HomeMy WebLinkAboutMINUTES - 04222014 - C.49RECOMMENDATION(S):
ADOPT Resolution No. 2014/114 as approved by the Retirement Board, which establishes the Central Contra Costa
Sanitary District retirement plan contribution rates effective July 1, 2014 through June 30, 2015.
FISCAL IMPACT:
Reduction in employer pension rates for FY 2014/15 based upon $5 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 2014-15 rates were originally based upon the actuary's December 31, 2012
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.
On December 26, 2013, Central Contra Costa Sanitary District (the District) made a $5 million prepayment towards
the District’s Unfunded Actuarial Accrued Liability (UAAL). Along with a reduction in the UAAL, the prepayment
reduces the District’s required UAAL contribution rate. At its February 12, 2014 meeting, the Retirement Board
reviewed and accepted the actuary’s calculation of the resulting reduction in the District’s employer contribution
rates, which will become effective on July 1, 2014. A copy of the actuary’s letter is available from CCCERA upon
request.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 04/22/2014 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: April 22, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Kurt Schneider, Deputy Chief Executive Officer
C. 49
To:Board of Supervisors
From:David Twa, County Administrator
Date:April 22, 2014
Contra
Costa
County
Subject:EMPLOYEE RETIREMENT PLAN CONTRIBUTION RATES FOR FISCAL YEAR 2014/2015 FOR CENTRAL
CONTRA COSTA SANITARY DISTRICT
BACKGROUND: (CONT'D)
Revised rates are effective for the 2014-15 fiscal year. Revised rates (see Exhibit A) include the following: 1) 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; and, 2) 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.
The Board of Supervisors adopts the retirement rates for Central Contra Costa Sanitary District, under
Government Code section 31454, subdivision (a). Government Code section 31454, subdivision (b), authorizes an
independent district board to adopt rates for the district, but only if the Board of Supervisors has passed a
resolution activating subdivision (b) in that county. Our Board has not passed a resolution activating subdivision
(b), and thus retains responsibility for adopting rates for all CCCERA employers.
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 Central Contra Costa
Sanitary District.
CHILDREN'S IMPACT STATEMENT:
None.
ATTACHMENTS
Resolution No. 2014/114
Central Contra Costa Sanitary District-Exhibit A
Exhibit A
CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION
GENERAL TIER 1 and GENERAL PEPRA TIER 4
EMPLOYER CONTRIBUTION RATES
EFFECTIVE FOR JULY 1, 2014 THROUGH JUNE 30, 2015
Cost Group #3
Central Contra Costa
Sanitary District
BASIC Contribution Rates
Legacy Members with Membership Date before January 1, 2011* 51.00%
Tier 1 Enhanced (2% @ 55)
Legacy Members with Membership Date on or after January 1, 2011* 49.42%
Tier 1 Enhanced (2% @ 55)
PEPRA Members with 3%/4% Maximum COLA** 42.11%
Tier 4 (2.5% @ 67)
COLA Contribution Rates
Legacy Members with Membership Date before January 1, 2011* 22.89%
Tier 1 Enhanced (2% @ 55)
Legacy Members with Membership Date on or after January 1, 2011* 22.16%
Tier 1 Enhanced (2% @ 55)
PEPRA Members with 3%/4% Maximum COLA** 20.38%
Tier 4 (2.5% @ 67)
Non-Refundability Factor 0.9486
* For members in Social Security, the rate should only be applied to monthly compensation in excess of $116.67.
* The rate should only be applied to compensation up to the annual IRC 401(a)(17) compensation limit.
** The rate should be applied to all compensation (whether or not in Social Security) up to the applicable
** annual GC 7522.10(c) compensation limit.
Central San 2014-15.xlsxExhibitA 2/19/2014