The subject of CalPERS came up at Tuesday’s El Dorado County Board of Supervisor’s meeting. CalPERS is the California Public Employee’s Retirement System.
Chief Administrative Officer Terri Daly said the CalPERS rate would be going up substantially.
“When they don’t make enough money they come to the counties to make it up,” she said. Daly said they missed their income projections by 6 percent.
CalPERS had previously reported a 1 percent return for the fiscal year ending June 30.
Supervisor Ron Briggs raised the possibility of moving the county out of the CalPERS system. “Other jurisdictions have their own retirement plans,” he said. “And I don’t think it’s getting any healthier.”
In an interview after the meeting, Daly said every couple of years CalPERS does an actuarial based on county demographics and projected returns on investments. She said returns have been lower than expected but that they “smooth” their rates over a 30-year period.
“We would really have to think before pulling out of CalPERS,” she said, “because it would cost us $280 million to pay for those already in the system.”
She said that certain counties have their own retirement systems — notably Sacramento, San Diego, Santa Clara and others, but many have encountered problems because their retirement programs were underfunded.
In other business conducted at the meeting, a lease agreement was renewed with the Chamber of Commerce for five years. For $1 a year the chamber will be allowed continued use of county-owned space at 542 Main Street in Placerville.
The California Tahoe Conservancy was donated a county-owned, but little used, mower/chipper/blower. The conservancy will use it to revegitate areas.
The supervisors also authorized the Sheriff’s Department to pursue a Homeland Security Grant of $188,682. If successful, the grant would pay for equipment, training, planning and exercise costs to the cities of South Lake Tahoe and Placerville.
Contact Dawn Hodson at 530-344-5071 or firstname.lastname@example.org. Follow @DHodsonMtDemo on Twitter.