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Compton hears plan to use roughly $65 million to cut CalPERS unfunded liability, city staff says levy could fall about $7.2 million
Summary
A consultant and city staff told the Compton City Council a one-time payment of roughly $65–75 million to CalPERS could lower the city's pension levy by about $7.2 million annually, roughly 20% of a reported $35 million levy; residents urged caution and more analysis during public comment.
A consultant presented a staff plan at the Oct. 28 City of Compton workshop to pay down a large portion of the city’s CalPERS unfunded actuarial liability, saying a one‑time prepayment could reduce the city’s pension levy and lower costs for residents in the near term.
Dan Matu Chevich, the consultant retained to model the city’s pension options, told the council that CalPERS has sent the city supplemental bills tied to actuarial shortfalls and that the total supplemental amount across plans is about $152 million. He said staff was discussing paying off a substantial portion of the miscellaneous plan’s unfunded liability and gave illustrative figures: paying about $65–75 million now could avoid roughly $42.7 million in interest and would reduce the city’s required payment to CalPERS by about $7.2 million per year — about a 20% reduction from a…
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