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HomeMy WebLinkAbout97.Distributed to Board - Letter to OCERS Board 8-28-2013.pdf Servin),i Orange County Sanitation District 101344 Ellis Avenue,Fountain Valley,CA 92708 Anahei (714)962-2411 Nw,v.aoseaeis.cam Brea August 20, 2013 Buena Park Distributed to Board of Cypress Directors 8/28/2013 at Fountain Valley Honorable Board Members Board Meeting OCERS Board of Retirement Fullerton 2223 E. Wellington Avenue, Suite 100 Barden,Grove Santa Ana, CA 92701 Huntington Beach RE: OCERS Actuarial Funding and Assumed Earnings Rate Policies Irvine La Habrs Members of the Board of Retirement: La Palma At its July meeting, the Orange County Sanitation District (OCSD) Board of LOSAI Directors discussed the OCERS Actuarial Funding Policy Amortization Nmport Periods and the Assumed Earnings Rate Policy. Beach Orange OCSD supports the OCERS Actuarial Funding Policy adopted on June 17, 2013 which maintains the current unfunded liability Amortization Period of Placenta 30-years and sets the future Amortization Period for new unfunded SantaAna liabilities at 25-years, as recommended by OCERS actuarial consultant, The Segal Company (Segal). Stanton OCSD also supports the OCERS December 5, 2012 Assumed Earnings Tustin Rate Policy of 7.25%, as recommended by Segal. Villa Park Yarba Linda OCSD recently established a five-year rate program and set its expenditures accordingly. Any further reduction of the Amortization County of Grange Periods or Assumed Earnings Rate would result in additional unbudgeted r .� istrict Mew costs that could negatively affect OCSD's level of service to its customers. SanitaryMidWay CRY Therefore, OCSD opposes shortening the Amortization Period of 30-years San ryD for current unfunded liabilities and 25-years for future unfunded liabilities, Irvine Ranch or reducing the Assumed Earnings Rate of 7.25%. Water District Thank you for your consideration. Respectfully, ORANGE COUNTY SANITATION DISTRICT N Troy Edgak Chairman cc: Mr. Steve Delaney, Chief Executive Officer We protect public health and the environment by providing etrectNe wastewater collection, treatment, and recycling.