Molly to Damon re: Retreat topics

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From: Molly Janczyk
Sent: Friday, January 27, 2006
Subject: Damon:QUES: ; ** RETREAT ITEMS

Dear Damon, Thank you for addressing me personally in your letter included in the SB190 report.

I have questions to better understand termonology and therefore the report although these last days has brought some insight.

pg. 3: Benefit formula inc. to 2.5% of final average salary for the first 30 yrs.

Does that mean those with 30 yrs go out at 2.5%?____

pg. 4: I assume inactives are included in the active amount of cost:

**FOR THE RETREAT: COULD THE AREA OF INACTIVES BE REVISISTED? SUGGESTION: Any inactive beyond 5 yrs., has a cash out as with many companies at 1 or
2 yrs to reduce drain on system. There is no legal reason that inactives must remain in system waiting for STRS to give them money and HC in addition to their present employees since many have gone on to other careers or stopped working.

pg. 6: Please explain the difference between Market Value and Actuarial Value. Is market value real return and acuarial planned only return?

pg. 7: There were addt'l actuarial losses due to member experience means?

Retirement rates were reduced to reflect experience means?

Other demographic assumptions were changed to reflect experience means?

pg. 10 and 11: I really don't understand

pg. 12 shows what exactly: I see the title but please tell me very plainly the result.

pg. 15: Enrollees' share of HC has increased since 2000, so savings impact on HCSF has been reduced. I thought we saved more because of SB190. I find THIS SENTENCE CONFUSING.

pg. 17: Benefit formula will decrease to 2.1% from 2.5% of final average salary for FIRST 30 yrs. Same as ques above on this item.

Thank you. I appreciate your direct and simple answers for this novice

Molly J.