City Council

a. CALPERS UNFUNDED PENSION LIABILITY STRATEGY\nSummary:\nThe City Council will consider a Fresh Start pension strategy for the City’s\nunfunded pension liability administered through California Public Employee’s\nRetirement System (CalPERS) for all Miscellaneous and Sworn rate plans. The\nFresh Start pension strategy would stabilize the pension plan, preserve liquidity,\nreduce the annual cost of payments, reduce interest costs, and shorten the term\nof the unfunded accrued liability (UAL).\nStrategic Plan Goal(s):\nGoal No. 1 Financial Stability: Ensure the City’s long-term financial stability\nand resilience.\nRecommendations:\n1. Direct staff to enter into an agreement with CalPERS to initiate a Fresh\nStart alternative amortization payment schedule for the existing unfunded\naccrued liability (UAL) for all Miscellaneous and Sworn CalPERS rate\nplans.\n2. Direct staff to make any additional pension payment for Fiscal Year (FY)\n2023-2024 in the amount of $500,000 utilizing the PERS reserve to\nreduce the annual pension payment to approximately $3,778,143\naccording to the suggested Fresh Start payment schedule.\n3. Adopt a resolution, entitled:\nA RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL\nHILL, CALIFORNIA, AUTHORIZING A BUDGET APPROPRIATION AND\nAMENDING THE FISCAL YEAR 2023-24 ANNUAL OPERATING AND\nCAPITAL BUDGET.