BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA
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AUTHORIZING AN ACTUARIAL STUDY TO DETERMINE THE IMPACT OF FUTURE ANNUAL COSTS ON THE RETIREMENT SYSTEM AS WELL AS THE EMPLOYEE COSTS FOR PURCHASING ADDITIONAL RETIREMENT SERVICE CREDIT FROM SAMCERA AS THE FIRST STEP IN ASSESSING WHETHER THIS BOARD OF SUPERVISORS WILL OPT TO MAKE GOVERNMENT CODE SECTION 31658 APPLICABLE IN THE COUNTY OF SAN MATEO
RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that
WHEREAS, in September 2003, the Governor signed into law Code Section 31658, a benefit improvement for county employees that if implemented locally would allow those employees with at least five years of service credit to purchase up to five years of additional retirement credit with their retirement system as a method enhancing their personal retirement benefits; and
WHEREAS, so as not to place any burden on counties or their retirement systems, Section 31658 requires that the purchase of the additional service credit be done in such a manner, as determined by an actuary and the retirement board, so as not to place any additional financial burden upon the retirement system; and
WHEREAS, Government Code sections 7507 and 31516 mandate the Board of Supervisors to "secure the services of an enrolled actuary to provide a statement of the actuarial impact upon future annual costs before authorizing increases in public retirement plan benefits." Further, "future annual costs" shall include, but not be limited to, annual dollar increases or the total dollar increases involved when available; and
WHEREAS, Government Code sections 7507 and 31516 require that an actuarial study be conducted and released publicly for at least two weeks prior to the Board of Supervisors' action to adopt an enabling resolution providing this benefit to its employees; and
WHEREAS, given the financial concerns that the County has over the recent increase to its unfunded liability for the retirement system, an actuarial report will show this Board, the employees, and the public what the costs of purchasing this benefit will be if such an enabling resolution were enacted; and
WHEREAS, while upholding the County's Partnership Vision, that government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain, this Board has the opportunity to further enhance the retirement security for future County retirees who choose to invest their personal resources to purchase additional service credits in SamCERA, the County's Retirement System.
NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED
That this Board of Supervisors does hereby authorize the contract services of an enrolled actuary to prepare an actuarial report that presents the future impact on the retirement system as a whole as well as varying methodologies for determining the employee costs for purchasing additional service if Government Code Section 31658 were implemented in the County of San Mateo.
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