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Home My WebLink AboutMINUTES - 06181985 - 2.5 TO: BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator Contra Costa DATE: June 13, 1985 County SUBJECT: Retirement Contribution Rates and Interest Assumption ��ll SPECIFIC REQUEST(S) OR RECOMMENDATION(S) do BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. Acknowledge receipt of this report. 2. Adopt attached resolution specifying retirement contribution rates for Employers and Employees, and interest rate to be credited to retirement accounts, effective July 1, 1985. BACKGROUND On June 4, 1985, the Board referred to the County Administrator a memorandum report from the Retirement Administrator advising of actions of the Retirement Board on retirement contribution rates and interest assumption for the 1985-1986 fiscal year. The recommendations of the Retirement Board reflect a transfer of $6.5 million from Undistributed earnings ("Surplus" ) against contributions otherwise required of Employers and Employees for the cost-of-living feature of the system. Additionally, the Retirement Board agreed to an allocation from Undistributed Earnings of $1,048,452 to provide a one year only cost-of-living supplemental increase for retirees pursuant to Government Code Section 31681.8; this section authorizes an increase for retirees covered of $2.50 per month per year of county service. In summary, a transfer of approximately $7.5 million was authorized as shown below: Employers $3,750,000 Employees 2,750,000 Retirees 1,048,452 TOTAL $7,538,000 The action of the Retirement Board will again assist the County with its retirement system financing requirements but to a substantially lesser extent than for the 1984-1985 fiscal year; this reflects, in considerable measure, that earnings available for distribution this year were only approximately $11 million as contrasted to nearly $20 million for the 1984-1985 fiscal year. The decrease largely reflects the previous distribution together with a realization of losses on the bond po O. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES) ACTION OF BOARD ON June 18, 1985 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X UNANIMOUS (ABSENT ) 1 HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. County Administrator CC: Retirement Administrator ATTESTED aA� Auditor-Controller j PHIL BATCHELOR, CLERK OF THE BOARD OF Director of Personnel ' SUPERVISORS AND COUNTY ADMINISTRATOR County Counsel M382/7.83 BY , DEPUTY _2- For the 1984-1985 fiscal year, the transfer on behalf of Employers, Employees and Retires was as follows. Employers $ 8,005,000 a Employees 3,166,000 Retirees 486,794 Death Benefit 1,039,000 TOTAL $12,696,794 The transfer on behalf of Employers for the 1985-1986 fiscal year is proportionately less favorable than in the past, and the possibility of' an additional transfer on behalf of Employers is still under review. This matter was considered informally by the Retirement Board at its meeting on June 11, 1985, and the item continued for consideration at its July meeting. If a further transfer is authorized, an adjustment in the rate paid by Employers can readily be made. Pending this determination, it is advisable to implement the rates as presently recommended by the Retirement Board to update system funding, and to maximize assistance to both employees and employers. Prior to acting, the Retirement Board did obtain, and consider, a new actuarial survey on which its actions were based. The recommended interest rate, 8.5`x, is the same as that utilized for the 1984-1985 fiscal year. i THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on June 18. 1985 , by the following vote: ' AYES: Supervisors Powers, Schroder, McPeak, Torlakson, Fanden NOES: None ABSENT: None -- ABSTAIN: None RESOLUTION NO. 85/.333, SUBJECT: Approving Contribution Rates and Interest to be Credited for Contra Costa County Employees'_ Retirement Association Pursuant to Government Code Section 31454 and on recommendation of the Board of the Contra Costa County Employees' Retirement Association, BE IT RESOLVED that the following contribution and interest rates are approved to be effective as indicated: I. Retirement Contributions A. County and District Rates: 1. General Members - Tier I covered by Social Security Effective 7-1-85 on the first $350 monthly compensation: 5.59% on compensation in excess of $350 monthly: 8.38% 2. General Members - Tier I not covered by Social Security Effective 7-1-85 on Total Compensation: 8.38% 3. General Members - Tier II Effective 7-1-85 on Total Compensation: 6.49% 4. Safety Members Effective 7-1-85 on Total Compensation: 13.50% B. Employee Rates: See attached sheets for details on both General Members and Safety Members i II. Cost of Living Program Contributions A. County and District Rates: 1. General Members - Tier I covered by Social Security Effective 7-1-85 5.23% of earnable compensation 2. General Members - Tier I not covered by Social Security Effective 7-1-85 5.23% of earnable compensation 3. General Members - Tier II Effective 7-1-85 4.64% of earnable compensation 4. Safety Members Effective 7-1-85 5.23% of earnable compensation B. Employees Rates: 1. General Members - Tier I covered by Social Security Effective 7-1-85 36.26% of the basic full rates 2. General Members - Tier I not covered by Social Security Effective 7-1-85 36.26% of the basic full rates 3. General Members - Tier II Effective 7-1-85 38.675% of the basic full rates 4. Safety Members Effective 7-1-85 36.26% of the basic full rates III. Interest to be Credited to Reserves Effective 7-1-85 8h% per annum, compounded semi-annually IV. Rates are' subject to modification due to. Retirement Board and/or Board of Supervisors' resolutions. g Dept.: Retirement y copy of Orig. De t.: I hereby certify that this Is r t-ue nr�d correct Co cc: Director of Personnel an action taker; and enter(-;, or, of the Auditor-Controller Board of Supervisors on !:;c darr. :`I. County Counsel County Administrator ATTESTED: TRE /8 1985 Of Supervisors ai;ci Lo:,•.�,C�:...:r ,it'd ByatIK , Veputy RESOLUTION NO. 85/333 i COUNTY OF CONTRA COSTA General Members' Contributions Rates* Tier I - Sec. 31676.11 Tier I no Soc. Security Tier II 'Sec. 31751 . Basic C.O.L.** Basic C.O.L.** Basic C.O.L.***. Excess of First $350 Monthly Total Total Entry of Monthly Compensation Monthly Monthly Age Compensation over $350 Compensation Compensation 16 4.36% 6.54% • 6.54% 2.46% 17 4.36 6.54 6.54 2.46 18 4.36 6.54 6.54 2.46 19 4.36 6.54 6.54 2.46 20 4.36 6.54 6.54 2.46 21 4.36 6.54 6.54 2.46 22 '4.37 6.55 6.55 2.46 23 4.37 6.56 . 6.56 2.46 24 4:38 6.57 6.57 2.47 25 4.39 6.59 6.59 2.48 26 4.41 6.62 6.62 2.49 27 4.43 6.64 6.64 2.50 28 4.45- 6.67 6.67 2.51 29 4.47 6.70 6.70 2.52 30 4.49 6.74 6.74 2.53 31 4.51 6.77 6.77 2.54 32 4.54 6.81 6.81 2.56 33 4.56 6.84 6.84 2.57 34 4.59 6.88 6.88 2.59 35 4,62 6.93 6.93 2.61 36 4.65 6.97 6.97 2.62 37 4.68 7.02 7.02 2.64 38 4.71 7.07 7.07 2.66 39 4.75 7.12 7.12 2.67 40 4.78 7.17 7.17 2.69 41 4.81 7.22 7.22 2.71 42 4.85 7.28 7.28 2.73 43 4.89 7.33 7.33 2.76 44 4.93 7.39 7.39 2.78 45 4,97 7.45 7.45 2.80 46 5.01 7.51 7.51 2.82 47 5.05 7.58 7.58 2.85 48 5.09 7.64 7.64 2.87 49 5.14 7.71 7.71 2.90 SO 5.19 7.78 7.78 2.93 51 5.23 7.85 7.85 2.95 52 5.29 7.93 7.93 2.98 53 5.33 8.00 8.00 3.01 . 54 & Over 5.39 8.08 8.08 3.04 * As a percentage of salary (full contribution rates). Based on 82A interest and 6 3/4% salary scale assumptions. ** 36,26% of the basic contribution rate #** 38.675% of the basic contribution rate Note: The C.O.L. contributions have tkpt,.b-zeM: reduced for..trarisfr6ts from the Contingency Reserve COUNTY OF CONTRA COSTA Safety Members' Contribution Rates* Section 31664 Entry Age - Basic C.O.L.** 21 4 Under 7.56% 22 7.58 23 7.61 24 7.64 25 7.69 26 7:74 27 7.80 28 7.87 29 7.94 30 8.01 31 8.10 : 32 8.18 33 8.27 34 8.36 35 $ Over 8.45 * As a percentage of salary (full contribution rates) . Based on Shy interest and 6 3/4% salary scale assumptions. ** 36.26% of the basic contribution rate Note: The C.O.L. Contributions have not been reduced for transfers from the Contingency Reserve.