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HomeMy WebLinkAboutMINUTES - 06041991 - 1.113 113 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on June 4, 1991 , by the following vote: AYES: Supervisors Schroder, Torlakson, Powers NOES: None ABSENT: Supervisors Fanden, McPeak ABSTAIN: None RESOLUTION NO. 91/372 SUBJECT: Approving Contribution Rates to and Interest to be Credited by the Contra Costa County Employees' Retirement Association and authorizing 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, 1991. 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: 5.72% on earnable compensation in excess of $350 monthly: 8.58% 2. General Members-Tier I not covered by Social Security: 8.58% 3. . General Members-Tier II: 7.33% 4. Safety Members: 14.93% B. Employee Rates: See attached sheets for details on both General and Safety Members. II. Cost of Living Program Contributions A. County and District Rates, payable as a % of earnable compensation: 1. General Members-Tier I covered by Social Security on the first $350 of earnable monthly compensation: 3.73% on earnable compensation in excess of $350 monthly: 5.59% 2. General Members-Tier I not covered by Social Security: 5.59% 3. General Members-Tier II: 4.85% 4. Safety Members: 5.39% B. Employee Rates, payable as % 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. Interest to be Credited to Reserves Effective 7/1/91: 8 1/4% per annum, compounded semi-annually. L Orig. Dept.: cc: RESOLUTION NO. 91/372 IV. Modifications Rates are subject to modification due to Retirement Board and/or Board of Supervisors resolutions. For the period July 1, 1991 through June 30, 1992 only, the Retirement Board has agreed to transfer $8,751,358 from its undistributed earnings against contributions due from employers and 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 % of earnable compensation: 1. General Members-Tier I covered by Social Security, on the first $350 earnable monthly compensation: 2.37% on earnable compensation in excess of $350 monthly: 3.56% 2. General Members-Tier I not covered by Social Security: 3.56% 3. General Members-Tier II: 3.00% 4. Safety Members: 2.96% B. Employee Rates: payable as a % 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 rate of $4.24 per month per year of service, to be effective July 1, 1991 through June 30, 1992, funded by a transfer of $1,565,433 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: .829002 General Tier II: .752359 Safety: .933836 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: '� a Orig. Dept.: PHIL BAT HELOR,Clerk of the Board CC: of Supervisors and County Administrator BY Deputy RESOLUTION ONO. 91/372 COUNTY OF CONTRA COSTA Safety Members' Contribution Rates* Section 31664 Entry _Age Basic COL** 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 8. 08 1. 30 27 8. 14 1. 31 28 8.21 1. 32 29 8.29 1. 33 30 8 . 37 1. 35 31 8 .46 1. 36 32 8 .55 1.37 33 8. 64 1. 39 34 8 .73 1.40 35 8. 83 1.42 36 8 .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 9.73 1. 56 45 9.83 1.58 46 9.93 1.60 47 10. 04 1. 61 48 10. 15 1.,63 49 & Over 10.25 1. 65 * As a percentage of salary (full contribution rates) . Based upon 8.-25% interest and 6.50% salary scale assumptions. ** 16. 08% of basic rates. Note: Reflects Retirement Board transfer of $ 3 , 007 , 877 . op May 9, 1991 r 91/372 COUNTY OF CONTRA COSTA General Members, Contribution Rates* Tier 1 - Section 31676.11 Tier 2 - Section 31751 Basic COL** Basic COL** First cess o First cess o $350 of Monthly $350 of Monthly Total Total Entry Monthly Compensation Monthly Compensation Monthly Monthly Age Compensation Over $350 Compensation Over $350 Compensation Compensation 20 4.50% 6.75% .72% 1.09% 2.55% .44% 21 4.50 6.75 .72 1.09 2.55 .44 22 4.51 6.76 .73 1.09 2.55 .44 23 4.52 6.78 .73 1.09 2.55 .44 24 4.53 6.79 .73 1.09 2.56 .44 25 4.54 6.81 .73 1.10 2.57 .44 26 4.56 6.84 .73 1.10 2.58 .44 27 4.57 6.86 73 1 10 2.59 .45 28 4.59 6.89 .74 1.11 2.60 .45 29 4.62 6.93 .74 1.11 2.61 .45 30 4.64 6.96 .75 1.12 2.62 .45 31 4.67 7.00 .75 1.13 2.64 .46 32 4.69 7.03 .75 1.13 2.65 .46 33 4.71 7.07 .76 1.14 2.67 .46 34 4.75 7.11 .76 1.14 2.68 .46 35 4.77 7.16 .77 1.15 2.70 .47 36 4.80 7.20 .77 1.16 2.72 .47 37 4.83 7.25 .78 1.17 2.73 .47 38 4.87 7.30 .78 1.17 2.75 .47 39 4.90 7.35 .79 1.18 2.77 .48 40 4.94 7.41 .79 1.19 2.79 .48 41 4.97 7.46 .80 1.20 2.81 .48 42 5.01 7.52 .81 1.21 2.84 .49 43 5.05 7.58 .81 1.22 2.86 .49 44 5.09 7.64 .82 1.23 2.88 .50 45 5.13 7.70 .82 1.24 2.90 .50 46 5.18 7.77 .83 1.25 2.93 .51 47 5.22 7.83 .84 1.26 2.95 .51 48 5.27 7.90 .85 1.27 2.98 .51 49 5.31 7.97 .85 1.28 3.01 .52 50 5.37 8.05 .86 1.29 3.03 .52 51 5.41 8.12 .87 1.31 3.06 .53 52 5.47 8.20 .88 1.32 3.09 .53 53 5.52 8.28 .89 1.33 3.12 .54 54 & Over 5.57 8.36 .90 1.34 3.15 .54 * As a percentage of salary (full contribution rates). Based upon 8.25% interest and 6.50% salary scale assumptions. ** 16.08% of basic rates for Tier 1 and 17.24% of basic rates for Tier 2. Note: Reflects Retirement Board transfer of $ 3,007,877. May 9, 1991 c 91/372 TO: BOARD OF SUPERVISORS Contra Phil Batchelor, County Administrator T' _L: FROM: Costa June 4 , 1991 ��'' _ :�°z - County DATE: rTq-coon f CONTRIBUTION RATES TO CONTRA COSTA COUNTY EMPLOYEES' SUBJECT: RETIREMENT SYSTEM SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: Adopt resolution approving contribution rates to be charged and interest to be credited by the Contra Costa Employees' Retirement Association. and authorizing supplemental payments to retirees, effective July 1, 1991. FINANCIAL IMPACT: The contribution rates for employees and. employers will remain the same for fiscal year 1991-92 as fiscal year 1990-91, which reflects a subsidy from the Retirement Association for fiscal year 1991-92. The total anticipated County contribution will be $35,019,800. 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 have come from . excess investment income resulting from higher than anticipated returns on investments. The Retirement Board "revised their previous policy, adopted in 1988-89, which called for gradual reduction and eventual discontinuance of the subsidy to employees and employers. The new policy, adopted: September 11, 1990, sets the following procedure for the distribution of any excess earnings. CONTINUED ON ATTACHMENT: X YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED x OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT!y ) 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. JUN 4 Mt CC: CAO ATTESTED Retirement Administrator PHIL BATCHELOR,CLERK OF THE BOARD OF Auditor-Controller SUPERVISORS AND COUNTY ADMINISTRATOR BY v DEPUTY M382 (10/88) -L- First, transfer sufficient funds to the Contingency Reserve to maintain it at 30. Second, provide a supplemental cost of living adjustment to eligible retirees. Third, provide subsidy to maintain the net contribution rates for employees and employers that were effective July 1, 1990. If the undistributed earnings are not sufficient to meet each of the steps above, the policy calls for reducing the Contingency Reserve to the 1% required by law and distributing those funds. Because the undistributed earnings were not sufficient to meet each step of the policy for 1991-92 distribution, the Retirement Board did elect to reduce. the. Contingency Reserve to the to required' by law. For fiscal year 1991-92, the Retirement Association will transfer $10,316,791 against contributions due from all employers and employees for the cost of living program. This amount represents a transfer of $3 ,007,877 to maintain the employee contribution rates at the same level as fiscal year 1990-91 ; a transfer of $5 ,743 , 481 to maintain the same level of contribution rates as 1990-91 for employers and the remainder of $1,565, 433 to provide supplemental cost of living benefits for eligible retirees. Setting of the retirement contribution rates is solely the responsibility of the Retirement Board, based upon their fiduciary responsibility. 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 1990-91 non-modified rates becoming effective on July 1 , 1991 and increased retirement contributions for both employers and employees.