HomeMy WebLinkAboutMINUTES - 06221999 - C189 TO: BOARD OF SUPERVISORS CONTRA
FROM: Phil Batchelor y -' COSTA
County Administrator COUNTY
HATE: JUNE 16, '1999
SUBJECT: EMPLOYEE RETIREMENT PIAN CONTRIBUTION RATES FOR FISCAL YEAR
1999-2000
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
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, 1999 through September 30, 1999.
2. CONSIDER the proposed retirement plan contribution rates for the period of October 1, 1999
through June 30, 2000 after a Retirement Board review of an actuarial valuation study.
BACKGROUNDIREASON(S) FOR RECOMMENDATION(S):
Each year, the Retirement Board establishes contribution rates for employee retirement plans as
well as payments to retirees. On May 4, the Retirement Board adopted the attached resolution
establishing essentially the same rates as this year for Tier 1, Tier II and safety retirement plans
for the three month period of July 1 through September 30, 1999.
The rates are for a three month period because the annual actuarial valuation study has not been
conducted. The study has been delayed because of delays in obtaining information from the new
payroll system.
Staff of the Retirement Board have indicated that the study will factor in the long term costs of the
Ventura Decision, which will likely cause the new rates to rise.
The proposed new rates should be available in September, for the remainder of fiscal year 1999-
2000.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE:
f' RECOMMENDATION OF COUNTY ADMINISTRATOR`.RECOMMENDATION OF BOARD COMMITTEE
APPROVE —OTHER
�w
SIGNATURE(S). t/J
ACTION OF BOARD ON June 2Z . 1999 APP OVER AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
–XX__UNANIMOUS{ASSENT — I TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED
ASSENT: ABSTAIN: ON MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Contact: Tony Enea,6-1094
CC: CAO ATTESTED j YI n P 22 . 199_9_
Auditor-Controller PHIL BATCHELOR,CLERK OF
Retirement Administrator THE BOARS!OF SUPERVISORS
AND COUNTY AL1 INISTRATO
B DEPUTY
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on jii n P 2 Ig.Q Q ,by the following vote:
AYES: SUPERVISORS CIOIA, UILKEMA, GERBER, DeSAULMI R and CANCIAMILLA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
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SUBJECT: Approving Contribution Rates to be charged and Resolution No. 9 9 i 3 5
Interest to be credited,by the Contra Costa
County Employees' Retirement Association.
:Pursuant to Government Cade 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, 1999.
I. Retirement Contrzbut�ions- Basic Benefit Component
A. County and District rates:*
District
1. General Members-Tier I covered by Social Security,
On the first$350 of earnable monthly compensation: 7.35% 10.25%
On earnable compensation in excess of$350 monthly: 11.03% , 15.38%
2. General Members-Tier I not covered by Social Security:11.03% 15.38%
3. General Members-Tier 11: 6.44% 10.67%
4. General Members -Tier III:
On the first$350 of earnable monthly compensation: 3.85% 7.46%
On earnable compensation in excess of$350 monthly: 5.78% 11.20%
5. Safety Members: 11.32% 15.59%
B. Employee Rates:
See attached sheets for details on both General and Safety Members.
II. Cost of Living Pr rim Contributions
A. County and District Rates*,payable as a%of earnable
Compensation:
Co zi§trict
1. General Members-Tier I covered by Social Security
On the first$350 of earnable monthly compensation: 2.37% 4.12%
On earnable compensation in excess of$350 monthly: 3.55% 6.17%
2. General Members-Tier I not covered by Social Security: 3.55% 6.17%
3. General Members-"Fier II: 2.72% 5.26%
4. General Members -Tier III:
On the first$350 of earmble monthly compensation: 1.96% 3.84%
On earnable compensation in excess of$350 monthly: 2.95% 5.76%.
5. Safety Members: 3.77% 9.39%
B. Employee Rates,payable as a%of the basic full contribution
Rates:
1. General Members-Tier I covered by Social Security: 47.73%
2. General Members--Tier I not covered by Social Security: 47.73%
3. general Members-Tier 11: 50.92%
4. General Members o Tier 111: 30.83%
4. Safety Members: 47.73%
ADMINISTRATION
CONTRIBUTIONS
(Resolution)
d
III. Interest to be Credited to Reserves
Effective 7/1/99: The amount actually earned, after reduction to pay administrative
expenses,not to exceed 4.125%per six-month period, credited on 12/31/99 and
6/30/00, and 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: .992.1
General Tier II: .8925
General Tier 111: .9930
Safety: .9818
V. Modifications
Rates are subject to modification due to Retirement Board and/or Board of
Supervisors resolutions. For the period July 1; 1999 through June 30, 2000 only, the
Retirement Board has agreed to transfer$21,757,000 from its undistributed earning
and contingency reserve resulting in a reduction in contributions due from
employers and employees for the cost of living program.
In addition, the Retirement Board has agreed to transfer$46,670,000 from its
undistributed earning and contingency reserve resulting in flirt .er reduction in
contributions due from employers for the basic benefit component of the total rate
for the remainder of the 19 year amortization period.
These two transfers reduce the amounts to be paid by/for active members to:
Retirement Cc rltn utions-Basic Benefit Component
A. County and District rates:*
Co pn . ►lam tr t
1. General Members--Tier I covered by Social Security,
On the first$350 of earnable monthly compensation: 6.51% 9.99%
On earnable compensation in excess of$350 monthly: 9.77% 15.00%
2. General Members---Tier I not covered by Social Security: 9.77% 15.00%
3. General Members—Tier II: 5.59% 10.69%
4. General Members - Tier III:
On the first$350 of earnable monthly compensation: 3.26% 7.44%
On earnable compensation in excess of$350 monthly: 4.90% 11.19%
5. Safety Members: 10.33% 15.17%
B. Employee Rates:
See attached sheets for details on both General and Safety Members.
Cast of Living,-Propram ConWbu ions
B. County and.District rates*,payable as a%of earnable compensation:
County I1lstrict
I. General Members—Tier I covered.by Social Security
On the first$350 of eamable monthly compensation: 0% 0%
On earnable compensation in excess of$350 monthly: 0% 0%
2. General Members—Tier I not covered by Social Security: 0% 0%
3. General Members—Tier II: 0% 0%
4. General Members - Tier III
On the first $350 ofearnable monthly compensation: 0°fie 0%
On ea able compensation in excess of$350 monthly: 0% 0%
5. Safety Members: Oslo 0%
ADMINISTRATION
CONTRIBUTIONS
IONS
(Resolution)
C. Employee Rates,payable as a%of the basic full contribution
Rates:
1. general Members—Tier I: 0%
2. general Members—Tier II: 0%
3. general Members -Tier III: 0%
3. Safety Members: 0%
VI. S=1etngntal Benefits to Retirees
The monthly allowance for retirees eligible for supplemental increases under Sec.
31874.3(b) of the California Gov. Cade shall be increased by a supplement,using a
graded dollar amount($17.82 per month down to$7.20 per month)based upon date
of retirement. This supplement shall be effective July 1, 1999 through June 30,
2000 and shall be funded by a transfer of$1,108,400 from undistributed earnings
and reserves of the Retirement Fund.
'SII: Cogaty Cost of R tire; Health Benefits
Under California Gov. Code Section 31592.2,the Retirement Board has agreed to a
transfer of an amount not to exceed $10,334,000 from undistributed earnings and
reserves of the Retirement Fund to be used solely for the payment of the cost of
health care benefits to county retirees as certified to the Retirement Board each
month. Such transfer shall be effective July 1, 1999 and extend for one year only.
*The Tension Obligation Bonds issued by the County March 1, 1994, affected contribution rates
for certain County employers. 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".
*Mosquito Abatement *Diablo Water *Bethel Island Fire
*Central Sanitation *Housing Authority *Moraga/Orinda Fire
*Rodeo Sanitation *Retirement *Est Diablo.Fire
*Delta Diablo Sanitation *City of Pittsburg *Bethel Island
*Ironhouse Sanitation *Contra Costa County Fire Municipal Improve-
*Union Cemetery *Rodeo-Hercules Fire meat District
*San Ranson Fire *LAFCO
I hereby Wkify tit thle is a tme and oonsd oopy of
fttivi Win,aAA entered on the m'Inates o4 the
BOW of ftem or;the dare shown.
ATTESTS <,
PHIL BATCHELOR,Clark of the Board
of suers and County dmsnistratot
BY ' 19L, L Ceps
•yl
ADMLNISTRATION
CONTRIBUTIONS
RIBUTIONS
(Resotuon)
GENERAL MEMBERS`CONTRIBUTION RATES
(Expressed as a Percentage of Monthly Payroll)
Effective 7/1199
Calculated under Recommended Assumptions
TIER I TIER 11 TIER III
ENIBY AGE EMS! VY.&= I° &M DYER-=
15 3.99% 5.99% 2.26% 3.99% 5.99%
16 3.99% 5.99% 2.28% 3.99% 5.99%
17 199% 5.99% 2.28% 3,99% 5.99%
18 199010 5.99% 2.28% 3.99% 6.99%
19 3.99% 5.99% 2.28% 3.99% 5.99%
20 3.99% 5.99% 2.28% 3.99% 5.99%
21 3.99% 5.99% 2.28% 3.99% 5.99010
22 4.01% 6.01010 2,28% 4.01% 6.01%
23 4,(31010 6.02% 2.29% 4.01010 6Z2%
24 4.03010 6,05% 2.30% 4.03% 6.05%
25 4.05% 6.08010 2.31% 4.05% 6.08%
26 4.08% 6.12% 2.33% 4.08% 6.12%
27 4.11% 6.16% 2.34% 4.11% 6.16%
28 4.14% 6.21% 2.36% 4.14% 621010
29 4.18% 6.27% 2.38% 4.18% 6.27%
30 4.21% 6.32% 2.40% 4.21% 6.32%
31 4.25% 638% 2.43% 425% 6.38%
32 4.30% 6.45% 2.45% 4,30% 6,45%
33 4,35% 6.52% 2.48% 4.35% 6.62%
34 4.39010 6.59% 2.5101 439010 6.59010
35 4.45% 6.67% 2.54% 4.45% 6,67%
36 4.49% 614010 2.56% 4,49% 6.74%
37 4.55% 6.82% 2.60% 4.55% 6.82%
38 4.61% 6.91% 2.63% 4.61% 6»91%
39 4.66010 6.99% 2.66% 4.66010 6.99%
40 4.72% 7.08% 2.70% 4.72% 7.08%
41 4.78% 7,17% 2.73% 418% 7.17%
42 4.86% 7,27% 2.76% 4.85% 7.27%
43 4.91% 7.36% 2.80% 4.91% 7.36%
44 4,97% 7,46% 2.84% 4.97% 7.46%
45 6.03% 7.55% 2.87% 5.03% 7,55%
46 5.1010 7.65% 2.91% 5.10% 7.66%
47 5.17% 7.76% 2.95% 5.17% 7.76%
48 5.24% 7.86% 2.99% 5.24% 7.86%
49 5.31% 7.97010 3.03% 5.31% 7,97%
50 5.39% 8.08% 3.08% 5.39% 8.08%
51 5.46% 8.19% 3.12% 5.46% 8.19%
52 5Z4010 8.31% 3,16% 5.54% 8.31%
53 5.62% 8.43% 3.29% 5.62% 8.43%
54 5.70% 8.55% 3.42% 510% 8.55%
55 5.70% 8.55% 3.42% 5.70% 8.55%
56 5.70% 8.55% 3.42% 5.70% 8.55%
57 5.70% 8.55% 3.42% 5.70% 8.55010
58 5.70% 8,55% 3.42% 5.70% 8,55%
59 5.70% 8.55% 3.42% 5,70% 8.55%
60 5.70% 8.55% 3.42% 5,70% 8.55%
A,Imin/Contribu4,ions/Gene,-af Member Rates.99
Safety Members'Contribution Rates
(Expressed as a Percentage of Monthly Payroll)
Effective 711/99
Calculated under Recommended Assumptions
ENTRY AGE
15 7.50%
16 7.50%
17 7.50%
18 7.50%
19 7.50010
20 7.50%
21 7.51%
22 7.53%
23 7.56%
24 7,59%
25 7.64%
26 7,69%
27 7.75%
28 7.82%
29 7.89%
30 7.98%
31 8,07%
32 8.17%
33 8.27%
34 8.38%
35 &50%
36 &62%
37 8.74%
38 8.86%
39 8.99%
40 9.12%
41 9.25%
42 938%
43 9.52%
44 9.66%
45 9.79%
46 9.93%
47 10,08%
48 10,22%
49 1037%
so 10,37%
51 10.37%
52 10,37%
53 1037%
54 10.37%
55 10,37%
56 10.37%
57 10,37%
58 10.37%
59 10.37%
60 10.37%
Admin/Contributions/Safety Rates.99