To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
Vote Requirement: 4/5th
SUBJECT:
title
Approve Prepayment of the Fiscal Year 2023-24 CalPERS Unfunded Accrued Liability Contribution (4/5th Vote Required)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the prepayment of the Fiscal Year (FY) 2023-24 CalPERS Unfunded Accrued Liability (UAL) contribution in the amount of $29,122,849 (4/5th Vote Required).
Body
SOURCE OF FUNDING:
Fund 3250 - Retirement-County Share, All county funds
DISCUSSION:
The California Public Employees' Retirement System (CalPERS), as the pension plan administrator of the County of Humboldt and other California government agencies pension plans, establishes actuarial assumptions for all pension plans under their administration. The actuarial reports for the County of Humboldt for FY 2023-24 are attached (Attachment 1 and 2). These reports determine the Normal cost and the UAL cost that will be paid in the upcoming year.
Per the Pension Funding Policy, revised by the Board on April 20, 2021, in the case that CalPERS provides an incentive or discount for prepayment of the minimum required contribution to remit payment in full at the beginning of the year as opposed to monthly payments:
a. The CAO shall prepare a financial analysis on an annual basis when a financial incentive is offered to make a prepayment of the UAL contribution to determine where this is in the best interest of the County.
i. The analysis should take into account the savings and cash flow impact from remitting the pension contribution in advance compared to any costs of borrowing or financing.
ii. This recommendation shall be submitted as part of the County's recommended budget.
The CAO did not include this analysis and recommendation as part of the budget process; therefore, staff seek approval today to remit the prepayment by the deadline of July 31, 2023. The savings offered in FY 20...
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