CAFR - sdcera

C O S T M E T H O D S & A S S U M P T I O N S / A C T U A R I A L
Rates of separation from active membership are shown below. This assumption measures the
probabilities of members remaining in employment. Starting with the June 30, 1997 valuation,
all employees, eligible to retire, are assumed to not withdraw accumulated member contributions
upon separation from service.
It is also assumed that 35% of General and 40% of Safety separating active members will
continue employment with a reciprocal employer. Reciprocal members are assumed to receive
5.0% compensation increases per annum.
In March of 2004, SDCERA’s Board adopted The Segal Group’s recommendations regarding
changes to the Retirement Probability Rates, Post-Mortality Rate, Termination, Disability
Incidence Rates, and Individual Salary Increases. On May 6, 2004, the Board also adopted
Segal’s recommendations on changes to the Employee Contribution Rate.
DISABILITY RATES
Non Service Connected Disability
Service Connected Disability
General Members Safety General Members Safety
Age Male Female Members Male Female Members
20 0.00% 0.00% 0.00% 0.01% 0.00% 0.03%
25 0.00% 0.00% 0.00% 0.01% 0.01% 0.08%
30 0.01% 0.01% 0.04% 0.02% 0.04% 0.22%
35 0.02% 0.03% 0.06% 0.04% 0.08% 0.48%
40 0.03% 0.08% 0.06% 0.11% 0.16% 0.72%
45 0.06% 0.13% 0.08% 0.19% 0.23% 0.92%
50 0.10% 0.18% 0.10% 0.30% 0.28% 1.48%
55 0.17% 0.23% 0.10% 0.38% 0.33% 2.28%
60 0.23% 0.28% 0.10% 0.43% 0.38% 2.84%
Source: The Segal Company, Annual Actuarial Valuation, June 30, 2007
COMPREHENSIVE ANNUAL FINANCIAL REPORT 2007 69