HomeMy WebLinkAbout08.a.1) Update on most recent CCCERA mtgCentral Contra Costa Sanitary District
December 2, 2010
TO: HONORABLE BOARD OF DIRECTORS
VIA: JAMES M. KELLY, GENERAL MANAGER
FROM: RANDALL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION N' ""'
SUBJECT: CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT
ASSOCIATION (CCCERA) 11/23/2010 BOARD MEETING
At the November 23, 2010 CCCERA Board meeting the District's request for additional
information, item 44 on the agenda, was discussed. The CCCERA Board first received
• a presentation from Mr. Paul Angelo, CCCERA's Actuary from Segal Company,
addressing the need and use of the District's request for data and information as well
• as a cost estimate of approximately $10,000 - $15,000 to produce the data. The
District was then allowed to speak to our need. The CCCERA Board voted to direct
staff and Segal Company staff to provide the data and information and the cost would
be paid for by CCCERA. The San Ramon Valley Fire District (SRVFD) had also made
a formal request for the data. As the Board knows, Mr. Bartel was contracted by the
District, the SRVFD and First Five — Children & Families Commission to review the data
to ensure' appropriate methodology and assumptions were used in de- pooling
calculations.
Mr. Bartel, on behalf of the District, should be receiving the data by December 10,
2010. We are hopeful that Mr. Bartel can complete his review and evaluation in time
for staff to report the results to the Board at the December 16, 2010 District Board
meeting.
Currently, as reported by Mr. Bartel, the CCCERA methodology, assumptions and
calculations appear to be fair and reasonable to the District. You will recall that his
evaluation was through December 31, 2008. We are anticipating that the data and
information we receive in December will be consistent with past calculations,
maintaining a fair and reasonable approach to de- pooling for the District. Staff will
report to the Board Mr. Bartel's final review and findings at the December 16"' meeting.
• Assuming that we will validate the de- pooling calculations, it leaves the Board with one
• issue to resolve; does the District Board want to oppose the retroactive implementation
of de- pooling from December 31, 2002 and does the District have a legal standing to
object. Mr, Bartel has calculated that $14.5 million of the $20 million Unfunded
f�
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Actuarial Accrued Liability (UAAL) is due to implementing de- pooling as of 12/31/2002 =.
versus implementing on 12/31/2009. The CCCERA Board voted on October 14, 2009
to de -pool by employer. Staff has requested District Counsel, Mr. Kent Alm, to assess
the ability for the District to legally oppose retroactive implementation of de- pooling by
the CCCERA Board.
The Segal Company staff reported that they would respond to the request for
information regarding a phase -in of employer contribution rates due to the financial
impact of de- pooling to some of the employers in time for a preliminary discussion at
the December 8, 2010 CCCERA Board meeting. Staff will be at the meeting to
understand the proposed options and to ensure that the District's best interests are
heard.
Staff will be ready to answer any questions the Board may have at the December 2 "
meeting.
cc: Daniel Clinton, District Labor Attorney
Kenton Alm, District Counsel •
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