File #: 2019-565    Version: 1 Name:
Type: Information Item Status: Filed
File created: 9/2/2019 In control: ADMINISTRATION COMMITTEE
On agenda: 9/11/2019 Final action: 9/11/2019
Title: ORANGE COUNTY EMPLOYEE RETIREMENT SYSTEM (OCERS) INFORMATION UPDATE
Sponsors: Lorenzo Tyner
Attachments: 1. Agenda Report
Related files: 2019-526

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

 

recommendation

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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