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Retirement rates projected to fall; county hears report showing funded status above 85%
Summary
The Board received a presentation from the county retirement administrator that retirement contribution rates are projected to decline by 4.74 percent — roughly $27.6 million — and the plan is more than 85.5 percent funded; the board filed the report.
The Board of Supervisors received the annual evaluation review of the Fresno County Employees’ Retirement Association during the meeting and voted to file the report.
Retirement administration staff told the board that, after a period of rising contribution rates earlier in the administrator’s tenure, projected employer rates are decreasing. The retirement administrator reported an anticipated decrease in rates of 4.74 percent, which staff estimated would equate to approximately $27.6 million in reduced contributions compared with the prior projection. The administrator also said the plan’s funded status is above 85.5 percent.
Why it matters: County officials stressed how market performance and investment returns affect the unfunded liability; sustained investment returns would further reduce rates, staff said, while sustained major market losses could push rates higher temporarily.
Next steps: staff said they plan to discuss smoothing options (an item added to the agenda as Action Item 3) with the board and retirement staff to reduce volatility in future rate changes. After public comment and a brief question period, the board moved and approved the staff recommendation to receive and file the evaluation review.
Ending: Board members thanked retirement staff for the update and noted the size of the county’s annual retirement contributions when discussing long‑term budget planning.
