FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT:
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ORANGE COUNTY EMPLOYEE RETIREMENT SYSTEM (OCERS) INFORMATION UPDATE
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
OCERS will present information regarding its investment policies, 2018 investment results, and impacts on the Orange County Sanitation District.
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BACKGROUND
For the year ended December 31, 2018, OCERS’ actuarial assumed rate of return was 7%, but actual investment returns were a loss of approximately 2%. The Orange County Sanitation District’s (Sanitation District) allocated share of this shortfall resulted in a Unfunded Actuarial Accrued Liability (UAAL) and Net Pension Liability (NPL) of $9 million and $29 million, respectively.
At the August Board meeting, staff recommended, and the Board approved, reducing its investment portfolio to fund its current total UAAL and NPL of approximately $38 million. The Board also requested OCERS present information regarding its investment policies, 2018 investment results, and impacts on the Sanitation District.
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Resolution No. OCSD 18-23 - Sanitation District’s adopted Investment Policy - prudent investor standard
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package:
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