Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Funding topic
No spam. Unsubscribe anytime.
Commissioners hear pension projections; county funded ratio cited near 84%
Summary
Staff reviewed retirement-plan projections and said the county’s funded ratio was about 84.2% at the end of 2012, projected to dip toward 80% in some scenarios; presenters urged continued annual full contributions to avoid widening unfunded liability.
County staff reviewed a multi‑year projection of the county’s retirement plan, explaining that assumptions used in earlier analysis expected long‑term returns around 8 percent and that the county has begun increasing employer contributions. Staff noted the county increased its retirement contribution this year by roughly $340,000 to fund required levels.
The presentation reported a funded ratio around 84.2% as of the end of 2012 and described scenarios where the funded ratio could decline toward 80% by about 2017 under adverse market conditions or if contributions were not maintained. Staff emphasized that following the plan’s recommended annual contributions would, over time, bring the plan toward full funding; conversely, intentionally underfunding contributions or repeatedly granting large cost‑of‑living increases without offsetting contribution changes would widen the long‑term unfunded liability.
Commissioners questioned the guarantees embedded in the plan design (participants discussed a plan guarantee figure expressed as a 7% reference in the transcript) and raised concerns about the systemic risk if large participating counties withdrew from the statewide plan. Staff and commissioners characterized the retirement system as cooperative and cautioned that loss of major participants could materially change actuarial assumptions and contribution requirements.
