IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE DISTRICT OF PUERTO RICO

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO,

as representative of

THE COMMONWEALTH OF PUERTO 

RICO, et al.

Debtors.1

PROMESA

Title III

Case No. 17 BK 3283-LTS

(Jointly Administered)

In re:

THE FINANCIAL OVERSIGHT AND 

MANAGEMENT BOARD FOR PUERTO RICO

as representative of

PUERTO RICO ELECTRIC POWER 

AUTHORITY,

Debtor.

PROMESA

Title III

Case No. 17 BK 4780-LTS

EXPERT DECLARATION OF MR. JOSÉ FERNÁNDEZ, PRESIDENT AND 

CONSULTING ACTUARY OF FASE2 C&W, LLC IN SUPPORT OF THE 

EMPLOYEES’ RETIREMENT SYSTEM OF PUERTO RICO ELECTRIC POWER 

AUTHORITY’S OBJECTION TO THE CONFIRMATION OF THE PUERTO RICO 

ELECTRIC POWER AUTHORITY’S PLAN OF ADJUSTMENT 

[Space intentionally left blank]

1 The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four (4) 

digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto Rico 

(Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales Tax 

Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal Tax ID: 

8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 3567-LTS) 

(Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government of the 

Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566-LTS) (Last Four Digits of Federal Tax 

ID: 9686); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-LTS) (Last 

Four Digits of Federal Tax ID: 3747). (Title III case numbers are listed as Bankruptcy Case numbers due to software 

limitations.)

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1 I. Introductory Questions

2 Q. State your name and position. 

3 My name is Jose Fernandez, President and Consulting Actuary of Fase2 C&W, LLC (Fase2). 

4 Fase2 provides actuarial consulting services for public pension systems. Specifically, we provide 

5 actuarial consulting on the adequate funding, benefit design, administration, and actuarial analysis 

6 of public sector retirement systems.

7 Q. Describe your professional experience and qualifications. 

8 In the past I have presented expert witness testimony in Puerto Rico Court of First Instance

9 (Tribunal de Primera Instancia de San Juan) on the actuarial funding requirements for the 

10 University of Puerto Rico Retirement System.

11 Prior to Fase2, I spent over 35 years as a consulting actuary with two major actuarial firms (Buck 

12 Consultants from 1981 to 2007 and Cavanaugh Macdonald Consulting from 2007 through 2017) 

13 responsible for services provided to state and local governmental retirement systems, including 

14 several in Puerto Rico. I consulted with clients in the design, funding, administration, and financial 

15 accounting of public retirement plans, proposed legislation analysis, experience studies, asset 

16 liability forecasts, and actuarial audits. Clients I have consulted for include the Virginia Retirement 

17 System, University of Puerto Rico Retirement System, Employees’ Retirement System of Puerto 

18 Rico Electric Power Authority, and several municipal retirement systems in the State of Florida.

19 I am an Enrolled Actuary under the Employee Retirement Income Security Act (ERISA), an 

20 Associate of the Society of Actuaries, and a Member of the American Academy of Actuaries. 

21 Q. State your educational background. 

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22 I received my Bachelor of Science Degree in Mathematics from St. Peter’s University in Jersey 

23 City, New Jersey in 1978. Please refer to my curriculum vitae for more information on my 

24 professional experience, qualifications, and educational background. Annex I.

25 Q. State on whose behalf you are testifying before the Title III Court.

26 I am providing this testimony on behalf of the Employees’ Retirement System of Puerto Rico 

27 Electric Power Authority (“PREPA ERS”, “Retirement System”, “System”).

28 Q. What experience do you have with the Retirement System?

29 I served as the principal consulting actuary to the PREPA ERS for 36 years (continuously from 

30 1981 through 2017, except for one year after my employment terminated with Buck Consultants). 

31 Currently, I provide actuarial consulting services to the System in relation to the restructuring of 

32 the Puerto Rico Electric Power Authority (“PREPA” or the “Authority”) and the Retirement 

33 System under the Title III process, and the Puerto Rico Oversight, Management, and Economic 

34 Stability Act (PROMESA), and coordination with and support for the System’s current actuary 

35 Cavanaugh Macdonald Consulting.

36 In my years of experience with the System, I have worked closely with the System’s Board of 

37 Trustees and administrative staff, and with PREPA management, including several meetings with 

38 the PREPA Governing Board. As a result, I have intimate knowledge of issues related to the 

39 benefits, funding, and financial reporting of the System. 

40 Q. List the documents you considered for your testimony.

41 A. “Reglamento del Sistema de Retiro de los Empleados de la Autoridad de Energía Eléctrica”, 

42 as amended April 26, 2018. (“Rules and Regulations”).

43 B. Asset Consulting Group investment report for the period ending June 30, 2022.

44 C. Cavanaugh Macdonald Consulting letter dated November 10, 2022.

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45 D. “Puerto Rico Oversight, Management, and Economic Stability Act” or “PROMESA”.

46 E. Unaudited “Informe Deuda de la Autoridad de Energía Eléctrica con el Sistema de Retiro 

47 al 31 de marzo de 2023” worksheet, provided by the Retirement System in email 

48 correspondence dated April 21, 2023.

49 F. “Employees’ Retirement System of Puerto Rico Electric Power Authority Report on the 

50 Seventy-Sixth Actuarial Valuation as of June 30, 2021”, dated February 21, 2023.

51 G. “Modified Disclosure Statement for First Amended Title III Plan of Adjustment of the 

52 Puerto Rico Rico Electric Power Authority”, dated February 21, 2023.

53 H. Financial Oversight and Management Board for Puerto Rico (the “Board”) and Ernst & 

54 Young Puerto Rico LLC (“EY”) analysis of pension modifications dated August 30, 2022.

55 I. Fase2 C&W, LLC letter dated November 16, 2022.

56 Q. What is the purpose of your testimony?

57 I will provide expert testimony from an actuarial and financial standpoint about the current state 

58 of the Retirement System and how the PREPA ERS pension reform proposal is viable. Moreover, 

59 I will testify that this proposal complies with the corresponding regulation. My testimony will be 

60 focused on the impact of the Plan on PREPA ERS and its participants, as well as on the proposed 

61 treatment for the Pension Claim and the proposed pension reform. Moreover, I will testify 

62 regarding the difference of the treatment given to the Pension Claim compared to other similarly 

63 situated creditors.

64 II. Description of the Retirement System

65 Q. Provide an overview of the System.

66 PREPA ERS is a defined benefit retirement system providing retirement, disability and death 

67 benefits to employees and retirees of PREPA. The promised benefits under the System are covered

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in a legal plan document (“Rules and Regulations”

2

68 ) and are determined by defined benefit 

69 formulas and are generally payable to retired System members and their beneficiaries for life.

70 PREPA ERS is an independent fiduciary trust administered by the PREPA ERS Board of Trustees 

71 and is a separate entity from PREPA. The Rules and Regulations of the System specify the 

72 contributions payable by the members and PREPA to maintain the sound actuarial funding of the 

73 System.

74 Q. Provide a summary of the System’s investment returns.

75 The PREPA ERS Board of Trustees is responsible for the investment of the System assets in 

76 accordance with the Rules and Regulations and the System’s investment policy. From October 

2003 through June 30, 2022, the average annual investment return of the System has been 7.25%.377

78 Q. Provide a summary of the System’s current funded status.

79 The System has no assets to pay future benefits and is insolvent. In response to the System’s 

80 insolvency the Board has proposed to pay the promised benefits to members and the System’s 

81 expenses on a PayGo basis. That is, the employer will have to make periodic contributions to pay 

82 the retirement, disability, death and other benefits to members, and expenses, since there are not 

83 sufficient assets in the Trust. The estimated retirement and other benefits and expenses payable 

84 from the System for the fiscal year ending June 30, 2023, on a PayGo basis are approximately 

85 $377.7 million. As discussed below, in my opinion, there is another viable alternative to paying 

86 System benefits that is not on a PayGo basis. In addition, since the assets are depleted, there is no 

87 investment income to pay a portion of the benefit costs. 

2 Reglamento del Sistema de Retiro de los Empleados de la Autoridad de Energía Eléctrica, as amended April 26, 

2018, Article 5(2). 

3 Based on information provided in the report for the period ending June 30, 2022, prepared by the System’s 

investment consultant Asset Consulting Group.

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88 As a result of the depletion of the System assets, the accumulated contributions paid by current 

89 active members have also been depleted and used to pay for benefits for current retirees and 

90 beneficiaries. The accumulated member contributions with interest projected as of June 30, 2023,

are $399.0 million.491

92 Q. Explain the reason for the System’s insolvency.

93 The principal reason for the System’s insolvency is the failure of PREPA to make the contributions 

94 to the System required by the Rules and Regulations of the System and provide adequate funding 

95 pursuant to PROMESA. PROMESA requires that PREPA’s fiscal plan provide adequate funding 

for the PREPA Retirement System.596

97 Article 5(2) of the Rules and Regulations of the PREPA Retirement System requires the Authority 

98 to pay the actuarially determined contribution to the Retirement System.

99 In accordance with the Rules and Regulations of the System, the PREPA ERS benefits are financed 

100 through employee and employer (PREPA) contributions to the Trust dedicated to pay the benefits 

101 under the System. The contributions to the Trust are invested as directed by the Board of Trustees 

102 of the System to generate investment income to contribute to the payment of System benefits.

103 Member contributions are a fixed rate of the employee’s salary in accordance with the System’s 

104 Rules and Regulations. 

105 The Rules and Regulations of the System require Authority contributions determined through 

106 annual actuarial valuations prepared by and recommended by the System’s actuary and approved 

107 by the System’s Board of Trustees. The Authority’s actuarially determined contributions vary each 

108 fiscal year depending on the System member data, the System’s investment and actuarial 

109 experience, and the actuarial assumptions and methods used by the System’s actuary and approved 

4 Based on information provided in the Cavanaugh Macdonald Consulting letter dated November 10, 2022.

5

“Puerto Rico Oversight, Management, and Economic Stability Act” or “PROMESA”, Section 201(b)(1)(B).

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110 by the Board of Trustees. The actuarially determined contributions are determined by the System 

111 actuary through the application of Actuarial Standards of Practice and generally accepted methods. 

112 The required actuarially determined Authority contributions are calculated to provide, together 

113 with the member contributions and investment income on all contributions, sufficient System 

114 funds to pay the members the promised benefits under the Trust. The payment of Authority 

115 contributions as approved by the Board of Trustees is required in order for the System to have 

116 enough assets to pay the promised benefits under the Rules and Regulations. If PREPA does not 

117 pay the required contributions the assets of the System will not be sufficient in the future to pay 

118 the promised benefits.

119 PREPA has not paid the required contributions to the System since July 2016. As of February 28, 

2023, PREPA owes the System approximately $960.6 million in unpaid contributions6120 . 

121 In addition, the System has suffered significant investment income losses for the unpaid 

122 contributions. For the 5-year period from July 1, 2017, through June 30, 2022, the average annual 

investment return of the System has been 8.07%.7123

124 In summary, the System would be solvent if PREPA had met its obligation under PROMESA and 

125 the Rules and Regulations to pay the required actuarially determined contributions to the Trust.

126 III. PREPA ERS Claim

127 Q. Provide information on the Retirement System’s reform proposal.

128 The Retirement System’s proposal is to maintain and protect the promised benefits under the 

129 current System’s Rules and Regulations for all active employees and current retirees and 

130 beneficiaries and terminated members with deferred vested benefits without any changes. 

6 Unaudited, Informe Deuda de la Autoridad de Energía Eléctrica con el Sistema de Retiro al 31 de marzo de 2023,

provided by the Retirement System.

7 Based on information provided in the report for the period ending June 30, 2022, prepared by the System’s 

investment consultant Asset Consulting Group.

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131 The actuarially determined present value of future benefits (“total actuarial liabilities”) is the 

132 measure of the amount as of a given date that would be sufficient to pay for all future benefits 

133 payable from the System for current active and inactive members assuming all actuarial 

134 assumptions are met. As of June 30, 2021, the total actuarial liabilities are $4,459.5 million 

135 according to the June 30, 2021, actuarial valuation report prepared by Cavanaugh Macdonald 

Consulting, assuming a discount rate of 5.75% per annum.

8

136 The total actuarial liabilities of 

137 $4,459.5 million is the estimated claim by the Retirement System to maintain the promised benefits 

138 under the current System without any changes or reforms.

Q. Explain the treatment of the Retirement System’s claim under the Plan of Adjustment. 9139

140 Under the Plan of Adjustment, the benefits for current and future System retirees and beneficiaries 

141 will be paid on a PayGo basis. That is, the employer will have to make periodic contributions to 

142 pay the retirement, disability, death and other benefits to members, and expenses, since there are 

143 not sufficient assets in the Trust.

144 In addition, the Plan of Adjustment includes changes in System benefits, such as, (i) freezing 

145 accrued benefits for active System members, (ii) changes in the eligibility requirements to 

146 commence pension benefits, (iii) the elimination of future pension increases every three years, and 

147 (iv) the elimination of the summer and Christmas bonuses for active members.

148 The Plan of Adjustment proposes a defined contribution plan for active employees for future 

149 service. Member contributions to the defined contribution plan would be required, but there would 

150 be no employer contributions to the plan.

8 Employees’ Retirement System of Puerto Rico Electric Power Authority Report on the Seventy-Sixth Actuarial 

Valuation as of June 30, 2021, dated February 21, 2023, p.17.

9 All references to “Plan of Adjustment” in this testimony refer to the Modified Second Amended Title III Plan of 

Adjustment of The Puerto Rico Electric Power Authority filed at Case No. 17-04780-LTS, ECF 3296, the exhibits and 

other materials attached to the Plan of Adjustment, and any and all amendments which were available at the date of 

this testimony.

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151 Q. What is the loss to the Retirement System and its members with the elimination of the 

152 current defined benefit plan? 

The analysis10 153 prepared by the Board and EY presents the “Projected PayGo costs (including 

154 admin)” payments under the proposed pension modifications for the fiscal years 2024 through 

155 2060. The present value of the payments assuming an annual discount rate of 5.75% is 

156 approximately $3,344.8 million. This amount is $1,114.7 million less than the Retirement 

System’s estimated claim of $4,459.5 million for the total actuarial liabilities.

11 157

158 The proposed pension modifications in the Plan of Adjustment will reduce promised benefits under

159 the Rules and Regulations of the System. In addition, active members would no longer be covered 

160 under a defined benefit plan with respect to future service. Instead, the members will be covered 

161 under a defined contribution plan funded solely by member contributions and no employer 

162 contributions.

163 Q. How much of its claim does the Retirement System recover under the Plan of Adjustment?

164 Under the Plan of Adjustment, the Retirement System does not recover any of its claim. The 

165 Board’s PayGo proposal under the Plan of Adjustment effectively bypasses the Retirement 

166 System’s claim for total actuarial liabilities, proposing instead to pay the defined benefits directly 

167 to the beneficiaries of the Retirement System. The members of the Retirement System recover 

168 approximately 75% of their promised Retirement System benefits under the Plan of Adjustment

169 (present value of PayGo payments under Plan of Adjustment of $3,344.8 million divided by total 

170 actuarial liabilities System claim of $4,459.5 million). The members of the Retirement System fail 

10 Prepared by the Financial Oversight and Management Board for Puerto Rico (the “Board”) and Ernst & Young 

Puerto Rico LLC (“EY”) dated August 30, 2022.

11 Employees’ Retirement System of Puerto Rico Electric Power Authority Report on the Seventy-Sixth Actuarial 

Valuation as of June 30, 2021, dated February 21, 2023, p.17.

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171 to recover approximately $1,114.7 million of the value of future benefits payable to members 

172 promised under the System’s Rules and Regulations.

173 Q. How much is the Retirement System’s claim as a result of the elimination of the current 

174 System defined benefit plan?

175 If the Plan of Adjustment pension modifications are adopted, including the reduction in accrued 

176 benefits and the elimination of the current System defined benefit plan, the members of the System 

177 will receive a value of approximately $3,344.8 million. The difference of $1,114.7 million, stems 

178 from the System's overall actuarial obligations of $4,459.5 million and the sum allocated for 

179 disbursement to the Retirement System members under the Plan of Adjustment, which amounts to 

180 $3,344.8 million.

181 Q. Under the Plan of Adjustment, how does the treatment of the Retirement System compare 

182 to the treatment of the Fuel Line Lenders (“FLL”)?

Under the Plan of Adjustment, Fuel Line Lenders (“FLL”) shall receive 84% of their claim.12 183 The 

184 amount payable to the Retirement System, if it received 84% of its total actuarial liabilities claim 

185 of approximately $4,459.5 million, would be $3,746.0 million at a discount rate of 5.75%. Instead 

186 under the Plan of Adjustment’s proposed treatment of the Retirement System, the System would 

187 receive a value of approximately $3,344.8 million.

188 The $3,344.8 million payment to the System under the Plan of Adjustment’s treatment represents 

189 75% of its total claim, compared to the 84% offered to the FLL. Under the Plan of Adjustment 

190 treatment of the Retirement System, the System receives approximately $401.2 million less than 

191 if it received the same treatment as the FLL.

12 Exhibit A, Article VII of the Modified Disclosure Statement for First Amended Title III Plan of Adjustment of the 

Puerto Rico Rico Electric Power Authority, dated February 21, 2023.

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192 The payment of 84%, or approximately $3,746.0 million, presented above is based on a discount 

193 rate of 5.75%. The 5.75% discount rate is a reasonable interest rate for an ongoing pension plan.

194 However, for a closed pension plan as proposed in the Plan of Adjustment it would be more 

appropriate to use a market-related interest rate. In the Disclosure Statement,

13 195 the Board evaluates 

196 the financial situation of the System using a market-related discount rate of 3.58% per annum, 

197 consistent with accounting standards. It is my opinion that it would be appropriate to apply this 

198 same criteria for the evaluation of the System’s actuarial liabilities under the FLL treatment. 

199 Further analysis would be required to estimate the actuarial liabilities under the FLL treatment 

200 based on a 3.58% discount rate.

201 Q. What are the estimated savings of the Board’s proposed pension reform?

202 The value of the Retirement System’s total actuarial liabilities claim is approximately $4,459.5 

203 million. Net of the value of future member contributions under the current System of $150.0 

million,

14 204 the value of future employer contributions under the current System is approximately 

205 $4,309.5 million. The value of the Retirement System liabilities under the proposed Retirement 

206 System modification with the PayGo structure is approximately $3,344.8 million. Therefore, the 

207 estimated savings of the proposed Retirement System modification compared to the projected 

208 employer cost of the current System is $964.7 million. These estimated savings are a result of 

209 reductions in the accrued benefits of active members and the elimination of the defined benefit 

210 plan provided in the Rules and Regulations.

211 Q. Describe the Retirement System’s reform proposal.

13 All references to the “Disclosure Statement” refer to the Disclosure Statement for Modified Second Amended Title 

III Plan of Adjustment of The Puerto Rico Electric Power Authority filed at Case No. 17-04780-LTS, ECF 3297, the 

exhibits and other materials attached to the Disclosure Statement, and any and all amendments which were available 

at the date of this testimony.

14 Employees’ Retirement System of Puerto Rico Electric Power Authority Report on the Seventy-Sixth Actuarial 

Valuation as of June 30, 2021, dated February 21, 2023, p.17.

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212 The Retirement System’s proposal includes the PayGo payment of pensions to current inactive 

213 members (that is, retired members and beneficiaries receiving pension benefits and terminated 

214 vested members entitled to deferred benefits) with the elimination of future pension increases 

215 every three years. 

216 For active members a separate defined benefit plan would be created. All active employees would 

217 transfer to the new plan. 

218 The new plan benefits would be the same as the benefits of the current System. That is, the 

219 members would receive the same benefits as under the current System except payable from a 

220 separate plan. 

221 The actuarial liabilities with respect to the active members would be transferred from the current 

222 System to the new plan. 

223 A new, separate account or trust would be established for the new plan. 

224 The future member and employer contributions would be deposited and invested in the account or 

225 trust of the new plan.

226 The plan assumes no new plan members in the future. That is, the plan begins with the active 

227 members at the effective date and the number of members declines over time as those members 

228 retire or terminate from service.

229 Q. Discuss the actuarial viability of the Retirement System’s proposal.

230 Members would make contributions to the new plan at the same contribution rate as a percent of 

231 pay as with the current System. The average contribution rate for projected active employees in 

the new plan as of June 30, 2023, is 12.01%.15 232

15 Fase2 C&W, LLC letter dated November 16, 2022.

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233 The employer would make required contributions to the new plan based on annual actuarial 

234 valuations as outlined in the current System’s Rules and Regulations and actuarial assumptions 

235 and methods, including an assumed rate of return of 5.75%. The employer contributions will vary 

236 depending on the funds the new plan will receive to fund the actuarial accrued liabilities transferred 

237 from the current System. The estimated actuarial accrued liabilities for the projected active 

employees in the new plan as of June 30, 2023, is $771.5 million16 238 . The greater the initial assets 

239 of the new plan, the lower the ongoing employer contributions. The employer contributions will 

240 consist of (i) amortization of any unfunded actuarial accrued liability (legacy cost) transferred from 

241 the current System, (ii) a normal cost payment (ongoing cost) for the future benefit accruals not 

242 covered by the contributions made by members, and (iii) an interest adjustment for the timing of 

243 contributions throughout the fiscal year. The estimated ongoing employer cost of the new plan 

244 with interest is $9.9 million (or 6.44% of pay) for active employees as of June 30, 2023. (As noted 

245 above, the average member contribution rate is 12.01% of pay.) The payment for the unfunded 

246 actuarial accrued liability is estimated to range from $0 if the actuarial accrued liability is fully 

funded initially, to $74.6 million annually for 17 years if the initial assets of the new plan are $0.17 247

248 Q. Discuss the actuarial viability of the Retirement System’s proposal if the Retirement 

249 System receives the same treatment as the FLL.

250 Under the FLL treatment the System would receive 84% of its total claim, or approximately 

251 $3,746.0 million at an interest rate of 5.75%. The amount of $3,746.0 million would fund 

252 approximately 94% of the total actuarial liabilities and 99% of the actuarial accrued liabilities 

253 under the Retirement System’s proposal. The $3,746.0 million payment under the FLL treatment 

254 would cover the $3,014.4 million estimated value of the Retirement System’s PayGo proposal for 

16 Ibid.

17 Ibid.

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255 current retirees (including the elimination of future pension increases every three years). The 

256 balance of $731.6 million from the FLL treatment payment ($3,746.0 million FLL treatment 

257 payment minus $3,014.4 million PayGo for current retirees) would provide the initial asset for the 

258 continuing plan for active employees proposed by the Retirement System. Reflecting the estimated 

259 initial asset of $731.6 million, the estimated employer annual contribution for the active members’ 

260 plan is $13.8 million. In Annex II, I present a comparison of the projected costs of the Retirement 

261 System’s proposal reflecting the FLL treatment with the projected costs under the Board’s proposal. 

262 In the projection for fiscal years 2024 through 2060, the total projected savings of the Retirement 

263 System’s proposal is $656.1 million compared to the Board proposal.

264 Q. Is there a justification for the difference in treatment to the Retirement System and the 

265 FLL in the Plan of Adjustment?

266 To my knowledge, there is no reason for the difference in treatment of the Retirement System and 

267 the FLL under the Plan of Adjustment.

268 Q. What would be the effect of offering PREPA ERS the same treatment offered to the 

269 FLL?

270 If PREPA ERS receives the same treatment as the FLL, I estimate the employer cost of the PREPA 

271 ERS proposal to maintain the defined benefit plan for active employees is relatively minimal and 

272 is projected to have a lower long-term cost than the Board’s proposal.

273 I declare under penalty of perjury that the foregoing is true and correct to the best of my 

274 knowledge, information, and belief.

275

276 ______________________

277 José Fernández

278 April 28, 2023

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ANNEX I

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JOSE I FERNANDEZ Fase2 C&W, LLC

1720 Mars Hill Rd, Suite 120-284, Acworth, GA 30101

 678-983-0903

 josef@Fase2consulting.com

PROFILE

Consulting actuary with over 40 years of experience with clients in the public and private sectors. Broad range of 

experience in the design, administration and actuarial analysis of employee benefit programs. Dedicated to 

providing high quality, efficient, timely service to clients. Responsible for managing benefits consulting services for 

clients with diverse needs. 

EXPERIENCE 

2018- Fase2 C&W, LLC

President and Consulting Actuary

Provide actuarial consulting services to retirement systems, such as, the City of Miami, City of 

Pompano Beach, Puerto Rico Electric Power Authority and University of Puerto Rico. 

Retirement system consultant coordinating, reviewing and communicating valuation and special 

projects provided by system actuary. Consulting assistance with adequate funding and 

restructuring of retirement system, and special projects. 

2007-2017 Cavanaugh Macdonald Consulting

Principal and Consulting Actuary

Consulting actuary responsible for services provided to state and local governmental retirement 

and employee benefit programs. 

▪ Consulted with clients in the design, financial accounting, administration and funding of 

public retirement and OPEB plans, proposed legislation analysis, experience studies, 

asset liability forecasts and actuarial audits.

▪ Clients included the Virginia Retirement System, University of Puerto Rico Retirement 

System, Employees’ Retirement System of Puerto Rico Electric Power Authority, City of 

Miami General Employees’ and Sanitation Employees’ Retirement Trust and City of 

Hollywood, FL Police Officers’ Retirement System.

1981-2007 Buck Consultants 

Principal and Consulting Actuary

Consulting actuary responsible for managing relationships with corporate and public sector 

clients.

▪ Provided a broad range of actuarial and benefits consulting services for corporate, 

ERISA qualified and public sector domestic and international clients.

▪ Provided consulting services to various corporate clients, several municipal clients in the 

State of Florida and in the Commonwealth of Puerto Rico, and clients in Venezuela.

▪ Managed relationship for one of the company’s top five clients, overseeing the 

coordination and delivery of domestic and international employee benefits consulting 

services, including pension and health actuarial consulting, defined benefit and defined 

contribution plan administration, mergers and acquisitions, communication, legal, and 

compensation.

CREDENTIALS

▪ Associate, Society of Actuaries

▪ Enrolled Actuary under ERISA

▪ Member of the American Academy of Actuaries

EDUCATION

St. Peter’s College, Jersey City, New Jersey - Bachelor of Science, Mathematics

LANGUAGES 

English and Spanish.

Case:17-03283-LTS Doc#:24084-1 Filed:04/28/23 Entered:04/28/23 16:59:48 Desc:

Exhibit EXPERT DECLARATION OF MR. JOSE FERNANDEZ Page 16 of 17
ANNEX II

Case:17-03283-LTS Doc#:24084-1 Filed:04/28/23 Entered:04/28/23 16:59:48 Desc:

Exhibit EXPERT DECLARATION OF MR. JOSE FERNANDEZ Page 17 of 17