Napa City Council
May 19, 2026

1 CalPERS and OPEB
Unfunded Actuarial Liability
(UAL)
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CalPERS and OPEB UALs
• California Public Employes’ Retirement
S
ystem (CalPERS)
– Defined Benefit Retirement Plan
• Other Post-E mployment Benefits (OPEB)
– Retiree Health
• Unfunded Actuarial Liability (UAL)
– Difference between the present value of
pr
omised future benefits and the current value
of assets set aside to pay for them
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3 OPEB 100% Funded
FY27 Payments =
Actuarial Determined Contribution (ADC)
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CalPERS Pension Funding
as of 6/30/25
• Miscellaneous Plan
• Funded 68.4%
• Unfunded Accrued Liability is $110.0M
• FY26 UAL Payment $10.3M
• Safety Plan
• Funded 69.9%
• Unfunded Accrued Liability is $104.7M
• FY26 UAL Payment $9.5M
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Section 115 Trust
5 • Assets in PARS Section 115 Trust
• $10.0M as of 6/30/25
• $3.5M approved contribution at Mid-Year
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Potential Funding Approaches
• Where Additional Contributions Can Be Made
• Section 115 Trust
• CalPERS
• How Contributions Could Be Funded
• Budgeted
• Based on Budget Residual or Other Savings
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Potential Savings
7 $2M/YR $6M/YR $10M/YR
Potential Savings $26.7M $42.4M $55.1M
Years Saved Two Five Eight
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Staff Recommendation
• Build Section 115 Trust
• Budget Residual
• Other Savings (OPEB)
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9 Questions
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