Marin County Office of Education processed and produced 5,729 W-2 forms (last year it was 5,695) and will be available for distribution to all public school employees in Marin County on Monday, January 30 and Tuesday, January 31.
Health Care Reform: New Administration Issues Executive Order on Affordable Care Act (ACA)
Keenan& Associates prepared a brief regarding President Trump's Executive Order directing the Department of Health and Human Services and other agencies involved with administering the Affordable Care Act (ACA) to take steps to minimize the burdens placed on individuals, families, health care providers, insurers and purchasers of health insurance. Click here to view full brief.
Cal STRS to Consider Increasing Contribution Rates
In a move similar to that recently made by Cal PERS, Cal STRS will consider lowering its “discount rate” which would have the effect of increasing contributions for employers, employees and the state.
Under Assembly Bill (AB) 1469, the CalSTRS full-funding plan, both state and employer contribution rates can be increased by the CalSTRS Board in order to maintain the goal of reaching full funding of the retirement system by 2046.
For employers, current law increases contribution rates to 19.1% beginning July 1, 2020, and also gives the Board authority to increase rates to 20.1% beginning July 1, 2021, and to 20.25% beginning July 1, 2022, if necessary.
For the state, the contribution rate can also increase above its current 8.828% of payroll. The increases are limited to a 0.5% increase annually, but there is no upper boundary similar to the employer rate contribution. According to Milliman, assuming future returns are 7.25% each year, the State rate is expected to increase by 0.5% of payroll for each of the next 5 years.
For employees, the contribution rate would likely increase as well. Under the Public Employees’ Pension Reform Act, new CalSTRS members (hired after January 1, 2013) are required to pay at least half of the normal cost of the program. Based on the estimated normal cost provided by Milliman, these members’ contributions would increase by 0.5% effective July 1, 2017. About 20% of CalSTRS active members would be affected.
The CalSTRS Board will discuss this change at its February 1, 2017, meeting. Click here to view Fiscal Report.