Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Newark council approves Section 115 trust with PARS, authorizes up to $12 million initial investment
Summary
Council voted unanimously to create an IRS-approved Section 115 pension trust administered by PARS and to commit up to $12 million of existing pension/OPEB reserves for initial funding; staff says the trust aims to reduce long-term pension costs and improve budget stability.
The Newark City Council on Oct. 24 voted unanimously to establish a Section 115 pension trust administered by Public Agency Retirement Services (PARS) and to fund the new trust with up to $12 million from the city's pension and OPEB reserve.
Finance Director Kristen Lee told the council the trust is intended to prefund pension liabilities and OPEB and to provide a pool that can earn higher net investment returns than CalPERS's pooled structure, potentially reducing long-term costs. Lee said the city's total pension liability to CalPERS is roughly $375 million with a funded ratio near 67 percent and an unfunded accrued liability of about $124 million; the city's pension and OPEB reserve has grown to roughly $13 million and staff proposed up to $12 million as an initial…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
