HomeMy WebLinkAbout07.a. Receive Information On Contra Costa County Employee's Retirement Association's (CCCERA) Valuation As Of December 31, 2016Page 1 of 2
Item 7.a.
Central Contra Costa Sanitary District
August 21, 2017
TO: ADMINISTRATION COMMITTEE
FROM: TODD SMITHEY, FINANCE ADMINISTRATOR
REVIEWED BY: THEA VASSALLO, FINANCE MANAGER
PHIL LEI BER, DIRECTOR OF FINANCE &ADMINISTRATION
SUBJECT: RECEIVE INFORMATION ON CONTRA COSTA COUNTY EMPLOYEE'S
RETI REMENT ASSOCIATI ON'S (CCCERA) VALUATI ON AS OF
DECEMBER 31, 2016
On Wednesday, August 9, 2017, the Board of Retirement for the Contra Costa County Employees'
Retirement Association (CCCERA) received the system's Actuarial Valuation as of December 31, 2016.
The valuation analyzes that year's actual experience and then uses that data to establish contribution rates
for Fiscal Year 2018-19.
CCCERA
The overall investment return for CCCERA for calendar year 2016 was 7.1 %, which is almost exactly
CCCERA's assumed earnings rate of 7.0%. The system's overall funded status increased from 84.5% to
86.5% (on a valuation basis). The unfunded actuarial accrued liability (URAL) decreased from $1.3
billion to $1.2 billion. This net decrease was due to investment returns and contributions both being
greater than expected, a mortality gain on retirees and a retirement gain on actives, all of which were offset
to some degree by higher-than-expected salary increases for actives and cost -of -living adjustments for
retirees. The sum of this activity resulted in the average employer rate dropping from 39.23% of payroll to
38.08%, and the average employee rate dropping from 12.09% to 12.08%.
Central San
As for Central San, the valuation funded status increased from 75.3% to 78.1 %, the UAAL dropped from
$88.2 million to $81.6 million, the blended employer contribution rate dropped from 52.90% to 51.06%,
and the employee contribution rate dropped from 11.65% to 11.56% (Contribution rates are a weighted
average of Legacy and Public Employees' Pension Reform Act of 2013 (PEPRA) rates.)
Staff will address any questions on this matter at the Administration Committee meeting.
August 21, 2017 Regular Committee Meeting Agenda Packet - Page 32 of 119
Page 2 of 2
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct Long -Range Financial Planning, Strategy 2 - Manage Costs
August 21, 2017 Regular Committee Meeting Agenda Packet - Page 33 of 119