TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: BP 360 - Actuarial Valuations
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider approving amendments to Board Policy 360 - Actuarial Valuations for Retirement Fund Policy.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Clear and concise policies help the Board and staff in assessing the financial status of the retirement fund in an efficient manner.
BUDGETARY/FISCAL IMPACT:
The proposed changes to the Board Policy will reduce the cost of the actuarial services contract that the District regularly procures. Staff estimates the savings could be over $10,000 per year.
BACKGROUND/RATIONALE:
The purpose of Board Policy 360 is to reconcile the requirements of Transit District Law with the plenary authority given to the Retirement Board by Proposition 162 to determine the District's contributions to the pension plan. It further covers the District's requirements for when it would do its own actuarial valuations and analyses. Staff last brought the policy for review with no amendments in August 2025. In the discussion at that meeting, staff noted that they planned to review the requirements in the policy since they seemed to be beyond what was legally required and overly thorough.
The main argument for reducing the required analyses in the policy is that for many years staff has not had any issues with or felt it necessary to reproduce the actuarial valuation and analyses from the Retirement Plan consultants. With this in mind, staff worked with outside counsel to review how the requirements in the policy could be reduced while keeping within the relevant statutes and still fulfilling the District's financial responsibilities. The revised policy in Attachment 1 is the result of thi...
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