HomeMy WebLinkAboutMinutes - Corrections Officer Retirement Plan Board - 4/30/2019 MINUTES
ORO VALLEY CORRECTIONS OFFICER RETIREMENT PLAN(CORP)
LOCAL BOARD
REGULAR SESSION
APRIL 30,2019
KACHINA CONFERENCE ROOM
11000 N.LA CANADA DRIVE
ORO VALLEY,ARIZONA 85737
CALL TO ORDER AT OR AFTER 10:30 A.M.
Chair Carlene Kron called the meeting to order at 10:38 a.m.
ROLL CALL
BOARD MEMBERS PRESENT: Carlene Kron,Chair
Brett Sadovnick,Member
Michelle DeVault,Member
Dan Rhoads,Member
BOARD MEMBERS ABSENT: Roberta Hindenlang,Member
OTHERS PRESENT: Carrie Rowley,Local Board Secretary
Stacey Lemos,Administrative Services Director/CFO
AGENDA
1. REVIEW/APPROVAL OF REGULAR SESSION MINUTES FROM
DECEMBER 18,2018.
Correct the spelling of Member Sadovnick's name.
MOTION: Member Rhoads moved to approve the minutes as corrected
and was seconded by Member Sadovnick.
MOTION carried,4-0.
2. REVIEW AND DISCUSSION OF DECEMBER 2018 RELEASE OF THE
ACTUARIAL REPORT FOR TOWN OF ORO VALLEY DISPATCHERS.
Guest Stacey Lemos provided an overview of the actuarial report:
• Report is prepared every year for employers state-wide.It is an
actuarial study of over 200 employer plans which comprise this
multi-employer pension system.
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• The report is prepared by PSPRS(which manages CORP).Current
and historical actuarial reports are available online through the
PSPRS website.
• Reviewed components of the cover letter,executive summary,and
supporting tables.These statistics help determine the employer
contribution rate,funded status,and unfunded liability for the next
fiscal year.
• The Town of Oro Valley has three active members in CORP all in
Tier 1 or Tier 2.The Town's other dispatchers are in the ASRS
pension system.
• CORP has three main sources of income.Employer contributions
(fluctuate annually),employee contributions(fixed at 7.96%),and
investment income.
• Prior fiscal year employer contribution rate was 61.36%
• Fiscal year employer contribution rate is 59.94%for current year.
• Reviewed factors that contribute to the increase/decrease in
contribution rates.
• Review of funded status and unfunded liability and what contributes
to these figures.
o Payroll base(active members contributing)
o Ratio of active members to retirees or inactive members
o Economy(i.e.great recession)
Member Sadovnick asked Ms.Lemos if it was ok to have unfunded liability
since it is payable over a period of time versus all at once.Ms.Lemos
stated it is in part,but employers should watch anything below 50%
funded.
Ms.Lemos explained recent state legislature requiring municipalities to
adopt policies by July 1,2019 that will address decreasing unfunded
liability for PSPRS.This same legislature is not requiring policies
concerning CORP,because this system has fewer members and
underwent pension changes to help stabilize it.However,the Town may
wish to consider additional contributions(lump sums)to both PSRS and
CORP.The Town is also considering rolling CORP into the PSPRS policy.
Ms.Lemos offered to continue reviewing the CORP actuarial report on an
annual basis for the Board Members.All members were in favor of this
recurring review,and Member Devault requested it be flagged as a future
agenda item for the spring 2020 meeting.
FUTURE AGENDA ITEMS-BOARD MEMBERS MAY BRING FORTH FUTURE
AGENDA ITEMS(DISCUSSION IS LIMITED TO INFORMATION/CLARIFICATION
ONLY)
- Add actuarial report review to the spring agenda for 2020
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ADJOURNMENT
MOTION: Member DeVault moved to adjourn the meeting and was
seconded by Member Rhoads.
MOTION carried,4-0.
Meeting adjourned at 11:04 a.m.
Prepared by:
Carrie Rowley(/
Local Board Secretary
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of
the Corrections Officer Retirement Plan(CORP)Local Board of Oro Valley,Arizona
held on the 30th day of April,2019.I further certify that the meeting was duly called and
held and that a quorum was present.
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