HomeMy WebLinkAboutMINUTES - 03192013 - SD.5RECOMMENDATION(S):
DIRECT the County Administrator to draft a letter for the Chair’s signature, to the Board of the Contra Costa County
Employees' Retirement Association (CCCERA), requesting that their recent action to reduce the investment return
assumption from 7.75% to 7.25% take effect July 1, 2014, rather than being phased in over a number of years, as
recommended by the County Administrator.
FISCAL IMPACT:
Unknown at this time. CCCERA's actuary, Segal, has estimated the cost impact of a combined decrease of inflation,
investment return, and salary increases to be 6.6% for a reduction to a 7.25% return and 2.7% for a 7.50% return.
Employer rates are expected to increase.
BACKGROUND:
On February 27, 2013, the CCCERA Board heard a report from their actuary, The Segal Company (Segal), on the
economic assumptions recommended by Segal to be used in the December 31, 2012 Valuation. Segal recommended a
decreased investment return assumption from 7.75% to
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 03/19/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Candace Andersen, District II
Supervisor
Mary N. Piepho, District III Supervisor
Contact: Lisa Driscoll, County Finance
Director (925) 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: March 19, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Robert Campbell, Auditor-Controller, Marilyn Leedom, Retirement Administrator
SD. 5
To:Board of Supervisors
From:David Twa, County Administrator
Date:March 19, 2013
Contra
Costa
County
Subject:Letter to Contra Costa County Employees' Retirement Association Regarding Implementation of Assumed Rate of
Return
BACKGROUND: (CONT'D)
7.25%. The CCCERA Board voted to approve a 7.25% rate of return.
At the conclusion of the meeting, a discussion took place regarding 'phasing in' the new economic impacts. As part of
labor planning the County Administrator considered the impact of such a proposal and is recommending that the
Board of Supervisors request that the CCCERA Board implement the entire change in the first year, rather than over
several years.
The County of Contra Costa is the largest employer in the Contra Costa County Employees' Retirement Association
representing approximately 83% of the members in the plan.
CONSEQUENCE OF NEGATIVE ACTION:
The CCCERA Board may decide to spread the economic impact of the reduced investment return assumption over
several years making it more difficult for the County to identify funding for the increased pension rates.
CHILDREN'S IMPACT STATEMENT:
None.
CLERK'S ADDENDUM
Speaker: Rollie Katz, Public Employees' Union Local One.