Title
Adoption of Resolution to Adopt the Revised Pension Rate Stabilization Program (PRSP) and Other Post-Employment Benefits (OPEB) Funding Policy. (Finance 10024051)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
In September 2017, City Council authorized a revision of the Pension Rate Stabilization Program and Other Post-Employment Benefits Funding Policy (Policy). The main revision to the Policy at that time was to clarify the amount the City of Alameda (City) would contribute to either a Trust Fund for future CalPERS or OPEB payments, or to directly pay down the CalPERS unfunded liability.
At this time, we would like to bring forward to City Council language in which to clarify even further the amount the City will contribute to these pension and OPEB liabilities or Trust Fund assets.
BACKGROUND
The City in partnership with its employees have taken several steps to manage and reduce its pension and Other Post-Employment Benefits (OPEB) liabilities and costs. Since this Policy was enacted in October 2017, more than $30 million in additional funding has gone towards the CalPERS Plan Assets, and over $11.5 million in additional funding has gone towards the City's Public Agency Retirement Services (PARS) Section 115 Trust Funds used to set aside funds for long-term OPEB and retirement system costs, as shown below.
Fiscal Year
CalPERS Advance Payment
Pension Trust (720) Contributions*
PARS Section 115 Trust Contributions
Total
2016-17
$ -
$ 250,000
$ 250,000
$ 500,000
2017-18
$ 10,695,052
$ 3,325,016
$ 3,000,000
$ 17,020,068
2018-19
$ 6,142,000
$ 2,047,172
$ 500,000
$ 8,689,172
2019-20
$ -
$ 733,998
$ 250,000
$ 983,998
2020-21
$ 7,546,500
$ 2,515,500
$ ...
Click here for full text