HomeMy WebLinkAbout4.b. CCCERA Valuation 2017 Highlights Page 1 of 2
Item 4.b.
,OfICCE TR L SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT Central Contra Costa Sanitary District
September 18, 2018
TO: ADMINISTRATION COMMITTEE
FROM: TODD SMITHEY, FINANCE ADMINISTRATOR
REVIEWED BY: PHIL LEI BER, DIRECTOR OF FINANCE &ADMI NI STRATI ON
SUBJECT: RECEIVE INFORMATION ON CONTRA COSTA COUNTY EMPLOYEES'
RETI REMENT ASSOCIATI ON'S (CCCERA)VALUATI ON AS OF
DECEMBER 31, 2017
On Wednesday, August 22, 2018, the Board of Retirement for the Contra Costa County Employees'
Retirement Association (CCCERA) received the system's Actuarial Valuation as of December 31, 2017.
The valuation analyzes that year's actual experience and then uses that data to establish contribution rates
for Fiscal Year 2019-20.
CCCERA
The overall investment return for CCCERA for calendar year 2017 was 13.3%, which is greater than
CCCERA's assumed earnings rate of 7.0%. The system's overall funded status increased from 86.5% to
88.5% on a valuation value basis, and from 84.6% to 90.8% on a market value basis. The unfunded
actuarial accrued liability(UAAL)decreased from $1.2 billion (B)to $1.1 B on a valuation value basis, and
from $1.413 to $0.813 on a market value basis. This net decrease was due to investment returns and
contributions both being greater than expected 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, and a mortality loss on retirees. The sum of this activity resulted in the average employer rate
dropping from 38.08% of payroll to 36.08%, and the average employee rate dropping from 12.08% to
12.03%.
Central San
As for Central San, the valuation value funded status increased from 78.1% to 81.1%, the UAAL dropped
from $81.6 million (M)to $74.1 M, the blended employer contribution rate dropped from 51.06% to
49.57%, and the employee contribution rate dropped from 11.56% to 11.45% (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.
September 18, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 35 of 43
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
September 18, 2018 Regular ADMIN Committee Meeting Agenda Packet- Page 36 of 43