Report on the Annual Valuation of the

Supplemental Legislative
Retirement Plan of Mississippi

Prepared as of June 30, 2010

 Cavanaugh Macdonald
C O N S U L T I N G, L L C
The experience and dedication you deserve

October 20, 2010

Board of Trustees
Public Employees’ Retirement System of Mississippi
429 Mississippi Street
Jackson, MS 39201-1005

Ladies and Gentlemen:

Presented in this report are the results of the annual actuarial valuation of the Supplemental Legislative
Retirement Plan of Mississippi. The purpose of the valuation was to measure the Plan’s funding progress
and to determine the unfunded accrued liability amortization period beginning July 1, 2010.

The date of the valuation was June 30, 2010.

The valuation was based upon data, furnished by the Executive Director and the PERS staff, concerning
active, inactive and retired members along with pertinent financial information. The complete cooperation
of the PERS staff in furnishing materials requested is hereby acknowledged with appreciation.

Your attention is directed particularly to the presentation of contribution rates on page 1 and the
comments on page 6.

To the best of our knowledge, this report is complete and accurate. The valuation was performed by, and
under the supervision of, independent actuaries who are members of the American Academy of Actuaries
with experience in performing valuations for public retirement systems. The undersigned meet the
Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained
herein.

The valuation was prepared in accordance with the principles of practice prescribed by the Actuarial
Standards Board.

Future actuarial results may differ significantly from the current results 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 operation of the methodology used for these measurements (such as the end of an
amortization period or additional cost or contribution requirements based on the plan’s funded status);
and changes in plan provisions or applicable law. Since the potential impact of such factors is outside the
scope of a normal annual actuarial valuation, an analysis of the range of results is not presented herein.

3550 Busbee Pkwy, Suite 250, Kennesaw, GA 30144

Phone (678) 388-1700 • Fax (678) 388-1730
www.CavMacConsulting.com
Offices in Englewood, CO • Kennesaw,Off
GA • Omaha, NE • Hilton Head Island, SC
Board of Trustees
October 20, 2010
Page 2

The actuarial calculations were performed by qualified actuaries according to generally accepted actuarial
procedures and methods. The calculations are based on the current provisions of the plan, and on
actuarial assumptions that are, in the aggregate, internally consistent and reasonably based on the actual
experience of the plan.

Respectfully submitted,

Thomas J. Cavanaugh, FSA, FCA, EA, MAAA Edward J. Koebel, FCA, EA, MAAA
Chief Executive Officer Principal and Senior Actuary

TJC/EJK:kc
S:\Mississippi SLRP\Valuation\2010\SLRP Valuation Report 2010 FINAL.doc
 TABLE OF CONTENTS

Section Item Page No.

I Summary of Principal Results 1

II Membership Data 4

III Valuation Balance Sheet 4

IV Comments on Valuation 6

V Derivation of Experience Gains and Losses 7

VI Required Contribution Rates 8

VII Cash Flow Projection 9

VIII Supplemental Disclosure Information 12

Schedule

A Development of Actuarial Value of Assets 21

B Statement of Actuarial Assumptions and Methods 23

C Summary of Main Benefit and Contribution Provisions 25

D Detailed Tabulations of the Data 31

E Analysis of Financial Experience 35

F Glossary 36
 REPORT ON THE ANNUAL VALUATION OF THE
SUPPLEMENTAL LEGISLATIVE RETIREMENT PLAN OF MISSISSIPPI
PREPARED AS OF JUNE 30, 2010

SECTION I – SUMMARY OF PRINCIPAL RESULTS

1. This report, prepared as of June 30, 2010, presents the results of the annual actuarial valuation of
the Plan. For convenience of reference, the principal results of the valuation and a comparison
with the preceding year’s results are summarized below. The current valuation and reported
benefits amount reflect any benefit increases granted to retirees as of July 1, 2010. We
recommend an increase in the contribution rate from 6.65% to 7.40% of active members’
compensation for the 2011/2012 fiscal year in order to keep the anticipated accrued liability
payment period within 30 years in accordance with GASB Statements 25 and 27.

SUMMARY OF PRINCIPAL RESULTS

VALUATION DATE June 30, 2010 June 30, 2009

Active members included in valuation

Number 175 174
Annual compensation $ 6,605,037 $ 6,803,339

Retirees
Number 142 141
Annual allowances $ 792,670 $ 781,231

Assets
Market related actuarial value $ 13,241,000 $ 13,386,000
Market value $ 11,079,000 $ 9,832,000

Unfunded accrued liability $ 3,840,278 $ 3,148,870

Recommended employer contribution rate

Normal 4.18% 3.89%
Accrued liability 3.22 2.76
Total 7.40% 6.65%

Anticipated accrued liability payment period 29.7 years 26.2 years

Unfunded accrued liability based on

market value of assets $ 6,002,278 $ 6,702,870
Payment period Infinite Infinite

Page 1
2. The valuation balance sheet showing the results of the valuation is given in Section III.

3. Comments on the valuation results are given in Section IV, comments on the experience and

actuarial gains and losses during the valuation year are given in Section V and the rates of

contribution payable by employers are given in Section VI.

4. There were no changes to the actuarial assumptions since the last valuation.

5. There were no changes to the benefit provisions or actuarial methods since the last valuation.

6. Schedule A of this report presents the development of the actuarial value of assets. Schedule B

details the actuarial assumptions and methods employed. Schedule C gives a summary of the

benefit and contribution provisions of the plan.

7. The table on the following page provides a ten-year history of some pertinent figures.

8. The valuation results are developed based upon the current employer contribution rate of 7.40%

of payroll. Governmental Accounting Standards Board Statement No. 27 requires employers to

expense pension costs at the actuarially required contribution level, which is based on a

maximum 30 year accrued liability payment period.

9. All amounts shown prior to the 2004/2005 fiscal year were developed and/or reported by the prior

actuarial firm.

Page 2
 Supplemental Legislative Retirement Plan of Mississippi

Comparative Schedule*

Valuation Results
Active Members Retired Lives
($ thousands)
% increase Benefits
Valuation from Active/ Annual as
Date Payroll Average previous Retired Benefits** % of Accrued Valuation
June 30 Number ($ thousands) Salary year Number Ratio ($ thousands) Payroll Liability Assets UAAL
2001 175 $5,941 $33,950 1.5% 84 2.1 $313.1 5.3% $10,302 $9,124 $1,178
2002 175 5,988 34,218 0.8 86 2.0 332.6 5.6 11,328 9,730 1,598
2003 175 6,289 35,934 5.0 85 2.1 330.5 5.3 12,220 10,196 2,024
2004 175 5,794 33,109 (7.9) 106 1.7 480.3 8.3 12,934 10,323 2,611
2005 175 6,530 37,315 12.7 114 1.5 582.6 8.9 13,402 10,634 2,768
2006 173 6,354 36,726 (1.6) 122 1.4 629.2 9.9 14,064 11,620 2,444
2007 175 6,554 37,453 2.0 126 1.4 657.8 10.0 15,054 12,722 2,332
2008 175 6,753 38,588 3.0 138 1.3 754.8 11.2 15,615 13,412 2,203
2009 174 6,803 39,100 1.3 141 1.2 781.2 11.5 16,535 13,386 3,149
2010 175 6,605 37,743 (3.6) 142 1.2 792.7 12.0 17,081 13,241 3,840

*All amounts prior to 2005 reported by prior actuarial firm.

**Excluding COLA for years prior to 2005

Page 3
 SECTION II – MEMBERSHIP DATA

Data regarding the membership of the Plan for use as a basis for the valuation were furnished by the

Plan’s office. The following tables summarize the membership of the Plan as of June 30, 2010 upon

which the valuation was based. Detailed tabulations of the data are given in Schedule D.

Active Members

Group Averages
Number of
Employers Employers Number Payroll Salary Age* Service*

State Agencies 5 175 $ 6,605,037 $37,743 55.8 11.6

*Years

Of the 175 active members, 134 are vested and 41 are non-vested.

Retired Lives

Group Averages
Type of Benefit Payment No. Annual Benefits Benefit Age*
Retirement 117 $662,740 $5,664 70.1
Disability 2 12,831 6,416 57.8
Survivor 23 117,099 5,091 64.8
Total in PERS 142 $792,670 $5,582 69.1

*Years

This valuation also includes 10 non-vested inactive members and 51 deferred vested members with
estimated annual benefits of $139,882.

SECTION III – VALUATION BALANCE SHEET

The following valuation balance sheet shows the assets and liabilities of the retirement plan as of the

current valuation date of June 30, 2010 and, for comparison purposes, as of the immediately preceding

valuation date of June 30, 2009. The items shown in the balance sheet are present values actuarially

determined as of the relevant valuation date. The development of the actuarial value of assets is

presented in Schedule A.

Page 4
 VALUATION BALANCE SHEET
SHOWING THE ASSETS AND LIABILITIES OF THE
SUPPLEMENTAL LEGISLATIVE RETIREMENT PLAN OF MISSISSIPPI

JUNE 30, 2010 JUNE 30, 2009

ASSETS

Current actuarial value of assets:

Annuity Savings Account $ 2,509,183 $ 2,326,997
Annuity Reserve 1,233,305 1,235,070
Employers’ Accumulation Account 9,498,512 9,823,933
Total current assets $ 13,241,000 $ 13,386,000

Future member contributions to Annuity Savings

Account $ 1,528,527 $ 1,713,746

Prospective contributions to Employer’s

Accumulation Account
Normal contributions $ 2,129,747 $ 2,222,157
Unfunded accrued liability contributions 3,840,278 3,148,870
Total prospective contributions $ 5,970,025 $ 5,371,027
Total assets $ 20,739,552 $ 20,470,773

LIABILITIES

Present value of benefits payable on account of

present retired members and beneficiaries $ 8,777,175 $ 8,756,004

Present value of benefits payable on account of

inactive members for service rendered before the
valuation date 986,461 1,122,398

Present value of benefits payable on account of active

members $ 10,975,916 $ 10,592,371
Total liabilities $ 20,739,552 $ 20,470,773

Page 5
 SECTION IV – COMMENTS ON VALUATION

The valuation balance sheet gives the following information with respect to the funds of the Plan as of

June 30, 2010.

Total Assets

The Annuity Savings Account is the fund to which are credited contributions made by members
together with interest thereon. When a member retires, the amount of his or her accumulated
contributions is transferred from the Annuity Savings Account to the Annuity Reserve. The
Employer’s Accumulation Account is the fund to which are credited employer contributions and
investment income, and from which are paid all employer-provided benefits under the plan. The
assets credited to the Annuity Savings Account as of the valuation date, which represent the
accumulated contributions of members to that date, amounted to $2,509,183. The assets
credited to the Annuity Reserve were $1,233,305 and the assets credited to the Employer’s
Accumulation Account totaled $9,498,512. Current actuarial assets as of the valuation date
equaled the sum of these three funds, $13,241,000. Future member contributions to the Annuity
Savings Account were valued to be $1,528,527. Prospective contributions to the Employer’s
Accumulation Account were calculated to be $5,970,025 of which $2,129,747 is attributable to
service rendered after the valuation date (normal contributions) and $3,840,278 is attributable to
service rendered before the valuation date (unfunded accrued liability contributions).

Therefore, the balance sheet shows the present value of current and future assets of the Plan to
be $20,739,552 as of June 30, 2010.

Total Liabilities

The present value of benefits payable on account of presently retired members and beneficiaries
totaled $8,777,175 as of the valuation date. The present value of future benefit payments on
behalf of active members amounted to $10,975,916. In addition, the present value of benefits for
inactive members, due to service rendered before the valuation date, was calculated to be
$986,461.

Therefore, the balance sheet shows the present value for all prospective benefit payments under
the Plan to be $20,739,552 as of June 30, 2010.

Section 25-11-307(1) of State law requires that active members contribute 3.00% of annual compensation
to the Plan.

Section 25-11-307(2) requires that the State contribute a certain percentage of the annual compensation
of members to cover the normal contributions and a certain percentage to cover the accrued liability
contributions of the Plan. These individual contribution percentages are established in accordance with
an actuarial valuation. We recommend the sum of these normal and accrued liability contributions
increase from 6.65% to 7.40% of the annual compensation of all members. The amortization period of
the unfunded accrued liability of the Plan is therefore calculated on an open-ended basis.

Page 6
 SECTION V – DERIVATION OF EXPERIENCE GAINS AND LOSSES

Actual experience will never (except by coincidence) coincide exactly with assumed experience. It is

assumed that gains and losses will be in balance over a period of years, but sizable year to year

fluctuations are common. Detail on the derivation of the experience gain/(loss) for the year ended

June 30, 2010 is shown below.

$ Thousands

(1) UAAL* as of June 30, 2009 $ 3,148.9

(2) Normal cost from last valuation 264.6

(3) Actual employer contributions 446.0

(4) Interest accrual: (1) x .080 + [[(2) – (3)] x .0392] 244.8

(5) Expected UAAL before changes: (1) + (2) – (3) + (4) 3,212.3

(6) Change due to plan amendments 0.0

(7) Change due to actuarial assumptions or methods 0.0

(8) Expected UAAL after changes: (5) + (6) + (7) 3,212.3

(9) Actual UAAL as of June 30, 2010 3,840.3

(10) Gain/(loss): (8) – (9) $ (628.0)

(11) Gain/(loss) as percent of actuarial accrued (3.8)%

liabilities at start of year ($16,534.9)

*Unfunded actuarial accrued liability.

Actuarial Gain/(Loss) as a % of
Valuation Date June 30 Beginning Accrued Liabilities
2005 (7.1)%
2006 0.3
2007 1.0
2008 0.9
2009 (3.0)
2010 (3.8)

Page 7
 SECTION VI – REQUIRED CONTRIBUTION RATES

The valuation balance sheet gives the basis for determining the percentage rates for contributions to be

made by employers to the Retirement Plan. The following table shows the rates of contribution payable

by employers as determined from the present valuation for the 2011/2012 fiscal year.

Contribution for Contributions Expressed as Percents of Payroll

Normal Cost:
Service retirement benefits 6.27%
Disability benefits 0.31
Survivor benefits 0.53
Total 7.11%

Member Contributions: 3.00%

Less future refunds (0.07)
Available for benefits 2.93%

Employer Normal Cost 4.18%

Unfunded Actuarial Accrued Liabilities

(29.7 year level % of payroll amortization*) 3.22

Total Computed Employer Contribution Rate 7.40%

*Amortization period a year ago was 26.2 years.

The components of the change in the computed unfunded accrued liability amortization period from 26.2

years to 29.7 years are as follows:

Previous Reported Period 26.2 years

Change due to:

Normal amortization (1.0)
Actuarial experience 3.9
Assumption changes 0.0
Plan amendments 0.0
Method change 0.0
UAL contribution experience 0.6

Computed Period 29.7 years

Page 8
 SECTION VII – CASH FLOW PROJECTION

Regular actuarial valuations measure the Retirement Plan’s present financial position and contributions

adequacy by calculating and financing the liabilities created by the present benefit program. This process

involves discounting to present values the future benefit payments on behalf of present active and retired

members and their survivors. However, valuations do not produce information regarding future changes

in the makeup of the covered group or the amounts of benefits to be paid or investment income to be

received – actuarial projections do.

Whereas valuations provide a snapshot of the retirement plan as of a given date, projections provide a

moving picture. Projected active and retired groups are developed from year to year by the application of

assumptions regarding pre-retirement withdrawal from service, retirements, deaths, disabilities, and the

addition of new members. Projected information regarding the retired life group leads to assumed future

benefit payout. Combining future benefit payments with assumed contributions and expected investment

earnings produces the net cash flow of the Plan each year, and thus end of year asset levels.

Projections are used for many purposes. Among them are (i) developing cash flow patterns for

investment policy and asset mix consideration, (ii) exploring the effect of alternative assumptions about

future experience, (iii) analyzing the impact on plan funding progress of changes in the workforce, and (iv)

examining the potential effect of changes in benefits on plan financial activity.

Projection results are useful in demonstrating changing relationships among key elements affecting plan

financial activity. For example: how benefits payable and plan assets will grow in future decades.

Projections are not predictions of specific future events and do not provide numeric precision in absolute

terms. For instance, cash flow projected to occur 10 years in the future will not be exact (except by

coincidence), but understanding the changed relationship between future benefit payout and future

investment income can be very useful.

Page 9
 Mississippi Supplemental Legislative Retirement Plan
Twenty-five Year Cash Flow Projection

Market Value of Projected Expected Market Value of

Valuation Assets Balance Benefit Investment Assets Balance
Year Payroll July 1 Contributions Payments Return Cash Flow June 30

2010 $6,737,138 $11,079,000 $650,134 $889,171 $876,759 $637,722 $11,716,722

2011 7,023,466 11,716,722 730,440 1,070,677 923,728 583,491 12,300,213
2012 7,321,963 12,300,213 761,484 1,171,800 967,604 557,288 12,857,501
2013 7,633,146 12,857,501 793,847 1,223,347 1,011,420 581,920 13,439,421
2014 7,957,5 55 13,439,421 827,586 1,276,182 1,057,210 608,614 14,048,035
2015 8,295,751 14,048,035 862,758 1,383,703 1,103,005 582,060 14,630,095
2016 8,648,320 14,630,095 899,425 1,526,131 1,145,339 518,633 15,148,728
2017 9,015,874 15,148,728 937,651 1,557,404 1,187,108 567,355 15,716,084
2018 9,399,049 15,716,084 977,501 1,588,766 1,232,836 621,571 16,337,655
2019 9,798,509 16,337,655 1,019,045 1,751,453 1,277,716 545,308 16,882,963
2020 10,214,946 16,882,963 1,062,354 1,856,968 1,318,852 524,238 17,407,201
2021 10,649,081 17,407,201 1,107,504 1,923,900 1,359,920 543,524 17,950,725
2022 11,101,667 17,950,725 1,154,573 1,966,110 1,403,597 592,060 18,542,785
2023 11,573,488 18,542,785 1,203,643 2,070,402 1,448,752 581,993 19,124,778
2024 12,065,361 19,124,778 1,254,798 2,118,889 1,495,419 631,328 19,756,106
2025 12,578,139 19,756,106 1,308,126 2,160,526 1,546,392 693,992 20,450,099
2026 13,112,710 20,450,099 1,363,722 2,193,731 1,602,808 772,799 21,222,897
2027 13,670,000 21,222,897 1,421,680 2,257,940 1,664,381 828,121 22,051,019
2028 14,250,975 22,051,019 1,482,101 2,288,405 1,731,829 925,525 22,976,544
2029 14,856,641 22,976,544 1,545,091 2,282,065 1,808,645 1,071,671 24,048,214
2030 15,488,048 24,048,214 1,610,757 2,269,772 1,897,497 1,238,482 25,286,696
2031 16,146,290 25,286,696 1,679,214 2,326,031 1,997,063 1,350,246 26,636,942
2032 16,832,507 26,636,942 1,750,581 2,342,117 2,107,294 1,515,758 28,152,700
2033 17,547,889 28,152,700 1,824,980 2,314,969 2,232,616 1,742,627 29,895,327
2034 18,293,674 29,895,327 1,902,542 2,273,760 2,376,777 2,005,559 31,900,887

Page 10
 Mississippi Supplemental Legislative Retirement Plan
Twenty-five Year Cash Flow Projection Based on Valuation Assumptions

Projected Contributions and Benefits Expressed

as Percents of Active Member Payroll
20%
18%
16%
14%
% of Payroll

12%
10%
8%
6%
4%
2%
0%
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
Year Beginning July 1

Contributions Benefits

Net Change in Asset Values

$5,000

$4,000
Dollars in Thousands

$3,000

$2,000

$1,000

$0

-$1,000

-$2,000
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
Year Beginning July 1

Contributions Net of Benefits Investment Income Net Change in Asset Values

Page 11
 SECTION VIII – SUPPLEMENTAL DISCLOSURE INFORMATION

1. Statement Nos. 25 and 27 of the Governmental Accounting Standards Board (GASB) set forth

certain items of information to be disclosed in the financial statements of the Plan and the

employer. One such item is a distribution of the number of employees by type of membership, as

follows:

NUMBER OF ACTIVE AND RETIRED PARTICIPANTS

AS OF JUNE 30, 2010

GROUP NUMBER

Retired participants and beneficiaries

currently receiving benefits 142

Terminated participants and beneficiaries

entitled to benefits but not yet receiving
benefits 61

Active Participants 175

Total 378

Page 12
2. Another such item is the schedule of funding progress as shown below.

SCHEDULE OF FUNDING PROGRESS

(6)
(2) Unfunded
Actuarial AAL as a
(1) Accrued (3) (4) (5) Percentage
Actuarial Liability Percent Unfunded Annual of Covered
Plan Year Value of (AAL) Funded AAL Covered Payroll
Ended Assets Entry Age (1)/(2) (2) – (1) Payroll (4)/(5)
06/30/2001*# $9,124,000 $10,302,034 88.6% $1,178,034 $5,941,332 19.8%
06/30/2002* 9,730,000 11,328,039 85.9 1,598,039 5,988,135 26.7
06/30/2003 10,196,000 12,219,519 83.4 2,023,519 6,288,514 32.2
06/30/2004* 10,323,000 12,934,100 79.8 2,611,100 5,794,099 45.1
06/30/2005# 10,634,000 13,401,595 79.3 2,767,595 6,530,045 42.4
06/30/2006 11,620,000 14,063,614 82.6 2,443,614 6,353,542 38.5
06/30/2007 12,722,000 15,053,526 84.5 2,331,526 6,554,229 35.6
06/30/2008* 13,412,000 15,614,687 85.9 2,202,687 6,752,960 32.6
06/30/2009# 13,386,000 16,534,870 81.0 3,148,870 6,803,339 46.3
06/30/2010 13,241,000 17,081,278 77.5 3,840,278 6,605,037 58.1

* After change in benefit provisions.

# After change in actuarial assumptions.

Page 13
3. The annual required contribution (ARC) of the employer as a percentage of payroll, determined in

accordance with the parameters of GASB 25/27, is shown below. The accrued liability rate is

based on amortization of the unfunded actuarial accrued liability of $3,840,278 over a period of

29.7 years from the valuation date.

Annual Required Contribution (ARC)

Valuation Date June 30 2010 2009
For Fiscal Year 2011/2012 2010/2011
UAL Payment Period (years) 29.7 26.2
Annual Required Contribution % of Payroll 7.40% 6.65%

4. Additional information as of June 30, 2010 follows.

Valuation date 6/30/2010

Actuarial cost method Entry age

Amortization method Level percent open

Remaining amortization period 29.7 years

Asset valuation method 5-year smoothed market

Actuarial assumptions:

Investment rate of return* 8.00%

Projected salary increases# 4.50%

Cost-of-living adjustments 3.00%

*Includes price inflation at 3.50%

# Includes wage inflation at 4.25%

Page 14
 Schedule of Employer Contributions

Fiscal Year Valuation date Annual Required Percentage

Ending June 30 June 30 Contribution Contributed
2002 2000 $376,086 100.0%
2003 2001 379,049 100.0
2004 2002 398,063 100.0
2005 2003 366,766 100.0
2006 2004 413,352 100.0
2007 2005 422,511 100.0
2008 2006 435,856 100.0
2009 2007 449,072 100.0
2010 2008 452,422 100.0
2011 2009 464,334

Page 15
 Solvency Tests
($ in Thousands)

Portions of Accrued
Actuarial Accrued Liabilities for Liabilities Covered
by Assets
(1)
Accumulated (3)
Employee (2) Active and
Contributions Retirees and Inactive
Including Beneficiaries Members
Allocated Currently Employer Net Assets
Valuation Investment Receiving Financed Available for
Date Earnings Benefits Portion Benefits (1) (2) (3)

6/30/2001 $1,666 $4,328 $4,308 $9,124 100% 100% 72.6%

6/30/2002 1,876 4,576 4,876 9,730 100 100 67.2
6/30/2003 2,121 4,567 5,532 10,196 100 100 63.4
6/30/2004 2,030 6,395 4,509 10,323 100 100 42.1
6/30/2005 2,076 6,813 4,513 10,634 100 100 38.7
6/30/2006 2,061 7,230 4,773 11,620 100 100 48.8
6/30/2007 2,301 7,378 5,375 12,722 100 100 56.6
6/30/2008 2,102 8,295 5,218 13,412 100 100 57.8
6/30/2009 2,327 8,756 5,452 13,386 100 100 42.2
6/30/2010 2,509 8,777 5,795 13,241 100 100 33.7

Page 16
 Schedule of Active Member Valuation Data

Active Members
Number of Annual % Increase in
Valuation Date Employers Number Annual Payroll Average Pay Average Pay

2001 5 175 $5,941,332 $33,950 1.5%

2002 5 175 5,988,135 34,218 0.8
2003 5 175 6,288,514 35,934 5.0
2004 5 175 5,794,099 33,109 (7.9)
2005 5 175 6,530,045 37,315 12.7
2006 5 173 6,353,542 36,726 (1.6)
2007 5 175 6,554,229 37,453 2.0
2008 5 175 6,752,960 38,588 3.0
2009 5 174 6,803,339 39,100 1.3
2010 5 175 6,605,037 37,743 (3.6)

Schedule of Number of Retirants Added To and Removed From Rolls

Last Ten Fiscal Years

Fiscal Year Ended June 30

Item 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Beginning
of Year 76 84 86 85 106 114 122 126 138 141

Added 10 6 1 26 8 12 6 20 7 6

Removed (2) (4) (2) (5) 0 (4) (2) (8) (4) (5)

End of
Year 84 86 85 106 114 122 126 138 141 142

Page 17
 Schedule of Benefit Payments Added To and Removed From Rolls
Last Seven Fiscal Years

Year Ending 2004 2005 2006 2007 2008 2009 2010

Beginning of Year $330,496 $480,314 $582,565 $629,217 $657,819 $754,815 $781,231

Added 172,668 30,412 57,341 17,973 107,569 33,316 36,400
Removed (22,850) 0 (26,559) (6,908) (29,585) (26,188) (46,742)
Benefit increase
due to annual
COLA N/A 71,839 15,870 17,537 19,012 19,288 21,781
Benefit increase
due to plan
amendments 0 0 0 0 0 0 0
End of Year $480,314 $582,565 $629,217 $657,819 $754,815 $781,231 $792,670

Page 18
 Schedule of Average Benefit Payments

Years of Credited Service

0-4 5-9 10-15 16-20 21-24 25 26-29 30 31+

July 1, 2009 to June 30, 2010

Average Monthly Benefit $129.62 $516.63 $759.42 $1,295.33
Average Final Salary $29,883.00 $48,826.77 $45,504.00 $36,180.57
Number of Active Retirants 3 1 1 1

July 1, 2008 to June 30, 2009

Average Monthly Benefit $194.61 $547.11 $833.23 $411.03 $338.62
Average Final Salary $29,237.33 $37,853.25 $39,683.00 $41,404.00 $34,997.00
Number of Active Retirants 3 1 1 1 1

July 1, 2007 to June 30, 2008

Average Monthly Benefit $117.04 $226.10 $354.03 $446.95 $513.00 $654.58 $922.68
Average Final Salary $32,858.75 $34,938.88 $36,171.88 $40,512.11 $32,188.50 $32,547.92 $44,455.75
Number of Active Retirants 2 2 4 7 1 3 1

July 1, 2006 to June 30, 2007

Average Monthly Benefit $189.08 $256.47 $264.75
Average Final Salary $27,519.25 $34,758.63 $22,041.60
Number of Active Retirants 3 2 1

July 1, 2005 to June 30, 2006

Average Monthly Benefit $146.55 $310.02 $435.40 $963.29
Average Final Salary $25,554.66 $30,926.67 $35,059.89 $36,594.49
Number of Active Retirants 4 3 3 2

Page 19
 Schedule of Average Benefit Payments

Years of Credited Service

0-4 5-9 10-15 16-20 21-24 25 26-29 30 31+

July 1, 2004 to June 30, 2005

Average Monthly Benefit $181.11 $270.19 $382.51 $141.81 $774.95
Average Final Salary $29,524.88 $27,246.83 $32,157.50 $34,034.50 $39,084.55
Number of Active Retirants 2 3 1 1 1

July 1, 2003 to June 30, 2004

Average Monthly Benefit $89.25 $744.00 $351.21 $407.83 $549.98 $675.25 $822.08 $964.09
Average Final Salary $29,452.38 $30,298.88 $29,231.13 $30,666.48 $36,900.94 $49,614.16 $41,404,.00 $43,852.85
Number of Active Retirants 2 2 2 7 5 4 1 3

July 1, 2002 to June 30, 2003

Average Monthly Benefit $513.00
Average Final Salary $32,188.50
Number of Active Retirants 1

July 1, 2001 to June 30, 2002

Average Monthly Benefit $282.43 $324.43 $537.68
Average Final Salary $25,732.75 $24,477.44 $41,331.98
Number of Active Retirants 1 4 1

July 1, 2000 to June 30, 2001

Average Monthly Benefit $85.01 $209.41 $172.08 $320.97 $530.58
Average Final Salary $30,768.00 $32,040.00 $23,014.00 $25,760.50 $24,477.25
Number of Active Retirants 1 4 2 2 1

Page 20
 SCHEDULE A
Development of Actuarial Value of Assets
($ thousands)

Valuation Date June 30: 2009 2010 2011 2012 2013 2014

A. Actuarial Value Beginning of Year $13,412 $13,386

B. Market Value End of Year 9,832 11,079
C. Market Value Beginning of Year 12,412 9,832
D. Cash Flow
D1. Contributions 665 648
D2. Other Revenue 0 0
D3. Benefit Payments (799) (824)
D4. Administrative Expenses (9) (9)
D5. Investment Expenses (17) (22)
D6. Net (160) (207)
E. Investment Income
E1. Market Total: B.-C.-D6. (2,420) 1,454
E2. Assumed Rate 8.00% 8.00%
E3. Amount for Immediate Recognition 1,004 801
E4. Amount for Phased-In Recognition (3,424) 653
F. Phased-In Recognition of Investment Income
F1. Current Year: 0.20*E4. (685) 131
F2. First Prior Year (442) (685) 131
F3. Second Prior Year 257 (442) (685) 131
F4. Third Prior Year 0 257 (442) (685) 131
F5. Fourth Prior Year 0 0 257 (442) (685) 131
F6. Total Recognized Investment Gain (870) (739) (739) (996) (554) 131
G. Actuarial Value End of Year:
A.+D6.+E3.+F6. $13,386 $13,241
H. Difference Between Market & Actuarial Values $(3,554) $(2,162) $(1,423) $(427) $127 $(4)
The Actuarial Valuation of Assets recognizes assumed investment income (line E3) fully each year. Differences between actual and assumed investment income (line E4) are phased in over a closed 5 year period.
During periods when investment performance exceeds the assumed rate, Actuarial Value of Assets will tend to be less than market value. During periods when investm ent performance is less than the assumed rate,
Actuarial Value of Assets will tend to be greater than market value. If assumed rat es are exactly realized for 4 consecutive years, actuarial value will become equal to market value.

Page 21
 Asset Summary
June 30, 2010
($ in Thousands)

Market Value Book Value Actuarial Value

1. Assets at June 30, 2009 $9,832 $10,197 $13,386

2. Contributions and Misc.

Revenue 648 648 648

3. Investment Increment 1,432 706 40

4. Benefit Payments (824) (824) (824)

5. Administrative Expenses (9) (9) (9)

6. Assets at June 30, 2010

(1) + (2) + (3) + (4) + (5) $11,079 $10,718 $13,241

7. Investment Increment/Mean
Assets* 14.7% 7.0% 0.3%

*Based on the approximation formula: I/[.5 x (A + B – I)], where

I = Investment increment
A = Beginning of year asset value
B = End of year asset value

Page 22
 SCHEDULE B

STATEMENT OF ACTUARIAL ASSUMPTIONS AND METHODS

INTEREST RATE: 8.00% per annum, compounded annually (net after investment expenses).

SEPARATIONS FROM ACTIVE SERVICE: Representative values of the assumed rates of separation

from active service are as follows:

Annual Rate of
Death
Age Male Female Disability*

20 .02% .01% .04%

25 .03 .02 .05
30 .04 .02 .07
35 .05 .03 .11
40 .08 .04 .17
45 .13 .06 .23
50 .24 .10 .30
55 .39 .15 .35
60 .60 .25 .40
65 .96 .43
70 1.61 .72

* 94% are presumed to be non-duty related, and 6% are assumed to be duty related.

WITHDRAWAL AND VESTING: 15% in an election year, none in a non-election year.

SERVICE RETIREMENT: 25% in an election year, none in a non-election year. All members are
assumed to retire no later than age 75.

It is assumed that a member will be granted 2.5 years of service credit for unused leave at termination of
employment.

PRICE INFLATION: 3.50% per annum, compounded annually.

PAYROLL GROWTH: 4.25% per annum, compounded annually.

SALARY INCREASES: 4.50% per annum, for all ages. The merit and seniority component is 0.25% and
the wage inflation component is 4.25%.

DEATH AFTER RETIREMENT: The mortality table, for post-retirement mortality, used in evaluating
allowances to be paid was the 1994 Group Annuity Mortality Table. Special tables were used for the
period after disability retirement. This assumption is used to measure the probabilities of each benefit
payment being made after retirement.

Page 23
MARRIAGE ASSUMPTION: 85% married with the husband three years older than his wife.

VALUATION METHOD: Entry age normal cost method. Entry age is established on an individual basis.

ASSET VALUATION METHOD: Actuarial value, as developed in Schedule A. The actuarial value of
assets recognizes a portion of the difference between the market value of assets and the expected
market value of assets, based on the assumed valuation rate of return. The amount recognized each
year is 20% of the difference between market value and expected market value.

Page 24
 SCHEDULE C

SUMMARY OF MAIN BENEFIT AND CONTRIBUTION PROVISIONS

The following summary presents the main benefit and contribution provisions of the Plan in effect

June 30, 2010 as interpreted in preparing the actuarial valuation. As used in the summary, “average

compensation” means the average annual covered earnings of an employee during the four highest years

of service. “Covered earnings” means gross salary not in excess of the maximum amount on which

contributions were required. “Fiscal year” means a year commencing on July 1 and ending June 30.

“Eligibility service” is all service in PERS, including that credited for SLRP service. “Creditable service”

includes only SLRP service.

EMPLOYER AND EMPLOYEE RATES OF CONTRIBUTION

AND MAXIMUM COVERED EARNINGS

Maximum Maximum
Fiscal Fiscal Covered Covered
Date From Date To Employer Rate Earnings Employee Rate Earnings

7/1/1989 6/30/1992 6.33% $75,600 3.00% $75,600

7/1/1992 6/30/2002 6.33 $125,000 3.00 $125,000
7/1/2002 6/30/2006 6.33 $150,000 3.00 $150,000
7/1/2006 6/30/2008 6.65 $150,000 3.00 $150,000
7/1/2008 6/30/2009 6.65 $230,000 3.00 $230,000
7/1/2009 6.65 $245,000 3.00 $245,000

Page 25
 BENEFITS
Superannuation Retirement

Condition for Retirement

(a) A retirement allowance is paid upon the request
of any member who retires and has attained age
60 and completed at least eight years* of
membership service under PERS, or has
completed at least 25 years of creditable service
under PERS.

(b) Any member who withdraws from service prior

to his or her attainment of age 60 and who has
completed at least eight years* of ,membership
service under PERS is entitled to receive, in lieu
of a refund of his or her accumulated
contributions, a retirement allowance
commencing at age 60.

(c) Upon the death of a member who has

completed at least eight years* of membership
service under PERS, a benefit is payable, in lieu
of a refund of the member’s accumulated
contributions, to his or her spouse, if said
spouse has been married to the member for not
less than one year.

* four years for those who entered PERS before

July 1, 2007.

Amount of Allowance The annual retirement allowance payable to a member

who retires under condition (a) above is equal to:

1. A member’s annuity which is the actuarial

equivalent of the member’s accumulated
contributions at the time of his or her retirement,
plus

2. An employer’s annuity which, together with the

member’s annuity, is equal to 1% of his or her
average compensation for each of the first 25
years of creditable service plus 1.25% for each
year of creditable service over 25 years.

The minimum allowance is $60 per year of creditable

service.

The annual retirement allowance payable to the spouse

of a member who dies under condition (c) above is equal
to the greater of (i) the allowance that would have been
payable had the member retired and elected Option 2,
reduced by 3% per year for each year the member
lacked in qualifying for unreduced retirement benefits, or
(ii) a benefit equal to the greater of 10% of average
compensation or $25 per month.

Page 26
 In addition, a benefit is payable to dependent children
until age 19 (23 if a full time student). The benefit is
equal to the greater of 5% of average compensation or
$25 per month for each dependent child up to 3.
Disability Retirement

Condition for Retirement A retirement allowance is paid to a member who is

totally and permanently disabled, as determined by the
Board of Trustees, and has accumulated eight or more
years* of membership service under PERS.

* four years for those who entered PERS before

July 1, 2007.

Amount of Allowance For those who were active members prior to July 1,
1992, and did not elect the benefit structure outlined
below, the annual disability retirement allowance
payable is equal to a superannuation retirement
allowance if the member has attained age 60, otherwise
it is equal to a superannuation retirement allowance
calculated as follows:

1. A member’s annuity equal to the actuarial

equivalent of his or her accumulated
contributions at the time of retirement, plus

2. An employer’s annuity equal to the amount that

would have been payable had the member
continued in service to age 60.

For those who become active members after June 30,

1992, and for those who were active members prior to
July 1, 1992, who so elected, the following benefits are
payable:

1. A temporary allowance equal to the greater of

(a) 20% of average compensation plus 5% for
each dependent child up to a maximum of 2, or
(b) the member’s accrued allowance. This
temporary allowance is paid for a period of time
based on the member’s age at disability, as
follows:

Age at Disability Duration

60 and earlier to age 65
61 to age 66
62 to age 66
63 to age 67
64 to age 67
65 to age 68
66 to age 68
67 to age 69
68 to age 70
69 and later one year

The minimum allowance is $60 per year of

service credit.
Page 27
 2. A deferred allowance commencing when the
temporary allowance ceases equal to the
greater of (a) the allowance the member would
have received based on service to the
termination age of the temporary allowance, but
not more than 20% of average compensation, or
(b) the member’s accrued allowance.

The minimum allowance is $60 per year of

service credit.

Effective July 1, 2004, a temporary benefit can

be paid out of a member’s accumulated
contribution balance while the member is
awaiting a determination for eligibility for
disability benefits. Future disability payments, if
any, would be offset by advanced payments
made from the member’s accumulated
contributions.

Accidental Disability Retirement

Condition for Retirement A retirement allowance is paid to a member who is

totally and permanently disabled in the line of
performance of duty.

Amount of Allowance The annual accidental disability retirement allowance is

equal to the allowance payable on disability retirement
but not less than 25% of average compensation. There
is no minimum benefit.

Accidental Death Benefit

Condition for Benefit A retirement allowance is paid to a spouse and/or

dependent children upon the death of an active member
in the line of performance of duty.

Amount of Allowance The annual retirement allowance is equal to 25% of

average compensation payable to the spouse and 12-
1/2% of average compensation payable to one
dependent child or 25% to two or more children until age
19 (23 if a full time student). There is no minimum
benefit.

Return of Contributions Upon the withdrawal of a member without a retirement

benefit, his or her contributions are returned to him or
her, together with accumulated regular interest thereon.

Upon the death of a member before retirement, his or

her contributions, together with the full accumulated
regular interest thereon, are paid to his or her
designated beneficiary, if any, otherwise, to his or her
estate provided no other survivor benefits are payable.

Page 28
Normal Form of Benefit The normal form of benefit is an allowance payable
during the life of the member with the provision that upon
his or her death the excess of his or her total
contributions at the time of retirement over the total
retirement annuity paid to him or her will be paid to his or
her designated beneficiary.

Optional Benefits A member upon retirement may elect to receive his or

her allowance in one of the following forms which are
computed to be actuarially equivalent to the applicable
retirement allowance.

Option 1. Reduced allowance with the provision that if

the pensioner dies before he receives the value of the
member’s annuity as it was at the time of retirement, the
balance shall be paid to his or her beneficiary.

Option 2. Upon his or her death, his or her reduced

retirement allowance shall be continued throughout the
life of, and paid to, his or her beneficiary.

Option 3. Upon his or her death, 50% of his or her

reduced retirement allowance shall be continued
throughout the life of, and paid to, a designated
beneficiary and the other 50% of his or her reduced
retirement allowance to some other designated
beneficiary.

Option 4A. Upon his or her death, 50% of his of her

reduced retirement allowance shall be continued
throughout the life of, and paid to, a designated
beneficiary.

Option 4B. A reduced retirement allowance shall be

continued throughout the life of the pensioner, but with
the further guarantee of payment to the pensioner or his
or her beneficiary for a specified number of years
certain.

Option 4C. A member may elect any option with the

added provision that the member shall receive, so far as
possible, the same total amount annually (considering
both SLRP and Social Security benefits) before and after
the earliest age at which the member becomes eligible
for a Social Security benefit. This option was only
available to those who retired prior to July 1, 2004.

If a member elects either Option 2 or Option 4A there is

an added provision that in the event the designated
beneficiary predeceases the member, the retirement
allowance payable to the member after the designated
beneficiary’s death shall be equal to the retirement
allowance which would have been payable had the
member not elected the option.

Page 29
 A member who has at least 28 years of creditable
service* under PERS can select a partial lump-sum
option at retirement. Under this option, the retiree has
the option of taking a partial lump-sum distribution equal
to either 12, 24, or 36 times the base maximum monthly
benefit. With each lump-sum amount, the base
maximum monthly benefit will be actuarially reduced. A
member selecting the partial lump-sum option may also
select any of the regular options except Option 1, the
prorated single-life annuity, and Option 4-C, the Social
Security leveling provision. The benefit is then
calculated using the new reduced maximum benefit as a
starting point in applying the appropriate option factors
for the reduction.

*or at least age 63 with four years of membership

service for those who entered PERS before July 1, 2007.

Post-Retirement Adjustments
In Allowances The allowances of retired members are adjusted
annually by an amount equal to (a) 3% of the annual
retirement allowance for each full fiscal year of
retirement prior to the year in which the member reaches
age 55, plus (b) 3% compounded for each year
thereafter beginning with the fiscal year in which the
member turns age 55; provided, however, that the
annual adjustment will not be less than 4% of the annual
retirement allowance for each full fiscal year in
retirement through June 30, 1998.

A prorated portion of the annual adjustment will be paid

to the member, beneficiary, or estate of any member or
beneficiary who is receiving the annual adjustment in a
lump sum, but whose benefits are terminated between
July 1 and December 1.

CONTRIBUTIONS

Members currently contribute 3.00% of covered earnings. The employer contributes that additional

amount necessary to fund the benefits outlined above on a full actuarial reserve funding basis.

Page 30
 SCHEDULE D

DETAILED TABULATIONS OF THE DATA

Retirants & Beneficiaries as of June 30, 2010

Tabulated by Year of Retirement

Total Annual Average

Year of Benefits, Total Annual Monthly Total
Retirement No. excluding COLA COLA Benefits Benefit
2010 3 $9,417 $0 $9,417 $262
2009 5 22,763 0 22,763 379
2008 21 106,877 3,746 110,623 439
2007 1 4,417 269 4,686 391
2006 2 8,868 713 9,581 399
2005 10 50,265 4,390 54,655 455
2004 20 126,306 20,024 146,330 610
2003 6 27,192 4,565 31,757 441
2002 4 15,148 3,238 18,386 383
2001 3 8,420 2,247 10,667 296
2000 18 86,158 25,902 112,060 519
1999 8 29,735 9,735 39,470 411
1998 2 11,179 3,758 14,937 622
1997 5 13,173 5,362 18,535 309
1996 7 22,670 10,486 33,156 395
1995 1 1,058 543 1,601 133
1994 2 4,686 2,615 7,301 304
1993 8 33,553 19,989 53,542 558
1992 15 54,879 34,461 89,340 496
1991 0 0 0 0 0
1990 1 2,203 1,660 3,863 322
TOTAL 142 $638,967 $153,703 $792,670 $465

Page 31
 Schedule of Retired Members by Type of Benefit

Benefits Payable June 30, 2010

Amount of
Monthly Number Ret Ret Ret Option Option Option Option Option Option Option PLSO** PLSO** PLSO**
Benefit of Rets. Type 1* Type 2* Type 3* Life 1 2 3 4A 4B 4C** 5 1 Year 2 Years 3 Years
$1 – $100 10 9 1 5 2 3 1 1
101 – 200 20 16 4 10 1 8 1 1
201 – 300 34 26 8 17 1 9 2 1 3 1 1
301 – 400 35 30 1 4 16 1 10 2 5 1 1 6
401 – 500 12 8 1 3 7 3 1 1 2 2
501 – 600 6 4 2 1 2 2 1 1
601 – 700 10 10 3 4 3 1
701 – 800 5 5 2 1 1 1 1
801 – 900 6 6 2 1 1 2 1
901 – 1,000 1 1 1 1
Over 1,000 3 2 1 1 1 1 1
Totals 142 117 2 23 65 3 41 2 5 21 1 5 2 2 16

*Type of Retirement Option Selected

1 – Retirement for Age & Service Life - Return of Contributions
2 – Disability Retirement Opt. 1 - Return of Member’s Annuity
3 – Survivor Payment Opt. 2 - 100% Survivorship
Opt. 3 - 50%/50% Dual Survivorship
Opt. 4A - 50% Survivorship
Opt. 4B - Years Certain & Life
Opt. 4C - Social Security Leveling**
Opt. 5 - Pop-Up
PLSO - Partial Lump Sum** (Reflects reduced monthly benefit)

**Included in other options

Page 32
 Supplemental Legislative Retirement Plan of Mississippi

Retirant and Beneficiary Information June 30, 2010

Survivors and
Service Retirement Disability Retirement Total
Beneficiaries
Attained
Age Annual Annual Annual Annual
No. Benefits No. Benefits No. Benefits No. Benefits

Under 20

20 – 24 1 $1,957 1 $1,957
25 – 29
30 – 34
35 – 39

40 – 44 2 9,782 2 9,782
45 – 49
50 – 54 3 $12,702 1 4,235 4 16,937
55 – 59 9 81,924 1 $6,481 2 9,216 12 97,621

60 – 64 21 85,763 1 6,350 5 23,117 27 115,230

65 – 69 24 128,355 2 8,429 26 136,784
70 – 74 20 95,903 2 10,902 22 106,805
75 – 79 22 128,815 5 22,974 27 151,789

80 – 84 13 109,955 2 11,639 15 121,594

85 – 89 5 19,323 1 14,848 6 34,171
90 – 94

95
96
97
98
99

100 & Over

Totals 117 $662,740 2 $12,831 23 $117,099 142 $792,670

Average Age: 69.1 years

Average Age at Retirement: 61.4 years

Page 33
 Supplemental Legislative Retirement Plan Of Mississippi

Total Active Member Data as of June 30, 2010

Tabulated by Attained Ages and Years of Service

Years of Service to Valuation Date Totals

Attained
Valuation
Age
0–4 5–9 10 – 14 15 – 19 20 – 24 25 – 29 30+ No. Payroll

Under 20

20 – 24
25 – 29 1 1 $34,463
30 – 34 3 4 7 248,985
35 – 39 6 3 2 1 12 446,137

40 – 44 8 2 2 1 13 477,603
45 – 49 5 5 4 14 523,071
50 – 54 3 5 3 8 1 20 755,566
55 – 59 3 5 2 8 1 3 3 25 996,640

60 4 2 3 1 2 12 452,208
61 1 1 2 67,508
62 2 1 1 1 1 6 223,301
63 1 1 2 2 6 212,531
64 1 1 3 3 1 9 342,406

65 1 3 1 5 203,532
66 1 1 1 2 2 7 265,922
67 1 1 2 68,170
68 1 1 100,570
69 3 1 3 7 248,091

70 & Over 2 3 3 7 6 2 3 26 938,333

Totals 41 37 22 45 9 8 13 175 $6,605,037

While not used in the financial computations, the following group averages are computed and shown because of
their general interest.

Age: 56.9 years

Service: 12.9 years
Annual Pay: $37,743

Page 34
 SCHEDULE E

MISSISSIPPI SLRP
ANALYSIS OF FINANCIAL EXPERIENCE

Gains & Losses in Accrued Liabilities

Resulting from Difference Between
Assumed Experience & Actual Experience
($ Thousands)

$ Gain (or Loss) For $ Gain (or Loss) For

Year Ending Year Ending
Type of Activity
6/30/2010 6/30/2009

Age & Service Retirements. If members retire at older

ages, there is a gain. If younger ages, a loss. $ 11.0 $ 77.9

Disability Retirements. If disability claims are less than

assumed, there is a gain. If more claims, a loss. 10.9 12.4

Death-in Service Benefits. If survivor claims are less

than assumed, there is a gain. If more claims, there is a
loss. 7.7 10.6

Withdrawal From Employment. If more liabilities are

released by withdrawals than assumed, there is a gain. If
smaller releases, a loss. 41.3 40.1

Pay Increases. If there are smaller pay increases than

assumed, there is a gain. If greater increases, a loss. 344.1 131.0

New Members. Additional unfunded accrued liability will

produce a loss. (2.3) 0.0

Investment Income. If there is a greater investment

income than assumed, there is a gain. If less income, a
loss. (1,023.0) (950.0)

Death After Retirement. If retirants live longer than

assumed, there is a loss. If not as long, a gain. 117.4 11.4

Other. Miscellaneous gains and losses resulting from

changes in valuation software, data adjustments, timing
of financial transactions, etc. (135.1) 194.1

Gain (or Loss) During Year From Financial

Experience $ (628.0) $ (472.5)

Non-Recurring Items. Adjustments for plan

amendments, assumption changes, or method changes. 0.0 (494.1)

Composite Gain (or Loss) During Year $ (628.0) $ (966.6)

Page 35
 SCHEDULE F

GLOSSARY

Actuarial Accrued Liability. The difference between (i) the actuarial present value of future plan benefits,
and (ii) the actuarial present value of future normal cost. Sometimes referred to as “accrued liability” or
“past service liability”.

Accrued Service. The service credited under the plan which was rendered before the date of the
actuarial valuation.

Actuarial Assumptions. Estimates of future plan experience with respect to rates of mortality, disability,
turnover, retirement, rate or rates of investment income and salary increases. Decrement assumptions
(rates of mortality, disability, turnover and retirement) are generally based on past experience, often
modified for projected changes in conditions. Economic assumptions (salary increases and investment
income) consist of an underlying rate in an inflation-free environment plus a provision for a long-term
average rate of inflation.

Actuarial Cost Method. A mathematical budgeting procedure for allocating the dollar amount of the
“actuarial present value of future plan benefits” between the actuarial present value of future normal cost
and the actuarial accrued liability. Sometimes referred to as the “actuarial funding method”.

Actuarial Equivalent. A series of payments is called on actuarial equivalent of another series of payments
if the two series have the same actuarial present value.

Actuarial Present Value. The amount of funds presently required to provide a payment or series of
payments in the future. It is determined by discounting the future payments at a predetermined rate of
interest, taking into account the probability of payment.

Amortization. Paying off an interest-bearing liability by means of periodic payments of interest and
principal, as opposed to paying it off with a lump sum payment.

Experience Gain (Loss). A measure of the difference between actual experience and that expected
based upon a set of actuarial assumptions during the period between two actuarial valuation dates, in
accordance with the actuarial cost method being used.

Normal Cost. The annual cost assigned, under the actuarial funding method, to current and subsequent
plan years. Sometimes referred to as “current service cost”. Any payment toward the unfunded actuarial
accrued liability is not part of the normal cost.

Reserve Account. An account used to indicate that funds have been set aside for a specific purpose and
are not generally available for other uses.

Unfunded Actuarial Accrued Liability. The difference between the actuarial accrued liability and valuation
assets. Sometimes referred to as “unfunded accrued liability”.

Valuation Assets. The value of current plan assets recognized for valuation purposes. Generally based
on book value plus a portion of unrealized appreciation or depreciation.

Page 36