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HomeMy WebLinkAbout05.a.2) Contra Costa County Employees’ Retirement Association (CCCERA) update.5,_ a.2� Central Contra Costa Sanitary District February 10, 2011 TO: HONORABLE BOARD OF DIRECTORS VIA: JAMES M. KELLY, GENERAL MANAGER FROM. RANDALL M. MUSG RAVES, DIRECTOR OF ADMINISTRATION SUBJECT: CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION (CCCERA) 2/9/2011 AND 2/23/2011 BOARD MEETINGS Attached is a copy of the February 9, 2011 CCCERA Board meeting agenda. Of interest are agenda items #5 and #0. Also attached is a copy of the agenda item material. CCCERA's Actuary, Segal company, made a presentation for both agenda items. Also attached is copy of the February 23, 2011 CCCERA Board meeting agenda. Of interest are agenda items #5. A copy of this agenda item is also included for your review. #5 Five -Year Projection of Employer Contribution Rate Changes There are three items contributing to increased rates. The first is deferred gains and losses from the actuarial asset smoothing methodology over five years, the second is losses due to investment income not earned on the difference between the Actuarial value of Assets and the Market Value of Assets (income can only be made on investments in the market at the market rate), and the third is the gains and losses which occur from delaying the implementation of new rates until 13 months after the actuarial valuation date. An example is that the rates as of December 31, 2009 will be implemented July 1 2011 The average estimates of the rate change for the entire plan is shown on page two of the handout. Segal then calculated by employer, due to de- pooling, please see the table on the next page. Actuarial Rep ort Implemented on Market Value of Assets (MVA)* $148,760, 234 Projected Payroll for 2010 $25 Volatility Index (VI) — MVA/Payroll 5.90 Relative Volatility Index (VI) = CG VI/Total Plan VI 0.92 Estimated Incremental Rate Change 711112 3.32% as of 12/31/2010 Estimated Incremental Rate Change 711113 3.36% as of 12/31/2011 Estimated Incremental Rate Change 711114 3.21% as of 12/31/2012 Estimated Incremental Rate Change 711115 0.73% as of 12/31/2013 Estimated Incremental Rate Change 711116 -0.23% as of 12/31/2014 Cumulative Rate Change as of 3.32% 12/31/2010 Cumulative Rate Change as of 6.68% 12/31/2011 Cumulative Rate Change as of 9.89 % 12/31/2012 - Cumulative Rate Change as of 1 0.62% 12/31/2013 Cumulative Rate Change as of 10.39% 12/31/2014 *Excludes Post Retirement Death Benefit reserve. The District will pay 40.90% of payroll in 2011 -2012. An additional 3.32% will be added in 2012 to bring it to 44.22 %. By 2015, the District's employer contribution rate will be 51.29% of payroll, or an approximate $4.1 million increase, with total cost increase to the District (including the Employee Contribution paid by the District) totaling a $4.8 million increase. Total CCCERA payment for the District will increase from $12.3 million in 2011 -2012 to $17.1 million in 2015. #6 Cost -of- Living Adjustments (COLA) as of April 1, 2011 The annual cost -of- living increase is determined by comparing the December CPI for the San Francisco - Oakland -San Jose Area. The CCCERA Board adopted the rates displayed on the last page of the handout, applicable to the District. District employees retiring before 1985 will receive a 3% COLA, those retiring in 1985 will receive a 2.5% COLA and those employees retiring after 1985 will receive a 1.5% COLA. The maximum COLA granted for any one year is 3% for Tier 1. There is a COLA bank for CPI. If the CPI is 5 %, then 2% will go into the bank. New retirees will still have a COLA bank if needed. This year the COLA was 1.5 %, so there is nothing to add to the COLA bank. The bank is $0 for 412185 forward because the bank was used up in prior years or none existed for the most recent retirees. If you notice 412185 - 412185 is now using up their COLA bank and there is no carryover to next year. S x... Em P loyees' Fbtire m e nt Asso c ia tio n 1 355 willow way suite 991 concord ca 94.590 925.52 RETIREMENT BOARD MEETING FIRST MONTHLY MEETING 9:00 a.m. February 9, 2010 1.3960 fax 925.646.5747 Retirement Board Conference Room The Willows Office Park 1355 Willow Way Suite 221 Concord, California THE RETIREMENT BOARD MAY DISCUSS AND TAKE ACTION ON THE FOLLOWING: 1. Pledge of Allegiance. 2. Accept comments from the public. 3. Approve minutes from the January 26, 2010 meeting. 4. Routine items for February 11, 2011. a. Approve certifications of membership. b. Approve service and disability allowances. c. Accept disability applications and authorize subpoenas as required. d. 'Approve death benefits. 5. Presentation from The Segal Company regarding Five Year Projection of Employer Rate Projections. 6. Consider and take possible action to adopt the automatic cost-of-living increases for retirees effective April 1, 2011. 7. Consider and take possible action on staff recommendation for Accounting Technician Project/Temporary position. 8. Consider and take possible action on report from staff regarding rebalancing. CLOSED SESSION ** 9. The Board will go into closed session under Gov, Code Section 54957 to consider recommendations from the Medical Advisor and/or staff regarding the following disability retirement applications: Member Type Sought Recommendation a. Timothy Hasey Service Connected Service Connected The Retirement Board will provide reasonable accommodations for persons with disabilities planning to attend Board meetings Nvho contact the Retirement Office at least 24 hours before a meeting OPEN SESSION 10. Consider authorizing the attendance of Board and/or staff: a. Annual Conference, Pension Bridge, April 12 — 14, 2011, San Francisco, CA (note conflict with Board meeting) . b. Limited Partners Meeting, Credit Suisse, March 2, 2011, New York, NY. c. Portfolio Concepts and Management, Wharton, May 23 — 26, 2011, Philadelphia, PA (note conflict with Board meeting). d. Certificate of Achievement in Public Plan Policy, International Foundation, March S -- 6, 2011, San Antonio, TX e. Annual Conference, NCPERS, May 21 — 26, 2011, Miami, FL (note conflict with Board meeting). 11. Miscellaneous a. Staff Report b. Outside Professionals' Report c. Trustees' comments F ti remer�t Board Zvi l l provide reasonable modations for persons with disabilities g to attend Board meetings who contact irement O ffi ce at least 24 hours before a meeting MEETING DATE v '�SEGAL THE SEGAL COMPANY 100 Montgomery Street, Suite 500 San Francisco, CA 94 104 -4308 T 415.253.8200 F 41 5.283.8290 www.segaico.com February 1, 2011 Ms. Marilyn Leedom Chief Executive Offi cer Contra Costa County Employees' Retirement Association 1355 willow way, Suite 221 Concord, CA 94520 FEB 09 20 AGENDA ITEM John W. Monroe, ASX MAAA, EA Vice President & Assodate Actuary jmonroe @segaico.com ]fie: Contra Costa County Employees' Retirement Association Five -Yeas Projection of Employer Contribution Rate Changes Dear Marilyn: As requested, we have prepared a five-year projection of estimated employer contribution rate changes for C CCERA.. This proj ection is derived from the December 31, 2009 actuarial valuation results. Key assumptions and methods are detailed below. Results The estimated contribution rate changes shown on the next page apply to the recommended average employer contribution rate. For purposes of this projection, the rate changes are assunned to be from asset gains and losses that are funded as a level percentage of the Association's total active payroll base. The asset gains and losses are due to: (1) deferred gains and losses from the actuarial asset smoothing methodology; (2) losses due to investment income. not earned on, the difference between the Actuarial Value of Assets (AVA) and Market Value of Assets (MVA); and (3) contribution gains and losses which occur from delaying the implementation of new rates until 18 months after the actuarial valuation date. The following table provides the year -to -year rate changes from each of the above causes and the cumulative rate change over the five -year projection period. To obtain the estimated average employer contribution rate at each successive valuation date, these cumulative rate changes should be added to the rates developed from the December 31, 2009 valuation. These rate changes become effective 18 months following the actuarial valuation date shown in the table. Benefits, Compensation and HR Consulting Offices throughout the UnKed States and Canada M G Founding Member of the Multinational Group of Actuaries and Consultants, a global afFliation of independent firms A C Ms. Marilyn Leedom February 1, 2011 Page 2 The rate changes shown below represent the aver a rate for the aggregate plan. Rate Change Component Valuation hate 12/31/2010 12/31/2011 12/3112012 12/3112013 12/31/2014 (1) Deferred (Gains)/Losses 2.5.8% 2.81% 2.91% 0.41% -0.42% ( Loss of Investment Income on Difference Between AVA and MVA 0.62% 0.40% 0.17% -0.01% - 0.02% (3) 18 Month Rate Delay 0 0.45% 0.41% 040% 0.19% Incremental Rate Change 3.61% 3.66% 3.49% 0.80% - 0.25% Cumulative Rate Change 3.61% 7.27% 10.76% 11.56% 11-31% The rate change for an individual cost group or employer will vary depending primarily on the size of that group's assets and liabilities relative to its payroll. The ratio of the group's assets to payroll is sometimes referred to as the volatility index (VI). A higher VI results in more volatile contributions and can result from the following factors: * More generous benefits • More retirees 0 Older workforce • Shorter careers • Issuance of Pension Obligation Bonds (POBs) The attached exhibit shows the VI for CCCERA's cost groups along with the "relative VT" which is the VI for that specific cost group divided by the average VI for the aggregate plan. Using these ratios we have estimated the rate change due to these generally investment related net losses for each individual cost group by multiplying the rate changes shown above for the aggregate plan by the relative V1 for each cost group. These estimated rate changes for each cost group are shown in the attached exhibit. Note that because we have estimated the allocation of the rate changes across the cost groups, the actual rate changes by group may differ from those shown in the exhibit, even if the plan -wide average rate changes are close to those shown above. 5110295vl/05337.001 Ms. Marilyn Leedom February 1, 2011 Page 3 Key Assumptions and Methods The projection is based upon the following assumptions and methods: ] December 31, 2009 non - economic assumptions remain unchanged. December 31, 2009 retirement benefit formulas remain unchanged. l December 31, 2009 1937 Act statutes rernain unchanged. > UAAL amortization method remains unchanged (i.e., 18 -year layers, level percent of pay ). ] December 31, 2009 economic assumptions remain unchanged, including the 7.75% investment earnings assumption. ] 7.75% is actually earned on a market value basis for each of the five years, including_ 201 0. Active payroll grows at 4.25% per annum.. > Deferred investment gains and losses are recognized per the asset smoothing schedule prepared by the Association as of December 31, 2009. They are funded as a level percentage of the Association's total active payroll base. ] Deferred investment gains are all applied directly to reduce the UAAL. Note that this assumption may not be entirely consistent with the details of the Board's Interest Crediting and Excess Earnings Policy. > All other actuarial assumptions used in the December 31, 2009 actuarial valuation are realized. No changes are made to actuarial methodologies, such as adjusting for the contribution rate delay in advance. Finally, we emphasize that projections, by their nature, are not a guarantee of future results. The modeling projections are untended to serve as illustrations of future financial outcomes that are based on the information available to us at the time the modeling is undertaken and completed, and the agreed -upon assumptions and methodologies described herein. Emerging results may differ significantly if the actual experience proves to be different from these assumptions or if alternative methodologies are used. Actual experience may differ due to such variables as demographic experience, the economy, stock market performance and the regulatory environment. 51102950 /05337.001 Ms. Marilyn Leedom February 1, 2011 Page 4 Unless otherwise noted, all of the above calculations are based on the December 31, 2009 actuarial valuation results including the participant data and actuarial assumptions on which that valuation was based. That valuation and these projections were completed under the supervision of Sohn Monroe, ASA, MAAA, Enrolled Actuary. Please let us know if you have any Questions. 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Fl O p \ . � �i�i N o ,* . �\ � * O X00 �d1t+3 V -, ty vtic a 9 in +w Oq 41 a a A a G 4D N U an w +w+ 3 ad � N N N Aj ty 00 o e a a s MW w OC U 10 © fl to O wt w r e 000�+v N M H N O 4 4 O OP4 rrw rNK 1-4 *a% a► V a � a g � ey e� r�i � n�i 4 a n A ja u Q V o a a o a m ' d a ° UUU V �? esa �� 0 4j 96 G � ��i .� F:r A %Z V V u a► V i > '� � a u k .1 loss 4.0 4104 419 o> a a a ,ta. E E UUUL,? Lf q O r O V i d w �7 u P a as C a a 0 c.r v ai Q OU IS V � a 40 u v v � "v 7 u �a au a � a G a OA as O v , M a �n Ctrl CD ME '`SEGAL f UU JANE 2 7 Z011 THE SEGAL COMPANY Jahn W. Mortroe, ; �4, MAAA 100 Montgomery Street Suite 500 San Francisco, GA 941 04 -4308 Vice President & Associate, Actuary T 41 5.263.8200 F 415.263.8290 www.segalco.com jmonroe @segalco.com LAGEN NG DATE January 26, 2011 o J 2411 Ms. Marilyn Leedom Chief Executive Officer STEM Contra Costa County Employees' Retirement Association 1355 Willow Way, Suite 221 Concord, CA 94520 Re: Contra Costa County Employees' Retirement Association Cost -of- Living Adjustments (COLA) as of April 1, 2011 Dear Marilyn: We have determined the cost -of- living adjustments for the Association in accordance with Sections 31870.1 and 31870.3, as provided in the enclosed exhibits. . The cost-of- living factor to be used by the Association on April 1, 2011 is determined by comparing the December CPI for the San Francisco -- Oakland -San Jose Area (with 1982 -84 as the base period) in each of the past two years. The ratio of the past two December indices, 227.65 in 2010 and 224.23 in 2009, is 1.0152. The County Law sections cited above indicate that the resulting percentage change of 1.52% should be rounded to the nearest one -half percent, which is 1.5 %. Please note the above cost - of - living adjustments calculated using established procedures for CCCERA may result in adjustments different from those calculated using alternative procedures by other systems. The actual cost -of- living adjustment is dependent on tier and date of retirement. The CPI adjustment to be applied on April 1, 2011 is provided in Column (4) of the enclosed exhibits. The COLA bank on April 1, 2011 is provided in Column (5). Please give us a call if you have any questions. Sincerely, John Monroe DNAlkek. Enclosure 5117926v1105337.001 :!_. ��:;T,;•,_ V�_ , �r _ . , •_ �. :�� _ Offices throughout the United States and Canada .4 c Founding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms CFO 54 Contra Costa County Employees' Retirement Association Cost-Of-Living Adjustment As of Ap ril 1, 2011 (1) (2) (3) (4) (5) Retirement Date April 1 2010 Accumulated Carry-over CPI Change* CPI Rounded" CPl Used' April 1, 2011 Accumulated Car - over ** ** Tier 2 and Ter 3 (disability retirement only) Section 31 570.3 Maximum Annual COLA 4.0% 04/0211984 to 04/01/1985 0.0 4 10 1.52% 1.5% 1.5% 0.0% 0410211985 to 04/01/1986 0.0 4 10 1.52% 1.5% 1.5% 0.0% 04/02/1986 to 04/01/1987 0.0% 1.52% 1.5% 1.5% 0.0% 04/02/1987 to 04101/1988 0.0% 1.52% 1.5 0 10 1.5% 0.0% 04142/1988 to 04/01/1989 4.0 1.52% 15% 1.5% 0.0% 0410211989 to 0410111990 0.0% 1.52% 1.5% 1.5% 0.0% 04/02/1990 to 04101/1991 0.0 1.52 1.5% 1.5% 0.0% 04/02/1991 to 0410111992 0.0% 1.52% 1.5% 1.5% 0.0% 44102/1992 to 04/01/1993 0.0% 1.52% 1.5% 1.5% 0.0% .0410211993 to 44/0111994 0.0% 1.52% 1.5% 1.5% 0.0% 44/02/1994 to 04/01/1995 0.0% 1.52% 1.5% 1.5% 0.0% 04/02/1995 to 04/01/1996 0.0% 1.52% 1.5% 1.5% 0.0% 04102/1996 to 04/0111997 0.0% 1.52% 1.5% 1.5% 0.0% 04/0211997 to 04/01/1998 0.0% 1.52% 1.5% 1.5% 0.0% 04/02/1998 to 04/0111999 0.0% 1.52% 1.5% 1.5% 0.0% 04102/1999 to 0410112000 0.0% 1.52% 1.5% 1.5% 0.0% 04/0212000 to 04/0112001 0.0% 1.52% 1.5% 1.5% 0.0% 04/0212001 to 0410112002 0.0% 1.52% 1.5% 1.5% 0.0% 04/02/2002 to 0410112003 0.0% 1.52% 1.5% 1.5% 0.0% 04102/2003 to 04/01/2004 0.0% 1.52% 1.5% 1.5% 0.0% 04102/2004 to 04/01/2005 0.0% 1.52% 1.5% 1.5% 4.0% 04/02/2005 to 04/01/2006 0.0% 1.52% 1.5% 1.5% 0.0% 04/0212006 to 4410112007 0.0% 1.52% 1.5% 1.5% 0.0% 04/0212007 to 04/0112008 0.0% 1.52% 1.5% 1.5% 0.0% 0410212008 to 04/0112009 0.0% 1.52% 1.5% 1.5% 0.0% 04102/2009 to 04/01/2010 0.0% 1.52% 1.5% 1.5% 0.0% 04102/2010 to 04/01/2011 1.52% 1.5% 1.5% 0.0% * Based on ratio of December 2010 CPI to December 2009 CPI for the San Francisco - Oakland - San Jose Area. '* Based on CPI change rounded to nearest one -half percent These are the cost-of-living adjustment factors to be applied on April 1, 2011. These are the carry-over of the cast -of- living adjustments that have not been used on April 1, 2011. 5117920v1105337.001 S F G A L Contra Costa County Employees' Regrement Association Cost -Of- Living Adjustment As of April 1, 2011 (1) (2) (3) (4) (5) Retirement Date April 1, 2010 Accunmutated C over CPl Change* CPl Rounded** GPl Used*** ApnI 1, 2011 Accumulated verA*** Tier 1, Tier 3 (service retirement only) and Safety Section 31870.1 Maximum Annual COLA 3,0% On or Before 7/1!1954 12.5009 1.52% 1.5% 3.0% 11.000% 07/01/1964 to 07/01/1965 12.500% 1.52% 1.5% 3.4% 11.000% 07/02/1965 to 07/01/1956 12.500% 1.52% 1.5% 3.0% 11.000% 07/02/1966 to 07101/1967 12.500% 1.52% 1.5% 3,0"x0 11.000% 07/02/1967 to 07/0111968 12.500% 1.52% 1.5% 3.0% 11.000% 07/02/1 968 to 04/0111969 i z.'500% 1..52% i .6% 3.0% 11.000% 04/0211969 to 04/01/1970 12.500% 1.52% 1.5% 3.0 1 /6 11.000% - 04/02/1970 to 04/01/1971 12.500% 1.52% 1.5% 3.0% 11.D00% 0410211971 to 04!01 /1972 12.5D0% 1.52% 1.5% 3.0% 11.000% 04/0211972 to 0410111973 12.500% .1.52% 1.5% 3.0% 11.000% 04102/1973 to 04/0111974 12.500% 1.52% 1.5% 3.0% 11.ODO% 04/0211974 to 04/011/975 12.500% 1.52% 1.5% 3.0% 11.000% 04/02/1975 to 04/0111976 12.50096 1.52% 1.506 3.0% 11.000% 04/02/1976 to 04141/1977 12.500% 1.52% 1.5% 10% 11.000% 04!0211977 to 0410111978 12.500% 1.52% 1.5% 3.0% 11.000% 04/0211978 to 04/01/1979 12.500% 1.52% 1.5% 3.0% 11.000% 04102/1979 to 04/01/1980 12.500% 1.52% 1.5% 3.0°/o 11.000% 04/0211980 to 04101/1981 12.500% 1.52% 1.5% 3.0% 11.000% 0410211981 to 04/0111982 12.500% 1.52% 1.5% 3.0% 11.000% 04/02/1982 to 04/0111983 6.027% 1.52% 1.5% 3.0% 4.527% 04/0211983 to 04101/1984 3.500% 1.52% 1.5% 3.0% 2.000% 04/02/1984 to 04101/1985 3.5DO% 1.52% 1.5% 3.0 0 10 2.000% 04/0211985 to 04/0111986 1.000% 1.52% 1.5% 2.5% 0.000% 0410211986 to 04/01/1987 0.000% 1.52% 1.5% 1.5% 0.00096 04!0211987 to 04/01/1988 0.000% 1.52% 1.5% 1.5% 0.000% 04/0211988 to 04/01/1989 0.000% 1.52% 1.5% 9.5% 0.000% 04/0211989 to 04101/1990 0.000% 1.52% 1.5% 1.5% 0.000% 0410211994 to 04/01/1991 0.000% 1.52% 1.5% 1.5% O.ODO% 0414711991 to 0410111992 0.000% 1.52% 1.5% 1.5% O.ODO% 04/02/1992 to 0410111993 0.000% 1.52% 1.5% 1,5% 4.000% 04/0211993 to 04101/1994 0.000% 1.52% 1.5% 1.5% 0.000% 0410211994 to 0410111995 0.000% 1.52% 1.5% 1.5% 0.000% 04/0711995 to 0410111996 O.ODO% 1.52% 1.5% 1.5% 0.000% 04/02tl M to 04/0111997 0.000% 1.52% 1.5% 1.5% 0.000% 0410211997 to 04101/1998 0.000% 1.52% 1.5% 1.5°X0 0.000% D4/0211998 to 04/0111999 0.000 % 1.52% 1.5% 1.5% 0.000% 04/02/1999 to 04/01/2000 0.000% 1.52% 1.5% 1.5% 0.000% 04/0212000 to 04/01/2D01 0.000°10 1.52% 1.5% 1.5% 0.000% 04/0212001 to 04/01/2DO2 0.000% 1.52% 1.5% 1.5% 0.000% 04/0212002 to 04/01/2003 0.00016 1.52% 1.5% 1.5% 0.000% 04/0212003 to 44/01/2DO4 0.000% 1.52% 1.5% 1.5% 0.000% 44/0212004 to 04101/2005 0.000% 1.52% 1.5% 1.5% 0.000% 0410212005 to 04/0112008 0.000% 1.52% 1.5% 1.5% 0.000% 0410212006 to 04/01/2007 0.000% 1.52% 1.5% 1.5% 0.000% 04/0212007 to 04/01/2008 0.000% 1.52% 1.5% 1.5% 0,000% 04/02/2008 to 04/01/2009 O.ODO% 1.52% 1.5% 1.5% 0,000% 04/0212009 to 04/0112010 0.000% 1.52% 1.5% 1.5% 0.000% 04/02/2010 to 04/01/2011 1.52% 1.5% 1.5% 0.000% Based on ratio of December 2010 CPI to December 2009 CPI for the San Francisco - Oakland - San Jose Area Based on CPI change rounded to nearest one -half percent. These are the cast- of-living adjustment factors to be'applied on April 1 2011. These are the carry -over of the cost- of4iming adjustments that have not been used on April 1 2011. 51 1 7926v1105337, 001 S E G A L c. Em plo Fbfi nt Association 1355 willow wq v suite 221 � o ne O rd c n 94520 925.52 RETIREMENT BOARD MEETING SECOND MONTHLY MEETING 9:00 a.m. February 23, 2011 1.3960 fax 925.646.5747 Retirement Board Conference Room The Willows office Park 1355 Willow Way Suite 221 Concord, California THE RETIREMENT BOARD MAY DISCUSS AND TAKE ACTION ON THE FOLLOWING: 1. Pledge of Allegiance. 2. Accept comments from the public. 3. Approve minutes from the February 9, 2011 meeting. 4. Review of total portfolio performance including: a. Consideration of any managers already under review or to be placed under review. b. Consideration of any changes in allocations to managers 5. Receive report from staff regarding CCCERA's long term rolling returns compared to actuarial assumption rate. 6. Consider and take possible action on amendments to CCCERA's Security Litigation Policy. CLOSED SESSION 7. The Board will go into closed session under Govt. Code section 54956.9(b)(1). OPEN SESSION 8. Consider authorizing the attendance of Board and/or staff: a. LA Trustees Network Round Up 2011, February 28 — March 1, 2011, Los Angeles, CA. 9. Miscellaneous a. Staff Report b. outside Professionals' Report c. Trustees' comments F tirement Board will provide reasonable modations for persons with disabilities g to attend Board meetings who contact irement office at least 24 hours before a meeting MIEL-TING P_A_T9 02/23/11 AGENDA �ITEM f r Date: Februar 15, 2011 To: CCCERA Board of Retirement From Cm7 Hall Retirei.n,ent CIO ,Ln, our anal there are onl two 15- pen'ods wbich fall below 80/'0', the periods endin the 4 th q uarter of 2008 a:nd the Pt q uarter of 2009. This 'is not sur Insm. g i,ven, flie si I dowiitum. M". the capital markets durin 2008 and earl 2009. At no point does the 20- rollin return fall below the 8% Ievel. This anal 'is pi,,Ovided M", the chart on the followin page. m 1 — r � f to ll Ln 19 0000 LM c i t �n o I l MO SO-unr �i �I twi CO i u i i 110-unr U) LU 0 1 0 - ull in r a r I i i un eau i y /—� j 0 �� m