Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael Callagy, County Manager
Subject: Adoption of Employer and Member Retirement Contribution Rates for FY 2022-2023.
RECOMMENDATION:
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Adopt a resolution setting employer and member contribution rates for the San Mateo County Employees’ Retirement Association for all members and employers for fiscal year 2022-2023 in accordance with 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. 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 2022-2023 for all employers for all plans. In addition, it will set the member contribution rates for all plans.
DISCUSSION:
The Board of Retirement and the SamCERA Chief Executive Officer recommend the contribution rates as set forth in 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 2013 Memorandum of Understanding (MOU) regarding retirement system funding, the County may pay more than the Statutory Contribution Rate (SCR) to address the unfunded liability. SamCERA places these payments in the County Supplementary Contribution Account (CSCA). The County's SCR would have increased to 42.78% of payroll for FY 2022-2023, however, when the value of the County's CSCA account is factored in the calculation, the County's contribution rate is reduced to 38.51% of payroll. Since the actual computed blended fixed rate is higher than the MOU required 37.14%, no additional funds are necessary to comply with that requirement.
The resolution has been reviewed and approved by County Counsel as to form and content.
FISCAL IMPACT:
The County’s budgeted retirement contributions will approximate $257.1 million in FY 2022-2023. This figure includes the County statutory contribution of $241.9 million, statutory contributions from non-County funds totaling $5.1 million (First 5, SamCERA, Local Agency Formation Commission, and County Library), and $10 million from the General Fund for the accelerated pay down of the unfunded liability pursuant to the MOU.