To: Board of Supervisors
From: Mendocino County Employees Retirement Association
Meeting Date: March 1, 2022
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Department Contact: |
Doris Rentschler |
Phone: |
463-4329 |
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Department Contact: |
Judy Zeller |
Phone: |
463-4328 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Acceptance of the Mendocino County Employees Retirement Association Actuarial Valuation and Review Supplemental Employer Contribution Rate reports for Fiscal Year Ending June 30, 2021; and Adoption of Retirement Contribution Rates Contained within the Reports for the Fiscal Year 2022/23
End
Recommended Action/Motion:
recommendation
Accept the Mendocino County Retirement Association Actuarial Valuation and review supplemental employer contribution rate reports for the fiscal year ending June 30, 2021; and adopt the Retirement Board’s recommended employee and employer retirement contribution rates as contained with the reports for the fiscal year 2022/23.
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 and Review for the Mendocino County Employees Retirement Association as of June 30, 2021. Additionally, Segal Consulting prepared supplemental employer contribution rate information comparing options that pay down the Unfunded Actuarial Accrued Liability faster. These studies are 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 contribution rates for fiscal year 2022/23 using Scenario 2 in the Supplemental Employer Contribution report and employee contribution rates as detailed in section 4, exhibit 3, of the Actuarial Valuation and Review report as computed and recommended by Segal.
The aggregate recommended employer contribution rate for fiscal year 2022/23 is 36.06%, a 1.38% decrease from the fiscal year 2021/22 aggregate rate. The aggregate recommended employee contribution rate for fiscal year 2022/23 is 10.02%, a decrease of 0.02% from the fiscal year 2021/22 aggregate rate.
The plan’s funded ratio, on a valuation value of asset basis, increased from 69.3% to 73.0%. While on a market value of asset basis, the funded ratio increased from 67.8% to 84.9%. The increase in funded ratio and decrease in aggregate employer contribution rate is primarily attributed to higher than expected return on investments. The rate of return on the market value of assets was 31.16% for the July 1, 2020 to June 30, 2021 plan year.
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)…”
Does This Item Support the General Plan? N/A
Supervisorial District: All
vote requirement: Unanimous
Supplemental Information Available Online At:www.mendocinocounty.org/retirement
Fiscal Details:
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source of funding: budgeted in current f/y: N/A |
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current f/y cost: if no, please describe: |
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annual recurring cost: revenue agreement: N/A |
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budget clarification: |
Agreement/Resolution/Ordinance Approved by County Counsel: N/A
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CEO Liaison: Executive Office |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Deputy Clerk II |
Final Status: Approved |
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Date: March 1, 2022 |
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