HomeMy WebLinkAboutMINUTES - 09172002 - SD.6 •TQ: BOARD OF SUPERVISOR5. Contra'"
FROM: John Sweeten, County Administrator uIosta
DATE: September 17, 2002 , : County
SUBJECT: Actuarial Statement
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
Acting in its capacities as the governing body of Contra Costa County, Contra Costa County
ConsolidatedFire Protection District and East Diablo Fire Protection District;
RECOMMENDATION: Acknowledge receipt of the statement from Buck 'Consultants that
identifies the actuarial impact upon future annual costs of those retirement enhancements
described in :,the January 17, 2002 tentative agreement between the County/Districts and
participating labor organizations.
BACKGROUND: California Government :Code Sections 7507 and 31516 require that an
enrolled actuary provide a statement of the actuarial impact upon future annual coasts before
the Board of Supervisors may authorize increases in retirement benefits and that said
statement snail be made public at a public meeting at least two weeks,prior to the adoption of
any increases in benefits.
CONTINUED ON ATTACHMENT: 2�-:IES SIGNATURE:
RECOMMENDATION OF COUNTYADMINISTRATORM----?ECOMMF-iTATION OF BOARD COMMITTEE:
APPROVE OTHER
ACKNOWLEDGED receipt of the statement from Buck Cc nm tants that identifies the
actuarial impact upon future annual costs of those retirement enhancements; and
DIRECTED the County Administrator and Buck Consultants to return to the Board of
Supervisors with an updated Actuarial Statement.
SIGNATURE(SY
ACTION OF BOARD ON St. 17, 2002 APPROVE AS RECOMMENDED X_..... OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
UNANIMOUS(ABSENT-) AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
ANES'*I, IIS IVB' V NOES: SHOWN,
ABSENT: ABSTAIN:
Supervisor Gerber recused herself ATTESTED September 17, 2042
CONTACT: JOHN SWEETEN,CLERK OF THE
BOARD OF SUPERVISORS AND
COUNTY ADMINISTRATOR
CG:'
BY DEPUTY-
r
4 BUCK
W� LTANT
100 Cali orA Street Suite 1300
San Francisco, California 94111'
September 5,2002
Contra Costa County Board of Supervisors
651 Pine Street,3'd Floor
Martinez,CA 94553
Re: Actuarial Statement of Additional Costs for Proposed Benefit Enhancements
Dear Members of the Board of Supervisors:
In accordance:with Government Code Sections 7507 and 31516,enclosed is our statement of the actuarial,
impact upon future annual costs of the following benefits:
1. 3%at age 50 benefits for safety members
2. 2%at age 55 benefits for general members
The additional liabilities and normal costs were broken out between County and the other Districts and we
showed the additional normal cost contribution rates resulting from the proposed benefit enhancements as
a percent of total County and District retirement'compensable payrolls.
Please be assure that the undersigned are "enrolled actuaries" as that term is defined in the Government
Codes cited above:
k
Sincerely,
o,C 8
Krystyna H. UT still
Principal and Consulting Actuary
Mike Moehle
Principal and Consulting Actuary
Enclosure
a:�wpt�es7szop2igos_aoSco.•er,�e
Buck Consultants, Inc.
415 392-06'f6 Fax 415 1 392-3991
X
Contra Costa County
Potential Benefit Improvements for General and Safety Members
Buck Consultants calculated the costs to implement the 3% @ 50 benefit for Safety members for all
service and the 2% @ 55 benefit (Government Code "Section 31676.16) benefit for General Tier i
members for all service and General Tier 3 members for Tier 3 service only. The costs'iwere based on
active data as of December 31, 2+000 provided to us by William M. Mercer, Inc. and the actuarial
assumptions used in the December 31, 2000 CCCERA Actuarial Report prepared by'William M.;Mercer.
In addition we used the revised probabilities of retirement that were used by William M. Mercer for
valuing the 3% @ 50 safety benefits.
A summary of the results is as follows(dollar amounts in millions)'
3% @50 3% @50
Additional Additional Unfunded
Number of December 31, Normal Actuarial
Members 2000 Pa "oll Cost% Liability
Safety-County 1,099 $68.2 6,75% $69.1
Safety -District 542 $45.3' 6.66% $67.8
2% @ 55 2% @ 55
Additional Additional unfunded
Number of December 31, Normal Actuarial
Members 2000 Payroll Cast% Liability
General Tier I'..County 1,141 $68.3 1,57% $15.6'
General Tier 3 -County 2,437; $139.8 2.25% $30.2"
General flier Ir-District 540 $31.8 1.51% $5.7
General Tier 3'-District 6 $0.3 1.47% $0.1