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San Luis Obispo council redirects $2M earmark to CalPERS ADP, totaling roughly $4.5M in extra pension payment
Summary
Council voted 3–2 to apply $2 million previously assigned for a Section 115 prefunding trust toward an additional discretionary payment (ADP) to CalPERS, joining other one‑time ADP funds to produce roughly $4.5 million toward pension obligations. Council also unanimously approved closing the Section 115 account if doing so is cost‑neutral.
The San Luis Obispo City Council voted 3–2 on Tuesday to redirect $2,000,000 that had been assigned for a Section 115 pension prefunding trust into an additional discretionary CalPERS payment (ADP), increasing the city’s near‑term ADP to about $4.5 million.
City Manager McDonald and finance staff framed the choice to council as a trade‑off between an irrevocable, invested trust vehicle and making payments directly to CalPERS. "Deposits into the trust are irrevocable," Director Emily Jackson said, adding that the trust typically invests more aggressively than the city’s cash and therefore carries greater market risk as well as the potential for somewhat higher returns than city‑managed cash but…
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