July 8,2008. On an average rate basis, the combined General and Safety member employee contribution rates increased from 8.63% to 8.64%.

Transcription

1 ALAMEDA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION th Street, Suite 1000, Oakland, CA / / fax: 510/ The Honorable Board of Supervisors Administration Building 1221 Oak Street, Room 536 Oakland, CA July 8,2008 Agenda /July 22, 2008 RE: ADOPTION OF NEW RETIREMENT SYSTEM CONTRIBUTION RATES Dear Board Members: RECOMMENDATION That the Board of Supervisors adjusts the employer and employee contribution rates as recommended by the Board of Retirement effective not later than 90 days following commencement of fiscal year , per California Government Code section SUMMARY The Board of Retirement of the Alameda County Employees' Retirement Association (ACERA) is required by law to perform an actuarial valuation of the retirement system and establish appropriate assumptions and contribution rates to the system to ensure that all current and future liabilities can be paid. The Board of Retirement retained The Segal Company, an enrolled actuarial consultant, to perform such a valuation. The results of the valuation were adopted by the Board of Retirement at its regular meeting on May 22, The aggregate Employer rate will decrease from % to 14.88% of payroll. The detailed Employee, Employer, and District rates are set forth in the attached Charts. The County of Alameda ("County") received a reimbursement of $6.3 million for the implicit retiree health care subsidy paid by the County for 2005 and The $6.3 million in credit has been amortized over 26 years. Effective with the December 31, 2006 valuation, the employer rates for ACMC, Superior Court and First 5 are higher than the County to reflect that only the County received a reimbursement for the implicit retiree health care subsidy. A similar rate adjustment has been made for a reimbursement of $3.1 million paid by the County for On an average rate basis, the combined General and Safety member employee contribution rates increased from 8.63% to 8.64%. The ratio of assets to liabilities increased from 85.5% to 89.2% during the year, primarily as a result of favorable return from investments and lower than expected salary increases during 2007.

2 Board of Supervisors Letter re Adoption of Contribution Rates Page 2 The December 31, 2007 Actuarial Valuation Report included the review of economic assumptions, which are inflation, investment return, merit and longevity salary increases, and terminal pay assumptions. As a result of this review, the ACERA Board maintained the interest assumption rate at 8.0% and kept the annual inflation assumption at 3.75%. The across-the-board salary increase remained constant at 0.25% plus merit and longevity increases. DISCUSSION/FINDINGS Section 7504 of the Government Code requires that all state and local public retirement systems secure the services of an enrolled actuary and perform a complete valuation of the system at least once every three years. Section of the Government Code requires the Board of Retirement to recommend to the Board of Supervisors any appropriate changes in the rates of contributions of the employer or member. Contribution levels are recommended by the Actuary and adopted by the Board of Retirement each year. RESOLUTION TO ADOPT NEW RETIREMENT RATES Section of the Government Code states: "The Board of Supervisors shall, not later than ninety days after the beginning of the immediately succeeding fiscal year, adjust the rates of interest, the rates of contributions of members, and county and district appropriations in accordance with the recommendation of the Board, but shall not fix them in amounts as to reduce the individual benefits provided in this chapter." The Actuarial Valuation and Review Report was presented and discussed during a public meeting of the Board of Retirement held May 22, The adjustment of the rates for fiscal year must, therefore, occur effective pay period ending September 6, 2008 for the pay date of September 19, FINANCING Employee contributions are deducted from the employees' salary and therefore, are not a direct charge against the County, except insofar as the salaries relate to a direct charge against the County Fund. Employer contributions for County employees are an obligation of the County and, therefore, are a direct charge against the County Fund. Very truly yoars, ~7~ Charles F. Conrad Chief Executive Officer Attachments CEW/bss

3 Board of Supervisors Letter re Adoption of Contribution Rates Page 3 cc: Alameda County Susan Muranishi, County Administrator, Alameda County Patrick O'Connell, Auditor-Controller, Alameda County Connie Land, Assistant Controller, Alameda County Richard E. Winnie, County Counsel, Alameda County Crystal Hishida-Graff, Clerk, Board of Supervisors, Alameda County Alameda County Medical Center (ACMC) Wright Lassiter, III, Chief Executive Officer, ACMC Jeanette Louden, Chief Human Resources Officer, ACMC Geoff Dottery, Chief Financial Officer, ACMC Dennis Manzo, Administrative Financial Services Manager, ACMC Carol Whyte, Controller, ACMC Marylou Lestro Mayo, Payroll Manager, ACMC First 5-Alameda County Children and Families Commission (First 5) Mark Friedman, Chief Executive Officer, First 5 Rebecca Gebhart, Director, Finance &Administration, First 5 Elen Fuentes, Payroll Manager, First 5 Janet Basta, Human Resources Manager, First 5 Housing Authority of Alameda County (Housing Authority) Christine Gouig, Executive Director, Housing Authority Thomas Makin, Deputy Director of Operations, Housing Authority Cathy Leoncio, Finance Manager, Housing Authority Lisa Gatchallan, Payroll Clerk, Housing Authority Livermore Area Park and Recreation District (LARPD) Tim Barry, General Manager, LARPD Lora Cohen, Fiscal Supervisor, LARPD Carolyn Ulrich, Human Resources Manager, LARPD Sally Swanson, Payroll Manager, LARPD Alameda County Office of Education (Office of Education) Sheila Jordan, Superintendent of Schools, Office of Education Bert Padua, Director of Internal Business Services, Office of Education Lynne Van Landingham, Director of Human Resources, Office of Education Maria Pascual, Payroll Manager, Office of Education Vickie Chang, Controller of Internal Business Services, Office of Education Superior Court of California. Alameda County (Superior Court) Patricia Sweeten, Executive Officer, Superior Court Matthew McDonald, Finance Director, Superior Court Jean Shapiro, Payroll Manager, Superior Court All Other Alameda County Retired Employees Organization (ACRE) Retired Employees of Alameda County Organization (REAC) Andy Yeung, The Segal Company Members of The Board of Retirement ACERA Administration Department ACERA Accounting Department ACERA Benefits Department ACERA Legal Department ACERA PRISM Department

4 BOARD OF RETIREMENT ALAMEDA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION RESOLUTION NUMBER Adoption of Actuarial Valuation of ACERA for Fiscal Year WHEREAS, Government Code section requires actuarial valuations, conducted under the supervision of an actuary, that cover the mortality, service, and compensation experience of the members and beneficiaries and evaluate the assets and liabilities of the retirement fund and that the Retirement Board recommend to the Board of Supervisors such changes in the rates of interest, in the rates of contributions of members, and in county and district appropriations as are necessary, and appropriate mortality tables; and WHEREAS, the actuarial valuation of the Alameda County Employees' Retirement Association (ACERA) as of December 31, 2007, was conducted by The Segal Company and presented to the Board; and WHEREAS, the Board of Retirement met on May 22, 2008, and considered Actuarial Valuation of ACERA for Fiscal Year and Employer and Member Contribution Rates based on the valuation summaries prepared by the Segal Company. NOW THEREFORE, BE IT RESOLVED, the Board of Retirement hereby adopts the Actuarial Valuation of ACERA for Fiscal Year and Employer and Member Contribution rates based on the valuation summaries prepared by the Segal Company utilizing an 8% assumed rate of return and other approved assumptions. THE FOREGOING was PASSED, and ADOPTED by the following vote of the ACERA Board ofretirement on this 22 nd day ofmay 2008, to wit: MOTION OF MEMBER... ELIZABETH ROGERS SECONDED BY MEMBER... DALE AMARAL AYES: NOES: EXCUSED: ABSENT: AMARAL, BASGAL, CAIN-DARNES, KOPPENHAVER, RIOS, ROGERS, WALKER, D. WHITE NONE CARSON, SAFER, T. WHITE NONE TREVOR WHITE CHAIRPERSON, BOARD OF RETIREMENT n. \..." Executed this... day of ~~ ' 2008

5 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Breakdown of member rate between basic and COLA calculated in the December 31,2007 and December 31,2006 valuations: BASIC December 31,2007 Actuarial Valuation December 31,2006 Actuarial Valuation (11 COLA COST SHARING CONTRIBUTIONS TOTAL BASIC COLA COST SHARING CONTRIBUTIONS Estimated Estimated Estimated Estimated Estimated Estimated Estimated Estimated Rate Annual Rate Annual Rate Annual Rate Annual Rate Annual Rate Annual Rate Annual Rate Annual Amount' Amount" Amount' Amount' Amount' Amount' Amount' Amount' General Tier 1 692% $6, % $2, % $8, % $6, % $2, % $8,306 Members General Tier % $34, % $7, % $42, % $34, % $7, % $42,293 Members Safety Tier 1 770% $ % $ % $ % $1, % $ % $ % $ % $1,793 Members Safety Tier % $9, % $2, % $3, % $16, % $9, % $2, % $3, % $16,096 Members All Member Categories Combined 6.41% $50, % $13, % $3, % $68, % $50, % $13, % $3, % $68,488 TOTAL Amounts are in thousands and are based on December 3/ annllalpayroll (Also in thousands): County Only ACMC, Court & First 5 Other Districts Total General Tier 1 $58,360 $ 19,655 $8,873 $86,888 General Tier 2 377,868 $ 197, ,421 Safety Tier I 12,195 12,195 Safety Tier 2 119, ,054 Total $ 567,477 $217,208 $8,873 $793,558 (I) These rates have been re-calculated by applying the individual entry age based member rates determined in December 31, 2006 valuation to the Association membership as of December 31, *SEGAl 59

6 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) General Tier 1 Members' Contribution Rates Based on the December 31,2007 Actuarial Valuation as a percentage of payroll Ent~ First $ % 4.53% 4.57% 4.60% 4.64% 4.67% 4.69% 4.72% 4.75% 4.78% 4.82% 4.85% 4.89% 4.94% 4.98% 5.03% 5.08% 5.13% 5.18% 5.23% 5.29% 5.35% 5.41% 5.47% 5.53% Basic Only COLA Only Total Over $161 * First $161 Over $161 * First $161 Over $161 * 6.79% 1.73% 2.60% 6.26% 9.39% 6.79% 1.73% 2.60% 6.26% 9.39% 6.85% 1.75% 2.62% 6.32% 9.47% 6.91% 1.76% 2.64% 6.36% 9.55% 6.95% 1.77% 2.66% 6.41% 9.61% 7.00% 1.79% 2.68% 6.46% 9.68% 7.04% 1.79% 2.69% 6.48% 9.73% 7.08% 1.81% 2.71% 6.53% 9.79% 7.12% 1.82% 2.73% 6.57% 9.85% 7.17% 1.83% 2.75% 6.61% 9.92% 7.23% 1.85% 2.77% 6.67% 10.00% 7.28% 1.86% 2.79% 6.71% 10.07% 7.34% 1.87% 2.81% 6.76% 10.15% 7.41% 1.89% 2.84% 6.83% 10.25% 7.47% 1.91% 2.86% 6.89% 10.33% 7.54% 1.93% 2.89% 6.96% 10.43% 7.62% 1.95% 2.92% 7.03% 10.54% 7.69% 1.97% 2.95% 7.10% 10.64% 7.77% 1.99% 2.98% 7.17% 10.75% 7.85% 2.01% 3.01% 7.24% 10.86% 7.94% 2.03% 3.04% 7.32% 10.98% 8.02% 2.05% 3.07% 7.40% 11.09% 8.11% 2.07% 3.1l% 7.48% 11.22% 8.20% 2.09% 3.14% 7.56% 11.34% 8.30% 2.12% 3.18% 7.65% 11.48% *SEGAL 60

7 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Entry Age First $161 Over$161* % 8.39% % 8.49% % 8.59% % 8.70% % 8.81% % 8.91% % 9.03% % 9.14% % 9.26% % 9.37% % 9.49% % 9.61% % 9.72% % 9.84% % 9.96% % 10.07% % 10.16% % 10.24% % 10.24% 59 & Over 6.64% 9.96% * Use these rates for Non- Members Basic Only COLA Only Total First $161 Over$161* 2.14% 3.21% 2.17% 3.25% 2.19% 3.29% 2.22% 3.33% 2.25% 3.37% 2.27% 3.41% 2.31% 3.46% 2.33% 3.50% 2.36% 3.54% 2.39% 3.59% 2.42% 3.63% 2.45% 3.68% 2.48% 3.72% 2.51% 3.77% 2.54% 3.81% 2.57% 3.85% 2.59% 3.89% 2.61% 3.92% 2.61% 3.92% 2.54% 3.81 % Interest: 8.00% per annum COLA: 3.00% Mortality: 94 Group Annuity Mortality Table weighted 30% male and 70% female Salary Increase: Inflation (3.75%) + Across-the-Board Increase (0.25%) + Merit (See Exhibit IV) COLA Loading Factor: 38.29% Tenninal Pay: 8.8% First $ % 7.83% 7.92% 8.02% 8.12% 8.21% 8.33% 8.42% 8.53% 8.64% 8.75% 8.85% 8.96% 9.07% 9.18% 9.28% 9.37% 9.43% 9.44% 9.18% Over $161 * 11.60% 11.74% 11.88% 12.03% 12.18% 12.32% 12.49% 12.64% 12.80% 12.96% 13.12% 13.29% 13.44% 13.61% 13.77% 13.92% 14.05% 14.16% 14.16% 13.77% *SEGAl 61

8 SECTION 4: Reporting Infonnation for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) General Tier 2 Members' Contribution Rates Based on the December 31, 2007 Actuarial Valuation as a percentage of payroll Basic Only COLA Only Total Ent~ First $ % 3.41% 3.44% 3.46% 3.49% 3.51% 3.53% 3.55% 3.57% 3.60% 3.62% 3.65% 3.68% 3.71% 3.75% Over $161'" First $161 Over $161 '" First $ % 0.79% 1.19% 4.20% 5.11% 0.79% 1.19% 4.20% 5.15% 0.80% 1.20% 4.24% 5.20% 0.81% 1.21% 4.27% 5.23% 0.81% 1.22% 4.30% 5.26% 0.82% 1.23% 4.33% 5.29% 0.82% 1.23% 4.35% 5.33% 0.83% 1.24% 4.38% 5.36% 0.83% 1.25% 4.40% 5.40% 0.84% 1.26% 4.44% 5.44% 0.85% 1.27% 4.47% 5.48% 0.85% 1.28% 4.50% 5.52% 0.86% \.29% 4.54% 5.57% 0.87% 1.30% 4.58% 5.62% 0.87% 1.31% 4.62% Over $161 '" 6.30% 6.30% 6.35% 6.41% 6.45% 6.49% 6.52% 6.57% 6.61% 6.66% 6.71% 6.76% 6.81% 6.87% 6.93% % 3.82% 3.86% 3.90% 3.94% 3.98% 4.02% 4.07% 4.11% 4.16% 5.67% 0.88% 1.32% 4.66% 5.73% 0.89% 1.33% 4.71% 5.79% 0.90% 1.35% 4.76% 5.85% 0.91% 1.36% 4.81% 5.91% 0.92% 1.38% 4.86% 5.97% 0.93% 1.39% 4.91% 6.04% 0.93% 1.40% 4.95% 6.10% 0.95% 1.42% 5.02% 6.17% 0.96% 1.44% 5.07% 6.24% 0.97% 1.45% 5.13% 6.99% 7.06% 7.14% 7.21% 7.29% 7.36% 7.44% 7.52% 7.61% 7.69% *SEGAl 62

9 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Basic Only COLA Only Total Entry Age First $161 Over $161* First $161 Over $161 * First $161 Over $161 * % 6.31% 0.98% 1.47% 5.19% 7.78% % 6.39% 0.99% 1.49% 5.25% 7.88% % 6.46% 1.00% 1.50% 5.31% 7.96% % 6.54% 1.01% 1.52% 5.37% 8.06% % 6.62% 1.03% 1.54% 5.45% 8.16% % 6.71% 1.04% 1.56% 5.51% 8.27% % 6.79% 1.05% 1.58% 5.58% 8.37% % 6.88% 1.07% 1.60% ;.65% 8.48% % 6.96% 1.08% 1.62% 5.72% 8.58% % 7.05% 1.09% 1.64% 5.79% 8.69% % 7.14% 1.11% 1.66% 5.87% 8.80% % 7.22% 1.12% 1.68% 5.94% 8.90% % 7.31% 1.13% 1.70% 6.00% 9.01% % 7.40% 1.15% 1.72% 6.08% 9.12% % 7.49% 1.16% 1.74% 6.15% 9.23% % 7.57% 1.17% 1.76% 6.21% 9.33% % 7.64% 1.19% 1.78% 6.28% 9.42% % 7.69% 1.19% 1.79% 6.32% 9.48% % 7.99% 1.24% 1.86% 6.57% 9.85% 59& Over 5.54% 8.30% 1.29% 1.93% 6.83% 10.23% * Use these rates for Non- Members -x. SEGAL Interest: 8.00% per annum COLA: 2.00% Mortality: 94 Group Annuity Mortality Table weighted 30% male and 70% female Salary Increase: Inflation (3.75%) + Across-the-Board Increase (0.25%) + Merit (See Exhibit IV) COLA Loading Factor: 23.28% Terminal Pay: 3.0% 63

10 SECTION 4: Reporting Infonnation for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Safety Tier 1 Members' Contribution Rates Based on the December 31, 2007 Actuarial Valuation as a percentage of payroll Basic Only Cost Sharing Contributions COLA Only Total En~ First $161 Over $161* First$161 Over $161 * First $161 Over $161 * First $161 Over $161* % 8.26% 3.00% 3.00% 2.85% 4.28% 11.36% 15.54% % 8.26% 3.00% 3.00% 2.85% 4.28% 11.36% 15.54% % 8.34% 3.00% 3.00% 2.88% 4.32% 11.44% 15.66% % 8.41% 3.00% 3.00% 2.91% 4.36% 11.51% 15.77% % 8.47% 3.00% 3.00% 2.93% 4.39% 11.58% 15.86% % 8.53% 3.00% 3.00% 2.95% 4.42% 11.64% 15.95% % 8.58% 3.00% 3.00% 2.96% 4.44% 11.68% 16.02% % 8.63% 3.00% 3.00% 2.98% 4.47% 11.73% 16.10% % 8.68% 3.00% 3.00% 3.00% 4.50% 11.79% 16.18% % 8.74% 3.00% 3.00% 3.02% 4.53% 11.85% 16.27% % 8.81% 3.00% 3.00% 3.04% 4.56% 11.91% 16.37% % 8.88% 3.00% 3.00% 3.07% 4.60% 11.99% 16.48% % 8.96% 3.00% 3.00% 3.09% 4.64% 12.06% 16.60% % 9.04% 3.00% 3.00% 3.12% 4.68% 12.15% 16.72% % 9.13% 3.00% 3.00% 3.15% 4.73% 12.24% 16.86% % 9.23% 3.00% 3.00% 3.19% 4.78% 12.34% 17.01% % 9.33% 3.00% 3.00% 3.23% 4.84% 12.45% 17.17% % 9.44% 3.00% 3.00% 3.26% 4.89% 12.56% 17.33% % 9.56% 3.00% 3.00% 3.30% 4.95% 12.67% 17.51% % 9.68% 3.00% 3.00% 3.35% 5.02% 12.80% 17.70% % 9.81% 3.00% 3.00% 3.39% 5.08% 12.93% 17.89% % 9.94% 3.00% 3.00% 3.43% 5.15% 13.06% 18.09% % 10.08% 3.00% 3.00% 3.48% 5.22% 13.20% 18.30% % 10.21% 3.00% 3.00% 3.53% 5.29% 13.34% 18.50% % 10.35% 3.00% 3.00% 3.57% 5.36% 13.47% 18.71% *SEGAl 64

11 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Basic Only Cost Sharing Contributions COLA Only Total En~ First $161 Over $161 * First $161 Over $161 * First $161 Over $161 * First $161 Over $161 * % 10.49% 3.00% 3.00% 3.62% 5.43% 13.61% 18.92% % 10.63% 3.00% 3.00% 3.67% 5.51% 13.75% 19.14% % 10.76% 3.00% 3.00% 3.71% 5.57% 13.88% 19.33% % 10.89% 3.00% 3.00% 3.76% 5.64% 14.02% 19.53% % 11.02% 3.00% 3.00% 3.81% 5.71% 14.16% 19.73% % 11.14% 3.00% 3.00% 3.85% 5.77% 14.28% 19.91% % 11.24% 3.00% 3.00% 3.88% 5.82% 14.37% 20.06% % 11.31% 3.00% 3.00% 3.91% 5.86% 14.45% 20.17% % 11.29% 3.00% 3.00% 3.90% 5.85% 14.43% 20.14% 49& Over 7.29% 10.94% 3.00% 3.00% 3.78% 5.67% 14.07% 19.61% Use these rates for Non- Members Interest: 8.00% per annum COLA: 3.00% Mortality: 94 Group Annuity Mortality Table weighted 75% male and 25% female Salary Increase: Inflation (3.75%) + Across-the-Board Increase (0.25%) + Merit (See Exhibit IV) COLA Loading Factor: % Terminal Pay: 9.5% *SEGAL 65

12 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Safety Tier 2 Members' Contribution Rates Based on the December 31,2007 Actuarial Valuation as percentage of payroll Basic Only Cost Sharing Contributions COLA Only Total Ent~ First $161 Over $161 * First $161 Over $161* First $161 Over $161 * First $161 Over $161 * % 7.40% 3.00% 3.00% 1.51% 2.27% 4.93% 7.40% 3.00% 3.00% 1.51% 2.27% 4.98% 7.47% 3.00% 3.00% 1.53% 2.30% 5.02% 7.53% 3.00% 3.00% 1.55% 2.32% 5.06% 7.59% 3.00% 3.00% 1.55% 2.33% 5.09% 7.64% 3.00% 3.00% 1.57% 2.35% 5.12% 7.68% 3.00% 3.00% 1.57% 2.36% 5.15% 7.73% 3.00% 3.00% 1.59% 2.38% 5.19% 7.78% 3.00% 3.00% 1.59% 2.39% 5.22% 7.83% 3.00% 3.00% 1.61% 2.41% 5.26% 7.89% 3.00% 3.00% 1.62% 2.43% 5.31% 7.96% 3.00% 3.00% 1.63% 2.45% 5.35% 8.03% 3.00% 3.00% 1.65% 2.47% 5.40% 8.10% 3.00% 3.00% 1.66% 2.49% 5.45% 8.18% 3.00% 3.00% 1.68% 2.52% 5.51% 8.27% 3.00% 3.00% 1.69% 2.54% 5.57% 8.36% 3.00% 3.00% 1.71% 2.57% 5.64% 8.46% 3.00% 3.00% 1.73% 2.60% 5.71% 8.57% 3.00% 3.00% 1.75% 2.63% 5.78% 8.68% 3.00% 3.00% 1.78% 2.67% 5.86% 8.79% 3.00% 3.00% 1.80% 2.70% 5.94% 8.91% 3.00% 3.00% 1.83% 2.74% 6.02% 9.03% 3.00% 3.00% 1.85% 2.78% 6.10% 9.15% 3.00% 3.00% 1.87% 2.81% 6.18% 9.28% 3.00% 3.00% 1.90% 2.85% 9.44% 9.44% 9.51% 9.57% 9.61% 9.66% 9.69% 9.74% 9.78% 9.83% 9.88% 9.94% 10.00% 10.06% 10.13% 10.20% 10.28% 10.37% 10.46% 10.56% 10.66% 10.77% 10.87% 10.97% 11.08% 12.67% 12.67% 12.77% 12.85% 12.92% 12.99% 13.04% 13.11% 13.17% 13.24% 13.32% 13.41% 13.50% 13.59% 13.70% 13.81% 13.93% 14.06% 14.20% 14.35% 14.49% 14.65% 14.81% 14.96% 15.13% *SEGAl 66

13 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Basic Only Cost Sharing Contributions COLA Only Total Entry Age First $161 Over $161* First $161 Over $161 * First $161 Over $161 * First $161 Over $161 * % 9.40% 3.00% 3.00% 1.93% 2.89% 11.20% 15.29% % 9.52% 3.00% 3.00% 1.95% 2.93% 11.30% 15.45% % 9.64% 3.00% 3.00% 1.97% 2.96% 11.40% 15.60% % 9.76% 3.00% 3.00% 2.00% 3.00% 11.51% 15.76% % 9.88% 3.00% 3.00% 2.03% 3.04% 11.61% 15.92% % 9.98% 3.00% 3.00% 2.05% 3.07% 11.71% 16.05% % 10.08% 3.00% 3.00% 2.07% 3.10% 11.79% 16.18% % 10.14% 3.00% 3.00% 2.08% 3.12% 11.84% 16.26% % 10.53% 3.00% 3.00% 2.16% 3.24% 12.18% 16.77% 49& Over 7.29% 10.94% 3.00% 3.00% 2.24% 3.36% 12.53% 17.30% Use these rates for Non- Members Interest: 8.00% per annum COLA: 2.00% Mortality: 94 Group Annuity Mortality Table weighted 75% male and 25% female Salary Increase: Inflation (3.75%) + Across-the-Board Increase (0.25%) + Merit (See Exhibit IV) COLA Loading Factor: 30.74% Tenninal Pay: 3.0% "*SEGAl 67

14 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix B Projected Employer Contributions By Each Participating Employer Estimated Employer Contribution Requirement for Each Participating Employer in ACERA ($OOOs) Calculated Based on Projected Employer Compensation Used in the December 31,2007 Actuarial Valuation Employer Name (Code) Dollar Contribution Cl ) Based on December Valuation General Safety Tier I Tier 2 Tier I Tier 2 Total Dollar Contribution(l) Based on December Valuation General Safety Tier I Tier 2 Tier I Tier 2 Total Alameda County (101) $8,059 $44,928 $4,255 $32,692 $89,934 $8,380 $49,841 $4,383 $34,502 $97,106 Medical Center (106) $1,507 $17,617 $19,124 $1,562 $19,466 $21,028 Superior Court (632) $L229 $5,558 $6,787 $1,274 $6,142 $7,416 First 5 (714) $532 $532 $588 $588 Housing Authority (103) $835 $835 $855 $855 LARPD (104) $830 $830 $852 $852 Office ofeducation (los) $11 $11 Total $12,471 $68,635 $4,255 $32,692 $118,053 (I) Contribution calculated using projected compensation provided below for the December 31, 2007 valuation: $12 $12,935 $76,037 $4,383 $34,502 $12 $127,857 December Projected Total Compensation ($0005) General Safety Employer Name (Code) Tier I Tier 2 Tier I Tier 2 Total Alameda County (10 I) $58,361 $377,868 $12,195 $119,054 $567,478 Medical Center (106) $10,825 $146,799 $157,624 Superior Court (632) $8,830 $46,320 $55, ISO First 5 (714) $4,434 $4,434 Housing Authority (103) $4,417 $4,417 LARPD(104) $4,395 $4,395 Office ofeducation (105) $60 $60 Total $86,888 $575,421 $12,195 $119,054 $793, v3/ *SEGAL 68

15 SEGAL AndyYeung,ASA,MAAA,EA THE SF:GAl.. COMF'ANY 120 Montgomery Street ~:;u:te SOD San Francisco, CA \/ir.;e President g /Issociate /\cliary 1" B:~ F" 415.2G3 b2do VJwvJ.seqs!co.GOtl\ aydung@s oaicg.com VIA AND USPS June 11,2008 Mr. Charles F. Conrad Chief Executive Officer Alameda County Employees' Retirement Association th Street, Suite 1000 Oakland, CA Re: 2008/2009 Employer Contribution Rates Dear Chuck: Enclosed please find the employer contribution rates for the 2008/2009 fiscal year, broken down into integrated and non-integrated portions. The contribution rates are based on the assumptions adopted by the Retirement Board for the December 31, 2007 actuarial valuation. Please let me know if you have any questions. Sincerely, fa".1 1",' I> (,, - "-oi_v.~ \ -:.A,-"""-ir- Andy Yeung AB/kek Enclosure cc: Catherine Walker v1/05579,001 f:!flnlltlts. C"rnpm"",tkm "nil HR COn!",11lOU ATLANTA BOSTON CALGARY CHICAGO CLEVELAND DENVER HARTFORD HOUSTON LOS ANGELES MINNEAPOLIS NEW ORLEANS NEWYORK PHILADELPHIA PHOENIX PRINCETON RALEIGH SAN FRANCISCO TORONTO WASHINGTON, DC Mull/national Group of Actuaries and Consultants MEXICO CITY OSLO PARIS BARCELONA BRUSSELS DUBUN GENEVA HAMBURG JOHANNESBURG LONDON MELBOURNE

16 Alameda County Employees' Retirement Association Recommended County Contribution Rates* After Pension Obligation Bond Credit Calculated as of December 31,2007 General Tier 1 ( ) General Tier 2 ( ) 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Per Month Per Month Basic 8.12% 12.18% 12.18% 7.67% 11.51% % COLA 1.25% 1.87% 1.87% 0.42% 0.63% 0.63% Total 9.37% 14.05% 14.05% 8.09% 12.14% 12.14% Safety Tier 1 ( ) Safety Tier 2 ( ) 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Per Month Per Month Basic 18.52% 27.78% 27.78% 15.95% 23.92% 23.92% COLA 4.75% 7.13% 7.13% 2.36% 3.54% 3.54% Total 23.27% % 34.91% % 27.46% 27.46% The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-of-Living Reserves: Employer Advance Cost-of-Living Total General Tier % 13.3% 100.0% Tier % 5.2% 100.0% Safety Tier % 20.4% 100.0% Tier2 87.1% 12.9% 100.0% Based on 8.00% interest, 3.75% inflation, 0.25% across-the-board salary increase and merit and longevity increases.

17 Alameda County Employees' Retirement Association Recommended County Contribution Rates Before Pension Obligation Bond Credit Calculated as of December 31, 2007 General Tier 1 ( ) General Tier 2 ( ) 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Per Month Per Month Basic 10.37% 15.55% 15.55% 9.93% 14.90% 14.90% COLA 2.37% 3.55% 3.55% 1.55% 2.32% 2.32% Total 12.74% 19.10% 19.10% 11.48% 17.22% 17.22% Safety Tier 1 ( ) Safety Tier 2 ( ) 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Per Month Per Month Basic 20.45% 30.67% 30.67% 17.87% 26.81% 26.81% COLA 5.91% 8.86% 8.86% 3.51% 5.27% 5.27% Total 26.36% 39.53% 39.53% 21.38% 32.08% 32.08% The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-of-Living Reserves: Employer Advance Cost-of-Living Total General Tier % 18.6% 100.0% Tier % 13.5% 100.0% Safety Tier I 77.6% 22.4% 100.0% Tier % 16.4% 100.0% Based on 8.00% interest, 3.75% inflation, 0.25% across-the-board salary increase and merit and longevity increases.

18 Alameda County Employees' Retirement Association Recommended ACMC, Court & First 5 Contribution Rates After Pension Obligation Bond Credit Calculated as of December 31, 2007 General Tier 1 ( ) General Tier 2 ( ) 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Per Month Per Month Basic 8.21% 12.31% % 7.73% 11.60% 11.60% COLA 1.25% 1.87% 1.87% 0.42% 0.63% 0.63% Total 9.46% 14.18% 14.18% 8.15% 12.23% 12.23% The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-of-Living Reserves: General Tier 1 Tier 2 Employer Advance 86.8% 94.8% Cost-of-Living 13.2% 5.2% Total 100.0% 100.0% * Based on 8.00% interest, 3.75% inflation, 0.25% across-the-board salary increase and merit and longevity increases.

19 Alameda County Employees' Retirement Association Recommended ACMC, Court & First 5 Contribution Rates Before Pension Obligation Bond Credit Calculated as of December 31, 2007 General Tier 1 ( ) General Tier 2 ( ) 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Per Month Per Month Basic 10.46% 15.69% 15.69% 9.99% 14.99% 14.99% COLA 2.37% 3.56% 3.56% 1.54% 2.31% 2.31% Total 12.83% 19.25% 19.25% 11.53% 17.30% 17.30% The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-of-Living Reserves: General Tier I Tier 2 Employer Advance 81.5% 86.6% Cost-of-Living 18.5% 13.4% Total 100.0% 100.0% Based on 8.00% interest, 3.75% inflation, 0.25% across-the-board salary increase and merit and longevity increases.

20 Alameda County Employees' Retirement Association Recommended Other Districts Contribution Rates Calculated as of Decem ber 31, 2007 General Tier 1 ( ) 1st $350 Over $350 Non Per Month Per Month Basic 10.39% 15.58% 15.58% COLA 2.35% 3.53% 3.53% Total 12.74% 19.11% % The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-of-Living Reserves:. General Tier I Employer Advance 81.5% Cost-of-Living 18.5% Total 100.0% * Based on 8.00% interest, 3.75% inflation, 0.25% across-the-board salary increase and merit and longevity increases.