Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: Adoption of Employer and Member Retirement Contribution Rates for FY 2025-2026.
RECOMMENDATION:
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Adopt a resolution setting employer and member contribution rates and rates of interest for the San Mateo County Employees’ Retirement Association (SamCERA) for all members and employers for fiscal year 2025-2026 in accordance with the schedules set forth in Attachment A and Government Code Sections 31453 and 31454.
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BACKGROUND:
Government Code Section 31453 requires the Board of Retirement to conduct periodic actuarial valuations of the retirement system and to recommend contribution rates to the Board of Supervisors at least 45 days prior to the beginning of the succeeding fiscal year. Section 31454 requires the Board of Supervisors, not later than 90 days after the beginning of the immediately succeeding fiscal year, to adjust the rates of contributions of all members and all participating employers in accordance with the recommendations of the Board of Retirement.
Adoption of the attached resolution will set employer contribution rates for FY 2025-2026 for all employers for all plans under the San Mateo County Employees’ Retirement Association (“SamCERA”). In addition, it will set the member contribution rates for all such plans.
DISCUSSION:
The Board of Retirement and the SamCERA Chief Executive Officer recommend the contribution rates as set forth in the schedules submitted with this memorandum as Attachment A to the attached resolution. The rates have been previously communicated to staff of the County, Court and the San Mateo County Mosquito and Vector Control District.
Pursuant to the January 2025 Memorandum of Understanding (MOU) regarding retirement system funding, authorized by this Board in Resolution No.808800, the County may make supplemental contributions in excess of the Statutory Contribution Rate (SCR) to accelerate the reduction of unfunded actuarial accrued liability, among other benefits. SamCERA places these deposits in the County Supplementary Contribution Account (CSCA). In the absence of the supplemental contributions deposited to the CSCA, the County's SCR would have increased to 30.85% of payroll for FY 2025-2026, however, when the value of the County's CSCA account is factored in the calculation, the County's contribution rate is reduced further by 3.85% to 27% of payroll.
The resolution has been reviewed and approved by the County Attorney as to form.
EQUITY IMPACT:
The adoption of the employer and member retirement contribution rates will positively impact the County’s ability to continue to provide retirement benefits to all of its employees so that retirees will be able to age in place gracefully.
FISCAL IMPACT:
The County’s budgeted retirement contributions will approximate $219 million in FY 2025-2026. This figure includes the County’s estimated statutory contribution of $204.6 million, statutory contributions from non-County funds totaling $4.9 million (First 5, SamCERA, Local Agency Formation Commission (LAFCo), and County Library), and $9.5 million from the General Fund to meet the MOU requirement of 27% of payroll.