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Committee recommends moving pension funds to Section 115 trust; staff to place transfer on consent agenda
Summary
Committee staff recommended a one-time transfer into the district's Section 115 pension trust and asked that the board approve the transfer on the consent calendar; PARS and PFM presented performance, valuation context and a recommendation to proceed.
A member of the finance committee recommended authorizing a one-time lump-sum transfer into the district's Section 115 pension trust and asked staff to place the item on the board consent agenda.
"We are making that recommendation to go ahead and and move those dollars into the Section 1 15 trust," said the committee member during the discussion. PARS and the district's investment manager presented background showing the trust was established in April 2024, the first contribution went in August 2024 and there have been no disbursements since.
Rachel Sanders, a consultant with PARS, told the committee the district's most recent CalPERS valuation shows an unfunded liability around $17,000,000 and a funded status just under 70%, and that the board's pension policy sets an initial target to fund 3% of accrued liability. Dennis Mullins, senior portfolio manager for PFM Asset Management, reviewed market conditions and performance and said the trust has generated modest net investment earnings since the initial contribution.
The transcript records two closely stated contribution figures during the meeting: $885,417 and, later in the discussion, $885,000. Staff said they will bring a consent item to the board in two weeks to formalize the timing and mechanics of the transfer. No formal board vote was recorded at the committee meeting; the item was recommended to move forward to the full board on the consent calendar.
