Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions topic
No spam. Unsubscribe anytime.
Council asks finance subcommittee to study $5.7M CalPERS liability and consultant options
Summary
Staff reported a $5.7 million unfunded accrued pension liability and recommended continued $200,000 annual paydowns; council members asked the finance subcommittee to vet options and recommended hiring a consultant to compare paydown vs. PARS vs. other tools.
Town staff presented the town's latest CalPERS valuation showing an unfunded accrued liability (UAL) of $5,700,000 and recapped prior discretionary payments and ongoing strategy. Krista said the town has made $3.6 million in discretionary CalPERS payments since 2016 and has added $200,000 per year since FY22 as an ongoing strategy to reduce the UAL.
Krista noted volatility in valuations — for example, a significant drop in the UAL after positive CalPERS investment returns — and recommended the council authorize a consultant to evaluate whether to accelerate paydowns, use PARS or other instruments, or maintain the current plan. "Our most recent CalPERS valuation report shows an unfunded accrued liability of $5,700,000," Krista said during the pension segment. Several council members supported bringing a consultant and discussing options in the finance subcommittee before committing additional funds; staff said they have budgeted a modest amount for that consultant work in the draft budget.
