pages: CityCouncil/2009-02-03.pdf, 5
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CityCouncil | 2009-02-03 | 5 | Councilmember Tam inquired whether niscellaneous employee contributions went down. Mr. Milligan responded in the affirmative; stated the decrease was expected because the 2009-2010 contribution rate is based on the June 30, 2007 actuarial evaluation report; 2007 was a good investment year; 2010-2011 estimates are 30.4% for public safety and 12.7% for miscellaneous employees. Mayor Johnson inquired whether Mr. Milligan has dollar figures for 2010-2011, to which Mr. Milligan responded in the negative. Mayor Johnson inquired when real property investment losses are realized. Mr. Milligan responded there is usually a three-month lag. Councilmember Matarrese inquired what would be the FY 2011-1 - 12 percentage contribution if the 20% loss held. Mr. Milligan responded employer contribution rates are anticipated to increase between 2% and 5% of payrolli stated the range is dependent on assets; the miscellaneous employee plan has lower asset to payroll ratios; public safety plans tend to have higher asset to payroll ratios. Mayor Johnson requested an explanation of asset to payroll ratios. Mr. Milligan stated CalPERS has a fund of assets dedicated to providing pensions to the City's former and current employees i the contribution rate is adjusted because of losses or gains. Mayor Johnson inquired whether more assets are tied to public safety employees than miscellaneous employees. Mr. Milligan responded more assets are put aside for public safety than for miscellaneous employees; stated more money needs to accrue over a shorter period of time for public safety; public safety benefits are paid for a longer period of time. Mayor Johnson inquired whether CalPERS relies more heavily on investment returns to cover the cost of public safety retirements. Mr. Milligan responded CalPERS does not have as much time to earn investment income for public safety; stated employer contributions are relied upon more heavily. Regular Meeting Alameda City Council 5 February 3, 2009 | CityCouncil/2009-02-03.pdf |