Robert T. McCrory, Executive Vice President

Years of Experience: 35

Education

• Graduated with Highest Honors from Georgia Tech in 1970 with a Bachelor of Science in Applied Mathematics
• Received a Master's in Mathematics from Georgia Tech in 1972
• Completed the Software Development Certificate Program sponsored by the University of Washington in 1991

Professional Certification and Accreditation

• Fellow, Society of Actuaries
• Member, American Academy of Actuaries
• Fellow, Conference of Consulting Actuaries
• Enrolled Actuary under ERISA
• Member, Association for Computing Machinery
• Member, Society for Computer Simulation
• Member, Northwest Artificial Intelligence Foundation
• Associate Member, Institute of Electrical and Electronics Engineers
• Past President, Portland Chapter of the Western Pension Conference.

Special Areas of Expertise

• Actuarial valuation software design,
• Monte Carlo simulation technology,
• Risk appraisal software technology,
• Actuarial graphics design technology.

Experience and References

California Public Employees’ Retirement System

This System contains six State plans, a County Schools Pool, and more than 1,800 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 1,800 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:

• 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.
• A series of parallel valuations has been performed every year since 1992. These valuations were responsible for uncovering a significant error in the computation of liabilities for one of the State plans that had produced a material understatement of plan cost.
• 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.
• Prepared two reports simulating future experience of the Purchasing Power Protection Account mechanism at CalPERS. The question answered is the likelihood that this investment-driven system will be adequate to provide cost of living protection to CalPERS retirees.
• Conducted parallel valuations to audit the costs computed by CalPERS staff for all State and Schools plans and for the 1,800 participating public agency plans. Investigated and commented on differences arising from data and methodology.
• Working with the Board and with the Investment Office to prepare a consolidated asset and liability simulation of the System to be used to determine an efficient allocation of Fund assets.

Massachusetts Teachers Retirement Board

The Teachers Retirement System covers more than 60,000 teachers employed by hundreds of local school boards across the State of Massachusetts. Assets are more than $4.5 billion. We were retained in 1994 and have completed the following projects:

• Reviewed and commented on the actuarial valuation prepared by the State agency responsible for determining System costs.
• Developed and installed a computer system that enabled Board staff to prepare their own actuarial cost estimates, both for verifying costs computed by the State actuaries and for determining costs for improved or modified benefits.
• Worked with Board staff to determine the cost of an array of benefit improvements.
• Advised the Board on pension design and policy matters.

City of Portland, Oregon, Fire and Police Disability and Retirement Fund

The Fund contains nearly 2,000 active members and a similar number of inactive members and beneficiaries. Assets of the Fund are more than $800 million, and there are two tiers of benefits. Since being retained by the Fund in 1985, assignments have included:

• Preparing a demographic experience study to set actuarial assumptions for future valuations;
• Actuarial valuations every two years;
• Serving as consultant to a Mayor’s Task Force that reviewed all aspects of benefits paid by the Fund, recommended reforms, and submitted changes to the City Charter to the populace for a vote (approved);
• Simulation of the cash outflow from the Fund in comparison with projected tax revenues from a dedicated property tax levy;
• Provided simulation software to the Fund so that Fund staff could provide benefit projections to other City departments for budget purposes;
• Assistance to the Board in developing policy with respect to Qualified Domestic Relations Orders (QDROs), and providing software for Fund staff to compute benefits payable under such Orders;
• Calculation of IRC Section 415 limits as applicable to retiring members.

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. There are about 1,600 active members and about 1,000 inactive members and beneficiaries; assets total more than $160 million. The two Plan segments have similar, but distinct, benefit provisions. Since being retained in 1994, the following projects have been undertaken:

• Three actuarial valuations have been performed, as of July 1, 1994, 95, and 96.
• 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.
• Assisted the Board in litigation with the District concerning missed contributions.

City of Tampa Fire and Police Retirement Plan

This Plan covers more than 1,300 active police officers and fire fighters, and a similar number of retirees and beneficiaries. Assets are more than $600 million. EFI Actuaries has worked with the Plan since 1980, and during that time our work has included the following:

• Annual actuarial reports, including computation of actuarial costs and determination of the solvency of the mechanism for supporting cost of living adjustments.
• An experience study has been completed for the five-year period ending September 30, 1995. Both economic and demographic experience has been reviewed.
• Simulation software was developed and employed to study the cost of living protection provided by the Plan’s investment driven mechanism, which depends on “excess” earnings on Plan investments to provide cost of living increases to retired members.
• Studied the impact of complying with the Older Workers’ Benefit Protection Act and adding members formerly covered by the General Employees’ Pension Plan.
• Studied the cost impact of improvements in Plan benefits.

City of Pinellas Park Retirement Plan

This Plan consists of three segments, covering fire fighters, police officers, and general employees. General employees have different benefit provisions than safety (police and fire) members. More than 500 active and inactive members participate in the Plan. Assets are nearly $50 million. EFI Actuaries has worked with the Plan since 1990, and during that time our work has included the following:

• Annual actuarial reports, including computation of actuarial costs and preparation of disclosure material required by the State of Florida.
• Prepared annual employee benefit statements showing accrued pension benefits, vested benefits, and possible retirement dates for each member.
• An experience study has been completed for the five-year period ending December 31, 1995. Both economic and demographic experience has been reviewed.
• Conducted annual studies of the cost of improvements in Plan benefits.

Denver Water Board

The Employees’ Retirement Plan of the Denver Water Board covers more than 1,000 active members and about half that number of inactive members and beneficiaries. Assets are more than $100 million. We were retained in 1994 and have completed the following projects:

• Reviewed and commented on the actuarial valuation prepared by the Board’s consulting actuary. It was determined that costs were somewhat understated due to the exclusion of certain overtime pay from the pay used in the actuarial valuation.
• Developed and installed a computer system that enabled Board staff to prepare their own actuarial cost estimates, both for verifying costs computed by the consulting actuary and for determining costs for improved or modified benefits.
• Worked with Board staff to determine the cost of an array of benefit improvements.
• Advised the Board on pension design and policy matters.

State of West Virginia: Local Fire and Police Pension Systems

EFI Actuaries serves as consultant to about 30 local fire and police systems in the State of West Virginia. The plans range from two to two hundred active members, and assets are in the tens of millions of dollars for the larger systems. All plans share a common set of benefit provisions. Since being retained in 1990, EFI has undertaken the following projects:

• Conducts a triennial evaluation of the actuarial solvency of each plan, which entails an open group, stochastic simulation of future benefit payments and asset levels. The purpose is to determine a minimum contribution stream that will guarantee solvency for 15 and 40 year periods.
• Perform studies of benefit improvements or changes as requested by the various jurisdictions.

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