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HomeMy WebLinkAboutItem 8 PPP 09-09-2020 Admin Committee - Pension FundingOCSD Pension Funding Administration Committee September 9, 2020 Lorenzo Tyner, AGM OCSD PENSION FUNDING 0 100 200 300 400 500 600 Plans G&H - 2.50% @ 55 Plan B - 1.67% @ 57.5 Plan U - PEPRA 2.50% @ 67 OCSD PENSION OVERVIEW Employees (Active & Retired) Active Retired Page 2 -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 OCERS INVESTMENT RETURNS Assumption Actual OCSD PENSION FUNDING Page 3 OCSD PENSION FUNDING Pe r c e n t o f T o t a l O C S D S a l a r i e s Page 4 OCSD PENSION FUNDING •2014-2016, and 2019 Pay Down of UAAL •2018-19, OCSD slightly “Over-Funded” (101%) •Future Funding Options 1)Make an Additional Payment to OCERS 2)Establish and Fund a 115 Pension Trust Page 5 OCSD PENSION FUNDING OPTIONS ($20M Investment) Plan 1 Year 3 Year 5 Year OCERS 14%9%7% Trust A 11%-23%5%-11%4%-8% Trust B 7%-22%5%-11%3%-8% Plan 1 Year 3 Year 5 Year OCERS $2.8M $5.9M $8.1M Trust A $2.2M-$4.5M $3.4M-$7.0M $4.4M-$9.3M Trust B $1.5M-$4.4M $3.4M-$7.0M $4.2M-$9.3M Page 6 OCSD PENSION FUNDING OPTIONS Potential Return Greater than OCSD Portfolio Added Diversity of Investment Managers OCSD Direction of Investment Strategy Make an Additional Payment to OCERS X Current Fund Manager Manages a 115 Trust X X Select and Join Multiple- Employer 115 Trust X X X Recommendation: Issue an RFP to select a Multiple-Employer 115 Trust Page 7