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HomeMy WebLinkAbout07.a.2) Contra Costa County Employees' Retirement Assn. Update'Jk a - 0 21) Central Contra Costa Sanitary District September 2, 2010 TO: HONORABLE BOARD OF DIRECTORS FROM: JAMES M. KELLY, GENERAL MANAGER RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION e SUBJECT: CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION (CCCERA) UPDATE The District recently received two letters from the CCCERA Chief Executive Officer, Marilyn Leedom. The first, attachment 1, addresses their intent to provide Educational Seminars as a response to the Grand Jury's recent report. They provide five subject areas and are asking the District to provide additional topics of importance to the District and Board. Staff is seeking Board input to ensure the District's interests are met. In addition, we have been notified, see attachment 2, that on September 8, 2010, the CCCERA Actuary, Segal Company, will present their proposal regarding de- pooling at the employer level. The report will be made available at the meeting and staff will be in attendance. We have also requested Mr. Bartel or a member of his staff to attend. The report is approximately one month delayed due to additional records, approximately 1,500, that were not previously identified but required CCCERA staff auditing. Staff will be seeking clarification from the CCCERA Board regarding the availability of the data from auditing, how long we will have to evaluate Segal's work, and when the District will be required to provide a response. Staff will provide the Board with a copy of the September 8, 2010 CCCERA Board Meeting Agenda as soon as we receive it. Staff will also report to the Board on the September 8 th CCCERA Board meeting at the September 16 Board meeting. i Of Date: August 25, 2010 To: Employers, Employee Representatives, Other Interested Parties From: Marilyn Leedom, Retirement Chief Executive Officer Subject: Board Meeting, September 8, 2010 . a - ""1 ..TY;:.• - �y {.. In the next week, you will receive the agenda for the Retirement Board meeting on September 8, 2010. Of particular importance, The Segal Company will present the results of the Depooling Study. You're invited to attend this meeting. At CCCERA's Board of Retirement meeting on October 14, 2009 there was discussion on the current methodology used for pooling assets and liabilities when calculating unfunded liabilities and contribution rates for CCCERA members and employers. At that meeting the Board of Retirement made a motion to move forward towards depooling by separating CCCERA's experience and assets (AAL, LIAAL and normal cost) by each employer (with 50 or more employees) separately, commencing with December 31, 2002 valuation and going forward from that date. The Segal Company, CCCERA's actuary, provided additional information regarding this issue to the Board of Retirement at the January 13, 2010, March 10, 2010 and the May 17, 2010 meetings. At the September 8, 2010 Board meeting The Segal Company will present the results of the Depooling Study. As previously discussed by the Board, please be assured that no final contribution rates based on depooling will be adopted by the Board until the employers are given a period of time to review the actuarial data and methodology used to create the contribution rates. We invite you to attend this meeting, ask questions and learn more about this critical subject. -,1. c CONTRA COSTA COUNTY M IEMPLOYEES RETIREMENT ASSOCIATION t „1 1355 Willow Way, Suite 221, Concord, CA 94520 -5728 Telephone: (925) 646 -5741, Fax: (925) 646 -5747 To: All District Employers and Management Staff From: Marilyn Leedom, Retirement Chief Executive Officer, CCCERA� Date: August 12, 2010 Re: Educational Seminars The Board of CCCERA is in the planning stages for a series of workshops focusing on retirement issues from the employer viewpoint. These seminars will be held in the Retirement Board room on an annual basis, depending on interest. We encourage interactive participation so the Boards of our participating employers can share their experience and find answers to any specific concerns. All interested parties are invited to attend. We are considering several subjects for discussion: 1) The basics of CCCERA retirement. How does the defined benefit plan work? 2) Actuarial information and studies. How do actuarial assumptions and experience impact contribution rates? 3) What are the current legal issues related to retirement systems? 4) What are the responsibilities of the Retirement Board as they relate to Employers? 5) How are the trust funds invested and managed? In addition, CCCERA would like to know the topics important to employers as we plan our, informational meetings. Our goal is to provide the information you need to navigate the complexities of the pension system. To help us refine our presentations, please take a few minutes to let us know the subjects you would like covered. For example, what retirement issues are important to your agency? Does your board need more information on depooling and its effect on agencies? Does your agency understand the makeup of contribution rates payable to CCCERA? Please note, this education session will be for questions and information needed by the District Boards. Your input into this process is crucial. Please send us your feedback and comments on this issue, complete with contact information to: Marilyn Leedom Chief Executive Officer 1355 Willow Way #221 Concord, CA 94520 Once we have gathered information and compiled our format, we will notify all employers in advance of our first presentation by email. .