August 9, 2013 Maze & Associates 3478 Buskirk Ave., Suite 214 Pleasant Hill, CA 94523 RE: Alameda-Contra Costa Transit District Retiree Benefits Non-Trust Plan as of June 30, 2013 Dear Maze & Associates: Below and enclosed is the information requested in your attached letter to Buck Consultants from Ralph Martini dated July 1, 2013 regarding Alameda-Contra Costa Transit District’s Retiree Benefits Non-Trust Plan for the fiscal year ending June 30, 2013. A copy of Buck’s most recent valuation results letter as of July 1, 2012 is also enclosed. This information will be referred to as responses are provided below in the order requested. Requested Audit Information 1. General Plan information: (a) The Plan is a single-employer plan. (b) See page 1 of the August 29, 2012 dated valuation results letter attached for a description of the Substantive Plan as valued. (c) See page 1 of the August 29, 2012 dated valuation results letter attached for a description of the Substantive Plan as valued. (d) There are no known contributions required of active plan members. (e) N/A, the funding policy is currently pay-as-you-go. (f) No known legal or contractual limitations on the maximum amount of A-C Transit District’s contribution. (g) No known changes for or during the current year for questions 1.(a)-1.(f). 2. N/A. The plan is currently funded on a pay-as-you-go basis. 3. N/A, see valuation report for this information. 4. Census listings used in the valuation will be sent electronically via secure upload (a) The data was provided by A-C Transit District as of July 1, 2012. (b) Yes, to our knowledge, all employees currently covered by the Plan’s provisions were included in the census. (c) No, there was no information included in the participant census that was excluded from the valuation. (d) No, the actuarial valuation and census data were both as of July 1, 2012.
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5. Actuarial Information for the year ending June 30, 2013: Net OPEB Obligation (Asset) 7/1/2012
$1,123,000
Annual OPEB cost: Annual Required Contribution (ARC)
$ 2,524,000
Interest on Net OPEB Obligation
51,000
Adjustments to the ARC
(69,000)
Annual OPEB Cost
$ 2,506,000
Contributions made (estimated pay as you go cost)
$ 1,352,000
Change in Net OPEB Obligation Net OPEB Obligation (Asset) 6/30/2013
1,154,000 $ 2,277,000
6. Information regarding the valuation: (a) No, there are currently no set required contributions to compare to the ARC. (b) Projected Unit Credit actuarial cost method. (c) N/A, the plan has no dedicated assets. 7. Information as of the 7/1/2012 actuarial valuation: Actuarial Valuation Date Actuarial Value of Plan Assets
7/1/2012 $
0
Actuarial Accrued Liability (AAL) Total Unfunded Actuarial Accrued Liability (UAAL)
31,188,000 $
Annual Covered Payroll
N/A, benefits are not related to payroll
31,188,000
8. Information about actuarial assumptions: (a)-(f) See Appendix A of the valuation result letter for all current valuation assumptions. 9. Amortization of the unfunded actuarial liability is level dollar over 30 years on an open basis. 10. No known plan amendments were not considered in the latest valuation. 11. No, to our knowledge the plan has not been amended, fully, or partially terminated since the date of the valuation. 12. N/A, the answer was no.
Maze & Associates August 9, 2013 Page 3 of 3
13. N/A, we are not aware of any changes in benefits, or demographics that would have a significant effect on the results of the valuation. The mortality assumption was altered from a fully generational basis to a static projection to 2027 for actives and 2019 for retirees. The trend assumption was altered from an assumed 10% for FY2012, grading down 1% each year to 5.0% for FY2017 and beyond to an assumed trend rate of 10% for FY2013 grading down 1% each year to 5.0% for FY2018 and beyond. The Unfunded Actuarial Accrued Liability is being amortized on a level dollar basis instead of previously being amortized over a level percentage of payroll. 14. N/A, no known plan amendments since the prior valuation. 15. Yes, all information in questions 5-14 was determined in accordance with GASB Statement Nos. 43 and 45. 16. General Information: (a) I am not aware of any relationship that exists with the Plan or the Plan sponsor that may impair or appear to impair the objectivity of our work. (b) $0 in unpaid fees due to Buck Consultants by the Plan on June 30, 2013. (c) N/A, no additional information at this time. Please let me know if additional information is needed to assist in your audit. Sincerely,
Kristi C Olivas, FSA, MAAA, FCA Director and Consulting Actuary August 8, 2013
Enclosures
cc: Ralph Martini, Controller, Alameda-Contra Costa Transit District Charlie Chittenden, Principal, Buck Consultants
