CALPERS FRESH START AMORTIZATION SCHEDULE

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CalPERS Actuarial Valuation - June 30, 2023 Miscellaneous Plan of the Conejo Recreation and Park District CalPERS ID: 2176990821 The amortization schedule on the previous pages) theminimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire fora more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quicklythan required. As such, we have provided alternative amortization schedules to help analyze the currentam ortization schedule and illustrate the potential savings of accelerating unfunded Iia bility payments. Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative "fresh start' amortization schedules using two sample periods thatwould both result in interestsa\Angs relative to the current amortization schedule. To initiate a fresh start, please contact a CalPERS actuary. The current amortization schedule typical lycontains both positive and negative bases. Positive bases re sultfrorn plan changes, assumption changes, method changes or plan experience thatincrease unfunded liability. Negative bases res uItfrorn plan changes, assumption changes, method changes, orplan experience that decrease unfunded liability. The corn binatio n of positive and negative bases within an amortization schedule can result in unusual or problematic circum stances in future years, such as: • When a negative paymentwould be required on a positive unfunded actuarial liability; or • When the paymentwould completelyamortize the total unfunded liabilityin a very shorttime period, and results in a large change in the employer contribution requirement. In any year when one of the above scenarios occurs, the actuarywill consider corrective action such as replacing the e)dsting unfunded liabilitybases with a single "fresh start" base and amortizing itover an appropriate period. The current amortization schedule on the following page mayappearto showthat, based on the current amortization bases, one of the above scenarios will occuratsome pointin the future. It is impossible to knowtoday whethersuch a scenariowill in fa ct arise since there will be additional bases added to the am ortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS Actuarial Amortization Page 21