October 16, 2017
2223 E. Wellington Avenue #100
Santa Ana, CA 92701
Good afternoon Mr. Chairman and Board,
The actuary, Paul Angelo, presented three recommended options to the Board and all of which included changing to generational mortality. AOCDS does not agree with the recommendations, based on a lack of credible data on the new generational mortality rate table and because of the sporadic changes in these rates. We believe we should remain with static mortality tables, but with the most updated version, until generational tables are more accurate on life expectancy and give us a better long-term prediction.
Of the three recommended options being presented to the OCERS Board of Directors, AOCDS recommends a three-year phase-in that gives the county and contract cities’ better control of their budgets and reduces the impact to public safety. Public safety pensions are receiving the largest increases mostly due to new generational mortality tables and this will have the largest effect on police and fire services in these cities and the county. It’s unfortunate that more contract cities are not present at the OCERS Board meeting to stress this point.
Tom Dominguez, President