FY2022 Adopted Operating and Capital Budget

FY2022 Adopted Budget Fund Budgets

Pension Trust Uniformed Plan

Pension Trust Uniformed Plan The Frederick County Employees Retirement Plan was established in 1993. All full time and permanent part time employees of the county hired on or after July 1, 1993 and current employees who elected to transfer into the plan on that date are members of the plan. Effective July 1, 2021, the County will establish a separate plan, the Frederick County Uniformed Employees Retirement Plan. The trust assets will be allocated between the two plans, one for uniformed employees and the other for all other employees. Uniformed employees are required to contribute 9% of their base pay. Presented for informational purposes only and is not adopted by the County Council. Budget Highlights The following budget adjustments are reflected in FY22: The Actuarially Determined Contribution (ADC) is fully funded in the FY22 budget. When determining the ADC, there were three criteria/assumption changed: (1) The new DROP plan provisions which become effective July 1, 2021 for Uniformed participants, (2) The change in assumed retirement rates for Uniformed participants as a result of DROP implementation. The new retirement rates for Uniformed participants are the same as those used in our DROP study dated January 17, 2020. (3) A proposed modification to the County s plan funding policy to state that for each group separately (Uniformed and Non Uniformed) the County will contribute at least the actuarially determined contribution, but no less than two times the expected employee contributions as a percentage of total payroll. Also taken into consideration for the ADC, is the 3 rd year (of three) of the ad hoc cost of living adjustment to retirees who retired before January 1, 2019.

Funded Ratio

FY2019 Actual

FY2020 Actual

FY2021 Projection

FY2022 Projection

Note: The funded ratio is affected by different factors and can fluctuate from one year to the next even with funding ADC at 100% and with no substantive changes to the plan.

Combined Plan

104.1% 102.24% N/A N/A

Uniformed

N/A 99.7% 100.1% 99.1%

Employee's

N/A 103.7% 104.5% 103.5%

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