TO: Chair and Members of the Audit Advisory Committee
FROM: Trang Nguyen, Finance Director
1. SUBJECT
title
??California Public Employees’ Retirement System (CalPERS) Annual Valuation Reports as of June 30, 2025 for the Miscellaneous and Safety Plans.
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2. SUMMARY
?CalPERS annually prepares actuarial valuation reports for the City’s Miscellaneous and Safety pension plans to evaluate each plan’s financial condition and establish future employer contribution requirements. The valuations dated June 30, 2025, show significant improvement in the City’s pension funding position. The Miscellaneous Plan is 99.5% funded with an unfunded accrued liability (UAL) of $2.4 million, compared with 95.0% funded and a UAL of $21.8 million as of June 30, 2024. The Safety Plan is 94.9% funded with a UAL of $37.7 million, compared with 91.1% funded and a UAL of $63.3 million as of June 30, 2024.
3. RECOMMENDED ACTION
recommendation
??Receive and file the California Public Employees’ Retirement System (CalPERS) Annual Valuation Reports as of June 30, 2025, for the Miscellaneous and Safety Plans.
Consider forming an ad hoc subcommittee to develop a pension stabilization framework for further consideration by the Audit Committee.
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4. DISCUSSION AND BACKGROUND
??BACKGROUND
?The California Public Employees’ Retirement System (CalPERS) prepares an annual actuarial valuation for each of the City’s pension plans. The actuarial valuation measures the assets and liabilities of each plan, evaluates its funded status, and establishes the City’s future employer contribution requirements.
?The City participates in two CalPERS pension plans: the Miscellaneous Plan, which provides retirement benefits for eligible non-safety employees, and the Safety Plan, which provides retirement benefits for eligible sworn Police and Fire employees. Each plan includes multiple benefit tiers based on employee classification and date of entry into CalPERS membership.
?Due to the time required f...
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