Res18 15642 - Laserfiche WebLink

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Pension and Other Employee Benefit Costs The City allocates a portion of its employee expenses to its sewer utility based on employees allocated to operation of the sewer utility. In fiscal year 2016-17, the City allocated 3.1 % of its total employee costs to the sewer utility. Pension. Substantially all City employees are eligible to participate in pension plans offered by California Public Employees' Retirement System ("PERS"), an agent multiple -employer defined benefit pension plan which acts as a common investment and administrative agent for its participating member employers. PERS provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members who must be public employees and beneficiaries. The City's employees participate in the separate safety (police and fire) and miscellaneous (all other) employee plans. Benefit provisions under both plans are established by state statute and City resolution. Benefits are based on years of credited service, equal to one year of full time employment. Funding contributions for both plans are determined annually on an actuarial basis as of June 30 by PERS; the City must contribute these amounts. See Note 9 of the City's June 30, 2017 audited financial report, which is attached to this Official Statement as Appendix J, for information as of June 30, 2017 related to the City's pension and post-retirement medical benefit costs. The City's total PERS plan contributions are determined through PERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2016 (the measurement date), the average active employee contribution rate is 7.83% of annual pay for the Miscellaneous Plan and 9.04% of annual pay for the Safety Plan; and the employer contribution rate is 9.27% of annual payroll for the Miscellaneous Plan and 22.03% of annual payroll for the Safety Plan. For the year ended June 30, 2017, the City recognized pension expense of $8,864,628 for the Miscellaneous Plan and $13,755,299 for the Safety Plan. At June 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Deferred Inflows of Resources Resources Pension Contributions Subsequent to Measurement Date $17,721,552 $ -- Changes of Assumptions Differences between Expected & Actual Experiences Net Differences between Projected & Actual Earnings on Plan Investments Total USX $3,937,518 $3,328,061 $141,618 $21,940,552 $42,990,165 $4,079,136