1. Regional Transportation District Salaried Employees' Defined Benefit Pension Plan Presented by: Terry Bright January 13, 2015  Foster City, CA  Denver, CO  Pasadena, CA  Portland, OR  Seattle, WA Fund Status as of January 1, 2014

2. i  January 1, 2014 Valuation Highlights  Long-Term Funding  GASB 67/68  Next Steps Table of Contents

3. 1  Total participant count decreased by 12 (from 728 to 716)  Plan closed to new participants on January 1, 2008  Actuarial Accrued Liability increased by $14.9M (from $118.7M to $133.6M)  Actuarial Value of Assets increased by $9.5M (from $104.2M to $113.7M)  Unfunded Actuarial Accrued Liability increased by $5.4 (from $14.5M to $19.9M)  Funded ratio based on the Actuarial Value of Assets decreased from 87.8% to 85.1%  Funded ratio based on the Market Value of Assets increased from 88.7% to 93.5%  Recommended contribution increased by $1.3M from $4.4M to $5.7M January 1, 2014 Valuation Highlights

4. 2  Effective with the 2013 Fiscal Year, the Board-approved funding policy was changed from a percent of payroll (9% cap) to the recommended contribution amount up to a $3.1M annual cap  Current funding policy is more prudent given the Plan’s decreasing active population and resulting reduction in future expected payroll  This policy was established with the goal of achieving 100% funding by the end of 20 years (in 2033)  If all actuarial assumptions are met each year, including a net investment return of 7.5% per year, and annual contributions equal the recommended contribution up to a $3.1M annual cap:  The recommended contribution is projected to decrease from $5.7M in the 2015 Fiscal Year  The recommended contribution is expected to exceed the $3.1M cap through the 2022 Fiscal Year and fall below the cap thereafter  The Plan is projected to reach 100% funding in 2031 – no change from last year’s Board presentation Long-Term Funding

5. 3  Per the investment consultant, the estimated 2014 return on investments through November 30 th is 7.6% (net of fees)  If the net return in 2014 is 7%, the Plan is projected to reach 100% funding in 2031 (no change), and RTD can expect to pay the $3.1M contribution cap through the 2023 Fiscal Year (1 year later), if all other assumptions are met  Due to the Plan’s size and nature, future investment returns have a significant impact on projected liabilities – we will keep the Board apprised of the impact of the Plan’s investment performance on future costs Long-Term Funding (Continued)

6. 4  GASB 67 (financial accounting for the Plan) is effective for the Plan’s Fiscal Year ending December 31, 2014  We will roll forward the January 1, 2014 valuation results to December 31, 2014  Under GASB standards, the long-term investment return assumption must be sufficient to pay projected benefits and the Plan’s assets must be invested using a strategy to achieve this investment return Based on the Plan’s projections and current funding policy, the Plan’s assumed net investment return of 7.5% satisfies the new GASB standards  GASB 68 (financial accounting for the Employer) is effective for RTD’s Fiscal Year ending December 31, 2015  We will provide the applicable disclosure information for the Fiscal Year ending December 31, 2014 (GASB 67 for the Plan and GASB 27 for the Employer) in the first quarter of 2015 GASB 67/68

7. 5 Next Steps  We will continue to monitor and review the following items going forward:  Funding Policy (recommended contribution amount)  Actuarial assumptions and methods  Policies adopted by other public pension plan systems  All such items will be reviewed by Rael & Letson and discussed with the Board annually