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
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OCSD PENSION FUNDING
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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
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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
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