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Resident questions rising URS net pension liability; committee suggests Utah Retirement Systems presentation
Summary
Resident Chris Pulver asked the committee to clarify the city—s net pension liability reported in the long-term debt footnote. Officials recommended inviting Utah Retirement Systems for a public presentation to explain the components of the liability.
During the public-comment period on Jan. 9, resident Chris Pulver asked for a clearer explanation of the city—s reported net pension liability related to Utah Retirement Systems (URS).
"When you have a net pension asset of 0, but yet a net pension liability of 1.4 million, where does it come from?" Pulver asked, calling the pension calculation "black magic" and saying he wanted greater transparency.
Mayor and finance staff responded that the auditors and finance team review URS— audited information when preparing the city audit, and they suggested inviting URS to make a presentation to the committee to explain the actuarial assumptions and drivers of the liability. "I asked Jamie to talk to the auditors and find out the components that caused that increase," the mayor said. Committee members added that common drivers include changes in assumed investment returns and salary/participant changes.
Jamie Jones said auditors review URS information and incorporate that into the city—s long-term liability footnotes. Committee members recommended arranging a URS presentation so members and the public can better understand funding status, actuarial assumptions and the implications for the city—s long-term obligations.
The committee did not make a formal decision during public comment but indicated staff would pursue a URS briefing for a future meeting.
