Item 40 - Refinancing City’s Pension Obligations with California Public Employees Retirement System

Home Browse Search

8 4826-7904-2280v7/200434-0005 NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY TO MAKE PAYMENTS WITH RESPECT TO THE BONDS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. Additional Bonds From time to time, the City may enter into: (a) one or more other trust agreements or indentures; and/or (b) one or more agreements supplementing and/or amending the Trust Agreement, for the purpose of providing for the issuance of Additional Bonds to refund the Bonds. In addition, the City may pursue another validation action to issue Additional Bonds for the purpose of refunding any additional Pension Liability under the CalPERS Contract arising subsequent to the issuance of the Bonds or any other obligations due to CalPERS. Such Additional Bonds may be issued solely on a parity with or a subordinate basis to the Bonds. CITY PENSION PLANS The following information is primarily derived from the City’s most recent CalPERS Annual Valuation Report as of June 30, 2020 which was produced by CalPERS, its staff, independent accountants, and actuaries. Actuarial assessments are “forward-looking” statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or be changed in the future. The City has not independently verified such information and neither makes any representations nor expresses any opinion as to the accuracy of the information that has been provided by CalPERS. The City’s CalPERS Annual Valuation Reports are available on CalPERS’ Internet website at www.calpers.ca.gov. General The City participates in a Miscellaneous Plan and a Safety Plan to fund pension benefits for employees. The City’s pension plans are administered by CalPERS. CalPERS administers an agent multiple-employer public employee defined benefit pension plan for all of the City’s full-time and certain part-time employees. CalPERS provides retirement, disability and death benefits to plan members and beneficiaries and acts as a common investment and administrative agent for participating public entities within the State, including the City. The City’s plan benefit provisions and all other requirements are established by State statute and the City Council. City employees are subject to different benefit levels based on their hire date, retirement age and certain other factors. Current benefit provisions for City employees are set forth in Table 1 below.