HomeMy WebLinkAboutMINUTES - 11062012 - SD.4RECOMMENDATION(S):
ACCEPT that this Board Order serves as written acknowledgment by the County Administrator (chief executive
officer) that he understands the current and future cost of Retirement benefit changes for the Contra Costa County
Defenders' Association, as determined by the County's actuary in the October 17, 2012 Actuarial Report (Attached).
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/06/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V 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: November 6, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
SD. 4
To:Board of Supervisors
From:David Twa, County Administrator
Date:November 6, 2012
Contra
Costa
County
Subject:Government Code 7507 - Chief Executive Acknowledgement of Future Costs of Benefits - CCC Defenders
Association
FISCAL IMPACT:
As shown in the valuation, the result of the retirement changes described herein, if implemented, will save 1.2% of
annual pensionable pay with the first hire in year one. Future valuation results will change with demographic and
cost updates. These projections do accurately measure the direction of the plan change costs. Over time, as more
employees are hired into the new PEPRA tier at a 2% COLA, the savings will become more significant. It should
be noted that the figures presented in this report represent the savings associated only with the negotiation of a 2%
COLA. The actual savings from both the new State law and the negotiated change beginning January 1 is the
savings between the new PEPRA tier with a 2% COLA and Tier III with a 3% COLA. When considering the
difference between these tiers the total savings is closer to 5.0%.
BACKGROUND:
At its meeting on October 22, the Board of Supervisors accepted an actuarial valuation of future annual costs of
negotiated and proposed changes to Other Post Employment Benefits, as provided by Buck Consultants in a letter
dated October 17, 2012. The Board of Supervisors was informed that Government Code, Section 7507 requires
with regard to local legislative boards, that the future costs of changes in retirement benefits or other post
employment benefits as determined by the actuary, shall be made public at a public meeting at least two weeks
prior to the adoption of any changes in public retirement plan benefits or other post employment benefits. The
October 17, 2012 report from Buck Consultants fulfilled that requirement.
Government Code, Section 7507 also requires that if the future costs (or savings) of the changes exceed one-half
of 1 percent of the future annual costs of the existing benefits for the body, an actuary shall be present to provide
information as needed at the public meeting at which the adoption of a benefit change shall be considered. An
actuary will be present at the meeting of November 6, 2012.
And finally, Section 7507 requires that upon the adoption of any benefit change to which the section applies, the
person with responsibilities of a chief executive officer in an entity providing the benefit, however that person is
denominated, shall acknowledge in writing that he or she understands the current and future cost of the benefit as
determined by the actuary.
As the County Administrator (chief executive officer) and by approving this Board Order, I acknowledge in
writing that I understand the current and future cost of the benefit changes presented to you today, as determined
by the actuary and contained in the October 17, 2012 letter from Buck Consultants (County's actuary).
CONSEQUENCE OF NEGATIVE ACTION:
Delayed implementation of the COLA reduction, resulting in loss of savings.
ATTACHMENTS
Buck Consultants