Agenda

Return

D.5

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	October 13, 2015

Contra

Costa

County

Subject:

Government Code 7507 - Chief Executive Acknowledgement of Future Costs of Benefits - United Chief Officers' Association

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 10/13/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, Director
Candace Andersen, Director
Karen Mitchoff, Director
Federal D. Glover, Director

ABSENT:

Mary N. Piepho, Director

Contact:	Lisa Driscoll, County Finance Director, 335-1023
cc:	Ann Elliott, Employee Benefits Manager Harjit S. Nahal, Assistant County Auditor

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: October 13, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ACCEPT written acknowledgment by the County Administrator (Chief Executive Officer) that he understands the current and future costs of the Retirement benefit changes for Safety employees represented by United Chief Officers' Association, as determined by the County’s actuary in Actuarial Reports dated September 8, 2015.

FISCAL IMPACT:

As shown in the valuation, the combined result of the retirement changes described herein for Safety employees in the United Chief Officers' Association would result in a savings of 4.2% of annual pensionable pay with the first hire in year one. Future valuation results will change with demographic and cost updates. These projections do accurately measure the direction of the proposed plan change costs. Over time, as more employees are hired into the new PEPRA tier at a 2% COLA, the savings will become more significant. It should be noted that the figures presented in this report represent the savings associated only with the negotiation of a 2% COLA. The savings described in the valuation report do not include the savings resulting from the implementation of PEPRA.

BACKGROUND:

At its meetings of September 15, 2015, the CCC Fire District Board of Directors accepted an actuarial valuation of future annual costs of negotiated and proposed changes to Other Post Employment Benefits, as provided by the County's actuary in a letter dated September 8, 2015. The Board was informed that Government Code, Section 7507 requires with regard to local legislative boards, that the future costs of changes in retirement benefits or other post employment benefits as determined by the actuary, shall be made public at a public meeting at least two weeks prior to the adoption of any changes in public retirement plan benefits or other post employment benefits. The September 8, 2015 report fulfilled that requirement.

Government Code, Section 7507 also requires that if the future costs (or savings) of the changes exceed one-half of 1 percent of the future annual costs of the existing benefits for the body, an actuary shall be present to provide information as needed at the public meeting at which the adoption of a benefit change shall be considered. An actuary will be present at the meeting of October 13, 2015.

And finally, Section 7507 requires that upon the adoption of any benefit change to which the section applies, the person with responsibilities of a chief executive officer in an entity providing the benefit, however that person is denominated, shall acknowledge in writing that he or she understands the current and future cost of the benefit as determined by the actuary.

As the County Administrator (chief executive officer) and by approving this Board Order, I acknowledge in writing that I understand the current and future cost of the benefit changes presented to you today, as determined by the actuary and contained in the September 8, 2015 letter from Buck Consultants (County's actuary).

CONSEQUENCE OF NEGATIVE ACTION:

Delayed implementation of the COLA reduction, resulting in loss of savings.

VOTE OF SUPERVISORS

RECOMMENDATION(S):

FISCAL IMPACT:

BACKGROUND:

CONSEQUENCE OF NEGATIVE ACTION:

CHILDREN'S IMPACT STATEMENT: