HomeMy WebLinkAbout03. CCCERA Contribution Rate Packet and Projection of ChargesS.
CONTT'RA _
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COSTA
COUI
Employees' Retirement Association
October 31, 2014
Roger Bailey
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553
Re: Actuarial Information Letters
Dear Roger Bailey,
Enclosed is a copy of the Five -Year Projection of Employer Contribution Rate Changes as provided to
us by Segal Consulting. This document is intended to provide an updated projection of estimated future
contribution rate changes for CCCERA.
Please read the attached document closely. This projection will provide an estimate to employers of
potential changes in contribution rates, based on the December 31, 2013 Actuarial Valuation. The
projected changes are mainly due to the scheduled recognition of deferred gains and losses from the
actuarial asset smoothing methodology.
Additional information regarding the Unfunded Actuarial Accrued Liability (UAAL) by employer, and
reconciliations by cost group of both the change in UAAL and change in employer contribution rates
will be provided to you when available.
Please review the enclosed information and call our office with any questions. We will be happy to
discuss particulars with each individual employer.
Sincerely,
Kurt Schneider
Deputy Retirement Chief Executive Officer
1355 Willow Way Suite 221 Concord CA 94520 925.521.3960 FAX: 925.646.5747 www.cccera.org
Ar Segal Consulting
100 Montgomery Street Suite 500 San Francisco, CA 94104 4308
T 415.263.8200 www segalco com
October 15, 2014
Mr. Kurt Schneider
Deputy Chief Executive Officer
Contra Costa County Employees' Retirement Association
1355 Willow Way, Suite 221
Concord, CA 94520
John W. Monroe, ASA, MAAA
Vice President & Associate Actuary
imonroe @segalco com
Re: Contra Costa County Employees' Retirement Association
Five -Year Projection of Employer Contribution Rate Changes
Dear Kurt:
As requested, we have updated our five -year projection of estimated employer contribution rate
changes for CCCE RA. This projection is derived from the December 31, 2013 actuarial
valuation results. Key assumptions and methods are detailed below. It is important to
understand that these results are entirely dependent on those assumptions. Actual results
as determined in future actuarial valuations will differ from these results. In particular,
actual investment returns and actual salary levels different than assumed can have a
significant impact on future contribution rates.
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 that are
reflected include the asset gains and losses that are funded as a level percentage of the
Association's total active payroll base.
The changes in contribution rate are due to: (1) deferred gains from the actuarial asset smoothing
methodology; (2) gains due to investment income earned on the difference between the Market
Value of Assets (MVA) and Actuarial Value of Assets (AVA) (and losses when the opposite
occurs); and (3) contribution gains 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 components
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, 2013 valuation. These
rate changes become effective 18 months following the actuarial valuation date shown in the
table.
Benefits, Compensation and HR Consulting. Member of The Segal Group. Offices throughout the United States and Canada
Mr. Kurt Schneider
October 15, 2014
Page 2
The rate changes shown below represent the average rate for the aggregate plan.
Rate Change
Component
Valuation Date (12/31)
2014
2015
2016
2017
2018
(1) Deferred (Gains) /Losses
-1.82%
-1.28%
-0.94%
-0.94%
-0.32%
(2) (Gain) /Loss of
Reflecting Actual Experience
through 12/31/2013 and Changes
in Demographic Ass um Lions
- 6.24 %1
-8.47%
- 10.41%
- 11.74%
Investment Income on
-0.41%
-0.26%
-0.16%
-0.09%
-0.02%
Difference Between
MVA and AVA
(3) 18 -Month Rate Delay
0.00%
-0.40%
-0.23%
-0.17%
-0.14%
Incremental Rate Change
-2.23%
-1.94%
-1.33%
-1.20%
-0.48%
Cumulative Rate Change
-2.23%
-4.17%
-5.50%
-6.70%
-7.18%
The difference between these cumulative rate changes and those shown in our January 31,
2014 letter (i.e., previous five -year projection) are as follows:
These differences are mainly due to the inclusion of changes in leave cashout assumptions in
the December 31, 2013 valuation. The differences also reflect actual experience from the
December 31, 2013 valuation instead of projected experience that was part of the previous
projection.
The average employer contribution rate as of the December 31, 2013 Actuarial Valuation is
43.58 %, and based on the cumulative rate changes above is projected to progress as shown
below.
Valuation
Date 12/31
2013
2014
2015
2016
2017
Cumulative Rate Change
From January 31, 2014 Letter
0.21 %
-1.66%
-3.47%
-4.90%
-6.21%
Reflecting Actual Experience
through 12/31/2013 and Changes
in Demographic Ass um Lions
- 6.24 %1
-8.47%
- 10.41%
- 11.74%
- 12.94%
Difference
-6.45%
1 -6.81%
1 -6.94%
1 -6.84%
1 -6.73%
These differences are mainly due to the inclusion of changes in leave cashout assumptions in
the December 31, 2013 valuation. The differences also reflect actual experience from the
December 31, 2013 valuation instead of projected experience that was part of the previous
projection.
The average employer contribution rate as of the December 31, 2013 Actuarial Valuation is
43.58 %, and based on the cumulative rate changes above is projected to progress as shown
below.
1 Actual change in the average employer contribution rate as shown on page 32 of the December 31, 2013 valuation
5336946vl/05337.002
Valuation Date 12/31)
2014
2015
2016
2017
2018
Average Employer
Contribution Rate
41.35%
39.41%
38.08%
36.88%
36.40%
1 Actual change in the average employer contribution rate as shown on page 32 of the December 31, 2013 valuation
5336946vl/05337.002
Mr. Kurt Schneider
October 15, 2014
Page 3
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
> 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 VI"
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 gains for each individual cost group by multiplying the rate changes shown above for the
aggregate plan by the relative VI 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.
Key Assumptions and Methods
The projection is based upon the following assumptions and methods:
> December 31, 2013 non - economic assumptions remain unchanged.
> December 31, 2013 retirement benefit formulas remain unchanged.
> December 31, 2013 1937 Act statutes remain unchanged.
> UAAI, amortization method remains unchanged.
> December 31, 2013 economic assumptions remain unchanged, including the 7.25%
investment earnings assumption.
> We have assumed that returns of 7.25% are actually earned on a market value basis for
each of the next four years after 2013.
> Active payroll grows at 4.00% per annum.
> Deferred investment gains and losses are recognized per the asset smoothing schedule
prepared by the Association as of December 31, 2013. They are funded as a level
percentage of the Association's total'active payroll base.
5336946vl /05337.002
Mr. Kurt Schneider
October 15, 2014
Page 4
> 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.
> The VI used for these projections is based on the December 31, 2013 Actuarial
Valuation and is assumed to stay constant during the projection period.
> All other actuarial assumptions used in the December 31, 2013 actuarial valuation are
realized.
> No changes are made to actuarial methodologies, such as adjusting for the contribution
rate delay in advance.
> The projections do not reflect any changes in the employer contribution rates that could
result due to future changes in the demographics of CCCERA's active members or
decreases in the employer contribution rates that might result from new hires going into
the PEPRA tiers.
Finally, we emphasize that projections, by their nature, are not a guarantee of future results.
The modeling projections are intended 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.
Unless otherwise noted, all of the above calculations are based on the December 31, 2013
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 John Monroe, ASA, MAAA, Enrolled Actuary.
The undersigned is a member of the American Academy of Actuaries and meets the
Qualification Standards of the American Academy of Actuaries to render the actuarial
opinion herein.
Please let us know if you have any questions.
Sincerely,
VV__1 P1&WW_
John Monroe
AW /hy
Enclosure
5336946v1/05337 002
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Employees' Retirement Association
CONTRA COSTA COUNTY
EMPLOYEES' RETIREEMENT ASSOCIATION
CONTRIBUTION RATE PACKET FOR
JULY 19 2015 THROUGH JUNE 309 2016
1355 Willow Way Suite 221 Concord CA 94520 925.521.3960 FAX: 925.646.5747 www.cccera.org
CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION
TABLE OF CONTENTS
Page Description
i Memo from Deputy Retirement CEO
1 Board of Supervisors Resolution
2 Employer Rates & Refundability Discount Factors for General
Tiers (Exhibit A)
3 Employer Rates & Refundability Discount Factors for Safety
Tiers (Exhibit B)
4 General Tier 1 Non - Enhanced Member Rates (Exhibit C)
5 Safety Tier A Non - Enhanced Member Rates (Exhibit D)
6 General Tier 1 Enhanced Member Rates (Exhibit E)
7 General Tier 3 Enhanced Member Rates (Exhibit F)
8 Safety Tier A Enhanced Member Rates (Exhibit G)
9 Safety Tier C Enhanced Member Rates (Exhibit H)
10 General Tiers 4 and 5 and Safety Tier D and E Member Rates
(Exhibit I)
11 Examples for Subvention and Employee Cost Sharing
12 Prepayment Discount Factor for 2015 -16
1355 Willow Way Suite 221 Concord CA 94520 925.521.3960 FAX: 925.646.5747 www.cccera.org
CO[_1IV
ON
COSTA
CfY
Employees' Retirement Association
l - E - 0- RANDUN/
Date: October 31, 2014
To: Interested Parties and Participating Employers
From: Kurt Schneider, Deputy Retirement Chief Executive Officer
Subject: Contribution Rates Effective July 1, 2015
At its October 8, 2014 meeting, the Retirement Board reviewed and accepted the actuary's
valuation report for the year ending December 31, 2013 and adopted the recommended
employer and employee contribution rates, which will become effective on July 1, 2015. A copy
of the December 31, 2013 Actuarial Valuation can be found on CCCERA's website at
www.cccera.org under the Actuarial Valuations link.
Enclosed are the rates to be used effective July 1, 2015 through June 30, 2016.
Please note the following:
✓ The rates are effective July 1, 2015 through June 30, 2016 and have not yet been
adopted by the County Board of Supervisors.
✓ The rates are BEFORE ANY EMPLOYER SUBVENTION of the employee contribution.
The rates quoted here are the employer required rates without taking into
consideration any employer subvention of employee contributions. A convenient
methodology for adding subvention is included for your use on page 11. Note that
subvention is not always permitted for PEPRA members.
✓ The rates are BEFORE ANY INCREASE IN EMPLOYEE RATE to pay a portion of the
employer contribution.
If an employee's rate needs to be increased to pay a portion of the employer
contribution, both employee and employer rates would need to be adjusted
accordingly. A convenient methodology for adding subvention is included for your use
on page 11.
1355 Willow Way Suite 221 Concord CA 94520 925.521.3960 FAX: 925.646.5747 www.cccera.org
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on , by the following vote
AYES:
NOES:
ABSENT:
ABSTAIN:
-----------------------------------------------------------------------
SUBJECT: Approving Contribution Rates to be charged Resolution No.
by the Contra Costa County
Employees' Retirement Association.
Pursuant to Government Code Section 31454 and on recommendation of the Board of the Contra Costa County Employees'
Retirement Association, BE IT RESOLVED that the following contribution rates are approved to be effective for the period
July 1, 2015 through June 30, 2016.
Emplover Contribution Rates for Basic and Cost -of- Living Components
and Non- refundability Discount Factors
A. For General Members (Sec. 31676.11, Sec. 31676.16 and Sec. 7522.20(a))
See attached Exhibit A
B. For Safety Members (Sec. 31664, Sec. 31664.1 and Sec. 7522.25(d))
See attached Exhibit B
11. Employee Contribution Rates for Basic and Cost -of- Living Components
See attached Exhibits C through I
The Pension Obligation Bonds (POB) issued by the County in March 1994 and April 2003, affected contribution
rates for certain County employers. The following non - County employers who participate in the Retirement
Association are referred to as "Districts".
Bethel Island Municipal Improvement District
Byron, Brentwood Knightsen Union Cemetery District
Central Contra Costa Sanitary District
Contra Costa County Employees' Retirement Association
Contra Costa Housing Authority
Contra Costa Mosquito and Vector Control District
Local Agency Formation Commission (LAFCO)
Rodeo Sanitary District
In -Home Supportive Services Authority
First 5 - Children & Families Commission
Contra Costa County Fire Protection District
East Contra Costa Fire Protection District
Moraga - Orinda Fire Protection District
Rodeo - Hercules Fire Protection District
San Ramon Valley Fire Protection District
All other departments /employers are referred to as "County" including the Superior Court of California, Contra
Costa County.
Contra Costa County Fire Protection District and Moraga - Orinda Fire Protection District issued Pension Obligation
Bonds in 2005 which affected contribution rates for these two employers. Subsequently, Con Fire has made
additional payments to CCCERA for its UAAL in 2006 and 2007.
First 5 - Children & Families Commission made a UAAL prepayment in 2013 which affected contribution rates for
that employer.
Central Contra Costa Sanitary District made a UAAL prepayment in 2013 which affected contribution rates for that
employer.
ADMINISTRATION
CONTRIBUTIONS - I -
(Resolution)
0 \Contribution rate packets (Excel & PDF)\Employee rate schedules - Spreadsheets \Efrecttve 7 -1 -2015 thru 6- 30- 2016\Resolution 7 -1 -15 rates doc
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Exhibit C
GENERAL TIER 1 - "1.67% @ 55" (Non- Enhanced)
Effective 7/1/15 - 6/30/16
Expressed as a Percentage of Monthly Payroll*
Entry Ane
Basic
COLA
Total
15
6.07%
2.85%
8.92%
16
6.15%
2.89%
9.04%
17
6.24%
2.93%
9.17%
18
6.33%
2.98%
9.31%
19
6.41%
3.01%
9.42%
20
6.50%
3.06%
9.56%
21
6.59%
3.10%
9.69%
22
6.69%
3.14%
9.83%
23
6.78%
3.19%
9.97%
24
6.87%
3.23%
10.10%
25
6.97%
3.28%
10.25%
26
7.06%
3.32%
10.38%
27
7.16%
3.37%
10.53%
28
7.26%
3.41%
10.67%
29
7.36%
3.46%
10.82%
30
7.46%
3.51%
10.97%
31
7.56%
3.55%
11.11%
32
7.67%
3.60%
11.27%
33
7.77%
3.65%
11.42%
34
7.88%
3.70%
11.58%
35
8.00%
3.76%
11.76%
36
8.11%
3.81%
11.92%
37
8.23%
3.87%
12.10%
38
8.34%
3.92%
12.26%
39
8.46%
3.98%
12.44%
40
8.59%
4.04%
12.63%
41
8.72%
4.10%
12.82%
42
8.85%
4.16%
13.01%
43
8.99%
4.23%
13.22%
44
9.13%
4.29%
13.42%
45
9.29%
4.37%
13.66%
46
9.47%
4.45%
13.92%
47
9.62%
4.52%
14.14%
48
9.80%
4.61%
14.41%
49
9.94%
4.67%
14.61%
50
10.11%
4.75%
14.86%
51
10.14%
4.77%
14.91%
52
10.20%
4.79%
14.99%
53
10.07%
4.73%
14.80%
54
9.70%
4.56%
14.26%
55
9.70%
4.56%
14.26%
56
9.70%
4.56%
14.26%
57
9.70%
4.56%
14.26%
58
9.70%
4.56%
14.26%
59
9.70%
4.56%
14.26%
60
9.70%
4.56%
14.26%
COLA Loading Factor:
47.00%
'NOTE: For members in Social Security, the rate should only be applied to monthly compensation in excess of $116.67.
The rate should only be applied to compensation up to the annual IRC 401(a)(17) compensation limit.
Member Rates 7- 1- 15.xlsx Exhibit C Page 4
Exhibit D
SAFETY TIER A - "2% @ 50" (Non- Enhanced)
Effective 7/1/15 - 6/30/16
Expressed as a Percentage of Monthly Payroll*
Entry Age
Basic
COLA
Total
15
8.90%
5.32%
14.22%
16
8.90%
5.32%
14.22%
17
8.90%
5.32%
14.22%
18
8.90%
5.32%
14.22%
19
8.90%
5.32%
14.22%
20
8.90%
5.32%
14.22%
21
8.90%
5.32%
14.22%
22
9.02%
5.40%
14.42%
23
9.15%
5.47%
14.62%
24
9.27%
5.55%
14.82%
25
9.40%
5.62%
15.02%
26
9.53%
5.70%
15.23%
27
9.66%
5.78%
15.44%
28
9.80%
5.86%
15.66%
29
9.94%
5.95%
15.89%
30
10.07%
6.02%
16.09%
31
10.21%
6.11%
16.32%
32
10.36%
6.20%
16.56%
33
10.50%
6.28%
16.78%
34
10.66%
6.38%
17.04%
35
10.81%
6.47%
17.28%
36
10.98%
6.57%
17.55%
37
11.14%
6.67%
17.81%
38
11.31%
6.77%
18.08%
39
11.50%
6.88%
18.38%
40
11.70%
7.00%
18.70%
41
11.90%
7.12%
19.02%
42
12.13%
7.26%
19.39%
43
12.38%
7.41%
19.79%
44
12.65%
7.57%
20.22%
45
12.86%
7.69%
20.55%
46
12.86%
7.69%
20.55%
47
12.87%
7.70%
20.57%
48
12.80%
7.66%
20.46%
49
12.51%
7.48%
19.99%
50
12.51%
7.48%
19.99%
51
12.51%
7.48%
19.99%
52
12.51%
7.48%
19.99%
53
12.51%
7.48%
19.99%
54
12.51%
7.48%
19.99%
55
12.51%
7.48%
19.99%
56
12.51%
7.48%
19.99%
57
12.51%
7.48%
19.99%
58
12.51%
7.48%
19.99%
59
12.51%
7.48%
19.99%
60
12.51%
7.48%
19.99%
COLA Loading Factor:
59.83%
"NOTE: The rate should be applied to all compensation up to the IRC 401(a)(17) compensation limit.
Member Rates 7 -1 -15 xlsx Exhibit D Page 5
Exhibit E
GENERAL TIER 1 - "2% @ 56" (Enhanced)
Effective 7/1/16 - 6/30/16
Expressed as a Percentage of Monthly Payroll'
Entry Aoe
Basic
COLA
Total
15
5.31%
3.05%
8.36%
16
5.39%
3.10%
8.49%
17
5.47%
3.14%
8.61%
18
5.54%
3.18%
8.72%
19
5.62%
3.23%
8.85%
20
5.70%
3.27%
8.97%
21
5.78%
3.32%
9.10%
22
5.86%
3.37%
9.23%
23
5.94%
3.41%
9.35%
24
6.02%
3.46%
9.48%
25
6.11%
3.51%
9.62%
26
6.19%
3.55%
9.74%
27
6.28%
3.61%
9.89%
28
6.37%
3.66%
10.03%
29
6.45%
3.70%
10.15%
30
6.54%
3.76%
10.30%
31
6.63%
3.81%
10.44%
32
6.72%
3.86%
10.58%
33
6.82%
3.92%
10.74%
34
6.91%
3.97%
10.88%
35
7.01%
4.03%
11.04%
36
7.10%
4.08%
11.18%
37
7.20%
4.13%
11.33%
38
7.30%
4.19%
11.49%
39
7.40%
4.25%
11.65%
40
7.51%
4.31%
11.82%
41
7.61%
4.37%
11.98%
42
7.73%
4.44%
12.17%
43
7.83%
4.50%
12.33%
44
7.95%
4.57%
12.52%
45
8.07%
4.63%
12.70%
46
8.19%
4.70%
12.89%
47
8.31%
4.77%
13.08%
48
8.44%
4.85%
13.29%
49
8.58%
4.93%
13.51%
50
8.73%
5.01%
13.74%
51
8.90%
5.11%
14.01%
52
9.04%
5.19%
14.23%
53
9.20%
5.28%
14.48%
54
9.34%
5.36%
14.70%
55
9.49%
5.45%
14.94%
56
9.52%
5.47%
14.99%
57
9.58%
5.50%
15.08%
58
9.45%
5.43%
14.88%
59
9.11%
5.23%
14.34%
60
9.11%
5.23%
14.34%
COLA Loading Factor:
57.43%
'NOTE: For members in Social Security, the rate should only be applied to monthly compensation in excess of $116.67.
The rate should only be applied to compensation up to the annual IRC 401(a)(17) compensation limit.
Member Rates 7- 1- 15.xlsx Exhibit E Page 6
Exhibit F
GENERAL TIER 3 - "2% @ 55" (Enhanced)
Effective 7/1/15 - 6/30/16
Expressed as a Percentage of Monthly Payroll*
Entry Ane
Basic
COLA
Total
15
5.31%
2.67%
7.98%
16
5.39%
2.71%
8.10%
17
5.47%
2.75%
8.22%
18
5.54%
2.79%
8.33%
19
5.62%
2.83%
8.45%
20
5.70%
2.87%
8.57%
21
5.78%
2.91%
8.69%
22
5.86%
2.95%
8.81%
23
5.94%
2.99%
8.93%
24
6.02%
3.03%
9.05%
25
6.11%
3.07%
9.18%
26
6.19%
3.11%
9.30%
27
6.28%
3.16%
9.44%
28
6.37%
3.21%
9.58%
29
6.45%
3.25%
9.70%
30
6.54%
3.29%
9.83%
31
6.63%
3.34%
9.97%
32
6.72%
3.38%
10.10%
33
6.82%
3.43%
10.25%
34
6.91%
3.48%
10.39%
35
7.01%
3.53%
10.54%
36
7.10%
3.57%
10.67%
37
7.20%
3.62%
10.82%
38
7.30%
3.67%
10.97%
39
7.40%
3.72%
11.12%
40
7.51%
3.78%
11.29%
41
7.61%
3.83%
11.44%
42
7.73%
3.89%
11.62%
43
7.83%
3.94%
11.77%
44
7.95%
4.00%
11.95%
45
8.07%
4.06%
12.13%
46
8.19%
4.12%
12.31%
47
8.31%
4.18%
12.49%
48
8.44%
4.25%
12.69%
49
8.58%
4.32%
12.90%
50
8.73%
4.39%
13.12%
51
8.90%
4.48%
13.38%
52
9.04%
4.55%
13.59%
53
9.20%
4.63%
13.83%
54
9.34%
4.70%
14.04%
55
9.49%
4.78%
14.27%
56
9.52%
4.79%
14.31%
57
9.58%
4.82%
14.40%
58
9.45%
4.76%
14.21%
59
9.11%
4.58%
13.69%
60
9.11%
4.58%
13.69%
COLA Loading Factor: 50.32%
'NOTE: For members in Social Security, the rate should only be applied to monthly compensation in excess of $116.67.
The rate should only be applied to compensation up to the annual IRC 401(a)(17) compensation limit.
Member Rates 7- 1- 15.xlsx Exhibit F Page 7
Exhibit G
SAFETY TIER A - "3% @ 50" (Enhanced)
Effective 7/1/15 - 6/30/16
Expressed as a Percentage of Monthly Payroll*
Entry Me
Basic
COLA
Total
15
8.90%
6.61%
15.51%
16
8.90%
6.61%
15.51%
17
8.90%
6.61%
15.51%
18
8.90%
6.61%
15.51%
19
8.90%
6.61%
15.51%
20
8.90%
6.61%
15.51%
21
8.90%
6.61%
15.51%
22
9.02%
6.70%
15.72%
23
9.15%
6.80%
15.95%
24
9.27%
6.89%
16.16%
25
9.40%
6.99%
16.39%
26
9.53%
7.08%
16.61%
27
9.66%
7.18%
16.84%
28
9.80%
7.28%
17.08%
29
9.94%
7.39%
17.33%
30
10.07%
7.48%
17.55%
31
10.21%
7.59%
17.80%
32
10.36%
7.70%
18.06%
33
10.50%
7.80%
18.30%
34
10.66%
7.92%
18.58%
35
10.81%
8.03%
18.84%
36
10.98%
8.16%
19.14%
37
11.14%
8.28%
19.42%
38
11.31%
8.41%
19.72%
39
11.50%
8.55%
20.05%
40
11.70%
8.70%
20.40%
41
11.90%
8.84%
20.74%
42
12.13%
9.02%
21.15%
43
12.38%
9.20%
21.58%
44
12.65%
9.40%
22.05%
45
12.86%
9.56%
22.42%
46
12.86%
9.56%
22.42%
47
12.87%
9.56%
22.43%
48
12.80%
9.51%
22.31%
49
12.51%
9.30%
21.81%
50
12.51%
9.30%
21.81%
51
12.51%
9.30%
21.81%
52
12.51%
9.30%
21.81%
53
12.51%
9.30%
21.81%
54
12.51%
9.30%
21.81%
55
12.51%
9.30%
21.81%
56
12.51%
9.30%
21.81%
57
12.51%
9.30%
21.81%
58
12.51%
9.30%
21.81%
59
12.51%
9.30%
21.81%
60
12.51%
9.30%
21.81%
COLA Loading Factor:
74.32%
'NOTE: The rate should be applied to all compensation up to the IRC 401(a)(17) compensation limit.
Member Rates 7- 1- 15.xlsx Exhibit G Page 8
Exhibit H
SAFETY TIER C - "3% @ 50" (Enhanced)
Effective 7/1/15 - 6/30/16
Expressed as a Percentage of Monthly Payroll*
Entry Aae
Basic
COLA
Total
15
8.50%
3.55%
12.05%
16
8.50%
3.55%
12.05%
17
8.50%
3.55%
12.05%
18
8.50%
3.55%
12.05%
19
8.50%
3.55%
12.05%
20
8.50%
3.55%
12.05%
21
8.50%
3.55%
12.05%
22
8.62%
3.60%
12.22%
23
8.74%
3.65%
12.39%
24
8.86%
3.70%
12.56%
25
8.98%
3.75%
12.73%
26
9.11%
3.80%
12.91%
27
9.23%
3.85%
13.08%
28
9.36%
3.91%
13.27%
29
9.49%
3.96%
13.45%
30
9.62%
4.01%
13.63%
31
9.76%
4.07%
13.83%
32
9.90%
4.13%
14.03%
33
10.04%
4.19%
14.23%
34
10.18%
4.25%
14.43%
35
10.33%
4.31%
14.64%
36
10.49%
4.38%
14.87%
37
10.64%
4.44%
15.08%
38
10.81%
4.51%
15.32%
39
10.99%
4.59%
15.58%
40
11.17%
4.66%
15.83%
41
11.38%
4.75%
16.13%
42
11.57%
4.83%
16.40%
43
11.76%
4.91%
16.67%
44
11.87%
4.95%
16.82%
45
11.89%
4.96%
16.85%
46
11.80%
4.92%
16.72%
47
11.51%
4.80%
16.31%
48
11.90%
4.97%
16.87%
49
12.51%
5.22%
17.73%
50
12.51%
5.22%
17.73%
51
12.51%
5.22%
17.73%
52
12.51%
5.22%
17.73%
53
12.51%
5.22%
17.73%
54
12.51%
5.22%
17.73%
55
12.51%
5.22%
17.73%
56
12.51%
5.22%
17.73%
57
12.51%
5.22%
17.73%
58
12.51%
5.22%
17.73%
59
12.51%
5.22%
17.73%
60
12.51%
5.22%
17.73%
COLA Loading Factor: 41.73%
*NOTE: The rate should be applied to all compensation up to the IRC 401(a)(17) compensation limit.
Member Rates 7- 1- 15.xlsx Exhibit H Page 9
Exhibit I
PEPRA Tiers
Membership Date on or after January 1, 2013
Effective 7/1/15 - 6/30/16
Expressed as a Percentage of Monthly Payroll*
General Tiers
Basic
COLA
Total
Cost Group #1 - PEPRA Tier 4 (3% COLA)
8.68%
3.27%
11.95%
Cost Group #2 - PEPRA Tier 5 (2% COLA)
6.58%
1.52%
8.10%
Cost Group #2 - PEPRA Tier 5 (3 %/4% COLA)
7.74%
2.79%
10.53%
Cost Group #3 - PEPRA Tier 4 (3% COLA)
9.20%
3.42%
12.62%
Cost Group #4 - PEPRA Tier 4 (3% COLA)
6.55%
2.45%
9.00%
Cost Group #5 - PEPRA Tier 4 (2% COLA)
8.25%
1.85%
10.10%
Cost Group #5 - PEPRA Tier 4 (3% COLA)
10.15%
3.83%
13.98%
Cost Group #6 - PEPRA Tier 4 (3% COLA)
8.25%
3.01%
11.26%
Safety Tiers
Basic
COLA
Total
Cost Group #7 - PEPRA Tier D
15.14%
6.36%
21.50%
Cost Group #8 - PEPRA Tier D
14.28%
6.24%
20.52%
Cost Group #9 - PEPRA Tier E
13.64%
3.55%
17.19%
Cost Group #10 - PEPRA Tier D
12.98%
5.73%
18.71%
Cost Group #11 - PEPRA Tier D
12.84%
5.70%
18.54%
Cost Group #12 - PEPRA Tier D
12.99%
5.77%
18.76%
*NOTE: The rate should be applied to all compensation (whether or not in Social Security) up to the
applicable annual Gov. Code 7522.10(d) compensation limit.
Member Rates 7- 1- 15.xlsx Exhibit I Page 10
CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION
SUBVENTION
All rates are shown as a percent of payroll.
Employee contribution rates vary depending upon their tier and age at entry. To compute the exact
subvention percent for each employee, do the following:
Employee rate — Decrease the employee's rate by the subvention percent (i.e. 25 %, 50 %, etc.).
Employer rate — Increase the employer's rate by a percent of the employee's decrease using the
applicable refundability factor (found on Exhibits A and B):
EXAMPLE FOR COST GROUP #3 LEGACY MEMBERS:
If the subvention percent is 25 %, and
the employee's rate is 6.00 %,
Employee rates should be decreased by 1.50% (25% x 6.00 %)
The employer rate should be increased by 1.4372% (1.50% x 0.9581)
Please note that for PEPRA members, subvention is generally not permitted. The standard under Gov.
Code §7522.30(a) is that employees pay at least 50 percent of normal costs and that employers not pay
any of the required employee contribution, but there are some exceptions. Gov. Code §7522.30(f) allows
the terms (regarding the employee's required contribution) of a contract, including a memorandum of
understanding, that is in effect on January 1, 2013, to continue through the length of a contract. This
means that it is possible that an employer will subvent a portion of a PEPRA member's required
contribution until the expiration date of the current contract, so long as it has been determined that the
contract has been impaired.
CAUTION — these rates are for employer subvention of up to one -half the member contribution under
Gov. Code §31581.1, NOT employer pick -up of employee contribution rates. When an employer
subvents, the contribution subvented is not placed in the member's account and is therefore not available
to the member as a refund. For this reason, the employer pays the contribution at a discount (i.e.
"Refundability Factor ").
Employer pick -ups of employee contributions are those made under Gov. Code §31581.2 and Internal
Revenue Code §414 (h)(2) for the sole purpose of deferring income tax. These contributions are added to
the member's account, are available to the member as a refund and are considered by CCCERA as part of
the member's compensation for retirement purposes.
EMPLOYEE PAYMENT OF EMPLOYER COST
There are several reasons why the attached contribution rates may need to be adjusted to increase the
employee portion including the following:
Gov. Code §31631 allows for members to pay all or part of the employer contributions.
Gov. Code §31639.95 allows for Safety members to pay a portion of the employer cost for the "3% at 50"
enhanced benefit.
Gov. Code §7522.30(c) requires that an employee's contribution rate be at least equal to that of similarly
situated employees.
Page 1 I