Agenda

Return

C.1

To:	Contra Costa County Fire Protection District Board of Directors
From:	Lewis T. Broschard III, Chief, Contra Costa Fire Protection District
Date:	June 7, 2022

Contra

Costa

County

Subject:

Agreement between East Contra Costa Fire Protection District (“ECCFPD”) and the Contra Costa County Employees’ Retirement Association (“CCCERA")

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/07/2022

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

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

Contact:

Lewis T. Broschard III, Fire Chief (925) 941-3300

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: June 7, 2022
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Fire Chief, or designee, to execute an agreement by and among the East Contra Costa Fire Protection District (ECCFPD) and the Contra Costa County Employees’ Retirement Association (CCCERA) concerning the transfer of pension assets and liabilities on CCCERA's books for ECCFPD to the Contra Costa County Fire Protection District''s account with CCCERA and the District’s assumption of pension-related responsibilities.

FISCAL IMPACT:

ECCFPD’s current balance of pension assets and liabilities on CCCERA’s books will be transferred to Contra Costa County Fire Protection District’s account with CCCERA. Assets in the account will then be available for use by CCCERA to provide retirement benefits for Contra Costa County Fire Protection District’s employees, retirees, and their beneficiaries, including former ECCFPD employees, retirees, and their beneficiaries. As of the last valuation of ECCFPD’s pension assets and liabilities on December 30, 2020, its assets were valued at $52,965,181 and its actuarial accrued liabilities were estimated at $58,563,937. CCCERA will complete an updated valuation prior to the transfer.

BACKGROUND:

On March 9, 2022, LAFCO approved the annexation and dissolution of ECCFPD. On July 1, 2022, the Contra Costa County Fire Protection District (the “District”) will assume the duties and obligations of ECCFPD as its successor agency, except that the District will not assume any of ECCFPD’s collective bargaining agreements, its express or implied contracts for retiree health/OPEB for its active employees, or any other employment agreements with its active employees. On that date, ECCFPD employees will become District employees.

CCCERA has requested that the District and ECCFPD enter into a Dissolving and Successor Agency Agreement (the “Agreement”) with itself to facilitate the transfer and administration of ECCFPD’s pension funds and responsibilities. Under the Agreement, CCCERA will transfer all pension assets and liabilities maintained in its account for ECCFPD to the account that it maintains for the District on the latter of July 1, 2022, or the date when the Agreement is fully executed. Following the transfer, CCCERA will cease maintaining an account for ECCFPD.

Pursuant to the Agreement, the District will be responsible for the employer and employee pension contributions that are required to be paid to CCCERA for funding the retirement of former ECCFPD employees, retirees, and their beneficiaries. The Agreement also provides that those former ECCFPD employees who become the District’s employees and are eligible for a service retirement upon their retirement, will be entitled to a level of cost-of-living adjustment (COLA) for the period of their service with ECCFPD that is higher than the level of COLA earned by comparable employees of the District for the same period of service. However, these employees will earn the same level of COLA as comparable employees of the District for the period of time that they are employed by the District. Additionally, the Agreement contains a mutual indemnification clause.

CONSEQUENCE OF NEGATIVE ACTION:

Failure to approve this action will impact the District's ability to fund the pension for its employees and retirees, including former employees and retirees of ECCFPD, by preventing the transfer of ECCFPD's pension funds held by CCCERA to the District's CCCERA account.