DATE:
February 10, 2026
16
TO:
Board of Supervisors
SUBJECT
Title
EMPLOYER AND EMPLOYEE RETIREMENT CONTRIBUTION RATES FOR FISCAL YEAR 2026-27 (DISTRICTS: ALL)
Body
OVERVIEW
California Government Code Section 31454 requires the Board of Supervisors to adjust the rates of San Diego County's employer and employee retirement contributions based on recommendations of the San Diego County Employees Retirement Association (SDCERA) Board of Trustees (Retirement Board). The Retirement Board approved the employer and employee contribution rates recommended by its actuary, The Segal Group, Inc., for Fiscal Year (FY) 2026-27 on November 20, 2025.
While the employer contribution rates are different for Safety and General members, the aggregate employer rate (or weighted average rate) approved by the Retirement Board for FY 2026-27 is 38.00% of payroll, which is a decrease from the FY 2025-26 aggregate employer rate of 48.16%, as anticipated in our long term financial planning. The decrease in the employer contribution rate results most significantly from the effect of fully amortizing some of the retirement fund's Unfunded Actuarial Accrued Liability (UAAL) layers as well as from a larger than expected projected total payroll and changes in actuarial assumptions adopted by the Retirement Board, notably changes in demographic assumptions that effectively reduce cost.
The average employee (i.e. member) rate as a percentage of payroll decreased from 11.58% to 11.26%, primarily due to changes in active member demographics among retirement tiers and changes in actuarial assumptions.
Approval of today's recommendation would adopt employer and employee retirement contribution rates for inclusion in the Chief Administrative Officer Recommended Operational Plan (i.e. budget) for FY 2026-27.
RECOMMENDATION
CHIEF ADMINISTRATIVE OFFICER
Adopt the San Diego County employer and employee retirement contribution rates for Fiscal Year 2026-27 as recommended by the San Diego...
Click here for full text