HomeMy WebLinkAbout06.a.2) (Handout) CCCERA updateCentral Contra Costa Sanitary District
January 12, 2012 (Hando4
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
FROM: RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION
SUBJECT: CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION
(CCCERA) 1/11/2012 BOARD MEETING
Attached is a copy of the January 11, 2012 CCCERA Board meeting agenda.
Item #11, Presentation of Market Stabilization Account for the period ended June 30, 2011, is of
interest to the District.
The numbers presented are in relation to the required 7.75% return on investment to meet
CCCERA's and the District's liabilities. From June 30, 2007 through June 30, 2011 the
remaining amount to be smoothed over five years totals ($138,982,288). This means that the
return on investments for that period of time is $138,982,288 below the 7.75% level required. If
the return on investment was equal to the 7.75% level, there would be NO UAAL increase or
decrease. Anything above the 7.75% target reduces the UAAL and anything below the 7.75%
target increases the UAAL. Of the total $138,982,288 approximately $22,000,000 will be
allocated to the District.
As previously reported by staff, CCCERA has two years, 2011 and 2012, of the five year
smoothing remaining before the full impact of the past investment losses are realized and
calculated into the UAAL for all employers. This is why staff has estimated that the District's
UAAL will increase from $100 million to $122 million.
Please note the difference between December 31, 2011 and June 30, 2011 Market Stabilization
Account balances. There is a $189,831,665 improvement or decrease in the amount that is
remaining in the five year smoothing.
Staff has been working with the District's Bond Financial Advisor, CCCERA and John Bartel to
evaluate Board options to pay down the UAAL of $120 million in the most cost effective manner
with a clear understanding of the impact upon the Sewer Service Charge or rate. Staff will soon
complete the analysis for Board discussion.
Of interest and possible concern to the District is the resignation of Mr. Carey Hally, , effective
January 17, 2012. Mr. Hally is the Chief Investment Officer (CIO) for CCCERA for the past
seven years. CCCERA will place more reliance on Milliman Investment Manager until the
position is filled.
Back -up material is available upon Board Member request. Staff will be available to answer any
questions the Board may have.
Employees Retirement Association
1355 willow way suite 221 concord ca 94520
925.5
RETIREMENT BOARD MEETING
FIRST MONTHLY MEETING
9:00 a.m.
January 11, 2012
1. Pledge of Allegiance.
21.3960 fax 925.646.5747
Retirement Board Conference Room
The Willows Office Park
1355 Willow Way
Suite 221
Concord, California
2. Recognition of Luz Casas for 15 years of employment.
3. Public comment.
4. Approve minutes from the December 14, 2011 meeting.
Routine items for January 11, 2012.
a. Approve certifications of membership.
b. Approve service and disability allowances.
c. Accept disability applications and authorize subpoenas as required.
d. Approve death benefits.
CLOSED SESSION
** 6. 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. Leo Washington Service connected Service connected
b. Robert Duvall Service connected Service connected
c. John Higgins Service connected Service connected
d. Katheryn Bean Non- service connected Non- service connected
The Board will continue in closed session to consider the Hearing Officer's
recommendation regarding the disability application for Steven Christensen.
FBoard will provide reasonable
s for persons with disabilities
nd Board meetings who contact
Office at least 24 hours before a meeting
The Board will continue in closed session under Govt. Code Section 54957 to
consider recommendation from the Medical Advisor and /or staff regarding the
disability application of Sherri Garcia.
9. The Board will continue in closed session under Gov. Code Section 54956.9(a)
Board of Retirement v. County of Contra Costa, et al.
OPEN SESSION
10. Consider and take possible action on staff recommendation for asset allocation target
changes.
11. Presentation of Market Stabilization Account for the period ended June 30, 2011.
12. Consider authorizing the attendance of Board and /or staff:
a. Spring Conference, Council of Institutional Investors, April 1 - 3, 2012,
Washington, DC.
b. Principles of Pension Management, CALAPRS, March 27 — 30, 2012, Palo Alto,
CA (note conflict with Board meeting).
c. 14`h Annual Conference, Klausner & Kaufman, March 18 — 21, 2012, Ft.
Lauderdale, FL (note conflict with Board meeting)
d. Client Conference, Oaktree, March 14 — 15, 2012, Beverly Hills, CA
(note conflict with Board meeting).
13. Miscellaneous
a. Staff Report
b. Outside Professionals' Report
c. Trustees' comments
The Retirement Board will provide reasonable
accommodations for persons with disabilities
planning to attend Board meetings who contact
the Retirement Office at least 24 hours before a meeting
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