HomeMy WebLinkAboutMINUTES - 11122013 - SD.3RECOMMENDATION(S):
ACCEPT actuarial valuation of future annual costs of proposed changes to Retirement Benefits, changing the COLA
for unrepresented employees, elected officials, and those non-sworn employees represented by the Contra Costa
County Deputy Sheriffs' Association (DSA) who become members of the CCCERA on or after January 1, 2014, as
provided by Buck Consultants in letters dated November 5, 2013 and November 6, 2013 respectively.
FISCAL IMPACT:
As shown in the valuations, the result of the retirement changes described herein for unrepresented employees and
elected officials will save 1.3% of annual pensionable pay with the first hire in year one and 1.6% for non-sworn
DSA employees. 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%.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 11/12/2013 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: November 12, 2013
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
SD. 3
To:Board of Supervisors
From:David Twa, County Administrator
Date:November 12, 2013
Contra
Costa
County
Subject:Government Code 7507 Compliance - Retirement Benefits - Unrepresented Employees, Elected Officials, and
Non-Sworn DSA Employees
BACKGROUND:
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 code also requires that an actuary be present to provide information as needed at
the public meeting at which the adoption of a benefit change shall be considered.
Assembly Bill 340 (AB340), known as the California Public Employees' Pension Reform Act of 2013 (PEPRA),
took effect January 1, 2013. Generally, for those unrepresented employees, elected officials, and non-sworn DSA
employees who become members of the Contra Costa County Employees’ Retirement Association (CCCERA) on
or after January 1, 2013, PEPRA requires a pension formula of 2% at age 62, 36 month final compensation
averaging, and a maximum salary amount used for pension calculation of $110,100 (plus CPI). PEPRA does not
address Cost of Living Adjustments (COLAs).
On December 3, 2013, the Board of Supervisors may consider and may take formal action with respect to a
proposed change in the COLA to the pension benefit. Contra Costa County has negotiated a 2.00% COLA to the
pension benefit for unrepresented employees, elected officials, and non-sworn DSA employees who become
members of CCCERA on or after January 1, 2014.
Two 7507 reports from Buck Consultants dated November 5, 2013 and November 6, 2013 are attached. The
reports explain that this change affects only future employees; it will have no effect on the unfunded actuarial
accrued liabilities of CCCERA. The savings shown are combined employee and employer normal costs. The
savings are equal to the excess of the normal cost for the PEPRA structure and a 3.00% COLA to the pension
benefit over the normal cost of a PEPRA structure and a 2.00% COLA.
On December 3, 2013, the Human Resources Director will return to the Board to confirm implementation of these
changes. An actuary will be present to answer any questions that the Board or public poses regarding the savings
associated with the pension change.
For FY 2013-14, the majority of the unrepresented employees, elected officials, and non-sworn DSA employees
hired after January 1, 2014 will be under the following pension rate structure:
CONSEQUENCE OF NEGATIVE ACTION:
Delayed implementation of the COLA reduction, resulting in loss of savings.
CHILDREN'S IMPACT STATEMENT:
None.
None.
ATTACHMENTS
7507 Report for Unrepresented Employees and Elected Officials dated November 5, 2013
7507 Report for non-sworn DSA dated November 6, 2013