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Home My WebLink AboutMINUTES - 04201999 - C122 TO. BOARD OF SUPERVISORS t.�.�...,.. Contra FRONT: Costa PHIL BATCHELOR, COUNTY ADMINISTRATOR " County SATE: April 13, 1999 SUBJECT: INCREASE THE NUMBER OF MEETINGS FOR WHICH MEMBERS OF "qtr,,.RE1_ �lT BOARD,CAN PIE PAD ..� SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: IMPLEMENT the provisions of Government Code Section 31521 (as amended by AB 1768 - Chapter 109, Statutes of 1998) in Contra Costa County, authorizing an increase in the number of meetings for which specified members of the Retirement Board may be compensated from three to five. BACKGROUND: Prior to 1998, State law provided that members of the Retirement Board, other than those who are County employees, could be compensated $100 per meeting for not to exceed three meetings per year. This includes the Board's four appointees to the Retirement Board and the elected representative of the retirees. In 1998, legislation was enacted which increased the number of meetings for which these members could be compensated to five, but only in those counties where the Board of Supervisors voted to authorize the increase to five meetings. The Retirement Board has requested that the Board of Supervisors implement this legislation. Attached is a memo from the Retirement Administrator outlining the rationale for making this request. We recommend that the Board of Supervisors agree to implement this legislation in Contra Costa County. This action does not apply to the three elected County employees who serve on the Retirement Board nor does it affect the Treasurer-Tax Collector since they are on salary while they are conducting Retirement Board business. CONTINUED ON ATTACHMENT: YES SIGNATURE:, RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATUIR£S: ACTION OF BOARD ON-._April 2-0, APPROVED AS RECOMMENDED ' OTHER 1107E OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE 7 UNANIMOUS(ABSENT. nn012 -- ) 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_ April 201 1999 Contacts PHIL BATCHELOR,CLERK OF THE BOARD OF cc: County Administrator S ' VISORS AN OUNTY ADMiNIS T BATOR Auditor-Controller Retirement Administrator County Counsel BY DEPUTY y � Date: March 2, 1999 To: Board of Supervisors Af f From: Pat Wiegert, Administrator fi . Subject: Chapter 109, Statutes of 98 r r 7 '77- s,,." ,#<?:,. ,.It. t� 7„ ,5. On behalf ofthe Board of Retirement, I request that the Board of Supervisors adopt the permissive provisions of Government Code Section 31521 as amended by Chapter 109, Statutes of 98. At present, five members of the Retirement Board are each paid$100 for every meeting they attend, with a maximum compensation of$300 per month. The law was permissive and required adoption by the Board.of Supervisors. Contra Costa's Board of Supervisors adopted this provision effective July 1, 1986, Chapter 1€39 increased from three to five the limit on how many meetings per month would be compensated. The law continues to require the approval of the Board of Supervisors. Therefore the Board of Retirement asks the Board of Supervisors to adopt the new limitation provided in Section 31521. To assist the Board in its deliberations, I offer the following information: ® Only five Retirement Board members may be compensated: the four appointed members and the member elected by retirees. • The Retirement Board meets at least once each month. • Four times a year, the Retirement Board holds a special meeting to evaluate the investment performance of its money managers. ® The Retirement Board has two standing committees. Each Board member serves on one of these committees. Committee membership rotates annually. • Each committee meets once a month. Board members are encouraged to attend committee meetings even though they are not committee members.. • In addition to these fixed meetings, occasionally the Retirement Board holds special meetings to interview prospective money managers or to deal with a matter that requires special attention. • It's therefore quite common to hold four meetings in one month and entirely possible to have five meetings in one month. No General Fund monies are used to pay for the administration of the Retirement System. All costs, including those associated with Retirement Board meetings, are paid with .ncolrne from the investment of trust assets. cc: Retirement Board CONTRA COSTA COUNTY �� s -1EMPLOYEES RETIREMENT ASSOCIATION ! 1355 Willow Way,Suite 221,Concord,CA 94520-5728 Telephone: (925)646-5741,Fax. (925)646-5747 SUMMARY CHAPTER 109 Assembly Bill 1766 Effective: January 1, 1999 Permissive Provision: Currently the four appointed members and the retired member on the Board are paid $100 for each meeting they attend, not to exceed $300 per month. This bill allows the Retirement Board (with the approval of the Board of Supervisors) to pay for up to five meetings per month. Mandatory Provisions: The bill clarifies that a board member°s first responsibility is to the retirement system. Allows the board to hire an independent CPA to conduct the annual financial audit. In this event, any additional audit conducted by the County Auditor is at the county's expense. Clarifies that an agency or district that withdraws from a 37 Act retirement system remains liable for any unfunded actuarial liability. Establishes the method of calculating this liability. Assembly Bill No. 1766 CHAPTER 109 An act to amend Section 31521 of, to add Section 31564.2 to, and to repeal and add Sections 31522 and 31593 of, the Government Code, relating to county employee retirement systems. (Approved by Govermor July 3, 1998.Filed with Secretary of State July 6, 1998.1 LEGISLATIVE tOMS VS DIGEST AB 1766, Thkasugi. County . employee retirement systems; administration. (1) The County Employee Retirement Law of 1937 provides that the board of supervisors may provide that board of investment members receive compensation for not more than 3 meetings per month. This bill would authorize the board of supervisors to increase that to 5 meetings per month. (2) Existing law provides that the necessary work of administration by retirement board members is part of their official duties and shall be performed without additional compensation. This bill instead would provide that. elected board members who are county or district employees shall have their retirement board duties included as part of their county or district employment and that their board duties shall normally take precedence over any other duties. (3) Existing law requires the county auditor to annually audit the retirement system accounts. The bill would authorize the retirement board to retain a certified public accountant to perform the annual audit, authorize the board to select the county auditor to perform the annual audit, and authorize the county auditor to audit the retirement system at the request of the board of supervisors. (4) Existing law authorizes district governing bodies to withdraw district employees from county retirement systems and prescribes the disposition of funds. This bill would provide for the determination of district liabilities upon termination of participation. The people cifthe State of California do enact asfollows: SECT10N 1. Section 31521 of the Government Code is amended to read: 96 -3— Ch. 109 prevision of law, no contracting agency shall fail or refuse to pay the employer's contribution required by this chapter or to pay the employer's contribution required by this chapter within the applicable time limitations. In dealing with a withdrawing district, the board of retirement shall take whatever action needed to ensure the actuarial soundness of the retirement system. (e) The Legislature finds and declares that this section is declaratory of existing law, to the extent this section provides that upon withdrawal from the retirement system, a district shall remain liable for its share of the unfunded actuarial liability of the system. This section is intended to define the method of calculating the district's sham of that unfunded actuarial liability. SEC. 5. Section 31593 of the Government Code is repealed. SEC. C. Section 31593 is added to the Government Code,to read. 31593. The retirement board shall conduct an audit of the retirement system at least once every 12 months and report upon its frtancial condition. The retirement board may retain the services of a certified public acc6untant to perform the annual audit. That audit shall be performed in accordance with generally accepted auditing standards. The cast of the audit shall be considered a cost of the administration of the retirement system. The audit report shall address the financial condition of the retirement system, internal accounting controls, and compliance with applicable laws and regulations. A copy of the audit report shall he filed with the beard of supervisors. Nothing in this section shall preclude the retirement board from selecting the county auditor to perform the annual audit, and if so done, the cost of that audit shall he considered a cost of the administration of the retirement system. At the request of the county board of supervisors, the county auditor may audit the accounts of the retirement system. The expense of that audit shall not be a cost chargeable by the county to the retirement system. 0 96