ALAMEDA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION

Transcription

1 ALAMEDA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION th Street, Suite 1000, Oakland, CA / ) 0/ fax: 510/ The Honorable Board of Supervisors Administration Building 1221 Oak Street, Room 536 Oakland, CA July 15, 2010 Agenda /July 27, 2010 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 actuarial consulting firm, to perform such a valuation. The results of the valuation were adopted by the Board of Retirement at its regu la r meeting on July 15, 201 O. The ag greg ate Employer rate will increase from 16.89% to 18.70% of payroll. The reasons for this change are: (a) lower than expected return on investments and (b) changes in the economic actuarial assumptions, primarily due to a reduction in the annual investment return assumption from 8.0% to 7.9%. These losses were partially offset by gains from: (a) lower than expected salary increases for active members and (b) lower than expected COLA increases for retired members. The detailed Employee, Employer, and District rates are set forth in the attached Charts. The County of Alameda ("County") received a reimbursement of $5.3 million for the implicit retiree health care subsidy paid by the County for The $5.3 million together with the unused credit from prior years' transfer have been amortized over 23 years. Effective with the December 31, 2006 valuation, the employer rates for ACMC, Superior Court and First 5 are higher than the rates for the County to reflect that only the County received a reimbursement for the implicit retiree health care SUbsidy. On an average rate basis, the combined General and Safety member employee contribution rates has increased from 8.57% of payroll to 8.74% of payroll, mainly due to the change in the economic actuarial assumptions. The ratio of the valuation value of assets to liabilities decreased from 83.9% to 81.2% during the year, primarily as a result of the recognition of a portion of the investment losses through 2009 and changes in the economic actuarial assumptions. The total unrecognized investment losses as of December 31,2009 are $776.9 million (in the previous valuation, this amount was $1,522.4 million). These investment losses will be recognized in the determination of the actuarial value of assets for funding purposes in the next few years, and will offset any investment gains that may occurafterdecember31,2009.

2 Board of Supervisors Letter re Adoption of Contribution Rates Page 2 The December 31, 2009 Actuarial Va luation Report included the review of economic assumptions, which are inflation, investment return, merit and promotional salary increases, and terminal pay assumptions. As a result of this review, the ACERA Board reduced the net investment earnings assumption rate from 8.0% to 7.9%, and the annual inflation assumption from 3.75% to 3.50%. The across-the-board salary increase assumption was increased from 0.25% to 0.50%. 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 th ree yea rs. Section of the Governmen! Code req uires 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 July 15, The adjustment of the rates for fiscal year must, therefore, occur effective pay period ending September 4, 2010 for the pay date of September 17, 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 yours, Catherine E. Walker Acting 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 Mary Ellyn Gormley, Senior Deputy County Counsel, Alameda County Crystal Hishida-Graff, Clerk, Board of Supervisors, Alameda County Alameda County Medical Center (ACMe) Wright Lassiter, III, Chief Executive Officer. ACMC Jeanette Louden-Corbett, Chief Human Resources Officer, ACMC - Marion Schales, Chief Financial Officer. ACMC Jodi De Lucca, Director of HRIS, Compensation and Benefits, ACMC Dennis Manzo, Administrative Financial Services Manager, ACMC Carol Whyte, Controller, ACMC Marylou Lestra Mayo, Payroll Manager, ACMC First 5-Alameda County Children and Families Commission (First 5) Mark Friedman, Chief Executive Officer, First 5 Patricia zapanta, 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 Leoncro, Finance Manager, Housing Authority Usa Gatchallan, Payroll Clerk, Housing Authority Livermore Area Park and Recreation District (LARPD) Tim Barry, General Manager, LARPD Lynn Loucks, Acting Finance Manager, LARPD Carolyn Ulrich, Human Resources Manager, LARPD Oanielle Fournier, Payroll, '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 Doug Bailey, Assistant 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 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 tile December 31, 2009 Actuarial Valuation as a pen:en tage of payrou Basic Only COLA Only Total Ent~ First $161 Over $161* First $161 Over $161 * First $161 Over $ % 6,86% 4.57% 6.86% 4.61% 6.91% 4.64% 6.96% 4.67% 7.00% 1.69% 2.53% 1.69% 2.53% L69% 2.54% 1.71% 2.56% 1,72% 2.58% 6.26% 6.26% 6.30% 6.35% 6.39% 9.39% 9.39% 9.45% 9.52% 9.58% % 7.04% 4.71% 7.07% 4.73% 7.10% 4.76% 7.14% 4.79% 7.18% 4.82% 7.23% 4.85% 7.28% 4.89% 7.33% 4.93% 7.39% 4.97% 7,45% 5.0t% 7.52% 5.06% 7.59% 5.11% 7.66% 5.16% 7.74% 5,21% 7.82% 5.27% 7,90% 5.33% 7.99% 5.39% 8.0&% 5.45% 8.17% 5.51% 8.27% 1.73% 2.59% 1.73% 2.60% \.75% 2.62% 1.75% 2.63% 1.77% 2.65% 1.77% 2.66% 1.79% 2.68% 1.80% 2.70% 1.81% 2.72% 1.83% 2.75% 1.85% 2.77% 1.87% 2.80% J.88% 2.82% 1.90% 2.85% 1.92% 2.88% 1.94% 2.91% 1.96% 2.94% 1.99% 2.98% 2.01% 3.01% 2.03% 3.05% 6.42% 6.44% 6.48% 6.51% 6.56% 6.59% 6.64% 6.69% 6.74% 6.80% 6.86% 6.93% 6.99% 7.06% 7.13% 7.21% 7.29% 7.38% 7.46% 7.54% 9.63% 9.67% 9,72% 9.77% 9.83% 9.89% 9.96% 10.03% 10.11% 10.20% 10.29% 10.39% 10.48% 10.59% 10.70% 10.81% 10.93% 11.06% 11.18% 11.32% *SEGAL 64

5 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Entry Age First $161 Over $ % 8.37% % 8.47% % 857% % 8.68% 44 5,86% 879% % 8.90% % 9.02% % 9.14% % 9,26% % 9.38% % 9.51 % % 9.63% % 9.76% % 9.89% % 10.01% % 10.12% % 10.23% % 10.31% % 10.33% 59 & Over 6.72% 10.08% Basic Only _COLA Only Total Use these rates for Non-Integrated Members First $161 Over $161 First $161 Over $ % 3.08% 7.63% 11.45% 2.08% 3.12% 7.73% 11.59% 2.11% 3.16% 7.83% 11.73% 2.13% 3.20% 7.92% 11.88% 2.16% 3.24% 8.02% 12.03% 2 19% 3.28% 8.12% 12.18% 2.21% 3.32% 8,22% 12.34% 2.25% 3.37% 8.34% 12.51% 2.27% 3.41% 8.44% 12.67% 2.31% 3.46% 8.56% 12.84% 2.33% 3.50% 8.67% 13.01% 2.37% 3.55% 8.79% 13.18% 2.40% 3.60% 8.91% 13.36% 2.43% 3.64% 9.02% 13.53% 2.46% 3.69% 9.13% 13.70% 2.49% 3.73% 9.24% 13.85% 2.51% 3.77% 9.33% 14.00% 2,53% 3,80% 9.40% 14.11% 2.53% 3.80% 9.41% 14.13% 2.48% 3.72% 9.20% 13.80% Interest: COLA: Mortality: Salary Increase: COLA Loading Factor: Terminal Pay; 7.90% per annum 3.00% RP-2000 Combined Healthy Mortality Table set back one year weighted 30% male and 70% female Inflation (3.50%) + Across-the-Board Increase (0.50%) + Merit (See Exhibit IV) 36.84% 8.0% *SEGAL 65

6 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) General Tier 2 Members' Contribulion Rates Based on the December 31, 2009 Actuarial Valuation as II percentage of payroll Basic Only COLA Only Total En~ First $161 Over $161" First $161 Over $161* First $161 Over $16' % 5.20% 3.47% 5.20% 3.49% 5.24% 3.52% 5.28% 3.54% 5.31% 3.56% 5.34% 3.57% 5,36% 3.59% 5.39% 3.61% 5.42% 3.63% 5.45% 3.66% 5.49% 3.68% 5.52% 3.71% 5.56% 3.74% 5.61% 3.77% 5.66% 3.80% 5.71% 3.84% 5.76% 3.88% 5.81% 3.91% 5.87% 3.95% 5.93% 4.00% 5.99% 4.04% 6.06% 4.09% 6.13% 4.13% 6.20% 4.18% 6.27% 0.77% 1.16% 0.77% Ll6% 0.78% l.\7% 0.79% J.l8% 0.79% 1.19% 0.79% l.\9% 0,80% 1.20% 0.80% 1.20% 0.81% \.21% 0.81% 1.22% 0.81% 1.22% 0.82% 1.23% 0.83% 1.24% 0.83% 1.25% 0.84% 1.26% 0.85% 1.27% 0.86% 1.29% 0.87% 1.30% 0.87% 1.31% 0.88% 1.32% 0.89% 1.34% 0.90% 1.35% 0.91% 1.37% 0.92% 1.38% 0.93% 1.40% 4.24% 4.24% 4.27% 4.31% 4.33% 4.35% 4.37% 4.39% 4.42% 4.44% 4.47% 4.50% 4.54% 4.57% 4.61% 4.65% 4.70% 4.75% 4.78% 4.83% 4.89% 4.94% 5.00% 505% 5.11% 6.36% 6.36% 6.41% 6.46% 6.50% 6.53% 6.56% 6.59% 6.63% 6.67% 6.71% 6.75% 6.80% 6.86% 6.92% 6.98% 7.05% 7.11% 7.18% 7.25% 7.33% 7.41% 7.50% 7.58% 7.67% "*SEGAl 66

7 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Basic Only COLA Only Total En~ First $161 Over $161 * First $161 Over$161* First $161 Over $161 * %. 6.35% 0.95% 1.42% 5.18% 7.77% % 6.42% 0.95% 1.43% 5.23% 7,85% % 6.50% 0.97% 1.45% 5.30% 7.95% % 6.58% 0.98% 1.47% 5.37% 8.os% % 6.67% 0.99% 1.49% 5.43% 8.16% % 6,75% 1.01% 1..51% 5.51% 8.26% % 6.84% 1.02% 1..53% 5.5&% 8.37% 47 4,62% 6.93% 1,03% 1.55% 5.65% 8.48% % 7.02% 1.05% l.57% 5.73% 8.59% % 7.11% 1.06% 1.59% 5.80% 8.70% % 7.21% 1.07% 1.61% 5.87% 8,82% % 7.30% 1.09% 1.63% 5.96% 8.93% % 7.40% 1.10% 1.65% 6.03% 9.05% % 7.49% Ll1% 1.67% 6.10% 9.16% % 7.58% 1.13% 1.69% 6.18% 9.27% % 7.67% 1.14% 1.71% 6.25% 9.38% % 7.74% J.l5% 1.73% 6.31% 9.47% % 7.79% Ll6% 1.74% 6.35% 9.53% % 8.09% 1.21% 1.81% 6.60% 9.90% 59 & Over 5.60% 8.40" % 1.88% 6.85% 10.28% Use these rates for Non-Integrated Members *SEGAL Interest: 7.90% per annum COLA: 2,00% Mortality: RP-2000 Combined Healthy Mortality Table set back one year weighted 30% male and 70% female Salary Increase: Inflation (3.50%) + Across-the-Board Increase (0.50%) + Merit (See Exhibil IV) COLA Loading Factor' 22.33% Tenninal Pay: 3.0% 67

8 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) General Tier 3 Members' Contribution Rates Based on the December 31, 2009 Actuarial Valuation as a percentage of payroll Entry Age Basic Only COLA Only Total First $161 Over $161'" First $161 Over $161 * First$ % 8.07% 1.98% 2,97% 7.36% 5.38% 8.07% 1.98% 2.97% 7.36% 5.42% 8.13% 1.99% 2.99% 7.41% 5.46% 8.18% 2.01% 3,01% 7.47% 5.49% 8.23% 2.02% 3.03% 7.51% 5.51% 8.27% 2.03% 3.04% 7.54% 5.53% 8.30% 2.03% 3.05% 7.56% 5.55% 8.33% 2.04% 3.06% 7.59% 5.58% 8.37% 2.05% 3.08% 7.63% 5.61% 8.41% 2.06% 3.09% 7.67% 5.64% 8.46% 2.07% 3.U% 7.71% 5.67% 8.51% 2.09% 3.13% 7.76% 5.71% 8.57% 2.10% 3.15% 7.81% 5.75% 8.63% 2.11% 3.17% 7.86% 5.80% 8.69% 2.13% 3.20% 7.93% 5.84% 8.76% 2.15% 3.22% 7.99% 5.89% 8.84% 2.17% 3.25% 8.06% 5.94% 8.92% 2.19% 3.28% 8.13% 6.00% 9.00% 2.21% 3.31% 8.21% 6.06% 9.08% 2.23% 3.34% 8.29% 6.11% 9.17% 2.25% 3.37% 8.36% 6,18% 9.27% 2.27% 3.41% 8.45% 6.24% 9.36% 2.29% 3.44% 8.53% 6.31% 9.46% 2.32% 3.48% 863% 6.38% 9.57% 2.35% 3.52% 8.73% Over $ % 11.04% 11.12% 11.19% 11.26% 11.31% 11.35% 11.39% 11.45% L1.50% 11.57% 11.64% 11.72% 11.80% 11.89% 11.98% 12.09% 12.20% 12.31% 12.42% 12.54% 12.68% 12.80% 12.94% 13.09% "*SEGAl 68

9 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Basic Obly COLA Only Total Entry Age First$161 Over $161"* First $161 Over $161'" First $161 Over$161* % 9.67%, 2.37% 3,56% 8.82% 13.23% 4) 6.52% 9.78% 2.40% 3.60% 8.92% 13.38% % 9.89% 2.43% 3.64% 9.02% 13.53% % 10.00% 2.45% 3.68% 9.12% 13.68% % 10.12% 2.48% 3.72% 9.23% 13.84% % 10.24% 2.51% 3.76% 9.34% 14.00% % 10.36% 2.54% 3.81% 9.45% 14.17% % 10.48% 2.57% 3.85% 9.56% 14.33% % 10.60% 2.60% 3.90% 9.67% 14.50% % 10.73% 2.63% 3.94% 9.78% 14.67% % 10.84% 2.66% 3.99% 9.89% 14.83% % 10.95% 2.69% 4.03% 9.99% 14.98% % 11.03% 2.70% 4.05% 10.05% 15.08% % 11.04% 2.71% 4.06% 10.07% 15.10% 54 & over 7.18% 10.77% 2.64% 3.96% 9.82% 14.73% Use these rates for Non-Integrated Members Interest: COLA: MOl1alily: Salary Increase: COLA Loading Factor: Tenninal Pay: 7,90% per annum 3.00% RP-2000 Combined Healthy Mortality Table set back one year weighted 30% male and 10% female Int1ation (3.50%) + Across-the-Board Increase (0.50%) + Merit (See Exhibit IV) 36.77% 8.0% *SEGAL 69

10 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Safety Tier 1 Members' Contribution Rares Based on tbe December 31, 2009 Actuarial Valuation as a percentage of payrou Basic Only Cost Sharing Contributions COLA Only Total En~ First $16) Over $161 First $161 Over $161"' First $16J Over$161"' First $161 Over $ % 9.58% 3.41% 5,12% 12.79% 17.70% % 9.58% 3.41% 5.12% 12.79% 17.70% % 9.62% 3.43% 5.15% 12.84% 17.77% % 9.64% 3.44% 5,16% 12.87% 17,80% % 9.66% 3.45% 5.17% 12.89% 17.83% % 9.67% 3.45% 5.18% 12.90% 17.85% % 9.67% 3.45% 5.17% 12.89% 17.84% % 9.67% 3.00% 3,00% 3.45% 5.17% L2.90% 17.84% % 9.68% 3.45% 5,18% 12.90% 17.86% % 9.70% 3.46% 5.L9% 12.93% 17.89% % 9.73% 3.47% 5.20% 12.95% 17.93% % 9,76% 348% 5.22% 12.99% 17.98% % 9.81% 3,50% 5.25% 13.04% 18.06% % 9.86% 300% 3.00% 3.52% 5.28% 13.09% 18.14% % 9.92% 3.54% 5.31% 13.15% 18.23% % 9.99% 3.00% 3,00% 3.57% 5.35% 13.23% l8.34% % 10.07% 3,59% 5.39% 13.30% 18.46% % 10.15% 3.62% 5.43% 13.39% 18.58% % 10.24% 3,00% 3.00% 3.65% 5.48% 13.48% 18.72% % 10.34% 3.69% 5.53% 13.58% 18.87% % 10.44% 3.00% 3,00% 3.73% 5.59% 13,69% 19.03% % 10.55% 3.17% 5.65% 13.&0% 19,20% % 10.66% 3.81% 5.71% 13.92% 19.37% % 10.78% 3.85% 5.77% 14.04% 19.55% 39 7,26% 10.90% 3.89% 5.83% 14.15% 19.73% *SEGAL 70

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 Entry Age First $161 Over $161* First $161 Over $161" First $161 Over $161" First $161 Over $161" % 11.02% 3.93% 5.89% 14.27% 19.91% % 11.I 3% 3.97% 5.96% 14.39% 20.09% % 11.25% 4.01% 6.02% 14.51% 20.27% % 11.36% 4.05% 6.08% 14.63% 20.44% % 11.47% 4.09% 6.14% 14.74% 20.61% % 1l.57% 4.13% 6.19% 14.84% 20.76% % 11.65% 4.15% 6.23% 14.91% 20.88% % 11.69% 4.17% 6.26% 14.96% 20.95% % ll.65% 3,00% 3.00% 4.15% 6.23% 14.92% 20.88% 49 & Over 7.51% 11.21% 4.02% 6,03% 14.53% 20.30% Use these rates for NOll-integrated Members [l1\erest: 7.90% per annum COLA: 3.00% Mortality; RP-2000 Combmed Healthy Mortality Table set back two years weighted 75% male and 25% female Salary Increase: 1ll.flation (3,50%) + Across-the-Board Increase (0.50%) + Merit (See Eiliibit IV) COLA Loading Factor: 53.51% Tennillal Pay: 9.5% *SEGAL 71

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 31,2009 Actuarial Valuation as perce'1tllge of payroll Basic Only Cost Sbaring ContributioDs COLA Only Total Entry Age First $]61 Over $161 * First $161 Over$]6]* First $161 Over $161* First $161 Over $ % 8.63% 5,75% 8.63% 5.78% 8.67% 3.00% 3,00% 1.85% 2.78% 1.85% 2.78% 1.86% 2.79% 10.60% 10,60% 10.64% 14.41% ]4.41% 14.46% % 8.69% 5.81% 8.71% 5,81% 8.71% 5.81% 8.71% 5.81% 8.71% 5.82% 8.72% 5.83% 8,74% 5.84% 8.76% 5.86% 8.80% 5,89% 8.84% 5.92% 8.88% 5.96% 8.94% 6.00% 9.00% 6.05% 9.07% 6.10% 9.14% 6.15% 9.23% 6.21% 9.31% 6.27% 9.41% 6.33% 9.50% 6.40% 9.60% 6A7% 9.70% 6.54% 9.81% 3.00% 3,00% 3,00% 3.00% 300% 3.00% 300% 3.00% 3.00% 3,00% 3.00% 3,00% 3,00% 3.00% 1.87% 2.80% 1.87% 2.81% 1.87% 2.81% 1.87% 2,81% 1.87% 2,81% 1.87% 2.81% 1.88% 2.82% 1.88% 2.82% 1.89% 2.83% 1.90% 2.85% 1.91% 2.86% 1.92% 2,88% 1.93% 2.90% 1.95% 2.92% 1.97% 2.95% 1.98% 2,97% 2.00% 3.00% 2.02% 3.03% 2.04% 3.06% 2.06% 3,09% 2.09% 3.13% 2.11% 3.16% 10.67% 10.68% 10,68% 10.68% 10.68% 10.69% 10.71% 10.72% 10.75% to.79% 10.83% 10.88% 1093% 11.00% 11.07% 11.l3% 11.21% 11.29% 11.37% 11,46% 11.56% 11.65% 14.49% 14.52% 14.52% 14.52% 14.52% 14.53% 1456% 14.58% 14.63% l4.69% 14.74% 14.82% 14.90% 14.99% 15-09% 15.20% 15.31% 15.44% 15.56% 15,69% 15.83% 15.97% *SEGAL 72

13 SECTION 4: Reporting Information for the Alameda County Employees' Retirement Association Appendix A Member Contribution Rates (Continued) Basic Only Cose Sharing Contributions COLA Only Total Entry Age First $161 Over $161* First $161 Over $161* First $161 Over $161* First $161 Over $ % 9.91% 2.13% 3.19% 11.74% 16.10% % 10,01% 2.15% 3.23% 11.83% 16.24% 42 6,74% 10.12% 2.17% 3.26% 11.91% 16-38% % 10.21% 3,00%.3.00% 2.19% 3.29% 12.00% 16.50% % 10.30% 2.21% 3.32% 12.08% 16.62% % 10.38% 2.23% 3.34% 12.15% 16.72% % 10.44% 2.24% 3-36% 12.20% 16.80% % 10.45% 2.25% 3.37% 12.22% 16.82% % 10.85% 2.33% 3.50% 12.57% 17.35% 49 & Over 7.51% 11.27% 2.42% 3.63% 12.93% 17.90% Use these rates for Non-InTegrated Members Interest: 7.90% per annum COLA.: 2.00% Monality: RP-2000 Combined Healthy Monality Table set back two years weighted 75% male and 25% female Salary Increase, Inflation (3.50%) + Across-the-Board Increase (0.50%) + Merit (See Exhibit IV) COLA Loading Factor: 32.22% Terminal Pay: 4.0% *SEGAL 73

14 Alameda County Employees' Retirement Association Recommended County Contribution Rates* Before Pension Obligation Bond Credit Calculated as of December 31,2009 General Tier 1 ( ) General Tier 2 ( ) Integrated [ntegrated \ SI $3 SO Over $350 Non \ st $350 Over $350 Non Per Month Per Month Integrated Per Month Per Month Integrated Basic 11.23% 16.85% 16.85% 1].09% 16.63% 16.63% COLA 2.71% 4.06% 4.06% 2.01% 3.02% 3.02% Total 13.94% 20.91% 20.91% 13.10% 19.65% )9.65% Safety Tier 1 ( ) Safety Tier 2 ( ) Integrated Integrated 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Integrated - Per Month Per Month Integrated Basic 26.81% 40.21% 40.21% 22.45% 33.67% 33.67% COLA 8.52% 12.78%12.78% _ '5.15% 7.72% 7.72% Total 35.33% 52.99% 52.99% 27.60% 41.39% 41.39% 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 I 80.6% 19.4% 100.0% Tier % 15.4% 100.0% Safety Tier I 75.9% 24,1% 100.0%' Tier % 18.7% 100.0% Based on 7.90% interest, 3.50% inflat ion, 0.50% across the-board salary increase and merit and longevity increases.

15 Alameda Count)' Employees' Retir~ment Association Recommended ACMC, Court & First 5 Contribution Rates* Before Pension Obligation Bond Cndit Calculated as of December 31,2009 General Tier 1 ( ) General Tier 2 ( ) Integrated Integrated 1st $350 Over $350 Non [st $350 Over $350 Non Per Month Per Month Integrated Per Month Per Month Integrated Basic J 1.37% 17.06% 17.06% IJ.2l% 16.81% 16.81% COLA 2.71% 4.06% 4.06% 2.01% 3.01% 3.01% Total 14.08% 21.t2% 21.l2% 13.22% 19.82% 19.82% The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-or-Living Reserves: General Tier I TieT2 Employer Advance 80.8% 84.8% COSI-O f- Living 19.2% 15.2% Total 100.0% 100.0% * Based on 7.90% interest, 3.50% inflation, 0.50% across-lhe- board salary increase and merit and longevity increases.

16 Alameda County Employees' Retirement Association Recommended County Contribution Rates* After Pension Obligation Bond Credit Calculated as of Decem ber 31, 2009 General Tier 1 ( ) General Tier 2 ( ) Integrated Integrated 1s( $350 Over $350 Non 151 $350 Over $350 Non Per Month Per Month Integrated Per Month Per Month Integrated Basic 9.03% 13.54% 13.54% 8.87% l:ul% 13.31% COLA 1.66% 2.49% 2.49% 0.96% 1.44% 1.44% TOlal 10.69% 16.03% 16.03% 9.83% 14.75% 14.75% Safety Tier I (3\664.1) Safety Tier 2 ( ) Integrated Integrated 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per Month Integrated Per Month Per Month Integrated Basic 25.03% 37.55% 37.55% 20.68% 31.02% 31.02% COLA 7.45% 11.18%11.18% _ 4.08% 6.12% 6.12% Total 32.48% 48.73% 48.73% 24.76% 37.14% 37.14% The following percentages should be used to credit the employer's contributions to Ihe Employer Advance and Cost-of-Living Reserves: Employer Advance Cost of-living Total General Tier % 15.5% 100.0% TierZ 90.3% 9.7% 100.0% Safety Tier I n.l%. 22.9% 100.0% Tier % 16.5% 100.0% Based on 7.90% interest, 350% inflation, 0.50% across-the-board salary increase and merit and longevity increases.

17 Alameda County Employees' Retirement Association Recommended ACMC, Court & First 5 Contribution Rates* After Pension Obligation Bond Credit Calculated as of December 31, 2009 General Tier 1 ( ) General Tier 2 ( ) Integrated lntegrated 1st $350 Over $350 Non 15t $350 Over $350 Non Per Month Per Month Integrated Per Month Per Month [ntegrnted Basic 9.17% 13.75% 13.75% 8.99% 13.49% 13.49% COLA 1.66% 2.49% 2.49% 0.95% 1.43% 1.43% Total 10.83% 16.24% 16.24% 9.94% 14.92% 14.92% 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 84.7% 90.4% Cost-of-Living 15.3% 9.6% Total 100,0% loo.o% Based on 7.90% interest, 3.50% inflation, 0.50% across-the-board salary increase and merit and longevity increases.

18 Alameda County Employees' Retirement Association Recommended Otber Districts Contribution Rates Calculated as of December 31, 2009 General Tier I ( ) General Tier 3 ( ) Inlegrated Integrated 1st $350 Over $350 Non 1st $350 Over $350 Non Per Month Per MOnlh Integrated Per Month Per Month Integrated Basic 11.39% 17.08% 17.08% 12.58% 18.87% 18.87% COLA 2.71% 4.07% 4.07% 3.50% 5.25% 5.25% Total 14.10% 21.15% 21.15% 16.08% 24.12% 24.12% The following percentages should be used to credit the employer's contributions to the Employer Advance and Cost-or-Living Reserves: Ceneral Tier 1 Tier 3 Employer Advance 80.8% 78.2% Cost-or-Living 19.2% 21.8% Total 100.0% 100.0% * Based on 7.90% interest, 3.50% inflation, 0.50% across-the-board salary increase and merit and longevity increases.

19 BOARD OF RETIREMENT ALAMEDA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION RESOLUTION NUMBER Adoption of Actuarial Valuation of ACERA for Fiscal Year WHEREAS: 1. 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 2. The actuarial valuation of the Alameda County Employees' Retirement Association (ACERA) as of December 31, 2009, was conducted by The Segal Company and presented to the Board; and 3. The Actuarial Committee met on July 15, 2010, at which time representatives of The Segal Company presented highlights of the Actuarial Valuation Report, including a summary of reconunended assumption changes, noted the member and employer contribution rates computed using the assumptions that the Board had previously adopted, and itemized the impact on contribution rates for the fiscal year, and the Actuarial Comminee recommended adoption of the Report, including the attached proposed new rates of contribution; and 4. The Board of Retirement met on July 15, 2010 and considered the Actuarial Valuation of ACERA for Fiscal Year and Employer and Member Contribution Rates based on the valuation sununaries 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 a 7.9% asswned rate ofretum and other approved assumptions. III III /II

20 THE FOREGOING was PASSED and ADOPTED by the following vote of the ACERA Board ofretirement on July 15, 2010; MOTION OF MEMBER: BASGAL SECONDED BY MEMBER: KOPPENHAVER AYES: AMARAL, BASGAL, CAIN-DARNES, CARSON, DEWEY, KOPPENHAVER, ROGERS, WALKER, WHITE - NOES: NONE ABSTENTIONS: NONE EXCUSED: -~-_~. r-""'"' ~~~ CHAIRPERSON, BOARD OF RETIREMENT Executed this _ "'l""'-'st=.h day of ~J-=ul:..,.L_'j., 2010

21 APPROVED AS TO FORM RICHARD E. WINNIE, County Counsel By: ~J~~)~--I---- THE BOARD OF SUPERVISORS OF THE COUNTY OF ALAMEDA STATE OF CALIFORNIA RESOLUTION NO. R- _ RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF ALAMEDA ADOPTION OF RETIREMENT CONTRIBUTION RATES FOR WHEREAS, Government Code section requires the Alameda County Employee's Retirement Association (ACERA), under the supervision of an actuary, to perform an actuarial valuation of the retirement system and recommend to the Board of Supervisors appropriate assumptions and contribution rates for the system; and WHEREAS, the Board of Retirement retained the Segal Company, an enrolled actuarial consultant, to perform such a valuation. The valuation recommended that the average County employer rate be 18.70% of payroll and the average employee contribution rates be 8.74%. The detailed Employee, Employer, and District rates are set forth in the attached Charts. The results of the valuation were adopted by the Board of Retirement at its regular meeting on July 15, 2010; and WHEREAS, Government Code section requires that the Board of Supervisors adjust the employer and member contribution rates no later than 90 days following commencement of fiscal year ; and WHEREAS, pursuant to the December 31, 2009 valuation, the Board of Retirement recommends that the Board of Supervisors adjust the employer and member contribution rates for ; and WHEREAS, the Board of Supervisors accepts the recommendation of the Board of Retirement based upon its actuarial valuation.

22 NOW, THEREFORE, BE IT RESOLVED, that the Alameda County Board of Supervisors hereby adopts the recommendation of the Board of Retirement to approve the employer and employee contribution rates to the retirement system for as contained in the Actuarial Valuation Report as of December 31, 2009 and as reflected in the attached Charts and authorizes and directs the Auditor-Controller to adjust all contribution rates accordingly.