Robert T. McCrory, FSA, Executive Vice President

Years of Experience:  37

Education

·         Graduated with Highest Honors from Georgia Tech with a Bachelor of Science in Applied Mathematics

·         Received a Master's in Mathematics from Georgia Tech

·         Completed the Software Development Certificate Program sponsored by the University of Washington

Professional Certification and Accreditation

·         Fellow, Society of Actuaries

·         Fellow, Conference of Actuaries

·         Member, American Academy of Actuaries

·         Enrolled Actuary under ERISA

·         Member, Society for Computer Simulation

Special Areas of Expertise

·         Stochastic modeling of public sector retirement programs

·         Asset/liability modeling

·         Actuarial valuation software design and implementation

·         Risk appraisal software technology

Relevant Experience

·         California Public Employees’ Retirement System

This System contains six State plans, a County Schools Pool, and more than 2,000 public agency plans administered by a central agency.  There are more than 1 million active members and a comparable number of inactive members and beneficiaries.  There are roughly 2,000 employers and a larger number of plans, some with multiple benefit tiers.  EFI first began working with the System in 1992.  Since that time, projects completed have included the following:

o        Based on an innovative use of computer simulation, a study of economic assumptions was completed.  The Board adopted the recommendations of this Study in setting actuarial assumptions to use in computing liabilities and costs System-wide.

o        Reviewed the demographic experience study prepared by staff actuaries and suggested corrections to withdrawal rates.  The rates as computed by staff had counted some terminating members twice. The corrected rates were subsequently adopted by the Board.

o        Prepared two reports simulating future experience of the Purchasing Power Protection Account mechanism at CalPERS, addressing the likelihood that this investment-driven system will be adequate to provide cost of living protection to CalPERS retirees.

o        Working with the Board and Investment Office, EFI has prepared several consolidated asset and liability simulations of the System to be used to determine an efficient allocation of Fund assets.  These simulation models are a central part of the biennial asset/liability workshops in which the CalPERS Board and staff set asset allocation policy.

·         San Diego Transit District

This Plan consists of two segments, one covering represented drivers and mechanics and the other covering clerical and salaried employees.  There are about 1,000 active members and about 850 inactive members and beneficiaries; assets total about $150 million.  Since being retained in 2000, the following projects have been undertaken:

o        Annual actuarial valuations and periodic have been performed since 2000.

o        An experience study for the period from 1997 through 2000 was prepared.  Both economic and demographic experience was reviewed.  This was the first actuarial experience study prepared for this Plan, and it resulted in significant changes in all demographic and economic assumptions.

o        Prepared an analysis of the impact of issuing a pension obligation bond, including a stochastic analysis of the likelihood of District contributions being increased as a result of the bond.

o        Meetings with staff, retirement plan Board, and the District Board to discuss retirement plan liabilities and costs.

·         Alameda-Contra Costa County Transit District

This Plan consists of two segments, one covering represented drivers and mechanics and the other covering clerical and salaried employees.  Since being retained in 1994, the following projects have been undertaken:

o        Annual actuarial valuations have been performed since July 1, 1994.

o        An experience study for the five-year period ending June 30, 1994 was prepared.  Both economic and demographic experience was reviewed.

As a result of a sharp increase in cost resulting from adverse experience, Plan improvements, and missed District contributions, an innovative cost phase-in approach was developed to preserve the financial integrity of the District while protecting the benefit security of the members.