To: Honorable Mayor and Members of City Council
From: Donna Lee, Finance Director
Prepared By: Donna Lee, Finance Director
TITLE:
Title
CalPERS and OPEB Unfunded Actuarial Liability Update
LABEL
RECOMMENDED ACTION:
Recommendation
Receive a presentation on the City’s CalPERS and OPEB Unfunded Actuarial Liability.
Body
DISCUSSION:
Staff prepared the attached presentation in response to prior Council direction to evaluate options for accelerating repayment of the City’s unfunded pension liabilities. The presentation provides an overview of the City’s CalPERS and OPEB unfunded actuarial liabilities, summarizes the City’s current funding status, and outlines potential approaches for making additional contributions toward pension obligations. The presentation also discusses the City’s Section 115 trust and evaluates scenarios illustrating the potential cost savings and budget impacts associated with accelerated funding strategies. Staff’s recommended approach is to continue utilizing one-time funds, when available, to incrementally build the Section 115 trust and help manage future pension cost increases while maintaining long-term fiscal flexibility.
FINANCIAL IMPACTS:
None.
CEQA:
The Finance Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - CalPERS and OPEB Unfunded Actuarial Liability Presentation
NOTIFICATION:
None.