Overview and COVID-19 Impacts

Fund Overview

• Board responsibility to administer the

Employee
Retirement Trust
Earnings on
Retirement
Contributions • Approximately 3,400 retirees
Trust
Investments
• Over $62M in annual retiree payroll
• Over 4,400 current plan participants
• All Regular, Full-Time, Civilian Employees of
Employer
Contributions the City of El Paso and El Paso Water Utility
• Optional participation by Regular Part-Time
and Contract Employees
• Annual Contributions totaled $42.2M in FY 2019
• $15.8M in Employee contributions
• 8.95% of biweekly gross earnings
Funding • $26.4M in Employer contributions
• 14.05% of biweekly gross earnings
COVID-19 Impacts
• Retirees
• Trust maintains adequate liquidity to continue paying current retirees
• Retirees are not impacted by salary reductions implemented by the City
• Salary and staffing
• Temporary reduction in pay
• City initiated 12 week salary reduction in employee pay will result in
a decrease to pension contributions
• Approximately $104.1K decrease in contributions
• Impact will increase by approximately $8.6K each week if
extended
• Hiring freeze will result in fewer plan participants
• Fewer employees will result in lower contributions
COVID-19 Impacts
• Market Impacts
• Net assets decreased by $58M, or 7.2%, since the
beginning of FY 2020*
GROWTH OF ASSETS

$1,000 $819.9 $806.6

$776.5 $748.8
$900 $723.1
$800
M
$700
I
L $600
L $500
I $400
O $300
N
$200
$100
$0
2016 2017 2018 2019 2020

* 2020 Value based on Treasurer’s Report through March 31, 2020 and includes
Unrealized Loss in Investments
** Russell 3000 Index fiscal YTD return -12.19%
COVID-19 Impacts
• Market Impacts (cont.)
• Loss in investments has led to a decrease in the
funding ratio from 79.3% to an estimated 77.4%
FUNDING RATIO

100%
90% 77.1% 79.2% 80.3% 79.3% 77.4%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2016 2017 2018 2019 2020 *

* Estimated value fiscal YTD

Future Considerations
• Some city initiatives may result in a change in the
actuarial position of the fund
• City initiatives related to payroll costs may result in a
decrease in contributions resulting in less assets
available for investment
• Some calculations can be complex based upon multiple
assumptions used in the actuarial valuation process
• Actuarial cost studies can take 2-3 weeks to complete
• The Board will continue to work with the City regarding
any future challenges that may arise
• Trust will perform actuarial valuation after this fiscal year