HomeMy WebLinkAboutLetter 2 FR/SRStay -
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April 6, 2009
(via e-mail: mitierney@actuarial concepts.col)
Mr_ Michael J. Tierney, ASA
Actuarial Concepts, Inc.
3020 Hartley Road
Suite 250
Jacksonville, FL 32257
Miami ITPO Stabilization
(Your March 24 Letter),
Dear Mike:
You have suggested in your March 24 letter that we acknowledge to our respective clients that
contribution stabilization is not achievable currently or in the foreseeable future.
Table D of our March 4, 2009 Stabilization Draft #5 showed relatively low probabilities of City
contributions below 37°Io, in conjunction with the Entry Age Cost Method, retlecting actual
investment returns through December 31, 2008, unless there was substantial initial funding of the
Stabilization rust. Tables E and F showed, as would be expected, significantly higher
probabilities of success, if the 37°!o target were increased to 4517o or 529o,
Therefore, under the presumption that there would be little interest in the higher targets, I would
agree that it is impossible to achieve the October 1, 2007 targets at October 1, 2008.
Whether, or when, the October 1, 2007 targets could be achieved is definitely unknown.
However, given the amount of time and effort expended by all parties to get to Draft #5, I would
hope that the City and unions not discard the stabilization framework, but instead shelve it
temporarily. In addition, they could agree to resurrect it when City contributions go below 37%.
Sincerely,
Randall L. Stanley, FSA
Consulting Actuary and Principal
RLS/di
Miami 90-92B
cc: Armando Aguilar (iniamifop20@aol.com)
Board of Trustees (dania@mianlifipo.org)
Robert Suarez rsua.rez(�Iaff587.org)