To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Retirement Plan Contribution Rates for Fiscal Year 2027-2028
RECOMMENDATIONS:
ADOPT a Resolution which establishes retirement plan contribution rates as approved by the Retirement Board for the period July 1, 2027 through June 30, 2028.
FISCAL IMPACT:
See 'Background' below.
BACKGROUND:
At its August 19, 2026 meeting, the Retirement Board reviewed and accepted the actuary’s valuation report for the year ending December 31, 2025 and adopted the recommended employer and employee contribution rates, which will become effective on July 1, 2027. A copy of the December 31, 2025 Actuarial Valuation can be found on CCCERA’s website at www.cccera.org <http://www.cccera.org> under the Actuarial Reports link.
Attached are the rates to be used effective July 1, 2027 through June 30, 2028 submitted for adoption by the County Board of Supervisors by the Contra Costa County Employees’ Retirement Association. Please note the following related to Special Districts:
• The rates are before employer subvention, if any, of the employee contribution. The rates quoted here are the employer required rates without taking into consideration any employer subvention of employee contributions. A convenient methodology for adding subvention is included in the attached document. Note that subvention is not always permitted for PEPRA members.
• The rates are before any increase in employee rate to pay a portion of the employer contribution. If an employee’s rate needs to be increased to pay a portion of the employer contribution, both employee and employer rates would need to be adjusted accordingly.
CONSEQUENCE OF NEGATIVE ACTION:
Rates will not reflect those adopted by the Contra Costa County Employees Retirement Board.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF
Approving Contribution Rates to be charged by the Contra Costa County Employees' Retirement Association
WHEREAS,
Pursuant to Government Code Section 31454 and on recommendation of the Board of the Contra Costa County Employees’ Retirement Association,
NOW, THEREFORE, BE IT RESOLVED
end
That the following contribution rates are approved to be effective for the period July 1, 2027 through June 30, 2028.
I. Employer Contribution Rates for Basic and Cost-of-Living Components and Non-refundability Discount Factors
A. For General Members (Sec. 31676.11, Sec. 31676.16 and Sec. 7522.20(a)) See attached Exhibits 1 through 6
B. For Safety Members (Sec. 31664, Sec. 31664.1 and Sec. 7522.25(d)) See attached Exhibits 7 through 11
II. Employee Contribution Rates for Basic and Cost-of-Living Components
A. See attached Exhibits A through L
- The following employers made UAAL prepayments and their Unfunded Actuarial Accrued Liability (UAAL) contribution rates reflect those UAAL prepayments:
- Central Contra Costa Sanitary District made a UAAL prepayment in 2013, 2014, 2015 and 2021 which affected contribution rates for that employer.
- Local Agency Formation Commission (LAFCO) made a UAAL prepayment in 2017, 2019, 2020 and 2021 which affected contribution rates for that employer.
- In-Home Supportive Services Authority (IHSS) made a UAAL prepayment in 2023 which affected contribution rates for that employer.
- San Ramon Valley Fire Protection District made a UAAL prepayment in 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2025 which affected contribution rates for the Safety members of that employer.
- As part of the annexation of East Contra Costa Fire Protection District into Contra Costa County Fire Protection District effective July 1, 2022, East Contra Costa Fire Protection District made a UAAL prepayment in 2022 which affected contribution rates for the General and Safety members of Contra Costa County Fire Protection District (after annexation).
- As part of the annexation of Rodeo-Hercules Fire Protection District into Contra Costa County Fire Protection District effective July 1, 2025, Rodeo-Hercules Fire Protection District made a UAAL prepayment in 2025 which affected contribution rates for the Safety members of Contra Costa County Fire Protection District (after annexation).
Starting with the December 31, 2025 actuarial valuation, the Board updated the Plan’s funding policy to apply a contribution volatility management method under the new stabilization of employer contribution rate and surplus management methods component of the funding policy. This contribution volatility management method is applicable to each UAAL cost group when there is a UAAL contribution rate decrease calculated compared to the prior year's actuarial valuation. The employer contribution rates calculated in this rate packet reflect the application of this method. Details of the contribution volatility management method can be found in the December 31, 2025 actuarial valuation report Section 4, Exhibit 1 starting on page 109.
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I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. |
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ATTESTED: |
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Monica Nino, County Administrator and Clerk of the Board of Supervisors |
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By: |