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HomeMy WebLinkAboutMINUTES - 05221990 - 1.83 1-083 TO: BOARD OF SUPERVISORS Contra FROM: Phil Batchelor, County Administrator .' Costa County DATE: May 22, 1990 SUBJECT: CONTRIBUTION RATES TO CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT SYSTEM SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Adopt resolution approving contribution rates to and interest to be credited by the Contra Costa Employees ' Retirement Association and authorizing supplemental payments to retirees. FINANCIAL IMPACT: The contribution rates for employees and employers will be decreased to reflect a subsidy from the Retirement Association for fiscal year 1990-91 . The total anticipated County contribution will be $31,789,766 . BACKGROUND: Since 1981, the Retirement Board has subsidized the cost of living contributions for employees and employers and provided supplemental benefits to retirees. The funds for this subsidy come from excess investment income resulting from higher than anticipated returns on investments. In 1988-89, the retirement Board decided to discontinue the subsidy. To ease the transition for employees and employers, a five year phase out was adopted. Depending upon available funds, a 20% reduction in the subsidy would be accomplished each year. CONTINUED ON ATTACHMENT: k YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE lei APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON MAY 2 Z IUD APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND 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: Retirement OfficeATTESTED MAY 2 2 1990 County Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR Personnel M382 (10/88) BY DEPUTY -2- Sufficient funds were not available for a 20% reduction in fiscal year 1989-90. Instead a 30% reduction occurred for the cost of living program subsidy and supplemental payments for retirees were also reduced. For fiscal year 1990-91, the - Retirement Board will transfer $9,842, 501 against contributions due from all employers and employees for the cost of living program. This amount represents the subsidy for cost of living at the 60% target, an amount to restore the cost of living not transferred for fiscal year 1989-90, the cost to supplement eligible retirees and the cost to restore the balance of the retirees '. supplement not transferred for 1989-90. The new contribution rates, as adopted by the Retirement Board on May 8, 1990, are shown in the attached resolution. These rates reflect the subsidy from the Retirement Board which results in decreased contributions for employees from 3 . 58 to 3 . 56 and employers from 14. 93 to 14.79. Setting of the retirement contribution rates is solely the responsibility of the Retirement Board, based upon their fiduciary responsibility to retirees. This requested action is ministerial in nature. By approving this action, your Board is approving the cost of living subsidy from the Retirement Board. Failure to adopt this resolution would result in the 1989-90 non-modif.ied rates becoming effective on July 1, 1990 and increased retirement contributions for both employers and employees. THE BOARD OF SUPERVISORS OF. CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on May 22, 1990 , by the following vote: AYES:- Supervisors Powers, Schroder, McPeak, Torlakson, and Fanden NOES: ABSENT: ABSTAIN: Resolution No. 90/331 SUBJECT: Approving Contribution Rates to and Interest to be Credited by the Contra Costa County Employees' Retirement Association and authorising supplemental payments to retirees under Govt. Code Sec. 31681.8. 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 July 1, 1990. I. Retirement Contributions A. County and District rates , 1. General Members-Tier I covered by Social Security, on the first $350 of earnable monthly compensation: S.83% on earnable compensation in excess of $350 monthly: 8.74% 2. General Members-Tier I not covered by SocialeSecurity: 8.74% 3. General Members-Tier II: 7.36% 4. Safety Members: 14.57% B. Employee Rates: See attached sheets for details on both General and Safety Members. II. Cost of Livina Program Contributions A. County and District Rates, payable as a X of earnable compensation: 1. General Members-Tier I covered by Social Security on the first $350 of earnable monthly compensation: 3.76% on earnable compensation in excess of $350 monthly: 5.64% 2. General Members-Tier I not covered by Social Security: 5.64% 3. General Meabers-Tier II: 4.89% 4. Safety Members: S.43% B. Employee Rates, payable as X of the basic full contribution rates: 1. General Members-Tier I covered by Social Security: 39.06% 2. General Members-Tier I not covered by Social Security: 39.06% 3. General Members-Tier II: 41.67% 4. Safety Members: 39.06% III. Inte;est to be Credited to Reserves Effective 7/1/90: 8 1/4% per annus, compounded semi-annually. IV. Modifications Rates are subject to modification due to Retirement Board and/or Board of Supervisors resolutions,. For the period July 1 , 1990 through June 30, 1991 only, the Retirement Board has agreed to transfer $7,822,130 from Its undistributed earnings against contributions due from employers and Resolution No. 90/331 employees for the cost of living program. This reduces the amounts to be paid by/for active members for that period only to: Cost of Living Program Contributions A. County and District rates , payable as a X of earnable compensation: 1. General Members-Tier I covered by Social Security, on the first $350 earnable monthly compensation: 2.29% on earnable compensation in excess of $350 monthly: 3.44% 2. General Members-Ti.er I not covered by Social Security: 3.31% 3. General Members-Tier II: 2.98% 4. Safety Members: 3.31% B. Employee Rates: payable as a X of the basic full contribution rates: 1. General Members-Tier I covered by Social Security: 16.08% 2. General Members-.Tier I not covered by Social Security: 16.08% 3. General Members-Tier II 17.24% 4. Safety Members 16.08% V. Supplemental Benefits to Retirees The allowances for retirees eligible for supplemental increases under Sec. 31681.8 of the Calif. Govt. Code shall be at the base rate of $4.00 per month per year of service, to be effective July 1, 1990 through June 30, 1991 , funded by a transfer of $1,505,724 from undistributed earnings of the Retirement Fund , and an.additional $1.50 per year of service payable in one sum and preferably with the benefit check dated July 1, funded by a transfer of $564,647 from- undistributed earnings of the Retirement Fund. VI. Non-refundability Discount Factors Because payments made by the employer on behalf of employees under agreements are non-refundable, they shall be paid at the following rates: General Tier I: .82780.9 General Tier II: .748610 Safety: .931498 1 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 dde dWWL ATTESTED: - M;g v :9 1990 PHIL BATCHELOR.Gawk of the Board of 8upervbora and Coua�y Armor Resolution No. 90/331 S.Q NTY QFF �PUTRA COSTA General Member gentrjW ion Ratasa Ties- lgpctlon 31674, 11 Ties je[tion 3.L77k_____ Basis COL** Basic First Excess of First Excess of $350 of Monthly $350 of Monthly Total total Entry Monthly Compensation Monthly Compensation Monthly Monthly Aae C4mbensatinn Over 1330 Como onIation Over 0350 Como ongat ion „S-WJLY-rLLfjLLcLD-. 20 4. 50% b:75% 0, 72% 1. 09% 2. 55% 0. 44 21 4. 50 6, 75 0. 72 1. 09 2, 55 0. 44 22 4. '31 6. 76 0, 73 1, 09 2, 55 0, 44 23 4, 32 6. 78 0, 73 1. 09 2, 55 0. 44 24 4. 53 A. 74 0. 73 2. 07 2, 56 O, 44 25 4. 54 6, 81 0. 73 1. 10 2, 57 0. 11 26 4. 56 6. 84 0, 73 1. 10 2, Be 0. 44 27 4, 57 6. 86 0. 73 1, 10 2. 59 0. 45 28 4, 59 6. 89 0. 74 1, 11 2. 60 0, 43 29 4. 62 6, 93 0. 74 1, 11 2, 61 0, 45 30 4, 64 6, 96 0. 75 1, 12 2. 62 0. 45 31 4. 67 7, 00 0. 75 1, 13 2. 64 0. 46 32 4. 69 7, 03 0. 75 1. 13 2, 65 0. 46 33 4. 71 7. 07 0, 76 1. 14 2. 67 0. 46 34 4. 75 7, 11 0, 76 1, 14 2, 88 0, 46 35 4, 77 7. 16 0. 77 2. 15 2. 70 0, 47 36 4. 80 7. 20 0. 77 1, 16 2, 72 0. 47 37 4. B3 7, 25 0. 78 1. 17 2, 73 0. 47 39 4- e7 7, 30 0. 78 1. 17 2. 75 0. 47 39 4. 90 7. 35 0. 79 1, 18 2, 77 0. 40 40 4. 94 7. 41 0. 79 1, 19 2. 79 0. 403 41 4. 97 7. 46 0. 80 1. 20 2, 01 0.'40 42 6, 01 7, 52 6. 81 1. 21 2, 04 0. 49 43 5, 05 7. 58 0181 1. 22 2. 06 0. 1? 44 15, 09 7. 64 0, 82 1. 23 2. V8 0. 50 45 9. 13 7. 70 0. 82 1. 24 2. 90 0. 50 46 5. 18 7, 77 0. 83 1. 29 2. 93 0. 51 47 5. 22 7. 83 0, 84 1. 216 2. 95 0. 31 48 5. 27 7, 70 0. 83 1. 27 2. ?e 0. 51 49 5, 31 7. IY7 (). 85 1. 28 3. 01 0. 12 50 5. 37 8. 05 0. 06 1. 29 3, 03 0, 52 51 9. 41 8, 12 0. 07 1, 31 3. 06 0. 53 52 5. 47. 8. 20 0, 08 1. 32 3. 09 0. 53 53 5. 52 S. :8 0. ©9 1. 33' 3, 12 0, 54 54 84 5. 57 8. 36 0. 9p 1. 34 3. 13 0. 54 Over * As a percentage of salary (full contribution rates). Based upon 8, 25% interest and 6. 50% sairru trAlr :ssumptions. (Study 4 1) *++. 6, 08% of basic rates for Tier 1 and 17. 24% of basic rates for Tier 2. Note: Reflects Retirement Board subvention of $3,475,710, May 14, 1990 s COUNTY OF CONTRA CQ9TA gafety Members ' Contribution Rates* Section 31664 Entry -,Aq e --JBafic C. 0. L. # 20 7. 87% 1, 27% 21 7. 89 1. 27 22 7. 91 1. 27 23 7. 94 1. 28 24 7. 98 1. 28 25 8. 03 1 . 29 26 S. 05 1. 30 27 e. 14 1 , 31 28 8. 21 1, 32- 29 S. 29 1. 33 30 e- 37 1 . 35 31 8. 46 1. 36 32 8. 55 1. 37 33 S. 64 1. 39 34 S. 73 1. 40 35 8. 83 1. 42 36 e. 93 1. 44 37 9. 02 1. 45 38 9. 12 1. 47 39 9. 22 1 .. 48 40 9. 32 1:' 50 41 9. 42 1. 51 42 9. 52 1. 53 43 9. 62 1. 55 44 V. 73 1. 56 45 9. 03 1. 58 46 9. 173 1. 60 47 10. 04 1. 61 48 10. 15 1. 63 49 & 10. 25 1. 65 Over W Aa a percentage of salary ( full Contribution rates ) . Pnst-d upon 8. 25% interest and 6, 50% salary scale assumptions. (Study � 1 ) #* 16. 08% of basic full rates. Note: Reflects Retirement Board subvention of $3, 475, 710. May 14, 1990 r