To: Board of Supervisors
From: County Administrative Office
Agenda Section: Time Certain Matter
SUBJECT:
title
11:00 a.m. - Adoption of Pension Funding Policy
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Receive the presentation on the Pension Funding Policy;
2. Discuss and propose desired changes to policy;
3. Approve the Pension Funding Policy to allow an established salary percentage deduction to be placed in the Internal Pension Management Account, (Fund 3249 - Employer PARS Contributions), and to make payments from said trust to the Public Agency Retirement Services (PARS) Section 115 Pension Trust; and
4. Determine whether your Board wishes to pursue a short- or long-term funding strategy related to the Section 115 Pension Trust, and direct the County Administrative Officer (CAO) to return to the Board with Target Contribution Rates and appropriate Supplemental Pension Charges.
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SOURCE OF FUNDING:
All county funds, Pension Management Trust Fund (3249)
DISCUSSION:
Over the last 20 years, the county's annual contributions towards pension costs have grown exponentially, and without a strategy going forward these costs will threaten the county's ability to provide many vital local services. The Pension Funding Policy before your Board today aims to allow the county to use sustainable methods to fully fund the county's more than $331 million unfunded liability, while maximizing state and federal contributions in order to preserve and protect local programs.
Since fiscal year (FY) 2010-11, the county's annual required pension contribution has grown from 18% of total payroll costs for miscellaneous employees (non-law enforcement) to more than 32%, or more than $34 million for FY 2021-22 alone. For safety employees (law enforcement) the county has seen even sharper increases. The county's required contribution a decade ago for safety employees was equivalent to 21% of payroll, and for FY 2021-22 it will amount ...
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