REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 27, 2023
FROM
ENSEN MASON, Auditor-Controller/Treasurer/Tax Collector
SUBJECT
Title
Annual Employer Retirement Contribution Advance Payment
End
RECOMMENDATION(S)
Recommendation
Authorize the San Bernardino County Auditor-Controller/Treasurer/Tax Collector to make an advance payment of $317,214,592 to San Bernardino County Employees’ Retirement Association within 30 days after the commencement of the fiscal year for San Bernardino County’s estimated annual retirement contribution for 2023-24.
(Presenter: John Johnson, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7004)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
The total County General Fund retirement contribution for 2023-24 is estimated to be $327,921,300 discounted by $10,706,708 after reduction for the foregone estimated treasury earnings of $5,839,028 for a net savings of $4,867,680 for the prepayment amount of $317,214,592.
BACKGROUND INFORMATION
Government Code Section 31582(b) allows San Bernardino County (County) to make an advance payment of all or part of the County’s estimated annual retirement contribution, provided that the payment is paid within 30 days after the commencement of the County’s fiscal year. The County has taken advantage of this advance payment option in the past, prepaying the General Fund contribution to San Bernardino County Employees’ Retirement Association (SBCERA) for the entire fiscal year. The prepaid amount is discounted by SBCERA, resulting in savings to the General Fund.
The County has calculated a discount of $10,706,708 to the General Fund for fiscal year 2023-24. The Auditor-Controller/Treasurer/Tax Collector and the County Administrative Office analyzed the financial impact of prepaying the retirement contribution and have determined that the County will benefit from the transaction.
The estimated retirement contribution of $327,921,300 and related discount amount of $10,706,708 are estimates. Any benefit or loss realized by SBCERA as a result of the retirement advance payment will be incorporated into San Bernardino County’s employer’s contribution rates, thus ultimately accruing to the County.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by San Bernardino County Employees’ Retirement Association (Debby Cherney, Chief Executive Officer, Barbara Hannah, Chief Counsel, and Amy McInerny, Chief Financial Officer, 915-2028) on May 19, 2023, May 19, 2023, and May 18, 2023, respectively; County Counsel (Kristina Robb, Deputy County Counsel, 387-5455) on May 19, 2023; and County Finance and Administration (Amanda Trussell, Principal Administrative Analyst, 387-4773, and Matthew Erickson, County Chief Financial Officer, 387-5423) on June 9, 2023.