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HomeMy WebLinkAboutMINUTES - 02032015 - C.100RECOMMENDATION(S): ADOPT Resolution No. 2015/50 as approved by the Retirement Board, which establishes retirement plan contribution rates for the period January 1, 2015 through June 30, 2016 for the Contra Costa County Fire Protection District and employer contribution rates to be effective for the period July 1, 2015 through June 30, 2016 for the Central Contra Costa Sanitary District. FISCAL IMPACT: See 'Background' below. BACKGROUND: The employer contribution rates for the Contra Costa County Fire Protection District for the current and next fiscal year are based on December 31, 2012 and December 31, 2013 Actuarial Valuation reports. Those reports only included employer contribution rates for the District for members in PEPRA Tiers limited to a 3% annual post-retirement cost-of-living adjustment (COLA). Since those reports were published, a new MOU was approved by the Board of Supervisors with a 2% COLA provision for those who become members on or after January 1, 2015. Additionally, on December 30, 2014, the Central Contra Costa Sanitary District made a $5 million prepayment towards their December 31, 2013 Unfunded Actuarial Accrued Liability (UAAL). The prepayment will be amortized over 18 years as a level percent of pay and will be used to reduce Central Contra Costa Sanitary District's UAAL contribution rate. The rate reduction for the District will be effective on July 1, 2015, which is the date that the contribution rates from the December 31, 2013 valuation become effective. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 02/03/2015 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: February 3, 2015 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: Robert Campbell, Auditor-Controller, Harjit S. Nahal, Assistant Auditor-Controller, Jeff Carmen, Fire Chief, Kurt Schneider, Deputy Chief Executive Officer C.100 To:Board of Supervisors From:David Twa, County Administrator Date:February 3, 2015 Contra Costa County Subject:EMPLOYEE RETIREMENT PLAN CONTRIBUTION RATES FOR 1/1/2015 THROUGH 6/30/2015 AND FY 2015/2016 FOR CCC FIRE PROTECTION & CENTRAL CC SANITARY DISTRICTS BACKGROUND: (CONT'D) > At its January 28, 2015 meeting the Retirement Board reviewed and accepted the actuary’s calculations of the employer contribution requirements for the Contra Costa County Fire Protection District and Central Contra Costa Sanitary District. Copies of the Board memorandum is available from CCCERA upon request. Attached are the contribution rates effective January 1, 2015 for the Contra Costa County Fire Protection District and July 1, 2015 for the Central Contra Costa Sanitary District submitted for adoption by the County Board of Supervisors by the Contra Costa County Employees’ Retirement Association. Please note the following: The rates are the employer required rates without taking into consideration any employer subvention of employee contributions. The rates are before any increase in employee rate to pay a portion of the employer contribution. If an employee’s rate needs to be increased to pay a portion of the employer contribution, both employee and employer rates would need to be adjusted accordingly. CONSEQUENCE OF NEGATIVE ACTION: Rates will not reflect those adopted by the Contra Costa County Employees Retirement Board. ATTACHMENTS Resolution No. 2015/50 Exhibit A and B Exhibit A CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION GENERAL TIER 1 and GENERAL PEPRA TIER 4 EMPLOYER CONTRIBUTION RATES EFFECTIVE FOR JULY 1, 2015 THROUGH JUNE 30, 2016 Cost Group #3 Central Contra Costa Sanitary District BASIC Contribution Rates Legacy Members*41.11% (Tier 1) PEPRA Members with 3% Maximum COLA** 37.05% (Tier 4) COLA Contribution Rates Legacy Members*18.20% (Tier 1) PEPRA Members with 3% Maximum COLA** 17.42% (Tier 4) Refundability Factors Legacy Members 0.9581 (Tier 1) PEPRA Members with 3% Maximum COLA 0.9650 (Tier 4) * 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(d) compensation limit. Page 1 1/28/2015 Exhibit B Cost Group #8 - PEPRA Tier E Contra Costa County Fire Protection District Employer Contribution Rates Expressed as a Percentage of Monthly Payroll* Effective 1/1/15 - 6/30/15 Basic COLA Total Normal Cost 11.54% 3.05% 14.59% UAAL 26.63%29.09%55.72% Total Contributions 38.17% 32.14% 70.31% Effective 7/1/15 - 6/30/16 Basic COLA Total Normal Cost 12.45% 3.28% 15.73% UAAL 21.90%27.67%49.57% Total Contributions 34.35% 30.95% 65.30% Member Contribution Rates Expressed as a Percentage of Monthly Payroll* Effective 1/1/15 - 6/30/15 Basic COLA Total 11.66% 3.09% 14.75% Effective 7/1/15 - 6/30/16 12.45% 3.28% 15.73% *NOTE: The rate should be applied to all compensation (whether or not in Social Security) up to the applicable annual Gov. Code 7522.10(d) compensation limit. Page 1