HomeMy WebLinkAbout07. CCCERA Actions Affecting Leave Cash Out Assumptions10,6
Central Contra Costa Sanitary District
September 11, 2014
TO: ADMINSTRATION COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
DAVID HEATH, DIRECTOR OF ADMINISTRA ON
FROM: TEJI O'MALLEY, HUMAN RESOURCES MANAGER
SUBJECT: CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT
ASSOCIATION (CCCERA) RECENT ACTIONS THAT IMPACT LEAVE
CASH OUT ASSUMPTIONS.
The CCCERA Board of Trustees has recently adopted several changes to the actuarial
assumptions that will be utilized in the next valuation which will determine the Fiscal
Year 2015 -16 contribution rates and will impact the Unfunded Actuarial Accrued Liability
(UAAL). This memo is to provide the committee with a summary of the actions and the
impact to the District.
During their July 9, 2014 meeting, the Board took the two actions below:
• Determined that the next actuarial valuation should be completed with the
assumption that the judge's ruling will be implemented even though the appeal is
still in process.
• Voted to eliminate straddling
By doing this, the District's leave cash out assumptions, for non -PEPRA employees, will
decrease from an average of 24% (pre -2011 hires) and 8.75% (2011 -2012 hires) to an
average of 6.5 %.
During their August 13, 2014, the Board adopted a policy whereby employees will now
be required to split the normal cost associated with the leave cash outs. Previous to
this action, the employees had only been contributing a minimal amount (.04% of
salary) towards the cost of living (COL) portion of the leave cash out assumption. As a
result of this action, the District's share will be reduced by 0.67% of salary, which will
now be borne by the employee.
CCCERA anticipates that the valuation will be completed sometime in October and staff
will provide the Committee with the final contribution rates and the impact on the UAAL
at that time.
Staff will be available to answer any questions or provide clarification during the
meeting.