HomeMy WebLinkAboutAgreement A-21-424 Mutual Release and Satisfaction of Claims.pdf{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 1 of 14
MUTUAL RELEASE AND SATISFACTION OF CLAIMS
THIS MUTUAL RELEASE AND SATISFACTION OF CLAIMS (“Agreement”) is
made and entered into this ____ day of _____________________, 20___, by and between the
California Electronic Recording Transaction Network Authority (“CERTNA”) and County of
Santa Cruz, County of San Joaquin, County of El Dorado, County of Fresno, County of Madera,
County of Merced, County of Monterey, County of Santa Clara, County of Shasta, the County of
Solano (each a “CERTNA Member” or collectively, “CERTNA Members”). CERTNA and
CERTNA Members shall be each individually a “Party” and collectively the “Parties”). There are
no other parties to this Agreement.
RECITALS
A.In 2007, the Boards of Supervisors of the Counties of San Bernardino and Kern
approved the formation of a Joint Powers Agreement to create CERTNA.
B.CERTNA was formed for the joint development, implementation and operation of
a system for the electronic recording of real property-related legal documents under
the authority of the Electronic Recording Delivery Act of 2004.
C.On July 24, 2008, the Board of Directors of CERTNA adopted Resolution 2009-
001 to have its employees become members of the San Bernardino County
Employees’ Retirement Association (“SBCERA”), which provides employees of
participating employers with retirement and related benefits.
D.After adoption of CERTNA Resolution 2009-001, employees of CERTNA became
members of SBCERA in accordance with County Employees’ Retirement Law Act
of 1937 as set forth in Title 3, Division 4, Part 3, Chapter 3 (beginning with section
31450) of the California Government Code.
E.CERTNA ceased membership with SBCERA effective June 30, 2021.
F.The withdrawing members of CERTNA with a withdrawal date of June 30, 2021
are the following Counties: County of San Joaquin, County of Fresno, County of
Madera, County of Merced, County of Santa Clara, County of Shasta and County
of Solano.
G.The County of San Bernardino, withdrew as a CERTNA member effective June 30,
2020.
H.In 2020, CERTNA notified SBCERA of its intent to explore a possible withdrawal
as a participating employer of the system by terminating its agreement with
SBCERA.
30th June 21
Agreement No. 21-424
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 2 of 14
I. CERTNA requested SBCERA proceed with actuarial calculations to determine the
liability for termination of membership from SBCERA under General Policy No.
2020 – Participating Employer Termination and Terminal Funding Policy.
J. SBCERA, through its actuary Segal on February 2, 2021, provided CERTNA a
draft termination study with an estimated termination liability as of March 31, 2021.
K. On March 25, 2021, the CERTNA Board approved CERTNA Resolution 2021-003
to withdraw as a participating employer from SBCERA.
L. On April 7, 2021, the CERTNA Board amended CERTNA Resolution 2021-003
to: establish an effective date for withdrawing as a participating member from
SBCERA as of June 30, 2021; provide that current, withdrawing and former
members will be liable for their proportional shares of CERTNA’s unfunded
pension liability obligations associated with withdrawal from SBCERA; and
authorize a lump sum payment from CERTNA to SBCERA for the total liability
owed.
M. Section 11 of the Joint Powers Agreement to create CERTNA provides that
withdrawing members of CERTNA remain liable for and shall pay their
proportional shares of any indebtedness incurred while they were members of
CERTNA, and such indebtedness includes CERTNA’s unfunded pension liability
associated with CERTNA’s withdrawal from SBCERA.
N. At the April 22, 2021 CERTNA Board meeting, the CERTNA Board approved an
allocation of CERTNA’s unfunded pension liability obligations associated with
CERTNA’s withdrawal from SBCERA among its current, withdrawing and former
members based on share of services received from CERTNA, based on the
estimated termination liability and subject to change to reflect the final amounts to
be determined by SBCERA.
O. Segal calculated CERTNA’s funding obligation as of the termination date of June
30, 2021, using a market valuation approach to be Two Million Five Hundred
Twenty-Five Thousand One Hundred Twenty-One Dollars ($2,525,121.00) in
unfunded liabilities for all of CERTNA’s employees, current and former, including
all benefits except those provided by the Survivor Benefit Reserve, for which
CERTNA’s obligation is $0 because it has no beneficiaries receiving payments
from that reserve. The final valuation from SBCERA and allocation of unfunded
pension liability for CERTNA Members is contained in Segal’s termination study
dated May 27, 2021 as set forth and incorporated herein as Exhibit A. The final
allocation of unfunded pension liability for CERTNA Members is set forth in
Exhibit B, “Proportional Allocation of CERTNA’s Unfunded Pension Liability
Obligations Among the Parties.”
P. CERTNA, the County of San Bernardino, and the County of Kern have executed
separate agreements, each entitled “Settlement Agreement and Full Release of All
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 3 of 14
Claims” memorializing the allocation of unfunded pension liability obligations as
to the County of San Bernardino and the County of San Bernardino respectively,
associated with CERTNA’s withdrawal from SBCERA. These settlement
agreements also discharge any remaining debt arising from loans from the County
of San Bernardino and the County of Kern to CERTNA as initial funding for
CERTNA and fully compromise, settle and discharge all existing and future claims,
complaints, charges, controversies, demands, actions or causes of action, known
and unknown amongst the County of San Bernardino, the County of Kern, and
CERTNA, and its members or former members relating to CERTNA’s unfunded
pension liability obligations resulting from CERTNA’s withdrawal from SBCERA.
Q. The Parties to this Agreement have agreed to the allocation of unfunded pension
liability obligations associated with withdrawal from SBCERA, and the Parties
wish to enter into this Agreement and fully compromise, settle and discharge all
existing and future claims, complaints, charges, controversies, demands, actions or
causes of action, known and unknown, that the Parties may have or claim to have
against each other relating to CERTNA’s unfunded pension liability obligations
resulting from CERTNA’s withdrawal from SBCERA.
NOW, THEREFORE, in consideration of the foregoing recitals, which are hereby
adopted as terms of this Agreement, the promises and the mutual covenants herein contained, and
for other good and valuable consideration, the receipt and sufficiency of which is acknowledged
by each Party, each Party to this Agreement hereby agrees as follows:
AGREEMENT
Section 1. Recitals. The recital set forth above are expressly incorporated as terms of this
Agreement. In the event of any conflict between the Recitals above and Sections 1 through 17 of
this Agreement, Sections 1 through 17 shall prevail.
Section 2. Mutual Release of Retirement Obligation Liabilities. For and in consideration
of each CERTNA Members’ making a lump sum payment to CERTNA in the amounts allocated
to each CERTNA Member as set forth in the unfunded liability invoices as set forth and
incorporated in Exhibit C “Invoices for Proportional Shares of Unfunded Pension Liability”
within ten (10) days of the Effective Date, and upon such payment by all CERTNA Members as
satisfaction of each CERTNA Member’s obligation to pay a proportional share of CERTNA’s
unfunded pension liability obligations arising from CERTNA’s withdrawal from SBCERA, the
Parties agree to release each other and their staff owners, personnel, employees, agents, servants,
consultants, representatives, employees, officers, directors, subsidiaries, partners, affiliates,
attorneys, accountants, assigns, and predecessors and successors in interest, of and from any and
all claims, demands, liens, obligations, rights, actions, causes of action, loss of profits, damages
related to CERTNA’s unfunded pension liability arising from CERTNA’s withdrawal from
SBCERA and each CERTNA Member’s obligation to pay a proportional share of CERTNA’s
unfunded pension liability arising from CERTNA’s withdrawal from SBCERA.
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 4 of 14
Section 3. Mutual Release of Unknown Claims. The Parties, on their own behalf and all
others on whose behalf they execute this Agreement, understand and agree that this Agreement
extends to all claims arising from CERTNA’s unfunded pension liability arising from CERTNA’s
withdrawal from SBCERA and each CERTNA Member’s obligation to pay a proportional share
of CERTNA’s unfunded pension liability arising from CERTNA’s withdrawal from SBCERA of
any kind or nature, past, present, or future, known or unknown, suspected or unsuspected,
including without limitation such claims, liabilities, injuries, damages, and causes of action that
the Parties do not presently anticipate, know, reasonably should have known, or suspect to exist,
but that may develop, accrue, or be discovered in the future. The Parties further understand and
agree that this Agreement constitutes an express waiver of any and all rights or claims arising from
CERTNA’s unfunded pension liability arising from CERTNA’s withdrawal from SBCERA and
each CERTNA Member’s obligation to pay a proportional share of CERTNA’s unfunded pension
liability under Section 1542 of the California Civil Code (“CCP 1542”), which provides:
CALIFORNIA CIVIL CODE SECTION 1542 RELEASE
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE
AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED
PARTY.
Section 4. Effective Date. This Agreement shall become effective once all of the Parties have
executed the Agreement (the “Effective Date”).
Section 5. No Assignment. Each Party represents and warrants that neither it, nor any of its
directors and officers, agents, predecessors and successors in interest, assigns, affiliates,
beneficiaries and all those claiming by through or under it, have assigned or transferred or
purported to transfer or assign any matter herein released to a party not bound by this Agreement.
Section 6. Advice of Counsel. Each Party acknowledges that it has read this Agreement and
assents to all of the terms and conditions contained herein without any reservations whatsoever
and that it has had the opportunity to have the same explained to it by its own respective counsel.
Each Party further warrants, represents and agrees that it is not relying upon and have not relied
upon any representation or statement made by the other Parties or their attorneys, including
CERTNA’s counsel, with respect to the facts involved or with respect to their rights or asserted
rights except as are contained in this Agreement.
Section 7. Entire Agreement. This Agreement constitutes a single integrated contract and
contains all representations and the entire understanding of the Parties with respect to the matters
described and released herein and supersedes all prior written and oral agreements, express or
implied, that exist or may exist between the Parties with respect to the matters described and
released herein.
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 5 of 14
Section 8. Modification. This Agreement may be modified only by a written instrument
signed by all of the Parties, or their authorized representatives.
Section 9. Waiver. No waiver of any provision of this Agreement shall constitute a waiver
of any other provision, nor shall such waiver constitute a continuing waiver.
Section 10. Binding on Successors. This Agreement shall be binding upon and inure to the
benefit of the Parties and their representatives, successors, alter egos, related entities and assignees.
Section 11. Further Documents. The Parties shall, at the reasonable request of the other,
execute, acknowledge and deliver whatever additional instruments, and do such other acts, as may
be required or convenient to carry out the intent and purpose of this Agreement, if any.
Section 12. Governing Law/Venue. This Agreement shall be governed by and construed under
and in accordance with the laws of the State of California. Venue for all legal proceedings related
to this Agreement shall be in the Superior Court of California in the County of Kern, California.
Section 13. Construction. As used in this Agreement, the masculine, feminine or gender
neutral, and the singular or plural number, shall each be deemed to include the others whenever
the context so indicates. Preparation of this Agreement has been a joint effort of the Parties and
the resulting document shall not be construed more severely against one of the Parties than against
the other. This Agreement shall be construed without regard to the Party or Parties responsible for
its preparation and shall be deemed to have been prepared jointly by the Parties. The Parties agree
that the rule of construction to the effect that any ambiguities are to be or may be resolved against
the drafting party shall not be employed in the interpretation of this Agreement to favor one party
against the other.
Section 14. Severability. Should any court of competent jurisdiction provided for herein
determine that any term, provision or portion of this Agreement is invalid, illegal, void or
unenforceable, such term, the Parties shall use best efforts to redraft the provision or portion to
effect the intentions of the Parties hereto. To the extent such redrafting is impossible, the affected
term, provision or portion shall be deleted from this Agreement and the Agreement shall be read
as though such term, provision or portion of the Agreement was never included and the remainder
of this Agreement, excluding such term, provision, or portion shall continue in full force and effect.
Any determination, redrafting or deletion called for hereunder shall not affect the validity or
enforceability of any other term, provision, or portion of this Agreement, and the rest of the
Agreement shall remain in full force and effect.
Section 15. Attorney Fees. In the event that either Party brings an action for breach or
enforcement of this Agreement, whether such action seeks damages, declaratory relief, specific
performance or any other remedy, the prevailing Party in such action shall be entitled to its costs,
including reasonable attorney’s fees, whether or not such action is prosecuted to judgment
Section 16. Counterparts. This Agreement may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, and such counterparts shall together
constitute one and the same Agreement.
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 6 of 14
Section 17. Authority to Execute. Each of the signatories below represents that he or she is
authorized to execute this Agreement on behalf of the entity or person named, and to bind such
entity or person to the terms of this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 7 of 14
IN WITNESS WHEREOF, this Agreement has been entered into by and between the
Parties as of the Effective Date.
CERTNA
By:
Sean Saldavia, Chairperson, Board
of Directors
Date Signed:
Approved as to Form:
By:
Nubia I. Goldstein, General Counsel
THE COUNTY OF SANTA CRUZ:
By:
Its: _________________________________
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
THE COUNTY OF SAN JOAQUIN:
By:
Its: _________________________________
Date Signed: ___________ _
Approved as to Form:
By: ---------------
--------' County Counsel
THE COUNTY OF EL DORADO:
By: ___________ _
Its: ---------------
Date Signed: ___________ _
Approved as to Form:
By: ------------
--------' County Counsel
:;E C°2Jjt;;SNO:
Steve Brandau, Chairman of the Board of
Supervisors of the County of Fresno
Date Signed: ~ A o).OQ.\
I
Attest:
{CWI02602 .13}
ATTEST:
BERNICE E. SEIDEL
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 8 of 14
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 9 of 14
Bernice E. Seidel
Clerk of the Board of Supervisors
County of Fresno, State of California
By:
Deputy
THE COUNTY OF MADERA:
By:
Its: _________________________________
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
THE COUNTY OF MERCED:
By:
Its: _________________________________
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 10 of 14
THE COUNTY OF MONTEREY:
By:
Its: _________________________________
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
THE COUNTY OF SANTA CLARA:
By:
Its: _________________________________
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
THE COUNTY OF SHASTA:
By:
Its: _________________________________
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 11 of 14
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
THE COUNTY OF SOLANO:
By:
Its: _________________________________
Date Signed:
Approved as to Form:
By:
__________________, County Counsel
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 12 of 14
EXHIBIT A
SBCERA CERTNA TERMINATION STUDY – TERMINATION OBLIGATION AS OF
JUNE 30, 2021
5690263v3/05111.002
180 Howard Street
Suite 1100
San Francisco, CA 94105-6147
T 415.263.8200
segalco.com
May 27, 2021
Ms. Debby Cherney
Chief Executive Officer
San Bernardino County Employees’ Retirement Association
348 W Hospitality Lane, Third Floor
San Bernardino, CA 92415-0014
Re: San Bernardino County Employees' Retirement Association (SBCERA)
CERTNA Termination Study – Termination Obligation as of June 30, 2021
Dear Debby:
As requested, we have calculated CERTNA’s (the “District”) obligation to SBCERA based on a
termination date of June 30, 2021.
Termination Conditions
According to SBCERA, the District currently has two members. As of the termination date, one
member is expected to be a retiree while the other is expected to be a terminated vested
member. SBCERA would retain the obligation to provide benefits to both members as of the
termination date of June 30, 2021.
Data Used in This Calculation
This study is based on the information we collected and calculated in our most recent actuarial
valuation for SBCERA as of June 30, 2020. In this study, we determined a proportional share of
the assets for the District as of June 30, 2020 by following the same procedures used in prior
termination studies for SBCERA. As detailed below, that methodology is used for determining
the assets for all benefits except those provided by the Survivor Benefit Reserve.
In order to project the District’s assets and liabilities to June 30, 2021, we have also collected
the following additional information from SBCERA:
• Actual net market value rate of return information from July 1, 2020 through
March 31, 2021.
• Actual contributions of $226,729 made by the District and its employees for the period
from July 1, 2020 through March 31, 2021 and expected contributions of $47,603 to be
Ms. Debby Cherney
May 27, 2021
Page 2
5690263v3/05111.002
made by the District and its employees for the period from April 1, 2021 through
June 30, 2021.1
• Data on both members from the District as of June 30, 2021.
Based on the above information, we have projected the allocated assets of the District from
July 1, 2020 to June 30, 2021. The assets have been projected using the actual return of 24.7%
for the period from July 1, 2020 through March 31, 2021 as reported to us by SBCERA. We
have been directed by SBCERA to project the assets for the period from April 1, 2021 through
June 30, 2021 using a return of 0.0%.2
Funding Obligation Settlement Conditions
Based on the “Participating Employer Termination and Terminal Funding Obligation” policy
adopted by SBCERA, a market based approach is used in determining the District’s funding
obligation as of the termination date. Under this approach, there would be no reassessment of
the benefit liability after the District’s termination date of June 30, 2021.
This approach dictates the use of the market value of assets and requires a valuation of the
liabilities on a market-consistent basis. Under this approach, the liabilities for retirees and
terminated members will be calculated using the actuarial assumptions for the June 30, 2020
actuarial valuation, except that future benefit payments will be discounted to the termination
date using a market based discount rate. The market based discount rates for this purpose are
the discount rates used by the Pension Benefit Guaranty Corporation (PBGC) to measure the
sufficiency of assets for a terminating single-employer (non-public) defined benefit pension plan.
As directed by SBCERA, we have used the rates as of March 2021,3 published by the PBGC for
discounting expected benefit payments from pension plans, which are 1.69% per annum for the
next 20 years and 1.66% per annum thereafter.
Results and Methodology Used in Calculation
The results under the “Market Valuation” approach are shown in Attachment A. We have
determined that the District’s funding obligation as of the termination date using the “Market
Valuation” approach is $2,525,121 in unfunded liability for all benefits except those provided by
the Survivor Benefit Reserve. The District’s funding obligation associated with the Survivor
Benefit Reserve is $0 since the District has no beneficiaries receiving payments from that
reserve.
1 Historically, Segal has used the actual contributions from the most recent actuarial valuation date (June 30, 2020) through the
termination date. However, we have been directed by SBCERA to use the actual contributions for the period June 30, 2020
through March 31, 2021 and the expected contributions for the period April 1, 2021 through June 30, 2021.
2 SBCERA’s “Participating Employer Termination and Terminal Funding Obligation” policy states that the assets should be
projected to the termination date using “the net rate of return on the market value of SBCERA’s total assets from the most recent
actuarial valuation date to the date of the participating employer’s termination.” However, we have been directed by SBCERA to
use the actual return from the most recent actuarial valuation date (June 30, 2020) through March 31, 2021 and a rate of return of
0.0% from April 1, 2021 through June 30, 2021. Thus if SBCERA experiences a negative return for the period April 1, 2021
through June 30, 2021, the District’s funding obligation in this letter would be understated.
3 Historically, Segal has used the PBGC rates as of the termination date. However, we have been directed by SBCERA to use the
PBGC rates as of March 2021.
Ms. Debby Cherney
May 27, 2021
Page 3
5690263v3/05111.002
From discussions with the District, we were informed that one of the members included in the
determination of the District’s funding obligation had prior service while serving as an employee
of the County. As directed by SBCERA, we allocated the District’s funding obligation for this
member by prorating the unfunded liability by the ratio of the years of service with the District to
the total years of service with both the District and the County.
Any net unfunded liabilities at termination are generally required to be paid by the District as a
lump sum, although the Board of Retirement may have the authority to allow for the obligation to
be paid for over a period of installments. We defer to SBCERA as to whether an installment
period is legally permitted. If it is permitted and SBCERA is interested in allowing installment
payments, then we can provide information on the payments that would be required over
various possible installment periods. Also, if there is a significant delay beyond the proposed
termination date of June 30, 2021 in the payment of the funding obligation, then we recommend
that the funding obligation be adjusted to reflect interest until the actual payment date.
These calculations were based on the June 30, 2020 actuarial valuation results, rate of return
information from July 1, 2020 through March 31, 2021 and data noted earlier for contributions
and District membership. The actuarial valuations were directed under the supervision of
Molly Calcagno, ASA, MAAA, Enrolled Actuary. We are members of the American Academy of
Actuaries and we meet the Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion contained herein.
Please let us know if you have any questions.
Sincerely,
Paul Angelo, FSA, MAAA, FCA, EA
Senior Vice President & Actuary
Molly Calcagno, ASA, MAAA, EA
Actuary
/bbf
cc: Amy McInerny
Attachment A
5690263v3/05111.002
Table 1 Determination of Unfunded Actuarial Accrued Liability and Assets for CERTNA as of June 30, 2020
1 Actuarial Accrued Liability (AAL) for CERTNA as of June 30, 2020 Member #1 Member #2
Active Members $1,670,937 $209,246
Retirees 0 0
Total $1,670,937 $209,246
2 Determination of Unfunded Actuarial Accrued Liability (UAAL) for CERTNA as of June 30, 2020
i County General Cost Group UAAL as of June 30, 2020 $1,652,787,000 $1,652,787,000
ii County General Cost Group Projected Annual Payroll for 2020/2021 Plan Year 1,095,933,901 1,095,933,901
iii CERTNA Projected Annual Payroll for 2020/2021 Plan Year 236,399 130,167
iv UAAL Allocated to CERTNA as of June 30, 2020 (i * iii / ii)356,515 196,306
3 Determination of Actuarial Value of Asset (AVA) for CERTNA as of June 30, 2020 (Item 1 - Item 2iv)$1,314,422 $12,940
4 Determination of Market Value of Asset (MVA) for CERTNA as of June 30, 2020
i Total SBCERA MVA As of June 30, 2020 $10,287,333,860 $10,287,333,860
ii Total SBCERA AVA As of June 30, 2020 11,133,172,593 11,133,172,593
iii MVA for CERTNA as of June 30, 2020 (Item 3 * i/ii)1,214,559 11,957
Table 2 Estimate of Projected Accumulated Assets for CERTNA as of June 30, 2021
1 MVA for CERTNA as of June 30, 2020 (See Table 1)$1,214,559 $11,957
2 Determination of Projected Change in MVA From July 1, 2020 to March 31, 2021
i Employer Contributions from July 1, 2020 to March 31, 2021(1)$89,690 $28,656
ii Member Contributions from July 1, 2020 to March 31, 2021(1)100,047 8,335
iii Benefits Paid from July 1, 2020 to March 31, 2021(1)0 0
iv Total Cashflow from July 1, 2020 to March 31, 2021(1)$189,738 $36,991
3 Actual Net Return on Market Value from July 1, 2020 to March 31, 2021(2)24.7%24.7%
4 Determination of Projected MVA for CERTNA as of March 31, 2021 (Item 1 * (1+ Item 3) + Item 2iv * (1+ (Item 3)/2))$1,727,725 $56,470
5 Determination of Projected Change in MVA From April 1, 2021 to June 30, 2021
i Employer Contributions from April 1, 2021 to June 30, 2021(1)$29,664 12,970
ii Member Contributions from April 1, 2021 to June 30, 2021(1)1,227 3,742
iii Benefits Paid from April 1, 2021 to June 30, 2021(1)0 0
iv Total Cashflow from April 1, 2021 to June 30, 2021(1)$30,891 $16,712
6 Actual Net Return on Market Value from April 1, 2021 to June 30, 2021(3)0.0%0.0%
7 Determination of Projected MVA for CERTNA as of June 30, 2021 (Item 4 * (1+ Item 6) + Item 5iv * (1+ (Item 6)/2))$1,758,616 $73,182
Note:
1 Excludes Survivor Benefit contributions and benefit payments.
2 Based on unaudited financial information provided by the Association.
3 Based on direction from the Association, we have used a 0.0% return for the period April 1, 2021 to June 30, 2021.
"Market Valuation" Method For All Benefits Except Those Provided by the Survivor Benefit Reserve
Attachment A (continued)
5690263v3/05111.002
Table 3 Estimate of Unfunded Liability using Termination Basis for CERTNA as of June 30, 2021
1 Unfunded Liability using Termination Basis for CERTNA as of June 30, 2021
i Projected Assets as of June 30, 2021 (See Table 2, Item 7)$1,758,616 $73,182
ii Proportion of Projected Assets as of June 30, 2021 Attributable to CERTNA 0.652632 1.000000
iii Projected Assets as of June 30, 2021 Attributable to CERTNA (i * ii)$1,147,729 $73,182 $1,220,911
iv Present Value of Future Benefits as of June 30, 2021 Determined using Market Based Interest Rate(1)4,972,600 500,754
v Proportion of Present Value of Future Benefits as of June 30, 2021 Determined using Market Based Interest Rate(1)
Attributable to CERTNA 0.652632 1.000000
vi Present Value of Future Benefits as of June 30, 2021 Determined using Market Based Interest Rate(1) Attributable to CERTNA
(iv * v)$3,245,278 $500,754 $3,746,032
vii Unfunded Liability or (Net Asset) as of June 30, 2021 Attributable to CERTNA (vi - iii)(2)$2,097,549 $427,572 $2,525,121
Note:
1 Based on direction from the Association, we have used the discount rates based on the PBGC rates for March 2021 (1.69% for 20 years and 1.66% thereafter).
2 The District’s funding obligation associated with the Survivor Benefit Reserve is $0 since the District has no beneficiaries receiving payments from that reserve.
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 13 of 14
EXHIBIT B
PROPORTIONAL ALLOCATION OF CERTNA’S UNFUNDED PENSION LIABILITY
OBLIGATIONS AMONG THE PARTIES
CeRTNA Unfunded Pension Liability Allocation - With Finalized SBCERA BillingCounty Member 1 Member 2 Invoice Amount PercentageEl Dorado 57,494 17,935$75,4292.99%Fresno 301,277 47,850$349,12713.83%Kern 316,087 48,292$364,37914.43%Merced 38,643 12,224$50,8672.01%Monterey 69,750 19,675$89,4253.54%San Bernardino 515,234 99,988$615,22224.36%San Joaquin 188,570 44,443$233,0139.23%Santa Clara 491,619 96,787$588,40523.30%Santa Cruz 50,636 15,605$66,2412.62%Shasta 25,904 9,309$35,2141.39%Solano 35,871 13,109$48,9801.94%Madera 6,463 2,356$8,8190.35%Total through June 30, 2020 2,097,549 427,572 $2,525,121
{CW102602.13}
Release and Satisfaction of Claims
CERTNA and CERTNA Members
Page 14 of 14
EXHIBIT C
INVOICES FOR PROPORTIONAL SHARES OF UNFUNDED PENSION LIABILITY
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 75,429.00$ 75,429.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 75,429.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 75,429.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
360 Fair Lane
Bakersfield, CA 93301
1
July 27, 2021
ELDORADO
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Janelle Horne
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
El Dorado County Recorder
Janelle Horne
Placerville, CA 95667
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 349,127.00$ 349,127.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 349,127.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 349,127.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
Fresno County Recorder
Paul Dictos
Fresno, CA 93721
Contact
Paul Dictos
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
2281 Tulare Street, Room 201
Bakersfield, CA 93301
1
September 15, 2021
FRESNO
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 364,379.00$ 364,379.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 364,379.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 364,379.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
1115 Truxtun Avenue
Bakersfield, CA 93301
1
July 27, 2021
KERN
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Jon Lifquist
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Kern County Recorder
Jon Lifquist
Bakersfield, CA 93301
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 8,819.00$ 8,819.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 8,819.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 8,819.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
Madera County Clerk-Recorder
Rebecca Martinez
Madera, CA 93637
Contact
Rebecca Martinez
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
200 West Fourth Street
Bakersfield, CA 93301
1
July 27, 2021
MADERA
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 50,867.00$ 50,867.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 50,867.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 50,867.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
2222 M Street
Bakersfield, CA 93301
1
July 27, 2021
MERCED
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Mathew May
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Merced County Recorder
Mathew May
Merced, CA 95340
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 89,425.00$ 89,425.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 89,425.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 89,425.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
168 West Alisal Street, 1st Floor
Bakersfield, CA 93301
1
July 27, 2021
MONTEREY
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Steve Vagnini
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Monterey County Recorder
Steve Vagnini
Salinas, CA 93901
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 615,222.00$ 615,222.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 615,222.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 615,222.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
222 West Hospitality Lane
Bakersfield, CA 93301
1
July 27, 2021
SBERNARDINO
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Bob Dutton
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
San Bernardino County Recorder
Bob Dutton
San Bernardino, CA 92415
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 233,013.00$ 233,013.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 233,013.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 233,013.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
2281 Tulare Street, Room 201
Bakersfield, CA 93301
1
July 27, 2021
FRESNO
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Paul Dictos
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Fresno County Recorder
Paul Dictos
Fresno, CA 93721
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 588,405.00$ 588,405.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 588,405.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 588,405.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
70 W. Hedding ST, 1st Floor East Wing
Bakersfield, CA 93301
1
July 27, 2021
SCLARA
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Gina Alcomendras
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Santa Clara County Recorder
Gina Alcomendras
San Jose, CA 95110
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 66,241.00$ 66,241.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 66,241.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 66,241.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
701 Ocean Street, Room 230
Bakersfield, CA 93301
1
July 27, 2021
SCRUZ
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Carol Sutherland
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Santa Cruz County Recorder
Sean Saldavia
Santa Cruz, CA 95060
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 35,214.00$ 35,214.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 35,214.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 35,214.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
1450 Court Street, Suite 208
Bakersfield, CA 93301
1
July 27, 2021
SHASTA
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Leslie Morgan
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Shasta County Recorder
Leslie Morgan
Redding, CA 96001
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE
INVOICE NO.
DATE
TO
Period DUE DATE
Upon Reciept
QUANTITY LINE TOTAL
1.00 48,980.00$ 48,980.00$
Make checks payable to: CERTNA JPA Agency.SUBTOTAL 48,980.00$
Mail to: Ajaib Gill SALES TAX
Assessor-Recorder TOTAL 48,980.00$
1115 Truxtun Ave, 3rd Flr
Bakersfield, CA 93301
675 Texas Street, Suite 2700
Bakersfield, CA 93301
1
July 27, 2021
SOLANO
1115 Truxtun Ave. 3rd Floor
CUSTOMER ID
Contact
Marc Tonnesen
PAYMENT TERMS
Certna-SBCERA Pension
If you are paying by ACH please indicate on the memo line
DESCRIPTION
SBCERA Pension Liability through 6/3/2021
Solano County Recorder
Marc Tonnesen
Fairfiled, CA 94533
ACH : Wells Fargo Bank
CERTNA JPA
ABA # 121000248
Account # 4160101358
INVOICE