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Safety Plan 100% paid by General <br />Fund <br />Miscellaneous Plan 70% <br />paid by General Fund <br />Normal cost contribution - <br />a percentage of employee <br />wages <br />22.88% 11.83% <br />Required payment for the <br />unfunded liability $17,758,794 $9,762,030 <br />Employee Costs for FY25-26: <br />In addition to the City’s costs, the employees also contribute a percentage of their wages to help fund <br />the pension plan. <br />Safety Plan Paid by Employees Miscellaneous Plan Paid <br />by Employees <br />"Classic" employees who <br />became CalPERS members <br />prior to January 1, 2013 <br />12.00% 8.00% <br />"PEPRA" employees who <br />became CalPERS members <br />on or after January 1, 2013 <br />13.50% 7.75% <br />The City contracts with the California Public Employee Retirement System (CalPERS) to administer a <br />defined benefit pension plan for the City’s employees. There are two different plans: one for sworn <br />safety personnel and one for everyone else, referred to as miscellaneous. <br />There are also two different cost components: the normal cost of an additional year of service and a <br />contribution to reduce the unfunded liability. The unfunded liability is a long-term debt on the City’s <br />audited financial statements. An unfunded liability exists when the plans do not meet CalPERS <br />assumptions, and the accrued liability for future pension payments exceeds the cash accumulated in the <br />plan. For example, CalPERS assumes the pension plan cash investments will earn 6.8%. When CalPERS <br />investments earn less than the 6.8% assumption, the unfunded liability increases. <br />Expected City costs for FY25-26: <br />9