HomeMy WebLinkAboutMINUTES - 08062013 - SD.5RECOMMENDATION(S):
ADOPT Resolution No. 2013/334 as approved by the Retirement Board, which establishes the First 5 Children and
Families Commission retirement plan contribution rates effective July 1, 2013 through June 30, 2014.
FISCAL IMPACT:
Reduction in employer pension rates for FY 2013/14 based upon $2 million UAAL prepayment.
BACKGROUND:
Each year, the Retirement Board establishes contribution rates for employee retirement plans based on an annual
actuarial valuation study. The FY 2013-14 rates were originally based upon the actuary's December 31, 2011
Valuation Report, a copy of which can be found on the Contra Costa County Employees' Retirement Association's
(CCCERA) website at www.cccera.org under the Publications link.
At its March 27, 2013 meeting, the Retirement Board approved a methodology to be used to adjust the employer
contribution rate if First 5 Children and Families Commission (First 5) were to make a prepayment on its unfunded
actuarial accrued liability (UAAL).
On June 25, 2013 CCCERA received First 5's $2 million UAAL prepayment. The UAAL prepayment had a positive
effect on employer rates. Revised rates are effective immediately for the 2013-14 fiscal year. Revised rates (see
Exhibit A) include the following:
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 08/06/2013 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: August 6, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
SD. 5
To:Board of Supervisors
From:David Twa, County Administrator
Date:August 6, 2013
Contra
Costa
County
Subject:EMPLOYEE RETIREMENT PLAN CONTRIBUTION RATES FOR FISCAL YEAR 2013/2014 FOR FIRST 5
CHILDREN AND FAMILIES COMMISSION
BACKGROUND: (CONT'D)
The rates are before any employer subvention as may be allowed under Government Code §7522.3(f). The rates
quoted in Exhibit A are the employer required rates without taking into consideration any employer subvention of
employee contributions.
The rates are before any increase in employee rate as may be required by Government Code §7522.3(c) or (e).
If any employee's rate needs to be increased to comply with these sections, both employee and employer rates
would need to be adjusted accordingly.
CONSEQUENCE OF NEGATIVE ACTION:
Rates will not be properly applied which will cause an imbalance between what is owed to the Contra Costa
County Employees' Retirement Association and what is put aside for those payments by First 5 Children and
Families Commission.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
Resolution No. 2013/334
Exhibit A
ExhibitA
CONTRACOSTACOUNTYEMPLOYEES'RETIREMENTASSOCIATION
EMPLOYERCONTRIBUTIONRATESEFFECTIVEFORJULY1,2013THROUGHJUNE30,2014
ForMemberswithMembershipDatebeforeJanuary1,2011
GENERALTIERSENHANCED CostGroup#1
Tier1BASICEnhanced2%@55 First5
First $350 monthly & in Social Security 13.35%
Excess of $350 monthly & in Social Security 20.02%
Tier1COLEnhanced2%@55
First $350 monthly 3.44%
Excess of $350 monthly 5.16%
NonRefundabilityFactor 0.983 8
ForMemberswithMembershipDateonorafterJanuary1,2011
GENERALTIERSENHANCED CostGroup#1
Tier1BASICEnhanced2%@55 First5
First $350 monthly & in Social Security 13.41%
Excess of $350 monthly & in Social Security 20.11%
Tier1COLEnhanced2%@55
First $350 monthly 3.65%
Excess of $350 monthly 5.46%
NonRefundabilityFactor 0.983 8
ForPEPRAMembers
GENERALPEPRATIERS CostGroup#1
PEPRATier4(3%COLA)BASIC First5
Employer 15.33%
PEPRATier4(3%COLA)COL
Employer 4.47%
NonRefundabilityFactor 0.983 8
ExhibitA_First5 7/26/2013