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