FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Segal Consulting’s Actuarial Valuation and Related Reports as of June 30, 2026
RECOMMENDATION:
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Approve Segal Consulting’s Actuarial Valuation and Review, and related reports, as of June 30, 2026; approve employer and employee contribution rates commencing in July 2027.
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BACKGROUND:
SBCERA’s consulting actuary, Segal Consulting, prepared these reports in accordance with generally accepted actuarial principles and practices at the request of the Board to assist in administering the Plan. The census and financial information is provided by SBCERA staff, and the reports are prepared annually.
The Valuation provides that SBCERA’s funded ratio on the basis of the market value of assets is 91.6%; on the basis of the smoothed actuarial value of assets, the funded ratio stands at 89.9% as of June 30, 2026.
Included within the Valuation and Review are the proposed employer and employee contribution rates, which, if approved by the Board, would commence in July 2027. Included within the Survivor Benefit Valuation is a recommendation to increase the current rate of $0.91 to $0.98 for both employers and members.
Molly Calcagno from Segal will present the reports at the Board meeting.
BUDGET IMPACT:
Costs for this item are included in the current year administrative budget.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Exhibit A: Actuarial Valuation and Review as of June 30, 2026
Exhibit B: Survivor Benefit Valuation as of June 30, 2026
Exhibit C: GASB 67 Actuarial Report as of June 30, 2026