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Board approves implementing updated TERA retirement contribution rates this fiscal year
Summary
The Board of Supervisors voted 5-0 to implement proposed employer and employee contribution-rate changes for the Tulare County Employees Retirement Association (TERA) at the start of the fiscal year; staff said the increase is driven by career-incentive costs rather than fund performance.
Leanne Malison, administrator for the Tulare County Employees Retirement Association (TERA), presented the retirement-plan contribution options the board considers annually and recommended implementing the proposed rates at the start of the fiscal year.
Malison said the recommended changes reflect a modest increase: about a 2% increase for employers and a roughly 3.3% average change for employees. She told the board the increase stems primarily from adopted career-incentive milestones and not from poor fund performance; the plan earned a reported 10.2% return as of June 30 (above a 7% target), and the system now holds positive reserve funds to cushion market uncertainty.
The board was presented with options for the implementation date and a discount opportunity if the county chooses to prepay contributions. Supervisor Pete Vanderpool moved to adopt Option 1 (implement at the first pay period of the fiscal year); Supervisor Dennis Townsen seconded and the motion passed 5-0.
Malison thanked the board and noted this appearance was her final formal presentation before retirement, and board members expressed appreciation for her service.
