24 CAR § 20-1104. Local plans with over $5,000,000 book value

(a) Local plans with a book value of assets equal to or greater than five million dollars ($5,000,000) will use the method in this section to determine the actuarial value of assets. (b) This method is a five-year smoothing method. (c) The actuarial value of assets will be determined using the following steps: (1) The total market return is calculated (including realized and unrealized appreciation); (2) The assumed actuarial rate of return is credited to the previous year’s actuarial value of assets; (3)(A) The difference between subdivisions (c)(1) and (2) is the portion that will be added to the assets over five (5) years. (B) Take subdivision (c)(1) minus subdivision (c)(2) and divide by five (5); (4) Add the amount in subdivision (c)(3) of this section to the value of assets from subdivision (c)(2); and (5) Add the subdivision (c)(3) amount from the previous four (4) years to the amount from subdivision (c)(4) of this section.