Title
Recommendation to Receive an Informational Report on Other Post-Employment Benefits. (Finance 10024051) [Continued from June 4, 2024]
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
In February 2024, City Council received a presentation on the funded status of the CalPERS Pension liability and the Pension Rate Stabilization Policy. At that time, staff stated their intentions to bring to City Council an update on the Other Post-Employment Benefits (OPEB) status of the City.
The City of Alameda offers OPEB to retired staff via two OPEB Plans - OPEB (Pre-2019) and OPEB (Post-2019). At this time, staff is bringing an update of the financial position and funded status of these OPEB plans.
BACKGROUND
The purpose of this informational staff report is to provide a comprehensive analysis of the current funding status of the City OPEB plans. The underfunded OPEB plans pose a financial challenge that continues to require attention and strategic planning.
The City has partnered with GovInvest, a leading consultant in pension and OPEB planning, in order to help the City clarify its current position and options for the future. They have prepared a short presentation including OPEB basics, current funding status, and funding projections.
DISCUSSION
The City provides medical and dental employer defined benefit health benefits to retirees through CalPERS as specified below under the City of Alameda Miscellaneous and Pre-1/1/2019 Safety OPEB Plan and the City of Alameda Post-1/1/2019 Safety OPEB Plan, agent multiple- care plans. The City is responsible for establishing and amending the funding policy of the Plans.
Prior to July 1, 2018, the City had one OPEB Plan, but active Safety employees as of January 1, 2019 transferred to the new Post-1/1/2019 Safety OPEB Plan.
Unfunded Liability:
The Unfunded Liability refers to the shortfall the City has be...
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