Experience Apportionments - Board of Pensions

Experience Apportionments Balancing security, equity, and purchasing power

Mechanics 2. Board of Directors grants experience apportionment per policy guidelines.

= = = =

• Less than 110% funded • 110% but less than 120% funded • 120% but less than 125% funded • 125% funded or more

Balance Generational equity (no group of plan members fares better or worse than another)

Purchasing power (protection against inflation, allowing independence and dignity)

no apportionment 1% apportionment 2% apportionment > 2% per actuarial analysis

Value over time Value over time Cumulative 5-year increase for experience apportionments is 18.4% compared to the 7.4% consumer price index.

Funded Status

Plan security (assets equal promised current and future benefits)

160% 140% 120% 100% 80% 60% 40% 20% 0%

148.0%

Rev. 6/18

3.9% apportionment in 2018 131.0%

130.6%

123.9%

124.2%

20% 18.4% 18% 16% 14% 12% 10% 7.4% 8% 6% 4% 2% 0%

2013 2014 2015 2016 2017

n Funded Status

PEN-604

For 2018: More than 125% funded = 3.9% apportionment granted

Cumulated Growth

1. Board manages Pension Plan funding status. 100% (fully funded) means assets equal current and future benefits

n CPI Growth

n Apportionment Growth

© 2018 The Board of Pensions of the Presbyterian Church (U.S.A.)