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Findings and Recommendations 2 findings
F1
Although it is consistent with generally accepted accounting practices, the unfunded liabilities are recorded in the notes of the financial statements which make it difficult to understand the totality of unfunded obligations for San Luis Obispo County.
Related Recommendations (1)
R1
The Pension Trust administrator and the Auditor-Controller-Treasurer should make available to the Board of Supervisors and the residents of San Luis Obispo County an additional simplified and transparent reporting of the totality of the county’s pension obligations.
F2
The county has a 30-year plan to fully fund the pension liability. It is unclear where the county currently stands in this planned recovery.
Related Recommendations (1)
R2
A balance sheet report should be provided showing year-to-year changes in the actuarial assets and liabilities to assist in tracking the progress of the plan.
Conclusions 1
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CL1Unfunded pension liabilities increased $25.2 million in 2012. Currently, the unfunded pension liability is $346 million and is predicted to increase over the next 10 years, depending upon actuarial assumptions.13 Although the liability is presently increasing, the county has an actuarial plan to reduce it to zero over a 30-year planned period (26 years remaining). Pension Obligation Bonds are used to prefund pension liabilities. Currently, these bond obligations are $115.6 million in principal and future interest payments approximate $124.4 million. In writing this report, the Grand Jury referred to two CAFRs and a Pension Actuarial Valuation Report. The Grand Jury found the data concerning unfunded pension liability and the associated bonds are available to the public. This information is recorded in the notes of the financial statements which make it difficult to understand the totality of the unfunded obligations. A clearer presentation of the 30-year plan to reduce the unfunded pension liability is lacking. An additional simplified and transparent pension document would be beneficial to the reader. 13 The January 1, 2013, actuarial report prepared by Gabriel, Roeder Smith & Company forecasts the unfunded liability increasing about the next 10 years and then decreasing to $1 million over the next 17 years. SLO County Pension 6/26/14 6
No Responses Found 1
Government entities assigned to respond to this report. No response documents have been linked in our database.
San Luis Obispo County
County