Title:
Title
Fiscal Year 2017/18 Sacramento City Employees' Retirement System Annual Financial Report
End
FileID
File ID: 2018-01753
Location
Location: Citywide
Recommendation:
Recommendation
Receive and file.
Contact: Osvaldo Lopez, Accounting Manager, (916) 808-4740; Dawn Holm, Director, (916) 808-5574, Department of Finance
Body
Presenter: None
Attachments:
1-Description/Analysis
2-FY2017/18 SCERS Annual Financial Report
3-FY2017/18 SCERS Report to AIFM Board and City Council
Description/Analysis
Issue Detail: The Fiscal Year (FY) 2017/18 Sacramento City Employees’ Retirement System (SCERS) Annual Financial Report has been prepared by the Accounting Division and audited by external auditors to present the financial results of SCERS for the fiscal year that ended June 30, 2018. The June 30, 2018, Auditor’s Report to the Administration, Investment, and Fiscal Management Board (AIFM Board) and Members of City Council provides additional information about the FY2017/18 SCERS audit.
Policy Considerations: This report is consistent with the City’s fiscal transparency and accountability principles and is required by the AIFM Board Policy Statement.
Economic Impacts: None
Environmental Considerations: Not applicable.
California Environmental Quality Act (CEQA): This action is not a project subject to CEQA because it involves only organizational or administrative activities that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines §15378(b)(5)).
Sustainability: Not applicable.
Commission/Committee Action: The Fiscal Year 2017/18 Sacramento City Employees’ Retirement System (SCERS) Annual Report was presented to the Budget and Audit Committee on April 2, 2019. The Committee approved a Motion to forward the report to the City Council.
Rationale for Recommendation: It is in the best interest of the City Council to review the FY2017/18 SCERS Annual Financial Report and the June 30, 2018 Auditor's Report to the AIFM Board and Members of City Council, in order to understand the structure, obligations, and liabilities of the City’s SCERS retirement program:
• SCERS is a defined benefit plan in which retirement benefits for members (applicable City employees) are based upon age, final compensation, and length of service. In 1977, with the passage of Measure E, SCERS became a closed system. Since that time, all of the City’s full-time and eligible part-time employees participate in the California Public Employees’ Retirement System (PERS) rather than SCERS.
o As of June 30, 2018 the SCERS plan had 1,029 participants (11 active) with an average age of 64.2 and an average of 36.3 years of service with the City.
• Assets for SCERS are held in trust. Trust monies are used to pay benefits to plan participants and their beneficiaries. The trust is managed pursuant to the City Charter under the direction of the AIFM Board.
• The public accounting firm of Vavrinek, Trine, Day & Co., LLP has audited the SCERS FY2017/18 financial statements and has rendered its unmodified opinion that the financial statements are fairly presented in accordance with generally accepted accounting principles.
• The Auditor’s Report to the AIFM Board and Members of City Council provides communication required by audit standards and include statements specifying that there were no significant audit adjustments or disagreements with management in connection with this year’s audit.
Financial Considerations: The annual contribution from the City to SCERS of $7.5
million for FY2018/19 has been included in the approved budget.
Local Business Enterprise (LBE): Not applicable.