STAFF REPORT
Meeting Date:
January 27, 2026
STUDY SESSION
2 SUBJECT: UPDATE ON CITY'S PENSION PLANS AND UNFUNDED ACTUARIAL
LIABILITY
RECOMMENDATION: It is recommended that the City Council:
1. Receive a presentation from Kerry Worgan, Supervising Actuary at California Public Employees' Retirement System (CalPERS) regarding the City's pension plans.
SUMMARY OF THE MATTER
Kerry Worgan will provide an update of the City’s CalPERS pension plans (Attachment 1). The presentation will focus on the following areas:
• Status of each plan’s funded status as of June 30, 2024, actuarial valuation (the most recent data published);
• An estimate of each plan’s funded status as of June 30, 2025, actuarial valuation in progress; • What the pension cost drivers are;
• Funding options available to the City to pay down its unfunded actuarial liability (UAL).
CalPERS has a Pension Outlook tool designed to help employers plan for and budget future pension costs.
This tool also has the ability to access different potential scenarios, including the impact of making additional discretionary payments to the pension plans. The presenter will be prepared to illustrate possible scenarios at the City Council’s request during the presentation.
FINANCIAL ANALYSIS
The recommended action has no financial impact on the budget.
ENVIRONMENTAL ANALYSIS
The recommended action has no environmental impact.
ATTACHMENTS
1. Presentation (Pgs. 2-17)
Submitted By: .Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Finance
Director
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Michelle Bannigan, Finance Director