Resolution 2026-XX Page 1 of 2
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT
AMENDING THE PENSION LIABILITY FUNDING POLICY
WHEREAS, the City of Fremont (City) provides pension benefits to retirees through retirement plans administered by the California Public Employees’ Retirement System (CalPERS); and
WHEREAS, pursuant to Section 20814(c) of the California Government Code (the California Public Employees’ Retirement Law), funding contributions for both City retirement plans are determined annually on an actuarial basis as of June 30 by CalPERS; and
WHEREAS, the actuarially determined contribution is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to amortize any unfunded accrued liabilities; and
WHEREAS, the City Council adopted a pension liability funding policy on November 21, 2017, that directs the City Manager to incorporate an additional pension contribution payment into development of the proposed operating budget each year using a minimum additional contribution equal to 10% of the unfunded liability contributions specified by CalPERS, with a larger additional contribution contingent on availability of funds; and
WHEREAS, accelerated pay-down of the City’s unfunded accrued pension liability over the last nine years has achieved the policy goal of stable annual contributions and the policy as currently written would require the City to make unnecessarily large additional contributions beginning in FY 2026/27.
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Fremont hereby directs the City Manager to incorporate the unfunded liability contributions specified by CalPERS into development of the proposed operating budget each year, with any additional contributions contingent on availability of funds.
ADOPTED ______________, by the City Council of the City of Fremont by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mayor
Resolution 2026-XX Page 2 of 2
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney