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Los Gatos delays decision on roughly $3.1M pension trust transfer pending financial studies
Summary
Council members voted unanimously to postpone a planned decision on transferring about $3.1 million in a Section 115 trust into CalPERS, agreeing to wait for three pending studies — a fiscal condition analysis, a housing-element impact study and an asset-liability management review — with staff aiming to revisit the matter by June.
A Los Gatos Town Council OPEB committee meeting voted unanimously to delay consideration of a staff-backed recommendation to transfer roughly $3.1 million held in a Section 115 trust into the California Public Employees' Retirement System (CalPERS).
A staff member presenting the finance commission’s recommendation said the trust balance is "just shy of $3,100,000" currently invested with CalPERS and that the commission recommended considering an additional payment to CalPERS to reduce the town’s pension liability. The presenter said the commission and the town’s fiduciary, Schuster, reviewed investment performance and alternatives.
Council members said they wanted more information before making a decision. "Given that we currently are undertaking three different studies — a fiscal impact study, a financial condition assessment and an asset-liability management study — my recommendation is to wait until we get the results of those studies," the staff member said, describing an RFP that proposed a six-month review and estimating preliminary information around March with a final report around April.
Council member Annie moved to hold off on any transfer until the three studies are complete and suggested targeting the June OPEB meeting for reconsideration; she also asked staff to explore alternative providers and investment options. The chair seconded the motion and the council voted "aye," approving the delay unanimously.
The meeting record shows the council and staff intend to use the upcoming study results to decide whether to retain and reinvest the Section 115 funds or to make an additional payment to CalPERS. Staff said it would return with the studies’ findings and that the next OPEB committee meetings are scheduled in March and June, with June noted as the likely earliest opportunity for full reconsideration.
Votes at a glance: the consent calendar was approved unanimously earlier in the meeting. The motion to delay the Section 115 trust decision was moved by Council member Annie, seconded by the chair, and passed unanimously.
