HomeMy WebLinkAboutMINUTES - 05181993 - IO.7 TO: BOARD OF SUPERVISORS 1 .0.-7.Q.-7 Contra
FROM: INTERNAL OPERATIONS COMMITTEE
o 's Costa
40¢ County
DATE: April 26 , 1993
SUBJECT: REAPPOINTMENTS TO AND MEETING WITH THE COUNTY RETIREMENT BOARD
SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1 . Reappoint to the Retirement Board for a three year term ending
June 30, 1996 :
F. Robert Koenig
158 Golden Ridge Road
Danville, CA 94595
Gerald T. Cruson
976 Natchez Drive
Walnut Creek, CA 94598
Edward J. Fleming
3408 Rossmoor Parkway
Walnut Creek, CA 94598
2 . Request the County Administrator and Retirement Administrator
to jointly arrange for a joint meeting of the Board of
Supervisors and Retirement Board on a Tuesday at Noon within
the- next two months. Authorize the County Administrator and
Retirement Administrator to jointly prepare the agenda for the
meeting, to include at least the following items :
* An update of the impact of Proposition 162 on our
County's retirement system.
* A discussion of retiree health benefits, including a
description of the extent to which retirees use. health
benefits, the costs of those benefits and options the
Board of Supervisors may wish to explore in order to
contain the cost of retiree health benefits .
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION PF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD CO E
APPROVE
SUNNE WRIGHT McPEAK J F S H
SIGNATURE(S):
ACTION OF BOARD ON May 18, 3993 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.
ATTESTED X 171-3
Contact: PHIL BATCHELOR, L RK OF THE BOARD OF
cc: See Page 2 SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
.A w.
I .O.-7
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The salary of the Retirement Administrator.
3 . Remove these items as referrals to our Committee.
BACKGROUND:
The terms of two members of the Retirement Board expire June 30,
1993 . The term of a third member, Mr. Fleming used to expire June
30, 1993 . However, legislation was sponsored by the Board of
Supervisors in 1991 to adjust the terms of office of several
members of the Retirement Board so that not as many would expire in
the same year. This legislation, among other things, extended Mr.
Fleming' s term of office by one year to June 30, 1994 .
The passage of Proposition 162 in 1992, despite the fact that it
was more aimed at actions taken by the Governor and the Legislature
in regard to STRS and PERS, appears to have effectively repealed
the Board' s 1991 legislation. It therefore appears prudent to
assume that Mr. Fleming's term of office still expires on June 30,
1993 and reappoint him for an additional three year term. In order
to again adjust the terms of office it will be necessary to place
a measure on the ballot to accomplish the change and hope that the
voters in the County will agree to this change.
Our Committee interviewed Mr. Koenig, Mr. Fleming and Mr. Cruson on
April 26, 1993 . All three noted that returns on equity investments
are unlikely to equal the returns of the past several years and
that the Retirement Board may, in fact, have some difficulty
maintaining its 8 1/4% interest assumption in the future. There
may, therefore, not be "surplus" earnings to use to reduce the
employer' s contributions as has been the case in the past several
years .
We discussed the cost of retiree health care and indicated that we
would like to discuss this subject with the full Retirement Board
in more detail .
The members of the Retirement Board indicated that the Retirement
Administrator was the lowest paid of any Retirement Administrator
in the area and among the lowest paid of any jurisdiction of our
size in the State. Representatives from the Retirement Board will
meet with the County Administrator to discuss this subject in more
detail . However, the Retirement Board would also like to discuss
this subject with the full Board of Supervisors if the issue has
not been resolved within the next few weeks .
In addition, it has been almost a year since the Board of
Supervisors met with the Retirement Board. Our Committee believes
that it is timely to again meet and discuss issues which are of
mutual concern to the Retirement Board and the Board of
Supervisors . We are, therefore, recommending that the County
Administrator and Retirement Administrator schedule such a meeting
and propose an agenda for the meeting which we hope to hold between
now and July 1, 1993.
We are very pleased with the cooperation and dedication of Mr.
Koenig, Mr. Fleming, and Mr. Cruson and highly recommend their
reappointment to the Retirement Board for an additional three year
term.
cc: County Administrator
Retirement Administrator
Auditor-Controller
County Counsel
Mr. Robert Koenig
Mr. Edward Fleming
Mr. Gerald Cruson