CalPERS report reveals funding details for agency pensions and investment returns

The Ross Valley Sanitary District is poised to enhance its financial stability following a detailed review of its pension funding strategies during a meeting on April 16, 2025. The district's financial advisors presented a comprehensive analysis of its contributions to the California Public Employees' Retirement System (CalPERS), revealing that the district is currently 69.4% funded, slightly below the state average of 71-72%. However, the district's PEPRA plan for employees hired after 2013 shows a stronger funding status at 86%.

A key highlight from the meeting was the district's proactive approach to managing pension costs. By making early payments to CalPERS, the district secures a discount on interest, effectively saving 3.4% annually. This strategy is part of a broader effort to control costs and ensure fiscal responsibility.

The district's financial health is further bolstered by its Pension 115 Trust, which currently holds approximately $7.9 million. This trust allows for flexible use of funds, enabling the district to manage cash flow effectively and potentially improve its funded status. Projections indicate that with the trust, the district could reach 100% funding by 2027, positioning it favorably compared to other agencies in California.

Investment returns also play a crucial role in the district's financial outlook. A reported 9.3% return for the year ending June 30, 2024, is expected to positively impact the district's unfunded liability, which is projected to decrease by about $600,000. However, the meeting underscored the importance of monitoring market fluctuations, as contributions may need to increase in response to any downturns in investment performance.

Overall, the discussions highlighted the district's commitment to maintaining a sustainable pension funding strategy while navigating the complexities of public employee retirement systems. As the district continues to implement these strategies, stakeholders can anticipate a more secure financial future.