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HomeMy WebLinkAboutResolutions - 1990.02.08 - 16819February 8, 1990 MISCELLANEOUS RESOLUTION # 90006 BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: TREASURER AND DEPARTMENT OF MANAGEMENT AND BUDGET - FRINGE BENEFIT FUND BUDGET AMENDMENTS REFLECTING CHANGES IN ACTUARIAL ASSUMPTIONS AND METHODS TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: the County's Employee Retirement Trust Fund is currently determined to be in an aver-funded condition; and WHEREAS the County's Retirees' Hospitalization Trust Fund is currently determined to have a significant unfunded liability; and WHEREAS the County's Actuary, Gabriel Roeder, Smith and Company, was directed by the Retirement Commission to prepare several alternate actuarial valuations showing the effect of changes in the actuarial assumptions and methods used in computing system liabilities and related contributions; and WHEREAS upon review of the various alternates presented, the Retirement Commission at the December 5, 1989 meeting adopted the following Alternative Economic Assumptions: Present Alternative Interest 7.0% 7.5% Salary Base 5.5% 5.25% Spread 1.5% 2.25% Temporary Medical Inflation No Yes Funding Method Attained Age Entry Age WHEREAS the results of this action is to reduce the 1990 County contribution to the Retirement Fund while increasing the County's contribution to the Retirees' Hospitalization Trust Fund to bring said funding in line with actuarial funding requirements. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes the following Budget amendments to the Fringe Benefit Fund (73500) to reflect the changes in actuarial assumptions and methods adopted by the Retirement Commission: From: (4-73500-915-01-00-2077) Retirement Contribution Account 1990 $(3,307,243) 1991 $(3,672,163) To: (4-73500-915-01-00-2083) Retirees' Hospitalization Account $ 3,307,243 $ 3,672,163 -0- -0- Mr. Chairperson, on behalf of the Finance Committee 1 move adoption of the foregoing resolution. FINANCE COMMITTEE jp4\mrfringe Resolution # 90006 February 8, 1990 Moved by Caddell supported by Law the resolution be adopted. AYES: Ferrens, Gosling, Huntoon, Jensen, Johnson, R. Kuhn, S. Kuhn, Law, Luxon, McCulloch, McPherson, Moffitt, Oaks, Olsen, Pappageorge, Pernick, Price, Rewold, Skarritt, Wolf, Aaron, Bishop, Caddell, Calandro, Chester, Crake. (26) _ NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on February 8, 1990 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affi of Oakland at Pontiac, Michigan this 8th dayAVFehEa.1 1990 Lyng(D. Allen, County Clerk ed the seal of the County