SDCERS Board Decision on Revised Actuarial Valuation

Date: Jul 02, 2013

 

At its June 28th meeting, the SDCERS Board of Administration discussed and voted on a revised June 30, 2012 Actuarial Valuation that was developed to reflect the 5-year freeze on pensionable pay agreements between the City and its six labor unions.

After more than 90-minutes of vigorous discussion and presentations by SDCERS’ actuary and fiduciary counsel, the Board did not adopt the revised Valuation. The Board voted six in favor and four opposed, with seven affirmative votes necessary to approve. Both SDCERS’ actuary and fiduciary counsel explained that both options - modifying the June 30, 2012 Valuation or including the effects of the agreements in the June 30, 2013 Valuation - were acceptable courses of action.

This outcome means savings generated from the 5-year agreements will be defered to next year and incorporated into the June 30, 2013 Valuation, which will be discussed by the Board in January 2014. City employee contribution rates will remain as they were in FY2013, depending on each member’s pension tier. The Board will address the member contribution rate topic again when Cheiron presents the June 30, 2013 Valuation, which sets employer and employee contribution rates starting July 2014.

The City paid its full $275.4 million FY2014 Annual Required Contribution (ARC) on July 1, 2013.
 




Document Under Categories: Actuarial Valuations, Board, Press Release

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