City of Tacoma Washington TERS Dashboard June 2019

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City of Tacoma, Washington TERS Dashboard June 2019 TERS FUNDED RATIO KEY STATISTICS Actuarial

City of Tacoma, Washington TERS Dashboard June 2019 TERS FUNDED RATIO KEY STATISTICS Actuarial Assumptions 1/1/19 Valuation Funded Ratio 102. 5% 94. 0% 99. 9% • Expected Rate of Return 7. 00% • Wage Inflation 3. 75% • Price Inflation 2. 75% 92. 4% 93. 9% Interest Crediting Rate 6. 13% 2015 2016 2017 2018 2019 YTD Normal Cost (as a percent of pay) Funded Ratio: Market Value of Assets/AAL 2015 Fair Value of Assets ($billions) 2016 2017 2018 2019 YTD 1. 449 1. 548 1. 723 1. 626 1. 800 AAL-actuarial accrued liability ($billions) 1. 542 1. 648 1. 681 1. 759 1. 801 Funded Ratio: Market Value of Assets/AAL 94. 0% 93. 9% 102. 5% 92. 4% 99. 9% 18. 53%

City of Tacoma, Washington TERS Dashboard Yearly Total Contributions & Benefit Payouts June 2019

City of Tacoma, Washington TERS Dashboard Yearly Total Contributions & Benefit Payouts June 2019 TERS Contribution Rates Time Period Total Employer Employee 95 90 85 1980 -1996 19. 33 % 10. 44% 8. 89% 75 1997 -2000 16. 7 9. 02 7. 68 Millions 70 ($) 65 2001 -2008 14. 0 7. 56 6. 44 60 2009 16. 0 8. 64 7. 36 55 2010 18. 0 9. 72 8. 28 2011 19. 0 10. 26 8. 74 2012 - 2017 20. 0 10. 80 9. 20 2018 - present 21. 0 11. 34 9. 66 80 50 45 40 2015 2016 Contributions 2017 2018 2019 E Benefits Payouts

City of Tacoma, Washington TERS Dashboard June 2019 Retirement Payments Yearly Retirements & Contribution

City of Tacoma, Washington TERS Dashboard June 2019 Retirement Payments Yearly Retirements & Contribution Withdrawals TERS Members 150 137 130 125 6000 5000 93 82 83 67 # of 4000 Members 73 48 (June 30, 2019) 3000 5644 5783 5874 6020 2234 2303 2396 2474 2516 483 516 530 557 552 2000 1000 2015 2016 Number of retirements 2017 2018 2019 YTD Number of contribution withdrawals 6127 2964 2948 2989 3059 2015 2016 2017 2018 2019 0 Active Members Deferred Members Retired Members Total Pension/ Month Percentile $6, 152 95% 3, 821 75% 2, 523 Median 1, 415 25% 482 5%

City of Tacoma, Washington TERS Dashboard Annualized Net-of-Fee Returns ended June 30, 2019 1

City of Tacoma, Washington TERS Dashboard Annualized Net-of-Fee Returns ended June 30, 2019 1 -Year 3 -Year 5 -Year 10 -Year TERS Portfolio 7. 05% 8. 07% 6. 06% 10. 14% Custom Benchmark 7. 50% 8. 43% 5. 84% 9. 88% Actuarial Assumed Rate of Return 7. 00% June 2019 Asset Allocation as of June 30, 2019 $ Millions % Percent Global Equity $ 785. 2 43. 6 Private Equity 129. 3 7. 2 Fixed Income 616. 7 34. 3 Real Estate 155. 8 8. 7 Real Assets 102. 4 5. 7 Cash 10. 6 0. 5 Total $1, 800. 0 100. 0%

City of Tacoma, Washington TERS Dashboard June 2019 Board Member Fiduciary Duties Duty of

City of Tacoma, Washington TERS Dashboard June 2019 Board Member Fiduciary Duties Duty of loyalty – The obligation to act for the exclusive benefit of the plan participants and beneficiaries. The trustees must put the interest of all plan participants and beneficiaries above their own interests or those of any third parties. Regardless of their selection process, fiduciaries must be reminded that they do not represent a specific constituency or interest group. Duty of care – The responsibility to administer the plan efficiently and properly. The duty of care includes consideration and monitoring of the financial sustainability of the plan design and funding practices. Duty of prudence – The obligation to act prudently in exercising power or discretion over the interests that are the subject of the fiduciary relationship. The general standard is that a trustee should act in a way that a reasonable or prudent person acts in a similar situation or in the conduct of his or her own affairs.