TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Henry Mitzner, Controller
Libby Bretthauer, Financial Analyst
SUBJECT:Title
Adoption of Investment Guidelines for the New Pension Rate Stabilization Fund; Adoption of Funding and Distribution Policies for the City's Other Post-Employment Benefits (OPEB) and Pension Rate Stabilization Trust Funds (Finance Director Moe).
ADOPT GUIDELINES AND POLICIES
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Recommended Action
RECOMMENDATION:
The Finance Subcommittee and City Staff recommend that the City Council adopt investment guidelines for the new pension rate stabilization fund, and funding and distribution policies for the City's Other Post-Employment Benefits (OPEB) and pension rate stabilization trust funds.
FISCAL IMPLICATIONS:
The City's CalPERS pension contributions are expected to rise to $12 million by fiscal year 2021-2022. In an effort to address and stabilize rates, City Council approved the creation of a Pension Rate Stabilization Fund (PRSF). The FY 2016-2017 and FY 2017-2018 budgets allocated a combined $750,000 as an initial deposit into the trust fund. That deposit is pending City Council approval of investment guidelines and funding and distribution policies presented with this report.
BACKGROUND:
At its May 4, 2017 Budget Study Session meeting, City Council approved the creation of a Pension Rate Stabilization program (PRSP) and trust fund. At that time, City Council assigned to the Finance Subcommittee responsibility for the development of program investment guidelines and funding policies for full City Council review and approval. The guidelines and funding policies create the framework for the effective investment and utilization of trust funds.
By way of structure, the parties involved in the Trust include:
1. City Council
a. Establishes Trust
b. Defines policies for administration of trust (delegated ...
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