Representative Town Meeting Budget and Special Meeting - DAY 2 (linked)

TOWN OF WATERFORD
GENERAL FUND
2023 - 2024 PROPOSED BUDGET
DEPT/AGENCY: 10116 RETIREMENT COMMISSION ‘
MES
51930 _|HYPERTENSION/ HEART DISEASE 171,003} __ 173,820 92,537 177,448 177,448 177,448 3,628.00 2.09%
51940 _|PENSION CONTRIBUTIONS 4,142,777|__ 4,581,338 2,215,767| __5,020,191 | _5,020,191 5,020,191 | __ 438,853.00 9.58%
51945 _|RETIREE HEALTH BENEFITS 372,650] 434,598 229,709 393,793 393,793 393,793 |__ (40,805.00) -9.39%
1,146,436) 1,458,305 |
_ 27.55%

TOWN OF WATERFORD
FY2024 BUDGET REQUEST
DEPARTMENT: RETIREMENT COMMISSION (10116)
BUDGET FUNCTION
The Retirement Commission is charged with the management of the retirement program for
the Town. This budget represents the Commission's estimate of the employer cost required
to fund our retirement plans on an actuarially sound basis.
The Retirement Commission voted to appoint an Investment Manager in April 2016 for
both the pension trust and the OPEB trust fund. The trust was set up and funded in February
2017:
The Governmental Accounting Standards Board (GASB) issued a Statement 45 requiring the
cost of Other Post-Employment Benefits (OPEB) to be recognized in the year earned (when
the employee is working) rather than when paid (when the employee retires). In addition,
the Statement also requires the recording of a liability (implicit rate subsidy) for those
retirees that remain on the Town's plan at their own cost. Since the cost of similar benefits
for these employees would be greater if the retiree was not part of the group, the
statement requires the recording of the liability for the difference. The effective date of
Statement 45 was July 1, 2006.

TOWN OF WATERFORD
FY2024 BUDGET REQUEST
DEPARTMENT: RETIREMENT COMMISSION (10116)
BUDGET SUMMARY
The proposed FY24 budget of $7,049,737 is 11.32% higher than FY23. The increased OPEB
and MERS Pension contributions are the main drivers for the Budget increase in Fiscal Year
2024.
51930 HEART/HYPERTENSION BENEFITS
The Town is currently paying benefits to two individuals (one widow of a former police officer,
one widow of a former firefighter) in accordance with judgments of the worker's compensation
commission based upon Connecticut State Statute. In addition, the Town pays for treatment
medications for several active police officers. A cost of living adjustment (COLA) is provided
annually in October based on information provided by our H & H administrator.
51940 PENSION CONTRIBUTIONS
Overall Budget is up by 11.32%. All general employees, police, and firefighters are
covered by MERF B, a State administered plan. Employees who retired prior to the
Town joining the MERF system are covered by the Town administered plan.
The employer contribution rates for MERF B for fiscal year 2024 have not been released
to date. Rates used are based on expected rates for FY23 received from the State of
Connecticut Retirement Division. Payroll has been estimated based on 2022-2023
projected payroll using staffing levels as of November 2022. The employee
contribution rate for fiscal year 2023-2024 is 4.25% of payroll and is provided for
informational purposes only.
The proposed budget includes an administrative assessment fees for all active and retired
employees of $130.00 per member. The 2023-2024 administrative fee of $81,380 is based
on 342 active participants and 284 retirees.

TOWN OF WATERFORD
FY2024 BUDGET REQUEST |
DEPARTMENT: RETIREMENT COMMISSION (10116)
BUDGET SUMMARY (continued)
The Public Employees Retirement System Fund (PERS) currently has 7 active participants.
Effective fiscal year 2004, the RTM approved a change in benefit allowing for a minimum
pension of $6,000 annually and offered a one- time $5,000 bonus. An annual increase
linked to the CPI-U was approved with a cap of five (5%) percent per year. The June 30,
2021 Actuarial Valuation Report performed by Hooker & Holcombe, Inc. indicated that
based upon the current population and the approved changes to the plan, the fund will
carry an unfunded liability of $198,424.
The next PERS valuation will be completed in June 2023.
51945 RETIREE HEALTH BENEFITS
Overall Budget is down 9.39%. The main driver is the decrease in actual monthly cost to the Town.
The Town currently has fourteen (14) retirees who receive post-retirement healthcare benefits. In
addition, there are another 32 employees inthe Over 65 classification that receive post-
employment healthcare benefits. The current GGA contract allows for a buy-out of accrued sick
time hours in excess of 1,400 per year for deposit into a Health Retirement Account to be used by
the employee for medical costs incurred following retirement.
The cost of the third party administration of the HRA has been included in the line item. The annual
cost of this excess, sick time accrual is included in the respective employee's department budget.
OTHER POST EMPLOYMENT BENEFITS (OPEB)
On December 1, 2014, the RTM approved the establishment of a trust fund to account for the OPEB
contributions. The Retirement Commission is responsible for the oversight and recommended
funding of the OPEB Trust. The Retirement Commission voted to appoint an Investment Manager
in April 2016 for both the pension trust and the OPEB trust fund.The trust was set up and funded in
February 2017.

BUDGET SUMMARY (continued)
Proposed Budget for Fiscal Year 2024 contains an increase of 11.32%.
As of the July 1, 2022, actuarial OPEB valuation, the Town's Unfunded Actuarial Accrued Liability is
$20,868,668. The annual required contribution (ARC) for FY2024 is $2,505,310. This contribution is
funded in several account lines in the annual budget:
Trust Contribution (10116-51949) 1,458,305
Retiree Health Benefits (10116-51945) 393,793
Over 65 - fully insured (10112-52251) 653,212 é
2,505,310

TOWN OF WATERFORD
GENERAL FUND
2023-2024 PROPOSED BUDGET
DEPT/AGENCY: 10116 RETIREMENT COMMISSION
2023/2024
ACTUAL
2021/2022 2022/2023 PRED DEPT/ 2022/2023 | Department | Department
LINE ACTUAL 2022/2023 | ADDITIONAL/ |ENCUMBASOF| AGENCY APPROVED | Request$ | Request %
ITEM DESCRIPTION EXPENDED | RTM APPROP. TRANSFERS 1/1/23 REQUEST BD/COMM. Increase Increase
PERSONNEL COSTS
51930 |HYPERTENSION/ HEART DISEASE 171,003 173,820 177,448 3,628 2.09%
51940 |PENSION CONTRIBUTIONS 4,142,777| 4,581,338 5,020,191 438,853 9.58%
51945 |RETIREE HEALTH BENEFITS 372,650 434,598 393,793 (40,805) -9.39%
‘151949 |OPEB TRUST FUND CONTRIBUTION 772,309} 1,143,311 1,458,305 314,994 27.55%
SUBTOTAL] 5,458,739 | 6,333,067 0 0 7,049,737 0 716,670 11.32%
DEPARTMENT TOTAL 5,458,739 | 6,333,067 0 7,049,737 0 716,670 11.32%
Note:
Trust Contribution (10116-51949)
Retiree Health Benefits (10116-51945)
Over 65 - fully insured (10112-52251)
1,458,305
393,793
653,212
2,505,310

TOWN OF WATERFORD
RETIREE HEALTH BENEFITS -SUMMARY SHEET
2023-2024 PROPOSED BUDGET
10116-51945 - RETIREE HEALTH BENEFITS
MONTHLY NO. OF
COST MONTHS ANNUAL COST
RETIREES - OVER 65 $7,534.67 12 $90,416.04 1
RETIREES - UNDER 65 $22,368.64 12 $268,423.68 ?
NON BCBS SUPPLEMENT $2,812.81 12 $33,753.69 °
PROSPECTIVE RETIREES $0.00 12 $0.00
ADMINISTRATIVE COST - HRA $100.00 12 $1,200.00 *
TOTAL $32,816.12 $393,793.41
AMOUNT TO BUDGET 393,793
2022-2023 ADOPTED BUDGET 434,598
PERCENT INCREASE OVER P/Y -9.39%
‘ Budget calculation based on October 2022 monthly cost to Town.
Budget calculation based on October 2022 rates.
3 In 2021-22, 14 retirees were reimbursed for Non-BCBS
supplement. The total reimbursement was $33,753.69. The
retiree must submit copies of paid invoices to receive the
reimbursement.
* Third party fee for the administration of the HRA accounts allowed for in the current GGA contract.
Third party vendor is Flores & Associates.

TOWN OF WATERFORD
HEART/HYPERTENSION 2023-2024 FISCAL YEAR PROPOSED BUDGET
rs
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2022-2023 2023-2024
HEART/HYPERTENSION ACTUAL ACTUAL ACTUAL ACTUAL BUDGETED asof10/6/22 PROPOSED
WAGES * 203,002.00 163,225.33 167,099.92 64,269.20 163,820 48,403 171,448
TREATMENT MEDICATION 2 14,185.89 4,066.39 5,996.45 1,907.30 10,000 1,122 6,000
TOTALS 217,187.89 167,291.72 173,096.37 66,176.50 173,820.00 49,525.00 177,448.00
NOTES:
1 COLA rates used as of October 1, 2022 Note. That the COLA did not increase again this year.
2Treatment medication is based on prior year actual.
any,

TOWN OF WATERFORD
PENSION CONTRIBUTIONS
2023-2024 FISCAL YEAR PROPOSED BUDGET
INCREASE/ % INCREASE/
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 (DECREASE) (DECREASE)
PENSION CONTRIBUTIONS ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL BUDGETED PROPOSED OVER P/Y OVER P/Y
TOWN OF WATERFORD PLAN
EMPLOYER CONTRIBUTIONS 81,493.00 81,131.00 82,000.00 82,000.00 83,000.00 27,280.00 27,280.00 0.00 0.00%
ACTUARIAL FEE* 4,500.00 5,395.01 7,953.00 7,100.00 5,957.91 7,100.00 7,475.00 375.00 5.28%
85,993.00 86,526.01 89,953.00 89,100.00 88,957.91 34,380.00 34,755.00 375.00 1.09%
MERS
EMPLOYER CONTRIBUTIONS 2,645,182.00 2,735,169.99 3,851,781.65 3,615,776.00 3,839,599.51 4,072,161.22 4,476,259.15 404,097.93 9.92%
AMORTIZATION/ADMIN COST 507,956.00 497,704.00 497,704.00 502,644.00 420,218.58 474,796.78 509,176.76 34,379.98 7.24%
3,153,138.00 3,232,873.99 4,349,485.65 4,118,420.00 4,259,818.09 4,546,958.00 4,985,435.91 438,477.91 9.64%
TOTALS 3,239,131.00 3,319,400.00 4,439,438.65 4,207,520.00 4,348,776.00 4,581,338.00 5,020,190.91 438,852.91 9.58%

TOWN OF WATERFORD
PROJECTED MERF CONTRIBUTION - ACTUAL 2020-2021 WAGES
2023-2024 FISCAL YEAR
PROJECTED 2022-2023 WAGES ee ACTUAL 2021-2022 WAGES
TOWN POLICE/FIRE | BOE NON-CERT : T TOWN. POLICE/FIRE | BOE NON-CERT :
MONTH SALARIES SALARIES SALARIES TOTAL . : _ |. SALARIES SALARIES SALARIES TOTAL
JULY 2022 ACTUAL $878,393.03 $611,783.53 373,415.47] 1,863,592.03 |JULY 2021 S$ 855,142.86 | $ 592,153.40 609,023.33| 2,056,319.59
AUGUST 2022 ACTUAL $672,684.15 $496,862.45 379,273.22| 1,548,819.82 |AUGUST 2021 S$ 666,594.77 | $ 501,164.02 417,580.77] 1,585,339.56
SEPTEMBER 2022 ACTUAL $824,303.13 $592,635.61 549,219.99| 1,966,158.73 [SEPTEMBER 2021 | $ 689,266.21 | $ 520,505.04 554,161.35] 1,763,932.60
OCTOBER 2022 ACTUAL $910,202.27 $648,992.79 575,561.18] 2,134,756.24 |OCTOBER 2021 S$ 847,216.21 | $ 615,629.50 545,622.63] 2,008,468.34
NOVEMBER 2022 ACTUAL $715,827.87 $550,210.77 575,561.18] 1,841,599.82 [NOVEMBER 2021 |$ 690,802.56 | S$ 466,314.82 535,227.83] 1,692,345.21
DECEMBER 2022 PROJECTED $933,547.73 $766,362.41 578,029.98, 2,277,940.12 |DECEMBER 2021 S 868,946.17 | $ 726,965.41 822,904.88] 2,418,816.46
JANUARY 2023 PROJECTED $757,370.71 $468,850.09 575,561.18} 1,801,781.98 JANUARY 2022 S$ 704,960.61 | $ 444,747.54 503,052.28} 1,652,760.43
FEBRUARY 2023 PROJECTED $798,774.57 $467,022.15 575,561.18] 1,841,357.90 |FEBRUARY 2022 S$ 743,499.32 | $ 443,013.57 581,154.73] 1,767,667.62
MARCH 2023 PROJECTED $746,630.58 $462,315.13 575,561.18} 1,784,506.89 |MARCH 2022 S$ 694,963.70 | S$ 438,548.53 540,929.10} 1,674,441.33
APRIL 2023 PROJECTED $906,881.68 $600,549.89 575,561.18] 2,082,992.75 |APRIL 2022 S$ 844,125.41 | $ 569,676.95 542,688.27| 1,956,490.63
MAY 2023 PROJECTED $735,417.70 $545,624.11 575,561.18] 1,856,602.99 |MAY 2022 S$ 684,526.75 | $ 517,574.78 506,834.66] 1,708,936.19
JUNE 2023 PROJECTED $746,782.20 $540,928.43 863,341.77| 2,151,052.40 [JUNE 2022 § 695,104.82 | $ 513,120.49 785,024.50] 1,993,249.81
TOTALS:| 9,626,815.62 | 6,752,137.36 |. 6,772,208.69 | 23,151,161.67 8,985,149.39 | 6,349,414.05 6,944,204.33 | 22,278,767.77
Est wage increase FY24 2.50% 2.75% 2.50% 2.50% 2.50% 2.50%
Projected MERF salaries 2023-24 9,867,486.01 6,937,821.14 6,941,513.91 23,746,821.06 9,209,778.12 6,508,149.40 7,117,809.44 22,835,736.96
2023-2024 Contribution Rate * 17.55% 23.11% 16.44% 15.24% 20.95% 15.24%
Est. Employer Contribution 2023-2024 $1,731,743.79 $1,603,330.47 $1,141,184.89 $4,476,259.15 $1,403,570.19 $1,363,457.30 $1,084,754.16 $3,851,781.65
Amortization 0.00 427,247.68 549.08 427,796.76 0.00 416,827.00 537.00 417,364.00
Administrative Fee 31,980.00 12,870.00 36,530.00 81,380.00 31,200.00 12,740.00 36,400.00 80,340.00
CONTRIBUTION $1,763,723.79 $2,043,448.15 $1,178,263.97 _$4,985,435.91 $1,434,770.19 $1,793,024.30 $1,121,691.16 $4,349,485.65
CONTRIBUTION RATE
1. The contribution rate is based on the MERF Projection for FY 2023 from the State of CT. FY 2024 rates not expected to March 2023.

STATE of
Conne ory cur RETIREMENT SERVICES Division
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
RETIREMENT SERVICES
Drvyisron
March 4, 2022
Ms, Joyce Sauchuk
’ Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
jsauchuk@waterfordct.org
RE: Waterford Local 1303 152-B
Dear Ms. Sauchuk:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2022, The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2022 to June 30, 2023 fiscal year.
* Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 125%
Unfunded Accrued Liability ; 10.30%
Total ‘'17,55%
We project the contribution payment, as a percentage of payroll, will increase in future annual valuations to an
estimated rate of 18.02% for fiscal year ending Jime 30, 2025. The estimated schedule of future employer contribution
rates is provided in the June 30, 2021 valuation.
« As stated in the Retirement Services Division letter dated June 25, 2019, Public Act No, 19-124 includes an increase
in employee contributions to MERS in each of the six subsequent fiscal years, Therefore, effective July 1, 2022, the
employee contribution rates for members covered by Social Security will increase from 3.75% to 4.25%. Please note
that the employee contribution rate for wages above the Social Security Wage Base is 7.00%.
e There is no annual amortization payment for prior service.
* The CMERS administrative charge is $17,810. This charge is based on $130 per active and retired member. Our most
; recent files show 69 active members and 68 retired members.
The State Employees Retirement Commission approved the above total contribution rate of 17.55% at its February 17, 2022
meeting. A copy of the June 30, 2021 actuarial valuation report can be found on the Office of the State Comptroiler’s website
at https://www. gse.ct ov/rbsd/reports/index.html,
If you have any questions regarding the information provided in this letter, please contact Rudolph Nelson, a CMERS staff
member, at (860)702-3502,
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
‘BY;
John Herrington, Director
Retirement Services Division

Stare of
CONNECTICUT RETIREMENT SERVICES DrvIsSION
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
RETIREMENT SERVICES
Drvisron
March 4, 2022
Ms. Joyce Sauchuk
Director of HR
Waterford Fire Department
15 Rope Ferry Road
Waterford, CT 06383
jsauchuk@waterfordct.org
RE: Waterford Fire 152-F
Dear Ms. Sauchuk:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2022. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2022 to June 30, 2023 fiscal year.
Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 10.60%
Unfunded Accrued Liability 12.51%
Total ; 23.11%
We project the contribution payment, as a percentage of payroll, will increase in future annual valuations to an
estimated rate of 23.32% for fiscal year ending June 30, 2025. The estimated schedule of future employer contribution
rates is provided in the June 30, 2021 valuation,
As stated in the Retirement Services Division letter dated June 25, 2019, Public Act No. 19-124 includes an increase
in employee contributions to MERS in each of the six subsequent fiscal years, Therefore, effective July 1, 2022, the
employee contribution rates for members covered. by Social Security will increase from 3.75% to 4.25%, Please note
that the employee contribution rate for wages above the Social Security Wage Base is 7.00%.
There is no annual amortization payment for prior service,
The CMERS administrative charge is $2,210, This charge is based on $130 per active and retired member. Our most
recent files show 10 active members and 7 retired members.
The State Employees Retirement Commission approved the above total contribution rate of 23.11% at its February 17, 2022
meeting.’A copy of the June 30, 2021 actuarial valuation report can be found on the Office of the State Comptroller’ s website
at https://www.ose.ct.eov/rbsd/reports/index.html.
If you have any questions regarding the information provided in this letter, please contact Rudolph Nelson, a CMERS staff
member, at (860)702-3502.
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
BY:
John Herrington, Director
Retirement Services Division
TNs!

Srare of
ENT SERVICE IVISIO
Connecticut RETIREMENT SERVICES DIVISION
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Harcford, CT 06106
RETIREMENT SERVICES
Drviston
March 4, 2022
Ms. Joyce Sauchuk
Director of HR
Waterford Public Schools
15 Rope Ferry Road —
Waterford, CT 06385
jsauchuk@waterfordct.org
RE: Waterford Police 152-P
Dear Ms, Sauchuk:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2022. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2022 to June 30, 2023 fiscal year.
Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost 10,60%
Unfunded Accrued Liability . 12.51%
Total 23.11%
We project the contribution payment, as a percentage of payroll, will increase in future annual valuations to an
estimated rate of 23.32% for fiscal year ending June 30, 2025. The estimated schedule of future employer contribution
rates is provided in the June 30, 2021 valuation.
e As stated in the Retirement Services Division letter dated June 25, 2019, Public Act No, 19-124 includes an increase
in employee contributions to MERS in each of the six subsequent fiscal years, Therefore, effective July 1, 2022, the
employee contribution rates for members covered by Social Security will increase from 3.75% to 4.25%. Please note
that the employee contribution rate for wages ‘above the Social Security Wage Base is 7.00%.
« There is no annual amortization payment for prior service,
¢ The CMERS administrative charge is $12,350. This charge is based on $130 per active and retired member, Our most
recent files show 48 active members and 47 retired members.
The State Employees Retirement Commission approved the above total contribution rate of 23.11% at its February 17, 2022
meeting, A copy of the June 30, 2021 actuarial valuation report can be found on the Office of the State Comptroiler’s website
at https:/Awww.osce.ct.gov/rbsd/reports/index. html.
If you have any questions regarding the information provided in this letter, please contact Rudolph Nelson, a CMERS staff
member, at (860)702-3502,
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
BY:
John Herrington, Director
Retirement Services Division

Stare of
RETIREMENT SERVICES Division
CONNECTICUT
OFFICE ofthe STATE COMPTROLLER,
165 Capitol Ave,
Harford, CT 06106
RETIREMENT SERVICES
Drviston
March 4, 2022
Ms. Joyce Sauchuk
Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385
jsauchuk@waterfordct.org
RE: Waterford Gen Goy Admin 152-T
Dear Ms. Sauchuk:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2022. The State of Connecticut Retirement
_ Commission has authorized the contributions rates below to be effective for the July 1, 2022 to June 30, 2023 fiscal year,
Monthly contribution payments, as a percentage of payroll, will be as follows:
Normal Cost , 7.25%
Unfunded Accrued Liability 10.30%
Total 17.55%
We project the contribution payment, as a percentage of payroll, will increase in future annual valuations to an
estimated rate of 18.02% for fiscal year ending June 30, 2025. The estimated schedule of future employer contribution
rates is provided in the June 30, 2021 valuation.
As stated in the Retirement Services Division letter dated June 25, 2019, Public Act No. 19-124 includes an increase
in employee contributions to MERS in each of the six subsequent fiscal years. Therefore, effective July 1, 2022, the
employee contribution rates for members covered by Social Security will increase from 3.75% to 4.25%. Please note
that the employee contribution rate for wages above the Social Security Wage Base is 7.00%.
There is no annual amortization payment for prior service.
The CMERS administrative charge is $6,240. This charge is based on $130 per active and retired member. Our most
recent files show 21 active members and 27 retired members.
. The State Employees Retirement Commission approved the above total contribution rate of 17.55% at its February 17, 2022
meeting. A copy of the June 30, 2021 actuarial valuation report can be found on the Office of the State Comptroller’s website
at https://www.ose.ct.gov/rbsd/reports/index.html,
If you have any questions regarding the information provided in this letter; please contact Rudolph Nelson, a CMERS staff
member, at (860)702-3502,
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
BY:
John Herrington, Director
Retirement Services Division
fr § \

Stats of
RETIREMENT SERVICES DrvisION
OFFICE ofthe STATE COMPTROLLER
165 Capitol Ave.
Hartford, CT 06106
RETIREMENT SERVICES
Drvision
March 4, 2022
Ms. Joyce Sauchuk
Director of HR
Town of Waterford
15 Rope Ferry Road
Waterford, CT 06385 _
jsauchuk@waterfordct.org
RE: Waterford Town 152-W.
Dear Ms. Sauchuk:
The purpose of this letter is to advise you of the costs for the above referenced unit to participate in the Connecticut Municipal
Employees Retirement System (CMERS) for the fiscal year beginning July 1, 2022. The State of Connecticut Retirement
Commission has authorized the contributions rates below to be effective for the July 1, 2022 to June 30, 2023 fiscal year.
e® Monthly contribution payments, as a percentage of payroll, will be as follows:
.Normal Cost . 7.25%
Unfunded Accrued Liability 10.30%
Total 17.55%
We project the contribution payment, as a percentage of payroll, will increase in future annual valuations to an
estimated rate of 18.02% for fiscal year ending June 30,2025, The estimated schedule of future employer contribution
rates is provided in the June 30, 2021 valuation.
e As stated in the Retirement Services Division letter dated June 25, 2019, Public Act No. 19-124 includes an increase
in employee contributions to MERS in each of the six subsequent fiscal years. Therefore, effective July 1, 2022, the
employee contribution rates for members covered by Social Security will increase from 3.75% to 4.25%. Please note
that the employee contribution rate for wages above the Social Security Wage Base is 7.00%.
¢ There is no annual amortization payment for prior service,
e The CMERS administrative charge is $9,490. This charge is based on $130 per active and retired member. Our most
recent files show 35 active members and 38 retired members,
The State Employees Retirement Commission approved the above total contribution rate of 17.55% at its February 17, 2022
meeting. A copy of the June 30, 2021 actuarial valuation report can be found on the Office of the State Compiroller’s website
at https:/Avww.osc.ct.gov/rbsd/reports/index.html.
If you have any questions regarding the information provided in this letter, please contact Rudolph Nelson, a CMERS staff
member, at (860)702-3502, ;
Very truly yours,
THE CONNECTICUT MUNICIPAL EMPLOYEES RETIREMENT SYSTEM
John Herrington, Director
’ Retirement Services Division

TERS
ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD RETIREMENT PLAN
Executive Summary
July 1, 2021
July 1, 2019
Number of members
Active employees 0 0
Terminated vested members 0 0
Retired, disabled and beneficiaries 7 10
~ Total 7 10
Covered employee payroll N/A N/A
Average plan salary N/A N/A
Actuarial present value of future benefits 786,000 1,019,984.
Actuarial accrued liability 786,000 1,019,984.
Plan assets
Market value of assets ~ 639,050 535,281
Actuarial value of assets 587,576 553,774
Unfunded accrued liability 198,424 466,210
Funded ratio 74.8% 54.3%
Actuarially determined employer contribution (ADEC)
Fiscal year ending 2023 2021
ADEC 27,280 59,870
Fiscal year ending 2024 2022
ADEC 27,280 59,870
HOOKER & HOLCOMBE | HHCONSULTANTS.COM
PAGE 1

Executive Summary
OPES
ACTUARIAL VALUATION REPORT
TOWN OF WATERFORD OPEB PLAN
July 1, 2022 July 1, 2020
Number of members
Active members 368 404
Retired members and dependents 179 119
Total 547 523
Covered employee payroll 29,029,526 31,115,420
Average plan salary 78,885 77,018
Actuarial present value of future benefits 32,284,998 27,947,165
Actuarial accrued liability 30,074,765 25,386,650
Plan assets
Market value of assets 8,465,847 6,109,331
Actuarial value of assets 9,206,097 6,109,331
Unfunded accrued liability ' 20,868,668 19,277,319
Funded ratio 30.6% 24.1%
Actuarially determined employer contribution (ADEC)
Fiscal year ending 2024 | 2022
ADEC 2,505,310 | 2,217,688
Fiscal year ending 2025 2023
ADEC 2,516,833 2,231,121
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