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San Clemente panel to ask City Council to give committee authority over dormant CSERP pension assets
Summary
The committee agreed to refer a set of pension-governance steps to City Council: revise the investment policy statement, consider asset-allocation changes, and potentially contract with Empower (or similar advisor) for implementation support before bringing those changes back to the advisory committee.
Committee members discussed how to handle the legacy CSERP pension governance and concluded the matter should go to City Council for direction before the Investment Advisory Committee acts.
The chair summarized the steps: (1) take a policy revision to Council to establish IAC authority over the CSERP, (2) return to the IAC to review and potentially modify the investment policy statement, and (3) consider asset-allocation changes and contracting for advisory services (Empower was mentioned as a candidate). The chair said the committee needs to determine whether to amend contracts and whether an RFP is required for advisory services.
Committee members also discussed the actuary cadence for the pension plan and said the city generally receives actuarial updates every one to two years; they noted Empower would not perform actuarial services but could advise using current actuary numbers.
The committee asked staff to bring language to the next Council agenda and to clarify whether an RFP is required for advisory services, with estimated initial advisory costs discussed as possibly under $25,000 for an initial review.
