To: BOARD OF SUPERVISORS
From: Mendocino County Employees Retirement Association
Meeting Date: February 11, 2025
|
Department Contact: |
Doris Rentschler |
Phone: |
707-463-4328 |
|
Department Contact: |
Judy Zeller |
Phone: |
707-463-4328 |
|
Item Type: Consent Agenda |
|
Time Allocated for Item: N/A |
Agenda Title:
title
Acceptance of the Mendocino County Employees Retirement Association Actuarial Valuation Report for the Fiscal Year Ending June 30, 2024; and Adoption of the Retirement Contribution Rates Contained Within the Report for Fiscal Year 2025/2026
End
Recommended Action/Motion:
recommendation
Accept the Mendocino County Retirement Association Actuarial Valuation report for the fiscal year ending June 30, 2024; and adopt the Retirement Board’s recommended employee and employer retirement contribution rates as contained within the report for fiscal year 2025/2026.
End
Previous Board/Board Committee Actions:
Actuarial reports are submitted annually for acceptance and adoption of contribution rates by the Board of Supervisors.
Summary of Request:
Segal Consulting prepared an Actuarial Valuation for the Mendocino County Employees Retirement Association as of June 30, 2024. This report is being provided to the Board of Supervisors with a recommendation from the Retirement Board, pursuant to Government Code Section 31453(a), to set the employer and employee contribution rates for fiscal year 2025/2026 as contained within the report as computed and recommended by Segal.
The aggregate recommended employer contribution rate for fiscal year 2025/2026 is 41.29% of payroll, a 1.22% increase from the fiscal year 2024/2025 aggregate rate. The aggregate recommended employee contribution rate for fiscal year 2025/2026 is 10.32% of payroll, a decrease of 0.15% from the fiscal year 2024/2025 aggregate rate.
The plan’s funded ratio, on a valuation value of asset basis, increased from 72.4% to 74.2%. While on a market value of asset basis, the funded ratio increased from 71.6% to 74.2%. The increase in aggregate employer and employee contribution rate is primarily attributed to amortizing the prior year’s UAAL over a smaller than expected projected total salary, an increase in liabilities associated with reciprocal vested members and actual contributions less than expected. These affects were offset somewhat by the investment gain (after smoothing) and individual salary increases for active members being less than expected.
The plan’s unfunded actuarial accrued liability (UAAL - the difference between the actuarial accrued liability and the valuation value of assets) decreased from $255.4 million to $248.3 million. The decrease in UAAL is primarily due to investment return on the valuation value of assets of 8.05% being greater than the assumed rate of 6.5%. The rate of return on the market value of assets was 9.27% for the plan year July 1, 2023, to June 30, 2024.
Alternative Action/Motion:
Government code section 31454(a) states that the Board of Supervisors shall “adjust… rates of contributions of members, and county and district appropriations in accordance with (emphasis added) the recommendation of the board (of retirement) …”
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: Unanimous
Supplemental Information Available Online At: www.mendocinocounty.gov/retirement
Fiscal Details:
|
source of funding: N/A |
|
current f/y cost: N/A |
|
budget clarification: N/A |
|
annual recurring cost: NA |
|
budgeted in current f/y (if no, please describe): N/A |
|
revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: N/A
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
|
Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
|
Date: February 11, 2025 |
|
|
|
|
|
|
|