Vandenberg County hears actuary's remediation options as sheriff's pension funding dips to 73%

Sheriff Noah Robinson and the plan's actuary briefed the Vandenberg County Council on Oct. 2 about shortfalls in the sheriff's pension plan and presented options for restoring long-term funding.

The actuary said the plan's funded level fell from about 94% in 2022 to roughly 73% in 2023 and noted the plan missed its actuarially determined contribution (ADC) in several recent years. The actuary described four remediation approaches: a large one-time lump-sum payment to reach full funding by 2035, a smaller one-time payment combined with scheduled employer contributions, and two options that increase the county's ongoing percentage-of-pay contribution.

"Using the August assets," the actuary said, "a one-time contribution that would put the plan in position to reach 100% by 2035 would be $8,726,000. A smaller one-time payment of about $2,500,000, combined with the planned pay-based increases, should allow the plan to meet future ADCs under the assumptions used here." He also presented percentage-of-pay scenarios, noting a flat contribution starting in 2025 could require an employer rate in the mid‑teens to mid‑twenties depending on assumptions.

Council members pressed officials on assumptions behind the figures, including investment returns and fee-based contributions. The actuary said the analysis assumes a long‑term discount/return rate of about 7.25% and that fee sources (tax warrants and service fees) will contribute roughly 2% of payroll (about $219,000) annually. He cautioned that small swings in investment performance materially change the funding outlook: "Investments have performed well the last few months," he said, "but things can swing the other way."

Sheriff Robinson and council members described a recommended, interim step: ensure the 2024 ADC is met and commission an independent actuary to review assumptions and validate remediation scenarios. "I would make a request that, if we do nothing else this year, we at least meet ADC for 2024," the sheriff said.

Council members asked staff to explore options—including borrowing and bond financing—and for an independent review to validate the plan actuary's work before adopting a remediation plan. No formal funding decision was made at the meeting; the county announced it will hire an independent actuarial reviewer to provide a second opinion on the numbers presented.

What happens next: council expects the independent review and additional scenario costing before any formal vote on a remediation plan.