To: BOARD OF SUPERVISORS
From: Mendocino County Employees Retirement Association
Meeting Date: February 3, 2026
|
Department Contact: |
Doris Rentschler |
Phone: |
707-463-4329 |
|
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, 2025; and Adoption of the Retirement Contribution Rates Contained Within the Report for Fiscal Year 2026/2027
End
Recommended Action/Motion:
recommendation
Accept the Mendocino County Retirement Association Actuarial Valuation report for the fiscal year ending June 30, 2025; and adopt the Retirement Board’s recommended employee and employer retirement contribution rates as contained within the report for fiscal year 2026/2027.
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, 2025. 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 2026/2027 as contained within the report as computed and recommended by Segal.
The aggregate recommended employer contribution rate for fiscal year 2026/2027 is 40.27% of payroll, a 1.55% decrease from the fiscal year 2025/2026 aggregate rate. The aggregate recommended employee contribution rate for fiscal year 2026/2027 is 10.28% of payroll, an increase of 0.04% from the fiscal year 2025/2026 aggregate rate.
The plan’s funded ratio, on a valuation value of asset basis, increased from 74.2% to 76.4%. While on a market value of asset basis, the funded ratio increased from 74.2% to 79.6%. The change in aggregate employer and employee contribution rate is primarily attributed to amortizing the prior year’s UAAL over a larger than expected projected total salary, and investment gain (after smoothing), offset somewhat by individual salary increases for active members being greater than expected and other demographic losses.
The plan’s unfunded actuarial accrued liability (UAAL - the difference between the actuarial accrued liability and the valuation value of assets) decreased from $248.3 million to $235 million. The decrease in UAAL is primarily due to investment return on the valuation value of assets being greater than the assumed rate of 6.50%. The rate of return on the market value of assets was 12.02% for the plan year July 1, 2024, to June 30, 2025. The actuarial investment gain (after asset smoothing) decreased the average employer contribution rate by 0.64% of payroll.
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: N/A |
|
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: Darcie Antle, CEO
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
|
Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
|
Date: February 3, 2026 |
|
|
|
|
|
|
|