Exhibit 6: Page 1 of 12

WESTERN STATES OFFICE AND 

PROFESSIONAL EMPLOYEES PENSION FUND

THIRD SUSPENSION APPLICATION 

Exhibit 6

Western States Office and Professional Employees Pension Fund 

Exhibit 6: Page 3 of 12

INSOLVENCY PROJECTION (MATERIALITY CHECK)1

 

1

 2018 figures as of April 1; all other years as of January 1. Year Beg January 1, 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Return 4.15% 5.81% 6.01% 6.17% 6.31% 6.45% 6.57% 6.69% 6.80% 6.89% 7.47% 7.53% 7.59% 7.64% 7.67% 7.70% 7.73% 7.75% 7.77% 7.79% 7.55% 7.56% 7.57%

Supplemental % 79.6% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%

% Decrease in Hours 0.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

Economic Inputs
Western States Office and Professional Employees Pension Fund 

Exhibit 6: Page 4 of 12

INSOLVENCY PROJECTION (MATERIALITY CHECK)1

 

1

 2018 figures as of April 1; all other years as of January 1. 
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning 4/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022

Plan Year Ending 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022

A. Market Value at Beginning of Year 330,182,699 322,756,425 315,278,434 307,872,747 300,274,861

Income

B. Base Contributions 2,198,622 2,814,236 2,701,667 2,593,600 2,489,856

C. Supplemental/Surcharge Contributions 1,750,161 2,251,389 2,161,333 2,074,880 1,991,885

D. Withdrawal Liability Payments 5,467,861 5,274,679 5,263,188 5,261,171 5,260,105

E. Future Withdrawal Liability Payments - 200,057 394,112 582,346 764,932

F. Total Investment Income 13,273,071 18,011,674 18,179,402 18,199,887 18,126,472

Disbursements

G. Benefit Payments

 (a) Current Actives 408,885 832,672 1,142,386 1,428,094 1,699,217

 (b) Current Inactive Vested 964,617 1,751,575 2,379,263 3,192,532 4,059,290

 (c) Current Retirees/Beneficiaries 27,693,111 32,445,779 31,568,740 30,658,918 29,720,713

 (d) Future New Entrants - - - - -

 (e) Total 29,066,614 35,030,026 35,090,390 35,279,544 35,479,220

H. Administrative expenses 1,049,375 1,000,000 1,015,000 1,030,225 1,045,678

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

 322,756,425 315,278,434 307,872,747 300,274,861 292,383,213

J. Available Resources 

(A+B+C+D+E+F-H)

 351,823,039 350,308,459 342,963,136 335,554,405 327,862,433

K. Solvency Ratio (J / G(e)) 9.08 10.00 9.77 9.51 9.24

L. Accrued Liability 522,387,040 416,285,823 411,006,840 405,248,970 398,845,382

M. Funded Percentage (A / L) 63.21% 77.53% 76.71% 75.97% 75.29%

Exhibit 6: Page 5 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2023 1/1/2024 1/1/2025 1/1/2026 1/1/2027

12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2027

 292,383,213 284,342,949 276,069,811 267,775,675 259,473,503

 2,390,262 2,294,651 2,202,865 2,114,751 2,030,161

 1,912,209 1,835,721 1,762,292 1,691,801 1,624,129

 5,243,215 5,238,616 5,238,616 5,238,616 5,226,650

 942,041 1,113,837 1,280,479 1,442,121 1,598,915

 18,018,328 17,824,039 17,602,817 17,337,014 17,002,398

 1,922,965 2,117,569 2,287,311 2,440,738 2,564,007

 4,806,612 5,621,011 6,252,078 6,864,126 7,543,840

 28,754,128 27,759,983 26,739,104 25,692,661 24,622,419

 1,249 4,157 9,269 19,104 31,687

 35,484,955 35,502,720 35,287,762 35,016,629 34,761,954

 1,061,364 1,077,284 1,093,443 1,109,845 1,126,493

 284,342,949 276,069,811 267,775,675 259,473,503 251,067,309

 319,827,904 311,572,530 303,063,437 294,490,133 285,829,263

 9.01 8.78 8.59 8.41 8.22

 391,739,648 384,083,074 375,824,444 367,162,413 358,127,041

74.64% 74.03% 73.46% 72.93% 72.45%

Exhibit 6: Page 6 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2028 1/1/2029 1/1/2030 1/1/2031 1/1/2032

12/31/2028 12/31/2029 12/31/2030 12/31/2031 12/31/2032

 251,067,309 243,943,583 236,939,149 230,084,553 223,400,254

 1,948,954 1,870,996 1,796,156 1,724,310 1,655,338

 1,559,163 1,496,797 1,436,925 1,379,448 1,324,270

 5,221,098 5,221,098 5,215,936 5,208,331 5,198,803

 1,751,004 1,898,531 2,041,632 2,180,440 2,315,084

 17,822,969 17,448,306 17,075,533 16,685,725 16,260,490

 2,678,870 2,792,597 2,867,228 2,957,161 3,046,199

 8,028,062 8,505,601 9,004,090 9,458,701 9,907,660

 23,530,448 22,419,309 21,292,373 20,153,283 19,006,448

 46,145 62,114 79,139 97,789 117,795

 34,283,524 33,779,622 33,242,829 32,666,935 32,078,103

 1,143,390 1,160,541 1,177,949 1,195,618 1,213,552

 243,943,583 236,939,149 230,084,553 223,400,254 216,862,583

 278,227,107 270,718,771 263,327,382 256,067,189 248,940,686

 8.12 8.01 7.92 7.84 7.76

 348,675,257 339,009,750 329,142,389 319,093,554 308,891,500

72.01% 71.96% 71.99% 72.11% 72.32%

Exhibit 6: Page 7 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2033 1/1/2034 1/1/2035 1/1/2036 1/1/2037

12/31/2033 12/31/2034 12/31/2035 12/31/2036 12/31/2037

 216,862,583 209,814,288 202,505,911 194,862,970 187,286,788

 1,589,124 1,525,559 1,464,537 1,405,955 1,349,717

 1,271,299 1,220,447 1,171,629 1,124,764 1,079,774

 4,456,140 3,860,309 3,258,354 3,010,665 2,147,773

 2,445,688 2,572,374 2,695,260 2,814,459 2,930,082

 15,818,064 15,343,162 14,823,629 14,291,301 13,742,343

 3,121,924 3,167,287 3,204,299 3,249,965 3,286,166

 10,278,536 10,541,152 10,827,944 11,031,841 11,095,194

 17,856,642 16,708,820 15,568,347 14,440,654 13,331,640

 139,752 162,737 186,774 212,845 240,484

 31,396,854 30,579,997 29,787,364 28,935,306 27,953,485

 1,231,756 1,250,232 1,268,986 1,288,020 1,307,341

 209,814,288 202,505,911 194,862,970 187,286,788 179,275,652

 241,211,142 233,085,908 224,650,334 216,222,094 207,229,137

 7.68 7.62 7.54 7.47 7.41

 298,539,384 288,122,915 277,778,744 267,487,770 257,316,154

72.64% 72.82% 72.90% 72.85% 72.78%

Exhibit 6: Page 8 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2038 1/1/2039 1/1/2040 1/1/2041 1/1/2042

12/31/2038 12/31/2039 12/31/2040 12/31/2041 12/31/2042

 179,275,652 169,291,477 159,208,835 149,306,697 139,588,270

 1,295,728 1,243,899 1,194,143 1,146,378 1,100,522

 1,036,583 995,119 955,315 917,102 880,418

 227,947 - - - -

 3,042,237 2,950,970 2,862,440 2,776,567 2,693,270

 12,679,749 11,965,034 11,251,446 10,549,301 9,857,828

 3,298,023 3,315,087 3,303,947 3,299,546 3,296,662

 11,122,614 11,078,917 10,983,109 10,851,562 10,712,820

 12,247,203 11,193,086 10,174,910 9,198,086 8,267,353

 271,628 303,718 336,458 371,017 407,218

 26,939,468 25,890,808 24,798,425 23,720,211 22,684,053

 1,326,951 1,346,855 1,367,058 1,387,564 1,408,377

 169,291,477 159,208,835 149,306,697 139,588,270 130,027,879

 196,230,945 185,099,643 174,105,121 163,308,481 152,711,932

 7.28 7.15 7.02 6.88 6.73

 247,407,721 237,815,583 228,599,215 219,831,790 211,531,765

72.46% 71.19% 69.65% 67.92% 65.99%

Exhibit 6: Page 9 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2043 1/1/2044 1/1/2045 1/1/2046 1/1/2047

12/31/2043 12/31/2044 12/31/2045 12/31/2046 12/31/2047

 130,027,879 120,651,007 111,484,888 102,516,269 93,781,045

 1,056,502 1,014,241 973,672 934,725 897,336

 845,201 811,393 778,937 747,780 717,869

 - - - - -

 2,612,472 2,534,098 2,458,075 2,384,333 2,312,803

 9,177,069 8,509,003 7,854,199 7,213,546 6,588,335

 3,273,279 3,243,123 3,200,434 3,138,630 3,059,217

 10,526,243 10,282,903 10,027,164 9,714,147 9,380,935

 7,386,941 6,560,273 5,790,154 5,078,414 4,426,165

 452,151 497,611 543,040 589,615 637,067

 21,638,613 20,583,909 19,560,792 18,520,807 17,503,383

 1,429,503 1,450,945 1,472,710 1,494,800 1,517,222

 120,651,007 111,484,888 102,516,269 93,781,045 85,276,782

 142,289,620 132,068,797 122,077,061 112,301,853 102,780,166

 6.58 6.42 6.24 6.06 5.87

 203,690,018 196,349,939 189,558,025 183,321,791 177,699,487

63.84% 61.45% 58.81% 55.92% 52.78%

Exhibit 6: Page 10 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2048 1/1/2049 1/1/2050 1/1/2051 1/1/2052

12/31/2048 12/31/2049 12/31/2050 12/31/2051 12/31/2052

 85,276,782 76,759,953 68,441,499 60,294,132 52,319,412

 861,443 826,985 793,905 762,149 731,663

 689,154 661,588 635,124 609,719 585,331

 - - - - -

 2,243,419 2,176,116 2,110,833 2,047,508 1,986,082

 5,773,911 5,180,765 4,599,253 4,023,270 3,463,104

 2,986,335 2,902,015 2,814,459 2,704,110 2,597,114

 9,031,265 8,649,117 8,256,354 7,839,165 7,414,728

 3,833,413 3,299,638 2,823,344 2,402,219 2,033,229

 693,762 750,058 805,799 861,547 917,219

 16,544,775 15,600,828 14,699,956 13,807,041 12,962,290

 1,539,981 1,563,080 1,586,526 1,610,324 1,634,479

 76,759,953 68,441,499 60,294,132 52,319,412 44,488,824

 93,304,728 84,042,327 74,994,088 66,126,453 57,451,114

 5.64 5.39 5.10 4.79 4.43

 172,712,709 168,347,032 164,632,721 161,572,776 159,206,787

49.37% 45.60% 41.57% 37.32% 32.86%

Exhibit 6: Page 11 of 12
Western States Office and Professional Employees Pension Fund

Projected Cash Flow (Materiality Check - Insolvency Projection)

Projection for Plan Years beginning April 1, 2018 through December 31, 2058

Plan Year Beginning

Plan Year Ending

A. Market Value at Beginning of Year

Income

B. Base Contributions

C. Supplemental/Surcharge Contributions

D. Withdrawal Liability Payments

E. Future Withdrawal Liability Payments

F. Total Investment Income

Disbursements

G. Benefit Payments

 (a) Current Actives

 (b) Current Inactive Vested

 (c) Current Retirees/Beneficiaries

 (d) Future New Entrants

 (e) Total

H. Administrative expenses

I. Market Value at End of Year

(A+B+C+D+E+F-G(e)-H)

J. Available Resources 

(A+B+C+D+E+F-H)

K. Solvency Ratio (J / G(e))

L. Accrued Liability

M. Funded Percentage (A / L)

1/1/2053 1/1/2054 1/1/2055 1/1/2056 1/1/2057 1/1/2058

12/31/2053 12/31/2054 12/31/2055 12/31/2056 12/31/2057 12/31/2058

 44,488,824 36,766,812 29,129,921 21,549,871 13,993,119 6,415,618

 702,397 674,301 647,329 621,436 596,578 572,715

 561,917 539,441 517,863 497,149 477,263 458,172

 - - - - - -

 1,926,500 1,868,705 1,812,644 1,758,264 1,705,517 1,654,351

 2,906,744 2,360,376 1,815,315 1,274,778 731,976 186,504

 2,486,038 2,369,550 2,250,984 2,134,538 2,016,586 1,896,370

 6,977,802 6,539,707 6,097,736 5,659,170 5,227,545 4,805,808

 1,712,926 1,437,590 1,203,144 1,005,319 839,812 702,440

 983,806 1,048,985 1,112,198 1,174,575 1,244,093 1,311,096

 12,160,573 11,395,832 10,664,061 9,973,602 9,328,035 8,715,714

 1,658,996 1,683,881 1,709,140 1,734,777 1,760,798 1,787,210

 36,766,812 29,129,921 21,549,871 13,993,119 6,415,618 (1,215,564)

 48,927,385 40,525,753 32,213,933 23,966,721 15,743,654 7,500,150

 4.02 3.56 3.02 2.40 1.69 0.86

 157,535,536 156,565,160 156,308,508 156,783,492 158,000,671 159,967,643

28.24% 23.48% 18.64% 13.74% 8.86% 4.01%

Exhibit 6: Page 12 of 12