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From the Director of Retirement Plan Services, Department of Human Resources, providing an informational report detailing the Fiscal Year 2024 County Pension Contributions to the Milwaukee County Employee’s Retirement System and the OBRA 1990 Retirement Plan. (Considered by the Committees on Personnel; and Finance) (INFORMATIONAL ONLY UNLESS OTHERWISE DIRECTED BY THE COMMITTEE)
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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 2024 budget hearings and adoption process.
The letter reflects the following:
• The County should budget $78,130,000 (inclusive of employee contributions) for an annual pension contribution in 2024:
o $77,705,000 for ERS
o $425,000 for OBRA
• The fund’s investment return in 2022 was -9.3%
• The recommended employee contribution rates for 2024 are:
o 6.0% for General Employees
o 9.8% for Public Safety Employees
• The funded ratios of the pension systems are as follows:
o 77.5% for ERS
o 86.4% for OBRA
Please let me know if you have any questions.