HomeMy WebLinkAboutMINUTES - 12012009 - SD.4RECOMMENDATION(S):
ADOPT the attached Resolution No. 2009/534 approved by the Retirement Board, which
establishes the retirement plan contribution rates for employers and employees effective
July 1, 2010 through June 30, 2011.
FISCAL IMPACT:
Significant fiscal impact - see 'Background' below.
BACKGROUND:
Each year, the Retirement Board establishes contribution rates for employee retirement
plans based on an annual actuarial valuation study. On July 8, 2009, the Retirement Board
adopted the attached resolution establishing employee and employer rates for Tier I, Tier II,
Tier III and Safety retirement plans for the 2010-11 fiscal year. These rates will be included
in the salary forecast and planning for the 2010-11 budget.
It should be noted that these rates include the first year impact of recent earning losses due
to the economy. It is anticipated that rates will be significantly higher for FY 2011-12 and
could continue for at least the next five years.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 12/01/2009 APPROVED AS RECOMMENDED OTHER
Clerks Notes:Speaker: Rollie Katz, Public Employees' Union, Local One
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Gayle B. Uilkema, District II
Supervisor
Susan A. Bonilla, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Mary N. Piepho, District III Supervisor
Contact: Lisa Driscoll, County Finance
Director 335-1023
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes
of the Board of Supervisors on the date shown.
ATTESTED: December 1, 2009
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Lisa Driscoll, County Finance Director, Robert Campbell, Chief Accountant, Laura Strobel, Principle Management Analyst, Ted Cweik, Human
Resources Director, Steve Ybarra, County Auditor-Controller
SD.4
To:Board of Supervisors
From:David Twa, County Administrator
Date:December 1, 2009
Contra
Costa
County
Subject:EMPLOYEE RETIREMENT PLAN CONTRIBUTION RATES FOR FISCAL YEAR 2010-2011
Retirement expense for the current year is projected to be $19.5 million less than last year.
Departments Countywide were able to reduce projected expenditures for FY 2009-10 by a
like amount without reducing programs or services. That was good news. The bad news is
that market losses (26.5%) in combination with unachieved earning assumptions (7.8%) in
calendar year 2008 exceeded 34% and will necessitate increased contributions to the Contra
Costa County Employees Retirement Association (CCCERA) for the next eighteen years.
Projected contributions,
BACKGROUND: (CONT'D)
assuming at least 7.8% earnings annually for the next five to seven years are depicted in
the chart below:
Over the next six years, retirement contributions to the Contra Costa County Employees’
Retirement Association are expected to increase by 77%. It is important enough to repeat
that this projection is net of a 7.8% earning assumption.
ATTACHMENTS
Resolution No. 2009/534
Attachment to Resolution No. 2009-534