United States Department of the Treasury 

District of Columbia Pensions Program

Actuarial Valuation Report

Valuation Date: October 1, 2020

Measurement Date: September 30, 2020

Report Date: October 27, 2020

Prepared by Deloitte Consulting LLP
Table of Contents

Executive Summary......................................................................................................... 1

Highlights of the Actuarial Valuation.........................................................................................................

Actuarial Valuation Opinion........................................................................................................................

Summary of Results.......................................................................................................................................

1

8

9

Assessment of Risk.........................................................................................................11

Significant Risks.............................................................................................................................................

Plan Maturity Measures.................................................................................................................................

Additional Historical Information...............................................................................................................

11

13

14

Plan Cost........................................................................................................................ 19

Amortization Schedule and Required Government Contribution...................................................... 19

Changes in Actuarial Accrued Liability........................................................................... 21

Reconciliation of Actuarial (Gain)/Loss...................................................................................................

Summary of Changes in Assumptions and Methods..............................................................................

21

21

Asset Information......................................................................................................... 22

Statement of Changes in Net Plan Assets................................................................................................ 22

Benefit Payments and Funding Projections.................................................................. 23

Benefit Payment Projections........................................................................................................................

District Benefit Payments...........................................................................................................................

15-Year Funding Projections........................................................................................................................

23

29

30

Basis for the Valuation................................................................................................... 32

Plan Member Summary.................................................................................................................................

Plan Member Reconciliation........................................................................................................................

32

34

Age-Service Grid.............................................................................................................................................

Federal Allocation by Plan...........................................................................................................................

Plan Member Counts....................................................................................................................................

37

41

42

Inactive Benefit Information........................................................................................................................ 43

Appendix A: Actuarial Assumptions and Methods.........................................................

Appendix B: Rationale...................................................................................................

Appendix C: Plan Provisions Summary...........................................................................

53

61

64
Executive Summary

Highlights of the Actuarial Valuation 

The actuarial valuation report has been completed for the following program for the most recent plan year:

United States Department of the Treasury District of Columbia Pensions Program (Program)

The Program refers to the federal responsibility for benefit payments under the following District of Columbia 

(D.C.) retirement plans: District of Columbia Police Officers and Firefighters' Retirement Plan, District of 

Columbia Teachers' Retirement Plan, and District of Columbia Judges' Retirement Plan. The designated assets 

for the federal administration of these plans are held in two separate funds. The District of Columbia Teachers, 

Police Officers and Firefighters Federal Pension Fund (“D.C. Federal Pension Fund”) covers federal payments 

under the District of Columbia Police Officers and Firefighters' Retirement Plan and District of Columbia 

Teachers' Retirement Plan. The Judicial Retirement and Survivors Annuity Fund (“Judicial Retirement Fund”) 

covers payments under the District of Columbia Judges' Retirement Plan. 

The purpose of this report is to present the results of the actuarial valuation including:

● To illustrate the current assets and liabilities of each Plan as of the end of Fiscal Year (FY) 2020

(October 1, 2019 through September 30, 2020);

● To review the experience of the Program over the past year and to discuss reasons for changes in

Program costs;

● To determine the appropriate contribution to be paid by the Department of the Treasury to the Funds in

FY 2021 (October 1, 2020 through September 30, 2021); and

● To identify and discuss any emerging trends in Program costs.

This report also includes certain statement line items and footnote disclosures necessary to compute the 

annual pension expense in accordance with Statement of Federal Financial Accounting Standards No. 5, 

Accounting for Liabilities of the Federal Government, and No. 33, Pensions, Other Retirement Benefits, and 

Other Postemployment Benefits: Reporting the Gains and Losses from Changes in Assumptions and Selecting 

Discount Rates and Valuation Dates (SFFAS 5 and SFFAS 33). Use of the valuation results for other purposes 

may not be appropriate.

Summary of Results

Police Officers and 

As of October 1, 2020 Firefighters', and Judges' Plan

Teachers' Plans

Actuarial Accrued Liability $ 8,050,546,961 $ 267,876,951

Plan Assets

Unfunded Actuarial Accrued Liability

(3,870,858,529)

$ 4,179,688,432

 (182,824,303)

$ 85,052,648

Normal Cost with Interest (including 

employee contributions)

expected N/A $ 6,400,000

1
Executive Summary

Highlights of the Actuarial Valuation 

Summary of Gains and Losses

As part of the review of the valuation, an actuarial gain/loss analysis was performed. Expected liabilities and 

plan assets were developed presuming all demographic and economic assumptions from the prior valuation 

were realized during the plan year. These expected values were then compared to the actual results. The 

factors causing the liabilities or assets to be greater than expected (a loss for liabilities and a gain for assets), 

or smaller than expected (a gain for liabilities and a loss for assets) were isolated. Differences in liability not 

directly attributable to experience different than assumed, such as changes in assumptions and methods, were 

separately measured from this process. 

The different sources of gains and losses, as well as their individual impacts, are outlined below. 

Source of Liability (Gain)/Loss due to Actuarial Experience 

Police Officers and 

Source of Demographic (Gain)/Loss Firefighters', and Judges' Plan

Teachers' Plans

(Gains)/Losses due to Plan Experience:

Active Decrements $ (12,427,477) $ (1,504,082)

Inactive Mortality (26,634,555) 3,057,653

Salary Increase (1,842,830) 1,183,894

New Entrants N/A 437,739

Cost-of-Living Adjustment 

Different than Expected

(COLA) 33,714,083 249,451

(Gains)/Losses due to Census Changes: 52,317,451 1,166,822

(Gains)/Losses due to New Terminated Vested 

Plan Members: 3,390,631 N/A 

Total $ 48,517,303 $ 4,591,477

We have provided clarification on these items below:

• (Gains)/Losses due to Plan Experience: The liability for each plan is expected to change based on

certain demographic and economic assumptions; however, actual plan experience will differ to some

degree. This creates (gains) or losses due to plan experience being different than expected with

these assumptions. This includes the following primary factors:

• Active Decrements: The actuarial valuation assumes that each active plan member has

a particular probability of terminating, retiring, becoming disabled, or becoming deceased in each

year. An individual (gain) or loss is generated based on the plan member's actual status in the

current valuation year based on the difference from what was expected. The gain for the Police Officers

and Firefighters' and Teachers' Plans is primarily due to a group of new retirees who turned 50

since the prior valuation. The assumption in effect for the measurement of (gain)/loss assumed

that an individual who leaves the population prior to attaining age 50 is a termination, causing

a gain to be incurred in the active decrements category. The individuals' retirement loss is

categorized as "other census changes" resulting in the correct calculation of the liability overall,

despite the categorization of the individual pieces. For the Judges' Plan, fewer active members retired

than were expected, resulting in a gain.

2
Executive Summary

Highlights of the Actuarial Valuation 

• Inactive Mortality: The actuarial valuation assumes that each inactive plan member has

a particular probability of becoming deceased in each year. An individual (gain) or loss is generated

based on whether the plan member actually dies during the year. The gain shown for the

Police Officers and Firefighters' and Teachers' Plans is driven by plan members in pay status dying at an

earlier age or in greater number than expected in the past year. For the Judges' Plan there was

only one death since the prior year, in contrast with the remaining population of older retirees

and survivors who survived despite higher probabilities of death. Smaller populations are expected

to experience larger deviations from expected year-over-year than a larger population, as individual

deaths or survivorship have a more significant relative impact on the liability than in a larger

population. Long-term gains and losses are expected to offset each other with experience aligning to

the assumed mortality probabilities.

• Salary Increase: The actuarial valuation assumes that salaries for active plan members

will increase by a certain amount. An individual (gain) or loss is generated for each plan member

based on their actual salary amount reported in the current valuation. A gain is reported when

a plan member's actual salary is lower than the expected amount, and a loss is reported when a

plan member's actual salary is higher than the expected amount.

• New Entrants: The actuarial valuation incurs a loss whenever new members enter the plan with

past service. The Police Officers and Firefighters' and Teachers' Plans are closed and will never incur

a gain or loss due to this reason. The Judges' Plan reports a small loss due to the new plan members

with past service.

• COLA Different Than Expected: The actuarial valuation assumes that retirement

benefits for inactive plan members that are receiving benefits will increase by a certain amount.

An individual (gain) or loss is generated for each plan member based on their actual benefit

amount reported in the current valuation. The Police Officers and Firefighters' and Teachers' Plans had

a loss primarily due to higher actual COLA percentages than expected. Note that the

Police Officers and Firefighters' Plan members who retired prior to February 15, 1980 received

retroactive pay increases, however, only the difference between the expected COLA and the actual

COLA for 2020 have been included here. The remaining loss due to the retroactive increase for

those who retired prior to February 15, 1980 is included in the $4.3 million loss for

continuing inactive plan members as discussed in the (Gains)/Losses due to Census Changes

section below. The Judges' Plan had a loss due to higher COLA than expected.

3
Executive Summary

Highlights of the Actuarial Valuation 

• (Gains)/Losses due to Census Changes: Each year, ODCP prepares the census data that will be used as

the basis for the annual valuation. Inevitably, there will be updates to the census data beyond those that we

would expect due to the passage of time. This category of (gain)/loss is described in more detail below.

For the Police Officers and Firefighters' and Teachers' Plans, the net loss amount was $52.3 million and 

includes the following: 

• A $19.1 million loss resulting from new beneficiaries following the death of plan members for

whom the chosen form of payment was unknown.

• An $11.8 million net loss resulting from ongoing data management, including unexpected changes

to data fields such as hire date, salary, service, etc.

• An $11.2 million loss resulting from active plan members who retired or terminated within the past

year, primarily due to benefits calculated at retirement different than previously estimated or those

who were not eligible to begin benefits in the prior valuation.

• A $4.3 million loss resulting from data updates for continuing inactive plan members, primarily due

to correction of benefit amounts and retirement dates in the census data. In addition, the loss due to the

retroactive portion of the COLA increase for plan members in the Police Officers and Firefighters' Plan

who retired before February 15, 1980 is included in this loss.

• A $5.7 million loss resulting from beneficiaries found when previously reported as "no

future benefits due" in the prior valuation year and from finding new plan members due to data

clean-up.

• A $0.2 million loss resulting from rehires.

For the Judges' Plan, the total loss amount includes the following: 

• A $1.2 million loss resulting from active plan members who retired or terminated

within the past year, primarily due to benefits calculated at retirement different than previously

estimated.

• (Gains)/Losses due to New Terminated Vested Plan Members: There were 45 new terminated vested

plan members discovered as a result of a data clean-up initiative performed by the program. This caused a

$3.4 million loss to the Police Officers and Firefighters' and Teachers' Plans.

4
Executive Summary

Highlights of the Actuarial Valuation 

Source of Asset (Gain)/Loss due to Actuarial Experience 

Asset (Gain)/Loss

Beginning of Year Assets

Expected Return on Assets

Actual Return on Assets

Asset (Gain)/Loss

D.C. Federal Pension

Fund

$ 3,822,592,727

 26,209,824

 66,868,543

$ (40,658,719)

Judicial Retirement Fund

$ 177,213,402

5,310,395

3,654,359

$ 1,656,036

The plan assets experienced the following rates of return during the prior plan year:

D.C. Federal Pension

Fund Judicial Retirement Fund

Assets 1.75% 2.05%

As noted on page 55 of this report in the Interest Rates for (Gain)/Loss section, the expected return on assets 

for the Judicial Retirement Fund is based on the prior year effective interest rate of 3.12% while the D.C. 

Federal Pension Fund's expected return on assets is based on the first rate on the prior year's yield curve, 

0.74%. The Judicial Retirement Fund experienced a lower-than-anticipated return of 2.05% on fund assets and 

the D.C. Federal Pension Fund experienced a higher-than-anticipated return of 1.75% on fund assets, thus 

resulting in an asset loss and an asset gain, respectively. 

Changes in Plan Provisions from the Previous Valuation

The valuation for the current plan year was based on the same plan provisions as the valuation for the prior 

plan year. We are not aware of any other changes to the plans since the last valuation. 

A full summary of the plan provisions and plan changes for each plan (if any) can be found later in this report 

in Appendix C: Plan Provisions Summary.

5
Executive Summary

Highlights of the Actuarial Valuation 

Source of Liability (Gain)/Loss due to Changes in Actuarial Assumptions from the 

Previous Valuation

Police Officers and 

Assumption Change Firefighters', and Judges' Plan

Teachers' Plans

Discount Rate Assumption $ 376,652,534 $ 5,978,103

Other Economic Assumptions (40,391,580) 4,505,228

Non-Economic Assumptions (42,587,750) (1,460,995)

Total $ 293,673,204 $ 9,022,336

The discount rate assumption was updated according to prescribed guidance. The Effective Interest Rate (EIR) 

for all plans decreased, causing a loss. 

The other economic assumptions changed for this valuation were the cost-of-living adjustment (COLA) for 

annuitants and the salary increase assumption for active plan members. Due to the plans' composition of 

primarily inactive plan members, the COLA assumption is the primary driver in the calculation of liabilities due 

to other economic assumptions. A detailed description of the changes since prior year is available in Appendix 

A: Actuarial Assumptions and Methods.

For the Police Officers and Firefighters', and Teachers' Plans, and the Judges' Plan, the updated mortality 

projection scale to MP2019 was the only impact for non-economic assumptions. A complete description of the 

actuarial assumptions and rationale can be found in Appendix A: Actuarial Assumptions and Methods and 

Appendix B: Rationale.

6
Executive Summary

Highlights of the Actuarial Valuation 

Government Contributions

This report includes a calculation of the Government Contribution required to be made before the end of 

FY 2021 (excluding the reimbursement for expenses). The table below contains Government Contribution 

(excluding expenses) for FY 2020 and FY 2021.

Government Contribution 

(excluding expenses)

Contribution Year

D.C. Federal Pension Fund Judiciary Retirement Fund

September 30, 2020 $ 520,300,000 $ 15,500,000 

September 30, 2021 $ 558,700,000 $ 18,300,000 

The increase in the Government Contribution amounts from FY2020 to FY2021 is explained in the table below. 

7

Police Officers and 

Firefighters', and Judges' Plan

Teachers' Plans

Full amortization of the 10/1/2000 Assumption 

change (gain)/loss $ 22,200,000 $ 600,000

Full amortization of the 10/1/2010 Experience 

(gain)/loss $ 3,300,000 $ (100,000)

New amortization base for the 10/1/2020 

Experience (gain)/loss 900,000 700,000

New amortization base for the 10/1/2020 

Assumption change (gain)/loss 12,000,000 600,000

Normal Cost change - 1,100,000

Employee Contribution change

Total

-

$ 38,400,000

(100,000)

$ 2,800,000
Executive Summary

Actuarial Valuation Opinion

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 operations of the methodology used for these

measurements (such as the end of an amortization period or additional cost or contribution

requirements based on each plan's funded status); and

● Changes in plan provisions or applicable law.

Our scope did not include analyzing the potential range of such future measurements; therefore, this analysis 

was not performed.

The undersigned with actuarial credentials collectively meet the Qualification Standards of the American 

Academy of Actuaries to render the actuarial opinions contained herein.

This report was prepared solely for the benefit and internal use of the Department of the Treasury. This 

report is not intended for the benefit of any other party and may not be relied upon by any third party for any 

purpose, and Deloitte Consulting LLP accepts no responsibility or liability with respect to any party other than 

the Department of the Treasury.

To the best of our knowledge, no employee of the Deloitte U.S. Firms is an officer or director of the employer. 

In addition, we are not aware of any relationship between the Deloitte U.S. Firms and the employer that may 

impair or appear to impair the objectivity of the work detailed in this report.

This report presents the results of the actuarial valuation of the Program as of October 1, 2020. In our 

opinion, this report is complete and accurate and represents fairly the actuarial position of the Program for 

the purposes stated herein.

This actuarial valuation has been prepared based upon plan member data and plan provisions provided by the 

Department of the Treasury as of May 1, 2020 (plan data was projected to September 30, 2020 by adjusting 

for expected mortality for inactive plan members) and the estimated asset information projected by the 

Department of the Treasury to September 30, 2020 (provided on July 29, 2019).

We have reviewed the data and other information provided for reasonableness, but have not independently 

audited the data or other information provided. We have no reason to believe the data and other information 

provided are not complete and accurate, and know of no further information that is essential to the 

preparation of the actuarial valuation.

In our opinion, all costs, liabilities, rates of interest, and other factors underlying these actuarial computations 

have been determined on the basis of actuarial assumptions and methods. Each are reasonable (or consistent 

with authoritative guidance) for the purposes described herein taking into account the experience of the plans 

and future expectations. Rates of interest used in this valuation are provided by ODCP and are consistent with 

authoritative guidance. All other assumptions are reasonable for the purposes described herein.

DELOITTE CONSULTING LLP

Jeffrey Rees, FSA, MAAA, FCA

Enrolled Actuary No. 20-05941

October 27, 2020

Michael de Leon, ASA, MAAA, FCA

Enrolled Actuary No. 20-06450

October 27, 2020

8
Executive Summary

Summary of Results

Police Officers and Firefighters', and Teachers' Plans

Valuation Date

 

October 1, 2020 October 1, 2019

Plan Member Counts

Actives 1,024 1,307

Terminated Vested 244 204

Annuitants 13,345 13,440

Total 14,613 14,951

Contributions

Federal Required Contribution $ 558,700,000 $ 520,300,000

Present Value of Benefits (PVB)

Active Plan Members

Retirement Decrement $ 358,866,503 $ 467,942,026

Termination Decrement - -

Disability Decrement 1,168,243 1,666,607

Death Decrement 494,825 678,418

Total $ 360,529,571 $ 470,287,051

Inactive Plan Members

Normal 1 Retirees $ 6,195,482,251 $ 6,224,919,047

Terminated Vested 37,732,770 34,993,537

1 Disabled Retirees 690,435,989 717,875,525

Beneficiaries 766,366,380 740,581,913

Total $ 7,690,017,390 $ 7,718,370,022

Total PVB (inactive and active) $ 8,050,546,961 $ 8,188,657,073

Unfunded Actuarial Accrued Liability (AAL)

Active AAL $ 360,529,571 $ 470,287,051

Inactive AAL 7,690,017,390 7,718,370,022

Total AAL $ 8,050,546,961 $ 8,188,657,073

Asset Value as of Valuation Date $ (3,870,858,529) $ (3,822,592,727)

Unfunded AAL $ 4,179,688,432 $ 4,366,064,346 

1

Throughout this report, former spouses receiving benefits under a qualified domestic relations order are not included in 

counts. Their benefit amounts are included with their associated retired plan member.

9
Executive Summary

Summary of Results

Judges' Plan

Valuation Date

October 1, 2020 October 1, 2019

Plan Member Counts

Actives 61 59

Terminated Vested - -

Annuitants 101 96

Total 162 155

Contributions

Government Contribution (excluding expenses) $ 18,300,000 $ 15,500,000

Present Value of Benefits (PVB)

Active Plan Members

Retirement Decrement $ 136,533,697 $ 122,282,090

Termination Decrement - -

Disability Decrement - -

Death Decrement 733,431 561,503

Total $ 137,267,128 $ 122,843,593

Inactive Plan Members

1 Normal Retirees $ 173,986,119 $ 162,493,045

Terminated Vested - -

1 Disabled Retirees 2,052,526 2,119,211

Beneficiaries 9,566,351 8,959,664

Total $ 185,604,996 $ 173,571,920

Total PVB (inactive and active) $ 322,872,124 $ 296,415,513

Unfunded Actuarial Accrued Liability (AAL)

Active AAL $ 82,271,955 $ 81,844,013

Inactive AAL 185,604,996 173,571,920

Total AAL $ 267,876,951 $ 255,415,933

Asset Value as of Valuation Date $ (182,824,303) $ (177,213,402)

Unfunded AAL $ 85,052,648 $ 78,202,531

Total Normal Cost $ 6,400,000 $ 5,300,000

Employee Contributions (600,000) (500,000)

Net Employer Normal Cost $ 5,800,000 $ 4,800,000

1

Throughout this report, former spouses receiving benefits under a qualified domestic relations order are not included in 

counts. Their benefit amounts are included with their associated retired plan member.

10
Assessment of Risk

Risk can be defined as the potential of actual future measurements deviating from expected future measurements resulting 

from actual future experience deviating from actuarially assumed experience. This section is intended to comply with the 

requirements of Actuarial Standard of Practice (ASOP) No. 51, Assessment and Disclosure of Risk Associated with Measuring 

Pension Obligations and Determining Pension Plan Contributions. 

Measuring pension obligations and calculating actuarially determined contributions require the use of assumptions regarding 

future economic and demographic experience. However, an intended user of such measurements should understand the 

effects of future experience differing from the assumptions used in the actuarial valuation and the potential volatility of future 

measurements resulting from such differences. 

Methods used in the assessment of risk may include, but are not limited to scenario tests, sensitivity tests, stochastic 

modeling, stress tests, and a comparison of an actuarial present value using a discount rate derived from minimal-risk 

investments to a corresponding actuarial present value from the actuarial valuation. 

A more detailed assessment than what is presented below may be beneficial to understand the risks identified. The factors 

that are considered in making this judgement include risk assessment findings, length of time and changes in plan 

circumstances since the last assessment, absolute or relative size of the plan, maturity of the plan, funded status, asset 

allocation, method for determining contributions, or contribution risk (to the extent known by the actuary). 

Following is a discussion of the risks that, in our professional judgement, may be anticipated to significantly affect the 

Program's future financial condition.

For purposes of this section, pension obligations refer to Actuarially Accrued Liability and costs refer to Total Required 

Government Contribution. 

Significant Risks

Longevity Risk

The potential that mortality experience will be different than expected. 

Annuity based plans such as the Police Officers and Firefighters', and Teachers' Plans and the Judges' Plan are subject to 

longevity risk. Failing to project longevity improvements or to under-project them understates the value of the plan over time. 

This is particularly acute for plans also subject to a COLA.

Investment Risk 

The potential that investment returns will be different than expected. 

To the extent that ODCP's investment policy results in more or less cash than expected, there may be a decrease or increase, 

respectively, in future cost requirements. Due to the makeup of ODCP's portfolio of assets consisting mainly of government 

treasury bonds, if yields behave differently than expected then the asset returns under the Program could be different than 

expected causing contribution requirements to increase or decrease.

Interest Rate Risk

The potential that interest rates will be different than expected. As interest rates decrease, the present value of future benefit 

obligations increases. The magnitude of this risk depends on the Plan's effective duration, maturity, population composition, 

and benefit structure.

All ODCP plans use the full yield curve derived at the time of the valuation by averaging the quarterly treasury rate over 40 

quarters (as published by the Department of the Treasury). A decrease in the yield curve could cause the cost of the plans to 

increase, while also resulting in an increase in the costs of the bonds to be purchased, thus lowering their return. 

Below, we have listed a number of anticipated risks that may affect pension plans in general. We have identified potential 

risks that pertain to ODCP specifically and listed them in order of significance. We have defined "significant risks" as factors 

that could impact costs or liabilities. Additionally, we have identified any risks that, although they may be relevant to pension 

plans in general, are not applicable for ODCP.

Cost-of-Living-Adjustment (COLA) Risk

The potential that annual COLA applied to participants' benefits will deviate from expected increases.

The Police Officers and Firefighters', and Teachers' Plans and the Judges' Plan predominantly consist of participants already 

receiving annuities subject to a cost of living adjustment. The risk of actual COLA deviating from expected increases, in 

conjunction with the Program's maturity, is a significant risk for ODCP. 

11
Assessment of Risk

Asset/Liability Mismatch Risk

The potential that changes in asset values are not matched by changes in the value of liabilities.

The inability to match asset and liability cash flows due to the limited nature of the available durations of Treasury Bonds 

could introduce risk to the Funds, depending on the deployment of the Program's Investment Policy.

Data Quality Risk

The potential that the data quality interferes with the ability to develop an accurate estimate of liabilities. 

ODCP has implemented many data control processes and procedures to ensure the integrity and quality of their data. Even so, 

unexpected data breaches or unexpected data changes could have a negative financial impact on the Program. 

Legislative and Regulatory Risk

The potential that future legislative or regulatory change could impact the calculation of the obligations and costs of the 

Program.

Unexpected regulatory rules or new laws could result in reassessing the valuation methods described in this report and could 

have an impact on the Program. Costs caused by any unexpected regulatory or law change could also pose a potential risk to 

the Program. 

Liquidity Risk

The potential inability to cover short term costs resulting in a quicker than anticipated liquidation of assets.

An unexpected increase in short term benefit obligations could result in a reassessment of ODCP's current investment policy in 

order to decrease the impact caused by liquidity risk. However, ODCP's current investment policy serves to minimize this 

occurrence, thereby making this risk less prevalent. 

The remaining risks noted below have the potential to impact pension plans in general, however, we concluded 

that they are not pertinent to the ODCP plans at this time.

Salary Scale Risk

The potential that actual future salary increases deviate from expected future salary increases. 

Because the Program consists of predominately inactive plan members, the risks associated with an unexpected increase in 

active plan members' salaries will have minimal impact on the Program. 

Other Demographic Risk

The potential that other demographic experiences will be different than expected. 

An unexpected change in assumptions including retirement rates, disability incidence rates, or elected forms of benefit could 

result in an increase to costs. However, because the Program consists of predominantly inactive plan members, this risk is 

expected to have minimal impact.

Workforce Risk

The potential that the size and characteristics of the Program's workforce will be different than expected.

For the Police Officers and Firefighters’, and Teachers’ Plans, active plan members were hired prior to July 1, 1997. Given 

that these plan members are either retirement eligible or nearly retirement eligible, there is minimal risk that the workforce 

size or characteristics will deviate from expectation in a way that would introduce significant risk to the plan. While the 

Judges' Plan is still open and accruing, the workforce is relatively stable in nature, and therefore provides minimal risk overall 

to the Program. 

Contribution Risk

The potential that actual future required contributions will deviate from expected future contributions.

The Program is statutorily funded, thereby eliminating risk associated with future required contributions deviating from 

expected contributions. 
Assessment of Risk

Plan Maturity Measures

As a plan shifts from a young, active population accruing benefits to older retirees, pension obligations and costs may increase 

until the plan approaches fully inactive, after which time the liability will start to decrease. Both the Judges' Plan and the 

Police Officers and Firefighters', and Teachers' Plans have significantly more inactive liability than active liability and thus, are 

considered to have mature to very mature populations.

The tables below detail several plan maturity measures that are significant in understanding the risks associated with the 

Program. As a plan becomes more mature, obligation grows relative to plan assets. Once the plan is mature, the obligation 

will stay stable or decrease relative to the plan assets. Depending on the value of the measure, different approaches to asset 

and liability management may be appropriate. It is important to consider these measures in the context of the plans' 

provisions and features. 

The following table shows a comparison of Active Participant Liability to Inactive Participant Liability for the current and prior 

years. 

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan

9/30/2020 4.69% 44.33%

9/30/2019 6.09% 47.15%

9/30/2018 6.75% 48.91%

9/30/2017 8.17% 50.92%

9/30/2016 9.63% 55.65%

9/30/2015 11.83% 57.09%

9/30/2014 12.71% 50.49%

9/30/2013 13.88% 51.73%

9/30/2012 12.98% 45.81%

9/30/2011 Data not available Data not available

The following table shows a comparison of Active Participant Headcount to Inactive Participant Headcount for 

the current and prior years.1

Ratio of Active to Inactive Participant Headcount

Year Police Fire Teacher Subtotal Judges Total

5/1/2020 6.96% 15.39% 5.43% 7.54% 60.40% 7.93%

5/1/2019 9.84% 18.55% 6.23% 9.58% 61.46% 9.94%

5/1/2018 12.22% 21.03% 7.01% 11.26% 64.89% 11.62%

5/1/2017 15.17% 23.60% 8.24% 13.38% 69.57% 13.75%

5/1/2016 19.12% 26.27% 9.91% 16.16% 73.63% 16.54%

5/31/2015 24.66% 28.76% 11.71% 19.56% 76.14% 19.92%

5/31/2014 28.57% 30.09% 13.19% 21.95% 76.40% 22.31%

5/31/2013 31.03% 32.41% 15.68% 24.38% 79.78% 24.75%

6/30/2012 32.65% 34.97% 18.66% 26.76% 74.73% 27.08%

6/30/2011 35.08% 38.20% 21.76% 29.57% 72.73% 29.86%

1

For years prior to 5/1/2017, Vested Terminated Participants were not included in the inactive participant headcount.

13
Assessment of Risk

Additional Historical Information

The tables and charts below identify and disclose reasonably available relative historical values of the Program's actuarial 

measurements that, in the actuary's professional judgement, are significant to understanding the risks of the Program. 

Benefit Breakdown by Annuitant Type

The following table shows a summary of the number of plan participants receiving a full or partial federal benefit1

 for the 

current and prior years (Retirees, Beneficiaries, Disableds). 

Year Police Firefighters Teachers Subtotal Judges Total

5/1/2020 6,066 1,925 5,354 13,345 101 13,446

5/1/2019 5,992 1,927 5,521 13,440 96 13,536

5/1/2018 5,956 1,928 5,656 13,540 94 13,634

5/1/2017 5,890 1,918 5,734 13,542 92 13,634

5/1/2016 5,806 1,911 5,842 13,559 91 13,650

5/31/2015 5,605 1,909 5,884 13,398 88 13,486

5/31/2014 5,527 1,931 5,965 13,423 89 13,512

5/31/2013 5,501 1,922 5,975 13,398 89 13,487

6/30/2012 5,489 1,916 5,937 13,342 91 13,433

6/30/2011 5,470 1,898 5,952 13,320 88 13,408

1

Includes annuitants with a deferred federal benefit.

The following table shows a summary of the number of plan participants receiving a full federal benefit for the current and 

prior years (Retirees, Beneficiaries, Disableds). 

Year Police Firefighters Teachers Subtotal Judges Total

5/1/2020 3,505 1,104 1,756 6,365 101 6,466

5/1/2019 3,591 1,161 1,913 6,665 96 6,761

5/1/2018 3,683 1,206 2,071 6,960 94 7,054

5/1/2017 3,781 1,246 2,197 7,224 92 7,316

5/1/2016 3,881 1,289 2,343 7,513 91 7,604

5/31/2015 3,952 1,323 2,457 7,732 88 7,820

5/31/2014 4,047 1,372 2,626 8,045 89 8,134

5/31/2013 4,134 1,403 2,748 8,285 89 8,374

6/30/2012 4,206 1,445 2,844 8,495 91 8,586

6/30/2011 4,274 1,472 2,990 8,736 88 8,824

The following table shows a summary of the number of plan participants receiving a federal benefit and a District split benefit2

for the current and prior years (Retirees, Beneficiaries, Disableds). 

Year Police Firefighters Teachers Subtotal 3 Judges Total

5/1/2020 2,561 821 3,598 6,980 N/A 6,980

5/1/2019 2,401 766 3,608 6,775 N/A 6,775

5/1/2018 2,273 722 3,585 6,580 N/A 6,580

5/1/2017 2,109 672 3,537 6,318 N/A 6,318

5/1/2016 1,925 622 3,499 6,046 N/A 6,046

5/31/2015 1,653 586 3,427 5,666 N/A 5,666

5/31/2014 1,480 559 3,339 5,378 N/A 5,378

5/31/2013 1,367 519 3,227 5,113 N/A 5,113

6/30/2012 1,283 471 3,093 4,847 N/A 4,847

6/30/2011 1,196 426 2,962 4,584 N/A 4,584

2

Includes annuitants with a deferred federal benefit.

3

These annuitants receive a 100% federal benefit.

14
Assessment of Risk

Assets

The following table shows the Market Value of Assets1

 ($ millions) in each plan for the current and prior years. 

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

9/30/2020 $3,870.9 $182.8 $4,053.7

9/30/2019 $3,822.6 $177.2 $3,999.8

9/30/2018 $3,818.5 $170.1 $3,988.6

9/30/2017 $3,851.9 $162.7 $4,014.6

9/30/2016 $3,902.3 $156.1 $4,058.4

9/30/2015 $3,959.3 $150.4 $4,109.7

9/30/2014 $3,975.9 $146.5 $4,122.4

9/30/2013 $4,001.8 $143.9 $4,145.7

9/30/2012 $3,959.4 $140.9 $4,100.3

9/30/2011 $3,918.6 $137.5 $4,056.1

1

Securities are valued at amortized cost, not market value.

Liabilities

The following table shows the Accrued Liability ($ millions) in each plan for the current and prior years. 

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

9/30/2020 $8,050.5 $267.9 $8,318.4

9/30/2019 $8,188.7 $255.4 $8,444.1

9/30/2018 $8,163.0 $255.6 $8,418.6

9/30/2017 $8,479.5 $248.1 $8,727.6

9/30/2016 $8,650.3 $231.5 $8,881.8

9/30/2015 $8,687.6 $219.4 $8,907.0

9/30/2014 $9,046.8 $218.4 $9,265.2

9/30/2013 $9,137.5 $190.9 $9,328.4

9/30/2012 $9,077.8 $186.3 $9,264.1

9/30/2011 Data not available Data not available Data not available

The following table shows the Unfunded Liability ($ millions) in each plan for the current and prior years. 

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

9/30/2020 $4,179.7 $85.1 $4,264.8

9/30/2019 $4,366.1 $78.2 $4,444.3

9/30/2018 $4,344.5 $85.5 $4,430.0

9/30/2017 $4,627.6 $85.4 $4,713.0

9/30/2016 $4,748.1 $75.4 $4,823.5

9/30/2015 $4,728.4 $69.0 $4,797.4

9/30/2014 $5,070.9 $71.9 $5,142.8

9/30/2013 $5,135.6 $46.9 $5,182.5

9/30/2012 $5,955.9 $56.4 $6,012.3

9/30/2011 Data not available Data not available Data not available

15
Assessment of Risk

Funded Ratio

The following table shows the ratio of the Market Value of Assets to the Actuarial Accrued Liability.

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

9/30/2020 48.1% 68.2% 48.7%

9/30/2019 46.7% 69.4% 47.4%

9/30/2018 46.8% 66.5% 47.4%

9/30/2017 45.4% 65.6% 46.0%

9/30/2016 45.1% 67.4% 45.7%

9/30/2015 45.6% 68.6% 46.1%

9/30/2014 43.9% 67.1% 44.5%

9/30/2013 43.8% 75.4% 44.4%

9/30/2012 43.6% 75.6% 44.3%

9/30/2011 Data not available Data not available Data not available

Contributions

The following table shows the amount of the total required government contributions ($ millions) to each fund for the current 

and prior years1

.

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

FY 2021 $558.7 $18.3 $577.0

FY 2020 $520.3 $15.5 $535.8

FY 2019 $477.6 $16.1 $493.7

FY 2018 $451.8 $15.6 $467.4

FY 2017 $452.2 $15.6 $467.8

FY 2016 $460.9 $14.2 $475.1

FY 2015 $487.5 $14.2 $501.7

FY 2014 $467.3 $10.5 $477.8

FY 2013 $495.9 $ 9.4 $505.3

FY 2012 $482.4 $ 9.6 $492.0

1

Payments for FY2018 and after are before administrative expenses for all plans.

Distribution of Benefit Payments

The following table shows the amount of federal benefit payments and refunds paid ($ millions) to each plan 

for the current and prior years.

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

FY 2020 $538.9 $14.2 $553.1

FY 2019 $543.3 $13.3 $556.6

FY 2018 $541.1 $12.5 $553.6

FY 2017 $541.4 $12.2 $553.6

FY 2016 $542.4 $11.8 $554.2

FY 2015 $541.7 $14.1 $555.8

FY 2014 $542.9 $11.9 $554.8

FY 2013 $537.2 $10.2 $547.4

FY 2012 $532.9 $10.0 $542.9

FY 2011 $527.3 $ 9.1 $536.4

16
Assessment of Risk

Investment Performance

The following table shows the history of the approximate rate of return1 on the Market Value of Assets. 

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan

FY 2020 1.8% 2.1%

FY 2019 1.8% 2.2%

FY 2018 1.5% 2.3%

FY 2017 1.4% 2.3%

FY 2016 1.0% 2.4%

FY 2015 0.8% 2.2%

FY 2014 1.3% 2.1%

FY 2013 1.3% 2.2%

FY 2012 2.9% 3.3%

FY 2011 3.2% 3.3%

The following table shows the total amount of interest earned in each plan from investments for the current and prior years ($ 

millions).

1

Rates from FY2013, FY2014, and FY2015 are net of expenses for all plans.

Year Police Officers and Firefighters', and 

Teachers' Plans Judges' Plan Total

FY 2020 $ 66.6 $3.7 $ 70.2

FY 2019 $ 69.1 $3.8 $ 72.9

FY 2018 $ 57.5 $3.6 $ 61.1

FY 2017 $ 51.0 $3.5 $ 54.5

FY 2016 $ 51.1 $3.6 $ 54.7

FY 2015 $ 54.9 $3.7 $ 58.6

FY 2014 $ 61.9 $3.8 $ 65.7

FY 2013 $ 75.0 $3.8 $ 78.8

FY 2012 $ 104.2 $4.4 $ 108.6

FY 2011 $ 115.3 $4.3 $ 119.6

The following table shows the rates used for the return on market value of assets ("Asset Return") and the percentage of the 

amortized cost value of investment ("Liability Rates").

17

Police Officers and Firefighters', and Judges' Plan Teachers' Plans

Year Liability Rates Asset Return Liability Rates Asset Return

FY 2020 0.8% - 3.6% 1.8% 0.8% - 3.6% 2.1%

FY 2019 0.7% - 3.8% 1.8% 0.7% - 3.8% 2.2%

FY 2018 0.6% - 3.9% 1.5% 0.6% - 3.9% 2.3%

FY 2017 0.7% - 4.0% 1.4% 0.7% - 4.0% 2.3%

FY 2016 1.1% - 4.2% 1.0% 1.1% - 4.2% 2.4%

FY 2015 1.5% - 4.3% 0.8% 1.5% - 4.3% 2.2%

FY 2014 1.7% - 4.4% 1.3% 1.7% - 4.4% 2.1%

FY 2013 1.9% - 4.6% 1.3% 1.9% - 4.6% 2.2%

FY 2012 2.0% - 4.7% 2.9% 2.0% - 4.7% 3.3%

FY 2011 2.3% - 4.9% 3.2% 2.3% - 4.9% 3.3%
Assessment of Risk

(Gains)/Losses

The following table shows the Historical (Gains)/Losses in each plan for the current and prior years (in 

millions). The plans will experience deviations from expected each year. The amount of the deviation is 

amortized over future years and included in the contribution calculation.

Police Officers and Firefighters', and Teachers' Plans Judges Plan

Actuarial Actuarial 

Actuarial Actuarial Actuarial Actuarial (Gain)/Loss - (Gain)/Loss - Year (Gain)/Loss - (Gain)/Loss - Method/ (Gain)/Loss - (Gain)/Loss - Method/

Investment Experience Assumptions Investment Experience Assumptions

9/30/2020 $ (40.7) $ 48.5 $ 293.7 $ 1.7 $ 4.6 $ 9.0 

9/30/2019 $ (48.9) $ 30.3 $ 492.0 $ 1.5 $ 4.3 $ (4.8)

9/30/2018 $ (30.6) $ 52.2 $ 114.0 $ 1.6 $ 4.1 $ 1.7 

9/30/2017 $ (12.2) $ 25.7 $ 251.0 $ 1.8 $ 1.6 $ 13.1 

9/30/2016 $ 4.3 $ (63.0) $ 484.5 $ 2.0 $ (2.2) $ 11.7 

9/30/2015 $ 9.8 $ (69.8) $ 100.1 $ 1.4 $ (0.3) $ 1.1 

9/30/2014 $ 7.0 $ (66.0) $ 354.3 $ 1.9 $ 21.3 $ 4.8 

9/30/2013 $ (20.1) $ (63.9) $ 256.4 $ (1.3) $ (1.4) $ 7.6 

9/30/2012 $ (21.1) $ 92.8 $ 591.7 $ (1.3) $ 3.7 $ 10.4 

9/30/2011 Data Not Available

Inflation Assumptions

The following table shows the annual long term actuarial general pay and inflation assumptions in each plan 

for the current and prior years. The inflation assumption is used to project future pay for the active population.

Year Cost-of-Living Police/Fire Pay Teachers Pay Judges Pay

FY 2020 1.5% - 1.8% 2.15% - 2.20% 2.3% 0.9%

FY 2019 1.4% - 1.8% 1.95% - 2.00% 2.3% 0.8%

FY 2018 1.6% - 1.7% 1.8% - 2.2% 2.4% 1.0%

FY 2017 1.7% - 1.9% 1.8% - 2.2% 3.0% 1.1%

FY 2016 1.9% - 2.0% 2.0% - 2.2% 3.0% 1.2%

FY 2015 2.1% - 2.4% 2.2% 3.0% 1.7%

FY 2014 2.4% - 2.5% 2.2% – 2.3% 3.0% 1.9%

FY 2013 2.4% - 2.6% 3.1% – 3.4% 3.9% 2.3%

FY 2012 2.5% - 2.6% 4.3% 4.3% 1.5%

FY 2011 2.4% 4.3% 4.3% 1.8%

18
Plan Cost

Amortization Schedule and Required Government Contribution

Police Officers and Firefighters', and Teachers' Plans

Amortization Base Remaining 

Number of Years

Annual 

Amortization 

Installment

Outstanding Balance 

as of October 1, 2020

Initial Unfunded Accrued Liability 7 $ 348,600,000 2,293,445,114

Assumption Change 10/1/2001 1 40,100,000 39,773,854

Plan Change 10/1/2001 1 16,000,000 15,869,867

Assumption Change 10/1/2004 4 13,700,000 53,223,472

Assumption Change 10/1/2005 5 (6,300,000) (30,291,481)

Assumption Change 10/1/2006 6 39,800,000 227,125,139

Assumption Change 10/1/2007 7 3,600,000 23,684,459

Assumption Change 10/1/2008 8 3,300,000 24,500,904

Assumption Change 10/1/2009 9 40,700,000 335,491,642

Assumption Change 10/1/2010 10 10,500,000 94,859,243

(Gain)/Loss 10/1/2011 1 (16,200,000) (16,068,240)

Assumption Change 10/1/2011 11 6,900,000 67,606,173

(Gain)/Loss 10/1/2012 2 500,000 986,470

Assumption Change 10/1/2012 12 32,500,000 342,403,278

(Gain)/Loss 10/1/2013 3 (9,900,000) (29,092,588)

Assumption Change 10/1/2013 13 18,700,000 210,340,359

Funding Method Change 10/1/2013 13 (34,800,000) (391,435,534)

(Gain)/Loss 10/1/2014 4 (6,900,000) (26,805,982)

Assumption Change 10/1/2014 14 13,400,000 159,928,288

(Gain)/Loss 10/1/2015 5 (7,000,000) (33,657,201)

Assumption Change 10/1/2015 15 (4,000,000) (50,390,916)

(Gain)/Loss 10/1/2016 6 (10,000,000) (57,066,618)

Assumption Change 10/1/2016 16 20,600,000 272,694,262

Method Change 10/1/2016 16 500,000 6,618,793

(Gain)/Loss 10/1/2017 7 1,500,000 9,868,525

Assumption Change 10/1/2017 17 5,000,000 69,273,557

(Gain)/Loss 10/1/2018 8 2,400,000 17,818,839

Assumption Change 10/1/2018 18 (1,600,000) (23,118,941)

(Gain)/Loss 10/1/2019 9 (2,100,000) (17,310,380)

Assumption Change 10/1/2019 19 26,300,000 395,099,362

(Gain)/Loss 10/1/2020 10 900,000 7,858,584

Assumption Change 10/1/20201 20 12,000,000 186,456,129

Total Amortization $ 558,700,000 $ 4,179,688,432

Total Normal Cost with Interest $ -

Employee Contributions -

Net Employer Normal Cost $ -

Total Required Government Contribution as of 

September 30, 20212 $ 558,700,000

1 Includes assumption change impact, $293,673,204, as well as effect of discount rate change on prior amortization balances, 

($107,217,075).

2 Before administrative expenses.

19
Plan Cost

Amortization Schedule and Required Government Contribution

Judges' Plan

Amortization Base Remaining 

Number of Years

Annual 

Amortization 

Installment

Outstanding Balance 

as of October 1, 2020

Initial Unfunded Accrued Liability 7 $ 2,100,000 $ 13,128,087

Assumption Change 10/1/2001 1 500,000 485,861

Assumption Change 10/1/2004 4 200,000 745,022

Assumption Change 10/1/2006 6 600,000 3,260,033

Assumption Change 10/1/2008 8 200,000 1,409,284

Assumption Change 10/1/2009 9 (800,000) (6,255,112)

Assumption Changes 10/1/2010 10 1,500,000 12,854,275

(Gain)/Loss 10/1/2011 1 100,000 97,172

Assumption Changes 10/1/2011 11 100,000 929,892

(Gain)/Loss 10/1/2012 2 (400,000) (766,387)

Assumption Changes 10/1/2012 12 600,000 6,004,617

(Gain)/Loss 10/1/2013 3 800,000 2,266,810

Assumption Changes 10/1/2013 13 400,000 4,278,571

Funding Method Change 10/1/2013 13 (1,000,000) (10,696,428)

(Gain)/Loss 10/1/2014 4 2,900,000 10,802,825

Assumption Change 10/1/2014 14 200,000 2,273,137

(Gain)/Loss 10/1/2015 5 100,000 459,150

Assumption Change 10/1/2016 16 300,000 3,794,389

Method Change 10/1/2016 16 500,000 6,323,982

(Gain)/Loss 10/1/2017 7 400,000 2,500,588

Assumption Change 10/1/2017 17 800,000 10,609,632

(Gain)/Loss 10/1/2018 8 700,000 4,932,494

Assumption Change 10/1/2018 18 100,000 1,385,875

(Gain)/Loss 10/1/2019 9 700,000 5,473,223

Assumption Change 10/1/2019 19 (400,000) (5,775,435)

(Gain)/Loss 10/1/2020 10 700,000 6,247,513

Assumption Change 10/1/20201 20 600,000 8,283,578

Total Amortization $ 12,500,000 $ 85,052,648

Total Normal Cost with Interest $ 6,400,000

Employee Contributions (600,000)

Net Employer Normal Cost $ 5,800,000

Total Required Government Contribution as of 2 September 30, 2021 $ 18,300,000

1 Includes assumption change impact, -($9,022,336), as well as effect of discount rate change on prior amortization balances, 

($738,758).

2 Before administrative expenses.

20
Changes in Actuarial Accrued Liability

Reconciliation of Actuarial (Gain)/Loss

Police Officers and 

Firefighters', and Judges' Plan

Teachers' Plans

Assets

As of October 1, 2019, before adjustments $ 3,822,592,727 $ 177,213,402

As of October 1, 2019, after adjustments 3,822,605,456 177,172,633

Contributions:

Employees $ - $ 664,470

Employer 542,846,482 15,973,402

Total 542,846,482 16,637,872

Benefits Paid (538,902,741) (14,207,928)

Expenses Paid (22,546,482) (473,402)

Income (including adjustments) 66,868,543 3,654,359

Expected Income 26,209,824 5,310,395

Expected End of Year Value 3,830,199,810 184,480,339

October 1, 2020 (Projected) Value 3,870,858,529 182,824,303

Asset (Gain)/Loss $ (40,658,719) $ 1,656,036

Liabilities

October 1, 2019 AAL $ 8,188,657,072 $ 255,415,933

Normal Cost:

Employees - 500,000

Employers

Total

- 4,800,000

- 5,300,000

Benefits Paid (538,902,741) (14,207,928)

Interest 58,602,123 7,755,133

Expected September 30, 2020 AAL 7,708,356,454 254,263,138

Actual September 30, 2020 AAL before 1 assumption and method changes 7,756,873,757 258,854,615

Liability (Gain)/Loss 48,517,303 4,591,477

Total Experience (Gain)/Loss $ 7,858,584 $ 6,247,513

Summary of Changes in Assumptions and Methods

Police Officers and 

(Gains)/Losses Firefighters', and Judges' Plan

Teachers' Plans

Change in Discount Rate 376,652,534 5,978,103 2 Change in Other Economic Assumptions (40,391,580) 4,505,228 3 Change in Non-Economic Assumptions

Total Impact

(42,587,750)

$ 293,673,204

(1,460,995)

$ 9,022,336

Actual End of Year AAL after assumption 

and method changes $ 8,050,546,961 $ 267,876,951

1 Liabilities as of October 1, 2020 for the Police Officers and Firefighters', and Teachers' Plans calculated for this purpose are 

based on 2020 spot rates implied by the 2019 spot rate yield curve. These spot rates used in gain/loss analysis were calculated 

by converting the 2019 spot rates to forward rates, removing the forward rate for FY 2020, and then converting the forward rates 

back to spot rates. See Appendix A: Actuarial Assumptions and Methods for an example of the rates.

2

 Projected salary increases and COLA.

3

 Mortality projection scale.

21
Asset Information

Statement of Changes in Net Plan Assets

The following table is based on the unaudited statement of assets projected to 

September 30, 2020, as provided by the Department of the Treasury on August 7, 2020. 

Values from the statement are unrounded and truncated to the dollar.

Police Officers and 

Firefighters', and Judges' Plan

Teachers' Plans

Projected net assets available for benefits 

as of October 1, 2019 $ 3,822,592,727 $ 177,213,402

Adjusted from estimate to actual 12,729 (40,769)

Actual net assets available as of 

October 1, 2019 $ 3,822,605,456 $ 177,172,633

Additions

Contributions:

Government contributions (amortization 

payment) $ 542,846,482 $ 15,973,402

Employee contributions

Total contributions

-

$ 542,846,482 $

664,470

16,637,872

Investment income (including interest)1 66,564,986 3,679,822

Miscellaneous additions 290,828 15,307

Total additions $ 609,702,296 $ 20,333,001

Deductions

Benefit payments:

Annuities - Federal only $ (538,857,117) $ (14,207,928)

Refunds of contributions

Total benefit payments

(45,624)

$ (538,902,741)

-

$ (14,207,928)

Expenses and fees:

Administrative expenses $ (24,674,129) $ (473,402)

Other expenses

Total expenses and fees

2,127,647

$ (22,546,482)

-

$ (473,402)

Total deductions $ (561,449,223) $ (14,681,330)

Net additions/(deductions) $ 48,253,073 $ 5,651,671

Net assets available for benefits as of 

October 1, 2020 $ 3,870,858,529 $ 182,824,303

1 The approximate rate of return on the Market Value of Assets is 1.75% for the Police Officers and Firefighters', 

and Teacher's Plans, and 2.05% for the Judges' Plan.

22
Benefit Payments and Funding Projections

Benefit Payment Projections

Police Officers and Firefighters', and Teachers' Plans (closed group)

23

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

2021 $ 540,563,200 2059 $ 40,943,626

2022 535,576,235 2060 35,726,370

2023 529,010,812 2061 30,959,570

2024 520,798,521 2062 26,626,935

2025 511,366,265 2063 22,714,488

2026 500,611,785 2064 19,208,633

2027 488,567,718 2065 16,095,052

2028 475,524,378 2066 13,357,094

2029 461,571,656 2067 10,975,416

2030 446,732,505 2068 8,928,233

2031 431,065,199 2069 7,190,939

2032 414,712,852 2070 5,736,285

2033 397,671,124 2071 4,535,147

2034 380,050,160 2072 3,557,230

2035 361,949,808 2073 2,772,188

2036 343,477,083 2074 2,150,567

2037 324,741,915 2075 1,664,587

2038 305,872,743 2076 1,288,854

2039 286,999,104 2077 1,000,969

2040 268,257,397 2078 781,746

2041 249,785,545 2079 615,168

2042 231,719,481 2080 488,304

2043 214,186,204 2081 391,036

2044 197,299,035 2082 315,632

2045 181,155,459 2083 256,337

2046 165,832,497 2084 208,967

2047 151,384,245 2085 170,559

2048 137,840,292 2086 139,031

2049 125,206,851 2087 112,920

2050 113,469,739 2088 91,215

2051 102,598,132 2089 73,151

2052 92,549,138 2090 58,154

2053 83,271,848 2091 45,768

2054 74,711,804 2092 35,615

2055 66,815,387 2093 27,377

2056 59,532,257 2094 20,771

2057 52,817,419 2095 15,530

2058 46,632,000
Benefit Payments and Funding Projections

Benefit Payment Projections

Police Officers (closed group)

24

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

2021 $ 257,059,807 2059 $ 27,949,764

2022 256,854,305 2060 24,499,337

2023 255,943,307 2061 21,305,161

2024 254,158,183 2062 18,368,987

2025 251,708,488 2063 15,692,739

2026 248,543,659 2064 13,277,001

2027 244,668,307 2065 11,120,308

2028 240,236,877 2066 9,217,889

2029 235,272,296 2067 7,561,433

2030 229,781,871 2068 6,139,069

2031 223,766,021 2069 4,935,338

2032 217,261,622 2070 3,931,659

2033 210,317,952 2071 3,107,295

2034 202,942,121 2072 2,440,132

2035 195,170,407 2073 1,907,781

2036 187,049,071 2074 1,488,545

2037 178,628,722 2075 1,162,150

2038 169,967,164 2076 910,312

2039 161,128,555 2077 717,159

2040 152,183,161 2078 569,363

2041 143,205,321 2079 456,035

2042 134,271,159 2080 368,559

2043 125,454,672 2081 300,349

2044 116,824,980 2082 246,446

2045 108,445,353 2083 203,199

2046 100,369,272 2084 167,995

2047 92,638,525 2085 138,969

2048 85,281,965 2086 114,787

2049 78,315,547 2087 94,494

2050 71,743,360 2088 77,410

2051 65,559,224 2089 62,995

2052 59,749,529 2090 50,848

2053 54,295,541 2091 40,650

2054 49,175,928 2092 32,134

2055 44,369,578 2093 25,085

2056 39,857,326 2094 19,316

2057 35,623,550 2095 14,642

2058 31,656,766
Benefit Payments and Funding Projections

Benefit Payment Projections

Firefighters (closed group)

25

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

2021 $ 94,126,637 2059 $ 9,335,350

2022 93,691,428 2060 8,204,818

2023 92,905,414 2061 7,169,049

2024 91,667,893 2062 6,224,651

2025 90,159,784 2063 5,368,063

2026 88,339,194 2064 4,595,540

2027 86,266,046 2065 3,903,104

2028 83,993,404 2066 3,286,541

2029 81,561,039 2067 2,741,473

2030 78,978,034 2068 2,263,730

2031 76,274,259 2069 1,849,173

2032 73,465,231 2070 1,493,546

2033 70,569,310 2071 1,192,361

2034 67,607,222 2072 940,846

2035 64,597,339 2073 734,030

2036 61,559,540 2074 566,729

2037 58,513,240 2075 433,642

2038 55,476,909 2076 329,510

2039 52,467,853 2077 249,321

2040 49,501,536 2078 188,452

2041 46,591,219 2079 142,763

2042 43,747,747 2080 108,717

2043 40,979,347 2081 83,379

2044 38,292,212 2082 64,426

2045 35,690,953 2083 50,096

2046 33,178,877 2084 39,069

2047 30,758,447 2085 30,426

2048 28,431,262 2086 23,550

2049 26,198,400 2087 18,023

2050 24,060,977 2088 13,579

2051 22,020,444 2089 10,033

2052 20,078,367 2090 7,241

2053 18,236,324 2091 5,084

2054 16,495,791 2092 3,464

2055 14,857,985 2093 2,284

2056 13,323,571 2094 1,452

2057 11,892,472 2095 886

2058 10,563,703
Benefit Payments and Funding Projections

Benefit Payment Projections

Teachers (closed group)

26

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

Fiscal Year 

Ending In

Expected Net Benefit 

Payments

2021 $ 189,376,756 2059 $ 3,658,512

2022 185,030,503 2060 3,022,215

2023 180,162,091 2061 2,485,360

2024 174,972,445 2062 2,033,297

2025 169,497,992 2063 1,653,686

2026 163,728,932 2064 1,336,092

2027 157,633,365 2065 1,071,640

2028 151,294,097 2066 852,664

2029 144,738,322 2067 672,509

2030 137,972,601 2068 525,435

2031 131,024,919 2069 406,428

2032 123,985,999 2070 311,080

2033 116,783,862 2071 235,492

2034 109,500,817 2072 176,251

2035 102,182,061 2073 130,377

2036 94,868,473 2074 95,294

2037 87,599,953 2075 68,795

2038 80,428,669 2076 49,032

2039 73,402,696 2077 34,489

2040 66,572,699 2078 23,931

2041 59,989,005 2079 16,370

2042 53,700,574 2080 11,028

2043 47,752,185 2081 7,308

2044 42,181,843 2082 4,760

2045 37,019,153 2083 3,042

2046 32,284,348 2084 1,903

2047 27,987,273 2085 1,164

2048 24,127,065 2086 694

2049 20,692,904 2087 402

2050 17,665,402 2088 226

2051 15,018,464 2089 123

2052 12,721,242 2090 65

2053 10,739,982 2091 33

2054 9,040,085 2092 17

2055 7,587,823 2093 8

2056 6,351,360 2094 4

2057 5,301,397 2095 2

2058 4,411,532
Benefit Payments and Funding Projections

Benefit Payment Projections

Judges' Plan (open group)

27

Fiscal Year Ending In Expected Net Benef it

1 Payments

2021 $ 15,305,911

2022 15,325,321

2023 15,760,125

2024 15,914,105

2025 15,825,866

2026 15,877,121

2027 15,826,098

2028 15,874,816

2029 15,864,682

2030 16,116,285

2031 16,136,779

2032 16,152,182

2033 15,965,852

2034 15,846,842

2035 15,721,659

2036 15,570,806

2037 15,658,772

2038 15,553,737

2039 15,452,310

2040 15,282,818

2041 15,379,918

2042 15,184,885

2043 15,105,852

2044 14,987,876

2045 14,884,881

1 Expected Net Benefit Payments are net of retiree contributions paid to provide for 

 survivor benefits.
Benefit Payments and Funding Projections

Benefit Payment Projections

Judges' Plan (closed group)

Fiscal Year 

Ending In

Expected Net Benefit 

1 Payments

Fiscal Year 

Ending In

Expected Net Benefit 

1 Payments

2021 $ 15,305,911 2059 $ 4,524,529

2022 15,325,236 2060 4,151,459

2023 15,759,864 2061 3,798,504

2024 15,913,570 2062 3,465,305

2025 15,824,943 2063 3,151,386

2026 15,875,710 2064 2,856,135

2027 15,824,393 2065 2,579,019

2028 15,871,855 2066 2,319,609

2029 15,860,245 2067 2,076,950

2030 16,109,692 2068 1,850,333

2031 16,127,449 2069 1,639,292

2032 16,108,745 2070 1,443,457

2033 15,879,799 2071 1,262,689

2034 15,697,458 2072 1,096,856

2035 15,454,791 2073 945,698

2036 15,168,772 2074 808,956

2037 14,830,936 2075 686,429

2038 14,486,924 2076 577,449

2039 14,030,489 2077 481,168

2040 13,555,309 2078 396,821

2041 13,368,630 2079 323,674

2042 12,834,333 2080 260,892

2043 12,394,229 2081 207,594

2044 11,885,715 2082 162,841

2045 11,372,371 2083 125,741

2046 10,800,670 2084 95,482

2047 10,284,697 2085 71,228

2048 9,717,727 2086 52,098

2049 9,160,250 2087 37,286

2050 8,724,521 2088 26,088

2051 8,238,264 2089 17,826

2052 7,706,452 2090 11,873

2053 7,192,512 2091 7,688

2054 6,697,409 2092 4,844

2055 6,221,971 2093 2,974

2056 5,766,783 2094 1,769

2057 5,332,122 2095 1,016

2058 4,918,026

28

1

 Expected Net Benefit Payments are net of retiree contributions paid to provide for survivor benefits.
Benefit Payments and Funding Projections

District Benefit Payments

Police Officers and Firefighters', and Teachers' Plans

29

Benefits Paid by 

Fiscal Year Ending In District 

($ millions)

1998-1999 $ 2.3

2000 3.9

2001 4.6

2002 6.7

2003 10.9

2004 16.2

2005 21.7

2006 28.6

2007 38.4

2008 47.1

2009 58.1

2010 65.5

2011 73.3

2012 86.0

2013 99.8

2014 112.6

2015 126.4

2016 146.0

2017 163.0

2018 183.8

2019 201.1

2020 223.9
Benefit Payments and Funding Projections

15-Year Funding Projections - Closed Group

Police Officers and Firefighters', and Teachers' Plans

30

Fiscal Year 

Ending In

Expected 

Return on 

Assets

Beginning of 

Year Assets

Federal 

Contribution 

(with Expense 

Reimbursement)

Net Benefit 

Payments Expenses Investment 

Return

End of Year 

Assets

2021 0.82% $ 3,870,858,529 $ 586,800,000 $ (540,563,200) $ (28,100,000) $ 29,409,521 $ 3,918,404,850

2022 1.10% 3,918,404,850 547,500,000 (535,576,235) (28,700,000) 40,006,003 3,941,634,618

2023 1.59% 3,941,634,618 546,100,000 (529,010,812) (27,800,000) 58,293,381 3,989,217,187

2024 2.05% 3,989,217,187 556,300,000 (520,798,521) (28,100,000) 76,259,526 4,072,878,192

2025 2.49% 4,072,878,192 549,900,000 (511,366,265) (28,500,000) 94,875,265 4,177,787,192

2026 2.76% 4,177,787,192 563,700,000 (500,611,785) (29,000,000) 107,816,037 4,319,691,444

2027 3.00% 4,319,691,444 534,500,000 (488,567,718) (29,600,000) 121,654,923 4,457,678,649

2028 3.18% 4,457,678,649 181,400,000 (475,524,378) (30,200,000) 133,553,233 4,266,907,504

2029 3.30% 4,266,907,504 176,300,000 (461,571,656) (30,800,000) 132,521,998 4,083,357,846

2030 3.46% 4,083,357,846 138,300,000 (446,732,505) (31,400,000) 132,872,452 3,876,397,793

2031 3.59% 3,876,397,793 127,600,000 (431,065,199) (32,100,000) 130,722,096 3,671,554,690

2032 3.57% 3,671,554,690 121,300,000 (414,712,852) (32,700,000) 122,923,787 3,468,365,625

2033 3.48% 3,468,365,625 89,400,000 (397,671,124) (33,300,000) 113,321,740 3,240,116,241

2034 3.77% 3,240,116,241 106,200,000 (380,050,160) (34,000,000) 114,216,869 3,046,482,950

2035 3.62% 3,046,482,950 93,500,000 (361,949,808) (34,700,000) 103,208,397 2,846,541,539
Benefit Payments and Funding Projections

15-Year Funding Projections - Open Group

Judges' Plan

31

Fiscal Year 

Ending In

Expected 

Return on 

Assets

Beginning of 

Year Assets

Employee 

Contributions

Federal 

Contribution 

(with Expense 

Reimbursement)

Net Benefit 

Payments Expenses Investment 

Return

End of Year 

Assets

2021 0.82% $ 182,824,303 $ 563,125 $ 18,800,000 $ (15,305,911) $ (500,000) $ 1,436,664 $ 187,818,181

2022 1.10% 187,818,181 568,418 18,354,520 (15,325,321) (600,000) 1,981,887 192,797,685

2023 1.59% 192,797,685 573,762 18,809,552 (15,760,125) (600,000) 2,942,406 198,763,280

2024 2.05% 198,763,280 579,155 18,065,102 (15,914,105) (600,000) 3,916,799 204,810,231

2025 2.49% 204,810,231 584,599 15,021,174 (15,825,866) (600,000) 4,911,970 208,902,108

2026 2.76% 208,902,108 590,094 14,977,773 (15,877,121) (600,000) 5,537,098 213,529,952

2027 3.00% 213,529,952 595,641 14,434,904 (15,826,098) (600,000) 6,160,173 218,294,572

2028 3.18% 218,294,572 601,240 11,992,572 (15,874,816) (600,000) 6,681,377 221,094,945

2029 3.30% 221,094,945 606,892 11,150,783 (15,864,682) (600,000) 7,025,901 223,413,839

2030 3.46% 223,413,839 612,597 11,409,540 (16,116,285) (700,000) 7,441,952 226,061,643

2031 3.59% 226,061,643 618,355 9,268,850 (16,136,779) (700,000) 7,816,912 226,928,981

2032 3.57% 226,928,981 624,167 9,228,717 (16,152,182) (700,000) 7,801,261 227,730,944

2033 3.48% 227,730,944 630,035 8,689,147 (15,965,852) (700,000) 7,654,221 228,038,495

2034 3.77% 228,038,495 635,957 9,350,145 (15,846,842) (700,000) 8,287,650 229,765,405

2035 3.62% 229,765,405 641,935 9,211,716 (15,721,659) (700,000) 8,040,080 231,237,477
Basis for the Valuation

Plan Member Summary

Police Officers and Firefighters', and Teachers' Plans

Police Officers Firefighters Teachers Total

Date Of Census Data: 5/1/2020 5/1/2020 5/1/2020 5/1/2020

Plan Member Counts:

Actives

Terminated Vested

1 Normal Retirees - Current Benefits

Normal Retirees - Deferred Benefits

Beneficiaries

Disabled Retirees - Current Benefits

Disabled Retirees - Deferred Benefits

Total

424

30

3,950

5 

1,313

707

91

298

11

1,195

0 

454

259

17

302

203

4,706

0 

419

215

14

1,024

244

9,851

5 

2,186

1,181

122

6,520 2,234 5,859 14,613

Active Plan Member Characteristics:

Total Pay

Average Age

Average Service

$ 50,341,291

52.28

28.20

$ 34,414,935

53.03

27.93

$ 34,748,304

58.68

30.00

$ 119,504,530

54.39

28.65

Inactive Plan Member Characteristics:

Average Age:

Terminated Vested 54.16 53.32 61.03 59.84

Normal Retirees 67.60 69.69 77.37 72.53

Beneficiaries 74.82 77.50 79.95 76.36

Disabled Retirees 70.56 74.94 76.69 72.57

Total Annual Federal Benefits - Current:

Normal Retirees

Beneficiaries

Disabled Retirees

Total Annual Federal Benefits - Deferred:

$ 182,544,694

 43,053,972

 31,427,886

$ 

 

 

64,965,974

15,020,676

13,941,804

$ 176,860,584

 8,639,436

 5,934,936

$ 

 

 

424,371,251

66,714,084

51,304,626

Terminated Vested

Normal Retirees

Disabled Retirees

$ 404,004

 103,092

 893,568

$ 

 

128,640

- 

121,188

$ 1,320,780

- 

 114,504

$ 

 

 

1,853,424

103,092

1,129,260

1

 Throughout this report, "Normal Retirees" refer to Voluntary Retirements for the District of Columbia Teachers' Retirement Plan 

and Optional Retirements for the District of Columbia Police Officers and Firefighters' Retirement Plan.

32
Basis for the Valuation

Plan Member Summary

Judges' Plan

Total

Date of Census Data 5/1/2020

Plan Member Counts:

Actives 61

Terminated Vested

1 Normal Retirees

Beneficiaries

Disabled Retirees

 0

85

15

1

Total 162

Active Plan Member Characteristics

Total Compensation for Covered Plan Members

Average Age

Average Service

$ 13,306,198

58.55

11.71

Inactive Plan Member Characteristics

Average Age

Terminated Vested

Normal Retirees

N/A

76.60

Beneficiaries 83.92

Disabled Retirees 64.42

Total Annual Benefits

Terminated Vested

Normal Retirees

Beneficiaries

Disabled Retirees

$ 

 

N/A

13,162,470

1,181,543

138,939

1

 Throughout this report, "Normal Retirees" refer to Regular Retirements for the District of Columbia Judges' Retirement 

Plan.

33
Basis for the Valuation

Plan Member Reconciliation

The following tables show a reconciliation of the number of plan members from the previous census date to the current 

census date.

Police Officers and Firefighters', and Teachers' Plans

Actives Terminated 

Vested 

Normal 

Retirees Beneficiaries Disabled Retirees Totals

Plan Members as of 

May 1, 2019 1,307 204 9,890 2,172 1,378 14,951

New Plan Members 0 0 0 0 0 0

Rehires 1 (1) 0 0 0 0

Vested Terminations (7) 7 0 0 0 0

Retirements (273) (9) 282 0 0 0

Deaths - Beneficiary (2) 0 (96) 127 (29) 0

Deaths - No Beneficiary (1) (1) (224) (111) (46) (383)

Refund of Contributions 0 (1) 0 0 0 (1)

Disabled 0 0 0 0 0 0

Payments Reinstated/Ceased 0 0 0 (10) 0 (10)

Data Corrections (1) 45 4 8 0 56

Plan Members as of 

May 1, 2020 1,024 244 9,856 2,186 1,303 14,613

Police Officers

34

Actives Terminated 

Vested 

Normal 

Retirees Beneficiaries Disabled Retirees Totals

Plan Members as of 

May 1, 2019 593 32 3,872 1,286 834 6,617

New Plan Members 0 0 0 0 0 0

Rehires 0 0 0 0 0 0

Vested Terminations (2) 2 0 0 0 0

Retirements (164) (3) 167 0 0 0

Deaths - Beneficiary (2) 0 (54) 79 (23) 0

Deaths - No Beneficiary 0 0 (31) (57) (13) (101)

Refund of Contributions 0 0 0 0 0 0

Disabled 0 0 0 0 0 0

Payments Reinstated/Ceased 0 0 0 (5) 0 (5)

Data Corrections (1) (1) 1 10 0 9

Plan Members as of 

May 1, 2020 424 30 3,955 1,313 798 6,520
Basis for the Valuation

Plan Member Reconciliation

The following tables show a reconciliation of the number of plan members from the previous census date to the current 

census date.

Firefighters

Actives Terminated 

Vested 

Normal 

Retirees Beneficiaries DisabledRetirees Totals

Plan Members as of 

May 1, 2019 360 14 1,168 462 297 2,301

New Plan Members 0 0 0 0 0 0

Rehires 0 0 0 0 0 0

Vested Terminations 0 0 0 0 0 0

Retirements (62) (2) 64 0 0 0

Deaths - Beneficiary 0 0 (20) 25 (5) 0

Deaths - No Beneficiary 0 (1) (17) (30) (16) (64)

Refund of Contributions 0 0 0 0 0 0

Disabled 0 0 0 0 0 0

Payments Reinstated/Ceased 0 0 0 (4) 0 (4)

Data Corrections 0 0 0 1 0 1

Plan Members as of 

May 1, 2020 298 11 1,195 454 276 2,234

Teachers

35

Actives Terminated 

Vested 

Normal 

Retirees Beneficiaries Disabled Retirees Totals

Plan Members as of 

May 1, 2019 354 158 4,850 424 247 6,033

New Plan Members 0 0 0 0 0 0

Rehires 1 (1) 0 0 0 0

Vested Terminations (5) 5 0 0 0 0

Retirements (47) (4) 51 0 0 0

Deaths - Beneficiary 0 0 (22) 23 (1) 0

Deaths - No Beneficiary (1) 0 (176) (24) (17) (218)

Refund of Contributions 0 (1) 0 0 0 (1)

Disabled 0 0 0 0 0 0

Payments Reinstated/Ceased 0 0 0 (1) 0 (1)

Data Corrections 0 46 3 (3) 0 46

Plan Members as of 

May 1, 2020 302 203 4,706 419 229 5,859
Basis for the Valuation

Plan Member Reconciliation

The following table shows a reconciliation of the number of plan members from the previous census date to the 

current census date.

36

Judges' Plan

Actives Terminated 

Vested 

Normal 

Retirees Beneficiaries Disabled 

Retirees Totals

Plan Members as of 

May 1, 2019 59 0 81 14 1 155

New Plan Members 7 0 0 0 0 7

Rehires 0 0 0 0 0 0

Vested Terminations 0 0 0 0 0 0

Retirements (5) 0 5 0 0 0

Deaths - Beneficiary 0 0 (1) 1 0 0

Deaths - No Beneficiary 0 0 0 0 0 0

Refund of Contributions 0 0 0 0 0 0

Disabled 0 0 0 0 0 0

Payments Reinstated/Ceased 0 0 0 0 0 0

Data Corrections 0 0 0 0 0 0

Plan Members as of 

May 1, 2020 61 0 85 15 1 162
Basis for the Valuation

Age-Service Grid

Police Officers

37

Active Population

Service Under 20 20-24 25-29 30-34 35-39 40+ All Service

Age 

Group No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp.

0 - 39 - $ - - $ - - $ - - $ - - $ - - $ - - $ - 

40 - 44 - - 1 103,892 - - - - - - - - 1 103,892

45 - 49 - - 36 114,641 95 118,553 9 117,189 - - - - 140 117,459

50 - 54 - - 28 111,648 80 122,357 69 116,678 - - - - 177 118,449

55 - 59 - - 5 115,723 25 119,374 53 121,956 5 133,813 - - 88 121,542

60 - 64 - - 3 110,798 5 105,210 6 119,087 2 139,305 2 140,198 18 118,443

65 - 69 - - - - - - - - - - - - - -

70+ - - - - - - - - - - - - - -

All Ages - $ - 73 $113,262 205 $119,812 137 $118,859 7 $135,382 2 $140,198 424 $118,729
Basis for the Valuation

Age-Service Grid

Firefighters

Active Population

Service Under 20 20-24 25-29 30-34 35-39 40+ All Service

Age 

Group No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp.

0 - 39 - $ - - $ - - $ - - $ - - $ - - $ - - $ - 

40 - 44 - - - - - - - - - - - - - -

45 - 49 - - 2 118,005 47 114,931 25 118,708 - - - - 74 116,290

50 - 54 - - 46 102,232 60 125,289 15 119,669 - - - - 121 115,827

55 - 59 - - 31 99,993 42 114,235 15 133,745 2 225,047 - - 90 115,043

60 - 64 - - 3 90,602 - - 7 114,334 3 122,804 - - 13 110,812

65 - 69 - - - - - - - - - - - - - -

70+ - - - - - - - - - - - - - -

All Ages - $ - 82 $101,345 149 $118,906 62 $122,084 5 $163,701 - $ - 298 $115,486

38
Basis for the Valuation

Age-Service Grid

Teachers

Active Population

Service Under 20 20-24 25-29 30-34 35-39 40+ All Service

Age 

Group No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp.

0 - 39 - $ - - $ - - $ - - $ - - $ - - $ - - $ - 

40 - 44 - - - - - - - - - - - - - -

45 - 49 - - 6 111,674 17 115,409 - - - - - - 23 114,435

50 - 54 - - 13 112,778 52 114,452 6 124,668 - - - - 71 115,009

55 - 59 - - 7 113,133 27 112,901 50 114,700 1 116,408 - - 85 114,020

60 - 64 - - 3 114,332 22 120,173 35 112,016 8 113,518 2 133,596 70 115,467

65 - 69 - - 2 113,294 10 121,021 9 113,622 12 120,896 4 113,294 37 117,928

70+ - - - - 3 114,332 7 109,582 3 112,006 3 122,300 16 113,312

All Ages - $ - 31 $112,828 131 $115,716 107 $113,956 24 $117,138 9 $120,808 302 $115,061

39
Basis for the Valuation

Age-Service Grid

Judges

40

Active Population

Service Under 1 1-4 5-9 10-14 15-19 20-24 25-29 30-34 35+ All Service

Age 

Group No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp. No. Avg. Comp.

0 - 34 - $ - - $ - - $ - - $ - - $ - - $ - - $ - - $ - - $ - - $ - 

35 - 39 1 229,500 - - - - - - - - - - - - - - - - 1 229,500

40 - 44 1 216,400 2 216,400 - - - - - - - - - - - - - - 3 216,400

45 - 49 - - 2 216,400 4 219,675 1 216,400 - - - - - - - - - - 7 218,271

50 - 54 - - 3 216,400 2 216,400 3 216,400 - - - - - - - - - - 8 216,400

55 - 59 1 216,400 4 216,400 2 222,950 1 216,400 4 216,400 2 223,200 - - - - - - 14 218,307

60 - 64 - - 2 216,400 4 219,675 3 216,400 2 216,400 2 216,400 - - - - - - 13 217,408

65 - 69 - - 1 216,400 - - 3 220,767 2 216,400 2 216,650 1 216,400 - - - - 9 217,911

70+ - - - - - - 1 229,500 1 216,400 2 222,950 1 216,400 1 216,400 - - 6 220,767

All Ages 3 $220,767 14 $216,400 12 $219,675 12 $218,583 9 $216,400 8 $219,800 2 $216,400 1 $216,400 - - 61 $218,134
Basis for the Valuation

Federal Allocation by Plan

Police Officers and Firefighters', and Teachers' Plans

Active Plan Members Police Officers Firefighters Teachers

Number 424 298 302

Average Age 52.28 53.03 58.68

Average Service 28.20 27.93 30.00

Average Pay $ 118,729 $ 115,486 $ 115,061

Inactive Plan Members

 

 

 

 

 

 

 

 

 

 

 

Police Officers Firefighters Teachers

100% Partial 100% Partial 100% Partial 

Federal Federal Federal Federal Federal Federal

Normal Retirees - Current Federal Benefit

Number 1,801 2,149 490 705 1,339 3,367

Average Age 75.79 60.78 79.51 62.86 86.29 73.83

Average Federal Benefit $ 56,752 $ 37,382 $ 66,919 $ 45,639 $ 47,667 $ 33,571 

Average Total Benefit $ 56,752 $ 78,957 $ 66,919 $ 88,079 $ 47,667 $ 54,969 

Normal Retirees - Deferred Federal Benefit

Number N/A 5 N/A 0 N/A 0

Average Age N/A 51.01 N/A N/A N/A N/A

Average Federal Benefit N/A $ 20,618 N/A N/A N/A N/A 

Average Total Benefit N/A $ 65,302 N/A N/A N/A N/A 

Beneficiaries - Current Federal Benefit1

Number 1,147 166 401 53 276 143

Average Age 77.40 56.99 80.38 55.72 83.69 72.74

Average Federal Benefit $ 34,093 $ 23,791 $ 34,500 $ 22,378 $ 24,083 $ 13,934 

Average Total Benefit $ 34,093 $ 35,234 $ 34,500 $ 39,434 $ 24,083 $ 20,279 

Disabled Retirees - Current Federal Benefit

Number 557 150 213 46 141 74

Average Age 75.77 62.13 78.85 65.21 81.62 70.84

Average Federal Benefit $ 49,443 $ 25,919 $ 57,330 $ 37,622 $ 32,797 $ 17,710 

Average Total Benefit $ 49,443 $ 47,502 $ 57,330 $ 55,763 $ 32,797 $ 37,176 

Disabled Retirees - Deferred Federal Benefit

Number N/A 91 N/A 17 N/A 14

Average Age N/A 52.58 N/A 52.39 N/A 58.03

Average Federal Benefit N/A $ 9,819 N/A $ 7,129 N/A $ 8,179 

Average Total Benefit N/A $ 39,251 N/A $ 38,249 N/A $ 39,702 

Terminated Vested - Deferred Federal Benefit

Number 30 11 203

Average Age 54.16 53.32 61.03

Average Federal Benefit $ 13,467 $ 11,695 $ 6,506 

1

 Includes child beneficiaries.

41
Basis for the Valuation

Plan Member Counts

Judges' Plan

Active Plan Members

Number 61

Average Age 58.55

Average Service 11.71

Average Pay $ 218,134

Number Eligible to Retire 28

42

Inactive Plan Members

Normal Retirees

Number 85

Average Age 76.60

Average Benefit $ 154,853

Spouse Beneficiaries

Number 14

Average Age 86.03

Average Benefit $ 83,934

Disabled Retirees

Number 1 

Average Age 64.42

Average Benefit $ 138,939

Child Beneficiaries

Number 1 

Average Age 54.38

Average Benefit $ 6,465
Basis for the Valuation

Inactive Benefit Information

Inactive Police Officers - Current Benefits

Normal 

Retirees

100% Federal 

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - - $ - $ -

35-39 - - - - -

40-44 - - - - -

45-49 - - - - -

50-54 - - 464 20,187 79,593

55-59 - - 662 25,338 75,072

60-64 4 25,299 441 37,022 78,454

65-69 209 48,091 351 58,099 80,801

70-74 724 54,001 187 74,775 86,739

75-79 476 59,267 41 78,465 86,936

80-84 276 60,861 3 91,180 102,284

85-89 91 65,591 - - -

90-94 16 94,046 - - -

95-99 5 96,010 - - -

100 and over - - - - -

Total 1,801 $ 56,752 2,149 $ 37,382 $ 78,957

Beneficiaries 100% Federal

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 4 $ 41,916 20 $ 3,442 $ 11,260

35-39 - - 1 1,656 4,272

40-44 1 31,740 1 14,592 38,112

45-49 2 19,464 9 13,316 32,383

50-54 9 27,973 23 16,217 32,294

55-59 20 40,180 22 20,185 38,344

60-64 56 32,717 32 28,113 40,508

65-69 132 33,318 28 33,181 41,862

70-74 237 33,462 18 37,855 42,584

75-79 236 33,772 11 34,667 39,130

80-84 215 34,629 1 35,976 38,148

85-89 122 35,936 - - -

90-94 80 34,097 - - -

95-99 31 33,473 - - -

100 and over 2 42,594 - - -

Total 1,147 $ 34,093 166 $ 23,791 $ 35,234

43
Basis for the Valuation

Inactive Benefit Information

Inactive Police Officers - Current Benefits

Disabled 

Retirees

100% Federal 

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - - $ - $ -

35-39 - - - - -

40-44 - - - - -

45-49 - - - - -

50-54 5 22,728 - - -

55-59 11 23,459 60 14,045 38,752

60-64 31 29,716 48 22,674 47,694

65-69 89 43,647 34 45,087 59,419

70-74 141 47,705 5 51,019 59,189

75-79 120 50,686 3 56,256 64,884

80-84 80 55,886 - - -

85-89 42 60,608 - - -

90-94 33 65,499 - - -

95-99 5 75,206 - - -

100 and over - - - - -

Total 557 $ 49,443 150 $ 25,919 $ 47,502

Inactive Police Officers - Deferred Benefits

44

Terminated 

Vested Count

Average 

Federal 

Benefit

Under 35 - $ -

35-39 - -

40-44 - -

45-49 3 2,644

50-54 19 11,890

55-59 5 14,215

60-64 3 33,028

65-69 - -

70-74 - -

75-79 - -

80-84 - -

85-89 - -

90-94 - -

95-99 - -

100 and over - -

Total 30 $ 13,467
Basis for the Valuation

Inactive Benefit Information

Inactive Police Officers - Deferred Benefits

Partial Partial 

Normal Partial Federal Federal 

Retirees Federal Count Average 

Benefit

Average Total 

Benefit

Under 35 - $ - $ -

35-39 - - -

40-44 - - -

45-49 1 6,408 40,620

50-54 4 24,171 71,472

55-59 - - -

60-64 - - -

65-69 - - -

70-74 - - -

75-79 - - -

80-84 - - -

85-89 - - -

90-94 - - -

95-99 - - -

100 and over - - -

Total 5 $ 20,618 $ 65,302

45

Partial Partial 

Disabled Partial Federal Federal 

Retirees Federal Count Average 

Benefit

Average Total 

Benefit

Under 35 - $ - $ -

35-39 - - -

40-44 - - -

45-49 11 6,393 43,015

50-54 71 10,182 39,166

55-59 9 11,145 35,319

60-64 - - -

65-69 - - -

70-74 - - -

75-79 - - -

80-84 - - -

85-89 - - -

90-94 - - -

95-99 - - -

100 and over - - -

Total 91 $ 9,819 $ 39,251
Basis for the Valuation

Inactive Benefit Information

Inactive Firefighters - Current Benefits

Normal 

Retirees

100% Federal 

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - - $ - $ -

35-39 - - - - - 

40-44 - - - - - 

45-49 - - - - - 

50-54 - - 76 19,719 82,729

55-59 - - 156 27,515 82,006

60-64 - - 226 40,452 86,748

65-69 17 46,572 152 57,700 88,536

70-74 83 59,301 74 82,738 99,852

75-79 178 65,506 20 111,058 120,901

80-84 130 72,789 1 128,292 145,728

85-89 60 70,762 - - - 

90-94 19 78,336 - - - 

95-99 3 73,324 - - - 

100 and over - - - - - 

Total 490 $ 66,919 705 $ 45,639 $ 88,079

Beneficiaries 100% Federal

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - 8 $ 12,524 $ 32,289

35-39 - - 2 1,908 4,338

40-44 1 30,264 - - - 

45-49 - - 2 7,986 35,124

50-54 2 33,888 4 12,744 66,885

55-59 5 28,536 10 14,690 34,831

60-64 12 29,065 7 24,871 39,024

65-69 25 33,147 10 31,350 38,868

70-74 58 33,416 9 38,696 49,084

75-79 91 33,760 1 32,328 33,288

80-84 90 33,666 - - - 

85-89 50 37,222 - - - 

90-94 42 37,202 - - - 

95-99 23 38,506 - - - 

100 and over 2 33,492 - - - 

Total 401 $ 34,500 53 $ 22,378 $ 39,434

46
Basis for the Valuation

Inactive Benefit Information

Inactive Firefighters - Current Benefits

Disabled 

Retirees

100% Federal 

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - - $ - $ -

35-39 - - - - - 

40-44 - - - - - 

45-49 - - - - - 

50-54 - - - - - 

55-59 - - 11 13,933 44,378

60-64 6 24,086 10 27,595 50,129

65-69 26 48,497 18 45,374 59,294

70-74 36 53,877 6 71,930 75,830

75-79 48 58,848 1 53,064 53,388

80-84 55 61,425 - - - 

85-89 22 58,804 - - - 

90-94 16 68,267 - - - 

95-99 3 70,208 - - - 

100 and over 1 66,564 - - - 

Total 213 $ 57,330 46 $ 37,622 $ 55,763

Inactive Firefighters - Deferred Benefits

Terminated 

Vested Count

Average 

Federal 

Benefit

Under 35 - $ -

35-39 - - 

40-44 - - 

45-49 3 11,392

50-54 5 12,067

55-59 2 14,676

60-64 1 4,776

65-69 - - 

70-74 - - 

75-79 - - 

80-84 - - 

85-89 - - 

90-94 - - 

95-99 - - 

100 and over - - 

Total 11 $ 11,695

47
Basis for the Valuation

Inactive Benefit Information

Inactive Firefighters - Deferred Benefits

Disabled 

Retirees

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - $ -

35-39 - - - 

40-44 - - - 

45-49 2 10,242 47,808

50-54 14 7,149 36,399

55-59 1 612 45,024

60-64 - - - 

65-69 - - - 

70-74 - - - 

75-79 - - - 

80-84 - - - 

85-89 - - - 

90-94 - - - 

95-99 - - - 

100 and over - - - 

Total 17 $ 7,129 $ 38,249

48
Basis for the Valuation

Inactive Benefit Information

Inactive Teachers - Current Benefits

Normal 

Retirees

100% Federal 

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - - $ - $ -

35-39 - - - - - 

40-44 - - - - - 

45-49 - - - - - 

50-54 - - 4 8,835 48,186

55-59 - - 57 14,752 57,110

60-64 1 42,840 221 17,995 55,970

65-69 5 5,664 535 24,951 56,089

70-74 45 25,789 1,083 34,158 55,621

75-79 161 41,707 995 39,505 54,721

80-84 359 52,322 371 38,594 51,566

85-89 409 49,865 79 40,361 52,248

90-94 246 45,441 19 47,756 61,295

95-99 92 48,268 3 39,028 49,352

100 and over 21 51,537 - - - 

Total 1,339 $ 47,667 3,367 $ 33,571 $ 54,969

49

Beneficiaries 100% Federal

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - 1 $ 5,076 $ 7,116

35-39 - - - - - 

40-44 1 10,848 1 8,328 24,168

45-49 2 8,202 1 7,248 9,024

50-54 2 9,024 1 10,692 13,332

55-59 2 8,664 4 7,155 23,538

60-64 5 20,026 17 9,349 16,290

65-69 5 23,417 26 14,298 22,875

70-74 21 22,215 33 15,794 21,406

75-79 51 23,014 33 13,859 18,811

80-84 52 25,095 14 16,509 21,410

85-89 65 23,658 9 15,197 19,803

90-94 42 25,565 2 19,368 27,294

95-99 25 29,163 1 16,740 20,676

100 and over 3 27,088 - - - 

Total 276 $ 24,083 143 $ 13,934 $ 20,279
Basis for the Valuation

Inactive Benefit Information

Inactive Teachers - Current Benefits

Disabled 

Retirees

100% Federal 

Count

100% Federal 

Average 

Benefit

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - - $ - $ -

35-39 - - - - -

40-44 - - - - -

45-49 - - - - -

50-54 - - - - -

55-59 3 24,660 - - -

60-64 3 24,228 10 9,534 34,985

65-69 3 30,496 12 15,795 39,828

70-74 26 29,596 42 18,039 36,737

75-79 32 30,439 9 28,572 40,692

80-84 25 33,505 1 10,860 14,052

85-89 24 31,951 - - -

90-94 11 32,468 - - -

95-99 9 46,943 - - -

100 and over 5 51,727 - - -

Total 141 $ 32,797 74 $ 17,710 $ 37,176

50

Inactive Teachers - Deferred Benefits

Terminated 

Vested Count

Average 

Federal 

Benefit

Under 35 - $ -

35-39 - - 

40-44 - - 

45-49 10 2,584

50-54 39 4,480

55-59 53 6,639

60-64 42 7,960

65-69 29 7,614

70-74 15 5,338

75-79 15 8,876

80-84 - - 

85-89 - - 

90-94 - - 

95-99 - - 

100 and over - - 

Total 203 $ 6,506
Basis for the Valuation

Inactive Benefit Information

Inactive Teachers - Deferred Benefits

51

Disabled 

Retirees

Partial 

Federal Count

Partial 

Federal 

Average 

Benefit

Partial 

Federal 

Average Total 

Benefit

Under 35 - $ - $ -

35-39 - - - 

40-44 - - - 

45-49 - - - 

50-54 3 3,388 37,272

55-59 6 7,326 39,774

60-64 5 12,077 41,074

65-69 - - - 

70-74 - - - 

75-79 - - - 

80-84 - - - 

85-89 - - - 

90-94 - - - 

95-99 - - - 

100 and over - - - 

Total 14 $ 8,179 $ 39,702
Basis for the Valuation

Inactive Benefit Information

Inactive Judges

Normal 

Retirees Count Average 

Benefit

Under 35 - $ -

35-39 - -

40-44 - -

45-49 - -

50-54 - -

55-59 - -

60-64 5 143,915

65-69 12 155,902

70-74 21 152,034

75-79 19 159,860

80-84 13 168,743

85-89 9 167,153

90-94 5 115,574

95-99 1 66,092

100 and over - -

Total 85 $ 154,853

Beneficiaries Count Average 

Benefit

Under 35 - $ -

35-39 - -

40-44 - -

45-49 - -

50-54 1 6,465

55-59 - -

60-64 - -

65-69 - -

70-74 2 106,931

75-79 1 102,926

80-84 5 87,115

85-89 0 -

90-94 3 76,704

95-99 3 64,201

100 and over - -

Total 15 $ 78,770

Disabled 

Retirees Count Average 

Benefit

Under 35 - $ -

35-39 - -

40-44 - -

45-49 - -

50-54 - -

55-59 - -

60-64 1 138,939

65-69 - -

70-74 - -

75-79 - -

80-84 - -

85-89 - -

90-94 - -

95-99 - -

100 and over - -

Total 1 $ 138,939

Terminated 

Vested Count Average 

Benefit

Under 35 - $ -

35-39 - -

40-44 - -

45-49 - -

50-54 - -

55-59 - -

60-64 - -

65-69 - -

70-74 - -

75-79 - -

80-84 - -

85-89 - -

90-94 - -

95-99 - -

100 and over - -

Total - $ - 

52
APPENDIX A

Actuarial Assumptions and Methods

Methods

Liability Valuation Method

The funding method is the individual entry age normal method for the Judges' Plan and projected unit credit 

method for the Police Officers and Firefighters' and Teachers' Plans. The individual entry age normal method 

allocates the actuarial present value of the projected benefits of each individual on a level basis over the 

service of the individual between participation age and projected exit age. The projected unit credit method 

recognizes the portion of the present value of the projected benefits earned as of the valuation date. Since 

there are no remaining participants earning new benefit accruals in the Police Officers and Firefighters' and 

Teachers' Plans, ODCP believes that it is prudent to accelerate the recognition of the benefit accruals, as 

opposed to deferring the value of benefits already earned.

Under the Entry Age Normal Method, the present value of future benefits is equal to the value of the 

projected benefit payable at retirement discounted back to the plan member's current age. Discounts include 

such items as interest and mortality. The difference between the present value of future benefits and the 

present value of future normal cost contributions represents the actuarial liability at the plan member's 

current age.

Under the Projected Unit Credit Method (Benefit Accrual Method), the accrued liability is determined by 

calculating a benefit based on service earned to the valuation date with compensation projected to the 

expected retirement date (or other event), then discounting those amounts to the valuation date. The 

actuarial accrued liability for participants currently receiving payments is calculated as the actuarial present 

value of future benefits expected to be paid. 

For the purposes of determining the actuarial gains and losses during the year, liabilities as of 

October 1, 2020 for the Judges' Plan uses the prior year Effective Interest Rate. The liabilities for the Police 

Officers and Firefighters' and Teachers' Plans are based on 2020 spot rates implied by the 2019 spot rate 

yield curve. These spot rates used in gain/loss analysis were calculated by converting the 2019 spot rates to 

forward rates, removing the forward rate for FY 2020, and then converting the forward rates back to spot 

rates. See the table below for an example of the rates.

Fiscal Year 2019 Valuation Spot 

Rate Assumption

Forward Rate 

(rounded)

Implied 2020 Spot 

Rates used for 

(Gain)/Loss only

FY 2020 0.74% 0.74% N/A

FY 2021 0.94% 1.14% 1.14%

FY 2022 1.20% 1.72% 1.43%

FY 2023 1.47% 2.28% 1.71%

Example: 1.71% adjusted FY 2021 spot rate = (1.0114 x 1.0172 x 1.0228)^(1/3) - 1

Asset Valuation Method

The market value of assets projected to September 30, 2020 without smoothing is provided by ODCP and 

used for purposes of the valuation. When assets are subtracted from the actuarial liability the remainder 

represents the unfunded liability.

Funding Method

53

For Judges, the normal cost under the individual entry age normal method is a level percentage of pay. The 

normal cost is calculated by discounting the value of all expected benefits to a participant’s entry date and 

dividing by an increasing annuity reflecting anticipated salary increases from plan entry to expected exit ages. 

The normal cost to the Department of the Treasury is the full amount, less expected employee contributions. 

The funding method for the Police Officers and Firefighters' and Teachers' Plans is the projected unit credit 

method. No normal cost is payable for these participants as benefit service is frozen. For both methods, 

changes in actuarial assumptions, changes in plan provisions, and differences in actual experience compared 

to expected experience are reflected as part of the annual amount of gain or loss, which is a component of 

the total amortization of the Unfunded Accrued Liability.
APPENDIX A

Actuarial Assumptions and Methods

Methods

The prior amortization periods and payments are fixed from year-to-year. Because of this, the balances of 

prior amortization bases are recalculated each year to reflect changes in the underlying interest rates. New 

amortization payments due to (Gain)/Loss are recognized over a 10-year period, while those due to 

assumption changes are recognized over a period of 20 years. 

For the Police Officers and Firefighters', and Teachers' Plans, the outstanding amortization bases are recalculated each year using the new spot rates. For the Judges' Plan, the outstanding amortization bases are 

re-calculated each year at the new funding effective interest rate (EIR).

The asset (Gain)/Loss is determined using the same interest rates as the liability (Gain)/Loss.

Mortality Adjustment from Census Date to Valuation Date

The census data is adjusted from the date it is provided to the valuation date. A factor is applied to the 

liabilities calculated using the census data to account for the estimated mortality between the census date 

and the valuation date. 

Procedures

Financial and Census data were submitted by the Department of the Treasury. Information provided was 

reviewed for internal consistency and there is no reason to doubt its substantial accuracy.

No benefits of materiality were excluded from the valuation of the liabilities.

The Department of the Treasury provided us with data on actives who, as of the valuation date, had 

completed the plan's eligibility requirements.

54

Method Changes Since Last Year

None.
APPENDIX A

Actuarial Assumptions and Methods

Assumptions

Interest Rates The June 30, 2020 rates (averaged over 40 quarters, as published by the Department of 

he Treasury) shown below were used for the current valuation. The Police Officers and 

irefighters', and Teachers' Plans are measured using the full yield curve for the liability 

nterest rate, while the Judges' Plan is measured using the equivalent Effective Interest 

ate (EIR).

t

F

i

R

Duration Return Duration Return Duration Return Duration Return

0-1 0.82% 25-26 3.19% 50-51 3.47% 75-76 3.56%

1-2 0.96% 26-27 3.21% 51-52 3.47% 76-77 3.56%

2-3 1.17% 27-28 3.23% 52-53 3.48% 77-78 3.56%

3-4 1.39% 28-29 3.25% 53-54 3.48% 78-79 3.57%

4-5

5-6

6-7

7-8

8-9

9-10

10-11

11-12

12-13

13-14

14-15

15-16

16-17

17-18

18-19

19-20

20-21

21-22

22-23

23-24

24-25

1.61% 29-30

1.80% 30-31

1.97% 31-32

2.12% 32-33

2.25% 33-34

2.37% 34-35

2.48% 35-36

2.57% 36-37

2.64% 37-38

2.72% 38-39

2.78% 39-40

2.83% 40-41

2.88% 41-42

2.93% 42-43

2.97% 43-44

3.01% 44-45

3.04% 45-46

3.07% 46-47

3.11% 47-48

3.14% 48-49

3.16% 49-50

3.27% 54-55

3.29% 55-56

3.30% 56-57

3.31% 57-58

3.33% 58-59

3.34% 59-60

3.35% 60-61

3.36% 61-62

3.37% 62-63

3.38% 63-64

3.39% 64-65

3.40% 65-66

3.41% 66-67

3.41% 67-68

3.42% 68-69

3.43% 69-70

3.44% 70-71

3.44% 71-72

3.45% 72-73

3.46% 73-74

3.46% 74-75

3.49% 79-80

3.49% 80-81

3.50% 81-82

3.50% 82-83

3.50% 83-84

3.51% 84-85

3.51% 85-86

3.52% 86-87

3.52% 87-88

3.52% 88-89

3.53% 89-90

3.53% 90-91

3.53% 91-92

3.54% 92-93

3.54% 93-94

3.54% 94-95

3.55% 95-96

3.55% 96-97

3.55% 97-98

3.55% 98-99

3.56% 99-100

3.57%

3.57%

3.57%

3.58%

3.58%

3.58%

3.58%

3.58%

3.58%

3.59%

3.59%

3.59%

3.59%

3.59%

3.59%

3.60%

3.60%

3.60%

3.60%

3.60%

3.60%

The Effective Interest Rates (single rate that produces the same results when applied to all 

cash flows) for all plans are as follows:

Police Fire Teachers Judges

EIR 2.77% 2.76% 2.60% 2.91%

Interest Rates for 

(Gain)/Loss

The same interest rates were used for purposes of rolling forward plan assets and rolling 

forward plan liabilities for determining gains and losses. For Judges, the 2019 EIR (3.12%) 

was used for this purpose. For Police, Fire and Teachers, the first spot rate from the 2019 

spot rate curve (0.74%) was used for this purpose.

Economic 

Assumptions Police Fire Teachers Judges

COLA1 1.76% 1.76% 1.71% 1.52%

Wage Inflation 2.15% 2.20% 2.30% 0.94%

1

The Cost-of-Living Adjustment (COLA) assumption above does not apply to police officers and 

firefighters who retired prior to February 15, 1980, as they receive COLAs based on wage inflation.

55
APPENDIX A

Assumptions

Actuarial Assumptions and Methods

Salary Growth The additional salary increases (on top of the general wage increases for all actives as 

shown in the above table) are shown below:

Years of 

Service Police Fire Teachers Judges

20 8.00% 5.50% 2.00% 0.00%

21 0.50% 1.50% 1.00% 0.00%

22 0.50% 1.50% 1.00% 0.00%

23 0.50% 1.50% 1.00% 0.00%

24 0.50% 1.50% 1.00% 0.00%

25 3.00% 4.40% 1.00% 0.00%

26 0.50% 1.20% 1.00% 0.00%

27 0.50% 1.20% 1.00% 0.00%

28 0.50% 1.20% 1.00% 0.00%

29 0.50% 1.20% 1.00% 0.00%

30 3.00% 5.70% 0.60% 0.00%

31+ 0.25% 1.30% 0.60% 0.00%

Police officers receive longevity increases of 5% of step 1 pay in the officers’ pay class 

after 15 years of service and additional increases of 5% of step 1 pay in the officers’ pay 

class after 20, 25 and 30 years of service. Longevity pay is included in pensionable 

compensation once the member has 25 years of service. Police officers receive an 

additional increase of 5% of base pay for the Base Retention Differential after 20 years of 

service.

Firefighters are assumed to receive longevity increases of 5%, 10%, 15%, and 20% 

applied to base pay after 15, 20, 25, and 30 years of service, respectively, and are 

included in pensionable compensation for all years.

Active Plan Member 

Base Mortality

● Police Officers and Firefighters: Pub-2010 Public Safety Employee, Above-Median

Income

● Teachers: Pub-2010 Teacher Employee, Above-Median Income

● Judges: Pub-2010 General Employee, Above-Median Income

Retired Plan 

Member Base 

Mortality

● Police Officers and Firefighters: Credibility Adjusted Pub-2010 Public Safety Healthy

Retiree, Above-Median Income

● Teachers: Credibility Adjusted Pub-2010 Teacher Healthy Retiree, Above-Median Income

● Judges: Pub-2010 General Healthy Retiree, Above-Median Income

56
APPENDIX A

Assumptions

Actuarial Assumptions and Methods

Beneficiary - 

Surviving Spouse 

Member Base 

Mortality

● Police Officers and Firefighters: Credibility Adjusted Pub-2010 Contingent Survivor,

Above-Median Income

● Teachers: Credibility Adjusted Pub-2010 Contingent Survivor, Above-Median Income

● Judges: Pub-2010 Contingent Survivor, Above-Median Income

Beneficiary - NonDisabled Child 

Member Base 

Mortality

● Police Officers and Firefighters: Age 0-17, Pub-2010 Juvenile; Age 18+, Pub-2010

General Healthy Employee, Above-Median Income

● Teachers: Age 0-17, Pub-2010 Juvenile; Age 18+, Pub-2010 General Healthy Employee,

Above-Median Income

Disabled Plan 

Member Base 

Mortality

● Police Officers and Firefighters: Credibility Adjusted Pub-2010 Public Safety Disabled

Retiree, Full Data Set

● Teachers: Pub-2010 Teacher Disabled Retiree, Full Data Set

● Judges: Pub-2010 General Disabled Retiree, Full Data Set

Beneficiary - 

Disabled Child 

Member Base 

Mortality

● Police Officers and Firefighters: Age 0-17, Pub-2010 Juvenile; Age 18+, Pub-2010

General Disabled Retiree, Full Data Set

● Teachers: Age 0-17, Pub-2010 Juvenile; Age 18+, Pub-2010 General Disabled Retiree,

Full Data Set

Longevity 

Improvement 

Projection Scale

Mortality tables are adjusted using generational projection from 2010 using Scale MP-2019.

Mortality 

Adjustment from 

Census Date to 

Valuation Date

The liabilities are adjusted to account for mortality during the 5 month period between the 

census collection date of May 1, 2020 and the valuation date of October 1, 2020. The 

liabilities for inactive plan members in the Police Officers and Firefighters' Plan are 

decreased by 0.1441% per month (0.992795 factor applied).The liabilities for inactive plan 

members in the Teachers' Plan are decreased by 0.1808% per month (0.990960 factor 

applied). The liabilities for inactive plan members in the Judges' Plan are reduced by 

0.1987% per month (0.990065 factor applied). The liabilities for active plan members are 

unadjusted.

57
APPENDIX A

Assumptions

Actuarial Assumptions and Methods

Disability No disabilities are assumed among Judges.

Below are sample rates of disability assumed to occur:

Age Police Fire Teachers Judges

30-34 0.000% 0.000% 0.070% 0.000%

35-39 0.000% 0.000% 0.120% 0.000%

40-44 0.500% 0.500% 0.128% 0.000%

45-49 0.150% 0.100% 0.208% 0.000%

50-54 0.100% 0.100% 0.500% 0.000%

55-59 0.000% 0.000% 0.800% 0.000%

60-64 0.000% 0.000% 0.800% 0.000%

65+ 0.000% 0.000% 0.000% 0.000%

Note that the Federal portion of the disability benefits for police officers and firefighters is 

the same for service and non-service related disabilities. Therefore, an assumption on 

percentage of service related disabilities was not necessary. All incidents of disability were 

assumed to result in plan members being 100% disabled.

Retirement Age Retirement is assumed to occur in accordance with the table below:

Age Police- Police- Fire Teachers Judges Male Female

50 55% 65% 55% 0% 0%

51 30% 40% 30% 0% 0%

52 30% 40% 30% 0% 0%

53 30% 40% 30% 0% 0%

54 30% 40% 30% 0% 0%

55 30% 40% 30% 25% 0%

56 30% 40% 30% 25% 0%

57 30% 40% 30% 25% 0%

58 30% 40% 30% 25% 10%

59 30% 40% 40% 25% 10%

60 100% 100% 100% 40% 10%

61 100% 100% 100% 25% 10%

62 100% 100% 100% 30% 10%

63 100% 100% 100% 25% 10%

64 100% 100% 100% 25% 10%

65 100% 100% 100% 30% 10%

66 100% 100% 100% 30% 10%

67 100% 100% 100% 30% 10%

68 100% 100% 100% 30% 10%

69 100% 100% 100% 30% 10%

70 100% 100% 100% 100% 100%

71+ 100% 100% 100% 100% 100%

Return of Employee

Contributions

In valuing return of contribution benefits for employees assumed to die without a spouse 

or to terminate and elect a refund of their contribution balance, the employee contributions 

balance was estimated based on the actual employee contribution balance when available 

(provided as of the census date for the Judges' Plan and July 1, 1998 for the other plans), 

otherwise using estimated prior salaries. The actual contribution amount for Judges is used 

to project the hypothetical employee contribution refund due. 

58
APPENDIX A

Actuarial Assumptions and Methods

Assumptions

Post Retirement 

Contributions

Retired Judges may elect to contribute 3.5% or 7.0% of their retirement benefit to provide 

a survivor benefit. The net amount of this benefit was included in benefit payments and 

projections, and the normal cost was not offset by these contributions. 

Expenses The 15-Year Fund projections for all plans use expense projections provided by the 

Department of the Treasury. The 15-Year Fund projections for the Judges’ Plan assumes 

employee contribution increases at the same rate as pay for actives.

Spousal Age ● Police Officers and Firefighters and Teachers: Male spouses are assumed to be two

years older than their female spouse when actual beneficiary data was unavailable.

● Judges: Male spouses are assumed to be three years older than their female spouse

when actual beneficiary data was unavailable.

Effective Form of 

Payment Election

● Police Officers and Firefighters: 70% of plan members are assumed to receive a

Joint-and-57% Survivor Annuity, and 30% of plan members are assumed to receive

a Single Life Annuity. Any additional survivor benefit for police officers and

firefighters whose average pay was less than class 1, step 6 pay was not valued.

● Teachers: 100% of active and terminated vested plan members were valued assuming

benefits are payable as a Single Life Annuity. For retirees, 5% were assumed to

elect a Joint-and-55% Survivor Annuity, 20% to elect a Joint-and-25% Survivor

Annuity, and 75% to elect a Straight Life Annuity.

● Judges: Judges who have elected survivor benefits are assumed to have a

covered spouse with a Joint-and-55% Survivor Annuity. All others assumed to

have a Single Life Annuity.

Open Group 

Projections for 

Judges

All active judges were assumed to be replaced upon termination from the plan. The 

replacement is based on a 50/50 blend of a new age 45 judge and a new age 55 judge, 

assuming 50% male and 50% female. The starting salary is assumed to be $216,400 for 

all new entrants. 

Data This actuarial valuation has been prepared based upon plan member data provided by the 

Department of the Treasury. We have reviewed the data for reasonableness, but have not 

independently audited the data. We have no reason to believe the data is not complete 

and accurate, and know of no further information that is essential to the preparation of the 

actuarial valuation.

59
APPENDIX A

Actuarial Assumptions and Methods

Assumptions

Changes from Prior 

Report

Interest Rate

The interest rate assumption was changed to reflect average quarterly Treasury yield rates 

for the 10-year period ending on June 30, 2020. The June 30, 2019 rates (averaged over 

40 quarters, as published by the Department of the Treasury) shown below were used for 

the prior valuation of the Police Officers and Firefighters', and Teachers' Plans. The prior 

year EIR for the Judges' Plan was 3.12%.

rationDu Return Duration Return Duration Return Duration Return

0-1 0.74% 25-26 3.45% 50-51 3.71% 75-76 3.79%

1-2 0.94% 26-27 3.47% 51-52 3.71% 76-77 3.80%

2-3 1.20% 27-28 3.49% 52-53 3.72% 77-78 3.80%

3-4 1.47% 28-29 3.51% 53-54 3.72% 78-79 3.80%

4-5 1.73% 29-30 3.52% 54-55 3.73% 79-80 3.80%

5-6 1.96% 30-31 3.54% 55-56 3.73% 80-81 3.80%

6-7 2.16% 31-32 3.55% 56-57 3.74% 81-82 3.81%

7-8 2.34% 32-33 3.56% 57-58 3.74% 82-83 3.81%

8-9 2.49% 33-34 3.58% 58-59 3.74% 83-84 3.81%

9-10 2.63% 34-35 3.59% 59-60 3.75% 84-85 3.81%

10-11 2.74% 35-36 3.60% 60-61 3.75% 85-86 3.81%

11-12 2.84% 36-37 3.61% 61-62 3.75% 86-87 3.82%

12-13 2.93% 37-38 3.62% 62-63 3.76% 87-88 3.82%

13-14 3.00% 38-39 3.63% 63-64 3.76% 88-89 3.82%

14-15 3.06% 39-40 3.63% 64-65 3.76% 89-90 3.82%

15-16 3.12% 40-41 3.64% 65-66 3.77% 90-91 3.82%

16-17 3.17% 41-42 3.65% 66-67 3.77% 91-92 3.82%

17-18 3.21% 42-43 3.66% 67-68 3.77% 92-93 3.83%

18-19 3.25% 43-44 3.66% 68-69 3.77% 93-94 3.83%

19-20 3.28% 44-45 3.67% 69-70 3.78% 94-95 3.83%

20-21 3.32% 45-46 3.68% 70-71 3.78% 95-96 3.83%

21-22 3.35% 46-47 3.69% 71-72 3.78% 96-97 3.83%

22-23 3.38% 47-48 3.69% 72-73 3.79% 97-98 3.83%

23-24 3.40% 48-49 3.70% 73-74 3.79% 98-99 3.83%

24-25 3.42% 49-50 3.70% 74-75 3.79% 99-100 3.84%

COLA/Wage Inflation

Police Fire Teachers Judges

Prior Year

COLA 1.80% 1.80% 1.82% 1.36%

Wage Inflation 1.95%2 2%2 2.30% 0.83%

2

In the prior valuation the wage inflation assumption for the Police was set to 3.50% in FY 

2020 and for the Fire was set to 2.00% in FY 2020 to reflect the most recent contract 

negotiation.

60

Longevity Improvement Projection Scale

The mortality projection scale for all plans was updated from Scale MP-2018 to Scale 

MP-2019. 
APPENDIX B

Rationale

Methods

Funding 

Method

SFFAS 5 permits the use of a funding method other than the Aggregate Entry Age 

Normal method if an explanation is provided and the difference in results are 

immaterial. 

The Judges’ Plan uses Individual Entry Age Normal method to develop the accrued 

liability and normal costs. The differences in results between Aggregate and 

Individual Entry Age Normal methods are very small and the Individual Entry Age 

Method provides more detail by individual for the movements in the liability.

The Police Officers and Firefighters' and the Teachers' Plans use the Projected Unit 

Credit (“PUC”) Method in place of the Entry Age Normal Method (“EAN”). Although 

the plans do not have future service accruals, the EAN method would defer a 

portion of past service into the future and thereby generating a normal cost until 

all actives have decremented. The PUC method better recognizes that all service 

has been fully accrued by participants, and attributes the anticipated change in 

compensation to that accrued service. This approach does not defer a portion of 

past service into the future, and therefore does not generate a normal cost. The 

PUC method aligns to the annual payment required for the plan under the 

Balanced Budget Act of 1997 (Pub. Law 105-33).

Interest Rate 

Application

61

To calculate the present value of plan members’ benefits for the Police Officers 

and Firefighters', and Teachers' Plans, spot rates were used in accordance with 

SFFAS 5 and SFFAS 33. For the Judges’ Plan, an Effective Interest Rate (EIR) was 

used. The EIR is the single interest rate calculated to provide the same present 

value of benefits as the spot rates and allows for the appropriate liability 

calculation using the Entry Age Normal Funding Method with an active population.
APPENDIX B

Rationale

Assumptions

Interest Rates and 

Economic 

Assumptions

The underlying interest rate, inflation, Cost-of-Living Adjustment (based on 10-year 

averages), and wage inflation assumptions (based on the 10-year average of actual 

negotiated pay increases) were prescribed by the Department of the Treasury, based on 

their analysis of investments and historical experience, and are intended to comply with 

SFFAS 5 and 33. 

Interest Rates for 

(Gain)/Loss

The use of EIR for the Judges' Plan produced the same Present Value of Benefits as is 

produced using the yield curve. For an active plan, the EIR is used for the period of time 

between plan member entry and the valuation date. The EIR is a good proxy for long 

term discount rate because it captures the weighted cash flows of the yield curve as a 

single rate. The use of the first spot rate for the other plans reflects the most relevant 

expectation of the discount rate over the course of the prior year.

Salary Growth

Base Mortality 

Table

The underlying salary growth assumptions are based upon expectations of plan 

experience and the most recent experience study conducted in 2019.

The base mortality tables were adjusted to reflect actual plan experience during the 

most recent experience study conducted in 2019.

Longevity 

Improvement 

Projection Scale

The MP-2019 projection scale reflects the most recently developed mortality 

improvement outlook from the Society of Actuaries.

Mortality 

Adjustment from 

Census Date to 

Valuation Date

The adjustment to the liability to account for assumed mortality experience during the 

gap between the census collection date and the valuation date is based on the most 

recent experience study conducted in 2019. 

Disability Rates Rates of disablement for included actives are based upon expectations of plan 

experience and the most recent experience study conducted in 2019.

Withdrawal Rates Rates of withdrawal for included actives are based upon broad termination patterns and 

expectations of plan experience and the most recent experience study conducted in 

2019.

Retirement Rates Rates of retirement for included actives are based upon broad retirement patterns and 

expectations of plan experience and the most recent experience study conducted in 

2019.

Expenses The 15-Year Fund projections for all plans use expense projections provided by the 

Department of the Treasury. Due to the active nature of the Judges' Plan, employee 

contributions have a further increase factor to account for increases in pay rate for 

actives.

62
APPENDIX B

Rationale

Assumptions

Spousal Age The marriage assumptions are based on expectations of plan experience and the most 

recent experience study conducted in 2019.

Effective Form of 

Payment Election

The benefit form election assumptions are based on expectations of plan experience and 

the most recent experience study conducted in 2019.

Open Group 

Projections

Open group projections are based upon expectations of plan experience.

Benefits Not 

Valued

The refund of unexpended employee contributions was not valued for the Police Officers 

and Firefighters' and the Teachers' Plans payable to retirees who died without eligible 

surviving beneficiaries. The Department of the Treasury is only responsible for the 

balance as of June 30, 1997 without interest; therefore, this liability, if any, was 

deemed immaterial. 

Survivor benefits for the Teachers' Plan are not valued for deferred benefits. The 

Teachers Plan provides a reduction for Joint-and-Survivor benefits; therefore, the 

actuarial value of the life annuity is similar to the actuarial value of the Joint-andSurvivor annuity. Surviving children’s benefits for active plan members in the Police 

Officers and Firefighters' Plan are valued indirectly, by assuming a Joint-and-57% 

Survivor annuity for married plan members.

For the Judges' Plan, plan members are due a refund of the portion of their employee 

contribution balance due to the coverage of a spouse in the event that their spouse 

predeceases them. This has not been valued to the complexity and low probability of 

occurrence.

63
APPENDIX C

Plan Provisions Summary 

Police Officers and Firefighters' Plan

Plan Year October 1 - September 30

Eligibility for 

Participation

All police officers and firefighters of the District of Columbia automatically become plan 

members on their date of employment. Police Cadets are not eligible.

Contributions Plan members hired before November 10, 1996 are required to contribute 7% of annual 

salary, including any differential for special assignment, but excluding overtime, longevity, 

holiday, or military pay. Plan members hired on or after November 10, 1996 contribute 

8% of annual salary, including any differential for special assignment, but excluding 

overtime, holiday, or military pay. Interest is not credited to each plan member’s 

accumulated contributions.

Emerging inactive plan members not eligible for additional benefits will receive a refund of 

their contributions. 

Departmental 

Service

A plan member receives service for each full year and additional months of employment 

with either the Metropolitan Police Force or the D.C. Fire Department. Only service earned 

prior to July 1, 1997 is used to compute the plan benefits.

Credited Service Service granted or purchased in addition to departmental service.

Final Average 

Annual Earnings

For those hired before February 15, 1980, basic pay for the highest 12 consecutive 

months. For those hired on or after February 15, 1980, basic pay for the highest 36 

consecutive months divided by three.

Longevity Pay - 

Police Officers

Plan members who complete 25 years of active service prior to retirement are entitled to 

have longevity pay included in pensionable compensation.

Plan members hired before February 15, 1980, who complete 20 but less than 25 years of 

active service prior to retirement, are entitled to have longevity pay included in 

pensionable compensation (as this benefit adjustment was not included in June 30, 1997 

plan provisions governing federal benefits, the District funds this benefit adjustment).

Normal form of 

benefit

Straight Life Annuity (no eligible spouse survivor); Joint-and-Survivor Annuity (eligible 

spouse survivor)

Optional form of 

benefit

Optional Additional Survivor Benefit:

If elected by the plan member, the retiree benefit is reduced by 10% and the survivor is 

entitled to an additional survivor benefit equal to the amount of the benefit reduction; 

except the additional survivor benefit is reduced by 5% for each full five years the 

survivor is younger than the plan member, with this reduction not to exceed 40%.

64
APPENDIX C

Plan Provisions Summary 

Police Officers and Firefighters' Plan

Cost-of-Living 

Adjustments

Former employees (not beneficiaries) who retired prior to February 15, 1980, receive 

equalization, defined as a percentage increase in benefits equal to the percentage 

increase in pay active employees receive.

All other retired plan members and their survivors receive an increase April 1 each year 

based on the annual change in the Consumer Price Index (All Urban Consumers) from 

December to December. The annual increase will not be less than 0% for any plan 

member, and is limited to a maximum of 3% for plan members hired on or after 

November 10, 1996.

The cost-of-living adjustment for plan members disabled after June 30, 1997 and not 

eligible for an optional retirement benefit starts only with the payment of the Federal 

portion of the benefit at age 55.

Retirement 

Benefits

Optional 

Retirement Date

For plan members hired before November 10, 1996:

● Age 60; or

● Age 50 with 25 years of departmental service; or

● No age requirement with 20 years of service (only if hired before

February 15, 1980.)

For plan members hired on or after November 10, 1996:

● Age 60; or

● No age requirement with 25 years of service.

Optional 

Retirement Benefit

For plan members hired before November 10, 1996:

● 2.5% of Average Pay times departmental service up to 25 years (20 years

if hired before February 15, 1980), plus

● 3.0% of Average Pay times departmental service over 25 (or 20) years, plus

● 2.5% of Average Pay times credited service.

For plan members hired on or after November 10, 1996:

● 2.5% of Average Pay times total service.

For all plan members, there is a maximum benefit of 80% of Average Pay. Service after 

June 30, 1997 is excluded from the calculation of the Federal portion of the benefit.

Vesting 5 years of departmental service. 

Deferred Vested 

Benefit

Optional Retirement Benefit beginning at age 55. 

65
APPENDIX C

Plan Provisions Summary 

Police Officers and Firefighters' Plan

Disability Benefits

Service-Related 

Disability Benefit 

Eligibility

Plan members who are disabled as a result of an illness or injury in the line of duty are 

eligible for this benefit. If disabled after June 30, 1997 and not eligible for an optional 

retirement benefit, the Federal portion of this benefit is payable beginning at age 55.

Service-Related 

Disability Benefit

For plan members hired before February 15, 1980, 2.5% of Average Pay times total years 

of service, subject to a minimum benefit of 66-2/3% of Average Pay and subject to a 

maximum benefit of 70% of Average Pay.

For plan members hired on or after February 15, 1980, 70% of final pay times percentage 

of disability, subject to a minimum benefit of 40% of final pay.

The Federal portion of this benefit is a deferred vested benefit payable upon attainment of 

age 55, unless the conditions for optional retirement are met, in which case the Federal 

portion of this benefit is an optional retirement benefit. Service after 

June 30, 1997 is excluded from this calculation.

Non-ServiceRelated Disability 

Benefit Eligibility

Eligible with 5 years of departmental service and a physical or mental disability that 

prevents the plan member from performing his/her job. If disabled after June 30, 1997 

and not eligible for an optional retirement benefit, the Federal portion of this benefit is 

payable beginning at age 55.

Non-ServiceRelated Disability 

Benefit

For plan members hired before February 15, 1980, 2.0% of Average Pay times total years 

of service, subject to a minimum benefit of 40% of Average Pay and subject to a 

maximum benefit of 70% of Average Pay.

For plan members hired on or after February 15, 1980, 70% of Final Pay times 

percentage of disability, subject to a minimum benefit of 30% of Final Pay.

The Federal portion of this benefit is a deferred vested benefit payable upon attainment of 

age 55, unless the conditions for optional retirement are met, in which case the Federal 

portion of this benefit is an optional retirement benefit. Service after 

June 30, 1997 is excluded from this calculation.

66
APPENDIX C

Plan Provisions Summary 

Police Officers and Firefighters' Plan

Death Benefits

Lump Sum Death 

Benefit

Lump sum of $50,000 payable for death occurring in the line of duty, provided the death 

is not the result of willful misconduct or by intention to bring about his/her own death.

Survivor Benefit 

(Spouse Only) - 

Death Outside Line 

of Duty after 

12/29/93

Eligible upon death and, if retired, married for at least one year or have a child by the 

marriage. The benefit will be 40% of the greater of Average Pay and the salary for class 

1, step 6 of the D.C. Police and Firemen’s Salary Act in effect at the date of death, 

adjusted for cost-of-living increases if death occurs after retirement. The benefit cannot 

exceed the rate of pay for the position occupied at death (or retirement if death occurs 

after retirement.)

Survivor Benefit 

(Spouse Only) - 

Death In Line of 

Duty after 

12/29/93

Eligible upon death in the line of duty. The benefit will be 100% of final pay. The Federal 

portion of this benefit is 40% of average pay per June 30, 1997 plan provisions.

Survivor Benefit - 

Spouse and 

Dependent 

Children

Eligibility for the spouse is the same as Spouse Only benefit; for the children, unmarried 

and under 18 (22 if full-time student), or any child dependent because of a disability 

incurred before age 18.

Spouse benefit as described above, plus, provided death does not occur in the line of 

duty, a benefit per child (payable until the children are no longer eligible) equal to the 

smallest of:

● 60% of Average Pay divided by the number of eligible children;

● $4,344 ($4,248 if hired on or after November 1, 1996) - Federal portion is $1,548;

or

● $13,032 ($12,744 if hired on or after November 1, 1996) divided by the number of

children - Federal portion is $4,644.

These amounts are increased annually based on cost-of-living adjustments.

Survivor Benefit - 

Dependent 

Children Only

Eligibility is same as the Dependent Children benefit above. The benefit will be 75% of 

Average Pay divided by the number of eligible children, adjusted for cost-of-living 

increases.

Refund of 

Contributions

Refund contributions if death before retirement and no eligible spouse or children. All plan 

member contributions will be refunded to a named, or statutorily-designated if none 

named, beneficiary.

Changes Since 

Prior Valuation

None of which we are aware.

67
APPENDIX C

Plan Provisions Summary

Teachers' Plan

Plan Year October 1 - September 30

Eligibility for 

Participation

Permanent, temporary, and probationary teachers for the District of Columbia public day 

schools become plan members automatically on their date of employment. Other 

employees covered by the Retirement of Public School Teachers Act – including librarians, 

principals, and counselors – also become plan members on their date of employment. 

Substitute teachers and employees of the Department of School Attendance and Work 

Permits are not covered. Some former D.C. teachers working at charter schools are 

eligible to remain in the Plan.

Contributions Plan members hired before November 1, 1996 are required to contribute 7% of annual 

pay. Plan members hired on or after November 1, 1996 contribute 8% of annual pay.

Emerging inactive plan members not eligible for additional benefits will receive a refund of 

their contributions without interest.

School Service One year of school service is granted for each year of employment with the D.C. public 

day schools.

Credited Service Service granted or purchased in addition to school service.

Final Average 

Annual Earnings

Highest 36 consecutive months of pay, divided by three.

Optional forms of 

benefit

Reduced Annuity with a Maximum Survivor Annuity (to Spouse)

The original benefit is reduced by 2.5% of annual pension up to $3,600, plus 10% of any 

amount over $3,600. Spouse will receive 55% of Unreduced Annuity.

Reduced Annuity with a Partial Survivor Annuity (to Spouse)

An annuity with a benefit payable to the spouse of between $1 up to any amount less 

than 55% of the Unreduced Annuity. The original benefit is reduced by dividing the 

amount of the survivor’s annuity by 55%, then reducing the original benefit by 2.5% of 

this amount up to $3,600, plus 10% of any amount over $3,600.

Reduced Annuity with a Survivor Annuity to a Person with an Insurable Interest

A joint and 55% survivor annuity with the original benefit reduced 10% plus an additional 

5% for each full 5 years, up to 25 years, the survivor is younger, with a total reduction of 

40% for any survivor who is 25 or more years younger.

Reduced Annuity with a Life Insurance Benefit

Benefits are reduced to provide a lump sum life insurance benefit to a designated 

beneficiary.

68
APPENDIX C

Plan Provisions Summary

Teachers' Plan

Cost-of-Living 

Adjustments

All plan members receive an increase on April 1 each year based on the annual change in 

the Consumer Price Index (all items – U.S. City average) from December to December. 

The annual increase will not be less than 0% for any plan member, and is limited to 3.0% 

for plan members hired on or after November 1, 1996. The cost-of-living adjustment for 

plan members who become disabled after June 30, 1997 starts only with the payment of 

the federal portion of the benefit at age 62.

Retirement 

Benefits

Voluntary 

Retirement Date

For plan member hired before November 1, 1996, earliest of:

● Age 62 with 5 years of school service;

● Age 60 with 20 years of total service, including 5 years of school service;

● Age 55 with 30 years of total service, including 5 years of school service.

For plan member hired on or after November 1, 1996, earliest of:

● Age 62 with 5 years of school service;

● Age 60 with 20 years of total service, including 5 years of school service;

● Any age with 30 years of total service, including 5 years of school service.

Voluntary 

Retirement Benefi

For plan member hired before November 1, 1996:

t ● 1.5% of Average Pay times service up to 5 years, plus;

● 1.75% of Average Pay times service between 5 and 10 years, plus

● 2.0% of Average Pay times service over 10 years.

For plan member hired on or after November 1, 1996:

● 2.0% of Average Pay times service.

For all plan members, there is a minimum benefit of 1.0% of Average Pay plus $25 for 

each year of service. 

Service after June 30, 1997 is excluded from the calculation of the Federal portion of the 

benefit.

Involuntary 

Retirement Date

Retired involuntarily for reasons other than misconduct or delinquency with:

● 25 years of total service, including 5 years of school service; or

● Age 50 with 20 years of total service, including 5 years of school service.

Involuntary 

Retirement 

Amount

Voluntary Retirement Benefit is reduced by 1/6% per month (2% per year) for each full 

month that the date of retirement precedes age 55.

Vesting 5 years of school service.

Deferred Vested 

Benefit

The benefit amount is calculated as a Voluntary Retirement Benefit beginning at age 62, 

based on service earned as of the termination of employment.

69
APPENDIX C

Plan Provisions Summary

Teachers' Plan

Disability Benefits

Disability Benefit 

Eligibility

5 years of school service and a physical or mental disability that prevents the plan 

member from performing the job.

Disability Benefit Voluntary Retirement benefit, subject to a minimum of the lesser of 40% of Average Pay 

and the benefit that the plan member would receive, projecting service to age 60. If 

disabled after June 30, 1997 and not eligible for voluntary retirement, the Federal portion 

of this benefit is a deferred vested benefit payable upon attainment of age 62. Service 

after June 30, 1997 is excluded from this calculation.

Death Benefits

Lump Sum Death 

Benefit - No 

Survivor

Teachers who die before retirement and before completing 18 months of school service or 

who die without an eligible spouse, child, or parent, will receive a lump sum death benefit. 

The benefit will be a refund of plan member contributions without interest.

Survivor Benefit - 

Spouse Only

Teachers who die before retirement and were married for at least two years or have a 

child by the marriage will provide their survivors a benefit. The benefit will be 55% of the 

Voluntary Retirement benefit subject to minimums.

Survivor Benefit - 

Spouse and 

Dependent 

Children

Eligibility for the spouse is the same as Spouse Only benefit; for the children, unmarried 

and under 18 (22 if a full-time student); or any child dependent because of a disability 

incurred before age 18. Death does not have to occur before retirement for the children’s 

benefits. The benefit will be:

Spouse benefit as described above, plus a benefit per child (payable until the children are 

no longer eligible) equal to the smallest of:

● 60% of Average Pay divided by the number of eligible children;

● $7,380 (if hired before January 1, 1980), $7,116 (if hired between

January 1, 1980 and October 31, 1996), or $6,948 (if hired on or after

November 1, 1996) per child; or

● $22,140 (if hired before January 1, 1980), $21,348 (if hired between

January 1, 1980 and October 31, 1996), or $20,844 (if hired

on or after November 1, 1996) divided by the number of children.

These amounts are increased annually based on cost-of-living adjustments.

70
APPENDIX C

Plan Provisions Summary

Teachers' Plan

Survivor Benefit - 

Dependent 

Children Only

Eligibility is the same as for the children’s benefit when there is a surviving spouse.

Benefit Amount

Per child (payable until the children are no longer eligible), the smallest of:

● 75% of Average Pay divided by the number of eligible children;

● $9,024 (if hired before January 1, 1980), $8,688 (if hired between

January 1, 1980 and October 31, 1996), or $8,412 (if hired on or after

November 1, 1996) per child; or

● $27,072 (if hired before January 1, 1980), $26,064 (if hired between

January 1, 1980 and October 31, 1996), or $25,236 (if hired on or after

November 1, 1996) divided by the number of children.

These amounts are increased annually based on cost-of-living adjustments.

Survivor Benefit - 

Surviving Parents 

Only

Eligible if death before retirement and no eligible spouse or children, and parents receive 

at least one-half of their total income from the plan member. The benefit will be the same 

as the Surviving Spouse benefit.

Changes Since 

Prior Valuation

None of which we are aware.

71
APPENDIX C

Plan Provisions Summary 

Judges' Plan

Plan Year October 1 - September 30

Eligibility for 

Participation

All Judges of the District of Columbia Court of Appeals or the Superior Court are members 

in the plan. The Executive Officer of the Court System is also eligible.

Contributions All Judges contribute 3.5% of their salaries to the Fund. Judges electing survivor coverage 

pay an additional 3.5% of annual salary (or retirement benefit if retired). Plan member 

contributions for survivor coverage do not end at retirement.

Emerging inactive plan members not eligible for additional benefits will receive a refund of 

their contributions without interest.

Judicial Service A plan member receives credit for each full year and additional months of employment as 

a Judge with the District of Columbia Courts.

Credited Service Service granted or purchased in addition to judicial service.

Cost-of-Living 

Adjustments

All pensioners will receive cost-of-living increases in line with those applicable to retirees 

in the Civil Service Retirement System. Cost-of-living adjustments are paid on January 1.

Retirement 

Benefits

Regular 

Retirement 

Date

Earlier of:

● Age 50 with 20 years of Judicial Service; or

● Age 60 with 10 years of Judicial Service.

Regular 

Retirement 

Benefit

Basic salary at retirement times the ratio of Judicial Service to 30, plus

An additional benefit for any Credited Service (non Judicial) as follows:

● 1.50% of basic salary times Credited Service up to 5 years, plus

● 1.75% of basic salary times Credited Service from 5 to 10 years, plus

● 2.00% of basic salary times Credited Service in excess of 10 years.

The maximum total benefit is 80% of basic salary.

Vesting 10 years of Judicial Service.

72
APPENDIX C

Plan Provisions Summary 

Judges' Plan

Mandatory 

Retirement 

Date

Mandatory retirement is at age 74. 

Early 

Retirement 

Eligibility

Age 55 with 10 years of Judicial Service.

Early 

Retirement 

Benefit

1/12% per month prior to age 60 reduction in Judicial Service benefit.

Deferred 

Vested Benefit

The deferred vested benefit is the same as the Early Retirement Benefit beginning at age 

55 or the Regular Retirement Benefit beginning at age 60, but only reflecting service to 

the date of employment termination.

Disability Benefits

Disability 

Benefit 

Eligibility

A plan member is eligible for disability retirement after 5 years of Judicial and Credited 

Service and becoming physically or mentally disabled to an extent that interferes with 

proper performance of judicial duties. No service requirement applies to involuntary 

disability retirement.

Disability 

Benefit

Regular Retirement Benefit, subject to a minimum of 50% of basic salary (if an 

involuntary disability retirement).

Death Benefits

Survivor 

Benefit 

Eligibility

Judges who contribute an additional 3.5% of salary during their working career and during 

retirement will provide a survivor benefit to their surviving spouse and/or children. The 

judge must also have completed at least 5 years of Judicial and Credited Service, and 

have been married for 2 years or have a child by marriage. A refund of excess 

contributions, less benefits paid to the retiree, will be paid if there are no eligible 

survivors.

Survivor 

Benefit

Spouse Benefit:

If judge was retired, 55% of the benefit the judge was receiving. If judge was active, 

55% of the benefit the judge would have received had the judge retired on the day prior 

to death, not less than 55% of the benefit that would be provided to a judge with 15 

years of Judicial Service without adjustment for early retirement.

Dependent Children Benefit:

A benefit will be paid to the children under the age of 18 (22 if full time student), or to 

any unmarried child incapable of self-support due to a disability which occurred before age 

18. Benefit per child is the smallest of:

● 50% of the spouse's annuity

● $6,464.88 ($7,759.08 if no spouse benefits apply) as of 12/01/2019,

increased annually

● $19,394.64 ($23,277.24 if no spouse benefits apply) divided by the number of

children as of 12/01/2019, increased annually.

Changes Since 

Prior Valuation

None of which we are aware.