Charles County Sheriff’s Office Retirement Plan April 16, 2019 County Commissioners’ Meeting Charles County Sheriff’s Office | 1
Change for Consideration ▪ Recommended investment return reduction ▪ Decrease investment return assumption from 7.50% to 7.40% ▪ Revisit this assumption each year and consider further reductions Charles County Sheriff’s Office | Tuesday, April 16, 2019 | 2
Survey of Return Assumptions ▪ Investment return assumption is the most important assumption ▪ Charles County lowered return assumption for the SORP from 8% to 7.75% in 2010 and to 7.5% in 2016 ▪ National Median Assumption was 8% until 2012 and now at 7.25% ▪ 2019 NASRA Survey ▪ <1% of plans above 8% (was 28% in 2008) ▪ 60% below 7.5% (was 5% in 2008) ▪ Assumptions continue to fall ▪ Most MD Counties use between 7.0% and 7.5% ▪ State is at 7.5% and going to 7.45% Charles County Sheriff’s Office | Tuesday, April 16, 2019 | 3
Investment Returns LOCAL NATIONAL County Discount Rate Anne Arundel County 7.45% Baltimore County 6.375% Caroline County 7.05% Carroll County 7.00% Cecil County 7.00% Frederick County 7.00% Harford County 7.00% Howard County 7.45% St. Mary’s County 7.25% Charles County Sheriff’s Office | Tuesday, April 16, 2019 | 4
County Contributions Amount Percentage of payroll FY2020 $12,430,987 1 32.6% FY2019 $11,892,250 31.6% FY2018 $11,794,515 31.7% FY2017 $10,844,615 32.5% FY2016 $10,589,724 30.7% FY2015 $10,401,723 31.8% FY2014 $9,822,863 31.1% 1 Includes $473,406 increase to lower 7.5% assumption to 7.4% Charles County Sheriff’s Office | Tuesday, April 16, 2019 | 5
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