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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
Kim Shanklin, Chief People Officer |
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PRESENTER(S): |
Jeff Acerson, Board Trustee |
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William Greene, Chief Financial Officer |
TITLE:
title
R2021-12-02 - Resolution Establishing an Employee Retirement Plan Contribution Rate Policy
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Adopt the resolution establishing the retirement plan contribution rate.
BACKGROUND:
In 2013 the previous Board of Trustees adopted a retirement plan contribution rate policy to reduce the Pension’s unfunded liability. In September 2021, a sub-committee of the Pension Committee, including Jeff Acerson, Bill Greene, and Rod Dunn, was tasked to review the 2013 contribution rate policy to ensure it was accomplishing the necessary reduction of the unfunded liability.
DISCUSSION:
The committee worked directly with the Pension actuary, Milliman Services, to conduct the review. The Pension Committee sub-group is recommending the Board continue the previously established funding rate of 16% by adopting the updated resolution.
ALTERNATIVES:
The Board of Trustees could consider a different contribution rate or continue under the previous 2013 resolution.
FISCAL IMPACT:
The 16 percent contribution rate, when combined with returns that are outperforming expectations has resulted in a trajectory that has the pension reaching its 100 percent funding objective two years ahead of schedule.
The Committee believes that this would allow the Plan to weather a typical economic downturn, or, at the least, provide time to assess changing economic conditions.
ATTACHMENTS:
R2021-12-02 - Resolution Establishing an Employee Retirement Plan Contribution Rate Policy