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File #: 21-534    Version: 1 Name: 2022 Pension Contribution Informational Report
Type: Informational Report Status: Placed on File
File created: 6/2/2021 In control: Personnel Committee
On agenda: Final action: 6/24/2021
Title: From the Director of Retirement Plan Services, Department of Human Resources, providing an informational report detailing the Fiscal Year 2022 County pension contributions to the Milwaukee County Employees' Retirement System and the OBRA 1990 Retirement Plan. (Considered by the Committees on Personnel and Finance) (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)
Attachments: 1. 21-534 REPORT, 2. 21-534 2022 COUNTY CONTRIBUTIONS FOR ERS and OBRA, 3. 21-534 EMPLOYEES' RETIREMENT SYSTEM ACTUARIAL VALUATION, 4. 21-534 OBRA 1990 RETIREMENT SYSTEM ACTUARIAL VALUATION, 5. 21-534 RPS REFERRAL RESPONSE MEMO (received 06/10/21), 6. 21-534 MARCH18, 2015 PENSION BOARD MINUTES (received 06/10/21), 7. 21-534 APRIL 15, 2015 PENSION BOARD MINUTES (received 06/10/21), 8. 21-534 COUNTY BOARD RESOLUTION
Related files: 20-558, 20-440

Title

From the Director of Retirement Plan Services, Department of Human Resources, providing an informational report detailing the Fiscal Year 2022 County pension contributions to the Milwaukee County Employees' Retirement System and the OBRA 1990 Retirement Plan.  (Considered by the Committees on Personnel and Finance)  (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)

 

Body

 

2022 Milwaukee County Pension Contributions

Milwaukee County General Ordinance Chapter 201.24, Section 3.1 “budget year contributions <https://library.municode.com/wi/milwaukee_county/codes/code_of_ordinances?nodeId=MICOCOGEORVOII_CH201COEMRESY_SIIICO_3.1COCO>” requires that the Milwaukee County Pension Board “furnish to the County Executive, prior to June 1 of each year an estimated budget contribution required by the County, including contributions required under Section 3.3, to pay the following year’s cost and to amortize the amount of the unfunded obligation of the County…” and that the County Executive “…submit an informational report to the committees on finance and audit and personnel for consideration during the June committee cycle, providing for an estimated contribution amount for the next year's budget…”

The attached letter from the Milwaukee County Pension Board, signed by Pension Board Chairman David Robles is provided in accordance with the above-mentioned provisions of Section 201.24(3.1) and is informational only at this time. Action on this item will be requested as part of the 2022 budget hearings and adoption process.

The letter reflects the following:

                     The County should budget $74,441,000 (inclusive of employee contributions) for an annual pension contribution in 2022:

o                     $74,238,000 for ERS

o                     $203,000 for OBRA

                     The fund’s investment return in 2020 was 10.71%

                     The recommended employee contribution rates for 2022 are:

o                     6.1% for General Employees

o                     9.9% for Public Safety Employees

                     The funded ratios of the pension systems are as follows:

o                     75.3% for ERS

o                     94.6% for OBRA

Please let me know if you have any questions.