DATE:
February 8, 2022
05
TO:
Board of Supervisors
SUBJECT
Title
EMPLOYER AND EMPLOYEE RETIREMENT CONTRIBUTION RATES FOR FISCAL YEAR 2022-23 (DISTRICTS: ALL)
Body
OVERVIEW
California Government Code Section 31454 requires the Board of Supervisors to adjust the rates of the San Diego County employer and employee retirement contributions in accordance with the recommendations of the Board of Retirement of the San Diego County Employees Retirement Association (SDCERA). The Board of Retirement (Retirement Board) approved the employer and employee contribution rates recommended by its actuary, The Segal Group, Inc., for Fiscal Year (FY) 2022-23 on November 18, 2021.
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 2022-23 is 44.81%, reflecting a slight decrease from the FY 2021-22 aggregate employer rate of 45.82%. Historically, there have been minor increases in employer and member contribution rates, however, this decrease primarily is due to an investment return that was greater (after "smoothing") than the Retirement Fund's 7.00% investment return assumption and lower-than-expected cost-of-living adjustments (COLA), balanced by the effect of amortizing the prior year's unfunded actuarial accrued liability (UAAL) over a smaller than expected total payroll.
The average member rate as a percentage of payroll decreased from 11.84% to 11.58%. This decrease is primarily due to changes in member demographics amongst the tiers.
RECOMMENDATION
SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION BOARD OF RETIREMENT and CHIEF ADMINISTRATIVE OFFICER
Adopt the San Diego County employer and employee retirement contribution rates for Fiscal Year 2022-23 as recommended by the SDCERA actuary and approved by the Retirement Board on November 18, 2021.
EQUITY IMPACT STATEMENT
Approval of this recommendation will fully fund the County's r...
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