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Approve an Appropriation Transfer Request increasing appropriations of $8.0 million in the respective funds for an additional payment to the CalPERS unfunded accrued liability account funded by the Pension Obligation Fund (4/5 vote required)
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
It is recommended that the Board of Supervisors approve an Appropriation Transfer Request (ATR) increasing appropriations of $8.0 million in the respective funds for an additional payment to the CalPERS unfunded accrued liability account funded by the Pension Obligation Fund (4/5 vote required).
SUMMARY:
The Pension Advisory Committee held a series of meetings in the Spring of 2025 to review various financial options to reduce long-term pension costs to the County. At the April 10, 2025 Pension Advisory Committee meeting, it was concluded that based on the current cash flow within the Pension Obligation Fund (Fund 306) $8.0 million can be utilized for a pre-payment/advance to the CalPERS Retirement Fund. Making one-time contributions to the CalPERS unfunded accrued liability account for the purpose of reducing interest costs and achieving long-term savings is consistent with the County's Pension Policy.
It is therefore recommended that the Board of Supervisors approve an ATR for $8.0 million to make an additional payment to the CalPERS Miscellaneous and Safety Plans unfunded liability account. By sending a prepayment prior to July 2025, the FY2026/27 CalPERS rates will be adjusted slightly downward and the County of Solano's unfunded liabilities for the CalPERS Plan will be reduced. This action will also reduce the current FY2025/26 unfunded liability payment due in July 2025.
FINANCIAL IMPACT:
The costs associated with preparing the agenda item are nominal and absorbed by the department's FY2024/25 Working Budget.
DISCUSSION:
The Pension Advisory Committee (consisting of th...
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