DATE: February 12, 2019
TO: Board of Supervisors
SUBMITTED BY: Donald C. Kendig, CPA, Retirement Administrator
SUBJECT: June 30, 2018 Annual Actuarial Report and 2019-20 Retirement Contribution Rates
RECOMMENDED ACTION(S):
TITLE
Receive and file the Fresno County Employees' Retirement Association Actuarial Valuation and Review report as of June 30, 2018 by The Segal Group
REPORT
Accept the Board of Retirement's recommended employer and employee contribution rates for FY 2019-20 as provided for in the member contribution rates in Appendix A, the employer contribution rates in Appendix E, and the Administrative Expense Load percentage of Payroll rates in Section 2 of the Actuarial Valuation and Review report as of June 30, 2018, in accordance with Government Code sections 31453 and 31454.
In accordance with the provisions of the County Employees Retirement Law of 1937 and Board of Retirement policy, the annual review and actuarial valuation of the Fresno County Employees' Retirement Association (FCERA) was performed for Retirement Tiers I through V by The Segal Group (Segal), for the one year period ended June 30, 2018.
Pursuant to the foregoing actuarial valuation, the Board of Retirement adopted the employer and employee contribution rates for all tiers as presented by Segal, the actuary, at the Board of Retirement's regular meeting held on December 19, 2018.
ALTERNATIVE ACTION(S):
Government Code Section 31454 requires your Board to adjust employer and employee contribution rates no later than 90 days following the commencement of a fiscal year. You may defer implementation of the rates up to 90 days after the end of FY 2018-19; however, that would delay the timing of the assumed funding and result in an adjustment to the subsequent Actuarial Valuation and Review Report, slightly increasing future rates on a relative basis. The Board of Supervisors also has the option of pre-funding contributions based on the new rates, which would lower future rates ...
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