred Vested
Deferred Vested
Active
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested
Deferred Vested
Active
Deferred Vested
Active
Active
Deferred Vested
Active
Deferred Vested
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 29
City of Fort Collins General Employees’ Retirement Plan
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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.
Normal Retirement Date Current Status
4/1/2027
7/1/2027
9/1/2027
Deferred Vested
Active
Active
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 30
City of Fort Collins General Employees’ Retirement Plan
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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.
APPENDIX D
RISK ASSESSMENT AND DISCLOSURE
The purpose of this appendix is to identify, assess, and provide illustrations of risks that are
significant to the Plan. Historical data is included.
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.
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.
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:
Identify risks that may be significant to the plan.
Assess the risks identified as significant to the plan. The assessment does not need to include
numerical calculations.
Disclose plan maturity measures and historical information that are significant to
understanding the plan’s risks.
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.
A summary of maturity statistics and historical information is below.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 31
City of Fort Collins General Employees’ Retirement Plan
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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.
2023 2022 2021 2020 2019
Assets and Payroll
Market Value of Assets (MVA) $43,308,005 $54,551,272 $51,370,772 $48,058,021 $43,059,069
Covered Payroll $1,930,152 $1,969,281 $2,363,492 $2,884,624 $3,923,740
Ratio, MVA to Covered Payroll 22.4 27.7 21.7 16.7 11.0
Actuarial Liability
For Retirees and Beneficiaries $46,497,190 $46,916,451 $44,744,270 $43,313,186 $40,250,755
For Deferred Vested Participants 3,916,688 4,680,454 5,799,223 6,632,242 7,057,296
For Active Participants 8,063,513 8,050,822 9,941,423 11,354,819 14,980,872
Total $58,477,391 $59,647,727 $60,484,916 $61,300,247 $62,288,923
In Pay Liability as a % of Total 79.5% 78.7% 74.0% 70.7% 64.6%
Duration (years) 8.9 9.1 9.3 9.5 9.8
Cash Flow Measures
Prior Year MVA $54,551,272 $51,370,772 $48,058,021 $43,059,069 $48,807,729
Benefit Payments 4,910,385 4,544,725 5,111,889 5,215,830 4,847,491
Contributions 1,341,392 1,361,952 1,415,437 1,472,169 1,576,991
Benefit Payments as a % of
Contributions
366.1%
333.7%
361.2%
354.3%
307.4%
Benefit Payments as a % of Prior MVA 9.0% 8.8% 10.6% 12.1% 9.9%
Net Cash Flow as a % of Prior MVA -6.5% -6.2% -7.7% -8.7% -6.7%
Liquidity Risk
Identification: This is the potential that assets must be liquidated at a loss earlier than
planned in order to pay for the plan’s benefits and operating costs. This risk is heightened for
plans with negative cash flow, in which contributions do not exceed annual benefit payments
plus expenses.
Assessment: This Plan has high cash flow requirements because benefit payments are
approximately 366% of Plan contributions. Due to the closed participant group, percent of
payroll based contributions and therefore total contributions are projected to decrease and
benefit payments are projected to increase. As a result, there is liquidity risk that assets may
need to be liquidated at a loss before planned in order to pay benefits.
Maturity Risk
Identification: This is the potential for total plan liabilities to become more heavily weighted
toward inactive liabilities over time.
Assessment: The Plan covers a closed group of employees, so the number of inactive
participant is expected to grow as the active population decreases. Currently over 86% of
plan’s liability is for inactive participants. Current assets are equal to 32 times last year’s
contributions, indicating a one-year asset loss of 10% would be equal to 3.2 times last year’s
contributions. Thinking of it another way, current assets are equal to 22.4 times covered
payroll, indicating a one-year asset loss of 10% would be equal to 224% of payroll. Last year’s
net cash flow was equal to -6.5% of the beginning of year assets, which means asset needed
to return 6.5% last year to remain level.
DRAFTMilliman Actuarial Valuation
January 1, 2023 Actuarial Valuation 32
City of Fort Collins General Employees’ Retirement Plan
This work product was prepared solely for the City of Fort Collins General Employees Retirement Committee 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.
Retirement Risk
Identification: This is the potential for participants to retire and receive subsidized benefits
more valuable than expected.
Assessment: The plan has valuable early retirement subsidies. In addition, retiring
participants have the option to take an annuity or a lump sum form of payment. Currently, the
lump sum amount is calculated using a mortality table that expects lower longevity than the
valuation mortality assumption which results in a lower lump sum amount than would be
calculated using the valuation’s mortality assumption. This means that if less participants elect
a lump sum than expected under the valuation assumptions, the plan incurs a loss.
Investment Risk
Identification: The potential that investment returns will be different than expected.
Assessment: 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. In addition, as discussed under the liquidity and
maturity risk assessments above, this risk will be exacerbated as the Plan matures and
possibly needs to liquidate assets in a down market to pay benefits to participants, losing the
recovery on those assets when the market goes back up.
Additional Assessment: This is one of the most substantial risks the plan faces. You may
wish to explore asset/liability modeling or other plan forecasts to see what impact investment
volatility has on the Plan’s funded status.
Interest Rate Risk
Identification: The potential that interest rates will be different than expected.
Assessment: The pension liabilities reported herein have been calculated by computing the
present value of expected future benefit payments using the interest rate described in
Appendix A. If interest rates in future valuations are different from that 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.
If the interest rate changes by 1%, the estimated percentage change in pension liability is the
Plan’s duration in years. The approximate duration of this Plan is 8.9 years. As such, if the
interest rate changes by 1%, the estimated change in pension liability is 8.9%.
Demographic Risk
Identification: The potential that mortality or other demographic experience will be different
than expected.
Assessment: 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 Appendix A. 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.
DRAFT Milliman Financial Reporting Valuation
CITY OF FORT COLLINS
GENERAL EMPLOYEES' RETIREMENT PLAN
GASB 67 and 68 DISCLOSURE
Fiscal Year: January 1, 2022 to December 31, 2022
Prepared by
Joel E. Stewart, FSA, EA, MAAA
Principal and Consulting Actuary
Brian C. Nichols, EA, MAAA
Associate Actuary
Milliman, Inc.
1400 Wewatta Street, Suite 900
Denver, CO 80202-5549
Tel +1 303 299 9400
Fax +1 303 299 9018
milliman.com
March 3, 2023
DRAFTMilliman Financial Reporting Valuation
Certification 1
Overview of GASB 67 and GASB 68 3
Summary of Key Dates and Significant Changes 4
Statement of Fiduciary Net Position 5
Statement of Changes in Fiduciary Net Position 6
Money-Weighted Rate of Return 7
Long-Term Expected Rate of Return 8
Depletion Date Projection 9
Projection of Contributions 10
Projection of Fiduciary Net Position 11
Actuarial Present Value of Projected Benefit Payments 12
Net Pension Liability 13
Changes in Net Pension Liability 14
Schedule of Changes in Net Pension Liability and Related Ratios 15
Pension Expense 16
Schedule of Deferred Inflows and Outflows of Resources 17
Summary Chart 18
Glossary 19
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022
City of Fort Collins General Employees' Retirement Plan
Table of Contents
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Certification
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 1
City of Fort Collins General Employees' Retirement Plan
Actuarial computations presented in this report under Statements No. 67 and 68 of the Governmental
Accounting Standards Board are for purposes of assisting the City of Fort Collins in fulfilling its financial
accounting requirements. No attempt is being made to offer any accounting opinion or advice. This report is
for fiscal year January 1, 2022 to December 31, 2022. The measurement date for determining plan assets
and obligations is December 31, 2022. The calculations enclosed in this report have been made on a basis
consistent with our understanding of the plan provisions. Determinations for purposes other than meeting
financial reporting requirements may be significantly different than the results contained in this report.
Accordingly, additional determinations may be needed for other purposes, such as judging benefit security or
meeting employer funding requirements.
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.
This work product was prepared solely for the City of Fort Collins 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.
In preparing this report, we relied, without audit, on information as of January 1, 2023 and December 31,
2022 furnished by the City of Fort Collins. This information includes, but is not limited to, statutory provisions,
member census data, and financial information. The membership as of January 1, 2023 includes 26 active
participants, 42 terminated vested and other inactive participants, and 271 retirees and beneficiaries. Please
see Milliman's draft funding valuation report dated March 3, 2023 for more information on the plan's
participant group as of January 1, 2023 as well as a summary of the plan provisions and a summary of the
actuarial methods and assumptions used for funding purposes.
We performed a limited review of the census and financial information used directly in our analysis and have
found them 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.
Each of the assumptions used in this valuation with the exception of those set by the retirement committee
was set based on industry standard published tables and data, the particular characteristics of the plan,
relevant information from the plan sponsor or other sources about future expectations, and our professional
judgment regarding future plan experience. We believe the assumptions are reasonable for the
contingencies they are measuring, and are not anticipated to produce significant cumulative actuarial gains
or losses over the measurement period.
The valuation results were developed using models intended for valuations that use standard actuarial
techniques. The intent of the models is to estimate future plan costs. We have reviewed the models,
including their inputs, calculations, and outputs for consistency, reasonableness, and appropriateness to the
intended purpose and in the compliance with generally accepted actuarial practice and relevant actuarial
standards of practice.
DRAFTMilliman Financial Reporting Valuation
Certification
_______________________________________
Joel E. Stewart, FSA, EA, MAAA Brian C. Nichols, EA, MAAA
Principal and Consulting Actuary Associate Actuary
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 2
City of Fort Collins General Employees' Retirement Plan
Future actuarial measurements may differ significantly from the current measurements presented in this
report due to factors such as, but not limited to, 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 the actuarial assignment, we did not perform an analysis of the potential range of such future
measurements. The Retirement Committee has the final decision regarding the appropriateness of the
assumptions and actuarial cost methods, and the Board has adopted them as indicated in the draft actuarial
valuation report dated March 3, 2023.
Milliman’s work is prepared solely for the internal use and benefit of the City of Fort Collins. 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: (a) the Plan Sponsor may provide a copy of Milliman’s work, in its entirety, to the Plan Sponsor'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 Fund; and (b) the Plan Sponsor may provide a copy of
Milliman's work, in its entirety, to other governmental entities, as required by law.
This work product was prepared solely for the City of Fort Collins 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.
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 specific needs.
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.
The signing actuaries are independent of the plan sponsor. We are not aware of any relationship that would
impair the objectivity of our work.
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 which are consistent with the principles prescribed by the Actuarial
Standards Board and the Code of Professional Conduct and Qualification Standards for Actuaries Issuing
Statements of Actuarial Opinion in the United States published by the American Academy of Actuaries. We
are members of the American Academy of Actuaries and meet the Qualification Standards to render the
actuarial opinion contained herein.
DRAFTMilliman Financial Reporting Valuation
Overview of GASB 67 and GASB 68
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 3
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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 Governmental Accounting Standards Board (GASB) released new accounting standards for public
pension plans and participating employers in 2012. These standards, GASB Statements No. 67 and 68,
have substantially revised the accounting requirements previously mandated under GASB Statements No.
25 and 27. The most notable change is the distinct separation of funding from financial reporting. The
Annual Required Contribution (ARC) has been eliminated under GASB 67 and 68 and is no longer relevant
for financial reporting purposes. As a result, plan sponsors have been encouraged to establish a formal
funding policy that is separate from financial reporting calculations.
GASB 68 governs the specifics of accounting for public pension plan obligations for participating employers
and is required to be implemented for employer fiscal years beginning after June 15, 2014. GASB 68
requires a liability for pension obligations, known as the Net Pension Liability, to be recognized on the
balance sheets of participating employers. Changes in the Net Pension Liability will be immediately
recognized as Pension Expense on the income statement or reported as deferred inflows/outflows of
resources depending on the nature of the change.
GASB 67 applies to financial reporting for public pension plans and is required to be implemented for plan
fiscal years beginning after June 15, 2013. Note that a plan's fiscal year might not be the same as the
employer's fiscal year. Even if the plan does not issue standalone financial statements, but rather is
considered a pension trust fund of a government, it is subject to GASB 67. Under GASB 67, enhancements
to the financial statement disclosures are required, along with certain required supplementary information.
DRAFTMilliman Financial Reporting Valuation
Summary of Key Dates and Significant Changes
Relationship Between Valuation Date, Measurement Date, and Reporting Date
Significant Changes
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 4
City of Fort Collins General Employees' Retirement Plan
The Total Pension Liability was determined by an actuarial valuation as of the Measurement Date; therefore,
no significant changes exist between the Valuation Date and the Measurement Date.
The Valuation Date is January 1, 2023. This is the date as of which the actuarial valuation is performed. The
Measurement Date is December 31, 2022. This is the date as of which the net pension liability is
determined. The Reporting Date for GASB 68 is December 31, 2022. This is the employer's fiscal year
ending date.
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Statement of Fiduciary Net Position
December 31, 2021 December 31, 2022
Assets
Cash and cash equivalents $4,488,332 $952,561
Receivables and prepaid expenses:
Receivable contributions 0 0
Receivable investment income 46,290 44,176
Receivables from brokers for unsettled trades 0 0
Prepaid expenses 0 0
Total receivables 46,290 44,176
Investments:
Certificate of deposit 0 0
US Government securities 9,934,322 9,073,744
Corporate bonds 2,189,589 2,256,799
Mutual funds 37,892,739 30,980,725
Total investments 50,016,650 42,311,268
Invested securities lending cash collateral 0 0
Capital assets net of accumulated depreciation 0 0
Total assets 54,551,272 43,308,005
Liabilities
Accrued expenses and benefits payable 0 0
Securities lending cash collateral 0 0
Payable to brokers for unsettled trades 0 0
Total liabilities 0 0
Net position restricted for pensions $54,551,272 $43,308,005
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 5
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Statement of Changes in Fiduciary Net Position
December 31, 2022
Beginning of Year Audit Adjustment to Prior Year-end Value ($1,987)
Additions
Member contributions $0
Employer contributions 1,341,392
Total contributions 1,341,392
Investment income (loss):
Interest 178,784
Dividends 0
Net appreciation (7,825,948)
Real estate income 0
Less investment expenses:
Direct investment expense 0
Securities lending management fees 0
Securities lending borrower rebates 0
Net investment income (7,647,164)
Other income 0
Total additions (6,305,772)
Deductions
Retirement benefits 4,910,385
Administrative expenses 25,123
Total deductions 4,935,508
Net increase (decrease)(11,243,267)
Net position restricted for pensions
Beginning of year (December 31, 2021)54,551,272
End of year (December 31, 2022)$43,308,005
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 6
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Money-Weighted Rate of Return
Fiscal Year Net
Ending Money-Weighted
December 31 Rate of Return
2013 N/A
2014 6.00%
2015 -0.62%
2016 5.92%
2017 16.48%
2018 -5.12%
2019 20.95%
2020 15.04%
2021 12.73%
2022 -14.35%
Calculation of Money-Weighted Rate of Return*
Net External
Net External Periods Period Cash Flows
Cash Flows Invested Weight With Interest
Beginning Value - January 1, 2022 $54,551,272 12.00 1.00 $46,723,300
Monthly net external cash flows:
January 766,269 11.50 0.96 660,390
February (413,414) 10.50 0.88 (360,734)
March (364,090) 9.50 0.79 (322,155)
April (364,906) 8.50 0.71 (326,903)
May (365,623) 7.50 0.63 (331,629)
June (363,402) 6.50 0.54 (334,242)
July (362,702) 5.50 0.46 (337,757)
August (368,801) 4.50 0.38 (347,720)
September (364,716) 3.50 0.29 (348,695)
October (363,965) 2.50 0.21 (352,316)
November (645,199) 1.50 0.13 (632,337)
December (383,566) 0.50 0.04 (381,197)
Ending Value - December 31, 2022 43,308,005
Money-Weighted Rate of Return -14.35%
*Administrative expenses were estimated to occur equally throughout the year.
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 7
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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 money-weighted rate of return considers the changing amounts actually invested during a period and
weights the amount of pension plan investments by the proportion of time they are available to earn a return
during that period. External cash flows are determined on a monthly basis and are assumed to occur at the
middle of each month. External cash inflows are netted with external cash outflows, resulting in a net
external cash flow in each month. The money-weighted rate of return is calculated net of investment
expenses.
DRAFTMilliman Financial Reporting Valuation
Long-Term Expected Rate of Return
Long-Term
Expected
Geometric
Target Real Rate
Asset Class Allocation of Return
Domestic Equity 45.0% 3.7%
International Equity 15.0% 5.7%
Fixed Income 40.0% 2.1%
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 8
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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 best-estimate range for the long-term expected rate of return is determined by adding expected inflation
to expected long-term real returns and reflecting expected volatility and correlation. The capital market
assumptions are per Milliman's investment consulting practice as of December 31, 2022. The Plan's
assumed rate of inflation is 2.25%.
DRAFTMilliman Financial Reporting Valuation
Depletion Date Projection
- The employer contributes 10.5% of compensation, plus a supplemental contribution of $1,120,000 per
year, consistent with the plan's funding policy.
- Benefit payments are projected based on the actuarial assumptions and the current plan provisions.
-
- Terminating and retiring members will not be replaced with new employees.
- Current administrative expenses are assumed to increase by 2.25% per year.
- All cash flows are assumed to occur on average halfway through the year.
- The long-term expected rate of return on pension plan investments is 6.00%.
- The tax-exempt, high-quality general obligation municipal bond index rate is 3.72%.
-
- The actuarial assumptions do not change.
-
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 9
City of Fort Collins General Employees' Retirement Plan
In order to determine if the plan's fiduciary net position is projected to be sufficient to make projected benefit
payments, we have prepared a depletion date projection using the following techniques and assumptions:
Members are assumed to receive pay increases, terminate, retire, become disabled, die, and so forth
according to the actuarial assumptions used for the January 1, 2023 valuation.
Actual results at each point in time will yield different values, reflecting the actual experience of the plan
membership and assets.
This work product was prepared solely for the City of Fort Collins 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 plan provisions do not change.
The funding policy used to determine the employer contribution does not change.
DRAFTMilliman Financial Reporting Valuation
Projection of Contributions
Projected Projected Contributions ER-Payroll
Payroll Payroll Total from Contributions Supplemental
Current Future Employee Current for Current Employer Total
Year Employees Employees Payroll Employees Employees Contribution* Contributions
1 $1,930,152 $0 $1,930,152 $0 $202,666 $1,120,000 $1,322,666
2 1,549,983 0 1,549,983 0 162,748 1,120,000 1,282,748
3 1,369,483 0 1,369,483 0 143,796 1,120,000 1,263,796
4 1,156,267 0 1,156,267 0 121,408 1,120,000 1,241,408
5 1,057,060 0 1,057,060 0 110,991 1,120,000 1,230,991
6 810,007 0 810,007 0 85,051 1,120,000 1,205,051
7 672,717 0 672,717 0 70,635 1,120,000 1,190,635
8 552,028 0 552,028 0 57,963 1,120,000 1,177,963
9 496,740 0 496,740 0 52,158 1,120,000 1,172,158
10 399,235 0 399,235 0 41,920 1,120,000 1,161,920
Note: Years subsequent to year 10 have been omitted from this table.
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 10
City of Fort Collins General Employees' Retirement Plan
* $1,120,000 is the current supplemental contribution per the contribution policy.
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Projection of Fiduciary Net Position
Projected Projected
Beginning Projected Projected Projected Projected Ending
Fiduciary Total Benefit Administrative Investment Fiduciary
Year Net Position Contributions Payments Expenses Earnings Net Position
1 $43,308,005 $1,322,666 $5,065,464 $24,913 $2,485,449 $42,025,743
2 42,025,743 1,282,748 4,925,483 25,474 2,411,498 40,769,032
3 40,769,032 1,263,796 5,202,176 26,047 2,327,209 39,131,814
4 39,131,814 1,241,408 5,016,919 26,633 2,233,845 37,563,515
5 37,563,515 1,230,991 5,057,957 27,232 2,138,185 35,847,502
6 35,847,502 1,205,051 4,932,808 27,845 2,038,182 34,130,082
7 34,130,082 1,190,635 4,864,893 28,472 1,936,723 32,364,075
8 32,364,075 1,177,963 4,664,291 29,113 1,836,381 30,685,015
9 30,685,015 1,172,158 4,686,729 29,768 1,734,771 28,875,447
10 28,875,447 1,161,920 4,504,522 30,438 1,631,336 27,133,743
Note: Years subsequent to year 10 have been omitted from this table.
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 11
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Actuarial Present Value of Projected Benefit Payments
Present Present Present
Projected "Funded" "Unfunded" Value of Value of Value of
Beginning Projected Portion of Portion of "Funded" "Unfunded" Total
Fiduciary Benefit Benefit Benefit Benefit Benefit Benefit
Year Net Position Payments Payments Payments Payments* Payments** Payments***
1 $43,308,005 $5,065,464 $5,065,464 $0 $4,938,575 $0 $4,938,575
2 42,025,743 4,925,483 4,925,483 0 4,530,283 0 4,530,283
3 40,769,032 5,202,176 5,202,176 0 4,513,939 0 4,513,939
4 39,131,814 5,016,919 5,016,919 0 4,106,784 0 4,106,784
5 37,563,515 5,057,957 5,057,957 0 3,906,017 0 3,906,017
6 35,847,502 4,932,808 4,932,808 0 3,593,745 0 3,593,745
7 34,130,082 4,864,893 4,864,893 0 3,343,648 0 3,343,648
8 32,364,075 4,664,291 4,664,291 0 3,024,315 0 3,024,315
9 30,685,015 4,686,729 4,686,729 0 2,866,852 0 2,866,852
10 28,875,447 4,504,522 4,504,522 0 2,599,431 0 2,599,431
20 13,064,270 2,932,770 2,932,770 0 945,037 0 945,037
21 11,943,990 2,724,038 2,724,038 0 828,091 0 828,091
22 10,969,526 2,517,885 2,517,885 0 722,096 0 722,096
23 10,147,609 2,316,689 2,316,689 0 626,789 0 626,789
24 9,482,428 2,110,619 2,110,619 0 538,713 0 538,713
87 589,209,919 6 6 0 0 0 0
88 625,542,192 3 3 0 0 0 0
89 664,050,492 2 2 0 0 0 0
90 704,865,289 1 1 0 0 0 0
91 748,124,884 0 0 0 0 0 0
Total 58,960,303 + 0 = 58,960,303
Note: Years 11-19 and 25-86 have been omitted from this table.
*
**
***
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 12
City of Fort Collins General Employees' Retirement Plan
Discounted at the single interest rate that produces a total actuarial present value equal to the sum of
the actuarial present values of ''funded'' and ''unfunded'' benefit payments, 6.00%
Discounted at the long-term expected rate of return, 6.00%
Discounted at the municipal bond rate, 3.72%
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting Valuation
Net Pension Liability
Net Pension Liability December 31, 2021 December 31, 2022
Total pension liability $59,647,727 $58,477,391
Fiduciary net position 54,551,272 43,308,005
Net pension liability 5,096,455 15,169,386
Fiduciary net position as a % of total pension liability 91.46%74.06%
Covered payroll 2,363,492 1,969,281
Net pension liability as a % of covered payroll 215.63%770.30%
Discount Rate
Discount rate 6.00%6.00%
Long-term expected rate of return, net of investment expense 6.00%6.00%
Bond Buyer General Obligation 20-Bond Municipal Bond Index 2.06%3.72%
Other Key Actuarial Assumptions
Valuation date January 1, 2022 January 1, 2023
Measurement date December 31, 2021 December 31, 2022
Inflation 2.25%2.25%
Salary increases including inflation Graded by Age Graded by Age
Mortality
Actuarial cost method Entry Age Normal Entry Age Normal
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 13
City of Fort Collins General Employees' Retirement Plan
The total pension liability was determined by an actuarial valuation as of the valuation date, calculated based
on the discount rate and actuarial assumptions below.
The plan has not had a formal actuarial experience study performed.
The plan's fiduciary net position was projected to be available to make all projected future benefit payments
of current active and inactive employees. Therefore, the discount rate for calculating the total pension liability
is equal to the long-term expected rate of return.
This work product was prepared solely for the City of Fort Collins 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
Employees Mortality
Tables projected
generationally using
Scale MP-2020
Pub-2010 General
Employees Mortality
Tables projected
generationally using
Scale MP-2020
DRAFTMilliman Financial Reporting Valuation
Changes in Net Pension Liability
Increase (Decrease)
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Changes in Net Pension Liability (a) (b) (a) - (b)
Balances as of December 31, 2021 $59,647,727 $54,551,272 $5,096,455
Beginning of Year Adjustment $0 ($1,987) $1,987
Changes for the year:
Service cost 122,875 122,875
Interest on total pension liability 3,441,070 3,441,070
Effect of plan changes 0 0
Effect of economic/demographic gains or losses 176,104 176,104
Effect of assumptions changes or inputs 0 0
Benefit payments (4,910,385) (4,910,385) 0
Employer contributions 1,341,392 (1,341,392)
Member contributions 0 0
Net investment income (7,647,164) 7,647,164
Adminstrative expenses (25,123) 25,123
Balances as of December 31, 2022 58,477,391 43,308,005 15,169,386
Sensitivity Analysis
1% Current 1%
Decrease Discount Rate Increase
5.00% 6.00% 7.00%
Total pension liability $63,825,887 $58,477,391 $53,851,770
Fiduciary net position 43,308,005 43,308,005 43,308,005
Net pension liability 20,517,882 15,169,386 10,543,765
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 14
City of Fort Collins General Employees' Retirement Plan
This work product was prepared solely for the City of Fort Collins 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 following presents the net pension liability of the City of Fort Collins, calculated using the discount rate of
6.00%, as well as what the City of Fort Collins's net pension liability would be if it were calculated using a
discount rate that is 1 percentage point lower (5.00%) or 1 percentage point higher (7.00%) than the current
rate.
DRAFTMilliman Financial Reporting ValuationSchedule of Changes in Net Pension Liability and Related RatiosMeasurement Period Ending December 312022 2021 2020 2019 2018 2017 2016 2015 2014 2013Total Pension LiabilityService cost$122,875 $144,873 $170,915 $308,736 $291,421 $313,286 $383,757 $447,690 $487,063N/AInterest on total pension liability3,441,070 3,503,432 3,684,622 3,557,492 3,620,607 3,695,911 3,681,690 3,651,345 3,571,272N/AEffect of plan changes000000000N/AEffect of economic/demographic (gains) or losses176,104 59,231 (340,845) 226,198 554,888 21,369 (455,387) 224,753 237,034N/AEffect of assumption changes or inputs00 781,866 (3,823,926) 6,602,855 1,337,286 220,4530 827,847N/ABenefit payments(4,910,385) (4,544,725) (5,111,889) (5,215,830) (4,847,491) (3,720,322) (3,367,735) (4,205,104) (3,509,719) N/ANet change in total pension liability(1,170,336) (837,189) (815,331) (4,947,330) 6,222,280 1,647,530 462,778 118,684 1,613,497N/ATotal pension liability, beginning59,647,727 60,484,916 61,300,247 66,247,577 60,025,297 58,377,767 57,914,989 57,796,305 56,182,808N/ATotal pension liability, ending (a)58,477,391 59,647,727 60,484,916 61,300,247 66,247,577 60,025,297 58,377,767 57,914,989 57,796,305N/AFiduciary Net PositionBeginning of year adjustment($1,987)$0 ($139) ($131)$3$0$0$0$0$0Employer contributions1,341,392 1,361,952 1,415,437 1,472,169 1,576,991 $1,652,786 $1,720,650 $1,830,265 $1,905,906N/AMember contributions000000000N/AInvestment income net of investment expenses(7,647,164) 6,389,351 7,032,881 8,769,512 (2,458,032) 7,032,711 2,496,848 (274,583) 2,630,327N/ABenefit payments(4,910,385) (4,544,725) (5,111,889) (5,215,830) (4,847,491) (3,720,322) (3,367,735) (4,205,104) (3,509,719) N/AAdministrative expenses(25,123) (26,078) (23,539)(26,768) (20,131) (26,752) (30,745) (22,706) (18,935) N/ANet change in plan fiduciary net position(11,241,280) 3,180,500 3,312,890 4,999,083 (5,748,663) 4,938,423 819,018 (2,672,128) 1,007,579N/AFiduciary net position, beginning54,551,272 51,370,772 48,058,021 43,059,069 48,807,729 43,869,306 43,050,288 45,722,416 44,714,837N/AFiduciary net position, ending (b)43,308,005 54,551,272 51,370,772 48,058,021 43,059,069 48,807,729 43,869,306 43,050,288 45,722,416N/ANet pension liability, ending = (a) - (b)$15,169,386 $5,096,455 $9,114,144 $13,242,226 $23,188,508 $11,217,568 $14,508,461 $14,864,701$12,073,889N/AFiduciary net position as a % of total pension liability 74.06% 91.46% 84.93% 78.40% 65.00% 81.31% 75.15% 74.33% 79.11% N/ACovered payroll$1,969,281 $2,363,492 $2,884,624 $3,923,740 $4,738,991 $5,255,224 $6,191,383 $7,306,661 $8,202,862N/ANet pension liability as a % of covered payroll770.30% 215.63% 315.96% 337.49% 489.31% 213.46% 234.33% 203.44% 147.19% N/AGASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022Page 15City of Fort Collins General Employees' Retirement PlanThis work product was prepared solely for the City of Fort Collins for thepurposes described herein and may notbe appropriate to use for other purposes. Milliman does not intend to benefit and assumes no duty or liability to otherparties 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 schedule is presented to illustrate the requirement to show information for 10 years. However, recalculations of prior years are not required, and if prior years are not reported in accordance with thecurrent GASB standards, they should not be reported.
DRAFTMilliman Financial Reporting Valuation
Pension Expense
January 1, 2021 to January 1, 2022 to
Pension Expense December 31, 2021 December 31, 2022
Service cost $144,873 $122,875
Interest on total pension liability 3,503,432 3,441,070
Effect of plan changes 0 0
Administrative expenses 26,078 25,123
Member contributions 0 0
Expected investment return net of investment expenses (2,987,383) (3,168,810)
Recognition of Deferred (Inflows)/Outflows of Resources
Recognition of economic/demographic (gains) or losse 59,231 176,104
Recognition of assumption changes or inputs 0 0
Recognition of investment (gains) or losses (2,516,206)496,629
Pension Expense (1,769,975)1,092,991
As of December 31, 2022, the deferred (inflows) and outflows of resources are as follows:
Deferred (Inflows) Deferred Outflows
Deferred (Inflows) / Outflows of Resources of Resouces of Resouces
Differences between expected and actual experience $0 $0
Changes of assumptions 0 0
Net difference between projected and actual earnings 0 3,715,231
Total (prior to post-Measurement Date Contributions)0 3,715,231
Contributions made subsequent to measurement date N/A 0
Net deferred outflow / (inflow) of resources 3,715,231
Year ended December 31:
2023 ($584,820)
2024 654,054
2025 1,482,803
2026 2,163,194
2027 0
Thereafter*0
Total 3,715,231
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 16
City of Fort Collins General Employees' Retirement Plan
Amounts currently reported as deferred outflows of resources and deferred (inflows) of resources related to
pensions will be recognized in pension expense as follows:
This work product was prepared solely for the City of Fort Collins 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.
* Note that additional future deferred (inflows) and outflows of resources may impact these numbers.
DRAFTMilliman Financial Reporting Valuation
Schedule of Deferred Inflows and Outflows of Resources
Amount Amount
Measurement Recognized Recognized Balance of Balance of
Period In in Pension in Pension Deferred Deferred
Which Original Expense Expense (Inflows) Outflows
Original Experience Rec. for FYE through as of as of
Amount Arose Period* 12/31/2022 12/31/2022 12/31/2022 12/31/2022
Economic/
demographic
(gains) or losses $176,104 12/31/2022 1.0 $176,104 $176,104 $0 $0
Total 176,104 176,104 0 0
Assumption
changes or
inputs 0 12/31/2022 0.0 0 0 0 0
Total 0000
Investment 10,815,974 12/31/2022 5.0 2,163,195 2,163,195 0 8,652,779
(gains) or losses (3,401,968) 12/31/2021 5.0 (680,394) (1,360,788) (2,041,180)0
(4,143,743) 12/31/2020 5.0 (828,749) (2,486,247) (1,657,496)0
(6,194,360)12/31/2019 5.0 (1,238,872) (4,955,488) (1,238,872)0
5,407,241 12/31/2018 5.0 1,081,449 5,407,241 0 0
Total 496,629 (1,232,087) (4,937,548) 8,652,779
Total for economic/demographic (gains) or losses
and assumption changes or inputs $0 $0
Net deferred (inflows)/outflows for investment gains or losses $0 $3,715,231
Total deferred (inflows)/outflows $0 $3,715,231
Total net deferrals
*
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2016 Page 17
City of Fort Collins General Employees' Retirement Plan
Investment (gains)/losses are recognized in pension expense over a period of five years;
economic/demographic (gains)/losses and assumption changes or inputs are recognized over the average
remaining service life for all active and inactive members.
This work product was prepared solely for the City of Fort Collins 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.
DRAFTMilliman Financial Reporting ValuationTotal PlanNetNet InvestmentNet PensionPension Fiduciary Pension Deferred Deferred (Inflows)/ Net Liability plus AnnualLiability Net Position Liability Inflows Outflows Outflows Deferrals Net Deferrals ExpenseBalances as of December 31, 2021($59,647,727) $54,551,272 ($5,096,455)$0$0 ($6,604,114) ($6,604,114) ($11,700,569)Beginning of Year Adjustment0 (1,987) (1,987)(1,987)Service cost(122,875)(122,875)122,875Interest on total pension liability(3,441,070)(3,441,070)3,441,070Effect of plan changes000Effect of liability gains or losses(176,104)(176,104)0176,104$176,104Effect of assumption changes or inputs0000$0Benefit payments 4,910,385 (4,910,385)0Administrative expenses(25,123) (25,123)25,123Member contributions000Expected investment income3,168,810 3,168,810(3,168,810)Investment gains or losses(10,815,974) (10,815,974)10,815,974 $10,815,974Employer contributions1,341,392 1,341,3921,341,392Recognition of liability gains or losses0(176,104)($176,104)176,104Recognition of assumption changes or inputs00$00Recognition of investment gains or losses(496,629) ($496,629)496,629-------------------Annual expense(1,092,991) 1,092,991------------------- ------------------- ------------------- ------------------- ------------------- ------------------- ------------------- -------------------Balances as of December 31, 2022(58,477,391) 43,308,005 (15,169,386)00 3,715,231 3,715,231 (11,454,155)GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022Page 18City of Fort Collins General Employees' Retirement PlanThis work product was prepared solely for the City of Fort Collins 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 otherparties 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.
DRAFTMilliman Financial Reporting Valuation
Glossary
Deferred Inflows/Outflows
of Resources
Discount Rate
1)
2)
Fiduciary Net Position
Long-Term Expected
Rate of Return
Money-Weighted
Rate of Return
Municipal Bond Rate
Net Pension Liability
Projected Benefit Payments
Service Cost
Total Pension Liability
GASB 67 and 68 Disclosure for Fiscal Year Ending December 31, 2022 Page 19
City of Fort Collins General Employees' Retirement Plan
Total Pension Liability minus the Plan's Fiduciary Net Position (unfunded
accrued liability).
Equal to market value of assets.
This work product was prepared solely for the City of Fort Collins 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.
Single rate of return that, when applied to all projected benefit payments,
results in an actuarial present value of projected benefit payments equal to
the sum of:
Long-term expected rate of return on pension plan investments expected
to be used to finance the payment of benefits, net of investment
Portion of changes in net pension liability that is not immediately
recognized in Pension Expense. These changes include differences
between expected and actual experience, changes in assumptions, and
differences between expected and actual earnings on plan investments.
The internal rate of return on pension plan investments, net of investment
expenses.
All benefits estimated to be payable through the pension plan to current
active and inactive employees as a result of their past service and
expected future service.
The portion of the actuarial present value of projected benefit payments
that is attributed to a valuation year.
Yield or index rate for 20-year, tax-exempt general obligation municipal
bonds with an average rating of AA/Aa or higher.
The actuarial present value of projected benefit payments not included
in (1), calculated using the Municipal Bond Rate.
The actuarial present value of benefit payments projected to be made
in future periods where the plan assets are projected to be sufficient to
meet benefit payments, calculated using the Long-Term Expected Rate
of Return.
The portion of actuarial present value of projected benefit payments that is
attributable to past periods of member service using the Entry Age Normal
cost method based on the requirements of GASB 67 and 68.