DATE: February 25, 2025
TO: Board of Supervisors
SUBMITTED BY: Donald C. Kendig, CPA, Retirement Administrator
SUBJECT: June 30, 2024 Annual Actuarial Report and FY 2025-26 Retirement Contribution Rates
RECOMMENDED ACTION(S):
TITLE
1. Receive and file the Fresno County Employees' Retirement Association Actuarial Valuation and Review report (the Actuarial Valuation and Review report) as of June 30, 2024 by The Segal Group, Inc. (Segal), relating to the Fresno County Employees' Retirement Association (FCERA);
2. Approve and adopt the Board of Retirement's recommended rate of interest, and employer and FCERA member contribution rates, for FY 2025-26 as provided for in the FCERA member contribution rates in Section 4, Exhibit 3 entitled "Member Contribution Rates," the employer contribution rates in Section 2, Subsection F entitled "Recommended Contribution," and the Administrative Expense Load percentage of Payroll rates in Section 4, Exhibit 1 of the Actuarial Valuation and Review report as of June 30, 2024, in accordance with Government Code sections 31453 and 31454; and
3. Direct the County Administrative Officer to discuss with FCERA Staff the potential for FCERA's smoothing of the unfunded actuarial accrued liability (UAAL) and associated employer contributions, in the upcoming Actuarial Valuation and Review report as of June 30, 2025, but not changing or impacting the Actuarial Valuation and Review report as of June 30, 2024 by Segal.
REPORT
Generally, under Government Code section 31453, upon the basis of the investigation, valuation, and recommendation of FCERA's actuary, the Board of Retirement, at least 45 days prior to the beginning of a fiscal year (here, FY 2025-26), recommends to your Board the changes in the rates of interest, in the rates of contributions of FCERA members, and in County and district appropriations (i.e., employer contributions) as are necessary. Accordingly, Government Code section 31454 generally requires your Board, no...
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