Government EMPLOYEES’ RETIREMENT SYSTEM OF THE VIRGIN ISLANDS

ANNUAL OVERVIEW OF OPERATIONS



FISCAL YEAR



AOYZ



Presented to

Committee on Finance

33" Legislature of the Virgin Islands of the United States



Earl B. Ottley Legislative Hall

Tuesday, August 11, 2020

St. Thomas, U.S. Virgin Islands



"Contributing today for a better tomorrow"

Government Employees’ Retirement System



August 11, 2020



Overview of Operations



GOVERNMENT EMPLOYEES’ RETIREMENT SYSTEM



OVERVIEW OF OPERATIONS



TABLE OF CONTENTS



Introduction



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2-3



Membership and Annuity Payments



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Unfunded Liability (Employer’s Net Pension Liability — Exhibit A



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Total Contributions Received/Benefit Payments and Expenses — Exhibit B



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Actuarially Determined Employer Contributions (ADEC) Due — Exhibit C



Prior Years Missing Employer Contributions



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Direct Contribution Due from Central Government (Act Nos. 7261 and 8244)



5-6



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6-8



Assets (Including Investments)



Cash Flow Analysis as of June 30, 2020 — Exhibit D



Total Retirement System Portfolio (Aggregate) - Exhibit E



Historical Market Rates of Return — Exhibit F



Actuarial Valuation



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8-9



Annual Financial Audit



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9-10



Major Accomplishments for Fiscal Year 2020



Major Goals for Fiscal Year 2021



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10



Conclusion



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10-11

Government Employees’ Retirement System August 11, 2020

Overview of Operations



INTRODUCTION



Good afternoon Honorable Senator Kurt A. Vialet, Chairman, Committee on Finance,

distinguished Committee members, other distinguished senators present in the chambers, and

good afternoon to the listening and viewing audience. I am, Austin L. Nibbs, Administrator of the

Government Employees’ Retirement System of the Virgin Islands (GERS). I am pleased to

appear before this Committee to present the System’s Annual Overview of Operations. As you

know, the System is not required to submit a budget to the Legislature for approval. The Board

of Trustees is responsible for the approval of the annual budget of the GERS. Therefore, our

presentation is an overview of the operations of GERS. At this time, I would like to acknowledge

members of my senior management team present in the chambers and participating remotely.

Before we begin, I would also like to thank the employees of the GERS for stepping up to the

challenges during these uncertain times and continue to provide our members with quality



service although working remotely.



Since my first appearance before the Committee on Finance in 2008, I have always highlighted

the deteriorating condition of the System. We are before the Committee on Finance in 2020 with

the same message. Based on the current funding of the System, the System will become insolvent

by 2024 or sooner depending on market conditions or if nothing is done to fund the System on an

actuarial reserve basis. As of June 30, 2020, the market value of the System liquid assets was

$484.2 million. Of the $137.8 million shown as withdrawals, $90 million was used to meet

obligations to the retirees through June 30, 2020. See EXHIBIT D. We emphasize again, if the

Plan Sponsor and the Legislature do not find additional funding sources, based on the current

withdrawals from the portfolio, the liquid assets will be depleted in the next 3 — 4 years. At which



time, the System will be insolvent and will not be able to provide the benefits promised to retirees



2

Government Employees’ Retirement System August 11, 2020

Overview of Operations



and active members.



MEMBERSHIP AND ANNUITY PAYMENTS



As of July 31, 2020, the GERS pays benefits to 8,699 retirees and beneficiaries. The average

monthly amount that is paid in benefits to the retirees and beneficiaries as of July 31, 2020, is

$21.4 million. The total amount paid in benefits from October 1, 2019 — July 31, 2020, is $213.5

million. The active membership as of July 31, 2020, is 8,881 (central government 6,148 and semi-



autonomous agencies 2,733). There is less than a | to 1 ratio between the actives and the retirees.



UNFUNDED LIABILITY (EMPLOYER’S NET PENSION LIABILITY) — EXHIBIT A



The October 1, 2019 Actuarial Valuation Report has not been completed. The information



that is presented below represents the data from the October 1, 2018 Actuarial Valuation



Report. For this period, GERS had a Total Actuarial Accrued Liability of $3.70 billion. Plan Assets

totaled $768.8 million and the Unfunded Liability was $2.93 billion. This resulted in a funded ratio

of 21 percent on an ongoing actuarial basis.



The GERS is projected to fully deplete its assets no later than 2024. For the GASB required

disclosures for accounting purposes, the discount rate is 4.25 percent (not the 7.0 percent used to

develop long-term funding numbers in the presentation above), because the plan is projected to

become insolvent soon. This measure results in a Total Actuarial Accrued Liability of $4.94

billion and a net Pension Liability (Unfunded Liability) of $4.17 billion. This results in a funded

ratio of 16 percent. The GERS will provide a copy of the October 1, 2019 Actuarial Valuation



Report to the Legislature when the valuation is completed.



1oS)

Government Employees’ Retirement System August 11, 2020

Overview of Operations



TOTAL CONTRIBUTIONS RECEIVED/BENEFIT PAYMENTS AND EXPENSES —

EXHIBIT B



Beginning in 1996, there was an imbalance between contributions collected, benefit



payments, and expenses resulting in a variance of $1.6 million. Each year thereafter,



contributions collected have been less than the benefit payments and expenses. In fiscal year

2019, there was a shortfall of $151.1 million. For the nine months of fiscal year 2020, the



shortfall is $109.6 million. Annual shortfalls between contributions collected and benefit

payments and expenses from 2000 through September 30, 2019 have caused the System to

withdraw approximately $1.8 billion from the portfolio to fund the benefit payments and

expenses.



ACTUARIALLY DETERMINED EMPLOYER CONTRIBUTIONS (ADEC) DUE -

EXHIBIT C



The ADEC now referred to as ADC (Actuarially Determined Contribution) is $277.5 million



or 69 percent of pay for the October 1, 2018 actuarial valuation period. At the employer rate



at that time of 20.5 percent of pay, there is a projected deficit of 48.1 percent of pay between



the ADC and the projected employer contributions. The schedule of the ADC (EXHIBIT C)



from 1991 to 2019 shows that the Plan Sponsors owe the System approximately $1.98 billion (net

of 6 percent loss investment).



In September 2016, the GERS filed a Motion to Show Cause, stemming from the GVI’s failure and

refusal to comply with the Consent Judgment entered on December 10, 1984, as modified on April

22,1994. Inan April 3, 2020 Order, former District Court Judge Gomez ruled that the ADC was

not part of the Consent Judgment. On April 8, 2020, the Board of Trustees voted to proceed with

an appeal of the ADC portion of the decision to the U.S. Court of Appeals for the Third Circuit and

to initiate a separate enforcement action in the V.I. Superior Court to enforce the provisions of



3 VIC 718(f) and 3 VIC 718a. The GERS filed its Notice of Cross Appeal on April 8, 2020.



4

Government Employees’ Retirement System August 11, 2020

Overview of Operations



PRIOR YEARS MISSING EMPLOYER CONTRIBUTIONS



Also, in the April 3, 2020 Order, former District Court Judge Curtis Gomez found the following:

1). The Government breached the Consent Decree by not paying fixed rate employer

contributions required under 3 V.I.C. §718(g) in the amount of $13, 860, 879 for the period of

January 1, 1991 through December 31, 2009.



2). The Government breached the Consent Decree by not paying fixed rate employer

contributions required under 3 V.I.C. §718(g) in the amount of $5,000,000 for the period of

January 1, 2010 through December 31, 2018.



3). The Government is liable for statutory interest and penalties in the amount of $6,121,273 for

the period of 2010-2018 and $43,161,354 for the 1991-2009 period.



The Court Order required the GVI to pay GERS $63,143,506 in seven (7) equal installment payments

beginning in May 2020. This sum was consistent with GERS’s and RSM’s (court appointed

consultant) findings.



The GVI filed a Notice of Appeal on April 7, 2020. The Third Circuit Court of Appeals ordered an

expedited schedule. The Appeal has been fully briefed and the parties are awaiting a date for oral



arguments. It should be noted that the St. Croix Government Retirees Inc. (SCGR) and Government



Retirees United for Fairness Inc. (GRUFF) filed an Amicus Brief in support of the GERS.

DIRECT CONTRIBUTION DUE FROM CENTRAL GOVERNMENT (Act Nos. 7261 and

8244)



1). Act No. 7261 calls for appropriating in the fiscal year ending September 30, 2013, and all

subsequent fiscal years, the sum of $7,000,000 from the Internal Revenue Matching Fund to



the GERS as a direct contribution. I am pleased to report that GERS has received $42



million from the Internal Revenue Matching Fund under Act No. 7261.

Government Employees’ Retirement System August 11, 2020

Overview of Operations



2). Act No. 8244 provided an appropriation from the Internal Revenue Matching Fund for the

fiscal year October 1, 2019 to September 30, 2020, to the GERS as a contribution to outstanding

employer contributions in the amount of $6 million and $4 million as a direct contribution.



On February 5, 2020, former District Court Judge Curtis Gomez ordered the Government of



the Virgin Islands to pay $5.0 million to the GERS by March 5, 2020, for outstanding employer

contributions for the period January 1, 2010 through December 31, 2018. On March 3, 2020, the

GERS received $5 million in its account from the Internal Revenue Matching Fund from the central

government. Therefore, there is $5 million ($1 million for outstanding employer contributions and

$4 million as a direct contribution) remaining to be paid to the GERS from the Internal Revenue

Matching Fund for the fiscal year October 1, 2019 to September 30, 2020 under Act No. 8244.

ASSETS (INCLUDING INVESTMENTS)



The assets of the GERS include the investment portfolio, which is comprised of cash and cash

equivalents, equity, fixed income, private equity and other alternative investments, such as real



estate, local investments, and member loans.



PORTFOLIO PERFORMANCE - EXHIBITS D and E



The System terminated all its active equity (stock) managers and continues its commitment to a

disciplined investment strategy using the Dynamic Asset Allocation investment strategy. Its

investment portfolio is now managed by 1 active fixed income (bonds) manager, | index (equity

and fixed income) manager, and | private equity (non-local) manager.



The market value of the portfolio as of June 30, 2020, was $484.2 million which represents a

decrease from $55.8 million from September 30, 2019. To meet obligations to the retirees for

benefit payments, $90 million was withdrawn from the Fund. The Fund earned income of $10.8



million and had a gain of $25.6 million. Note that the June 30, 2020 market value of $484.2



6

Government Employees’ Retirement System August 11, 2020

Overview of Operations



million excludes the member loans program - $39.5 million, an Alternative Investment Program

loan - $3 million, the office complexes - $7 million, the vacant land on St. Croix and St.



Thomas - $7 million, and Havensight Mall - $41 million. Therefore, the otal market value of the

System’s assets as of June 30, 2020 is approximately $581.7 million. The System’s aggregate

assets performance as of June 30, 2020 fiscal year-to-date was 5.10 percent, which exceeded the

performance of many of its peers during this period. The plan returned 4.1 percent for the

quarter, and over the one-year period was 6.6 percent. Since inception, the plan has returned 8.8

percent, Total Equity has returned 11.5 percent and Total Fixed Income (bonds) has returned 7.3

percent.



Over the years, there has been a misconception that the Board has made bad investments. This is so

far from the truth. Over the past 20 years, the market rates of return have been positive 16



out of 20 years (See EXHIBIT F). In many of the years, the returns were well above the assumed

rate of return of 7 percent or 8 percent, and as high as:



2003 - 17.6 percent



2004 - 10.6 percent



2005 - 11.8 percent



2007 - 14.1 percent



2012 - 14.5 percent



2013 - 9.1 percent



2017 - 11.2 percent



The negative returns were a result of market conditions in 2001 and 2002, 2008 and 2015.



When compared to its peers of the same size, to include the value of its assets and its portfolio,



GERS’s performance is in line with or above that of its peers.

Government Employees’ Retirement System August 11, 2020

Overview of Operations



ALTERNATIVE INVESTMENT PROGRAM



Title 3, Section 12, Chapter 27of the Virgin Islands Code gives the Board of Trustees the

authorization to invest in an Alternative Investment Program (AIP). Alternative investments are

private market (non-publicly traded) investments in domestic and international venture capital and

special equity; simply any investments other than the traditional equity and bonds.



The AIP was designed to enhance the total Fund performance by generating a long-term rate of

return greater than the Fund’s assumed actuarial rate of 7.0 percent. On January 23, 2014, the

Board approved a rate of no less than 10 percent effective January 1, 2014, for all alternative local

investments. Shortly thereafter, the Board suspended the AIP. To date, GERS has invested in three

types of alternative investments, private equity, real estate, special situations (local investments),



and member loans.



At July 31, 2020, the portfolio for Alternative Investment Program consisted of:

Private Equity

Mesirow Financial Private Equity Fund (Limited Partnership)

Real Estate

e GERS Complexes on St. Thomas and St. Croix



e Undeveloped Land (Estates Hoffman/Nullyberg on St. Thomas and Estate Coakley Bay on

St. Croix)



e Havensight Shopping Mall — St. Thomas



Member Loans (Personal and Mortgages) — Territory-wide



ACTUARIAL VALUATION



Title 3, Chapter 27, Section 718 (a) of the Virgin Islands Code mandates that the Government



Employees’ Retirement System of the Virgin Islands be financed on an “actuarial reserve basis”.

Government Employees’ Retirement System August 11, 2020

Overview of Operations



An “actuarial reserve basis” generally means that the retirement benefits are funded during



employee’s active years of employment so that by the time they retire, the benefits would have

been fully funded in advance of their retirement date. The actuarial valuation, which is conducted

by the System’s Actuary, determines the contribution rate necessary to meet the cost of benefits

being accrued and a corresponding amount to pay down a portion of the unfunded liabilities. An

actuarial valuation is performed to calculate the ADC and is based on the assumptions and methods

adopted by the Board. For many years, the actual amounts contributed by the plan sponsors have

not been based on the required ADC amounts. The amounts that were contributed by the Plan

Sponsor have been significantly less than the required ADC. The October 1, 2019, actuarial

valuation has not been completed. It is expected that a report will be presented to the Board and

issued by the end of September 2020. The Legislature will receive a copy of the report and it will



be made public shortly thereafter.



ANNUAL FINANCIAL AUDIT



The System’s fiscal year ending September 30, 2019 annual certified financial audit is expected to

be issued by the end of August 2020. The Legislature will receive a copy of the report and it will

be made public shortly thereafter.



MAJOR ACCOMPLISHMENTS FOR FISCAL YEAR TO DATE 2020



Organizational Development



Held cross agency/functional unit team meetings



Continued cross training throughout the agency to leverage internal talent

Held employee relations activities to boost morale



Negotiated with two (2) bargaining units and adjustments paid to staff



LNA



Stakeholder Engagement



Held two Townhall Meetings



Held territory-wide HR Officers’ Meeting



Streaming all board meetings on our YouTube channel live

Newsletters via constant contact



Meetings held with the Legislature / Governor re: GERS Status



NNN SN



9

Government Employees’ Retirement System August 11, 2020

Overview of Operations



¥ Opened a “new” customer service unit



Technological and Infrastructure Advancement



v¥ Began implementing cloud-based back-up and V3 migration

v¥ Began server infrastructure upgrade

v¥ Upgraded of the accounting software



Financial/Fiscal Sustainability and Growth



v¥ Received funding from FEMA for 2017 storm damage at GERS



v¥ Successfully litigated Court Case



v¥ Aggressively seeking funding/solutions for the solvency of the GERS

vY Transitioned Havensight Mall management to GERS



Operational Efficiency and Excellence



Redesigned process for retirement including enforcement of 718k

Issued 2019 Annual Benefits Statement



Retirees now receiving paper checks less than 2%



Refunds being issued within an average of 90 days



Retirees without any issues are receiving initial annuities within an average of 60 —

90 days



<4 455



MAJOR GOALS FOR FISCAL YEARS 2020 AND 2021



UPCOMING FY 2020 GOALS



v Tier Il Annual Benefits Statement

v¥ Reduce the number of pending software issues

Y Complete 50% of the capital projects



FISCAL YEAR 2021 GOALS



¥ Tocomplete repairs and renovations to Havensight Mall due to Hurricanes Irma and

Maria



Complete Capital Projects to include replacement of A/C system and Roof at the St.

Thomas complex



Complete V3 migration to cloud-based



Continue to increase employee engagement and morale.



Increase Cyber Security



Streamline and automate processes



Initiate engagement with retirees to educate on the management of their finances

before and after insolvency



iN



SAK KAK



CONCLUSION

Mr. Chairman, on May 13, 2020, the GERS Board of Trustees forwarded a letter to the Governor



and the President of the 33" Legislature and copied all senators. The purpose of the letter



10

Government Employees’ Retirement System August 11, 2020

Overview of Operations



was to advise the Governor and the Legislature pursuant to 3 VIC section 715 (b) (8) which

authorizes the GERS Board to recommend to the Governor and Legislature, not less than

biannually, an adjustment in benefits for all annuitants and pensioners based on a review of

cost-of-living and related economic factors and consistent with actuarial projections on the

solvency of the System. Along with the letter, the Board forwarded:



e Pension Reform Taskforce Report dated May 13, 2013



e Mercer Consulting Report dated October 26, 2016



e Congressional Research Service Economic Report related to the Virgin Islands dated June

20, 2018



e GERS White Paper published August 2019



e Segal Consulting presentation dated April 23, 2020



The Board recommended that:



1). The Plan Sponsor immediately fund the System on an actuarial basis to satisfy the Actuarially

Determined Contribution of $195,000,000 for fiscal year ended September 30, 2019.

2). In absence of compliance with the ADC funding requirement recommended in 1 above, a

42 percent reduction in all benefits payments beginning January 1, 2021.

The Board has not received a response from the Governor or the President of the Legislature.

Also, we are aware that the Governor by Executive Order on June 23, 2020, which established a 12

member Advisory GERS Funding Task Force to create a funding plan for the Government

Employees’ Retirement System. The Executive Order further states that once all Task Force

members were appointed by the Governor; the group will have four months from the date of

composition to present an initial GERS Funding Plan to the Governor. We are not aware that all

Task Force members were appointed.

I would be remiss if I did not make another plea to the 33" Legislature on behalf of the retirees and

active members of the GERS, and the Territory to make funding the GERS the No.1 priority.



This concludes our presentation. We are available to respond to questions that you may have.



11

EXHIBIT A



Valuation Results as of October 1, 2018



Unfunded

Liability



Actuarial Accrued Liability (AAL) $3.67 Billion $3.70 Billion

Actuarial Value of Assets $0.85 Billion $0.77 Billion

Unfunded Actuarial Accrued — “:

Liability $2.82 Billion $2.93 Billion

Total Actuarially Determined “ti aie

Employer Contribution (ADEC) $267.7 Million $277.5 Million

EXHIBIT B



GERS CONTRIBUTIONS VS BENEFIT PAYMENTS



FISCAL YEAR Total Contributions* Benefit Payments & Expenses* Variance*

1994 61.7 46.7 13.0

1995 74.9 64.6 10.3

1996 ale Vana (1.6)

1297 74.3 80.0 (3:7)

1998 712 91.6 (19.7)

1999 ala 95.4 (23.7)

2000 70.2 103.7 (33.5)

2001 69.1 1212 (52.1)

2002 80.1 133.0 (32.9)

2003 82.1 138.0 (55.9)

2004 84.9 142.6 (57.7)

2005 81.9 153.0 (71.1)

2006 99.3 161.0 (61.7)

2007 96.6 170.5 (73.9)

2008 112.8 184.7 (71.9)

2009 116.8 187.0 (70.2)

2010 117.1 208.3 (91.2)

2011 123.8 223.0 (99.2)

2012 104.4 251.5 (147.1)

2013 98.5 260.1 (161.6)

2014 102.3 265.9 (163.6)

2015 108.5 266.5 (158.0)

2016 127.8 274.2 (146.4)

2017 132.7 274.5 (141.8)

2018 141.2 219.8 (138.6)

2019 133.1 286.2 (151.1)

2020 Unaudited 9 months 107.0 216.6 (109.6)



*Millions

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019



Totals



* = Projected



48,659,324 38,169,889

48,123,177 34,850,312

47,181,730 38,632,619

46,856,812 39,353,600

55,089,820 50,944,748

58,128,608 46,075,378

58,251,171 47,703,717

62,578,121 45,984,661

62,237,129 45,148,387

64,992,493 44,078,554

64,179,332 43,387,158

95,186,021 50,594,531

117,124,599 51,588,235

108,358,399 54,084,454

120,184,848 51,542,030

131,059,471 65,061,430

137,797,268 60,778,382

138,488,871 75,871,146

147,490,851 80,177,004

157,817,709 77,004,630

162,841,336 80,849,762

178,644,349 66,677,155

172,439,842 64,431,322

189,715,251 68,298,617

200,089,791 72,287,934

247,158,137 86,346,838

250,574,023 84,802,335

277,523,563 96,748,000

287,300,000 * 85,881,945

3,736,072,046 1,747,354,773



6% Loss Investments

Balance Due



10,489,435

13,272,865

8,549,111

7,503,212

4,145,072

12,053,230

10,547,454

16,593,460

17,088,742

20,913,939

20,792,174

44,591,490

65,536,364

54,273,945

68,642,818

65,998,041

77,018,886

62,617,725

67,313,847

80,813,079

81,991,574

111,967,194

108,008,520

121,416,634

127,801,857

160,811,299

165,771,688

180,775,563

201,418,055



1,988,717,273



119,323,036



2,108,040,309



78.44%

72.42%

81.88%

83.99%

92.48%

79.26%

81.89%

73.48%

72.54%

67.82%

67.60%

53.15%

44.05%

49.91%

42.89%

49.64%

44.11%

54.79%

54.36%

48.79%

49.65%

37.32%

37.36%

36.00%

36.13%

34.94%

33.84%

34.86%

29.89%



EXHIBIT C

———



———



EXHIBIT D



Employees' Retirement System of the Government of the Virgin Islands



MEKETA



Cash Flow Analysis | As of June 30, 2020



Fiscal YTD



MA



t



=



=



.



nal



BleceROck Russell 1000 erowth iadex



$2



5,480,592



$0



-$26,911736



$1422144



BlackRock Russell 1000 Index



$47,909,024



$O



$O



$2,851,522



$50,760,546



5.95%



BlackRock Russell 1000 Value Index



$19,297,171



$O



-$18,673,508



-$623,662



Yan



BlackRock TIPS



$47,793,801



$oO



$O



$3,243,963



$51,037,764



6.79%



BlackRock U.S. Debt Index



$204,409,873



$oO



$O



$13,093,007



$217,502,880



6.41%



1.26%



Cash



$101,976,503



$56,419,814



-$90,172,816



$1,102,805



$69,326,307



$6,462,647



$O



-$956,010



-$363,782



$5,142,855



-6.15%



Mesirow Financial Private Equity Partnership Fund IV, L.P



Mesirow Financial Private Equity Partnership Fund V, L.P



$8,098,873



$O



-$1,024,281



-$332,982



$6,741,610



-4.52%



$83,647,461



Pugh Core axeC Income



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MEKETA INVESTMENT GROUP



——



—



——



————

EXHIBIT E



Employees' Retirement System of the Government of the Virgin Islands



MEKETA



Total Retirement System Aggregate | As of June 30, 2020



Asset Class Performance Summary



AA



ee ee ee



-



eis



oo



oe



ee ee



Total Retirement ase Aggr



e



outs .



84,



159,422



100.0



41



3.1



5.1



6.6



6.9



6.3



8.0



8.8



Jul-ei



Domestic Equity Assets



50,760,546



10.5



21.8



-3.8



5.1



6.5



11.4



10.7



13.8



1.5



Jul-81



Russell 3000



22.0



=o)



33



65



10.0



10.0



13.7



110



Jul-81



12,1



3.4



6.2



6.5



8.8



5.4



4.3



3.8



7.3



Jul-81



Domestic Fixed Income Assets



352,188,104



29



6.1



6.3



87



5.3



43



38



78



Jul-81



BBgBarc US Aggregate TR



Alternative Investment Assets



11,884,465



2.5



69,326



San



oie



Sens RASS



=



a



tte



gr cova aanrennen Seno TT a ea Te ee tte e eer ee Ts



MEKETA INVESTMENT GROUP



————



————i-



Oe



ee

EXHIBIT F



Investments



Market Rates of Return



20.0%



15.0%



10.0%



_— Ee oe



———



ae ate



Secs



—_— Zz



al eae



_—eSe Se se



5.0%



0.0%



-5.0%



-10.0%



-15.0%



2011



2012



2016



2018



2000



2001



2002



2003



2004



2005



2006



2007



2008



2009



2010



2013



2014



2015



2017



2019



| ll Market 8.8% | -4.9% | -2.1% | 17.6% | 10.6% | 11.8% | 7.5% | 14.1% |-10.2%] 2.9% | 8.1% | 1.5% | 14.5%] 9.1% | 5.2% | -0.6% | 7.8% | 11.2%| 7.1% | 5.2%



Average Market Rate of Return



Period



Time-Weighted



Dollar-Weighted



Current Assumption



7.0%



7.0%



2000-2019



6.3%



6.0%



2000-2009



5.6%



5.2%



2010-2019



6.9%



6.6%



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