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Riverbank approves Section 115 pension stabilization trust participation and $1.5M initial plan setup
Summary
Council approved the city’s participation in a Section 115 pension stabilization trust and authorized staff to move forward with Keenan and Benefit Trust as the recommended providers, with an initial investment of $1.5 million to help manage the city's $10.2M unfunded accrued liability.
Riverbank — The City Council voted unanimously to authorize staff to establish a Section 115 pension stabilization trust with Keenan and Benefit Trust to help manage the city's CalPERS unfunded accrued liability (UAL). Assistant City Manager Tammy Alcantor said the city's assessed UAL was approximately $10.2 million (FY2024), and council had previously directed staff to pursue strategies to mitigate rapidly rising pension payments.
Alcantor summarized the evaluation of three trust providers (CalPERS, Keenan, and PARS) and said Keenan was recommended because of competitive fees, portfolio options, and recent performance. The council authorized staff to execute a participation agreement and a member agreement and noted an initial funding level of $1.5 million consistent with prior council guidance.
Next steps: staff will complete trust setup with the chosen trustee and investment adviser and report back on the trust structure and investment options. Any future contributions above the initial deposit will return to council for action.
