HomeMy WebLinkAboutMINUTES - 05121998 - C89 '----- 'AGA
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TO: BOARD OF SUPERVISORS
FROM: Phil Batchelor, County ,Administrator
DATE: May 12, 1998 covr�
SUBJECT: REQUEST TO GRANT WAIVER TO 45-DAY NOTICE OF CHANGES IN CERTAIN
INFORMATION REGARDING THE RETIREMENT BOARD
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
REC!2MM,E_ND, TIONISI
Grant a waiver to the 45-day advance notice to the Board of Supervisors which is required before the
Retirement Board recommends changes in interest rate credited to the members and the County and
contribution rates from employers and employees.
BACKQROUNDIREA-SON(S) FOR C
Government Code Section 39453 requires that the Retirement Board shall, at least 45 days prior to
the beginning of the new fiscal, recommend to the Board of Supervisors changes in the interest rates
which are to be credited to members and the County and contribution rates which are to be charged
to members and the County for the succeeding fiscal year.
As the attached memorandum from the Retirement Administrator indicates, the necessary Valuation
study is normally completed early enough to permit the 45-day deadline to be met. However, this
year the Retirement Board is also conducting an experience study before the valuation study was
undertaken. This experience study validates all noneconomic assumptions and is required to be
completed every three years.
The Retirement Board wants a little more time for all interested parties to conduct a thorough review
of the valuation study before it acts on the contribution rates. As a result, the Retirement Board is
asking that it be allowed to delay acting on the matters covered by Government Cade Section 31453
until July 14, 1998. This is only possible if the Board of Supervisors is willing to waive its right to the
45-day before the beginning of the fiscal year notice, which would be approximately May 15.
CONTINUED ON ATTACHMENT: YES SIGNATURE: —0 --Q— ,,,
RECOMMENDATION OF COUNTY ADMINISTRATOR—RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)-
ACTION OF BOARD ON MAY f 2 19910 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS(ASSENT I TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ABSENT: ABSTAIN: ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
MAY
ATTESTED
PHIL BATCHELOR,CLERK OF
THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
cc: County Administrator
Retirement Administrator
County Counsel
Auditor-Controlier
Tony Enea,Senior Deputy County Administrator ;
BY �,DEPUTY
CONTRA COSTA COUN{
MEMO RECEIVED
APR 2 7 1998
Date: April 22, 1998
OFFlUt OF
To: Phil Batchelor, County Administrator COUNTY ADMUSTRATOR
From: Pat Wiegert, Retirement Administrator
Subject: Retirement Contribution Rates for 1998-99
Government Code Section 31453 provides that the Retirement Board shallrecommend
new retirement contribution rates to the Board of Supervisors at least 45 days before the
beginning of the next fiscal year. We usually have the new rates to your office before the
May 15 deadline every year,
This is a request for a waiver of the May 15 deadline date this year.
While the actuary conducts a valuation every year, an experience study is performed only
once every three years. The experience study allows us to test our non-economic
actuarial assumptions against actual plan experience to determine whether'our
assumptions need to be revised. Such things as termination, mortality, morbidity and
retirement rates are all measured and revised if warranted. In those years when an
experience study is conducted, it always precedes the valuation.
This is the year for an experience study, the preliminary results of which were reviewed
by the Retirement Board at its April 14 meeting. Had there been no question with what
the study results indicated, the Board would have commissioned the valuation study and
set rates on May 5. This was not the case.
Instead, the Board requested the actuary to review its data and analysis in four critical
areas of the study, and to present its results at the May 5 meeting. With this delay, the
earliest date that the valuation could be completed and contribution rates established
would be June 9.
The Retirement Board wants to assure that any changes to its assumptions, which in turn
influence contribution rates, are supported either by actual plan experience or by national
industry standards, and are warranted to maintain the system's strong financial health. A
waiver of the May 15 deadline will allow this more thorough review.
CONTRA COSTA COUNTY
EMPLOYEES RETIREMENT ASSOCIATION
1335 Willow way,suite 221,Concord,CA 945213-5728
Teletthimpt (9251 646-5741.Pay- (92:51646-!5747