Attachment 6Subject: FW: Change in Allocation Method
Original Message
From: Phil Koen[mailto:pkoenPmonteropartners.com]
Sent: Monday, February 06, 2017 8:42 AM
To: Laurel Prevetti; Stephen Conway
Subject: Change in Allocation Method
Laurel and Steve,
In your memo to the Town Council you mention on page 3 a change in allocation method which resulted in a material
decrease in the Safety Plan Net Pension Liability. In reading the Bartel and Associates report it appears that the
magnitude of the reduction was from .474242% to .247544%. This among other factors resulted in the Town 's
proportionate share of Safety Plan Net Pension Liability to decrease from $17.7m in 2015 to $10.2m in 2016.
While the $7.5m reduction in the net pension liability is good to see, could you please provide more information to the
Town Council and the public as to the difference in the allocation methodology the Town used in prior years. Specifically
what was the difference between the allocation methodology used by CALPERS in their GASB. 68 valuation
accountability report which it appears the Town relied upon in prior years vs. the methodology the Town adopted in the
2016 CAFR.
Thank you.
Phil Koen
Sent from my iPad
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ATTACHMENT 6