HomeMy WebLinkAboutMINUTES - 04261988 - 1.64 _.... _ 064
TO: BOARD OF SUPERVISORS VA
4
FRO"''
'Phil Batchelor, Contra,
County AdministratorCosta
DwTE' April 19 , 19 8.8 C
SUBJECTCOST-OF-LIVING SUPPLEMENT FOR SELECTED RETIREES
SPECIFIC REQUEST(S) OR RECOMMENDATION(S') & BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1. Approve the continuation of a retiree cost-of-living supplement from
April 1, 1988 to March 30 , 1989.
2. Request that in the future, the Retirement Board only consider asking
for such action after supplements for the employee and employer have
also been considered.
FINANCTAL IMPACT:
The requested action would reduce the amount available in the retirement
funds ' undistributed earnings by approximately $1 , 560,000. It would
maintain the supplement now being received by retirees whose purchasing
power has been reduced by over 25% since retirement, due to inflation
exceeding COLA' s.
BACKGROUND:
On April 8 , the Retirement Board received the most recent actuarial study
on the status of the retirement fund. Some funding was identified as
"undistributed earnings" , that is, money that is available but not
allocated to a specific purpose. A portion of that funding is required to
go into a contingency reserve account, but it is expected that some funding
would remain after the reserve is established.
Last year, . and for several years in the past, the Retirement Board has
"shared" the . undistributed earnings with employers, employees and retirees.
That action. is generally taken at a meeting which occurs several weeks
after the report has been received. This year, however, the Retirement
Board was faced with a dilemma in that the actuarial report was received so
late that to take the time to study it as it had in the past would mean
those retirees who receive the supplemental allowance would be faced with a
break in their allowances. Therefore, the . Retirement Board voted 'to
continue the Retiree Supplement without addressing possible requests from
employer or employee groups for consideration of a portion of the
supplement. Employer and employee requests will be considered during the
regular May meeting of the -Retirement- Board.
CONTINUED ON ATTACHMENT' _X_ YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): �f (t p p
ACTION OF BOARD ON April G6 , 1700 APPROVED AS RECOMMENDED � OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS (ABSENT AM CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC: County Administrator ATTESTED APR 2 6 1988
Retirement Board (Betty Lanoue)
PHIL BATCHELOR, CLERK OF THE BOARD OF
SUPERVISORS AND COUNTY ADMINISTRATOR
BY
M382/7-83 � _,DEPUTY
Although the reasons for the Retirement Board' s action are understandable,
it seems much preferable to employees and employers that consideration for
supplements to all groups be given at the same meeting. In that way, all
requests will be equally considered. For that reason, it is recommended
that the Retirement Board be asked to consider all requests for supplements
at the same time in the future.