Note: This math was reviewed in September 2009 with Joe Christoffel from Nevada County and it only includes the MISC Employee Pension plan (it does not include the Public Safety Employee Pension plan).
Go to page 5 of the Actuarial Valuation (as of June 30, 2007) for the
Miscellaneous Plan of the County of Nevada (employer #505)Download NOV_08_NEV_CO_PERS_UL.
Find the Entry Age Normal Accrued Liability figure on page 5- $248,063,046.
Next find the June 30 2007 Market Value of Assets as of $228,852,611 on page 5.
Now adjust the Market Value of Assets DOWN by the amount of reported losses to the CalPERS investment portfolio from June 2007 through June 2009 (HERE-page 3). In 2008 the losses were 4.9% and in 2009 (through June 30) the losses were an additional 23.4%. Total losses from 2007 through 2009 were 28.3%. Adjust the 2007 MVA down by 28.3% to get a current estimated MVA of $164,137,323.
The amount of promised benefits are $248,063,046 minus the amount available to fulfill the promises of $164,137,323 creates an unfunded liability of $83,925,723.
We use the MVA in the calculation because CalPERS states,"..the funded ratio based on the Market Value of Assets is a better indicator of the solvency of the plan."
Entry Age Normal Accrued Liability of $248,063,046
minus Market Value of Assets (estimated June 20 2009) $164,137,323
equals the unfunded amount of $83,925,723.
The goal of the exercise was to estimate how badly the recent stock, bond, real estate crash hurt the County's pension plan. It should be noted that the $83,925,723 does NOT include CalPERS' admin fee. Net of the CalPERS 1% annual admin fee the UL jumps to $88,552,776.