HomeMy WebLinkAboutResolution - 2018-R0373 - Actuarial Audit Report - 10/25/2018Resolution No. 2018-RO373
Item No. 6.3
October 25, 2018
RESOLUTION
WHEREAS, the City Council has reviewed the Actuarial Audit Report of the Lubbock
Fire Pension Fund and finds that it complies with the actuarial audit requirements of Section
802,1012 of the Texas Government Code; NOW THEREFORE;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Actuarial Audit Report of the Lubbock Fire Pension Fund BE and is hereby
accepted for the City of Lubbock, Texas. Said Report is attached hereto and incorporated in
this Resolution as if fully set forth herein and shall be included in the minutes of the City
Council.
Passed by the City Council on the _.25th day of _ _October , 2018.
DANIEL M. POPE, MAYOR
ATTEST:
qe4 ecca Garza, City Secre ry
APPROVED AS TO CONTENT:
D. Blu Kost ich, Chief Financial Officer
APPROVED AS TO FORM:
A y eputy i torney
RES.Accept Audit Report LFPF for 2018 (10-11-18)
:clj0 9mrri:an Slid. Al"e.r Suit, S0+1 952-;`6_:`..111
Eslnomin m�i, AtA i3.1; 1 wv, ,,aie c an
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Gallagher
Insurance I Risk Management i Consulting
October 8, 2018
Ms. Linda Cuellar
Director of Accounting
City of Lubbock, TX 79401
Re: Actuarial Audit — Lubbock Fire Pension Fund
Dear Ms. Cuellar:
Gallagher Benefit Services, Inc. is pleased to provide the enclosed documents which collectively
represent the final report of the Actuarial Audit of the Lubbock Fire Pension Fund.
Report Contents
The following documents are enclosed:
The Preliminary Draft Actuarial Audit Report. The enclosed report is unchanged from
the report provided to the City on September 51h. The report includes (1) a Plan Liability
Audit to verify the accuracy of the Fund's actuarial valuation, (2) an Actuarial Assumption
& Cost Method Review to provide a thorough analysis of the economic and demographic
assumptions and the actuarial cost methods used to determine the results presented by
the Fund's actuary, and (3) a Summary of Findings & Recommendations to restate the
significant findings of the audit.
■ The Fund's response to the Preliminary Draft Actuarial Audit Report. The Fund's response
consists of a letter dated September 24th from John M. Crider, Jr., the Fund's actuary.
■ Copies of emails verifying the above delivery dates.
Purpose of the Report
This report is in response to the actuarial audit requirements of Government Code Chapter
802.1012. The law requires an actuarial audit of the actuarial valuations, studies, and reports for
the five year period from January 1, 2012 through December 31, 2016. This report attempts to
meet the requirements of the law as well as provide the City with other information that we believe
is important to fully understand the current status and future of the Fund.
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
The process to convert liability estimates into contribution requirements involves several steps as described on the previous page. The following chart
demonstrates the process:
Present Value of Benefits
Actuarial Accrued Liability
— — — — — '
Value of Assets Unfunded i
Liability
i
Required Contribution =
4
Present Value of Future
i
Normal Costs i
— — — J
aau�x �
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
A summary of the liabilities presented in the December 31, 2016 Actuarial Valuation and those calculated by GBS are shown below:
Present Value of Benefits
Crider
GBS
Difference
Comments
The Plan Liability Audit indicates that the
liability and normal cost estimates by GBS
are in the aggregate reasonably close to
estimates by the Fund's actuary.
Differences less than 5% are generally
considered to be a reasonable match.
GBS's liability and normal cost estimates are
both within 3% of the amounts determined
by the Fund's actuary.
Larger differences in the Normal Cost
components are noteworthy, but of less
concern due to the small difference of the
total result. Differences in Normal Cost
components may be the result of a
difference in classification of liabilities. For
example, benefits due to death after
termination may be allocated as either a
vested termination benefit or a death benefit.
Larger percentage differences appear in the
Unfunded Actuarial Accrued Liability and
Funding Period due to the leveraging effect
of taking differences to calculate these
values.
■ Active Members
$ 185,115,076
$ 183,508,854
-0.9%
■ Service retired
143,408,963
142,946,094
-0.3%
■ Disability retired
1,788,200
1,788,170
0.0%
■ Terminated
796,851
820,003
2.9%
■ Spouse beneficiaries
9,353,427
9,353,445
0.0%
■ Child beneficiaries
228,104
228,138
0.0%
Total Present Value of Benefits
$ 340,690,621
$ 338,644,704
-0.6%
Normal Cost for Active Members
■ Service retired
$ 5,348,773
$ 5,492,801
2.7%
• Death in active service
175,628
186,037
5.9%
■ Disability
659,869
638,302
-3.3%
■ Termination
588,384
487,884
-17.1%
Total Normal Cost
$ 6,772,654
$ 6,805,024
0.5%
Actuarial Accrued Liability
■ Active Members
$ 112,441,833
$ 106,619,840
-5.2%
• Service retired
143,408,963
142,946,094
-0.3%
• Disability retired
1,788,200
1,788,170
0.0%
• Terminated
796,851
820,003
2.9%
■ Spouse beneficiaries
9,353,427
9,353,445
0.0%
■ Child beneficiaries
228,104
228,138
0.0%
Total Actuarial Accrued Liability
$ 268,017,378
$ 261,755,690
-2.3%
Actuarial Value of Assets 194,664,263 194,664,263 0.0%
Unfunded Actuarial Accrued Liability $ 73,353,115 $ 67,091,427
-8.5%
Projected Pay for 2017
$ 30,503,469
$ 30,503,469
0.0%
Total Contribution (% of Payroll)
34.24%
34.24%
0.0%
Total Contribution
10,444,388
10,444,388
0.0%
Funding Period (Years) 33.5 29.0 -13.4%
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
Section Two — Actuarial Assumption & Cost Method Review
In the Plan Liability Audit section of this report, the assumptions and methods used by the Fund's actuary to calculate liabilities were applied to determine the
accuracy of the estimated liabilities. In the Actuarial Assumption & Cost Method Review section, the assumptions and methods are examined for
reasonableness, and the impact of changes to the assumptions and methods is also explored. The key assumptions and methods consist of economic
assumptions regarding investment returns, salary increases and loads, and inflation adjustments and demographic assumptions related primarily to individual
participant expectations for turnover, disability, retirement, and death.
From time to time, assumption changes are warranted. The most effective way to study and update assumptions is to perform an experience study to evaluate
actual plan experience versus expectations. Experience studies are common for public sector plans and are typically done in five-year intervals. The results of
the most recent Lubbock Fire Pension Fund Experience Study prepared by John M. Crider, Jr. were included in the December 31, 2016 Actuarial Valuation
report. The study generally covered the period from December 31, 2007 through December 31, 2016.
The Fund's actuary determines the value of liabilities and assets using actuarial cost methods. An actuarial cost method is used to separate the total liability
into past service and future service components and convert current liability estimates into recommended funding requirements. An Actuarial Asset Value is
used to determine how asset values should be determined each year. Other cost methods are used to determine how assumptions should be applied to value
liabilities.
The key assumptions and cost methods used by the Fund's actuary, along with analysis regarding the reasonableness of each assumption and method are
discussed in this section.
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
Actuarial Valuation Assumption
GBS Analysis
Investment Return: I Investment Return: I
7.75% per annum, compounded
annually
The experience study cited both historical Fund returns, as well as returns for TLFFRA calendar year plans. The five-
year average market value rates of returns for the Fund were 5.52%, compared to 6.53% for TLFFRA plans. The
Fund's average rate of return since January 1, 1995 was 7.55%.
The most recent TLFFRA Pension Report published by the Texas Pension Review Board in February 2018 shows that
the median and average assumed rates of return for FYE 2016 were 7.75% and 7.70% respectively.
Missing from the above comparison is how the Fund's asset allocation compares to the other plans. According to the
Fund's Investment Policy Statement, the target allocation is 55% equity, 25% fixed income, 15% real estate, and 5%
low volatility. By comparison, the TLFFRA Pension Report shows the average allocation was 50.57% equities, 20.58%
fixed income, 3.64% real estate, 7.87% alternative investments, 3.61 % cash, and 13.72% mutual funds. The Fund
appears to have a similar portfolio as their peers (although it is difficult to assess the make-up of "mutual funds" for
TLFFRA systems).
The other key influence on the assumption should be investment consultant expectations. Presumably this is
addressed in survey information as one would hope that all plans in the survey set their own assumption without simply
responding to what everyone else is doing. There was no detail provided regarding investment consultant expectations
for the Fund, which should be considered based on the Fund's specific investment policy and future outlook.
In summary, the Fund's current 7.75% assumption does not seem unreasonable on the basis of the investment
allocation and comparisons to its peer group. The Fund's adoption of a 7.75% assumption is close to the average
investment return assumption of 7.70% for the TLFFRA Pension Report, and the most common TLFFRA assumption is
7.75%. Given how the Fund's asset allocation compares to others, use of a similar assumption is defensible. The
Fund's investment consultant should project a long-term rate of return and consideration should be given to their future
expectations.
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
Actuarial Valuation Assumption GBS Analysis
Salary Increase Rate: Salary Increase Rate:
Compensation increase rates (SS Table 1613) are shown on The salary increase rates decrease as years of service increase, which is a common
the table below. assumption format. It is noted that based on the plan's average entry age of 27, a
member's compensation increases will average 5.89% per year over their career.
Years of
Annual Rate of
Years of
Annual Rate of
Service
Increase
Service
Increase
0
11.28%
20
4.00%
1
11.28%
21
4.00%
2
11.28%
22
4.00%
3
11.28%
23
4.00%
4
11.28%
24
4.00%
5
6.08%
25
4.00%
6
6.08%
26
4.00%
7
6.08%
27
4.00%
8
6.08%
28
4.00%
9
6.08%
29
4.00%
10
5.04%
30
4.00%
11
5.04%
31
4.00%
12
5.04%
32
4.00%
13
5.04%
33
4.00%
14
5.04%
34
4.00%
15
4.00%
35
4.00%
16
4.00%
36
4.00%
17
4.00%
37
4.00%
18
4.00%
38
4.00%
19
1 4.00%
39 1
4.00%
The experience study shows that average individual salary increase rates have been
lower than expected. Over the past two and five years expected increases have been
6.2% and 5.8% respectively, compared to actual increases of 5.1 % and 4.6%.
However, the expected average over the past ten years has been closer to actual
experience, 5.5% compared to 5.3%.
Considering the long-term nature of the salary increase assumption, it seems
reasonable to not give undue weight to the more recent experience. The above
described approach is a good combination of objective analysis and subjective
reasoning. The recommended assumption should not be viewed as being
unreasonable when developed on this basis.
If recent lower than average increases are expected to continue in the near -term, it may
be prudent to consider using a Select and Ultimate approach, where increases vary by
period from the measurement date. For example, increases of 1 % less than the current
table over the next few years, reverting back to the current table thereafter could help
smooth gains or losses.
8
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
Economic1. .
Actuarial Valuation Assumption
GBS Analysis
Total Payroll Growth Rate:
Total Payroll Growth Rate:
4.00% per year, compounded annually
The total payroll growth assumption is used to determine the Unfunded Actuarial Accrued Liability
(UAAL) amortization period. A decrease in the total payroll growth assumption increases the UAAL
amortization period.
Similar to individual salary increase rates, average payroll growth has been lower than expected in the
most recent experience study. Average payroll growth over the past ten years was 2.8% compared to
the 4.0% expected.
The Fund's actuary could analyze the validity of this assumption by performing an open group valuation
with the turnover and individual salary increase assumptions. The experience study did not indicate
whether this analysis was done.
Inflation Rate:
Inflation Rate:
3.00% per year
The inflation assumption should reflect long-term future expected inflation. The inflation assumption is
only implicitly used in the actuarial valuation as a component of the investment, salary increase, and
payroll growth assumptions.
The Consumer Price Index for All Urban Consumers (CPI-U) when measured over the past 10, 20, and
30 years has averaged 1.8%, 2.1 %, and 2.6% respectively. The 2017 OASDI Trustees Report used a
range of 2.0% to 3.2% for the inflation rates in their projections. The 3.00% assumption may be slightly
aggressive when compared to these sources.
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
10
a
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
iemograpw Assumptions (continuea),
Actuarial Valuation Assumption GBS Analysis
Termination Rates: Termination Rates:
Termination rates are shown on the table below: The recent experience study did not directly analyze termination rates, noting
Attained
Age
Term
Rate
Attained
Age
Term
Rate
Attained
Age
Term
Rate
18
0.055000
19
0.055000
20
0.055000
35
0.024866
50
0.000000
21
0.054723 136
0.022354
51
0.000000
22
0.054010
37
0.019922
52
0.000000
23
0.052906
38
0.017586
53
0.000000
24
0.051456
39
0.015367
54
0.000000
25
0.049706
40
0.013283
55
0.000000
26
0.047700
41
0.011378
56
0.000000
27
0.045486
42
0.009700
57
0.000000
28
0.043105
43
0.008269
58
0.000000
29
0.040600
44
0.007107
59
0.000000
30
0.038011
45
0.006233
60
0.000000
31
0.035373
46
0.005660
61
0.000000
32
0.032715
47
0.005397
62
0.000000
33
0.030064
48
0.005454
63
0.000000
34
0.027441
49
0.005822
64
0.000000
that this assumption is based on published rates adjusted to conform to the
plan's experience. A gain/loss analysis was shown for the entire accrued
liability; for the past 3 valuations the overall gains and losses have been
relatively small (each less than 0.5%). The termination assumption appears to
be reasonable based on the results of this analysis, as well as compared to
assumptions used by other Public Safety pension plans.
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
u. ..
Actuarial Valuation Assumption GBS Analysis
Disability Rates: Disability Rates:
Disability rates are shown on the table below: The recent experience study did not directly analyze disability rates, noting that
Attained
Age
Disability
Rate
Attained
Age
Disability
Rate
Attained
Age
Disability
Rate
18
0.00075
19
0.00080
20
0.00085
35
0.00152
50
0.00533
21
0.00090
36
0,00162
51
0.00586
22
0.00096
37
0.00173
52
0.00645
23
0.00101
38
0.00187
53
0.00710
24
0.00106
39
0.00203
54
0.00780
25
0.00111
40
0.00221
55
0.00858
26
0.00112
41
0.00239
56
0.00943
27
0.00113
42
0.00259
57
0.01036
28
0.00114
43
0.00281
58
0.01137
29
0.00118
44
0.00307
59
0.01247
30
0.00122
45
0.00335
60
0.01367
31
0.00125
46
0.00367
61
0.01497
32
0.00130
47
0.00402
62
0.01638
33
0.00136
48
0.00441
63
0.01779
34
0.00143
49
0,00485
64
0.01920
this assumption is based on published rates adjusted to conform to the plan's
experience. A gain/loss analysis was shown for the entire accrued liability; for
the past 3 valuations the overall gains and losses have been relatively small
(each less than 0.5%). The disability assumption appears to be reasonable
based on the results of this analysis, as well as compared to assumptions used
by other Public Safety pension plans.
12
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
Demographic Assumptions (continu:.
Actuarial Valuation Assumption
GBS Analysis
Mortality Rates:
Mortality Rates:
Employee and Healthy Annuitant
The recent experience study did not directly analyze mortality rates, noting that this assumption is based on
Combined Rates from the RP-2000
published rates adjusted to reflect future improvements. The RP-2000 table is a commonly used table for
Mortality Table, projected to 2024 using
public pension plans, and this family of tables was used for IRS funding requirements and lump sum
Scale AA, with separate rates for males
payments for private sector plans through 2017. The use of projected improvements adds a degree of
and females
conservatism to the mortality assumption, and is recommended by Actuarial Standards of Practice.
DROP Election:
DROP Election:
Members eligible for the Retro DROP are
This assumption may be somewhat conservative, as all members likely won't make the "more valuable"
assumed to elect either straight service
choice. However, this shouldn't have a material impact on the valuation results.
retirement benefits or the full Retro DROP,
whichever is more valuable. Other
members are assumed to receive straight
service retirement benefits.
Marriage & Spouse Age:
Marriage & Spouse Age:
100% of Members are assumed to be
The normal form of payment for the plan is a life annuity, with 2/3 continuation to the member's surviving
married.
spouse. The marriage assumption is somewhat conservative, as all members likely won't be married at
Actual age differences are used for
retirement. However, because of the factor adjustment for members who elect a single life annuity (+6.6%)
married members. Unmarried members
this shouldn't have a material impact on valuation results.
are assumed to be married at retirement.
Males are assumed to be three years
The spouse age difference appears reasonable based on current retiree data, as well as compared to
older than their spouses.
assumptions used by other plans.
13
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
MethodsIll. Cost
Actuarial Valuation Assumption
GBS Analysis
Actuarial Cost Method:
Actuarial Cost Method.
Entry age normal actuarial cost method.
The Entry Age Normal cost method is the cost method permitted by GASB 67/68 and is the most
commonly used in large public sector pension valuations. We support continued use of this cost
method.
Actuarial Asset Method.
Actuarial Asset Method.
MV - (4/5) x G/(L), - (3/5) x G/(L)2
This assumption smooths potential volatility in future funding requirements. It does not affect long-term
- (2/5) x G/(L)s - (1/5) x G/(L)4
funding of the plan. Any smoothing method is reasonable provided that it is consistently used and is not
created with the intent to bias results. This method is reasonable.
With a maximum value of 120% of MV and a
minimum value of 80% of MV.
MV = market value of assets as of the
valuation date
G/(L); = asset gain or (loss) for the i-th year
preceding the valuation date
14
AfZ
�H
A
ACTUARIAL AUDIT OF THE LUBBOCK FIRE PENSION FUND
Section Three — Summary of Findings & Recommendations
The following summarizes our significant findings and recommendations that the City may consider:
Finding
Recommendations
Participant Data
There were no issues obtaining participant data from the
Confirm status change has no impact on valuation
Fund's actuary or loading that data into GBS's software
results.
system. The data was reviewed for reasonableness, and no
significant outliers were found that would materially impact
results. One small status inconsistency was discovered, but it
doesn't appear that this difference is affecting the Fund's
liability or contribution results.
Liability Audit Results
GBS's estimates of the total Actuarial Accrued Liability and
The plan liability audit is not a required component
Normal Cost are both within 3% of the amounts determined by
of the actuarial audit, but we feel it is the most
the Fund's actuary. However, the difference in the amortization
efficient method to determine the reasonableness of
period is over 4 years.
liabilities. Our results also demonstrate how
sensitive the amortization period can be when
liability results are off by a small percentage (i.e. a
less than 3% difference in liabilities resulted in a
13% difference in the amortization period).
Assumptions & Methods
Based on our review of the Fund's actuarial valuation and
The Fund's investment consultant should project a
experience study, the assumptions and methods used are not
long-term rate of return and consideration should be
unreasonable. However, the economic assumptions may be
given to their future expectations.
slightly optimistic compared to recent changes by other public
sector pension plans.
The Fund could consider using a Select and
Ultimate approach if recent salary increase
For example, the most recent TMRS valuation uses 2.50%
experience is expected to continue in the near -term.
general inflation, 6.75% investment return, and 3.00% payroll
growth assumptions. Similarly a recent NASRA public fund
study shows the median investment return assumption has
dropped to 7.50%.
Conservative vs. Aggressive
The Fund's assumption set does not appear to be particularly
No immediate action is required. The only
Assumptions
conservative or aggressive in the aggregate. Some individual
recommendation is the Fund should carefully
assumptions may be somewhat aggressive (e.g., investment
consider when setting future assumptions whether
return) while others may be somewhat conservative (e.g.,
assumptions are either individually or collectively
salary increases).
conservative or aggressive.
15
f
From: John Crider
To: Linda Cuellar
Cc: Krista Bailev; Lubbock FPF; Jen Turk
Subject: Draft Actuarial Audit of the Lubbock Fire Pension Fund
Date: Monday, September 24, 2018 4:56:12 PM
Attachments: ResponseToPreliminarvActuarialAudit20l8O924.Ddf
09/24/2018
Linda,
Attached is the fund actuary's response to the preliminary actuarial audit of the Lubbock Fire
Pension Fund. I believe that the City and the fund can use the actuarial audit as set out in the draft.
I appreciated Jeri Turk's discussing the draft report with me earlier today. If you would, please
forward a copy of the final report when it becomes available.
John
JOHN M. CRII)ER, JR.
CONSULTING ACTUARY
1701 GATEWAY BOULEVARD, SUITE 461
MCHARDSON, TExAs 75080.3627
P.O. Box 832066
RICHARDSON, TExAs 75083.2066
September 24, 2018
Via E-mail
Ms. Linda Cuellar
Director of Accounting
City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
Re: 2018 Actuarial Audit of the Lubbock Fire Pension Fund
Dear Linda:
TELEPHONE (9721690-5390
FAX (972) 690-5398
This letter represents the fund actuary's response to the preliminary draft of the actuarial audit of the
Lubbock Fire Pension Fund by Gallagher Benefit Services, Inc., dated September 5, 2018. The
comments in this letter are based on the preliminary draft and upon a telephone conversation with
Ms. Jennifer Turk, EA, FSA, MAAA of Gallagher Benefit Services, Inc. on September 24, 2018.
Based on the preliminary audit report and my conversation with Ms. Turk, it is my understanding the
actuarial audit finds that the December 31, 2016 valuation results are sufficiently close to the actuarial
audit results. The preliminary actuarial audit report provides a thorough examination and discussion
of the results of the actuarial position of the fund. In summary, it is my understanding that the firm
which performed the actuarial audit has found that the results of the December 31, 2016 valuation of
the Lubbock Fire Pension Fund are acceptable.
The balance of this letter discusses some of the findings of the actuarial audit.
Page Two
The benefit of one child included in the non -active lives was coded as a straight life annuity. This is
due to the fact that the individual in question is a disabled child. Section 6.05 c. of the plan document
provides that the benefit of such an individual is to be paid for as long as a dependent child is
disabled. Based on the condition of the individual in question, the board of trustees has determined
that benefits will most likely be paid for this individual's lifetime.
Ms. Linda Cuellar
September 24, 2018
Page Two
Page Five
The actuarial audit points out that differences between actuaries' results are generally considered to be
reasonable if the differences are five percent or less. The report states that, "CBS's liability and
normal cost estimates are both within 3% of the amounts determined by the Fund's actuary." The
fund's actuary agrees that the larger differences between the normal costs and actuarial accrued
liabilities for individual benefits (e.g. death, disability, and termination of employment) are due to
differences in the methodologies applied to developing the normal cost and actuarial accrued liability
for each individual benefit.
The fund's actuary also agrees with the auditing actuarial firm's explanation of the reason for the
larger percentage difference between the two firm's unfunded actuarial accrued liabilities and
amortization period. It should be noted that the amortization period calculated by the auditing
actuarial firm is shorter than that calculated by the fund's actuary.
Pages Seven Through Fourteen
The actuarial audit sets out a review of the individual assumptions used in the valuation and recognizes
the difference in actuaries' opinions which currently exist on various assumptions. It should be noted
that inflation, as measured by the Consumer Price Index for All Urban Consumers, has accelerated
over the last year and a half. The CPI-U increased at an annual rate of 2.7 percent for the twelve-
month period ending in August of 2018.
Page Fifteen
The table on the final page of the actuarial audit, in the fund actuary's view, accurately summarizes
the results of the actuarial audit.
Conclusion
The fund's actuary believes that the Gallagher Benefit Services, Inc. has provided an actuarial audit
which satisfies the requirements of Section 802.1012 of the Texas Government Code and which
provides an accurate review of the issues facing the Lubbock Fire Pension Fund, The actuarial audit
compares favorably with other such audits the fund's actuary is familiar with.
Please provide a copy of the final version of the actuarial audit when it becomes available.
Ms. Linda Cuellar
September 24, 2018
Page Three
If you have questions concerning this letter or if additional information is needed, please feel free to
contact me.
Sincerely,
John M. Crider, Jr., ASA, EA, MAAA
cc: Board of Trustees
Lubbock Fire Pension Fund
Ms. Jennifer Turk, EA, FSA, MAAA
Actuarial Consultant
Gallagher Benefit Services, Inc.
LubbockPpfl2018ActuarialAudit�ResponseToPreliminaryActuaria)Audit20180924.doe