HomeMy WebLinkAboutMINUTES - 06181996 - C54 TO: , BOARD OF SUPERVISORS
,
Contra
FROM: Phil Batchelor, County Administrator is
Costa
DATE: June 18, 1996 . `�4 County
�SrA'coiily
SUBJECT: Employee Retirement Plan Contribution Rates for Fiscal Year 1996-97
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION(Sl:
1. ADOPT the attached resolution approved by the Retirement Board which establishes the
retirement plan contribution rates and authorizes supplemental payments to retirees effective
July 1, 1996.
BACKGROUND/REASON(S) FOR RECOMMENDATION(S):
Each year the Retirement Board establishes contribution rates for employee retirement plans as well
as payments to retirees. On May 14, the Retirement Board adopted the attached resolution
establishing new rates for Tier 1, Tier II and Safety retirement plans. The new rates are lower than
the rates currently budgeted for 1996-97. The fiscal impact of the rate changes will be discussed at
the Budget Hearings in July.
CONTINUED ON ATTACHMENT: _YES SIGNATURE: ��
RECOMMENDATION OF COUNTY ADMINISTRATOR_RECOMMEND& ION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON june 16, 1996 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS�ABSENT TRUE AND CORRECT COPY OF AN
AYES: 1 r . NOES: 011e ACTION TAKEN AND ENTERED
ABSENT: None ABSTAIN-' ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact:Tony Enea,6464084 ATTESTED June 18, 1996
PHIL BATCHELOR,CLERK OF
THE B D SUPE
A CADMI TRAT
cc: CAO
Retirement Administrator
Auditor-Controller
B
epu y er
CONTRA COSTA COUNTY EMPIAYEES' RETIREMENT ASSOCIATION
DATE: June 3, 1996
TO: Interested Parties, and
Employers of Members of•the Retirement System
FROM: Pat Wiegert, Retirement Administiator
SUBJECT: Contribution Rates for 1996-97 f�j
The Retirement Board recently concluded its annual review of the
actuarial valuation. As you know the end product of the actuary's study
is a recommendation of what the contribution rates should be for the
next fiscal year.
Enclosed are the rates adopted by the Retirement Board. A few points
need to be made about these rates:
1) The rates are effective July 1, 1996.
2) The rates are AFTER "SUBSIDY".
Since 1981, and except for last year, the Board has transferred a
portion of its earnings which are in excess of the assumed
interest rate to contribution reserve accounts, the net effect of
which is to lower both employee and employer contribution rates
for the next year.
Employer rates in Sections I and II of the attached Resolution
are modified by Section VI.a to show the effect of this year's
transfer. Employee rates on the two rates charts are already
reduced to reflect this year's transfer.
3) The rates are BEFORE ANY EMPLOYER SUBVENTION.
The rates quoted here are the employer and employee required
rates without taking into consideration any employer subvention
of employee contributions. Because of this, if you subvent
employee rates, you'll need to compute this additional
contribution and adjust both employee and employer rates
accordingly. A convenient methodology is included for your use.
4) The rates distinguish between "County" and "District" rates.
The County used the proceeds from its sale of Pension Obligation
Bonds to extinguish its share of the unfunded liability in early
1994. Since that time, the portion of the total employer rate
which is attributable to amortizing the unfunded liability has
been separately accounted for between the county and districts.
As always, if you have any questions on these rates or how they are to
be applied, please give us a call.
attachments
(rates.4)
655
.THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on June -1-8, 1996 , by the following vote:
AYES: Supervisors Rogers, DeSaulnier and. Torlakson
NOES: None
ABSENT: None
ABSTAIN: Supervisors Bishop and Smith
SUBJECT: 96/275
Approving Contribution Rates to be charged,�and Resolution No
Interest to be credited, by the 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 contributions and interest rates are approved to be effective
July 1, 1996.
I. Retirement Contributions
A. County and District rates:* ,
County District
1. General Members-Tier I covered by Social Security,
on the first $350 of earnable monthly compensation: 5.31% 9.66%
on earnable compensation in excess of $350 monthly: 7.978 14.498
2. General Members-Tier I not covered by Social Security: 7.978 14.498
3. General Members-Tier II: 3.868 10.178
4. Safety Members: 8.618 15.018
B. Employee Rates:
See attached sheets for details on both General and Safety Membe:.s.
II. Cost of Living Program Contributions
A. County and District Rates*, payable as a 8 of earnable
compensation:
County District
1. General Members-Tier I covered by Social Security
on the first $350 of earnable monthly compensation: 1.198 3.878
on earnable compensation in excess of $350 monthly: 1.788 5.808
2. General Members-Tier I not covered by Social Security: 1.788 5.808
3. General Members-Tier II: 1.198 5.098
4. Safety Members: 3.498 10.108
B. Employee -Rates, payable as 8 of the basic full contribution
rates:
1. General Members-Tier I covered by Social Security: 42.8558
2. General Members-Tier I not covered by Social Security: 42.8558
3. General Members-Tier II: 45.7128
4. Safety Members: 42.8558
III. Interest to be Credited to Reserves
Effective 7/1/96: The amount actually earned, after reduction to pay administrative
expenses, not to exceed 48 per six-month period, credited on 12/31/96 and 6/30/97, an
compounded.
IV. 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: .9639
General Tier II: .9157
Safety: .9772 1 owft Meat etre Is a true and caeeot d
an Whom and annred on Ma mUube 0
Sam of on Mia oris
Orig. Dept. : Retirement Ap.
cc: County Administrator �01�
Auditor-Contfoller
rd
V. Supplemental Benefits to Retirees
The allowances for retirees eligible for supplemental increases under Sec.
31681.8 of the California Gov. Code shall be at the rate of $4.77 per month, per
year of service, to be effective July 1, 1996 through June 30, 1997, funded by a
transfer of $1,515,000 from undistributed earnings and reserves of the Retirement
Fund.
In addition, those same retirees shall have their monthly allowances increased by
an added supplement, using a graded dollar amount ($4.45 per month down to $1.81
per month) based upon date of retirement. This additional supplement shall be
effective July 1, 1996 through June 30, 1997 and shall be funded by a transfer of
$1,000,000 from undistributed earnings and reserves of the Retirement Fund.
VI. Modifications
Rates are subject to modification due to Retirement Board and/or Board of
Supervisors resolutions. For the period_ July 1, 1996 through June 30, 1997 only,
the Retirement Board has agreed to transfer $15,523,500 from its undistributed
earnings and contingency reserve 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 8 of earnable compensation:
County District
1. General Members-Tier I covered by Social Security,
on the first $350 earnable monthly compensation: 08 0%
2. General Members-Tier I not covered by Social Security: 0% 0%
3. General Members-Tier II: 0% 0%
4. Safety Members: 0% 2.67%
B. Employee Rates: payable as a 8 of the basic full
contribution rates:
1. General Members-Tier I: 8.142%
2. General Members-Tier II: 8.685%
3. Safety Members: 8.142%
. .VII. County Cost of Retiree Health Benefits
Under California Gov. Code Section 31592.2, the Retirement Board has agreed to a
transfer of an amount not to exceed $8,920,700 from undistributed earnings and
reserves of the Retirement Fund to off-set the County's cost to provide health
care coverage to county retirees as certified to the Retirement Board each month.
Such transfer shall be effective July 1, 1996 and extend for one year only.
* The Pension Obligation Bonds issued by the County March 1, 1994, affected
contribution rates for certain County employees. The following non-County employers
who participate in the Retirement Association are referred to as "Districts". All
other departments/employers are referred to as "County".
o Mosquito Abatement o Diablo Water o Bethel Island Fire
o Central Sanitation o Housing Authority o Orinda Fire
o Rodeo Sanitation o Retirement o East Diablo Fire
o Delta Diablo Sanitation o City of Pittsburg o Moraga Fire
o Ironhouse Sanitation o Office of Education o Contra Costa County Fire
o Union rametery o Rodeo Fire
o San amon Fire o Bethel Island Municipal
Improvement
1 hereby aNN that this Is a true and emi 07 d
an acOm taken and entered on ftminuft�qy ow
ard
Bof eww on the date !�
Clerk of th board
CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION
EMPLOYER RATES FOR DISTRICTS
AT VARYING SUBVENTION IEVEIS
Eff. July 1, 1996
<--------------- Subvention Levels ------------------->
508 808 858 908 958 100%
TIER I (Aggregate)
Basic 14.048 14.048 14.04% 14.04% 14.048 14.04%
Subvention 2.75 4.40 4.68 4.95 5.23 5.50
Basic + Subv. 16.79 18.44 18.72 18.99 19.27 19.54
COL .00 .00 .00 .00 .00 .00
Total 16.798 18.448 18.728 18.998 19.278 19.548
TIER II
Basic 10.178 10.178 10.178 10.178 10.178 10.178
Subvention 1.20 1.92 2.04 2.16 2.28 2.40
Basic + Subv. 11.37 12.09 12.21 12.33 12.45 12.57
COL .00 ' .00 .00 .00 .00 .00
Total 11.378 12.098 12.218 12.338 12.458 12.578
SAFETY
Basic 15.018 15.018 15.018 15.018 15.018 15.018
Subvention 3.84 6.14 6.53 6.91 7.30 7.68
Basic + Subv. 18.85 21.15 21.54 21.92 22.31 22.69
COL 2.67 2.67 2.67 2.67 2.67 2.67
Total 21.528 23.828 24.218 24.598 24.988 25.368
All rates above are as a percent of payroll.
Employee contribution rates vary depending upon their age at entry. For this
reason, subvention percents above are averages for that coverage category.
If you wish to compute the exact subvention percent for each employee, do the
following:
1. Find the employee's basic contribution rate (only the basic rate can
be subvented) on the attached charts using the coverage category and
the employee's entry age.
2. Multiply this by your subvention percent (ie. 508, 708, 858, etc) .
3. Multiply this result by the reduction factor for that employment
category:
Tier I .9639
Tier II .9157
Safety .9772
(rates)
COUNTY OF CONTRA COSTA
• General Member Contribution Rates* C,
Effective 7/1/96
, Tier 1 - Section 316.11_ Tier 2 - Section 31751
Basic** COL*** Basic** COL***
First Excess of First Excess of
$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 &
Under 4.05% 6.08% .338 .508 2.318 .208
21 4.06% 6.098 .338 .508 2.318 .208
22 4.07% 6.118 .338 .508 2.328 .208
23 4.09% 6.138 .33% .508 2.32% .20%
24 4.118 6.16% .338 .508 2.33% .208
25 4.13% 6.19% .348 .508 2.35% .208
26 4.158 6.238 .34% .518 2.368 .21%
27 4.188 6.278 .348 .518 2.38% .218
28 4.21% 6.328 .348 .518 2.408 .218
29 4.258 6.378 .358 .528 2.428 .218
30 4.29% 6.438 .358 .528 2.44% .218
31 4.328 6.488 .358 .538 2.468 .218
32 4.37% 6.558 .368 .538 2.48% .218
33 4.41% 6.61% .368 .548 2.518 .22%
34 4.458 6.68% .368 .548 2.538 .228
35 4.50% 6.758 .378 .558 2.568 .228
36 4.558 6.828 .378 .558 2.59% .228
37 4.60% 6.90% .378 .568 2.628 .238
38 4.65% 6.98% .388 .578 2.64% .238
39 4.71% 7.068 .388 .578 2.68% .238
40 4.76% 7.148 .39% .588 2.71% .248
41 4.818 7.228 .398 .598 2.748 .248
42 4.878 7.31% .408 .598 2.77% .248
43 4.938 7.408 .408 .608 2.81% .248
44 4.99% 7.49% .41% .618 2.848 .258
45 5.06% 7.59% .41% .62% 2.888 .258
46 5.12% 7.688 .428 .638 2.91% .258
47 5.19% 7.788 .428 .638 2.95% .26%
48 5.258 7.888 .438 .648 2.99% .268
49 5.338 7.99% .438 .658 3.038 .268
50 5.408 8.10% .448 .668 3.07% .278
51 5.47% 8.208 .458 .678 3.118 .278
52 5.548 8.31% .458 .688 3.158 .278
53 5.62% 8.438 .468 .698 3.20% .288
54 & 5.698 8.548 .468 .708 3.248 .288
Over
* As a percentage of salary based upon 88 interest and graded salary scale assumptions.
** Basic rates shown are before any employer subvention.
*** Computed as 8.142% of basic rates for Tier I and 8.6858 of basic rates for Tier 2.
(ADMIN-contrate)
SAFETY MEMBERS' CONTRIBUTION RATES*
Effective 7/1/96
ENTRY AGE BASIC** COL***
20 7.99% .65%
21 8.01% .65%
22 8.04% .66%
23 8.08% .66%
24 8.12% .66%
25 8.17% .67%
26 8.21% .67%
27 8.26% .67%
28 8.32% .68%
29 8.38% .68%
30 8.44% .69%
31 8.51% .69%
32 8.58% .70%
33 8.66% .70%
34 8.74% .71%
35 8.83% .72%
36 8.92% .73%
37 9.01% .73%
38 9.11% .74%
39 9.22% .75%
40 9.33% .76%
41 9.44% .77%
42 9.56% .78%
43 9.68% .79%
44 9.81% .80%
45 9.93% .81%
46 10.07% .82%
47 10.20% .83%
48 10.34% .84%
49 &
over 10.49% .85%
* As a percentage of salary based on 8% interest and graded salary scale
assumptions.
** Basic rates shown are before any employer subvention.
*** Computed as 8.142% of the unsubvented Basic Rate.
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