REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
June 23, 2020
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 $144,911,070 to the Board of Retirement within 30 days after the commencement of the fiscal year for half of the San Bernardino County's estimated annual retirement contribution for 2020-21.
(Presenter: Tori Roberts, Assistant Auditor-Controller/Treasurer/Tax Collector, 382-7005)
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 County is electing to make an advance payment of half of its estimated annual retirement contribution. Half of the estimated County General Fund retirement contribution for 2020-21 is $149,693,300, discounted by $4,782,230 (for a simple interest discount rate of 2.64%, after reduction for the foregone estimated treasury earning of $827,682) for the prepayment amount of $144,911,070.
BACKGROUND INFORMATION
Government Code Section 31582(b), allows the County of San Bernardino (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 the Board of Retirement (BOR) for the entire fiscal year. The prepaid amount is discounted by the BOR, resulting in savings to the General Fund.
The County has calculated a discount of $4,782,230 to the General Fund for fi...
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