ORDER NO. 30538 COST OF LIVING ADJUSTMENT FOR KERR COUNTY RETIREES Came to be heard this the 24th day of September, 2007, with a motion made by Commissioner Letz, seconded by Commissioner Oehler. The Court unanimously approved by vote of 4-0-0 to: Give the Retirees a 50% COLA as is within the current budget. 3 os 38 1• ~~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN (10) COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: Judge Tinley MEETING DATE: September 24, 2007 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action on any desired cost of living adjustment for Kerr County retirees under the Texas County and District Retirement System. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Judge Tinley ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: OFFICE: County Judge 5:00 PM previous Tuesday @ .M. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. COMPARISON OF TCDRS RATES BETWEEN CURRENT YEAR 2007 AND NEW FISCAL YEAR 2008 2007 2008 CURRENT PROPOSED RATE RATE BUDGETED RATE Employees 8.33% Group Term Life 0.28% Cola for Retirees 0.14% 8.20% 0.30% 0.14% Total Rate 8.75% 8.64% 8.90% YOUR COSTS Your employer contribution rate represents the percentage of payroll your organisation needs to contribute to fund future benefits for your current employees, former employees and retirees. To determine your plan cost for 2007: Your calculated contribution rate for 2007 Plus the rate for any COLA granted Tonal Required Rate (Add the two rates together) Divide by 100 to convert % to number Multiply by your 2007 estimated compensation for enrolled employees Your estimated annual plan cost x Example: County X has a calculated contribution rate of 7%. They have elected a COLA that will add 0.25% to their cost. With compensation for enrolled employees totaling $1> 000, 000, their annual cost would be calculated as follows: County X's calculated contribution rate 7. UU 9'0 Plus the rate for any COLA granted + .25 Total required rate 7.25 Divide by 100 to convert % to number .0725 COLAs must be re-authorized each year. They are not "automatic". If you wish to authorize a COLA for the next plan year, you can estimate the wst based on the schedule of rates below: 30% 40% ai 50% a 60% b v .~ 70% ~ 1°~ a ~ V S 80% ~u 2% 90% w 3% 100% 4°~ % of ayroll of pa roll Compensation for enrolled employees x 1,000,000 County X's estimated annual plan cost $ 72,500 For a historical perspective, below is a record of your rate history over the last four years. 10% 8% ^ Beginning Year Rate 6% ^ Ending Yeaz Rate 4°~ 2% 0% 2003-2004 2004-2005 2005-2006 2006-2007 REASONS FOR RATE CHANGE Beginning Rate 7.92% 7.97% 7.90% 7.60% Plan Changes Adopted 0.00 0.29 0.00 N/A Investment Return 0.19 -0.20 0.00 0.00 Elected Rate/Lump Sum 0.00 0.00 0.00 0.00 Demographic/Other Changes -0.14 -0.16 -0.12 -0.08 Assumptions/Methods 0.00 0.00 -0.18 0.60 Ending Rate 7.97% 7.90% 7.60% 8.12% A com lete Summary Valuation Report for the Dec. 31, 2005 valuation is available on the Web. 800-823-7782 * M/WW.TCDRS.ORC 3 Apr. 12,2006 Kerr County, #232 Authorization to maintain TCDRS plan provisions Plan year 2008 With respect to the participation of Kerr County in the Texas County & District Retirement System (TCDRS) for the 2008 plan yeaz, the following order was adopted: 1. Kerr County makes no change in the plan provisions for non-retirees. 2. With respect to annuities being paid to retirees or their beneficiazies, Kerr County (check one boa): does not adopt acost-of--living adjustment (COLA). adopts a % CPI-based COLA. adopts a % flat-rate COLA. 3. With no changes being made to the plan provisions for members for Plan Yeaz 2008, the required employer contribution rate for Plan Year 2008 will be the following: (a) Required rate without COLA: (b) COLA rate: 8.20% (enter 0 if not adopting a COLA) (c) Total required rate (a + b): _ 4. Employers may elect to pay a rate greater than the total required rate listed above. Kerr County adopts for Plan Yeaz 2008 (check one box): the total required rate listed above. add a new elected rate of %. 5. In the event the 2008 total required rate as set out above exceeds 11%, and if a current waiver of that limit is not on file with TCDRS, the Commissioners Court of Kerr County hereby waives the 11% limit on the rate of employer contributions and such waiver will remain effective with respect to future plan years until properly revoked by official action. Certification I certify that the foregoing authorization concerning the pazticipation of Kerr County in TCDRS for Plan Year 2008 truly and accurately reflects the official action taken during a properly posted and noticed meeting on , 2007, by the Commissioners Court of Kerr County as such action is recorded in the official minutes. County Judge of Kerr County Dated: 800-823-7782 * FAX: (S12) 328-8887 * WM/W.TCDRS.ORC Apr. 21.2007 June 7, 2007 Ms. Eva M Hyde Director of Human Resources Kerr County 700 Main St BA-104 Kerrville, TX 78028 Kerr County Optional Group Term Life Program Dear Ms. Hyde, TEXAS couNn: o,srn,es RETIitEM1ENT SVSTE M Past Office Box 2031 Austin, T% 7870$-203& (512)325-8589 800-823-7782 flax: {~12} 3?8-85$7 ti~c~vtcdrs.org Thank you for participating in the TCDRS Optional Group Term Life program. The table below shows your current coverage option and premium rates for 2007 and 2008. Current Coverage and Premium Rates for 2007 and 2008 Coverage Type 2007 Rate 2008 Rate Current Employees Only 0.28% 0.30% Please use the 2008 rate in your monthly report calculation starting with your January 2008 report. If you wish, effective the beginning of any month, you may change your Optional Group Term Life so that you cover both current employees and retirees. You also have the option of ending your participation in this program. If you wish to change your coverage or stop participating, please contact your TCDRS Communications representative for assistance. If you don't want to make any changes in your coverage, you do not need to respond. Sincerely, Melody O. Smith Decision Support System Analyst Trusters Robert A. F.ckds Bridget McDowell Jerry V. Bigham David R Haggury F.d Miles, Jr. Gerald "Buddy" Winn Chair Vicc-Chair H.C. °Chuck" Ca7alas Jan Kennady Bob Willis