DATE: April 19, 2022
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
CalPERS Pension Unfunded Accrued Liability (UAL) Update and Analysis of Restructuring Concepts
RECOMMENDATION
That the Council receives this report and considers whether a future agenda item is desired to direct staff to continue exploring pension restructuring options.
SUMMARY
The City has been diligent about monitoring changes at CalPERS over the last several years, providing regular updates to the Council Budget and Finance Committee (Committee) and Council, as well as factoring these changes into the City’s budget and projections. With interest rates at historically low levels, many agencies (>85) in California have recently restructured a portion of their UAL at significantly lower interest rates (vs. the 6.8% that CalPERS is charging the City on this debt) to achieve financial savings, enhanced budgetary predictability, and future fiscal sustainability. This presentation was originally presented to the Committee on March 16th, with unanimous guidance from the Committee to bring it forward to the full Council.
ATTACHMENTS
Attachment I Staff Report