Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Board hears Tier 5 options — no short‑term fix for legacy unfunded liability, but options improve long‑term sustainability
Summary
Actuarial models presented three Tier 5 design families (board‑approved DB variant with no guaranteed COLA, reduced multiplier with guaranteed COLA, and a hybrid DB/DC) and showed that while new tiers can reduce future benefit growth and improve long‑term funded status, they do not eliminate the existing unfunded liability without additional recurring contributions.
After reviewing the independent valuation results, the committee discussed options commonly described as 'Tier 5' for new hires. Staff and CABMAC presented three representative Tier 5 designs and multi‑decade projections comparing benefit payments, cash flow, and funded ratios across options.
Option summaries given by actuaries: (1) a board‑approved DB‑style Tier 5 with no guaranteed COLA (or a variant with a 1% guaranteed COLA) and a lower new‑hire member contribution (example presented: 7% for new members); (2) a reduced DB multiplier…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
