Page 64 - CPAAC_Fall2015

Contribution Policy Changes 11/13/2015
Old Method 2

 Designed to smooth contribution rates
 Used AVA to determine contribution so two

different funded status/ratios (AVA & MVA)
 If assumptions met then:

 Contributions never come down and
 UAL never paid off

9/17/15 3

Contribution Policy Changes
New Method

 Designed to:

 First pay off UAL and
 Second smooth rates

 Uses MVA only so only one funded status/ratio
 If assumptions met then:

 Contributions go up in the short run but then come
down

 UAL will be paid off

9/17/15 4