KCERA actuaries tell supervisors funded ratio rose to 69.9%; employers still paying roughly 46% of payroll

Kern County’s retirement system reported modest improvement but still-large long-term costs during an actuarial overview presented to the Board of Supervisors on Feb. 25.

The Kern County Employees’ Retirement Association (KCERA) told supervisors the plan held about $6.2 billion in its investment portfolio as of the 6/30/2024 valuation and paid roughly $35 million per month to more than 9,000 retirees worldwide. The actuarial report shows a funded ratio of 69.9% on the valuation basis, up from 68.7% a year earlier, and an unfunded actuarial accrued liability of approximately $2.51 billion.

Those figures matter for the county’s budget because KCERA’s actuary calculated an average employer contribution rate of 45.76% of active payroll for 2024 — meaning employers in the plan (including Kern County) are being billed, on average, nearly 46 cents for every dollar of active payroll to cover benefits and amortize unfunded liabilities. KCERA’s consultants said the increase in payroll and other plan experience produced a decline in the percentage rate compared with the prior…