Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Costs topic
No spam. Unsubscribe anytime.
Committee flags rising PERS costs as side account expires, seeks breakdown
Summary
District staff told the committee Seaside's PERS side account is depleting early and that roughly $2.0 million of a $2.4 million PERS increase drove proposed reductions; the committee asked staff to post a detailed breakdown of PERS drivers and supporting spreadsheets.
District staff told the budget committee that expiring PERS side accounts and underperforming investments are the principal reasons for higher employer contribution costs.
Susan, the staff presenter, said the district previously purchased a $10 million bond side account that “saved the district $4,000,000,” and that side-account credits are now running down earlier than expected. She told the committee that “approximately 2,000,000 of the 2.4 is the additional money, that increase in PERS,” and that the committee should receive a spreadsheet breaking out how the $2.4 million increase was calculated.
Why it matters: increasing PERS costs are structural and recur in future fiscal years; the committee framed the current budget reductions as a way to avoid midyear cuts and to plan ahead for FY27–28. Staff noted alternatives — building a new side account with bond proceeds or developing a savings plan — and cautioned that bond financing may not be advantageous given current interest‑rate volatility.
Committee direction: staff agreed to publish the PERS breakdown and related spreadsheets online before the board takes action so committee members can see the amounts attributed to underperforming investments, earlier side‑account expiration, and unfunded liabilities.
