Agenda — Finance Committee, October 3, 2022 (part 1 of 2)

AGENDA

FINANCE COMMITTEE

SPECIAL MEETING NOTICE
OCTOBER 3, 2022
PUBLIC MEETING 3:00 P.M.

Members
Victor M. Gordo, Mayor
Felicia Williams, District 2
John J. Kennedy, District 3 (in Memorium)
Andy Wilson, District 7

STAFF
Matthew Hawkesworth, Director of Finance
Theresa Fuentes, Assistant City Attorney
Gloria Acevedo, Recording Secretary

MISSION STATEMENT
The City of Pasadena is dedicated to delivering exemplary municipal services, responsive to our entire community and consistent
with our history, culture and unique character.

In compliance with the Americans with Disabilities Act of 1990, Assistive Listening Devices are available from the City Clerk’s Office with a 24-hour advance notice.

Please call (626) 744-4124 to request use of a listening device.

Language translation services are available for this meeting by calling (626)744-4124 at least 24 hours in advance.

Habrá servicio de interpretación disponible para éstas juntas llamando al (626)744-4124 por lo menos con 24 horas de anticipación.

Meetings are broadcast live on cable Channel 3 and on the Internet at http://pasadena.granicus.com/mediaplayer.php?camera_id=2&publish_id=9 and https://www.pasadenamedia.org/watch/ (Click on Video Streamlining on the right side of the screen).

Items on the agenda may not be called in order listed. Agendas and supporting documents are available on the Internet at
https://www.cityofpasadena.net/commissions/city-council-finance-committee/

Materials related to an item on this Agenda submitted to the Finance/Audit Committee after distribution of the agenda packet will be posted online and listed as: “Supplemental Agenda Material Received after the Posting of the agenda”

THE SPECIAL FINANCE COMMITTEE MEETING ON OCTOBER 3, 2022 AT 3:00 P.M. WILL TAKE PLACE SOLELY BY VIDEOCONFERENCE/TELECONFERENCE.

TO ACCESS THE MEETING:

http://pasadena.granicus.com/MediaPlayer.php?publish_id=9 AND

WWW.PASADENAMEDIA.ORG

In order to facilitate public participation at meetings held solely by electronic means, the City will accept public comment in the following manner:

1. During the meeting, members of the public may provide live public comment by submitting a speaker card prior to the start of public comment on that item, at the following webpage:
www.cityofpasadena.net/commissions/public-comment
After submitting a public speaker card, join the virtual meeting at the published start time with a computer, other electronic device, or by telephone. The same name or telephone number on the Speaker Card must be used for the virtual meeting in order to locate and unmute the speaker.

Computer or electronic devices, join the meeting at:
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Telephone only dial-in: 1-669-900-6833, Meeting ID: 161 482 446

2. Members of the public may submit correspondence of any length prior to the start of the meeting, at the following email address:

[email protected]

Correspondence will be forwarded to the legislative body prior to the start of the meeting.

3. If assistance is needed by phone, please call the City Clerk's Office at:
(626) 744-4124.

IF YOU NEED A REASONABLE MODIFICATION OR ACCOMMODATION

PURSUANT TO THE AMERICANS WITH DISABILITIES ACT

BECAUSE YOU ARE UNABLE TO PARTICIPATE ELECTRONICALLY AS SET FORTH ABOVE, CONTACT THE CITY CLERK’S OFFICE
AS SOON AS POSSIBLE AT (626) 744-4124 OR
[email protected].

SPECIAL MEETING
AGENDA

FINANCE COMMITTEE
OCTOBER 3,
2022
Public Meeting: 3:00 P.M.

Council Chamber, Pasadena City Hall
100 North Garfield Avenue, Room S249
PUBLIC MEETING - 3:00 P.M.

ROLL CALL
PUBLIC COMMENT – LIMITED TO ITEMS ON THIS SPECIAL MEETING

AGENDA AND WILL BE HEARD AT THE TIME THE ITEM IS

CONSIDERED

APPROVAL OF MINUTES
OLD BUSINESS –

1. OPERATING COMPANY AGREEMENTS AND REVENUE MEASURES
MEMO

NEW BUSINESS

2. DIRECTIO

N TO PREPARE AN ORDINANCE AMENDING PASADENA
MUNICIPAL CODE CHAPTER 5.24 TO ENHANCE THE CITY’S ABILITY TO

PERMIT AND REGULATE ALARM SYSTEMS AND RELATED FALSE ALARM

ACTIVATIONS

3. AMENDME
NTS TO FISCAL YEAR 2023 ADOPTED OPERATING BUDGET

INFORMATION ONLY

4. REVIEW OF CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM JULY 2022 PENSION VALUATIONS AND FUTURE FORECAST

ADJOURN

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OLD BUSINESS
ITEM 1

OPERATING COMPANY AGREEMENTS AND

REVENUE MEASURES MEMO

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1 Pasadena Tourism Business
Improvement District
TBID
ANNUAL
REPORT
FY21
Attachment A

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ABOUT
Developed by the Pasadena Center Operating Company and approved by the Pasadena City Council, the Pasadena Tourism Business Improvement District (PTBID) is an assessment district proposed to provide specific benefits to payors, by funding targeted marketing and sales promotion efforts. This approach has been used successfully in over 100 California destinations to provide the benefit of additional room night sales to payors.

LOCATION
The PTBID includes all lodging businesses located within the boundaries of the City of Pasadena. It does not include home-sharing or vacation rental businesses as defined by Pasadena Ordinance No. 7317.

SERVICES
The PTBID is designed to provide specific benefits directly to payors by increasing room night sales and revenue therefrom. Marketing and sales promotions will increase overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing room night sales and revenue therefrom.

BUDGET
The total PTBID annual budget for each year of its five (5) year operation was anticipated to be approximately $3,800,000. This budget is expected to fluctuate as room sales do but was not expected to significantly change over the life of the PTBID. However, due to COVID 19, the FY21 Budget is projected to be $2,132,000, based upon hotel occupancy forecasts by Tourism Economics for LA County and Smith Travel Research (STR), and consultations with Pasadena hotel partners.

COST
The annual assessment rate is 2.89% of gross room rental revenue. Based on the benefit received, the assessment shall not be collected on stays of more than thirty (30) consecutive days; and stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.

COLLECTION
The City is responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business located in the PTBID.

DURATION
The PTBID will have a five (5) year life, beginning July 1, 2018 through June 30, 2023. Once per year, beginning on March 1, there is a thirty (30) day period in which lodging business owners paying more than fifty percent (50%) of the assessment may protest and initiate a City Council hearing on PTBID termination.

MANAGEMENT
The PCOC will serve as the PTBID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the City Council.

TABLE OF CONTENTS
About 2
Letter from the Chair 4
Letter from the Executive Director 5
FY21 Highlights 6
FY21 Financials 11
FY22 TBID Activities 12
FY22 Tourism Recovery Plan 13
FY22 Budget 14
Tourism Outlook 15
Meetings & Conventions 16
Leisure 26
Tourism Leadership 30
Pasadena Convention Center & Civic Auditorium 32 Filming 34
Appendix 35

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LETTER FROM

EXECUTIVE

DIRECTOR
Dear Friends and Colleagues,
After a year unlike any other, our mission to position Pasadena as a leading meeting and leisure travel destination is more critical than ever for the well-being of our community. Our work to showcase the destination infuses much needed dollars into the economy and fuels the recovery.

In June, Visit Pasadena launched our comprehensive Pasadena Tourism Recovery Plan which details our multilayered marketing approach to attract visitors and meetings back to the destination.

We are grateful for the support of the Pasadena City Council for their confidence in our work and the resiliency of our industry.

As we move beyond this pandemic, we thank you for your
continued support and collaboration. Despite the hardships of the last year, Pasadena is ready and eager to welcome back visitors and help drive Pasadena’s recovery efforts. There is still work to be done to rebuild the vibrant travel and hospitality workforce, but we are proud of the work our destination has done and we are confident that we will rise to the occasion.

Sincerely,
Jeanne Goldschmidt
Executive Director
Pasadena Convention and Visitors Bureau

LETTER FROM

THE CHAIR
Dear Friends and Colleagues,
During these unprecedented times, the tourism and hospitality industry has been severely impacted. In the face of adversity, the Pasadena Convention & Visitors Bureau continues to proactively support and strengthen our tourism community so our destination can recover quickly.

Travel and meetings bring business to our local economy. From hotels and lodgings, to museums and entertainment, to restaurants and retailers, and meetings and events, tourism is the heartbeat of Pasadena. The industry sustains over 6,000 jobs locally in Pasadena. Therefore, it is more critical than ever to build a foundation for recovery.

We are confident that tourism is a resilient industry that can lead Pasadena’s recovery. We extend our gratitude to the Pasadena Center Operating Company Board of Directors, the City of Pasadena, and our community partners for their efforts and leadership to sustain the industry and provide a path forward.

Sincerely,
Tyron Hampton
PCOC Board Chair
Council Member, City of Pasadena
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FILM LOCATION
While on-site events were postponed, our Sales team remained active in pursuing new filming opportunities for Pasadena and the Pasadena Convention Center facilities and highlighting the availability of our Civic Auditorium to be used as the backdrop for feature films and television shows. In addition, the City of Pasadena Film Office has extended filming hours at the Pasadena Convention Center, which exempts us from the normal curfew hours of 7:00 AM to 10:00 PM.

Our team has launched campaigns to showcase why productions like America’s Got Talent, Daytime Emmy Awards, and Subaru commercials choose us and continue to return to the Civic Auditorium each year. Not only are our facilities professionally managed, but our dedicated team is fully equipped to provide a controlled, safe environment for high-quality productions.

MEETINGS AND CONVENTIONS
As meeting planners’ needs evolved through the pandemic, our Sales Team worked closely with meeting planners to navigate ever-changing local restrictions and instill confidence in the ability to host safe meetings in our destination. We approached each relationship with care offering timely resources and expertise to keep clients engaged. We also continued to exercise flexibility in pricing, space, and contract terms for events in the short term.

Our Sales team continued to connect with prospective and returning clients to book and rebook business for 2021/2022 and into future years. The Sales team contracted 13,881 room nights for future meetings and conventions.

Occupancy ADR RevPAR Revenue
FY22 Forecast 67.33% $154.88 - -
FY21 48.9% $126.35 $63.05 $49,946,079
FY20 63.8% $166.28 $114.00 $102,330,042
*Note: The Sheraton and Hotel Constance were closed during FY21 reducing the hotel supply in the market FY21 HIGHLIGHTS

MEETING CAMPAIGNS
Visit Pasadena produced e-mail campaigns to
continually connect with meeting planners during
the pandemic. The campaigns provided important
COVID updates, additional safety protocols, virtual
tours, as well as showcased outdoor venues, group
tours, and experiences.

CLEAN & SAFE VIDEO
To prepare for our public reopening, we
created a video highlightingthe new safety
enhancements and health protocols the
Pasadena Convention Center has made to
ensure visitors and employees feel comfortable
in our facility.

VIRTUAL CONVENTION CENTER
TOURS
The Sales & Marketing team produced a six-part virtual
site inspection experience for each of the Convention
Center’s available venue spaces as a resource for
potential clients. The video series served as a COVID-
safe alternative to the in-person site visit and were
widely distributed across CVENT and other sales
platforms.

FY21 HIGHLIGHTS
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LEISURE

SHOP SMALL, DINE LOCAL
Visit Pasadena continued to support local restaurants
and businesses during the ongoing COVID-19 crisis. We
worked closely with the City of P
asadena to encourage
people to shop small and dine spotlighting hundreds of
independent businesses located in Pasadena. The team
also maintained online directories to support ongoing
operations and reopening of its business community.

The directories have received over 1 million impressions, 65,000 pageviews, and feature over 300 Pasadena
businesses.
• Shop Pasadena
• Dine Pasadena
• Connect Pasadena
• Outdoor Dining
• We’re Open Keep Us Open
FY21 HIGHLIGHTS

CULTURAL PARTNER MARKETING

SUPPORT
During the pandemic, we provided marketing support
to our museums and attractions to keep them
top of mind during the pandemic. We encouraged
participating in their virtual activities, as well as
donation drives. As things progressed, we promoted
their reopening plans across our social media
accounts and monthly newsletters, and developed a
video series to announce the reopening of museums
across the city.

STAYCATIONS CAMPAIGN
We implemented a staycation campaign to encourage
locals and visitors from nearby cities in Southern
California to travel in the city. The campaign
highlighted food and outdoor activities at popular
Pasadena locations. Local businesses and attractions
were able to benefit from the efforts to keep local
dollars within Pasadena, rather than traveling out of
state.

FY21 HIGHLIGHTS

STIMULUS PLAN
On Monday, June 14, 2021, the Pasadena City Council approved a segment of the American Rescue Plan Act of 2021 to fund a $475,000 Pasadena Tourism Stimulus Recovery Plan. The plan will allow the Pasadena Convention & Visitors Bureau to bring back key full time staff positions and implement a multi-layered marketing campaign to attract visitors to the destination and increase visitor spending to local hotels, restaurants, retail, and cultural attractions sooner than expected.

Visit Pasadena swiftly launched its tourism recovery advertising campaign to attract visitors and drive business to local hotels, restaurants, retail and cultural institutions just in time for the busy summer travel season. • Advertising on popular travel platforms, Expedia, and Tripadvisor • Targeted advertising to active travel planners using Sojern • Social media advertising on Facebook and Instagram
• Pasadena Official Visitors Guide to prominently feature the Rose Bowl on the cover and showcase our Pasadena restaurants who have been impacted by the pandemic. • As a part of the Tourism Stimulus Recovery, Visit Pasadena will sponsor a dedicated e-newsletter to Visit California’s 180,000+ opt-in subscribers.

PASADENA 626 DAY
Visit Pasadena and the City of Pasadena were thrilled to launch the first ever Pasadena 626 Day to signal a new day for the business community. It was envisioned as a way to highlight Pasadena businesses located all over the city, its unique shops and restaurants, and the cultural institutions which attract visitors to the City. Over 100 businesses participated in the day-long event on June 26. The campaign received 10,200 pageviews, five million impressions, and $180k publicity value.

It earned media coverage on Good Day LA, KABC Eyewitness News, KTLA, NBC Los Angeles, KNX Radio, and in local
publications.

WEBSITE AND SOCIAL MEDIA
Visit Pasadena continued to promote our destination with original and curated content to build brand awareness on our website and social media. At this time, consumers have increased their use of official travel websites from visitor bureaus to obtain information regarding travel advisories and protocols. • 371,000 unique website visitors
• 688,000 website page views
• 68,300 social media followers

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CALIFORNIA CONVENTION

CENTER COALITION
Throughout FY 21, the Pasadena Convention Center and
Visit Pasadena joined tourism officials across the State of California to advocate for the reopening of business meetings and convention centers. The California
Convention Center Coalition sought to reopen convention centers and meeting venues and created a detailed
plan for the reopening of convention centers with best
practice recommendations for sanitation, staff training, physical distancing, and communication.

The coalition educated state legislative members on the devastation of COVID-19 on the meetings industry and
sought their support. The coalition called on Governor
Gavin Newsom to immediately issue state guidance
clarifying under what conditions our industry can resume business.

The continued lack of guidance caused clients to back
out of events for late 2021, 2022 and beyond, primarily because planning and booking require several months
and sometimes years of lead time. Convention centers,
hotels and other meeting venues could not compete for
future events when it appeared California was closed
indefinitely.

Subsequently, Governor Newsom announced that small
gatherings, private meetings and events would be able
to return starting April 15 and would expand to business meetings, conventions and tradeshows starting June 15.

TOURISM MARKETING PARTNER

MEETINGS
Visit Pasadena convened two Tourism Marketing Partner
Meetings. About thirty tourism stakeholders attended
each meeting to support recovery efforts, marketing
campaigns, share updates and collaborate on activities.

ECONOMIC PARTNER MEETINGS
Visit Pasadena also joined a monthly call with the
Pasadena Economic Development Department, business
districts and shopping centers to discuss pressing issues and share resources and information during the recovery.

TOURISM

LEADERSHIP
For FY21, funding received from the PTBID was $1.3M, a decrease of $1.66M compared to FY20. The sharp decline was caused by the shutdown of travel and meetings due to the pandemic.

Income Budget Allocated Actuals
TBID Assessment $2,132,000 $1,369,000
Expenditures Allocated
Staffing $1,317,000 $1,006,000
Administration Expenses $42,000 $23,000
Advertising $187,000 $66,000
Trade Shows and Activities $93,000 ($11,000)
Events and Sponsorships $130,000 ($23,000)
Familiarization Activities $16,000 -
Sales Calls and Travel $53,000 -
Promotional Expenses $255,000 $51,000
Total Expenditures $2,093,000 $1,112,000
TBID Fund Reserve $39,000 $257,000
FY21 TBID Fund Balance $587,000 $844,000
*Unaudited
FY21 FINANCIALS

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FY22 TOURISM

RECOVERY PLAN
Despite the hardships of the last year, Pasadena is
ready and eager to welcome back visitors and help
drive Pasadena’s recovery efforts. The travel industry
makes tremendous contributions to our local economy
and workforce as well as our community’s identity and
culture.

There is genuine optimism for recovery. People are
making travel plans. Pasadena museums, cultural
attractions, entertainment venues, and restaurants
have reopened.

But there is still work to be done, particularly in
rebuilding the vibrant travel and hospitality workforce.

Visit Pasadena has developed a Tourism Recovery Plan
to accelerate the recovery of travel and tourism over
the next 12 months.

FY22 TBID

ACTIVITIES
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TOURISM OUTLOOK
The COVID-19 pandemic brought the tourism industry to a standstill with catastrophic declines in 2020 compared to 2019. No sector within our industry has been unaffected and travel and tourism in every community across the country has suffered. Locally, hotel occupancy and average daily rates dropped 50% and 30% respectively (STR).

An estimated decline of $8.6M in TOT and $3.5M in TBID is projected for FY21 and FY22. Over 500 events have been canceled at the Pasadena Convention Center amounting to a loss of $15M in revenue. In addition, Pasadena hotels have lost over $100M in revenue to date. The industry is not expected to fully recover until 2024. Analysts forecast demand travel to return to pre-pandemic levels in late 2023, and for revenue per available room to reach full recovery in 2024 (Tourism Economics).

Starting June 15, California officially reopened for travelers as state-mandated capacity restrictions and physically distancing ended. The loosening of restrictions as well as vaccine roll-out and a decline in cases allowed leisure- travel demand to begin to gather strength. Summer travel plans were holding strong across the country. In June 2021, US travel spending reflected a drop of “only” 15% below June 2019 levels, a significant improvement from earlier months (US Travel). In California, visitor spending was down 25% from 2019 levels (Visit California).

However, in late July, an increasing spread of the Delta variant of COVID-19 is cause for concern for the recovery and is dampening expectations for a long summer travel boom. Destination Analysts reported the Delta variant are disrupting travel plans with 25% of travelers postponing upcoming trips, 19% have canceled. 45% of Americans doubt that it’s safe to go out and travel.

The TBID assessment forecasted revenue is $2.7 million, an increase of $1.4 million compared to FY21.

This is a decrease of $1.1 million compared to pre-pandemic FY19. The CVB expenditures budget is $1.8 million, $600,000 more than FY21 Budget. FY22 Budget anticipates an average occupancy of 67% with an ADR of $154.75. Our budget projections were created in anticipation of the Sheraton and Hotel Constance reopening by September 1.

Income FY22
TBID Assessment $2,700,000
ARPA Tourism Recovery Funds $475,000
Expenditures Allocated
Staffing $ 1,560,000
Administration Expenses $17,000
Advertising $279,000
Trade Shows and Activities $122,000
Events and Sponsorships $144,000
Familiarization Activities $22,000
Promotional Expenses $131,000
Total Expenditures $2,275,000
TBID Fund Reserve $900,000
FY22 Projected TBID Fund Balance $ 1,744,000
FY22 BUDGET

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SALES DEPLOYMENT
The Sales team’s key priority for FY22 is to capitalize on targeted sales and marketing efforts to increase meetings, conventions and tradeshows coming to Pasadena.

Our sales team has been reduced due to budget constraints, but our deployment will remain focused on key areas of opportunity such as our strong client base of SoCal associations, scientific meetings, and our local corporate market. Local and regional events will be important to our recovery and we anticipate short term opportunities for these types of meetings to increase once they have been approved by the State and local health officials. We will continue to source opportunities for new and returning educational, affinity and religious events. Through partnerships with LA Tourism, Helms Briscoe and CVENT we will maximize our exposure to clients to attract new citywide conventions and meetings. We will continue to work with our local partners such as Caltech and JPL to expand our reach into the scientific community and bring their conventions and scientific assemblies to Pasadena.

We anticipate refilling a remote position in Sacramento by September 1, 2021.

Our current deployment:

TAYLOR FRY
National Sales Manager
• Association of all size- CA and
outside of CA
• Corporate outside of CA- 200 peak
and above
• Government- state and national

DEBBIE VAIL
Sales Manager
• CA Corporate of all size
• Corporate outside of CA- under
200 peak
• SMERF of all size

MATT HOURIHAN
Senior Sales Manager
• Civic Auditorium performances
• Film and TV productions
• Televised award shows
• Convention Center tradeshows

LAURI DECLERK
Sales Manager
• Small meetings
• Civic graduations
• Consumer shows
• City of Pasadena events
• Car research clinics

MEETINGS & CONVENTIONS

A NEW CHALLENGE
As our meeting planners needs evolve, our sales efforts will adapt in non-traditional ways. We hope to strengthen our working partnership, develop our peer-to-peer network, and create a greater sense of collaboration and transparency in our communication between ourselves and our clients.

We’ll continue to exercise flexibility in pricing, space, and contract terms for events in the short term, which remains a high priority for event organizers. With the uncertainty of meeting room block and food and beverage minimums, the
CVB intends to support the needs of both hotels and clients.

Meeting planners will continue to look to the CVB to navigate the local restrictions, and navigate the requirements and recommendations when hosting live events in the city. As we reassess standard offerings, it will be critical to work hand- in-hand with our clients to communicate our commitment to health and safety protocols.

Communication continues beyond health and safety
measures. Our Sales and Marketing Departments will serve as destination storytellers, the main resource for local and state reopenings, and highlight upcoming events. The narrative will instill confidence in attendees that Pasadena is a safe place to meet. We will continue to share best practices and improve our protocols as more and more eeents return to Pasadena. 16

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INDUSTRY ASSOCIATIONS
Sales managers will hold membership in local and national industry associations, become involved by serving on committees/boards, and attend industry meetings to increase contact with prospective clients. Our team also participates on weekly webinars to stay informed on industry trends and research. • American Society of Association Executives (ASAE)
• California Society of Association Executives (CalSAE) • International Association of Exhibitions and Events (IAEE) • Destinations International (DI)
• Meeting Professionals International (MPI)
• Professional Convention Management Association (PCMA) FY22 TBID ACTIVITIES

TRADESHOWS/CONVENTIONS
The Sales team will attend and exhibit at hospitality industry tradeshows and conventions in our target markets, to increase the number of qualified leads. Shows that were canceled in 2020 due to COVID have had our payments transferred to FY22 events where possible. The team has developed a travel calendar based on the best opportunities to connect with qualified clients.

Tradeshow Date Format Location
Smart Meetings National West 3 Day August 8-10, 2021 In-Person San Diego Connect Marketplace: Assn. + Corp. August 30-September 1, 2021 In-Person Tampa Destinations Int'l Destination Showcase September TBD Hybrid Washington DC Connect Med/Tech November 29-December 1, 2021 In-Person Washington DC Connect DC November 29-December 1, 2021 In-Person Washington DC CalSAE Seasonal Spectacular December 14-15, 2021 In-Person Sacramento PCMA Convening Leaders January 9-12, 2022 In-Person Las Vegas

CITYWIDE CONVENTIONS
Status Dates Room Nights
November 2021
Assn of CA Water Agencies Definite Nov 28-Dec 3, 2021 2,571 January 2022
Barbershop Harmony Mid-Winter
Conference
Definite Jan 10-16, 2022 2,503
CA Assn of Public Procurement
Officials
Definite Jan 30-Feb 2, 2022 1,825
March 2022
SoCal LINUX Expo SCALE 20X Contract Issued March 1-7, 2022 646 Caltech QIP Definite March 7-11, 2022 920
SAE International (Aerotech) Definite March 13-18, 2022 1,192 AeroMat Definite March 14-22, 2022 682
CA Speech Language-Hearing Assn Definite March 23-26, 2022 1,453 April 2022
2022 HCSRN Annual Conf Definite April 11-14, 2022 867
CAEYC 2022 Contract Issued April 25-May 1, 2022 885
May 2022
Air Sensors International Contract Issued May 10-13, 2022 907 Leading Age California Definite May 15-18, 2022 966
Fire and Climate Conference Contract Issued May 22-26, 2022 1,020 (not yet contracted) June 2022
American Astronomical Society Definite June 11-16, 2022 1,433 The continued closure of gatherings in California have forced the following citywide conventions from July to October to reschedule their events to future years.

Dates Room Nights Rebooked
Academic Senate for CA Community
Colleges
July 10-12, 2021 860 room nights July 10-13, 2024
LightBox Expo September 2021 1,750 room nights October 12-16, 2022 CA Hospital Assn Oct 4-6, 2021 550 September 12-14, 2022 Great Minds in STEM October 19-24,
2021
4,105 October 10-15, 2023

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SALES PROSPECTING
Each sales manager will prospect for new business
through contacts made at tradeshows, industry events,
and research. The team will reengage clients who
have not held their events here in the past year and
rebook their events when the time is right. The Sales
and Marketing teams will develop enticing packages,
sponsorships, and add-on services to entice them to
rebook. Regular marketing email campaigns, targeted
digital campaigns and a robust business to business
social media presence will support prospecting efforts.

Sales efforts are monitored weekly, monthly, and
annually.

CUSTOMER SITE INSPECTIONS
In person site inspections are the optimal way for
meeting planners to experience our destination
and our meeting facilities. We underwrite the costs
for these visits when necessary. In the interim, our
Sales and Marketing teams developed a virtual site
tour to allow prospective clients the opportunity to
experience the Pasadena Convention Center and
our destination. The videos feature guided walk
throughs of our exhibit halls, ballroom, meeting
rooms highlighting amenities, features and floor
plans. We will resume our practice of hosting in
person site inspections in FY22.

NEW EVENT TRENDS EMERGING FROM AN UNPRECEDENTED YEAR
Hybrid events are here to stay. Since many groups turned to a virtual format to convene last year, clients and their attendees are familiar with Zoom and video conferences. We expect many groups will want to incorporate a virtual element to create a hybrid format for their events. Now that small meetings can resume, transitioning clients will be more attentive to virtual event production, wifi capabilities, and how venues’ built-in infrastrucure capabilities can support a hybrid format.

In addition to the pandemic, 2020 renewed our country’s focus on social justice. For many clients, that focus has reached the c-suite, and has motivated organizations to establish a commitment to diverity, equity, and inclusion (DEI) in internal structures and how they conduct external business. As these organizations evaluate destinations to bring their event to, they will be interested to know what efforts are being made to promote DEI in gender, race, disabilities, etc., and how it is reflected in marketing materials, local leadership, and business ownership.

When selecting a destination to host their event, future meeting planners will weigh factors including - a welcoming community for all (DEI), low COVID risks, and hybrid capability. We aim to position Pasadena as a destination that meets these requirements.

RFP & CVENT PARTICIPATION
CVENT is the preeminent website database for meeting planners during their site selection and RFP process. The PCVB has invested in a robust package of advertising options to keep Pasadena top of mind for tens of thousands of planners using CVENT’s digital channels. The package includes 2 diamond listings, email newsletters, banner ads, and guaranteed RFP generation. COVID has had a dramatic impact on the leads sourced thru the CVENT in 2020 and we were forced to reduce our level of commitment due to financial constraints. We gradually increase back to 2019 levels over the next few years.
2019

11.99 business hours
average response time
58%
296
RFP conversion rate
total RFPs received
2020

10.84 business hours
average response time
19%
250
RFP conversion rate*
total RFPs received*
2021 GOALS
<10
business hours
average response time
40%
RFP conversion rate
*many RFPs sourced in early
2020 were cancelled due to
the COVID-19 pandemic

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MEETINGS ADVERTISING AND CAMPAIGNS
We will advertise in select meeting industry digital platforms to maintain awareness of and interest in Pasadena.

Paid media will be dedicated toward digital display, mobile, email targeting and SEM. We will develop blog posts regularly for meeting planners that will keep us top of mind as they plan their meetings and will also share content in email marketing campaigns. We will also utilize LinkedIn’s paid and unpaid platform to connect with meeting planners. LinkedIn is a great social media network for business-to-business interactions. Our Sales Team engages actively on LinkedIn with their networks.

Advertising campaigns will include:
• Back to Business in Pasadena
• Your Hybrid Meetings Solution
• Center for Innovation and Technology

BACK TO BUSINESS IN PASADENA
Maintaining health and safety in America is critical for social and economic recovery. Travelers, including meeting planners and attendees, expect leadership from travel brands. They require proof that safety measures are in place throughout their entire travel journey. Meeting planners will also need these assurances as they select their next meeting destination and market their events and conventions.

We will execute a marketing and communications strategy to showcase our entire destination’s commitments to health and safety, including the convention center, hotels, museums, attractions, restaurants, and retailers. The strategy includes website statements, signage, email communications, and press releases.

GLOBAL BIORISK ADVISORY

COUNCIL ACCREDITATION
The Pasadena Convention Center has achieved the
Global Biorisk Advisory Council® (GBAC) STAR™
accreditation, the gold standard for prepared
facilities. The program verifies that the Pasadena
Convention Center implements best practices to
prepare for, respond to, and recover from outbreaks
and pandemics.
#PasadenaPrepared

BACK TO

BUSINESS

MAKE PASADENA YOUR SAFE

MEETINGS DESTINATION
The 130,000 square foot GBAC STAR™ accredited
Pasadena Convention Center features a 55,000 square
foot exhibit hall, 20,000 square foot outdoor plaza,
robust safety protocols, and professional virtual
meeting capabilities. The center is also centrally
located, with over 1,200 hotel rooms in easy walking
distance—and another 1,300 rooms a short drive or
light rail ride away. In the heart of downtown
Pasadena, attendees are footsteps fromsafe
and walkable entertainment districts and stunning
architectural landmarks.

REOPENING PLANS AND GUIDELINES
The Pasadena Convention Center has
developed robust health and safety measures and
guidelines to reopen safely.

STREAMLINED SAFETY PROCEDURES

PROCESS
Pasadena is one of a few cities in California with its
own health department which ensures a streamlined
experience for planners to develop their operations
plan and expedite safety approvals.

PASADENA COMMITMENT TO SAFETY
The entire Pasadena community is committed to
health and safety, including our hotels, attractions,
restaurants, and retailers. Our destination partners
have implemented safety and sanitation protocols to
ensure your group can meet safely.

HYBRID AND VIRTUAL MEETINGS
With the help of our preferred audiovisual partner,
Encore, we have adapted to the provide hybrid
meeting options. Their expertise, service, and state
of the art technology help create a customized, yet
safe setting for large groups and gatherings.

DESTINATION PROFESSIONALS
The Pasadena Convention & Visitors Bureau is
actively engaged and prepared to help you host your
next meeting or convention.

See appendix for Back to Business one sheet.

See appendix for Stay Safe Pledge Ad
PASADENA: CENTER FOR

INNOVATION AND TECHNOLOGY
Pasadena has a long history of innovation and a
deep-rooted entrepreneurial spirit. From Hubble to
Hawkings, some of the world’s greatest minds have
lived and worked in Pasadena, making Jet Propulsion
Laboratory (JPL), The Planetary Society, and the
ArtCenter College of Design, Pasadena’s pioneering
institutions have earned worldwide recognition
for their contributions to science, technology and
creativity.

YOUR HYBRID AND VIRTUAL

MEETINGS SOLUTION
As meetings evolve, we are marketing our readiness
to support clients as they host hybrid and virtual
meetings that meet their needs and elevate their brand.

With our preferred audiovisual partner, Encore, the
Pasadena Convention Center is prepared to provide
the technology and management to professionally
run a hybrid and virtual meeting. A new website page
has launched, and a direct email campaign has been
executed. The campaign will continue through FY22.

STAY SAFE PLEDGE
In collaboration with our hotels, business partners, and the City of Pasadena, the Stay Safe Pledge ensures
visitors that Pasadena has taken all of the necessary
steps in practicing the safest protocols for cleanliness, disinfection, and overall preparedness in regards to
COVID-19 and all other potential viral risks.

Businesses that sign the pledge have agreed to follow
all local, state and federal guidelines:
• Stay informed of the latest best practices
• Implement disinfection protocols
• Train employees on how to limit the spread of
COVID-19 including daily screening measures
Stay Safe Campaign Timeline
• April 14: Debut program to tourism partners.
• May 5: Develop marketing materials and
window clings.
• May 12: Solicit commitment from hotels,
museums and tourism partners.
• May 19: Launch stay safe media campaign with
press release.

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24 25

DESTINATION SERVICES
Meetings and events planned in FY22, will be navigating challenging waters. They will require extensive planning and ingenuity to host safe events and attract attendees. For citywide meetings, the Destination Services, Marketing and Communications teams will offer expanded services to support meetings at this critical juncture.

Services will include:
• Custom website landing pages
• Custom welcome videos featuring elected officials and local business leaders • Offsite venue planning, group tours and activities support • Social posts
• Sponsored giveaways and promotions
• Expanded local public relations strategy
• Collateral media such as zoom backgrounds, flyers, banners, maps, photography and fact sheets • Promotional items such as the Pasadena Coloring Book
In addition, the Destination Services team will provide important travel and meeting safety messages and information for meeting planners and attendees. This includes travel restrictions and orders, guidance on large gatherings, hotel openings and closures.

Custom website landing page
FY22 TBID ACTIVITIES

PASADENA

COLORING BOOK
Custom lamppost banners and signage Pasadena Coloring Book Private group tour, custom one sheets, and local
guided activities
SOUTHERN CALIFORNIA’S CULTURAL OASIS
Southern California’s cultural pulse comes to life in Pasadena. Culturally rich and artfully layered, Pasadena’s cachet rivals the likes of New York City and San Francisco. There’s a masterpiece around every corner – storied architecture, landmark museums, rare books, lush gardens, top-notch theaters and galleries. Explore Pasadena while enjoying 300 days of Southern California sunshine and an average temperature of 75 degrees.

CHARMING NEIGHBORHOODS
Only a short stroll from the Convention Center are four districts that blend the past, present and future:

Civic Plaza, Old Pasadena, Playhouse District and South Lake Avenue. Located within Pasadena’s 1.5- mile downtown core, these legendary areas are alive with cobblestone courtyards, sidewalk bistros, nightlife, shopping, and entertainment.

CENTER OF INNOVATION, CITY OF INSPIRATION
Pasadena makes a cool base camp of inspiration. From Hubble to Hawkings, some of the world’s greatest minds have lived and worked in Pasadena. Home to Caltech, JPL and the ArtCenter College of Design, Pasadena institutions boast worldwide recognition for their contributions to science, technology and creativity.

SHOPPING. Antiques, boutiques, museum stores,
shopping centers, world-famous ﬂea markets—
Pasadena is a walkable hub for retail therapy of all
variety, where hidden shopping gems are on every
corner.

ACCESSIBILITY. Just 16 miles from Burbank Airport, 29
miles from LAX, 37 miles from Ontario Airport, and
38 miles from Long Beach Airport.

DINING. Pasadena is the next foodie frontier, where a
new wave of artisanal eats and handcrafted pours is
remaking the SoCal culinary scene.

ENTERTAINMENT. From sophisticated jazz to comedy
clubs, from Broadway-style theatre to dance spots,
we’ll keep everyone in your group entertained.

NO HASSLES. A safe, pedestrian-friendly city, Pasadena
oﬀ ers a multitude of hotel rooms and services steps
from the Convention Center.

ARTS & CULTURE. Recently named “Best Arts Town” by
Sunset Magazine, Pasadena is considered one of the
most culturally rich and artfully layered cities in the US with 7 museums.

Welcome, OTC 2020! PASADENA CONVENTION CENTER
Wednesday, June 17 - Friday , June 19, 2020
25

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26 27

LEISURE
The Marketing team has worked to target drive market
customers to our hotels and tourism partners since many visitors show favoritism towards staying closer to their homes - likely within driving distance. Since the reopening, travelers prioritize purposeful escapes and experiences.

Visit Pasadena’s advertising and marketing focuses on
wellness, the outdoors and other “off the beaten path”
activities that allow for appropriate physical distances.

Our messaging for indoor activities emphasize how Pasadena has taken the appropriate protocols to make travel safer throughout their journey. We also resonated that Pasadena is a vibrant city with a small-town atmosphere and inviting vibe.

Pasadena may be near Los Angeles, but it feels worlds away.

Our marketing plan has focused on increasing confidence of the Gen X crowd as well as attracting more Millennials. Key characteristics of our ideal customer are young professionals who love the energy and culture of downtown life and lead active lifestyles. They enjoy theater, movies, concerts, culture, healthy foods, sustainability and are fashion-forward. They are drawn to urban neighborhoods and love the energy of downtown life and being close to the action. They are also ethnically diverse, mostly female, college-educated, and are career driven (Buxton).
26 LEISURE ADVERTISING AND CAMPAIGNS
The Marketing & Communications team will run a strategic marketing campaign focused on locals, drive market, and short-haul domestic travelers to support destination recovery, increase hotel business, and position Pasadena for long-term success.

Paid media will be strategically focused. Utilizing limited resources, we will target our specific markets using primarily organic and paid digital advertising – digital display ads, and social media ads.

Research shows that our audience is most receptive to travel and tourism content on Instagram and Google. We will subsidize these channels with Facebook and Twitter. Campaigns will target friends, family, returning visitors, and drive market through FY22. We will focus on the decision making and booking stage of the travel journey and reflect consumer sentiments.

See appendix for full page ad.

VISIT PASADENA

ENEWSLETTER
We deliver a monthly e-newsletter to over 15,000
subscribers sharing the latest news, events, and
activities in Pasadena. The newsletter provides
valuable content for visitors with a focus on beautiful imagery and bite-sized teasers of upcoming
attractions, with clickable links to keep subscribers
interested and engaged.

VISITORS GUIDE
This year, Visit Pasadena will publish one annual,
high-quality visitors guide in FY22. The publication
will highlight the best events and activities and
contain curated content promoting arts and cultural
attractions. 75,000 copies of the Official Pasadena
Visitors Guide will be polybagged with Los Angeles
Magazine and Pasadena Magazine, as well as
distributed in regional airports, welcome centers,
hotels, and to meeting attendees.

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28 29

WEBSITE AND SOCIAL MEDIA
Our website and social media promote our destination with original and curated content to build brand awareness.

At this time, consumers have increased their use of official travel websites from visitor bureaus to obtain information regarding travel advisories and protocols. The team will continue to build upon the newly redesigned VisitPasadena.com. We write regular blog about what visitors can experience during their stay in Pasadena.

Social media is an ideal platform for inspiring travelers to get to know our destination. Our Marketing team develops original, high-quality, and engaging content to influence travel including scenic imagery, short, digestible videos, and focused call-to-actions. We find and curate user-generated content that fits our brand. We also post relevant content on events, activities, and things to do in Pasadena.

MEDIA RELATIONS
Visit Pasadena will distribute regular press releases, tip sheets, event listings to generate media coverage on
Pasadena and the Pasadena Center Operating Company.

We will also utilize our relationships with Visit California and Discover Los Angeles to keep Pasadena top of
mind. We will aim to host one familiarization event in
FY22, likely in Spring 2022, for travel and meeting trade journalists. Our goal is to earn coverage in 25 leisure and meeting publications.

Media campaigns will include:
• Support the Tourism Recovery – Plan Your
Staycation
• Pasadena Road Trip
• Pasadena Hotel Focus
• Why Tourism Matters
• Pasadena Convention Center Readies to Reopen
• Pasadena is Open and Ready

STAKEHOLDER RELATIONS

PARTNERSHIPS

TOURISM MARKETING PARTNER

MEETINGS
Visit Pasadena will continue to convene regular meetings with our tourism marketing partners to support recovery efforts, engage with our partners, and elevate the Pasadena brand collectively. Our tourism partners represent Pasadena hotels, business districts, museums, performing arts
organizations, attractions, and educational institutions. Our team meets monthly with the City of Pasadena Economic
Development Department, districts, and shopping centers to discuss the latest news, COVID updates, and campaigns.

Visit Pasadena also participates in Old Pasadena Marketing Committees and the San Gabriel Valley Marketing
Committee.

TOURISM PARTNER NEWSLETTERS
We send a bi-monthly newsletter to our stakeholders as
another tool to engage with our partners. The newsletter provides a glimpse of recent activities and achievements to promote Pasadena as a meetings and leisure destination.

We also share industry research, trends, and consumer
insights that are especially valuable in the ever-changing COVID landscape.

TOURISM PARTNER MARKETING

SUPPORT
It is critical to support our partners, especially during these times. Our partners are working extremely hard to survive and thrive during the pandemic. Most have closed their
doors to the public for more than a year. We will continue to actively promote their activities and virtual events to help them stay visible through the recovery. When the time is right, we will begin campaign to support their reopening.

FY22 TBID ACTIVITIES
29

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30 31
Visit Pasadena is dedicated to supporting the tourism industry and our partners to aid the recovery of Pasadena and the surrounding region.

ROSE BOWL STADIUM
The Rose Bowl Stadium is an iconic landmark that is beloved across the nation and is an important piece of the City of Pasadena’s legacy and worldwide appeal. It has served as a backdrop for a centennial of annual events, new year celebrations, global performances, and more. It is a place that has created memories for families across the nation and traditions that have been passed down for generations. It is important that the stadium continues its grand tradition of providing world-class events so we can continue to attract visitors and provide lasting experiences.

Visit Pasadena enthusiastically supports the Rose Bowl Operating Company during these difficult times with marketing, public relations, and strategic partnerships. This support extends to promotion of signature events on our website and social media and prominent coverage in our upcoming Visitors Guide with a cover feature story and advertising.

SAN GABRIEL VALLEY ECONOMIC PARTNERSHIP
Leisure and hospitality play a critical role in the local and regional economy. Visit Pasadena will continue its leadership as a founding member of the San Gabriel Valley Hospitality Committee. With many upcoming major events – notably the 2026 FIFA World Cup, Breeders Cup, and the 2028 Olympics - Pasadena and the San Gabriel Valley will be front and center for the entire world to see. Therefore, it is critical to strengthen and rebuild the entire region to its full potential and showcase the best it has to offer. Visit Pasadena will also continue to lend expertise on the San Gabriel Valley Economic Partnership Marketing Committee.

TOURISM

LEADERSHIP
This year, our Leadership team continues to actively
participate in various committees and campaigns to
support the tourism industry’s recovery:
• CalTravel Association Board of Directors
• CalTravel COVID-19 Task Force
• California Convention Center Coalition
• CalTravel Diversity, Equity & Inclusion Task
Force
• Southern California Destination PR
Professionals
• US Travel COVID-relief advocacy efforts
• US Travel “When You’re Ready. We’ll Be
Ready” campaign
• US Travel “Plan For Vacation Day” campaign
• California Travel Officials call for Governor
Newsom to Release Guidelines for Business
Meetings, Events and Conventions

INDUSTRY ASSOCIATIONS
Our goal is to develop partnerships with the greater Los Angeles travel community and regional destination marketing organizations (DMOs) to raise awareness of Pasadena as a travel destination. Visit Pasadena will maintain memberships in various industry associations and attend industry meetings to increase Pasadena’s visibility. These meetings create an opportunity to network with other destination marketing organizations and exchange information and ideas related to best practices. (i.e., Travel & Tourism Marketing Association, Destination Marketing Association International, DMA West, CalTravel Association, and Visit California).

Visit Pasadena relies on our partners to support our efforts in the “travel ecosystem. ” Visit California promotes travel in and throughout the state. Discover Los Angeles inspires travel to the region. Visit Pasadena attracts visitors to our destination and onto our local downtown, hotels and attractions.

DISCOVER
LA
VISIT

PASADENA

ATTRACTIONS
& HOTELS
VISIT

CALIFORNIA

SUPPORT LOCAL BUSINESSES
The Pasadena Convention & Visitors Bureau will
continue to support local restaurants during the ongoing COVID-19 crisis with the recent release of the Pasadena Outdoor Dining Guide. In addition, the Marketing and
Communications team continues to work closely with
the City of Pasadena to maintain three online directories to support the ongoing operations and reopening of
its business community. “Dine Pasadena” and “Shop
Pasadena” promote local restaurants and small retail
businesses open for business while “Connect Pasadena,”
provides a list of educational and engaging content
from Pasadena businesses and cultural institutions. The directories have received over 20,000 pageviews and
feature over 300 Pasadena businesses.

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32 33

COMMITMENT TO HEALTH AND SAFETY
GBAC STAR Accreditation
The Pasadena Convention Center has been awarded the Global Biorisk Advisory Council® (GBAC) STAR™ accreditation, the gold standard for prepared facilities. Under the guidance of GBAC, a Division of ISSA, the worldwide cleaning industry association, the Pasadena Convention Center has implemented the most stringent protocols for cleaning, disinfection and infectious disease prevention in its facilities.

PASADENA CONVENTION

CENTER & CIVIC AUDITORIUM
FY22 TBID ACTIVITIES
As the cleaning industry’s only outbreak prevention, response and recovery accreditation, GBAC STAR™ helps organizations establish protocols and procedures, offers expert-led training and assesses a facility’s readiness for biorisk situations. The program verifies that the Pasadena Convention Center implements best practices to prepare for, respond to and recover from outbreaks and pandemics.

The Pasadena CVB and Convention Center launched a campaign to showcase the recent GBAC STAR accreditation. The campaign included email newsletters, digital, social media, and a press release. Communicating the STAR accreditation will instill confidence for meeting planners and will support them as they market their events in Pasadena.
32 Facility Reopening Plans and Guidelines
As the City of Pasadena continues through the recovery, the Pasadena Convention Center is planning and preparing to reopen. Our reopening plan to provide a safe workplace includes enhanced cleaning efforts, staggered work schedules and breaks, wearing of face masks, daily health screenings, practicing physical distancing, increased handwashing, and frequent cleaning and disinfecting of high touch areas.

DRAFT
DRAFT

PASADENA CONVENTION CENTER

REOPENING

GUIDELINES

THE PASADENA CENTER

OPERATING COMPANY
Weddings and Social Events Campaign
Because weddings and social events were restricted
through the pandemic, we believe there is pent up
demand for these activities, starting with very small
outdoor gatherings. Our team has also developed micro-
weddings packages to use during the recovery and are
actively promoting our offerings. The campaign will
include organic marketing, press releases, and paid
advertising.

Paid advertising campaign will be featured in the
following publications:
• Here Comes The Guide
• Wedding Wire
• The Knot
• Targeted Facebook, Instagram, Google Search
Advertising

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34 35

FILMING
While on-site events have been postponed, our Sales team has remained active in pursuing new filming opportunities for Pasadena and the Pasadena Convention Center facilities and highlighting the availablity of our Civic Auditorium to be used as the backdrop for feature films and television shows. In addition, the City of Pasadena Film Office has allowed for extended filming hours at the Pasadena Convention Center, which exempts us from the normal curfew hours of 7:00 AM to 10:00 PM.

Our team has launched campaigns to showcase why productions like America’s Got Talent, Daytime Emmy Awards, and Suburu commercials choose us and continue to return to the Civic Auditorium each year. Not only are our facilities professionally-managed, but our dedicated team is fully equipped to provide a controlled, safe environment for high-quality productions.

GLOBAL BIORISK ADVISORY

BACK TO

BUSINESS

MAKE PASADENA YOUR SAFE

REOPENING PLANS AND GUIDELINES
The Pasadena Convention Center has
developed robust health and safety measures and
guidelines to reopen safely.

STREAMLINED SAFETY PROCEDURES

DESTINATION PROFESSIONALS
The Pasadena Convention & Visitors Bureau is
actively engaged and prepared to help you host your
next meeting or convention.

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36 37
A vivacious city with a small-town atmosphere, Pasadena is the northeastern gateway to all things L.A. Nestled at the base of the San Gabriel Mountains and located just 10 miles from downtown Los Angeles, the “Crown of the Valley” feels worlds away.

The jewels of Pasadena’s storied past have been beautifully preserved as the city evolved into the sophisticated, modern destination it is today. Equal parts classic and contemporary, Pasadena is a thriving, forward-thinking hub of art, design and technological innovation.

YOUR

PASADENA

ADVENTURE

AW AITS

Page 26 ends

38 BOARD OF DIRECTORS
Tyron Hampton, Chair
City of Pasadena, Councilmember, Council District 1
Archie C. Purvis, Vice-Chair
Purvis Enterprises, Inc.

Paul Leclerc, Treasurer
Langham Huntington, Pasadena
Joe Titizian, Secretary
Hilton Pasadena
Emina Darakjy
Resident
Phillip Hosp
Foley & Lardner, LLP
William Chu
Hotel Constance Pasadena
Eric Duyshart
City of Pasadena
David Eads
Tournament of Roses
Kim Ferreira
Resident
Eleanor Lee
Resident
Michael Owen
Old Pasadena Courtyard by Marriott
Robert Montano
Resident
Siamak Nassirpour
Westin Pasadena
Blair Salisbury
El Cholo Cafe

PASADENA CENTER

OPERATING COMPANY
Michael Ross
CEO
Naz Sabripour, CEM, CVP
Executive Director, P
asadena Convention Center
Margie Christ
Director of Human Resources
Phuong Wong
Director of Finance

VISIT PASADENA
Jeanne Goldschmidt
Executive Director, Visit Pasadena
Christine Susa
Director of Marketing & Communications

Page 27 ends

NEW BUSINESS
ITEM 2

DIRECTION TO PREPARE AN ORDINANCE

AMENDING PASADENA MUNICIPAL CODE
CHAPTER 5.24 TO ENHANCE THE CITY’S

ABILITY TO PERMIT AND REGULATE

ALARM SYSTEMS AND RELATED FALSE

ALARM ACTIVATIONS

Page 28 ends

Request for Ordinance to Amend Municipal Code
October 3, 2022

Page 1 of 3 ends

October 3, 2022

TO: Honorable Mayor and City Council

THROUGH: Finance Committee

FROM: Department of Finance

SUBJECT: DIRECTION TO PREPARE AN ORDINANCE AMENDING
PASADENA MUNICIPAL CODE CHAPTER 5.24 TO ENHANCE
THE CITY’S ABILITY TO PERMIT AND REGULATE ALARM

SYSTEMS AND RELATED FALSE ALARM ACTIVATIONS

RECOMMENDATION:

It is recommended that the City Council:

1. Find that the proposed action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption); and

2. Direct the City Attorney to prepare and return with an ordinance within 60-days to enhance the City's regulations over alarm systems and related false alarm activations, as further described in this agenda report.

BACKGROUND:

Pasadena Municipal Code (PMC) Chapter 5.24 regulates alarm systems installed to detect unauthorized entry to a property and subsequently notify the Police Department.

This PMC Chapter was last updated in 1989 and similarly to any system relying upon technology over a period of time, the alarm industry and technology has changed. In addition to definition improvements, procedural changes based on feedback from community, is included regarding permit duration and applicability. Changes proposed include:

a. Amend the definitions to reflect current and modern practices; b. Shift the responsibility of obtaining the permit to the alarm company in lieu of the property owner for professionally installed and monitored systems; c. Include language for self-installed and monitored systems; and d. Transition from four-year permits to annual permits for new permits or as existing permits come due for renewal.

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Request for Ordinance to Amend Municipal Code
October 3, 2022

Page 2 of 3 ends

As to staff’s recommendation to shift permit responsibility from the property owner to the alarm company, staff frequently receives comments when a property owner is billed for a false alarm penalty without a permit. Property owners that have either purchased a new alarm system installed by a professional company or owners that purchased a property with a pre-existing alarm system have expressed frustration that the alarm companies did not inform them of the permit requirement. The proposed changes would include a requirement for the alarm company to obtain the permit for the property, which is a common practice in many other cities.

As to the suggested move to an annual permit (in lieu of a four-year permit), property owners have expressed to staff that the four-year permit requirement is easy to forget that a permit has been obtained or needs to be renewed due to the long time span.

Many cities require annual renewals and the proposed changes include a shift to annual renewals.

COUNCIL POLICY CONSIDERAT
ION:

The proposed amendment of Chapter 5.24 would help maintain fiscal responsibility, support and promote quality of life and the local economy, and ensure public safety and generate additional revenue for the City of Pasadena.

ENVIRONMENTAL ANALYSIS:

This proposed Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines section 15061(b)(3), the common sense exemption (formerly the “general rule”) that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. The development of an ordinance to enhance the City’s regulations over alarm systems would not result in any direct or indirect physical changes to the environment. Since there is no possibility that the activity in question may have a significant effect on the environment, the activity is exempt from CEQA.

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Amending PMC 5.24 to Enhance the
City’s Ability to Permit and Regulate
Alarm Systems and False Alarms
Matthew Hawkesworth
Director of Finance
October 3, 2022
Finance Committee
Item 2

Page 32 ends

Background
• Chapter 5.24 of the Pasadena Municipal Code
(PMC)
regulates alarm systems
> Last updated in 1989
> The alarm industry and related technologies have
changed.
• The PMC defines key alarm system terms,
requir
es permits for monitored systems and
provides for penalties related to false alarms
2

Page 33 ends

Proposed Changes
• Amend definitions to reflect current and
modern practi
ces
• Shift permit responsibility to the alarm
company
• Include l
anguage for self-install ed and
monitored systems
• Transition from four-year to annual permits
3

Page 34 ends

Recommendation
• Find the proposed action is exempt from
CEQA
• Direct
the City Attorney to prepare and return
with an or
dinance within 60 days consistent
with the provisions set for herein
4

Page 35 ends

NEW BUSINESS
ITEM 3
AMENDMENTS TO FISCAL YEAR 2023

ADOPTED OPERATING BUDGET

Page 36 ends

I
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Agenda Report
October 3, 2022
TO: Honorable Mayor and City Council
THROUGH: Finance Committee
FROM: Department of Finance
I
SUBJECT:

RECOMMENDATION:

AMENDMENTS TO FISCAL YEAR 2023 ADOPTED OPERATING
BUDGET
I
It is recommended that the City Council:

1. Find that the proposed action is exempt from the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the General Rule that CEQA only applies to projects that may have an effect on the environment;

2. Approve amending the Fiscal Year 2023 (FY 2023) Adopted Operating Budget as detailed in the following report and increasing the Citywide total Full-time Equivalents (FTEs) by 1.0 limited-term FTE and 9.0 permanent FTE; and

3. Authorize the City Manager to enter into an agreement with the State of California Office of Traffic Safety for acceptance of the Selective Traffic Enforcement Program (STEP) and the Pedestrian and Bicycle Safety Program Grant funds (in connection with Item #7).

EXECUTIVE SUMMARY:

Throughout the fiscal year, budget amendments are necessary to account for unanticipated changes to the adopted budget. These revenue and appropriation amendments are presented to the City Council for consideration. This agenda report includes proposed amendments to the FY 2023 Operating Budget as adopted by the City Council on June 20, 2022. The proposed budget amendments fall into one of the following categories:
• Re-appropriations or "carry-forwards" of previously approved appropriations from the FY 2022 budget that were unexpended as of June 30, 2022 (purchase orders, contracts, and grants), where sufficient funding was available in the account and are now anticipated to be expended during FY 2023. As detailed in Attachments A and B of this report, approval of the proposed carry-forwards will MEETING OFAGENDA ITEM NO.

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Amendments to Fiscal Year 2023 Adopted Operating Budget October 3, 2022

Page 2 of 8 ends

increase FY 2023 total authorized operating appropriations across multiple funds by a net amount of $12,984,998; or
• Amendments to the FY 2023 Operating Budget that are based on information that was not available when the Operating Budget was presented to the City Council for adoption on June 20, 2022. As detailed in Attachment C of this report, approval of the proposed budget amendments will decrease FY 2023 total authorized operating appropriations across multiple funds by a net amount of $1,514,002 and will authorize an increase of 1.0 limited-term and 9.0 permanent FTEs.

Proposed Carry-Forward Items

1. Carry-Forward of FY 2022 Purchase Orders and Contracts - The Department of Finance recommends appropriations in the amount of $12,984,998 be carried forward from FY 2022 to FY 2023 throughout various funds. As detailed in Attachment A, the recommended appropriations represent 27 contractual obligations where goods or services were ordered in FY 2022, but will not be received until FY 2023. Delays were primarily caused by supply chain issues affecting production and delivery of goods or services.

2. Carry-Forward of FY 2022 Grants - The Department of Finance recommends recognizing revenue of $570,733 and appropriations of $570,733, to carry forward grants from FY 2022 to FY 2023 across two funds. As detailed in Attachment B, the recommended revenue and appropriations represent four grants. The multi-year grants will continue to fund a variety of programming, some of which includes purchases for the prevention of terrorist threats and the securing of high-profile areas, mental health awareness and wellness, including police training in the peer support team, employee wellness for officer support and families and Office of Traffic Safety programs.

Proposed Budget Amendments

3. Transportation Department Budget Adjustments - The Transportation Department recommends recognizing revenue of $5,000,000 and appropriating $455,298 in the funds as outlined below.
a. The Department recommends recognizing revenue in the amount of $5,000,000 in the General Fund (101) for the payment from CalTrans to the City regarding the relinquishment of the State Route 710 Northern Stub. In May 2022, the City Council authorized the relinquishment agreement between the State of California and the City. Thereafter, the agreement and corresponding funding was subject to final approval by the California Transportation Commission.

In addition to this, the Department recommends appropriating $300,000 in the General Fund (101) for as-needed maintenance costs in the relinquished area. Per the maintenance agreement authorized by City

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Amendments to Fiscal Year 2023 Adopted Operating Budget October 3, 2022

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Council on May 23, 2022, CalTrans will be responsible for maintaining the area on behalf of the City.
b. The Department recommends appropriating $155,298 from the unappropriated fund balance of the South Lake Parking Operating Fund (217) for legal fees regarding a property tax settlement related to Shopper's Lane. The property tax refunds were received in FY 2022, meanwhile the Attorney's fees will be paid in FY 2023.

4. Housing Department Budget Adjustments - The Housing Department recommends appropriating $1,056,082 in the Low and Moderate Income Housing Asset Fund (237) and $817,721 in the Inclusionary Housing Trust Fund (239) as detailed below. These budget amounts involve re-appropriating previously approved appropriations from prior fiscal years (a-d below). a. The Department recommends appropriating $1,056,082 in the Low and Moderate Income Housing Asset Fund for loan funding associated with the development of the Heritage Square South Permanent Supportive project. On March 14, 2022, the City Council approved a City loan of $2.0 million for the project that was partially disbursed in FY 2022. As a result, the remaining balance of $1 ,056,082 needs to be re-appropriated for final disbursement in FY 2023.
b. The Department recommends appropriating $450,000 in the Inclusionary Housing Trust Fund to continue the housing acquisition loan agreement with Heritage Housing Partners (HHP) into FY 2023, to acquire an affordable deed-restricted housing unit. The City Council approved the loan agreement in FY 2022 (January 24, 2022); however, the acquisition was completed at the start of the new fiscal year.
c. The Department recommends appropriating $275,700 in the Inclusionary Housing Trust Fund for the City acquisition of an affordable deed- restricted condominium unit. On June 20, 2022, the City Council authorized the purchase of an affordable deed-restricted condo unit at 65 N. Alien Ave. The acquisition was completed in FY 2023, requiring an appropriation of said amount.
d. The Department recommends appropriating $92,021 in the Inclusionary Housing Trust Fund for the remainder of the second phase of the Centennial Place interior rehabilitation project. On February 11, 2019, the City Council appropriated $314,200 for the second phase rehabilitation, of which the majority was disbursed in FY 2022. The remaining balance of $92,021 needs to be re-appropriated as the project is scheduled for completion by the end of FY 2023.

5. Pasadena Public Health Department (PPHD) Budget Adjustments - The PPhlD recommends recognizing and appropriating $1,264,336 in the Public Health Fund (203) for five grants. This will support an additional 1.0 limited-term

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and 8.50 permanent FTEs and program related expenses. PPDH also recommends recognizing revenue of $224,000 that was inadvertently omitted from its FY 2023 Operating Budget. The details of these grants and revenue adjustment are outlined below.
a. The Department recommends recognizing revenue and appropriating $1,033,025 in the Public Health Fund and increasing the Department's personnel allocation by 8.50 FTE. The State of California's 2022-2023 Budget included ongoing public health workforce and infrastructure funding through the California Department of Public Health (CDPH) initiative. The purpose of the program is to support long-term public health infrastructure through opportunities and initiatives found within the Community Health Assessment (CHA)/Community Health Improvement plan (CHIP) and Strategic plan goals. To support the program, the Department requests 1.0 FTE Public Information Specialist, 1.50 FTE Program Coordinators, 1.0 FTE Environmental hlealth Program Manager,

2.0 FTE Senior Public Health Nurses, 1.0 FTE Office Assistant, and 2.0 FTE Public Health Nurses. This additional staffing will continue to be supported by the state budget annually per the CDPH approved allocation letter, with PPHD meeting the required terms of the ongoing funding. b. The Department recommends recognizing revenue and appropriating $110,925 in the Public Health Fund and increasing the Department's personnel allocation by 1.0 FTE for the Nutrition Education and Obesity Prevention (NEOP) Program. CDPH increased the existing grant award by $249,595 from $748,785 to a new total of $998,380 (through September 2023), a portion of which is recommended for FY 2023. The grant program provides nutrition education, promotes physical activity, implements the CalFresh Healthy Living Program, provides direct education services for CalFresh Healthy Living eligible residents, and supports partnerships and coalitions to increase healthy eating and physical activity opportunities for Pasadena residents. The program recommends an additional limited-term, grant-funded 1.0 FTE Management Analyst I for programmatic support and initiatives.
c. The Department recommends recognizing revenue and appropriating $74,128 in the Public hlealth Fund for the Nutrition Education and Diabetes Prevention Program. Kaiser Permanente awarded the PPHD a total of $111,100 in grant funding to develop a Diabetes Prevention Program through December 30, 2023, a portion of which is recommended for FY 2023. The grant will support contracted Promotoras community health workers, supplies, communication materials, and travel expenses.

The program will train community health workers to deliver nutrition education, chronic disease prevention, and diabetes prevention through health advocacy, outreach, health system, and resource navigation. d. The Department recommends recognizing revenue and appropriating $25,558 in the Public Health Fund for the Children & Youth with Special

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Health Care Needs (CYSHCN) Grant. CDPH increased the existing grant award by $50,000 from $242,405 to $292,405 (through June 2025), a portion of which is recommended for FY 2023. The CYSHCN grant is intended to improve support for children and youth with special health care needs and their families in the Greater Pasadena area. This grant will provide system navigation support and linkages to services, mentoring, other peer-to-peer support, transition of youth into the adult health care system and promote family health information networks that increase collaboration between agencies and parents.
e. The Department recommends recognizing revenue and appropriating $20,700 in the Public Health Fund for the ArtCenter College of Design Vaccine Outreach grant program. This funding will be used for a COVID- 19 Vaccine Outreach project, the purpose of which is to collaborate with the ArtCenter Design Matters course to create three marketable community prototypes, which will help increase knowledge and awareness of COVID-19 vaccines for youth, and will be implemented to support the Pasadena Equitably Advancing Children's Health (PEACH) Collaborative.

The budget will cover Promotoras, a media campaign, survey incentives, and evaluation costs. The grant award will use existing PPHD staffing to complete program objectives and is anticipated to be fully spent within FY 2023.
f. The Department recommends recognizing revenue of $224,000 in the Public Health Fund to keep the first Pasadena Outreach Response Team (PORT) fully funded. In lieu of the previous grant funding, which concluded in September 2022, the General Fund is partially supporting PORT 1 in FY 2023. This revenue recognition was inadvertently omitted during the budget process.

6. Public Works Department Budget Adjustments - The Public Works Department recommends appropriating $630,000 in the Measure W Local Return Dollars Fund (243) and $150,000 in the Building Maintenance Fund (502)as detailed below.
a. The Department recommends appropriating $630,000 from the unappropriated fund balance of the Measure W Local Return Dollars Fund to utilize funding and align with specific operations. With the passage of Measure W in 2018, Los Angeles County imposed a special parcel tax to fund safe, clean water resources programs and projects to increase urban and stormwater capture, and reduce urban and stormwater pollution. The Department will now utilize Measure W funding for expenses that were previously supported by the Sewer Fund. Some of these expenses include catch basin maintenance, the City's Safe Clean Water Program, stormwater and National Pollutant Discharge Elimination System permits, and Enhanced Watershed Management Program monitoring.

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b. The Department recommends appropriating $150,000 from the unappropriated fund balance of the Building Maintenance Fund to support one-time emergency repair work at various City buildings. As a result of General Fund savings realized in FY 2022, a one-time transfer of $150,000 was made from the General Fund to the Building Maintenance Fund at the end FY 2022. The repair work will be performed in FY 2023.

7. Pasadena Police Department Grants - The Police Department recommends recognizing revenue and appropriating $551,514 in the General Fund (101) for two grants and authorizing the City Manager to enter into an agreement with the State of California for acceptance of the Selective Traffic Enforcement Program (STEP) and Pedestrian and Bicycle Safety Program Grant funds as outlined below.
a. The Department recommends recognizing revenue and appropriating $515,000 in the General Fund for the STEP Grant. This grant is used for directed enforcement of driving under the influence checkpoints, bicycle safety, and other traffic enforcement programs. The grant period is from October 2022 to September 2023.
b. The Department recommends recognizing revenue and appropriating $36,514 in the General Fund for the Pedestrian and Bicycle Safety Program Grant. This grant will help reduce the number of persons killed and injured in collisions involving pedestrians and bicyclists. The funded strategies may include classroom education, bicycle rodeos, community events, presentations, and workshops. The grant period is from October 2022 to September 2023.

8. Public Art Projects - The Planning and Community Development Department recommends appropriating $536,000 from the unappropriated fund balance of the Capital Public Art Fund (310) to support three distinct public art projects.

A permanent artwork will be created at the Robinson Park Recreation Center ($186,000), while a second art piece will be developed at a location to be determined shortly ($200,000). With the ongoing improvements to the Robinson Park Recreation Center, there is a unique opportunity to develop two public art pieces by awarding contracts to both the Primary Artist and the Alternate Artist.

In addition, the City can work on the contracts with these artists to ensure that local, less experienced artists are afforded an opportunity to enhance their skills through direct interaction with the selected artists as this project moves forward.

Details and opportunities for this type of direct interaction along with the location of the second art piece are still being explored and will presented to the City Council upon contract approval. The City Manager's Office carefully reviewed the artist selection process for the Robinson Park Recreation Center. That process was implemented in accordance with all of the City's Capital Public Art Guidelines.

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Lastly, the current recommendation will also support the installation of the Rotating Public Art Exhibition Program Series IV project ($150,000) at different sites throughout the City.

9. FTE Reclassification - The City Manager's Office recommends appropriating $64,897 in the General Fund to support the reclassification of an existing 0.5 FTE Administrative Intern in the Public Affairs Division to a full-time 1.0 FTE Public Information Specialist. The Public Information Specialist assists the day-to-day tasks of the division, such as creating graphic/visual materials, planning special events, managing content of the departmental website, and other related duties.

COUNCIL POLICY CONSIDERATION:

The City Council's strategic planning goal of maintaining fiscal responsibility and stability will be advanced by monitoring the FY 2023 Adopted Operating Budget and by implementing necessary budget amendments.

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FISCAL IMPACT:

As detailed in Attachments A and B of this report, approval of the proposed carry- forward items will increase FY 2023 total authorized operating appropriations across multiple funds by $13,555,731, which will be offset through increased revenues of $570,733.

As detailed in Attachment C, approval of the proposed budget amendments will increase FY 2023 total authorized operating appropriations across multiple funds by $5,525,848, which will be offset through increased revenues of $7,039,850 resulting in a net decrease of $1,514,002.

Full-Time Equivalents will increase overall by 1.0 limited-term and 9.0 permanent positions.
^KE;
Respectfully/ubmitted,
MATTHE^A/ E. HAWKESWORTH
Directo/^of Finance
Prepared by:

Nathan P^ul
Principal Administrative Analyst
Approved by:
{^V-^^J^ ^^^==-
MIGUELlVfARQUEZ
City Manager
Attachments: (3)
1) Attachment A: Listing of Carry-Forward Purchase Orders and Contracts 2) Attachment B: Listing of Carry-Forward Grants
3) Attachment C: Summary of Proposed Q1 FY 2023 Budget Amendments

Page 44 ends

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Page 48 ends

Amendments to
Fiscal Year 2023
Adopted Operating Budget
October 3, 2022
Finance Committee Item 3
Jonathan Paul
Principal Administrative Analyst

Page 49 ends

2 Recommendations
A. Amend the Fiscal Year (FY) 2023 Operati ng Budget
by:
• Carry forward a net amount of $12,984,998 for previously approved appropriations from the FY 2022 budget that were unexpended as of June 30, 2022.
• Amendments netting a decrease of $1,514,002 in
appropriations and an increase of 1.00 limited term FTE and

9.0 permanent FTEs.

B. Authorize the City Manager to enter into an agreement with the CA Office of Traffic Safety for acceptance of
$515,000 in the Selective Traffic Enforcement
Program (STEP) and $36,514 in the Pedestrian and
Bicycle Safety Program grant funds.

Department of Finance

Page 50 ends

FY 2023 Budget Amendments

1. Carry-forward of FY 2022 Purchase O rders and
Contracts
• Appropriate $12,984,998 to be car ried forward from
FY 2022 to FY 2023 throughout various funds.
• 27 Purchase Orders and Contracts

2. Carry-forward of FY 2022 Grants
• Recognize revenue and appropri ate $570,733 to carry
forward the remaining balances of five grants from FY 2022 to FY 2023 across two funds.
3 Department of Finance

Page 51 ends

FY 2023 Budget Amendments

3. Transportation Department Budget Adjustments
• Recognize revenue of $5,000, 000 and appropriate
$455,298.
 California Department of Transportation (CalTrans): recognize $5,000,000 in the General Fund (101) for payment from CalTrans to the City regarding the relinquishment of the State Route 710 Northern Stub, as approved by the City Council in May 2022; and appropriate $300,000, as approved, for as-needed annual maintenance costs.  South Lake Parking Fund (217)
: appropriate $155,298 in this fund for
legal fees regarding a property tax settlement.
4 Department of Transportation

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FY 2023 Budget Amendments

4. Housing Department Budget Adjustments
• Appropriate $1,873,803 for previously approved appropriations from prior fiscal years being re-appropriated in FY 2023:
 Heritage Square South Permanent Supportive Project: appropriate $1,056,082 in the Low and Moderate Income Housing Fund (237) as a final disbursement for this project that was partially disbursed in FY 2022.
 Affordable Housing Units
: appropriate a total of $725,700 in the
Inclusionary Housing Trust Fund (239) to acquire an affordable deed- restricted housing unit from Heritage Housing Partners ($450,000), as well as a unit at 65 N. Allen Avenue ($275,700).
 Centennial Place Interior Rehabilitation Project
: appropriate $92,021
in the Inclusionary Housing Trust Fund (239) for the remainder of the second phase of this project, anticipated to be completed by the end of FY 2023.
5 Department of Housing

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FY 2023 Budget Amendments

5. Pasadena Public Health Department (PPHD) Grants
• Recognize revenue and appropriate $1,264,336, and add

1.00 limit
ed-term and 8.50 permanent FTEs in the Public
Health Fund (203).
 State of California/Department of Public Health: $1,033,025 in ongoing funding to support 8.50 permanent FTEs, which will support long-term public health infrastructure through opportunities and initiatives found within the Community Health Assessment/Community Health Improvement Plan an Strategic Plan goals.
 Nutrition Education and Obesity Prevention Program Grant : $110,925
to support 1.0 limited-term FTE; the program provides nutrition education, promotes physical activity, implements CalFresh, and supports partnerships and coalition to increase healthy eating and physical activity opportunities for residents.
6 Pasadena Public Health Department

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FY 2023 Budget Amendments

5. Pasadena Public Health Department (PPHD) Grants
(cont’d)
 Nutrition Education and Diabetes Prevention Program: recognize and appropriate $74,128, to support contracted Promotoras community health workers, supplies, communication materials, and travel expenses, which will provide health advocacy, outreach health system, and resource navigation.
 Children & Youth with Special Health Care Needs Grant : recognize and
appropriate $25,558 to provide system navigation support and linkages to services, mentoring, and other peer-to-peer support.  ArtCenter College of Design Vaccine Outreach Grant
: recognize and
appropriate $20,700 to create three marketable community prototypes that will help increase knowledge and awareness of COVID-19 vaccines for youth; funding will cover Promotoras, a media campaign, survey incentives, and evaluation costs.
7 Pasadena Public Health Department

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FY 2023 Budget Amendments

5. Pasadena Public Health Department (PPHD) Grants
(cont’d)
 Pasadena Outreach Response Team (PORT): recognize $224,000 in revenue to the Public Health Fund to keep PORT fully funded as previous grant funding expired in September 2022; this revenue from the General Fund was inadvertently omitted during the annual budget process.
8 Pasadena Public Health Department

Page 56 ends

FY 2023 Budget Amendments

6. Public Works Department Budget Adjustment
• Appropriate $780,000 in the Measure W Local Return
Dollars Fund and
the Building Maintenance Fund.
 Appropriate $630,000 in the Measure W Fund (237) to utilize funding and align wi
th specific operations.
 Appropriate $150,000 in the Building Maintenance Fund (502) to support one-
time emergency repair work at various City buildings.
9 Department of Public Works

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FY 2023 Budget Amendments

7. Police Department Grants
• Recognize revenue and appropriate $551,514 for two
grants
in the General Fund (101) and authorize the City
Manager to enter into an agreement with the State of
California for acceptance of the STEP and Pedestrian &
Bicycle Safety grants.
 Selective Traffic Enforcement Program grant (STEP): $515,000 to provide directed enforcement at DUI checkpoints and to conduct bicycle safety and other enforcement programs. The grant period is October 1, 2022 to September 30, 2023.
 Pedestrian and Bicycle Safety Program grant: $36,514 to help reduce the number of persons killed and injured in collisions, including classroom education, community events, and workshops.

The grant period is October 1, 2022 to September 30, 2023. 10 Pasadena Police Department

Page 58 ends

FY 2023 Budget Amendments

8. Public Art Projects
• Appropriate $536,000 in the Capital Public Art Fund (310). • Robinson Park Recreation Center: appropriate
$186,000 to create permanent public artwork.
• Additional Public Art Development: appropriate
$200,000 for a second art piece, the location of which
has yet to be determined.
• Rotating Public Art Exhibition Program Series IV:
appropriate $150,000 to install the next phase of this
project at different sites throughout the City.
11 Department of Planning and Community Development

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FY 2023 Budget Amendments

9. FTE Reclassification for City Manager’s Office
• Add 0.5 FTE to incr ease a limited-term Administrative Intern in the Public Affairs Division to a full-time permanent Public Information Specialist.
 Appropriate $64,897 in additional funding to support this position, which ass
ists in the day-to-day tasks of the Division, including creating graphic/visual materials, planning special events, and managing content of the departmental website.
12 City Manager’s Office

Page 60 ends

INFORMATION ONLY
ITEM 4

REVIEW OF

CALIFORNIA PUBLIC
EMPLOYEES’ RETIREMENT SYSTEM
JULY 2022 PENSION VALUATIONS AND

FUTURE FORECAST

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California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2021
Miscellaneous Plan of the City of Pasadena (CalPERS ID: 6556986602) Annual Valuation Report as of June 30, 2020
Dear Employer,
Attached to this letter, you will find the June 30, 2020 actuarial valuation report of your CalPERS pension plan. Provided in this report is the determination of the minimum required employer contributions for fiscal year 2022-

23. In addition, the report also contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Actuarial valuations are based on assumptions regarding future plan experience including investment return and payroll growth, eligibility for the types of benefits provided, and longevity among retirees. The CalPERS Board of Administration adopts these as sumptions after considering the advice of CalPERS actuarial and investment teams and other professionals. Each actuarial valuation reflects all prior differences between actual and assumed experience and adjusts the contribution requirements as needed. This valuation is based on an investment return assumption of 7.0 %, which was adopted by the board in December 2016. Other assumptions used in this report are those recommended in the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017.

Required Contributions
The table below shows the minimum required employer contributions and the Employee PEPRA Rate for fiscal year 2022- 23 along with an estimate of the required contribution for fiscal year 2023-24. Employee contributions other than cost sharing (whether paid by the employer or the employee) are in addition to the results shown below. The required employer contributions in this report do not reflect any cost sharing arrangement you may have with your employees.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
Employee
PEPRA Rate
2022-23 9.59% $32,474,454 7.00%
Projected Results
2023-24 9.4% $34,556,000 TBD
The actual investment return for fiscal year 2020-21 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 7.0%. To the extent the actual investment return for fiscal year 2020-21 differs from 7.0%, the actual contribution requirements for fiscal year 2023-24 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section.

This section also contains projected required contributions through fiscal year 2027-28.

Changes from Previous Year’s Valuations
There are no significant changes in actuarial assumptions or policies in your 2020 actuarial valuation. Your annual valuation report is an important tool for monitoring the health of your CalPERS pension Plan. Your report contains useful information about future required contributions and ways to control your plan’s funding progress.

In addition to your annual actuarial report, my office has developed tools for employers to plan, project and protect the retirement benefits of your employees. Pension Outlook is a tool to help plan and budget pension costs into the future with easy to understand results and charts.

You will be able to view the projected funded status and required employer contributions for pension plans in different potential scenarios for up to 30 years into the future — which will make budgeting more predictable. While Attachment A

Page 67 ends

Miscellaneous Plan of the City of Pasadena
(CalPERS ID: 6556986602)
Annual Valuation Report as of June 30, 2020

Page 2 ends

Pension Outlook cannot predict the future, it can provide valuable planning information based on a variety of future scenarios that you select.

Pension Outlook can help you answer specific questions about your plans, including:
• When is my plan’s funded status expected to increase? • What happens to my required contributions in a down market? • How does the discount rate assumption affect my contributions? • What is the impact of making an additional discretionary payment to my plan? To get started, visit our Pension Outlook page at www.calpers.ca.gov/page/employers/actuarial-resources/pension- outlook-overview and take the steps to register online.

CalPERS will be completing an Asset Liability Management (ALM) review process in November 2021 that will review the capital market assumptions and the strategic asset allocation and ascertain whether a change in the discount rate and other economic assumptions is warranted. In addition, the A ctuarial Office will be completing its Experience Study to review the demographic experience within the pension system and make recommendations to modify future assumptions where appropriate. Any assumption change stemming from these studies will be reflected in the June 30, 2021 actuarial valuation.

Furthermore, this valuation does not reflect any impacts from the COVID-19 pandemic on your pension plan. The impact of COVID-19 on retirement plans is not yet known and CalPERS actuaries will continue to monitor the effects and, where necessary, make future adjustments to actuarial assumptions.

Further descriptions of general changes are included in the “Highlights and Executive Summary” section and in Appendix A, “Actuarial Methods and Assumptions.” The eff ects of the changes on the required contributions are included in the “Reconciliation of Required Employer Contributions” section.

Questions
We understand that you might have questions about these results, and your assigned CalPERS actuary whose signature is on the valuation report is available to discuss. If you have other questions, you may call the Customer Contact Center at (888)-CalPERS or (888-225-7377).

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS

Page 68 ends

Actuarial Valuation
as of June 30, 2020
for the
Miscellaneous Plan
of the
City of Pasadena
(CalPERS ID: 6556986602)
(Rate Plan ID: 74)
Required Contributions
for Fiscal Year
July 1, 2022 – June 30, 2023

Page 69 ends

Table of Contents

Actuarial Certification 1

Highlights and Executive Summary
Introduction 3
Purpose of the Report 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Cost 7
Changes Since the Prior Year’s Valuation 8
Subsequent Events 8
Assets
Reconciliation of the Market Value of Assets 10
Asset Allocation 11
CalPERS History of Investment Returns 12

Liabilities and Contributions
Development of Accrued and Unfunded Liabilities 14
(Gain) / Loss Analysis 6/30/19 - 6/30/20 15
Schedule of Amortization Bases 16
Amortization Schedule and Alternatives 18
Reconciliation of Required Employer Contributions 20
Employer Contribution History 21
Funding History 21
Normal Cost by Benefit Group 22
PEPRA Member Contribution Rates 23

Risk Analysis
Future Investment Return Scenarios 25
Discount Rate Sensitivity 26
Mortality Rate Sensitivity 26
Maturity Measures 27
Maturity Measures History 28
Hypothetical Termination Liability 29

Plan’s Major Benefit Provisions
Plan’s Major Benefit Options 31

Appendix A – Actuarial Methods and Assumptions
Actuarial Data A-1
Actuarial Methods A-1
Actuarial Assumptions A-4
Miscellaneous A-22

Appendix B – Principal Plan Provisions B-1

Appendix C – Participant Data
Summary of Valuation Data C-1
Active Members C-2
Transferred and Terminated Members C-3
Retired Members and Beneficiaries C-4

Appendix D – Glossary of Actuarial Terms D-1

(CY) FIN JOB INSTANCE ID: 380745 (PY) FIN JOB INSTANCE ID: 352343 REPORT ID: 380763

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 1 ends

Actuarial Certification
To the best of our knowledge, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Miscellaneous Plan of the City of Pasadena. This valuation is based on the member and financial data as of June 30, 2020 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. It is our opinion that the valuation has been performed in accord ance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPE RS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

STUART BENNETT, ASA, MAAA
Senior Pension Actuary, CalPERS

Page 71 ends

Highlights and Executive Summary
• Introduction
• Purpose of the Report
• Required Contributions
• Additional Discretionary Employer Contributions
• Plan’s Funded Status
• Projected Employer Contributions
• Cost
• Changes Since the Prior Year’s Valuation
• Subsequent Events

Page 72 ends

CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 3 ends

Introduction
This report presents the results of the June 30, 2020 actuarial valuation of the Miscellaneous Plan of the City of Pasadena of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required employer contributions for fiscal year 2022-23.

Purpose of the Report
The actuarial valuation was prepared by the CalPERS Actuarial Office using data as of June 30, 2020. The purpose of the report is to:
• Set forth the assets and accrued liabilities of this plan as of June 30, 2020; • Determine the minimum required employer contribution s for the fiscal year July 1, 2022 through June 30, 2023;
• Provide actuarial information as of June 30, 2020 to the CalPERS Board of Administrati on and other interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement No. 68 for an Agent Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available from CalPERS and details for ordering are available on the CalPERS website (calpers.ca.gov).

The measurements shown in this actuarial valuation may not be applicable for other purposes. The employer should contact their actuary before disseminating any portion of this report for any reason that is not explicitly described above.

Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: plan experience differing from that anticipated by the econo mic or demographic assumptions; changes in economic or demographic assumptions; changes in actuarial policies; and changes in plan provisions or applicable law.

Assessment and Disclosure of Risk
This report includes the following risk disclosures consistent with the recommendations of Actuarial Standards of Practice No. 51 and recommended by the California Actuarial Advisory Panel (CAAP) in the Model Disclosure Elements document:
• A “Scenario Test,” projecting future results under different investment income returns. • A “Sensitivity Analysis,” showing the impact on current valuation results using alternative discount rates of 6.0% and 8.0%.
• A “Sensitivity Analysis,” showing the impact on current valuation results assuming rates of mortality are 10% lower or 10% higher than our current mortality assumptions adopted in 2017. • Plan maturity measures indicating how sensitive a plan may be to the risks noted above.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 4 ends

Required Contributions
Fiscal Year
Required Employer Contribution 2022-23
Employer Normal Cost Rate 9.59%
Plus, Either
1) Monthly Employer Dollar UAL Payment $2,706,205
Or
2) Annual UAL Prepayment Option* $31,394,240
Required PEPRA Member Contribution Rate 7.00%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll) and the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly in dollars).
* Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31) . Any prepayment totaling over $5 million requires a 72 -hour notice email to [email protected]. Plan Normal Cost contributio ns will be made as part of the payroll reporting process. If there is contractual cost sharing or other change, this amount will change.

In accordance with Sections 20537 and 20572 of the Public Employees’ Retirement Law, if a contracting agency fails to remit the required contributions when due, interest and penalties may apply.

For additional detail regarding the determination of the required contribution for PEPRA members, see ”PEPRA Member Contribution Rates” in the “Liabilities and Contributions” sec tion. Required member contributions for Classic members can be found in Appendix B.

Fiscal Year Fiscal Year
2021-22 2022-23
Normal Cost Contribution as a Percentage of Payroll
Total Normal Cost 17.50% 17.27%
Employee Contribution1 7.73% 7.68%
Employer Normal Cost2 9.77% 9.59%
Projected Annual Payroll for Contribution Year $122,010,833 $125,576,470 Estimated Employer Contributions Based On
Projected Payroll
Total Normal Cost $21,351,896 $21,687,056
Employee Contribution1 9,431,437 9,644,273
Employer Normal Cost2 11,920,459 12,042,783
Unfunded Liability Contribution 29,667,129 32,474,454
% of Projected Payroll (illustrative only) 24.32% 25.86% Estimated Total Employer Contribution $41,587,588 $44,517,237 % of Projected Payroll (illustrative only) 34.09% 35.45% 1 For classic members, this is the percentage specified in the Public Employees’ Retirement Law, net of any reduction from the use of a modified formula or other factors. For PEPRA members, the member contribution rate is based on 50 % of the normal cost. A development of PEPRA member contribution rates can be found in the “Liabilities and Contributions” section. Employee cost sharing is not shown in this report. 2 The Employer Normal Cost is a blended rate for all benefit groups in the plan. For a breakout of normal cost by benefit group, see “Normal Cost by Benefit Group” in the “Liabilities and Contributions” section.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 5 ends

Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2022-23 fiscal year is $32,474,454. CalPERS allows employers to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Employers can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

Provided below are select ADP options for consideration. Making such an ADP during fiscal year 2022-23 does not require an ADP be made in any future year, nor does it change the remaining amortization period of any portion of unfunded liability. For information on permanent changes to amortization periods, see the “Amortization Schedule and Alternatives” section of the report.

If you are considering making an ADP, please contact your actuary for additional information.

Minimum Required Employer Contribution for Fiscal Year 2022-23 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$12,042,783 $32,474,454 $0 $32,474,454 $44,517,237
Alternative Fiscal Year 2022-23 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
15 years $12,042,783 $32,474,454 $2,752,292 $35,226,746 $47,269,529 10 years $12,042,783 $32,474,454 $13,206,254 $45,680,708 $57,723,491 5 years $12,042,783 $32,474,454 $45,775,967 $78,250,421 $90,293,204 1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

Note that the calculations above are based on the projected Unfunded Accrued Liability as of June 30, 2022 as determined in the June 30, 2020 actuarial valuation. New unfunded liabilities can emerge in future years due to assumption or method changes, changes in plan provisions and actuarial experience different than assumed. Making an ADP illustrated above for the indicated number of years will not result in a plan that is exactly 100% funded in the indicated number of years. Valuation results will vary from one year to the next and can diverge significantly from projections over a period of several years.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 6 ends

Plan’s Funded Status
This measure of funded status is an assessment of the need for future employer contributions based on the actuarial cost method used to fund the plan. The UAL is the present value of future employer contributions for service that has already been earned and is in addition to future normal cost contributions for active members. For a measure of funded status that is appropriate for assessing the sufficiency of plan assets to cover estimated termination liabilities, please see “Hypothetical Termination Liability” in the “Risk Analysis” section.

Projected Employer Contributions
The table below shows the required and projected emplo yer contributions (before cost sharing) for the next six fiscal years. The projection assumes that all actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur during the projection p eriod. Actual contribution rates during this projection period could be significantly higher or lower than the projection shown below. The projected normal cost percentages in the projections below reflect that the normal cost will continue to decline over time as new employees are hired into PEPRA or other lower cost benefit tiers.

Required
Contribution
Projected Future Employer Contributions
(Assumes 7.00% Return for Fiscal Year 2020-21)
Fiscal Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Normal Cost % 9.59% 9.4% 9.2% 9.0% 8.8% 8.7%
UAL Payment $32,474,454 $34,556,000 $36,872,000 $34,948,000 $36,121,000 $34,339,000 Total as a % of Payroll* 35.45% 36.2% 37.0% 34.7% 34.6% 32.6% Projected Payroll $125,576,470 $129,029,823 $132,578,144 $136,224,042 $139,970,203 $143,819,384 *Illustrative only and based on the projected payroll shown.

For some sources of UAL, the change in UAL is amortized using a 5-year ramp up. For more information, please see “Amortization of the Unfunded Actuarial Accrued Liability” under “Actuarial Methods” in Appendix A. This method phases in the impact of the change in UAL over a 5 -year period in order to reduce employer cost volatility from year to year. As a result of this methodology, dramatic changes in the required employer contributions in any one year are less likely. However, required contributions can change gradually and significantly over the next five years. In yea rs when there is a large increase in UAL, the relatively small amortization payments during the ramp up period could result in a funded ratio that is projected to decrease initially while the contribution impact of the increase in the UAL is phased in.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

Our online pension plan modeling and projection tool, Pension Outlook, is available in the Employer s section of the CalPERS website. Pension Outlook is a tool to help plan and budget pension costs into the future with results and charts that are easy to understand.

June 30, 2019 June 30, 2020

1. Present Value of Projected Benefits $1,339,828,094 $1,381,253,222

2. Entry Age Accrued Liability 1,185,916,510 1,224,053,312

3. Market Value of Assets (MVA) 859,554,755 881,049,908

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $326,361,755 $343,003,404

5. Funded Ratio [(3) / (2)] 72.5% 72.0%

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 7 ends

Cost
Actuarial Determination of Pension Plan Cost
Contributions to fund the pension plan are comprised of two components:
• Normal Cost, expressed as a percentage of total active payroll • Amortization of the Unfunded Accrued Liability (UAL), expressed as a dollar amount For fiscal years prior to 2017-18, the Amortization of UAL component was expressed as perce ntage of total active payroll. Starting with fiscal year 2017-18, the Amortization of UAL component is expressed as a dollar amount and invoiced on a monthly basis. There is an option to prepay this amount during July of each fiscal year.

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

The determination of both components requires complex actuarial calculations. The calculations are based on a set of actuarial assumptions which can be divided into two categories:
• Demographic assumptions (e.g., mortality rates, retirement rates, employment termination rates, disability rates)
• Economic assumptions (e.g., future investment earnings, inflation, salary growth rates) These assumptions reflect CalPERS’ best estimate of future experience of the plan and are long term in nature.

We recognize that all assumptions will not be realized in any given year. For example, the investment earnings at CalPERS have averaged 5.5% over the 20 years ending June 30, 2020 , yet individual fiscal year returns have ranged from -23.6% to +20.7%. In addition, CalPERS reviews all actuarial assumptions by conducting in-depth experience studies every four years, with the most recent experience study completed in 2017.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 8 ends

Changes Since the Prior Year’s Valuation
Benefits
The standard actuarial practice at CalPERS is to recognize mandated legislative benefit changes in the first annual valuation following the effective date of the legislation. Voluntary benefit changes by plan amendment are generally included in the first valuation that is prepared after the amendment becomes effective , even if the valuation date is prior to the effective date of the amendment.

This valuation generally reflects plan changes by amendments effective before the date of the report. Please refer to the “Plan’s Major Benefit Options” and Appendix B for a summary of the plan provisions used in th is valuation. The effect of any mandated benefit changes or plan amendments on the unfunded liability is shown in the “(Gain)/Loss Analysis” and the effect on the employer contribution is shown in the “Reconciliation of Required Employer Contributions.” It should be noted that no change in liability or contribution is shown for any plan changes which were already included in the prior year’s valuation.

Actuarial Methods and Assumptions
The are no significant changes to the actuarial methods or assumptions for the 2020 actuarial valuation.

Subsequent Events
The contribution requirements determined in this actuarial valuation report are based on demographic and financial information as of June 30, 2020 . Changes in the value of assets subsequent to that date are not reflected. Investment returns below the assumed rate of return will increase future required contributions while investment returns above the assumed rate of return will decrease future required contributions.

CalPERS will be completing an Asset Liability Management (ALM) review process in November 2021 that will review the capital market assumptions and the strategic asset allocation and ascertain whether a change in the discount rate and other economic assumptions is warranted. In addition, the Actuarial Office will be completing its Experience Study to review the demographic experience within the pension system and make recommendations to modify future assumptions where appropriate.

Furthermore, this valuation does not reflect any impacts from the COVID-19 pandemic on your pension plan.

The impact of COVID-19 on retirement plans is not yet known and CalPERS actuaries will continue to monitor the effects and, where necessary, make future adjustments to actuarial assumptions.

The projected employer contributions on Page 6 are calculated under the assumption that the disco unt rate remains at 7.0% going forward and that the realized rate of return on assets for fiscal year 2020-21 is 7.0%.

This actuarial valuation report reflects statutory changes, regulatory changes and CalPERS Board actions through January 2021. Any subsequent changes or actions are not reflected.

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Assets
• Reconciliation of the Market Value of Assets
• Asset Allocation
• CalPERS History of Investment Returns

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 10 ends

Reconciliation of the Market Value of Assets

1. Market Value of Assets as of 6/30/19 including Receivables $859,554,755

2. Change in Receivables for Service Buybacks (79,383)

3. Employer Contributions 35,785,979

4. Employee Contributions 8,671,099

5. Benefit Payments to Retirees and Beneficiaries (60,734,017)

6. Refunds (601,613)

7. Transfers 0

8. Service Credit Purchase (SCP) Payments and Interest 303,552

9. Administrative Expenses (663,379)

10. Miscellaneous Adjustments 0

11. Investment Return (Net of Investment Expenses) 38,812,914

12. Market Value of Assets as of 6/30/20 including Receivables $881,049,908

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 11 ends

Asset Allocation
CalPERS adheres to an Asset Allocation Strategy which establishes asset class allocation policy targets and ranges and manages those asset class allocations within their policy ranges. CalPERS Investment Belief No. 6 recognizes that strategic asset allocat ion is the dominant determinant of portfolio risk and return. On December 19, 2017, the CalPERS Board of Administration adopted changes to the current asset allocation as shown in the Policy Target Allocation below expressed as a percentage of total assets.

The asset allocation shown below reflect the allocation of the Public Employees’ Retirement Fund (PERF) in its entirety as of June 30, 2020. The assets for City of Pasadena Miscellaneous Plan are part of the PERF and are invested accordingly.

Asset Class
Actual
Allocation
Policy Target
Allocation
Public Equity 53.0% 50.0%
Private Equity 6.3% 8.0%
Global Fixed Income 28.3% 28.0%
Real Assets 11.3% 13.0%
Liquidity 0.9% 1.0%
Inflation Sensitive Assets 0.0% 0.0%
Trust Level1 0.2% 0.0%
Total Fund 100.0% 100.0%
1 Trust Level includes Multi-Asset Class, Completion Overlay, Risk Mitigation, Absolute Return Strategies, Plan Level Transition and other Total Fund level portfolios.

Strategic Asset Allocation Policy Targets

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 12 ends

CalPERS History of Investment Returns
The following is a chart with the 20-year historical annual returns of the PERF for each fiscal year ending on June 30. Beginning in 2002, investment returns reported are net of investment expenses and gross of administrative expenses.

The table below shows annual ized investment returns of the PERF for various time periods ending on June 30, 2020 (figures reported are net of investment expenses and gross of administrative expenses). These returns are the annual rates that if compounded over the indicated number of years would equate to the actual performance of the PERF. It should be recognized that in any given year the rate of return is volatile.

The portfolio has an expected volatility of 11.4% per year based on the most recent Asset Liability Modeling study. The realized volatility is a measure of the risk of the portfolio expressed as the standard deviation of the fund’s total monthly return distribution, expressed as an annual percentage. Due to their volatile nature, when looking at investment returns, it is more instructive to look at returns over longer time horizons.

History of CalPERS Compound Annual Rates of Return and Volatilities 1 year 5 year 10 year 20 year 30 year
Compound Annual Return 4.7% 6.3% 8.5% 5.5% 8.0%
Realized Volatility – 7.3% 7.1% 8.6% 8.6%

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Liabilities and Contributions
• Development of Accrued and Unfunded Liabilities
• (Gain) / Loss Analysis 6/30/19 - 6/30/20
• Schedule of Amortization Bases
• Amortization Schedule and Alternatives
• Reconciliation of Required Employer Contributions
• Employer Contribution History
• Funding History
• Normal Cost by Benefit Group
• PEPRA Member Contribution Rates

Page 83 ends

CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 14 ends

Development of Accrued and Unfunded Liabilities
June 30, 2019 June 30, 2020

1. Present Value of Projected Benefits
a) Active Members $543,121,915 $547,554,674
b) Transferred Members 45,724,547 49,547,640
c) Terminated Members 28,259,718 30,164,539
d) Members and Beneficiaries Receiving Payments 722,721,914 753,986,369 e) Total $1,339,828,094 $1,381,253,222

2. Present Value of Future Employer Normal Costs $83,448,935 $84,469,841

3. Present Value of Future Employee Contributions $70,462,649 $72,730,069

4. Entry Age Accrued Liability
a) Active Members [(1a) - (2) - (3)] $389,210,331 $390,354,764 b) Transferred Members (1b) 45,724,547 49,547,640
c) Terminated Members (1c) 28,259,718 30,164,539
d) Members and Beneficiaries Receiving Payments (1d) 722,721,914 753,986,369 e) Total $1,185,916,510 $1,224,053,312

5. Market Value of Assets (MVA) $859,554,755 $881,049,908

6. Unfunded Accrued Liability (UAL) [(4e) - (5)] $326,361,755 $343,003,404

7. Funded Ratio [(5) / (4e)] 72.5% 72.0%

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 15 ends

(Gain)/Loss Analysis 6/30/19 – 6/30/20
To calculate the cost requirements of the plan, assumptions are made about future events that affect the amount and timing of benefits to be paid and assets to be accumulated. Each year , actual experience is compared to the expected experience based on the actuarial assumptions. This results in actuarial gains or losses, as shown below.

1. Total (Gain)/Loss for the Year
a) Unfunded Accrued Liability (UAL) as of 6/30/19 $326,361,755 b) Expected Payment on the UAL during 2019-20 24,115,968 c) Interest through 6/30/20 [.07 x (1a) - ((1.07)½ - 1) x (1b)] 22,015,541 d) Expected UAL before all other changes [(1a) - (1b) + (1c)] 324,261,328 e) Change due to plan changes 0
f) Change due to AL Significant Increase 0
g) Change due to assumption change 0
h) Change due to method change 0
i) Expected UAL after all other changes [(1d) + (1e) + (1f) + (1g) + (1h)] 324,261,328 j) Actual UAL as of 6/30/20 343,003,404
k) Total (Gain)/Loss for 2019-20 [(1j) - (1i)] $18,742,076

2. Contribution (Gain)/Loss for the Year
a) Expected Contribution (Employer and Employee) $44,544,931 b) Interest on Expected Contributions 1,532,704
c) Actual Contributions 44,457,079
d) Interest on Actual Contributions 1,529,681
e) Expected Contributions with Interest [(2a) + (2b)] 46,077,635 f) Actual Contributions with Interest [(2c) + (2d)] 45,986,760 g) Contribution (Gain)/Loss [(2e) - (2f)] $90,875

3. Investment (Gain)/Loss for the Year
a) Market Value of Assets as of 6/30/19 $859,554,755
b) Prior Fiscal Year Receivables (1,283,732)
c) Current Fiscal Year Receivables 1,204,349
d) Contributions Received 44,457,079
e) Benefits and Refunds Paid (61,335,630)
f) Transfers, SCP Payments and Interest, and Miscellaneous Adjustments 303,552 g) Expected Return [.07 x (3a + 3b) + ((1.07)½ - 1) x ((3d) + (3e) + (3f))] 59,508,658 h) Expected Assets as of 6/30/20 [(3a) + (3b) + (3c) + (3d) + (3e) + (3f) + (3g)] 902,409,031 i) Actual Market Value of Assets as of 6/30/20 881,049,908 j) Investment (Gain)/Loss [(3h) - (3i)] $21,359,123

4. Liability (Gain)/Loss for the Year
a) Total (Gain)/Loss (1j) $18,742,076
b) Contribution (Gain)/Loss (2g) 90,875
c) Investment (Gain)/Loss (3j) 21,359,123
d) Liability (Gain)/Loss [(4a) - (4b) - (4c)] ($2,707,922)

5. Non-Investment (Gain)/Loss for the Year
a) Contribution (Gain)/Loss (2g) $90,875
b) Liability (Gain)/Loss (4d) (2,707,922)
c) Non-Investment (Gain)/Loss [(5a) + (5b)] ($2,617,047)

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 16 ends

Schedule of Amortization Bases
Below is the schedule of the plan’s amortization bases. Note that there is a two-year lag between the valuation date and the start of the contribution fiscal year. • The assets, liabilities, and funded status of the plan are measured as of the valuation date: June 30, 2020. • The required employer contributions determined by the valuation are for the fiscal year beginning two years after the valuation date: fiscal year 2022-23.

This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and the need to provide public agencies with their required employer contribution well in advance of the start of the fiscal year.

The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the expected payment on the UAL for the fiscal year and adjusting for interest. The expected payment on the UAL for a fiscal year is equal to the Expected Employer Contribution for the fiscal year minus the Expected Normal Cost for the year. The Employer Contribution for the first fiscal year is determined by the actuarial valuation two ye ars ago and the contribution for the second year is from the actuarial valuation one year ago. Additional discretionary payments are reflected in the Expected Payments column in the fiscal year they were made by the agency.

Reason for Base
Date
Est.

Ramp
Level
2022-23
Ramp
Shape
Escala-
tion
Rate
Amort.

Period
Balance
6/30/20
Expected
Payment
2020-21
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Minimum
Required
Payment
2022-23
Assumption Change 6/30/03 No Ramp 2.75% 3 13,843,667 3,100,729 11,605,305 3,185,999 9,122,053 3,273,613 Method Change 6/30/04 No Ramp 2.75% 4 (1,355,427) (257,977) (1,183,453) (265,072) (992,102) (272,361) Benefit Change 6/30/05 No Ramp 2.75% 4 2,549,594 485,262 2,226,107 498,607 1,866,171 512,319 Benefit Change 6/30/06 No Ramp 2.75% 5 13,451,050 2,237,330 12,078,311 2,298,856 10,545,838 2,362,075 Assumption Change 6/30/09 No Ramp 2.75% 9 41,192,612 4,705,082 39,209,120 4,834,471 36,952,943 4,967,420 Special (Gain)/Loss 6/30/09 No Ramp 2.75% 19 28,303,085 2,029,200 28,185,280 2,085,004 28,001,505 2,142,341 Special (Gain)/Loss 6/30/10 No Ramp 2.75% 20 9,158,432 637,746 9,139,833 655,284 9,101,790 673,304 Assumption Change 6/30/11 No Ramp 2.75% 11 17,519,728 1,757,540 16,928,095 1,805,873 16,245,052 1,855,534 Special (Gain)/Loss 6/30/11 No Ramp 2.75% 21 (6,892,278) (467,052) (6,891,615) (479,896) (6,877,620) (493,094) Payment (Gain)/Loss 6/30/12 No Ramp 2.75% 22 814,638 53,816 815,995 55,296 815,916 56,816 (Gain)/Loss 6/30/12 No Ramp 2.75% 22 18,962,654 1,252,689 18,994,248 1,287,138 18,992,419 1,322,534 (Gain)/Loss 6/30/13 100% Up/Down 2.75% 23 111,676,185 7,575,776 111,657,074 7,784,110 111,421,123 7,998,173 Assumption Change 6/30/14 100% Up/Down 2.75% 14 59,095,294 5,619,324 57,419,291 5,773,856 55,466,118 5,932,637 (Gain)/Loss 6/30/14 100% Up/Down 2.75% 24 (101,029,346) (6,680,756) (101,190,772) (6,864,477) (101,173,456) (7,053,250) (Gain)/Loss 6/30/15 100% Up/Down 2.75% 25 33,870,412 1,771,561 34,408,824 2,275,348 34,463,803 2,337,921 Assumption Change 6/30/16 100% Up/Down 2.75% 16 19,563,266 1,065,119 19,830,927 1,459,213 19,709,670 1,874,177 (Gain)/Loss 6/30/16 100% Up/Down 2.75% 26 51,054,118 2,006,358 52,552,513 2,748,711 53,387,900 3,530,376 Assumption Change 6/30/17 80% Up/Down 2.75% 17 20,876,819 761,282 21,550,720 1,173,326 21,845,573 1,607,456 (Gain)/Loss 6/30/17 80% Up/Down 2.75% 27 (40,869,338) (1,086,375) (42,606,437) (1,674,376) (43,856,900) (2,293,895) Method Change 6/30/18 60% Up/Down 2.75% 18 8,272,684 154,241 8,692,224 316,966 8,972,808 488,523

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 17 ends

Schedule of Amortization Bases (continued)
Reason for Base
Date
Est.

Ramp
Level
2022-23
Ramp
Shape
Escala-
tion
Rate
Amort.

Period
Balance
6/30/20
Expected
Payment
2020-21
Balance
6/30/21
Expected
Payment
2021-22
Balance
6/30/22
Minimum
Required
Payment
2022-23
Assumption Change 6/30/18 60% Up/Down 2.75% 18 36,227,366 675,446 38,064,595 1,388,041 39,293,316 2,139,319 (Gain)/Loss 6/30/18 60% Up/Down 2.75% 28 (12,421,675) (169,653) (13,115,702) (348,637) (13,673,168) (537,337) Non-Investment (Gain)/Loss 6/30/19 No Ramp 0.00% 19 (4,523,013) 0 (4,839,624) (441,631) (4,721,571) (441,631) Investment (Gain)/Loss 6/30/19 40% Up Only 0.00% 19 4,920,801 0 5,265,257 115,119 5,514,745 230,239 Non-Investment (Gain)/Loss 6/30/20 No Ramp 0.00% 20 (2,617,047) 0 (2,800,240) 0 (2,996,257) (273,418) Investment (Gain)/Loss 6/30/20 20% Up Only 0.00% 20 21,359,123 0 22,854,262 0 24,454,060 534,663 Total 343,003,404 27,226,688 338,850,138 29,667,129 331,881,729 32,474,454

Page 87 ends

CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 20 ends

Amortization Schedule and Alternatives
The amortization schedule on the previous page shows the minimum contributions required according to the CalPERS amortization policy. Many agencies have expressed a desire for a more stable pattern of payments or have indicated interest in paying off the unfunded accrued liabilities more quickly than required. As such, we have provided alternat ive amortization schedules to help analyze the current amortization sched ule and illustrate the potential savings of accelerating unfunded liability payments.

Shown on the following page are future year amortization payments based on 1) the current amortization schedule reflecting the individual bases and remaining periods shown on the previous page, and 2) alternative “fresh start” amortization schedules using two sample periods that would both result in interest savings relative to the current amortization schedule. To initiate a Fresh Start, please consult with your plan actuary.

The Current Amortization Schedule typically contains both positive and negative bases. Positive bases result from plan changes, assumption changes, method changes or plan experience that increase unfunded liability.

Negative bases result from plan changes, assumption changes , method changes, or plan experience that decrease unfunded liability. The combination of positive and negative bases within an amortization schedule can result in unusual or problematic circumstances in future years, such as:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

In any year whe n one of the above scenarios occurs, the actuary will consider corrective action such as replacing the existing unfunded liability bases with a single “fresh start” base and amortizing it over a reasonable period.

The Current Amortiz ation Schedule on the following page may appear to show that, based on the current amortization bases, one of the above scenarios will occur at some point in the future. It is impossible to know today whether such a scenario will in fact arise since there will be additional bases added to the amortization schedule in each future year. Should such a scenario arise in any future year, the actuary will take appropriate action based on guidelines in the CalPERS amortization policy.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 19 ends

Amortization Schedule and Alternatives
(continued)
Alternative Schedules
Current Amortization
Schedule 15 Year Amortization 10 Year Amortization
Date Balance Payment Balance Payment Balance Payment
6/30/2022 331,881,729 32,474,454 331,881,729 35,226,746 331,881,729 45,680,708 6/30/2023 321,521,613 34,555,581 318,674,621 35,226,747 307,860,958 45,680,708 6/30/2024 308,283,553 36,872,090 304,543,014 35,226,747 282,158,733 45,680,708 6/30/2025 291,722,615 34,947,563 289,422,195 35,226,746 254,657,353 45,680,708 6/30/2026 275,993,157 36,120,843 273,242,919 35,226,747 225,230,876 45,680,708 6/30/2027 257,948,986 34,339,266 255,931,093 35,226,746 193,744,546 45,680,708 6/30/2028 240,484,602 35,213,912 237,407,440 35,226,747 160,054,172 45,680,708 6/30/2029 220,892,971 36,112,614 217,587,130 35,226,746 124,005,472 45,680,708 6/30/2030 199,000,302 37,036,031 196,379,400 35,226,747 85,433,363 45,680,708 6/30/2031 174,619,955 31,643,699 173,687,128 35,226,747 44,161,207 45,680,708 6/30/2032 154,110,855 30,887,914 149,406,397 35,226,747 6/30/2033 132,947,908 27,567,798 123,426,014 35,226,746 6/30/2034 113,737,909 26,094,080 95,627,006 35,226,747
6/30/2035 94,707,637 23,948,582 65,882,066 35,226,746
6/30/2036 76,564,568 20,386,631 34,054,981 35,226,746
6/30/2037 60,835,992 18,394,979
6/30/2038 46,066,598 16,280,280
6/30/2039 32,450,808 14,631,753
6/30/2040 19,587,162 13,537,030
6/30/2041 6,955,450 7,194,773
6/30/2042
6/30/2043
6/30/2044
6/30/2045
6/30/2046
6/30/2047
6/30/2048
6/30/2049
6/30/2050
6/30/2051
Total 548,239,873 528,401,198 456,807,080
Interest Paid 216,358,144 196,519,469 124,925,351
Estimated Savings 19,838,675 91,432,793

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 20 ends

Reconciliation of Required Employer
Contributions
Normal Cost (% of Payroll)

1. For Period 7/1/21 – 6/30/22
a) Employer Normal Cost 9.77%
b) Employee Contribution 7.73%
c) Total Normal Cost 17.50%

2. Changes since the prior year annual valuation
a) Effect of demographic experience (0.23%)
b) Effect of plan changes 0.00%
c) Effect of assumption changes 0.00%
d) Effect of method changes 0.00%
e) Net effect of the changes above [sum of (a) through (d)] (0.23%)

3. For Period 7/1/22 – 6/30/23
a) Employer Normal Cost 9.59%
b) Employee Contribution 7.68%
c) Total Normal Cost 17.27%
Employer Normal Cost Change [(3a) – (1a)] (0.18%)
Employee Contribution Change [(3b) – (1b)] (0.05%)
Unfunded Liability Contribution ($)

1. For Period 7/1/21 – 6/30/22 29,667,129

2. Changes since the prior year annual valuation
a) Effect of adjustments to prior year’s amortization schedule 0 b) Effect of investment (gain)/loss during prior year1 534,663 c) Effect of non-investment (gain)/loss during prior year (273,418) d) Effect of plan changes 0
e) Effect of AL Significant Increase 0
f) Effect of assumption changes 0
g) Changes to prior year amortization payments2 2,546,080 h) Effect of changes due to Fresh Start or immediate recognition of small balances 0 i) Effect of elimination of amortization base 0
j) Effect of method change 0
k) Net effect of the changes above [sum of (a) through (j)] 2,807,325

3. For Period 7/1/22 – 6/30/23 [(1) + (2k)] 32,474,454
The amounts shown for the period 7/1/21 – 6/30/22 may be different if a prepayment of unfunded actuarial liability is made or a plan change became effective after the prior year’s actuarial valuation was performed. 1 The unfunded liability contribution for the investment (gain)/loss during the year prior to the valuation date is 20% of the “full” annual requirement due to the 5 -year ramp. Increases to this amount that occur during the ramp period will be included in line g) in future years.
2 Includes scheduled escalation in individual amortization base payments due to the 5-year ramp and payroll growth assumption used in the pre-2019 amortization policy.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

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Employer Contribution History
The table below provides a recent history of the required employer contributions for the plan . The amounts are based on the actuarial valuation from two years prior and does not account for prepayments or benefit changes made during a fiscal year. Additional discretionary payments before July 1, 201 8 or after June 30, 2020 are not included.

Fiscal
Year
Employer
Normal Cost Unfunded Rate
Unfunded Liability
Payment ($)
Additional Discretionary
Payments
2013 - 14 7.652% 9.725% N/A N/A
2014 - 15 7.606% 11.613% N/A N/A
2015 - 16 7.834% 13.242% N/A N/A
2016 - 17 8.079% 14.791% N/A N/A
2017 - 18 7.986% N/A 18,895,540 N/A
2018 - 19 8.384% N/A 21,920,840 0
2019 - 20 9.246% N/A 25,084,564 0
2020 - 21 10.017% N/A 27,226,688
2021 - 22 9.77% N/A 29,667,129
2022 - 23 9.59% N/A 32,474,454
Funding History
The table below shows the recent history of actuarial accrued liability, market value of assets, unfunded accrued liability, funded ratio and annual covered payroll. []
Valuation
Date
Accrued
Liability
(AL)
Market Value
of Assets
(MVA)
Unfunded
Accrued
Liability (UAL)
Funded
Ratio
Annual
Covered
Payroll
6/30/2011 $819,326,665 $592,157,276 $227,169,389 72.3% $110,571,480 6/30/2012 852,217,331 579,464,081 272,753,250 68.0% 105,200,914 6/30/2013 882,571,786 641,332,816 241,238,970 72.7% 104,378,040 6/30/2014 956,141,980 737,836,011 218,305,969 77.2% 103,616,666 6/30/2015 982,773,869 734,946,333 247,827,536 74.8% 104,325,149 6/30/2016 1,026,335,679 719,443,542 306,892,137 70.1% 107,586,597 6/30/2017 1,074,696,279 780,285,565 294,410,714 72.6% 108,837,570 6/30/2018 1,149,745,884 825,785,242 323,960,642 71.8% 110,137,195 6/30/2019 1,185,916,510 859,554,755 326,361,755 72.5% 112,474,197 6/30/2020 1,224,053,312 881,049,908 343,003,404 72.0% 115,761,136

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

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Normal Cost by Benefit Group
The table below displays the Total Normal Cost broken out by benefit group for fiscal year 2022-23. The Total Normal Cost is the annual cost of service accrual for the fiscal year for active employees and can be viewed as the long-term contribution rate for the benefits contracted. Generally, the normal cost for a benefit group subject to more generous benefit provisions will exceed the normal cost for a group with less generous benefits. However, based on the characteristics of the members (particularly when the number of actives is small), this may not be the case. Future measurements of the Total Normal Cost for each group may differ significantly from the current values due to such factors as: changes in the demographics of the group, changes in economic and demographic assumptions, changes in plan benefits or applicable law.

Rate Plan
Identifier Benefit Group Name
Total Normal
Cost
FY 2022-23
Number of
Actives
Payroll on
6/30/2020
74 Miscellaneous First Level 16.28% 7 $614,332
26041 Miscellaneous PEPRA Level 14.01% 538 $36,296,836
30202 Miscellaneous Second Level 18.82% 863 $78,849,968 Plan Total 17.27% 1,408 $115,761,136
Note that if a Benefit Group above has multiple bargaining units, each of which has separately contracted for different benefits such as Employer Paid Member Contributions, then the Normal Cost split does not reflect those differences. Additionally, if a Second Level Benefit Group amended to the same benefit formula as a First Level Benefit Group , their Normal Costs may be dissimilar due to demographic or other population differences. If you have questions in these situations, please consult with your plan actuary.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

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PEPRA Member Contribution Rates
The California Public Employees’ Pension Reform Act of 2013 (“ PEPRA”) established new benefit formulas , final compensation period , and contribution requirements for “new” employees (generally those first hired into a CalPERS-covered position on or after January 1, 2013) . In accordance with Government Code section 7522.30(b), “new members … shall have an initial contribution rate of at least 50% of the normal cost rate.” The normal cost for the plan is dependent on the benefit levels, actuarial assumptions and demographics of the plan, particularly members’ entry age into the plan. Should the total normal cost of the plan change by more than 1% from the base total normal cost establis hed for the plan, the new member rate shall be 50% of the new normal cost rounded to the nearest quarter percent.

The table below shows the determination of the PEPRA member contribution rates effective July 1, 2022, based on 50% of the Total Normal Cost for each respective plan as of the June 30, 2020 valuation.

Basis for Current Rate Rates Effective July 1, 2022
Rate Plan
Identifier Benefit Group Name
Total
Normal
Cost
Member
Rate
Total
Normal
Cost
Change Change
Needed
Member
Rate
26041 Miscellaneous PEPRA
Level 13.845% 7.00% 14.01% 0.165% No 7.00%
For purposes of setting member rates, it is preferable to determine total normal cost using a large active population so that the rate remains relatively stable. While each CalPERS non -pooled plan has a sufficiently large active population for this purpose, the PEPRA active population by itself may not be sufficiently large.

The total PEPRA normal cost will be determined based on the plan’s PEPRA membership only if the number of members covered under the PEPRA formula meets either:

1. 50% of the active population, or

2. 25% of the active population and 100 or more PEPRA members Until one of these con ditions is met, the plan’s total PEPRA normal cost will be determined using the entire active plan population (both PEPRA and Classic) based on the PEPRA benefit provisions. For this reason, the PEPRA member contribution rate determined in the table above may not equal 50% of the total normal cost of the PEPRA group shown on the “Normal Cost by Benefit Group” page.

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Risk Analysis
• Future Investment Return Scenarios
• Discount Rate Sensitivity
• Mortality Rate Sensitivity
• Maturity Measures
• Maturity Measures History
• Hypothetical Termination Liability

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

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Future Investment Return Scenarios
Analysis was performed to determine the effects of various future investment returns on required employer contributions. The projections below provide a range of results based on five investment return scenarios assumed to occur during the next four fiscal years (2020-21, 2021-22, 2022-23 and 2023-24). The projections also assume that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur.

For fiscal years 2020-21, 2021-22, 2022-23, and 2023-24 each scenario assumes an alternate fixed annual return. The fixed return assumptions for the five scenarios are 1.0%, 4.0%, 7.0%, 9.0% and 12.0%.

These alternate investment returns were chosen based on stochastic analysis of possi ble future investment returns over the four-year period ending June 30, 2024. Using the expected returns and volatility of the asset classes in which the funds are invested, we produced five thousand stochastic outcomes for this period based on the recently completed Asset Liability Management process. We then selected annual returns that approximate the 5th, 25th, 50th, 75th, and 95th percentiles for these outcomes. For example, of all the four-year outcomes generated in the stochastic analysis, approximately 25% had an average annual return of 4.0% or less.

Required contributions outside of this range are also possible. In particular, whereas it is unlikely that investment returns will average less than 1.0% or greater than 12.0% over a four-year period, the likelihood of a single investment return less than 1.0% or greater than 12.0% in any given year is much greater.

Assumed Annual Return From
2020-21 through 2023-24
Projected Employer Contributions
2023-24 2024-25 2025-26 2026-27

1.0%
Normal Cost 9.4% 9.2% 9.0% 8.8%
UAL Contribution $35,866,000 $40,796,000 $42,781,000 $49,156,000

4.0%
Normal Cost 9.4% 9.2% 9.0% 8.8%
UAL Contribution $35,211,000 $38,854,000 $38,944,000 $42,839,000

7.0%
Normal Cost 9.4% 9.2% 9.0% 8.8%
UAL Contribution $34,556,000 $36,872,000 $34,948,000 $36,121,000

9.0%
Normal Cost 9.6% 9.7% 9.8% 9.9%
UAL Contribution $34,193,000 $35,865,000 $33,010,000 $32,896,000

12.0%
Normal Cost 9.6% 9.7% 9.8% 9.9%
UAL Contribution $33,541,000 $33,837,000 $28,802,000 $25,609,000 These projections reflect changes to the amortization policy effective with the June 30, 2019 valuation as well as the impact of the CalPERS risk mitigation policy (which reduces the discount rate when investment returns exceed specified trigger points). The projected normal cost percentages reflect that normal cost is anticipated to decline over time as new employees are hired into PEPRA or other lower-cost benefit tiers.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

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Discount Rate Sensitivity
The discount rate assumption is calculated as the sum of the assumed real rate of return and the assumed annual price inflation, currently 4.50% and 2.50%, respectively. Changing either the price inflation assumption or the real rate of return assumption will change the discount rate. The sensitivity of the valuation results to the discount rate assumption depends on which component of the discount rate is changed. Shown below are various valuation results as of June 30, 2020 assuming alternate discount rates by changing the two components independently. Results are shown using the current discount rate of 7.0% as well as alternate discount rates of 6.0% and 8.0%. The rates of 6.0% and 8.0% were selected since they illustrate the impact of a 1.0% increase or decrease to the 7.0% assumption.

Sensitivity to the Real Rate of Return Assumption
As of June 30, 2020 1% Lower
Real Return Rate
Current
Assumptions
1% Higher
Real Return Rate
Discount Rate 6.0% 7.0% 8.0%
Inflation 2.5% 2.5% 2.5%
Real Rate of Return 3.5% 4.5% 5.5%
a) Total Normal Cost 21.71% 17.27% 13.90%
b) Accrued Liability $1,377,317,663 $1,224,053,312 $1,096,561,032 c) Market Value of Assets $881,049,908 $881,049,908 $881,049,908 d) Unfunded Liability/(Surplus) [(b) - (c)] $496,267,755 $343,003,404 $215,511,124 e) Funded Status 64.0% 72.0% 80.3%
Sensitivity to the Price Inflation Assumption
As of June 30, 2020 1% Lower
Inflation Rate
Current
Assumptions
1% Higher
Inflation Rate
Discount Rate 6.0% 7.0% 8.0%
Inflation 1.5% 2.5% 3.5%
Real Rate of Return 4.5% 4.5% 4.5%
a) Total Normal Cost 18.59% 17.27% 15.77%
b) Accrued Liability $1,290,938,507 $1,224,053,312 $1,138,437,591 c) Market Value of Assets $881,049,908 $881,049,908 $881,049,908 d) Unfunded Liability/(Surplus) [(b) - (c)] $409,888,599 $343,003,404 $257,387,683 e) Funded Status 68.2% 72.0% 77.4%
Mortality Rate Sensitivity
The following table looks at the change in the June 30, 2020 plan costs and funded status under two different longevity scenarios, namely assuming rates of mortality are 10% lower or 10% higher than our current mortality assumptions. This type of analysis highlights the impact on the plan of improving or worsening mortality over the long term.

As of June 30, 2020 10% Lower
Mortality Rates
Current
Assumptions
10% Higher
Mortality Rates
a) Total Normal Cost 17.58% 17.27% 16.99%
b) Accrued Liability $1,250,284,208 $1,224,053,312 $1,199,937,520 c) Market Value of Assets $881,049,908 $881,049,908 $881,049,908 d) Unfunded Liability/(Surplus) [(b) - (c)] $369,234,300 $343,003,404 $318,887,612 e) Funded Status 70.5% 72.0% 73.4%

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

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Maturity Measures
As pension plans mature they become more sensitive to risks. Understanding plan maturity and how it affects the ability of a pension plan sponsor to tolerate risk is important in understanding how the plan is impacted by investment return volatility, other economic variables and changes in longevity or other demographic assumptions. One way to look at the maturity level of CalPERS and its plans is to look at the ratio of a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio increases. A mature plan will often have a ratio above 60%-65%.

Ratio of Retiree Accrued Liability to
Total Accrued Liability June 30, 2019 June 30, 2020

1. Retiree Accrued Liability 722,721,914 753,986,369

2. Total Accrued Liability 1,185,916,510 1,224,053,312

3. Ratio of Retiree AL to Total AL [(1) / (2)] 61% 62%
Another measure of the maturity level of CalPERS and its plans is the ratio of actives to retirees, also called Support Ratio. A pension plan in its infancy will have a very high ratio of active to retired members. As the plan matures, and members retire, the ratio declines. A mature plan will often have a ratio near or below one.

The average support ratio for CalPERS public agency plans is 1.25.

Support Ratio June 30, 2019 June 30, 2020

1. Number of Actives 1,408 1,408

2. Number of Retirees 1,737 1,770

3. Support Ratio [(1) / (2)] 0.81 0.80
The actuarial calculations supplied in this communication are based on various assumptions about long-term demographic and economic behavior. Unless these assumptions ( e.g., terminations, deaths, disabilities, retirements, salary growth, investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year -to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise required employer contributions from one year to the next. Therefore, employer contributions will inevitably fluctuate, especially due to the ups and downs of investment returns.

Asset Volatility Ratio
Shown in the table below is the asset volatility ratio (AVR), which is the ratio of market value of assets to payroll. Plans that have a higher AVR experience more volatile employer contributions (as a percentage of payroll) due to investment return. For example, a plan with AVR of 8 may experience twice the contribution volatility due to investment return volatility than a plan with AVR of 4. It should be noted that this ratio is a measure of the current situation. It increases over time but generally tends to stabilize as a plan matures.

Liability Volatility Ratio
Also shown in the table below is t he liability volatility ratio (LVR), which is t he ratio of accrued liability to payroll. Plans that have a higher LVR experience more volatile employer contributions (as a percentage of payroll) due to changes in liability. For example, a plan with LVR of 8 is expected to have twice the contribution volatility of a plan with LVR of 4 when there is a change in accrued liability, such as when there is a change in actuarial assumptions. It should be noted that this ratio indicates a longer -term potential for contribution volatility, since the AVR, described above, will tend to move closer to the LVR as the funded status approaches 100%.

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 28 ends

Maturity Measures (continued)
Contribution Volatility June 30, 2019 June 30, 2020

1. Market Value of Assets without Receivables $858,271,023 $879,845,559

2. Payroll 112,474,197 115,761,136

3. Asset Volatility Ratio (AVR) [(1) / (2)] 7.6 7.6

4. Accrued Liability $1,185,916,510 $1,224,053,312

5. Liability Volatility Ratio (LVR) [(4) / (2)] 10.5 10.6 Maturity Measures History
Valuation Date
Ratio of
Retiree Accrued Liability
to
Total Accrued Liability
Support
Ratio
Asset
Volatility
Ratio
Liability
Volatility
Ratio
6/30/2017 58% 0.85 7.2 9.9
6/30/2018 59% 0.83 7.5 10.4
6/30/2019 61% 0.81 7.6 10.5
6/30/2020 62% 0.80 7.6 10.6

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 29 ends

Hypothetical Termination Liability
The hypothetical termination liability is an estimate of the financial position of the plan had the contract with CalPERS been terminated as of June 30, 2020. The plan liability on a termination basis is calculated differently from the plan’s ongoing funding liability. For this hypothetical termination liability calculation, both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are assumed. This measure of funded status is not appropriate for assessing the need for future employer contributions in the case of an ongoing plan, that is, for an employer that continues to provide CalPERS retirement benefits to active employees.

A more conservative investment policy and asset allocation strategy was adopted by the CalPERS Board for the Terminated Agency Pool . The Terminated Agency Pool has limited funding sources since no future employer contributions will be made. Therefore, expected benefit payments are secured by risk -free assets and benefit security for members is increased while limiting the funding risk. However, this asset allocation has a lower expected rate of return than the PERF and consequently, a lower discount rate assumption. The lower discount rate for the Terminated Agency Pool results in higher liabilities for terminated plans.

The effective termination discount rate will depend on actual market rates of return for risk-free securities on the date of termination. As market discount rates are variable the table below shows a range for the hypothetical termination liability based on the lowest and highest interest rates observed during an approximate 19-month period from 12 months before the valuation date to 7 months after. [
Market
Value of
Assets (MVA)
Hypothetical
Termination
Liability1,2
at 0.75%
Funded
Status
Unfunded
Termination
Liability
at 0.75%
Hypothetical
Termination
Liability1,2
at 2.50%
Funded
Status
Unfunded
Termination
Liability
at 2.50%
$881,049,908 $2,731,878,768 32.3% $1,850,828,860 $2,095,364,873 42.0% $1,214,314,965 1 The hypothetical liabilit ies calculated above include a 5% contingency load in accordance with Board policy. Other actuarial assumptions can be found in Appendix A.
2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date.

The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 1.18% on June 30, 2020, and was 1.68% on January 31, 2021.

In order to terminate the plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow the plan actuary to give y ou a preliminary termination valuation with a more up-to-date estimate of the plan liabilities. CalPERS advises you to consult with the plan actuary before beginning this process.

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Plan’s Major Benefit Provisions

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 31 ends

Plan’s Major Benefit Options
Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions is in Appendix B.

Benefit Group
Member Category Misc Misc Misc Misc Misc Misc Misc
Demographics
Actives No Yes No Yes Yes No No
Transfers/Separated Yes Yes Yes Yes Yes No No
Receiving Yes Yes Yes Yes Yes Yes Yes
Benefit Group Key 105626 105628 105630 105632 111345 111347 200556 Benefit Provision
Benefit Formula 2% @ 55 2.5% @ 55 2% @ 55 2.5% @ 55 2% @ 62 Social Security Coverage No No No No No
Full/Modified Full Full Full Full Full
Employee Contribution Rate 8.00% 8.00% 7.00%
Final Average Compensation Period One Year One Year Three Year Three Year Three Year Sick Leave Credit Yes Yes Yes Yes Yes
Non-Industrial Disability Standard Standard Standard Standard Standard Industrial Disability No No No No No
Pre-Retirement Death Benefits
Optional Settlement 2 Yes Yes Yes Yes Yes
1959 Survivor Benefit Level Level 4 Level 4 Level 4 Level 4 Level 4 Special No No No No No
Alternate (firefighters) No No No No No
Post-Retirement Death Benefits
Lump Sum $500 $500 $500 $500 $500 $500 $500
Survivor Allowance (PRSA) Yes Yes No No No No No
COLA 2% 2% 2% 2% 2% 2% 2%

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CalPERS Actuarial Valuation - June 30, 2020
Miscellaneous Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 32 ends

Benefit Group
Member Category Misc Misc Misc Misc Misc
Demographics
Actives No No No No No
Transfers/Separated No No No No No
Receiving Yes Yes Yes Yes Yes
Benefit Group Key 200557 200562 200566 200568 200569
Benefit Provision
Benefit Formula
Social Security Coverage
Full/Modified
Employee Contribution Rate
Final Average Compensation Period
Sick Leave Credit
Non-Industrial Disability
Industrial Disability
Pre-Retirement Death Benefits
Optional Settlement 2
1959 Survivor Benefit Level
Special
Alternate (firefighters)
Post-Retirement Death Benefits
Lump Sum $500 $500 $500 $500 $500
Survivor Allowance (PRSA) No No Yes Yes Yes
COLA 2% 2% 2% 2% 2%

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Appendices
• Appendix A – Actuarial Methods and Assumptions
• Appendix B – Principal Plan Provisions
• Appendix C – Participant Data
• Appendix D – Glossary of Actuarial Terms

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Appendix A
Actuarial Methods and Assumptions
• Actuarial Data
• Actuarial Methods
• Actuarial Assumptions
• Miscellaneous

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-1
Actuarial Data
As stated in the Actuarial Certification, the data which serves as the basis of this valuation has been obtained from the various CalPERS databases. We have reviewed the valuation data and believe that it is reasonable and appropriate in aggregate. We are unaware of any potential data issues that would have a material effect on the results of this valuation, except that data does not always contain the latest salary information for former members now in reciprocal systems and does not recognize the potential for unusually large salary deviation in certain cases such as elected officials . Therefore, salary information in these cases may not be accurate. These situations are relatively infrequent, however, and generally do not have a material impact on the required employer contributions.

Actuarial Methods
Actuarial Cost Method
The actuarial cost method used is the Entry Age Actuarial Cost Method. Under this method, projected benefits are determined for all members and the associated liabilities are spread in a manner that produces level annual cost as a percent age of pay in each year from the member’s entry age to their assumed retirement age on the valuation date. The cost allocated to the current fiscal year is called the normal cost.

The actuarial accrued liability for active members is then calculated as the portion of the total cost of the plan allocated to prior years. The actuarial accrued liability for membe rs currently receiving benefits and for members entitled to deferred benefits is equal to the present value of the benefits expected to be paid. No normal costs are applicable for these participants.

CalPERS uses an in-house proprietary actuarial model for calculating pension plan costs. We believe this model is fit for its intended purpose and meets all applicable Actuarial Standards of Practice. Furthermore, the actuarial results of o ur model are independently confirmed periodically by outside auditing actuaries. The actuarial assumptions used are internally consistent and the generated results reasonable. A further refinement to the actuarial model will be the introduction of generati onal mortality in the June 30, 2021 actuarial valuation.

Amortization of Unfunded Actuarial Accrued Liability
The excess of the total actuarial accrued liability over the market value of plan assets is called the unfunded actuarial accrued liability (UAL). Funding requirements are determined by adding the normal cost and a payment toward the UAL. The UAL payment is equal to the sum of individual amortization payments, each representing a different source of UAL for a given measurement period.

Amortization payments are determined according to the CalPERS amortization policy. The CalPERS Board adopted a new policy effective for the June 30, 2019 actuarial valuation. The new policy applies prospectively only; amortization bases (sources of UAL) established prior to the June 30, 2019 valuation will continue to be amortized according to the prior policy.

Prior Policy (Bases Established prior to June 30, 2019) Amortization payments are determined as a level percentage of payroll whereby the payment increases each year at an escalation rate. G ains or losses are amortized over a fixed 30 -year period with a 5 -year ramp up at the beginning and a 5-year ramp down at the end of the amortization period. All changes in liability due to plan amendments (other than golden handshakes) are amortized over a 20-year period with no ramp. Changes in actuarial assumptions or changes in actuarial methodology are amortized over a 20 -year period with a 5- year ramp up at the beginning and a 5 -year ramp down at the end of the am ortization period. Changes in unfunded accrued liability due to a Golden Handshake will be amortized over a period of five years. Bases established prior to June 30, 2013 may be amortized differently. A summary is provided in the following table:

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-2
Driver
Source
(Gain)/Loss
Assumption/Method
Change
Benefit
Change
Golden
Handshake Investment
Non-
investment
Amortization
Period 30 Years 30 Years 20 Years 20 Years 5 Years
Escalation Rate
- Active Plans
- Inactive Plans

2.75%
0%

2.75%
0%
Ramp Up 5 5 5 0 0
Ramp Down 5 5 5 0 0
The 5-year ramp up means that the payments in the first four years of the amortization period are 20%, 40%, 60% and 80% of the “full” payment which begins in year five. The 5-year ramp down means that the reverse is true in the final four years of the amortization period.

Current Policy (Bases Established on or after June 30, 2019) Amortization payments are determined as a level dollar amount. Investment g ains or losses are amortized over a fixed 20-year period with a 5-year ramp up at the beginning of the amortization period. Non-investment gains or losses are amortized over a fixed 20-year period with no ramps. All changes in liability due to plan amendments (other than golden handshakes) are amortized over a 20 -year period with no ramps. Changes in actuarial assumptions or changes in actuarial methodology are amortized over a 20 -year period with no ramps. Changes in unfunded accrued liability due to a Golden Handshake are amortized over a period of five years. A summary is provided in the table below:

Source
(Gain)/Loss
Assumption/
Method
Change
Benefit
Change
Golden
Handshake Investment
Non-
investment
Amortization Period 20 Years 20 Years 20 Years 20 Years 5 Years Escalation Rate 0% 0% 0% 0% 0%
Ramp Up 5 0 0 0 0
Ramp Down 0 0 0 0 0
Exceptions for Inconsistencies
An exception to the amortization rules above is used whenever their application results in inconsistencies. In these cases, a “fresh start” approach is used. This means that the current unfunded actuarial liability is projected and amortized over a set number of years. For example, a fresh start is needed in the following situations:
• When a negative payment would be required on a positive unfunded actuarial liability; or • When the payment would completely amortize the total unfunded liability in a very short time period, and results in a large change in the employer contribution requirement.

It should be noted that the actuary may determine that a fresh start is necessary under other circumstances.

In all cases of a fresh start, the period is set by the actuary at what is deemed appropriate ; however, the period will not be greater than 20 years.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-3
Exceptions for Plans in Surplus
If a surplus exists (i.e. the Market Value of Assets exceeds the plan’s accrued liability) any prior amortization layers shall be considered fully amortized, and the surplus shall not be amortized.

In the event of any subsequent unfunded liability, a Fresh Start shall be used with an amortization period of 20 years or less.

Exceptions for Small Amounts
Where small unfunded liabilities are identified in annual valuations which result in small payment amounts, the actuary may shorten the remaining period for these bases. • When the balance of a single amortization base has an absolute value less than $250, the amortization period is reduced to one year.
• When the entire unfunded liability is a small amount the actuary may perform a Fresh Start and use an appropriate amortization period.

Exceptions for Inactive Plans
The following exceptions apply to plans classified as Inactive. These plans have no active members and no expectation to have active members in the future.
• Amortization of the unfunded liability is on a “level dollar” basis rather than a “level percent of pay” basis. For amortization layers, which utilize a ramp up and ramp down, the “ultimate” payment is constant.
• Actuarial judgment will be used to shorten amortization periods for Inactive plans with existing periods that are deemed too long given the duration of the liability. The specific demographics of the plan will be used to determine if shorter periods may be more appropriate.

Exceptions for Inactive Agencies
For a public agency with no active members in any CalPERS rate plan, the unfunded liability shall be amortized over a closed amortization period of no more than 15 years.

Asset Valuation Method
The Actuarial Value of Assets is set equal to the market value of assets. Asset values include accounts receivable.

PEPRA Normal Cost Rate Methodology
Per Government Code Section 7522.30(b), the “normal cost rate” shall mean the annual actuarially determined normal cost for the plan of retirement benefits provided to the new member and shall be established based on actuarial assumptions used to determine the liabilities and costs as part of the annual actuarial valuation.

The plan of retirement benefits shall include any elements that would impact the actuarial determination of the normal cost, including, but not limited to, the retirement formula, eligibility and vesting criteria, ancillary benefit provisions, and any automatic cost-of-living adjustments as determined b y the public retirement system.

For purposes of setting member rates, it is preferable to determine total normal cost using a large active population so that the rate remains relatively stable. While each CalPERS non-pooled plan has a sufficiently large active population for this purpose, the PEPRA active population by itself may not be sufficiently large.

The total PEPRA normal cost will be determined based on the plan’s PEPRA membership only if the number of members covered under the PEPRA formula meets either:

1. 50% of the active population, or

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Actuarial Assumptions
In 201 7, CalPERS completed its most recent asset liability management study incorporating actuarial assumptions and strategic asset allocation. In December 2017, the CalPERS Board of Administration adopted relatively modest changes to the asset allocation that reduced the expected volatility of returns. The adopted asset allocation was expected to have a long-term blended return that continue d to support a discount rate assumption of 7.00%. The Board also approved several changes to the demographic assumptions that more closely aligned with actual experience.

On December 21, 2016, the CalPERS Board of Administration lowered the discount rate from 7.50% to 7.00% using a three-year phase-in beginning with the June 30, 2016 actuarial valuations. The minimum employer contributions for fiscal year 2022-23 determined in this valuation were calculat ed using a discount rate of

7.00%. The decision to reduce the discount rate was primarily based on reduced capital market assumptions provided by external investment consultants and CalPERS investment staff. The specific decision adopted by the Board reflected recommendations from CalPERS staff and additional input from employer and employee stakeholder groups. Based on the investment allocation adopted by the Board and capital market assumptions, the reduced discount rate schedule provides a more realistic assumption for the long-term investment return of the fund.

Notwithstanding the Board’s decision to phase into a 7.00% discount rate, subsequent analysis of the expected investment return of CalPERS assets or changes to the investment allocation may result in a change to this discount rate schedule.

For more details and additional rationale for the selection of the actuarial assumptions, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website under: “Forms and Publications”. Click on “View All” and search for Experience Study.

All actuarial assumptions (except the discount rates used for the hypothetical termination liability) represent an estimate of future experience rather than observations of the estimates inherent in market data.

Economic Assumptions
Discount Rate
The prescribed discount rate assumption, adopted by the Board on December 21, 2016, is 7.00% compounded annually (net of investment and administrative expenses) as of June 30, 2020.

Termination Liability Discount Rate
The current discount rate assumption used for termi nation valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date.

The hypothetical termination liabilities in this report are calculated using an observed range of market interest rates. This range is based on the lowest and highest 20-year Treasury bond observed during an approximate 19-month period from 12 months before the valuation date to 7 months after . The 20-year Treasury bond has a similar duration to most plan liabilities and serves as a good proxy for the termination discount rate. The 20-year Treasury yield was 1.18% on June 30, 2020.

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Salary Growth
Annual increases vary by category, entry age, and duration of service. A sample of assumed increases are shown below . Wage inflation assum ption in the valuation year (2. 75% for 2020) is added to these factors for total salary growth.

Public Agency Miscellaneous
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.0850 0.0775 0.0650
1 0.0690 0.0635 0.0525
2 0.0560 0.0510 0.0410
3 0.0470 0.0425 0.0335
4 0.0400 0.0355 0.0270
5 0.0340 0.0295 0.0215
10 0.0160 0.0135 0.0090
15 0.0120 0.0100 0.0060
20 0.0090 0.0075 0.0045
25 0.0080 0.0065 0.0040
30 0.0080 0.0065 0.0040
Public Agency Fire
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1700 0.1700 0.1700
1 0.1100 0.1100 0.1100
2 0.0700 0.0700 0.0700
3 0.0580 0.0580 0.0580
4 0.0473 0.0473 0.0473
5 0.0372 0.0372 0.0372
10 0.0165 0.0165 0.0165
15 0.0144 0.0144 0.0144
20 0.0126 0.0126 0.0126
25 0.0111 0.0111 0.0111
30 0.0097 0.0097 0.0097
Public Agency Police
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1027 0.1027 0.1027
1 0.0803 0.0803 0.0803
2 0.0628 0.0628 0.0628
3 0.0491 0.0491 0.0491
4 0.0384 0.0384 0.0384
5 0.0300 0.0300 0.0300
10 0.0145 0.0145 0.0145
15 0.0150 0.0150 0.0150
20 0.0155 0.0155 0.0155
25 0.0160 0.0160 0.0160
30 0.0165 0.0165 0.0165

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Salary Growth (continued)
Public Agency County Peace Officers
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.1320 0.1320 0.1320
1 0.0960 0.0960 0.0960
2 0.0657 0.0657 0.0657
3 0.0525 0.0525 0.0525
4 0.0419 0.0419 0.0419
5 0.0335 0.0335 0.0335
10 0.0170 0.0170 0.0170
15 0.0150 0.0150 0.0150
20 0.0150 0.0150 0.0150
25 0.0175 0.0175 0.0175
30 0.0200 0.0200 0.0200
Schools
Duration of Service (Entry Age 20) (Entry Age 30) (Entry Age 40) 0 0.0428 0.0419 0.0380
1 0.0428 0.0419 0.0380
2 0.0428 0.0419 0.0380
3 0.0354 0.0332 0.0280
4 0.0305 0.0279 0.0224
5 0.0262 0.0234 0.0180
10 0.0171 0.0154 0.0112
15 0.0152 0.0134 0.0098
20 0.0135 0.0117 0.0086
25 0.0120 0.0103 0.0076
30 0.0087 0.0071 0.0048
• The Miscellaneous salary scale is used for Local Prosecutors. • The Police salary scale is used for Other Safety, Local Sheriff, and School Police.

Overall Payroll Growth

2.75% compounded annually (used in projecting the payroll over which the unf unded liability is amortized). This assumption is used for all plans with active members.

Inflation

2.50% compounded annually.

Non-valued Potential Additional Liabilities
The potential liability loss for a cost-of-living increase exceeding the 2.50% inflation assumption and any potential liability loss from future member service purchases are not reflected in the valuation.

Miscellaneous Loading Factors
Credit for Unused Sick Leave
Total years of service is increased by 1% for those plans that have adopted the provision of providing Credit for Unused Sick Leave.

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Conversion of Employer Paid Member Contributions (EPMC) Total years of service is increased by the Employee Contribution Rate for those plans with the provision providing for the Conversion of Employer Paid Member Contributions (EPMC) during the final compensation period.

Norris Decision (Best Factors)
Employees hired prior to July 1, 1982 have projected benefit amounts increased in order to reflect the use of “Best Factors” in the calculation of optional benefit forms. This is due to a 1983 Supreme Court decision, known as the Norris decision, which required males and females to be treated equally in the det ermination of benefit amounts. Consequently, anyone already employed at that time is given the best possible conversion factor when op tional benefits are determined. No loading is necessary for employees hired after July 1, 1982.

Termination Liability
The termination liabilities include a 5% contingency load. This load is for unforeseen negative experience.

Demographic Assumptions
Pre-Retirement Mortality
Non-industrial death rates vary by age and gender. Industrial death rates vary by age. See sample rates in table below. The non-industrial death rates are used for all plans. The industrial death rates are used for safety p lans (except for Loca l Prosecutor safety members where the corresponding miscellaneous plan does not have the Industrial Death Benefit).

Non-Industrial Death Industrial Death
(Not Job-Related) (Job-Related)
Age Male Female Male and Female
20 0.00022 0.00007 0.00004
25 0.00029 0.00011 0.00006
30 0.00038 0.00015 0.00007
35 0.00049 0.00027 0.00009
40 0.00064 0.00037 0.00010
45 0.00080 0.00054 0.00012
50 0.00116 0.00079 0.00013
55 0.00172 0.00120 0.00015
60 0.00255 0.00166 0.00016
65 0.00363 0.00233 0.00018
70 0.00623 0.00388 0.00019
75 0.01057 0.00623 0.00021
80 0.01659 0.00939 0.00022
Miscellaneous plans usually have industrial death rates set to zero unless the agency h as specifically contracted for industrial death benefits. If so, each non-industrial death rate shown above will be split into two components ; 99% will become the non -industrial d eath rate and 1 % will become the industrial death rate.

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Post-Retirement Mortality
Rates vary by age, type of retirement, and gender. See sample rates in table below. These rates are used for all plans.

Healthy Recipients
Non-Industrially Disabled Industrially Disabled
(Not Job-Related) (Job-Related)
Age Male Female Male Female Male Female
50 0.00372 0.00346 0.01183 0.01083 0.00372 0.00346
55 0.00437 0.00410 0.01613 0.01178 0.00437 0.00410
60 0.00671 0.00476 0.02166 0.01404 0.00671 0.00476
65 0.00928 0.00637 0.02733 0.01757 0.01113 0.00765
70 0.01339 0.00926 0.03358 0.02183 0.01607 0.01111
75 0.02316 0.01635 0.04277 0.02969 0.02779 0.01962
80 0.03977 0.03007 0.06272 0.04641 0.04773 0.03609
85 0.07122 0.05418 0.09793 0.07847 0.08547 0.06501
90 0.13044 0.10089 0.14616 0.13220 0.14348 0.11098
95 0.21658 0.17698 0.21658 0.21015 0.21658 0.17698
100 0.32222 0.28151 0.32222 0.32226 0.32222 0.28151
105 0.46691 0.43491 0.46691 0.43491 0.46691 0.43491
110 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
The post-retirement mortality rates above include 15 years of projected on -going mortality improvement using 90% of Scale MP 2016 published by the Society of Actuaries.

Marital Status
For active members, a percentage who are married upon retirement is assumed according to member category as shown in the following table.

Member Category Percent Married
Miscellaneous Member 70%
Local Police 85%
Local Fire 90%
Other Local Safety 70%
School Police 85%
Local County Peace Officers 75%
Age of Spouse
It is assumed that female spouses are 3 years younger than male spouses. This assumption is used for all plans.

Terminated Members
It is assumed that terminated members refund immediately if non-vested. Terminated members who are vested are assumed to retire at age 59 for Miscellaneous members and age 54 for safety members.

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Termination with Refund
Rates vary by entry age and service for miscellaneous plans. Rates vary by service for safety plans.

See sample rates in tables below.

Public Agency Miscellaneous
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45 0 0.1742 0.1674 0.1606 0.1537 0.1468 0.1400
1 0.1545 0.1477 0.1409 0.1339 0.1271 0.1203
2 0.1348 0.1280 0.1212 0.1142 0.1074 0.1006
3 0.1151 0.1083 0.1015 0.0945 0.0877 0.0809
4 0.0954 0.0886 0.0818 0.0748 0.0680 0.0612
5 0.0212 0.0193 0.0174 0.0155 0.0136 0.0116
10 0.0138 0.0121 0.0104 0.0088 0.0071 0.0055
15 0.0060 0.0051 0.0042 0.0032 0.0023 0.0014
20 0.0037 0.0029 0.0021 0.0013 0.0005 0.0001
25 0.0017 0.0011 0.0005 0.0001 0.0001 0.0001
30 0.0005 0.0001 0.0001 0.0001 0.0001 0.0001
35 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001
Public Agency Safety
Duration of Service Fire Police County Peace Officer
0 0.1298 0.1013 0.1188
1 0.0674 0.0636 0.0856
2 0.0320 0.0271 0.0617
3 0.0237 0.0258 0.0445
4 0.0087 0.0245 0.0321
5 0.0052 0.0086 0.0121
10 0.0005 0.0053 0.0053
15 0.0004 0.0027 0.0025
20 0.0003 0.0017 0.0012
25 0.0002 0.0012 0.0005
30 0.0002 0.0009 0.0003
35 0.0001 0.0009 0.0002
The police termination and r efund rates are also used for Public Agency Local Prosecutors, Other Safety, Local Sheriff, and School Police.

Schools
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 Entry Age 45 0 0.2107 0.2107 0.1827 0.1546 0.1375 0.1203
1 0.1807 0.1807 0.1526 0.1246 0.1105 0.0963
2 0.1526 0.1526 0.1259 0.0992 0.0878 0.0765
3 0.1266 0.1266 0.1023 0.0780 0.0691 0.0603
4 0.1026 0.1026 0.0815 0.0605 0.0537 0.0469
5 0.0808 0.0808 0.0634 0.0461 0.0409 0.0358
10 0.0202 0.0202 0.0157 0.0112 0.0087 0.0063
15 0.0107 0.0107 0.0077 0.0048 0.0034 0.0021
20 0.0056 0.0056 0.0037 0.0017 0.0016 0.0016
25 0.0026 0.0026 0.0018 0.0009 0.0012 0.0015
30 0.0013 0.0013 0.0011 0.0009 0.0012 0.0015
35 0.0008 0.0008 0.0009 0.0009 0.0012 0.0015

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Termination with Vested Benefits
Rates vary by entry age and service for miscellaneous plans. Rates vary by service for safety plans.

See sample rates in tables below.

Public Agency Miscellaneous
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 5 0.0422 0.0422 0.0393 0.0364 0.0344
10 0.0278 0.0278 0.0271 0.0263 0.0215
15 0.0192 0.0192 0.0174 0.0156 0.0120
20 0.0139 0.0139 0.0109 0.0079 0.0047
25 0.0083 0.0083 0.0048 0.0014 0.0007
30 0.0015 0.0015 0.0007 0.0000 0.0000
35 0.0000 0.0000 0.0000 0.0000 0.0000
Public Agency Safety
Duration of
Service Fire Police
County Peace
Officer
5 0.0094 0.0163 0.0187
10 0.0064 0.0126 0.0134
15 0.0048 0.0082 0.0092
20 0.0038 0.0065 0.0064
25 0.0026 0.0058 0.0042
30 0.0014 0.0056 0.0022
35 0.0000 0.0000 0.0000
• After termination with vested benefits, a miscellaneous member is assumed to retire at age 59 and a safety member at age 54.
• The Police t ermination with vested benefits rates are also used for Public Agency Local Prosecutors, Other Safety, Local Sheriff, and School Police.

Schools
Duration of
Service Entry Age 20 Entry Age 25 Entry Age 30 Entry Age 35 Entry Age 40 5 0.0405 0.0405 0.0346 0.0288 0.0264
10 0.0324 0.0324 0.0280 0.0235 0.0211
15 0.0202 0.0202 0.0179 0.0155 0.0126
20 0.0144 0.0144 0.0114 0.0083 0.0042
25 0.0091 0.0091 0.0046 0.0000 0.0000
30 0.0015 0.0015 0.0007 0.0000 0.0000
35 0.0000 0.0000 0.0000 0.0000 0.0000

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Non-Industrial (Not Job-Related) Disability
Rates vary by age and gender for miscellaneous plans. Rates vary by age and category for safety plans.

Miscellaneous Fire Police County Peace Officer Schools
Age Male Female Male and Female Male and Female Male and Female Male Female 20 0.0002 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001
25 0.0002 0.0001 0.0001 0.0001 0.0001 0.0001 0.0001
30 0.0002 0.0002 0.0001 0.0002 0.0001 0.0001 0.0002
35 0.0004 0.0007 0.0001 0.0003 0.0004 0.0005 0.0004
40 0.0010 0.0014 0.0001 0.0004 0.0007 0.0012 0.0008
45 0.0015 0.0019 0.0002 0.0005 0.0013 0.0020 0.0017
50 0.0016 0.0020 0.0005 0.0008 0.0018 0.0026 0.0022
55 0.0016 0.0015 0.0007 0.0013 0.0010 0.0025 0.0018
60 0.0015 0.0011 0.0007 0.0020 0.0006 0.0022 0.0011
• The miscellaneous non-industrial disability rates are used for Local Prosecutors. • The police non-industrial disability rates are also used for Other Safety, Local Sheriff, and School Police.

Industrial (Job-Related) Disability
Rates vary by age and category.

Age Fire Police County Peace Officer
20 0.0001 0.0000 0.0004
25 0.0002 0.0017 0.0013
30 0.0006 0.0048 0.0025
35 0.0012 0.0079 0.0037
40 0.0023 0.0110 0.0051
45 0.0040 0.0141 0.0067
50 0.0208 0.0185 0.0092
55 0.0307 0.0479 0.0151
60 0.0438 0.0602 0.0174
• The police industrial disability rates are also used for Local Sheriff and Other Safety. • 50% of the police industrial disability rates are used for School Police. • 1% of the police industrial disability rates are used for Local Prosecutors. • Normally, rates are zero for m iscellaneous plans unless the agency has specifically contracted for industrial disability benefits. If so, each miscellaneous non -industrial disability rate will be split into two components: 50 % will become the non -industrial disability rate and 50% will become the industrial disability rate.

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Service Retirement
Retirement rates vary by age, service, and formula, except for the safety ½ @ 55 and 2% @ 55 formulas, where retirement rates vary by age only.

Public Agency Miscellaneous 1.5% @ 65
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.008 0.011 0.013 0.015 0.017 0.019
51 0.007 0.010 0.012 0.013 0.015 0.017
52 0.010 0.014 0.017 0.019 0.021 0.024
53 0.008 0.012 0.015 0.017 0.019 0.022
54 0.012 0.016 0.019 0.022 0.025 0.028
55 0.018 0.025 0.031 0.035 0.038 0.043
56 0.015 0.021 0.025 0.029 0.032 0.036
57 0.020 0.028 0.033 0.038 0.043 0.048
58 0.024 0.033 0.040 0.046 0.052 0.058
59 0.028 0.039 0.048 0.054 0.060 0.067
60 0.049 0.069 0.083 0.094 0.105 0.118
61 0.062 0.087 0.106 0.120 0.133 0.150
62 0.104 0.146 0.177 0.200 0.223 0.251
63 0.099 0.139 0.169 0.191 0.213 0.239
64 0.097 0.136 0.165 0.186 0.209 0.233
65 0.140 0.197 0.240 0.271 0.302 0.339
66 0.092 0.130 0.157 0.177 0.198 0.222
67 0.129 0.181 0.220 0.249 0.277 0.311
68 0.092 0.129 0.156 0.177 0.197 0.221
69 0.092 0.130 0.158 0.178 0.199 0.224
70 0.103 0.144 0.175 0.198 0.221 0.248
Public Agency Miscellaneous 2% @ 60
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.020 0.020 0.020 0.020 0.020 0.150
51 0.006 0.019 0.027 0.031 0.035 0.038
52 0.011 0.024 0.031 0.034 0.037 0.040
53 0.010 0.015 0.021 0.027 0.033 0.040
54 0.025 0.025 0.029 0.035 0.041 0.048
55 0.019 0.026 0.033 0.092 0.136 0.146
56 0.030 0.034 0.038 0.060 0.093 0.127
57 0.030 0.046 0.061 0.076 0.090 0.104
58 0.040 0.044 0.059 0.080 0.101 0.122
59 0.024 0.044 0.063 0.083 0.103 0.122
60 0.070 0.074 0.089 0.113 0.137 0.161
61 0.080 0.086 0.093 0.118 0.156 0.195
62 0.100 0.117 0.133 0.190 0.273 0.357
63 0.140 0.157 0.173 0.208 0.255 0.301
64 0.140 0.153 0.165 0.196 0.239 0.283
65 0.140 0.178 0.215 0.264 0.321 0.377
66 0.140 0.178 0.215 0.264 0.321 0.377
67 0.140 0.178 0.215 0.264 0.321 0.377
68 0.112 0.142 0.172 0.211 0.257 0.302
69 0.112 0.142 0.172 0.211 0.257 0.302
70 0.140 0.178 0.215 0.264 0.321 0.377

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Service Retirement
Public Agency Miscellaneous 2% @ 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.008 0.013 0.018 0.021 0.022 0.033
51 0.009 0.016 0.020 0.023 0.026 0.036
52 0.015 0.018 0.020 0.021 0.025 0.030
53 0.016 0.020 0.024 0.028 0.031 0.035
54 0.018 0.022 0.026 0.030 0.034 0.038
55 0.040 0.040 0.056 0.093 0.109 0.154
56 0.034 0.050 0.066 0.092 0.107 0.138
57 0.042 0.048 0.058 0.082 0.096 0.127
58 0.046 0.054 0.062 0.090 0.106 0.131
59 0.045 0.055 0.066 0.097 0.115 0.144
60 0.058 0.075 0.093 0.126 0.143 0.169
61 0.065 0.088 0.111 0.146 0.163 0.189
62 0.136 0.118 0.148 0.190 0.213 0.247
63 0.130 0.133 0.174 0.212 0.249 0.285
64 0.113 0.129 0.165 0.196 0.223 0.249
65 0.145 0.173 0.201 0.233 0.266 0.289
66 0.170 0.199 0.229 0.258 0.284 0.306
67 0.250 0.204 0.233 0.250 0.257 0.287
68 0.227 0.175 0.193 0.215 0.240 0.262
69 0.200 0.180 0.180 0.198 0.228 0.246
70 0.150 0.171 0.192 0.239 0.304 0.330
Public Agency Miscellaneous 2.5% @ 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.008 0.014 0.020 0.026 0.033 0.050
51 0.008 0.015 0.023 0.030 0.037 0.059
52 0.009 0.016 0.023 0.030 0.037 0.061
53 0.014 0.021 0.028 0.035 0.042 0.063
54 0.014 0.022 0.030 0.039 0.047 0.068
55 0.020 0.038 0.055 0.073 0.122 0.192
56 0.025 0.047 0.069 0.091 0.136 0.196
57 0.030 0.048 0.065 0.083 0.123 0.178
58 0.035 0.054 0.073 0.093 0.112 0.153
59 0.035 0.054 0.073 0.092 0.131 0.183
60 0.044 0.072 0.101 0.130 0.158 0.197
61 0.050 0.078 0.105 0.133 0.161 0.223
62 0.055 0.093 0.130 0.168 0.205 0.268
63 0.090 0.124 0.158 0.192 0.226 0.279
64 0.080 0.112 0.144 0.175 0.207 0.268
65 0.120 0.156 0.193 0.229 0.265 0.333
66 0.132 0.172 0.212 0.252 0.292 0.366
67 0.132 0.172 0.212 0.252 0.292 0.366
68 0.120 0.156 0.193 0.229 0.265 0.333
69 0.120 0.156 0.193 0.229 0.265 0.333
70 0.120 0.156 0.193 0.229 0.265 0.333

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Service Retirement
Public Agency Miscellaneous 2.7% @ 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.003 0.010 0.016 0.034 0.033 0.045
51 0.009 0.016 0.023 0.042 0.038 0.047
52 0.015 0.019 0.024 0.040 0.036 0.046
53 0.012 0.020 0.028 0.047 0.046 0.060
54 0.020 0.027 0.035 0.054 0.056 0.073
55 0.033 0.055 0.078 0.113 0.156 0.234
56 0.039 0.067 0.095 0.135 0.169 0.227
57 0.050 0.067 0.084 0.113 0.142 0.198
58 0.043 0.066 0.089 0.124 0.151 0.201
59 0.050 0.070 0.090 0.122 0.158 0.224
60 0.060 0.086 0.112 0.150 0.182 0.238
61 0.071 0.094 0.117 0.153 0.184 0.241
62 0.091 0.122 0.152 0.194 0.226 0.279
63 0.143 0.161 0.179 0.209 0.222 0.250
64 0.116 0.147 0.178 0.221 0.254 0.308
65 0.140 0.174 0.208 0.254 0.306 0.389
66 0.170 0.209 0.247 0.298 0.310 0.324
67 0.170 0.199 0.228 0.269 0.296 0.342
68 0.150 0.181 0.212 0.255 0.287 0.339
69 0.150 0.181 0.212 0.255 0.287 0.339
70 0.150 0.181 0.212 0.243 0.291 0.350
Public Agency Miscellaneous 3% @ 60
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.013 0.019 0.026 0.042 0.038 0.064
51 0.035 0.037 0.039 0.052 0.047 0.062
52 0.023 0.030 0.038 0.055 0.051 0.056
53 0.025 0.032 0.040 0.057 0.056 0.066
54 0.035 0.042 0.050 0.067 0.066 0.076
55 0.040 0.052 0.064 0.085 0.095 0.120
56 0.043 0.056 0.070 0.094 0.102 0.150
57 0.045 0.060 0.074 0.099 0.109 0.131
58 0.053 0.056 0.059 0.099 0.126 0.185
59 0.050 0.068 0.085 0.113 0.144 0.202
60 0.089 0.106 0.123 0.180 0.226 0.316
61 0.100 0.117 0.133 0.212 0.230 0.298
62 0.130 0.155 0.180 0.248 0.282 0.335
63 0.120 0.163 0.206 0.270 0.268 0.352
64 0.150 0.150 0.150 0.215 0.277 0.300
65 0.200 0.242 0.283 0.330 0.300 0.342
66 0.220 0.264 0.308 0.352 0.379 0.394
67 0.250 0.279 0.309 0.338 0.371 0.406
68 0.170 0.196 0.223 0.249 0.290 0.340
69 0.220 0.261 0.302 0.344 0.378 0.408
70 0.220 0.255 0.291 0.326 0.358 0.388

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-15
Service Retirement
Public Agency Miscellaneous 2% @ 62
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.000 0.000 0.000 0.000 0.000 0.000
51 0.000 0.000 0.000 0.000 0.000 0.000
52 0.005 0.008 0.012 0.015 0.019 0.031
53 0.007 0.011 0.014 0.018 0.021 0.032
54 0.007 0.011 0.015 0.019 0.023 0.034
55 0.010 0.019 0.028 0.036 0.061 0.096
56 0.014 0.026 0.038 0.050 0.075 0.108
57 0.018 0.029 0.039 0.050 0.074 0.107
58 0.023 0.035 0.048 0.060 0.073 0.099
59 0.025 0.038 0.051 0.065 0.092 0.128
60 0.031 0.051 0.071 0.091 0.111 0.138
61 0.038 0.058 0.079 0.100 0.121 0.167
62 0.044 0.074 0.104 0.134 0.164 0.214
63 0.077 0.105 0.134 0.163 0.192 0.237
64 0.072 0.101 0.129 0.158 0.187 0.242
65 0.108 0.141 0.173 0.206 0.239 0.300
66 0.132 0.172 0.212 0.252 0.292 0.366
67 0.132 0.172 0.212 0.252 0.292 0.366
68 0.120 0.156 0.193 0.229 0.265 0.333
69 0.120 0.156 0.193 0.229 0.265 0.333
70 0.120 0.156 0.193 0.229 0.265 0.333
Service Retirement
Public Agency Fire ½ @ 55 and 2% @ 55
Age Rate Age Rate
50 0.0159 56 0.1108
51 0.0000 57 0.0000
52 0.0344 58 0.0950
53 0.0199 59 0.0441
54 0.0413 60 1.00000
55 0.0751
Public Agency Police ½ @ 55 and 2% @ 55
Age Rate Age Rate
50 0.0255 56 0.0692
51 0.0000 57 0.0511
52 0.0164 58 0.0724
53 0.0272 59 0.0704
54 0.0095 60 0.3000
55 0.1667

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-16
Service Retirement
Public Agency Police 2% @ 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.050 0.050 0.050 0.050 0.050 0.100
51 0.040 0.040 0.040 0.040 0.058 0.094
52 0.040 0.040 0.040 0.040 0.061 0.087
53 0.040 0.040 0.040 0.040 0.082 0.123
54 0.040 0.040 0.040 0.046 0.098 0.158
55 0.072 0.072 0.072 0.096 0.141 0.255
56 0.066 0.066 0.066 0.088 0.129 0.228
57 0.060 0.060 0.060 0.080 0.118 0.213
58 0.080 0.080 0.080 0.088 0.138 0.228
59 0.080 0.080 0.080 0.092 0.140 0.228
60 0.150 0.150 0.150 0.150 0.150 0.228
61 0.144 0.144 0.144 0.144 0.144 0.170
62 0.150 0.150 0.150 0.150 0.150 0.213
63 0.150 0.150 0.150 0.150 0.150 0.213
64 0.150 0.150 0.150 0.150 0.150 0.319
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other Safety.

Service Retirement
Public Agency Fire 2% @ 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.009 0.009 0.009 0.009 0.013 0.020
51 0.013 0.013 0.013 0.013 0.020 0.029
52 0.018 0.018 0.018 0.018 0.028 0.042
53 0.052 0.052 0.052 0.052 0.079 0.119
54 0.067 0.067 0.067 0.067 0.103 0.154
55 0.089 0.089 0.089 0.089 0.136 0.204
56 0.083 0.083 0.083 0.083 0.127 0.190
57 0.082 0.082 0.082 0.082 0.126 0.189
58 0.088 0.088 0.088 0.088 0.136 0.204
59 0.074 0.074 0.074 0.074 0.113 0.170
60 0.100 0.100 0.100 0.100 0.154 0.230
61 0.072 0.072 0.072 0.072 0.110 0.165
62 0.099 0.099 0.099 0.099 0.152 0.228
63 0.114 0.114 0.114 0.114 0.175 0.262
64 0.114 0.114 0.114 0.114 0.175 0.262
65 1.000 1.000 1.000 1.000 1.000 1.000

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-17
Service Retirement
Public Agency Police 3% @ 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.035 0.035 0.035 0.035 0.070 0.090
51 0.028 0.028 0.028 0.029 0.065 0.101
52 0.032 0.032 0.032 0.039 0.066 0.109
53 0.028 0.028 0.028 0.043 0.075 0.132
54 0.038 0.038 0.038 0.074 0.118 0.333
55 0.070 0.070 0.070 0.120 0.175 0.340
56 0.060 0.060 0.060 0.110 0.165 0.330
57 0.060 0.060 0.060 0.110 0.165 0.320
58 0.080 0.080 0.080 0.100 0.185 0.350
59 0.090 0.090 0.095 0.130 0.185 0.350
60 0.150 0.150 0.150 0.150 0.185 0.350
61 0.120 0.120 0.120 0.120 0.160 0.350
62 0.150 0.150 0.150 0.150 0.200 0.350
63 0.150 0.150 0.150 0.150 0.200 0.400
64 0.150 0.150 0.150 0.150 0.175 0.350
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other Safety.

Service Retirement
Public Agency Fire 3% @ 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.001 0.001 0.001 0.006 0.016 0.069
51 0.002 0.002 0.002 0.006 0.018 0.071
52 0.012 0.012 0.012 0.021 0.040 0.098
53 0.032 0.032 0.032 0.049 0.085 0.149
54 0.057 0.057 0.057 0.087 0.144 0.217
55 0.073 0.073 0.073 0.109 0.179 0.259
56 0.064 0.064 0.064 0.097 0.161 0.238
57 0.063 0.063 0.063 0.095 0.157 0.233
58 0.065 0.065 0.065 0.099 0.163 0.241
59 0.088 0.088 0.088 0.131 0.213 0.299
60 0.105 0.105 0.105 0.155 0.251 0.344
61 0.118 0.118 0.118 0.175 0.282 0.380
62 0.087 0.087 0.087 0.128 0.210 0.295
63 0.067 0.067 0.067 0.100 0.165 0.243
64 0.067 0.067 0.067 0.100 0.165 0.243
65 1.000 1.000 1.000 1.000 1.000 1.000

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-18
Service Retirement
Public Agency Police 3% @ 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.050 0.050 0.050 0.100 0.155 0.400
51 0.040 0.040 0.040 0.090 0.140 0.380
52 0.040 0.040 0.040 0.070 0.115 0.350
53 0.040 0.040 0.040 0.080 0.135 0.350
54 0.040 0.040 0.040 0.090 0.145 0.350
55 0.070 0.070 0.070 0.120 0.175 0.340
56 0.060 0.060 0.060 0.110 0.165 0.330
57 0.060 0.060 0.060 0.110 0.165 0.320
58 0.080 0.080 0.080 0.100 0.185 0.350
59 0.090 0.090 0.095 0.130 0.185 0.350
60 0.150 0.150 0.150 0.150 0.185 0.350
61 0.120 0.120 0.120 0.120 0.160 0.350
62 0.150 0.150 0.150 0.150 0.200 0.350
63 0.150 0.150 0.150 0.150 0.200 0.400
64 0.150 0.150 0.150 0.150 0.175 0.350
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other Safety.

Service Retirement
Public Agency Fire 3% @ 50
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.020 0.020 0.020 0.040 0.130 0.192
51 0.008 0.008 0.008 0.023 0.107 0.164
52 0.023 0.023 0.023 0.043 0.136 0.198
53 0.023 0.023 0.023 0.043 0.135 0.198
54 0.027 0.027 0.027 0.048 0.143 0.207
55 0.043 0.043 0.043 0.070 0.174 0.244
56 0.053 0.053 0.053 0.085 0.196 0.269
57 0.054 0.054 0.054 0.086 0.197 0.271
58 0.052 0.052 0.052 0.084 0.193 0.268
59 0.075 0.075 0.075 0.116 0.239 0.321
60 0.065 0.065 0.065 0.102 0.219 0.298
61 0.076 0.076 0.076 0.117 0.241 0.324
62 0.068 0.068 0.068 0.106 0.224 0.304
63 0.027 0.027 0.027 0.049 0.143 0.208
64 0.094 0.094 0.094 0.143 0.277 0.366
65 1.000 1.000 1.000 1.000 1.000 1.000

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-19
Service Retirement
Public Agency Police 2% @ 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.040 0.040 0.040 0.040 0.040 0.080
51 0.028 0.028 0.028 0.028 0.040 0.066
52 0.028 0.028 0.028 0.028 0.043 0.061
53 0.028 0.028 0.028 0.028 0.057 0.086
54 0.028 0.028 0.028 0.032 0.069 0.110
55 0.050 0.050 0.050 0.067 0.099 0.179
56 0.046 0.046 0.046 0.062 0.090 0.160
57 0.054 0.054 0.054 0.072 0.106 0.191
58 0.060 0.060 0.060 0.066 0.103 0.171
59 0.060 0.060 0.060 0.069 0.105 0.171
60 0.113 0.113 0.113 0.113 0.113 0.171
61 0.108 0.108 0.108 0.108 0.108 0.128
62 0.113 0.113 0.113 0.113 0.113 0.159
63 0.113 0.113 0.113 0.113 0.113 0.159
64 0.113 0.113 0.113 0.113 0.113 0.239
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other Safety.

Service Retirement
Public Agency Fire 2% @ 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.005 0.005 0.005 0.005 0.008 0.012
51 0.006 0.006 0.006 0.006 0.009 0.013
52 0.012 0.012 0.012 0.012 0.019 0.028
53 0.033 0.033 0.033 0.033 0.050 0.075
54 0.045 0.045 0.045 0.045 0.069 0.103
55 0.061 0.061 0.061 0.061 0.094 0.140
56 0.055 0.055 0.055 0.055 0.084 0.126
57 0.081 0.081 0.081 0.081 0.125 0.187
58 0.059 0.059 0.059 0.059 0.091 0.137
59 0.055 0.055 0.055 0.055 0.084 0.126
60 0.085 0.085 0.085 0.085 0.131 0.196
61 0.085 0.085 0.085 0.085 0.131 0.196
62 0.085 0.085 0.085 0.085 0.131 0.196
63 0.085 0.085 0.085 0.085 0.131 0.196
64 0.085 0.085 0.085 0.085 0.131 0.196
65 1.000 1.000 1.000 1.000 1.000 1.000

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-20
Service Retirement
Public Agency Police 2.5% @ 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.050 0.050 0.050 0.050 0.050 0.100
51 0.038 0.038 0.038 0.038 0.055 0.089
52 0.038 0.038 0.038 0.038 0.058 0.082
53 0.036 0.036 0.036 0.036 0.073 0.111
54 0.036 0.036 0.036 0.041 0.088 0.142
55 0.061 0.061 0.061 0.082 0.120 0.217
56 0.056 0.056 0.056 0.075 0.110 0.194
57 0.060 0.060 0.060 0.080 0.118 0.213
58 0.072 0.072 0.072 0.079 0.124 0.205
59 0.072 0.072 0.072 0.083 0.126 0.205
60 0.135 0.135 0.135 0.135 0.135 0.205
61 0.130 0.130 0.130 0.130 0.130 0.153
62 0.135 0.135 0.135 0.135 0.135 0.191
63 0.135 0.135 0.135 0.135 0.135 0.191
64 0.135 0.135 0.135 0.135 0.135 0.287
65 1.000 1.000 1.000 1.000 1.000 1.000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other Safety.

Service Retirement
Public Agency Fire 2.5% @ 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.007 0.007 0.007 0.007 0.010 0.015
51 0.008 0.008 0.008 0.008 0.012 0.018
52 0.016 0.016 0.016 0.016 0.025 0.038
53 0.042 0.042 0.042 0.042 0.064 0.096
54 0.057 0.057 0.057 0.057 0.088 0.132
55 0.074 0.074 0.074 0.074 0.114 0.170
56 0.066 0.066 0.066 0.066 0.102 0.153
57 0.090 0.090 0.090 0.090 0.139 0.208
58 0.071 0.071 0.071 0.071 0.110 0.164
59 0.066 0.066 0.066 0.066 0.101 0.151
60 0.102 0.102 0.102 0.102 0.157 0.235
61 0.102 0.102 0.102 0.102 0.157 0.236
62 0.102 0.102 0.102 0.102 0.157 0.236
63 0.102 0.102 0.102 0.102 0.157 0.236
64 0.102 0.102 0.102 0.102 0.157 0.236
65 1.000 1.000 1.000 1.000 1.000 1.000

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-21
Service Retirement
Public Agency Police 2.7% @ 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0500 0.0500 0.0500 0.0500 0.0500 0.1000
51 0.0400 0.0400 0.0400 0.0400 0.0575 0.0942
52 0.0380 0.0380 0.0380 0.0380 0.0580 0.0825
53 0.0380 0.0380 0.0380 0.0380 0.0774 0.1169
54 0.0380 0.0380 0.0380 0.0437 0.0931 0.1497
55 0.0684 0.0684 0.0684 0.0912 0.1340 0.2423
56 0.0627 0.0627 0.0627 0.0836 0.1228 0.2168
57 0.0600 0.0600 0.0600 0.0800 0.1175 0.2125
58 0.0800 0.0800 0.0800 0.0880 0.1375 0.2275
59 0.0800 0.0800 0.0800 0.0920 0.1400 0.2275
60 0.1500 0.1500 0.1500 0.1500 0.1500 0.2275
61 0.1440 0.1440 0.1440 0.1440 0.1440 0.1700
62 0.1500 0.1500 0.1500 0.1500 0.1500 0.2125
63 0.1500 0.1500 0.1500 0.1500 0.1500 0.2125
64 0.1500 0.1500 0.1500 0.1500 0.1500 0.3188
65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
• These rates also apply to County Peace officers, Local Prosecutors, Local Sheriff, School Police, and Other Safety.

Service Retirement
Public Agency Fire 2.7% @ 57
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.0065 0.0065 0.0065 0.0065 0.0101 0.0151
51 0.0081 0.0081 0.0081 0.0081 0.0125 0.0187
52 0.0164 0.0164 0.0164 0.0164 0.0254 0.0380
53 0.0442 0.0442 0.0442 0.0442 0.0680 0.1018
54 0.0606 0.0606 0.0606 0.0606 0.0934 0.1397
55 0.0825 0.0825 0.0825 0.0825 0.1269 0.1900
56 0.0740 0.0740 0.0740 0.0740 0.1140 0.1706
57 0.0901 0.0901 0.0901 0.0901 0.1387 0.2077
58 0.0790 0.0790 0.0790 0.0790 0.1217 0.1821
59 0.0729 0.0729 0.0729 0.0729 0.1123 0.1681
60 0.1135 0.1135 0.1135 0.1135 0.1747 0.2615
61 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618
62 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618
63 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618
64 0.1136 0.1136 0.1136 0.1136 0.1749 0.2618
65 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

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CalPERS Actuarial Valuation – June 30, 2020 Appendix A
Actuarial Methods and Assumptions
A-22
Service Retirement
Schools 2% @ 55
Duration of Service
Age 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 50 0.004 0.007 0.011 0.012 0.013 0.015
51 0.004 0.008 0.011 0.014 0.016 0.017
52 0.005 0.010 0.014 0.016 0.018 0.021
53 0.006 0.012 0.016 0.020 0.022 0.025
54 0.008 0.017 0.023 0.027 0.031 0.034
55 0.021 0.042 0.058 0.069 0.077 0.086
56 0.019 0.037 0.053 0.062 0.069 0.078
57 0.019 0.038 0.054 0.064 0.071 0.079
58 0.022 0.045 0.062 0.074 0.082 0.092
59 0.025 0.049 0.069 0.082 0.090 0.101
60 0.033 0.066 0.092 0.109 0.121 0.135
61 0.037 0.072 0.101 0.119 0.133 0.149
62 0.066 0.131 0.184 0.218 0.242 0.271
63 0.064 0.126 0.178 0.209 0.233 0.261
64 0.059 0.117 0.163 0.193 0.215 0.240
65 0.080 0.158 0.221 0.261 0.291 0.326
66 0.081 0.160 0.224 0.265 0.296 0.330
67 0.070 0.139 0.194 0.229 0.255 0.286
68 0.063 0.124 0.173 0.205 0.228 0.255
69 0.066 0.130 0.183 0.216 0.241 0.270
70 0.071 0.140 0.196 0.231 0.258 0.289
Miscellaneous
Internal Revenue Code Section 415
The limitations on benefits imposed by Internal Revenue Code Section 415 are taken into account in this valuation. Each year the impact of any changes in this limitation since the prior valuation is included and amortized as part of the actuarial gain or l oss base. This results in lower contributions for those employers contributing to the Replacement Benefit Fund and protects CalPERS from prefunding expected benefits in excess of limits imposed by federal tax law. The Section 415(b) dollar limit for the 2020 calendar year is $230,000.

Internal Revenue Code Section 401(a)(17)
The limitations on compensation imposed by Internal Revenue Code Section 401(a)(17) are taken into account in this valuation. Each year, the impact of any changes in the compensation limitation since the prior valuation is included and amortized as part of the actuarial gain or loss base. The compensation limit for classic members for the 2020 calendar year is $285,000.

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Appendix B
Principal Plan Provisions

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-1
The following is a description of the principal plan provisions used in calculating costs and liabilities. We have indicated whether a plan provision is standard or optional. Standard benefits are applicable to all members while optional benefits vary among employers. Optional benefits that apply to a single period of time, such as Golden Hands hakes, have not been included. Many of the statements in this summary are general in nature, and are intended to pr ovide an easily understood summary of the Public Employees’ Retirement Law. The law itself governs in all situations.

Service Retirement
Eligibility
A classic CalPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 50 with at least 5 years of credited service (total service across all CalPERS employers, and with certain other retirement systems with which CalPERS has reciprocity agreements) . For employees hired into a plan with the 1.5% at age 65 formula, eligibility for service retirement is age 55 with at least 5 years of service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service.

Benefit
The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation.
• The benefit factor depends on the benefit formula specified in your agency’s contract. The table below shows the factors for each of the available formulas. Factors vary by the member’s age at retirement. Listed are the factors for retirement at whole year ages:

Miscellaneous Plan Formulas
Retirement
Age

1.5% at
65 2% at 60 2% at 55 2.5% at
55 2.7% at
55 3% at 60 PEPRA
2% at 62
50 0.5000% 1.092% 1.426% 2.000% 2.000% 2.000% N/A
51 0.5667% 1.156% 1.522% 2.100% 2.140% 2.100% N/A
52 0.6334% 1.224% 1.628% 2.200% 2.280% 2.200% 1.000%
53 0.7000% 1.296% 1.742% 2.300% 2.420% 2.300% 1.100%
54 0.7667% 1.376% 1.866% 2.400% 2.560% 2.400% 1.200%
55 0.8334% 1.460% 2.000% 2.500% 2.700% 2.500% 1.300%
56 0.9000% 1.552% 2.052% 2.500% 2.700% 2.600% 1.400%
57 0.9667% 1.650% 2.104% 2.500% 2.700% 2.700% 1.500%
58 1.0334% 1.758% 2.156% 2.500% 2.700% 2.800% 1.600%
59 1.1000% 1.874% 2.210% 2.500% 2.700% 2.900% 1.700%
60 1.1667% 2.000% 2.262% 2.500% 2.700% 3.000% 1.800%
61 1.2334% 2.134% 2.314% 2.500% 2.700% 3.000% 1.900%
62 1.3000% 2.272% 2.366% 2.500% 2.700% 3.000% 2.000%
63 1.3667% 2.418% 2.418% 2.500% 2.700% 3.000% 2.100%
64 1.4334% 2.418% 2.418% 2.500% 2.700% 3.000% 2.200%
65 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.300%
66 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.400%
67 & up 1.5000% 2.418% 2.418% 2.500% 2.700% 3.000% 2.500%

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-2
Safety Plan Formulas
Retirement
Age ½ at 55 * 2% at 55 2% at 50 3% at 55 3% at 50
50 1.783% 1.426% 2.000% 2.400% 3.000%
51 1.903% 1.522% 2.140% 2.520% 3.000%
52 2.035% 1.628% 2.280% 2.640% 3.000%
53 2.178% 1.742% 2.420% 2.760% 3.000%
54 2.333% 1.866% 2.560% 2.880% 3.000%
55 & Up 2.500% 2.000% 2.700% 3.000% 3.000%
* For this formula, the benefit fa ctor also varies by entry age. The factors shown are for members with an entry age of 35 or greater. If entry age is less than 35, then the age 55 benefit factor is 50% divided by the difference between age 55 and entry age. The benefit factor for ages prior to age 55 is the same proportion of the age 55 benefit factor as in the above table.

PEPRA Safety Plan Formulas
Retirement Age 2% at 57 2.5% at 57 2.7% at 57
50 1.426% 2.000% 2.000%
51 1.508% 2.071% 2.100%
52 1.590% 2.143% 2.200%
53 1.672% 2.214% 2.300%
54 1.754% 2.286% 2.400%
55 1.836% 2.357% 2.500%
56 1.918% 2.429% 2.600%
57 & Up 2.000% 2.500% 2.700%
• The years of service is the amount credited by CalPERS to a member while he or she is employed in this group (or for other periods that are recognized under the employer’s contract with CalPERS). For a member who has earned service with m ultiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total allowance. An agency may contract for an optional benefit where any unused sick leave accumulate d at the time of retirement will be converted to credited service at a rate of 0.004 years of service for each day of sick leave. • The final compensation is the monthly average of the member’s highest 36 or 12 consecutive months’ full -time equivalent monthly pay (no matter which CalPERS emp loyer paid this compensation). The standard benefit is 36 months. Employers had the option of providing a final compensation equal to the highest 12 consecutive months for classic plans only. Final compensation must be defined by the highest 36 consecutive months’ pay under the

1.5% at 65 formula. PEPRA members have a cap on the annual salary that can be used to calculate final compensation for all new members based on the Social Security contribution and benefit base. For employees that participate in Social Security this cap is $126,291 for 2020 and for those employees that do not participate in Social Security the cap for 2020 is $151,549. Adjustments to the caps are permitted annually based on changes to the CPI for all urban consumers.
• Employees must be covered by Social Security with the 1.5% at 65 formula. Social Security is optional for all other benefit formulas. For employees covered by Social Security, the m odified formula is the standard benefit. Under this type of formula, the final compensation is offset by $133.33 (or by one third if the final co mpensation is less than $400). Employers may contract for the full benefit with Social Security that will eliminate the offset applicable to the final compensation. For employees not covered by Social Security, the full benefit is paid with no offsets.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-3
Auxiliary organizations of the CSUC system may elect reduced contribution rates, in which case the offset is $317 if members are not covered by Social Security or $513 if members are covered by Social Security. • The miscellaneous and PEPRA safety service retirement benefit is not capped. The classic Safety service retirement benefit is capped at 90% of final compensation.

Vested Deferred Retirement
Eligibility for Deferred Status
A CalPERS member becomes eligible for a deferred vested retirement benefit when he or she leaves employment, keeps his or her contribution account balance on deposit with CalPERS, and has earned at least 5 years of credited service (total service across all CalPERS employers, and with certain other retirement systems with which CalPERS has reciprocity agreements).

Eligibility to Start Receiving Benefits
The CalPERS classic members and PEPRA safety members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for deferred status and upon attainment of age 50 (55 for employees hired into a 1.5% @ 65 plan). PEPRA miscellaneous members become eligible to receive the deferred retirement benefit upon satisfying the eligibility requirements for deferred status and upon attainment of age 52.

Benefit
The vested deferred retirement benefit is the same as the service retirement benefit, where the benefit factor is based on the member’s age at allowance commencement. For members who have earned service with multiple CalPERS employers, the benefit from each employer is calculated separately according to each employer’s contract, and then added together for the total allowance.

Non-Industrial (Non-Job Related) Disability Retirement
Eligibility
A CalPERS member is eligible for Non-Industrial Disability Retirement if he or she becomes disabled and has at least 5 years of credited service (total service across all CalPERS emp loyers, and with certain other retirement s ystems with which CalPERS has reciprocity agreements). There is no special age requirement. Disabled means the member is unable to perform his or her job because of an illness or injury, which is expected to be permanent or to last indefinitely. The illness or injury do es not have to be job related. A CalPERS member must be actively employed by any CalPERS employer at the time of disability in order to be eligible for this benefit.

Standard Benefit
The standard Non-Industrial Disability Retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service, which is determined as follows:
• Service is CalPERS credited service, for members with less than 10 years of service or greater tha n 18.518 years of service; or
• Service is CalPERS credited service plus the additional number of years that the member would have worked until age 60, for members with at least 10 years but not more than 18.518 years of service. The maximum benefit in this case is 33⅓% of final compensation.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-4
Improved Benefit
Employers have the option of providing the improved Non-Industrial Disability Retirement benefit. This benefit provides a monthly allowance equal to 30% of final compensation for the f irst 5 years of service, plus 1% for each additional year of service to a maximum of 50% of final compensation.

Members who are eligible for a larger service retirement benefit may choose to receive that benefit in lieu of a disability benefit. Members eligible to retire, and who have attained the normal retirement age determined by their service retirement benefit formula, will receive the same dollar amount for disability retirement as that p ayable for service retirement. For members who have earned service with multiple CalPERS employers, the benefit attributed to each employer is the total disability allowance multiplied by the ratio of service with a particular employer to the total CalPERS service.

Industrial (Job Related) Disability Retirement
All safety members have this benefit. For miscellaneous members, employers have the option of providing this benefit.

An employer may choose to provide the increased benefit option or the improved benefit option.

Eligibility
An employee is eligible for Industrial Disability Retirement if he or she becomes disabled while working, where disabled means the member is unable to perform the duties of the job because of a work -related illness or injury, which is expected to be permanent or to last indefinitely. A CalPERS member who has left active employment within this group is not eligible for this benefit, except to the extent described below.

Standard Benefit
The standard Industrial Disability Retirement benefit is a monthly allowance equal to 50% of final compensation.

Increased Benefit (75% of Final Compensation)
The increased Industrial Disability Retirement benefit is a monthly allowance equal to 75 percent final compensation for total disability.

Improved Benefit (50% to 90% of Final Compensation)
The improved Industrial Disability Retirement benefit is a monthly allowance equal to the Workman’s Compensation Appeals Board permanent disability rate percentage (if 50 % or greater, with a maximum of 90 %) times the final compensation.

For a CalPERS member not actively employed in this group who became disabled while employed by some other CalPERS employer, the benefit is a return of accumulated member contributions with respec t to employment in this group. With the standar d or increased benefit, a member may also choose to receive the annuitization of the accumulated member contributions.

If a member is eligible for service retirement and if the service retirement benefit is more than the industrial disability retirement benefit, the member may choose to receive the larger benefit.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-5
Post-Retirement Death Benefit
Standard Lump Sum Payment
Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate.

Improved Lump Sum Payment
Employers have the option of providing an improved lump sum death benefit of $600, $2,000, $3,000, $4,000 or $5,000.

Form of Payment for Retirement Allowance
Standard Form of Payment
Generally, the retirement allowance is paid to the retiree in the form of an annuity for as long as he or she is alive. The retiree may choose to provide for a portion of his or her allowance to be paid to any designated beneficiary after the retiree’s death. CalPERS provides for a variety of such benefit options, which the retiree pays for by taking a reduction in his or her retirement allowance. Such reduction takes into account the amount to be provided to the beneficiary and the probable duration of pay ments (based on the ages of the member and beneficiary) made subsequent to the member’s death.

Improved Form of Payment (Post-Retirement Survivor Allowance) Employers have the option to contract for the post-retirement survivor allowance.

For retirement allowances with respect to service subject to the modified formula, 25 % of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduct ion in the retiree’s allowance. For retirement allowances with respect to service subject to the full or supplemental formula, 50% of the retirement allowance will automatically be continued to certain statutory beneficiaries upon the death of the retiree, without a reduction in the retiree’s all owance. This additional benefit is referred to as post -retirement survivor allowance (PRSA) or simply as survivor continuance.

In other words, 25% or 50% of the allowance, the continuance portion, is paid to the retiree for as long as he or she is alive, and that same amount is continued to the retiree’s spouse (or if no eligible spouse, to unmarried child (ren) until they attain age 18; or, if no eligible child(ren), to a qualifying dependent parent) for the rest of his or her lifetime.

This benefit will not be discontinued in the event the spouse remarries.

The remaining 75% or 50% of the retirement allowance, which may be referred to as the option portion of the benefit, is paid to the retiree as an annuity for as long as he or she is alive. Or, the retiree may choose to provide for some of this option portion to be paid to any designated beneficiary after the retiree’s death. Benefit options applicable to the option portion are the same as those offered with the standard form. The reduction is calculated in the same manner but is applied only to the option portion.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-6
Pre-Retirement Death Benefits
Basic Death Benefit
This is a standard benefit.

Eligibility
An employee’s beneficiary (or estate) may receive the basic death benefit if the member dies while actively employed.

A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. A member’s survivor who is eligible for any other pre -retirement death benefit may choose to receive that death benefit instead of this basic death benefit.

Benefit
The basic death b enefit is a lump sum in the amount of the member’s accumulated contributions, where inter est is credited annually at the greater of 6% or the prevailing discount rate through the date of death , plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary.

For purposes of this benefit, one month's salary is defined as the member's average month ly full -time rate of compensation during the 12 months preceding death.
1957 Survivor Benefit
This is a standard benefit.

Eligibility
An employee’s eligible survivor(s) may receive the 1957 Survivor benefit if the member dies while actively employed, has attained at least age 50 for classic and safety PEPRA members and age 52 for miscellaneous PEPRA members, and has at least 5 years of credited service (total service acr oss all CalPERS employers and with certain other retirement systems with which CalPER S has reciprocity agreements). A CalPERS member must be actively employed with the CalPERS employer providing this benefit to be eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at least one year before death or, if there is no eligible spouse, to the member's unmarried child(ren) under age 18. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this 1957 Survivor benefit.

Benefit
The 1957 Survivor benefit is a monthly allowance equal to one-half of the unmodified service r etirement benefit that the member would have been entitled to recei ve if the member had retired on the date of his or her death. If the benefit is payable to the spouse, the benefit is discontinued upon the death of the spouse. If the benefit is payable to dependent child(ren), the benefit will be discontinued upon death or attainment of age 18, unless the child(ren) is disabled. The total amount paid will be at least equal to the basic death benefit.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-7
Optional Settlement 2 Death Benefit
This is an optional benefit.

Eligibility
An employee’s eligible survivor may receive the Optional Settlement 2 Death benefit if the member dies while actively employed, has attained at least age 50 for classic and safety PEPRA members and age 52 for miscellaneous PEPRA members, and has at least 5 years of credited service (total service across all CalPERS employers and with certain other retirement systems with which CalPER S has reciprocity agreements). A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married at least one year before death. A member’s survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instea d of this Optional Settle ment 2 Death benefit.

Benefit
The Optional Settlement 2 Death benefit is a monthly allowance equal to the service retirement benefit that the member would have received had the member retired on the date of his or her death and e lected 100% to continue to the eligible survivor after the member’s death. The allowance is payable as long as the surviving spouse lives, at which time it is continued to any unmarried child(ren) under age 18, if applicable. The total amount paid will be at least equal to the basic death benefit.

Special Death Benefit
This is a standa rd benefit for safety members. An employer may elect to provide this benefit for miscellaneous members.

Eligibility
An employee’s eligible survivor(s) may receive the special d eath benefit if the member dies while actively employe d and the death is job -related. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or i llness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried child(ren) under age 22. An eligible survivor who chooses to receive this benefit will not receive any other death benefit.

Benefit
The special death benefit is a monthly allowance equal to 50% of final compensation and will be increased whenever the compensation paid to active employees is increased but ceasing to increase when the member would have attained age 50. The allowance is payable to the surviving spouse until death at which time the allowance is continued to any unmarried child(ren) under age 22. There is a guarantee that the total amount paid will at least equal the basic death benefit.

If the member’s death is the result of an accident or injury caused by external violence or physical force incurred in the performance of the member’s duty, and there are eligible surviving child(ren) (eligible means unmarried child(ren) under age 22) in addition to an eligible spouse, then an additional monthly allowance is paid equal to the following:
• if 1 eligible child: 12.5% of final compensation
• if 2 eligible children: 20.0% of final compensation
• if 3 or more eligible children: 25.0% of final compensation

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-8
Alternate Death Benefit for Local Fire Members
This is an optional benefit available only to local fire members.

Eligibility
An employee’s eligible survivor(s) may receive the alternate death benefit in lieu of the basic death benefit or the 1957 Survivor benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. A CalPERS member who is no longer actively employed with any CalPERS employer is not eligible for this benefit. An eligible survivor means the surviving spouse to whom the member was married prior to the onset of the injury or illness that resulted in death. If there is no eligible spouse, an eligible survivor means the member's unmarried child (ren) under age 18.

Benefit
The Alternate Death benefit is a monthly allowance equal to the service r etirement benefit that the member would have received had the member retired on the date of his or her death and elect ed Optional Settlement 2. (A retiree who elects Optional Settlement 2 receives an allowance that has been reduced so that it will continue to be paid after his or her deat h to a surviving beneficiary.) If the member has not yet attained age 50, the benefit is equal to that which would be payable if the member had retired at age 50, based on service credited at the time of death. The allowance is payable as long as the surviving spouse lives, at which time it is continued to any unmarried child (ren) under age 18, if applicable. The total amount paid will be at least equal to the basic death benefit.

Cost-of-Living Adjustments (COLA)
Standard Benefit
Retirement and survivor allowances are adjusted each year in May for cost of living, beginning the second calendar year after the year of retirement. The standard cost -of-living adjustment (COLA) is 2%. Annual adjustments are calculated by first determining the lesser of 1) 2% compounded from the end of the year of retirement or 2) actual rate of inflation. The resulting increase is divided by the total increase provided in prior years. For any given year, the COLA adjustment may be less than 2% (when the rate of inflation is low), may be greater than the rate of inflation (when the rate of inflation is low after several years of high inflation) or may even be greater than 2% (when inflation is high after several years of low inflation).

Improved Benefit
Employers have the option of providing a COLA of 3%, 4%, or 5%, determined in the same manner as described above for the standard 2% COLA. An improved COLA is not available with the 1.5% at 65 formula.

Purchasing Power Protection Allowance (PPPA)
Retirement and survivor allowances are protec ted against inflation by PPPA. PPPA benefits are cost -of-living adjustments that are intended to maintain an individual’s allowance at 80 % of the initial allowance at retirement adjusted for inflation since retirement. The PPPA benefit will be coordinated with other cost -of-living adjustments provided under the plan.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-9
Employee Contributions
Each employee contributes toward his or her retirement base d upon the retirement formula. The standard employee contribution is as described below.
• The percent contributed below the monthly compensation breakpoint is 0%. • The monthly compensation breakpoint is $0 for full and supplemental formula members and $133.33 for employees covered by the modified formula.
• The percent contributed above the monthly compensation breakpoint depends upon the benefit formula, as shown in the table below.

Benefit Formula Percent Contributed above the
Breakpoint
Miscellaneous, 1.5% at 65 2%
Miscellaneous, 2% at 60 7%
Miscellaneous, 2% at 55 7%
Miscellaneous, 2.5% at 55 8%
Miscellaneous, 2.7% at 55 8%
Miscellaneous, 3% at 60 8%
Miscellaneous, 2% at 62 50% of the Total Normal Cost
Miscellaneous, 1.5% at 65 50% of the Total Normal Cost
Safety, 1/2 at 55 Varies by entry age
Safety, 2% at 55 7%
Safety, 2% at 50 9%
Safety, 3% at 55 9%
Safety, 3% at 50 9%
Safety, 2% at 57 50% of the Total Normal Cost
Safety, 2.5% at 57 50% of the Total Normal Cost
Safety, 2.7% at 57 50% of the Total Normal Cost
The employer may choose to “pick-up” these contributions for classic members (Employer Paid Member Contributions or EPMC). EPMC is prohibited for new PEPRA members.

An employer may also include Employee Cost Sharing in the contract, where employees agree to share the cost of the employer contribution. These contributions are paid in addition to the member contribution.

Auxiliary organizations of the CSU system may elect reduced contribution rates, in which case the offset is $317 and the contribution rate is 6% if members are not covered by Social Security. If members are covered by Social Security, the offset is $513 and the contribution rate is 5%.

Refund of Employee Contributions
If the member’s service with the employer ends, and if the member does not satisfy the eligibility conditions for any of the retirement benefits above, the member may elect to receive a refund of hi s or her employee contributions, which are credited with 6% interest compounded annually.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix B
Miscellaneous Plan of the City of Pasadena
Principal Plan Provisions
B-10
1959 Survivor Benefit
This is a pre -retirement death benefit available only to members n ot covered by Social Security. Any agency joining CalPERS subsequent to 1993 is required to provide this benefit if the members are not covered by Social Security. The benefit is optional for agencies joining CalPERS prior to 1994. Levels 1, 2 and 3 are now closed. Any new agency or any agency wishing to add this benefit or increase the current level may only choose the 4th or Indexed Level.

This benefit is not included in the results presented in this val uation. More information on this benefit is available on the CalPERS website.

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Appendix C
Participant Data
• Summary of Valuation Data
• Active Members
• Transferred and Terminated Members
• Retired Members and Beneficiaries

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CalPERS Actuarial Valuation – June 30, 2020 Appendix C
Miscellaneous Plan of the City of Pasadena
Participant Data
C-1
Summary of Valuation Data
June 30, 2019 June 30, 2020

1. Active Members
a) Counts 1,408 1,408
b) Average Attained Age 45.84 45.79
c) Average Entry Age to Rate Plan 34.33 34.44
d) Average Years of Credited Service 11.32 11.20
e) Average Annual Covered Pay $79,882 $82,217
f) Annual Covered Payroll 112,474,197 115,761,136
g) Projected Annual Payroll for Contribution Year 122,010,833 125,576,470 h) Present Value of Future Payroll 922,072,214 958,940,015

2. Transferred Members
a) Counts 419 434
b) Average Attained Age 46.45 46.53
c) Average Years of Credited Service 4.35 4.32
d) Average Annual Covered Pay $97,905 $102,981

3. Terminated Members
a) Cou nts 661 682
b) Average Attained Age 47 47.43
c) Average Years of Credited Service 3.66 3.62
d) Average Annual Covered Pay $58,229 $58,363

4. Retired Members and Beneficiaries
a) Counts 1,737 1,770
b) Average Attained Age 71.36 71.42
c) Average Annual Benefits $34,295 $35,264

5. Active to Retired Ratio [(1a) / (4a)] 0.81 0.80
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.

Average Annual Benefits represents benefit amounts payable by this plan only. Some members may have service with another agency and would therefore have a larger total benefit than would be included as part of the average shown here.

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CalPERS Actuarial Valuation – June 30, 2020 Appendix C
Miscellaneous Plan of the City of Pasadena
Participant Data
C-2
Active Members
Counts of members included in the valuation are counts of the records processed by the valuation. Multiple records may exist for those who have service in more than one valuation group. This does not result in double counting of liabilities.

Distribution of Active Members by Age and Service
Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+ Total
15-24 21 1 0 0 0 0 22
25-29 76 6 0 0 0 0 82
30-34 116 34 9 0 0 0 159
35-39 102 47 38 9 1 0 197
40-44 88 37 39 37 14 0 215
45-49 55 21 46 41 25 13 201
50-54 35 25 37 41 28 58 224
55-59 19 20 31 29 15 41 155
60-64 15 16 16 26 8 33 114
65 and Over 4 4 7 5 4 15 39
All Ages 531 211 223 188 95 160 1,408
Distribution of Average Annual Salaries by Age and Service Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+
Average
Salary
15-24 $46,151 $55,644 $0 $0 $0 $0 $46,582
25-29 59,363 68,833 0 0 0 0 60,056
30-34 63,686 72,324 84,812 0 0 0 66,729
35-39 72,787 80,585 77,470 74,601 126,691 0 75,907
40-44 78,661 88,599 92,096 88,823 86,563 0 85,072
45-49 78,953 85,689 88,432 90,378 91,106 91,557 86,483
50-54 100,217 84,973 86,930 90,489 88,262 96,504 92,084 55-59 95,187 77,778 86,135 88,454 103,073 104,702 93,151 60-64 112,207 83,866 88,707 70,768 110,131 104,658 93,149 65 and Over 74,190 27,357 77,981 82,218 66,399 84,109 74,112 Average $73,170 $80,208 $86,182 $86,115 $92,424 $98,722 $82,217

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CalPERS Actuarial Valuation – June 30, 2020 Appendix C
Miscellaneous Plan of the City of Pasadena
Participant Data
C-3
Transferred and Terminated Members
Distribution of Transfers to Other CalPERS Plans by Age, Service, and average Salary Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+ Total
Average
Salary
15-24 3 0 0 0 0 0 3 $75,338
25-29 25 0 0 0 0 0 25 69,228
30-34 47 2 1 0 0 0 50 74,545
35-39 50 4 0 0 0 0 54 84,158
40-44 36 8 3 0 0 0 47 97,365
45-49 37 15 8 10 0 0 70 108,282
50-54 51 14 5 4 2 2 78 125,267
55-59 36 21 4 5 0 0 66 124,946
60-64 18 5 2 2 0 1 28 119,296
65 and Over 9 2 2 0 0 0 13 73,209
All Ages 312 71 25 21 2 3 434 $102,981
Distribution of Terminated Participants with Funds on Deposit by Age, Service, and average Salary Years of Service at Valuation Date
Attained
Age 0-4 5-9 10-14 15-19 20-24 25+ Total
Average
Salary
15-24 8 0 0 0 0 0 8 $36,818
25-29 23 0 0 0 0 0 23 40,386
30-34 64 5 2 0 0 0 71 50,579
35-39 75 14 4 0 0 0 93 59,937
40-44 64 10 7 2 2 0 85 57,160
45-49 77 18 10 5 2 1 113 64,126
50-54 69 16 7 1 1 0 94 62,385
55-59 64 25 11 2 1 1 104 61,725
60-64 34 12 3 0 1 0 50 59,894
65 and Over 31 7 2 1 0 0 41 49,550
All Ages 509 107 46 11 7 2 682 $58,363

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CalPERS Actuarial Valuation – June 30, 2020 Appendix C
Miscellaneous Plan of the City of Pasadena
Participant Data
C-4
Retired Members and Beneficiaries
Distribution of Retirees and Beneficiaries by Age and Retirement Type* Attained
Age
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death
After
Retirement Total
Under 30 0 0 0 0 0 1 1
30-34 0 1 0 0 0 0 1
35-39 0 0 0 0 0 2 2
40-44 0 0 2 0 0 1 3
45-49 0 3 0 0 0 1 4
50-54 33 6 3 0 0 3 45
55-59 136 7 7 1 0 8 159
60-64 240 8 5 2 0 12 267
65-69 313 11 4 0 0 26 354
70-74 275 12 4 3 0 35 329
75-79 221 13 0 1 0 39 274
80-84 109 6 0 0 0 38 153
85 and Over 99 2 0 1 0 76 178
All Ages 1,426 69 25 8 0 242 1,770
Distribution of Average Annual Disbursements to Retirees and Beneficiaries by Age and Retirement Type*
Attained
Age
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death
After
Retirement Average
Under 30 $0 $0 $0 $0 $0 $2,674 $2,674
30-34 0 4,410 0 0 0 0 4,410
35-39 0 0 0 0 0 2,674 2,674
40-44 0 0 1,351 0 0 2,674 1,792
45-49 0 25,269 0 0 0 7,287 20,773
50-54 31,686 13,451 9,428 0 0 4,995 25,991
55-59 44,766 17,916 4,595 88,746 0 35,071 41,604
60-64 46,989 37,781 3,380 67,233 0 28,624 45,222
65-69 39,224 10,136 3,004 0 0 18,171 36,364
70-74 38,316 18,026 6,873 17,623 0 25,191 35,608
75-79 34,740 23,295 0 17,586 0 22,805 32,435
80-84 33,302 12,995 0 0 0 18,696 28,878
85 and Over 29,715 26,677 0 14,584 0 20,491 25,657
All Ages $38,902 $19,573 $4,782 $38,531 $0 $21,357 $35,266

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CalPERS Actuarial Valuation – June 30, 2020 Appendix C
Miscellaneous Plan of the City of Pasadena
Participant Data
C-5
Retired Members and Beneficiaries (continued)
Distribution of Retirees and Beneficiaries by Years Retired and Retirement Type* Years
Retired
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death
After
Retirement Total
Under 5 Yrs 393 7 4 1 0 75 480
5-9 374 8 4 2 0 63 451
10-14 282 6 4 1 0 42 335
15-19 186 7 6 1 0 27 227
20-24 91 16 3 0 0 17 127
25-29 58 12 2 2 0 8 82
30 and Over 42 13 2 1 0 10 68
All Years 1,426 69 25 8 0 242 1,770
Distribution of Average Annual Disbursements to Retirees and Beneficiaries by Years Retired and Retirement Type*
Years
Retired
Service
Retirement
Non-
Industrial
Disability
Industrial
Disability
Non-
Industrial
Death
Industrial
Death
Death
After
Retirement Average
Under 5 Yrs $41,537 $18,888 $13,089 $88,746 $0 $24,674 $38,433 5-9 42,660 35,074 5,167 67,233 0 20,387 39,191
10-14 44,173 25,447 1,751 20,102 0 21,389 40,403
15-19 30,980 15,634 5,588 17,625 0 16,932 28,106
20-24 27,424 18,702 954 0 0 22,864 25,089
25-29 26,929 14,486 1,050 16,364 0 19,544 23,499
30 and Over 21,867 15,581 520 14,584 0 13,276 18,667
All Years $38,902 $19,573 $4,782 $38,531 $0 $21,357 $35,266 * Counts of members do not include alternate payees receiving benefits whil e the member is still working. Therefore, the total counts may not match information on C-1 of the report. Multiple records may exist for those who have service in more than one coverage group. This does not result in double counting of liabilities.

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Appendix D
Glossary of Actuarial Terms

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CalPERS Actuarial Valuation – June 30, 2020 Appendix D
Miscellaneous Plan of the City of Pasadena
Glossary of Actuarial Terms
D-1
Glossary of Actuarial Terms
Accrued Liability (also called Actuarial Accrued Liability or Entry Age Actuarial Accrued Liability) The total dollars needed as of the valuation date to fund all benefits earned in the past for current members.

Actuarial Assumptions
Assumptions made about certain events that will affect pension costs. Assumptions generally can be broken down into two categor ies: demographic and economic. Demographic assumptions include such things as mortality, disability and retirement rates. Economic assumptions include discount rate, salary growth and inflation.

Actuarial Methods
Procedures employed by actuaries to achieve certain f unding goals of a pension plan. Actuarial methods include funding method, setting the length of time to fund the Accrued Liability and determining the Value of Assets.

Actuarial Valuation
The determination as of a valuation date of the Normal Cost, Accrued Liability, and related actuarial present values for a pension plan. These valuations are performed annually or when an employer is contemplating a change to their plan provisions.

Amortization Bases
Separate payment schedules for different portions of the Unfunded Liability. The total Unfunded Liability of a Risk Pool or non -pooled plan can be segregated by cause, creating “bases ,” and each such base will be separately amortized and paid for over a specific period of time . However, all bases are amortized using investment and payroll assumptions from the current valuation. This can be likened to a home having a first mortgage of 24 years remaining payments and a second mortgage that has 10 years remaining payments. Each base or each mortgage note has its own terms (payment period, principal, etc.).

Generally, in an actuarial valuation, the separ ate bases consist of changes in unfunded liability due to contract amendments, actuarial assumption changes, method changes, and/or gains and losses.

Amortization Period
The number of years required to pay off an Amortization Base.

Classic Member (under PEPRA)
A classic member is a member who joined CalPERS prior to January 1, 2013 and who is not defined as a new member under PEPRA. (See definition of New Member below.) Discount Rate
The assumed long-term rate of return on plan assets. This is the rate at which projected cash flows are discounted to the valuation date to determine Accrued Liability. This assumption is called “investment return” in earlier CalPERS reports and “actuarial interest rate” in Section 20014 of the California Public Employees’ Retirement Law (PERL).

Entry Age
The earliest age at which a plan member begins to accrue benefits under a defined benefit pension plan. In most cases, this is the age of the member on their date of hire.

Entry Age Actuarial Cost Method
An actuarial cost method designed to fund a member's total plan benefit over the course of his or her career. This method is designed to yield a rate expressed as a level percentage of payroll. (The assumed retirement age less the entry age is the amount of time required to fund a member’s total benefit.

Generally, the older a member on the date of hire, the greater the entry age normal cost. This is mainly because there is less time to earn investment income to fund the future benefits.)

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CalPERS Actuarial Valuation – June 30, 2020 Appendix D
Miscellaneous Plan of the City of Pasadena
Glossary of Actuarial Terms
D-2
Fresh Start
A Fresh Start is when multiple amortization bases are collapsed to one base and amortized together over a new funding period.

Funded Status
A measure of how well funded , or how "on track" a plan or risk pool is with respect to assets v ersus accrued liabilities. A ratio greater than 100 % means the plan or risk pool has more assets than liabil ities and a ratio less than 100% means liabilities are greater than assets.

GASB 68
Statement No. 68 of the Governmental Accounting Standards Board. The accounting standard governing a state or local governmental employer’s accounting and financial reporting for pensions. GASB 68 replaces GASB 27 effective the first fiscal year beginning after June 15, 2014.

New Member (under PEPRA)
A new member includes an individual who becomes a member of a public retirement system for the first time on or after January 1, 2013, and who was not a member of another public retirement system prior to that date, and who is not subject to reciprocity with another public retirement system.

Normal Cost
The annual cost of service accrual for the upcoming fiscal year for active employees. T he normal cost should be viewed as the long-term contribution rate.

Pension Actuary
A business professional that is authorized by the Society of Actuaries and the American Academy of Actuaries to perform the calculations necessary to properly fund a pension plan.

PEPRA
The California Public Employees’ Pension Reform Act of 2013 Present Value of Benefits (PVB)
The total dollars needed as of the valuation date to fund all benefits earned in the past or expected to be earned in the future for current members.

Unfunded Accrued Liability (UAL)
When a plan or pool’s value of assets is less than its Accrued Liability, the difference is the plan or pool’s Unfunded Accrued Liability (or unfunded liability). If the unfunded liability is positive, the plan or pool will have to pay contributions exceeding the Normal Cost.

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California Public Employees’ Retirement System
Actuarial Office
400 Q Street, Sacramento, CA 95811 | Phone: (916) 795-3000 | Fax: (916) 795-2744 888 CalPERS (or 888-225-7377) | TTY: (877) 249-7442 | www.calpers.ca.gov July 2021
Safety Plan of the City of Pasadena (CalPERS ID: 6556986602) Annual Valuation Report as of June 30, 2020
Dear Employer,
Attached to this letter, you will find the June 30, 2020 actuarial valuation report of your CalPERS pension plan. Provided in this report is the determination of the minimum required employer contributions for fiscal year 2022-

23. In addition, the report also contains important information regarding the current financial status of the plan as well as projections and risk measures to aid in planning for the future.

Fiscal Year Employer Normal
Cost Rate
Employer Amortization of
Unfunded Accrued Liability
Employee
PEPRA Rate
2022-23 19.07% $18,025,647 12.50%
Projected Results
2023-24 18.6% $19,441,000 TBD
The actual investment return for fiscal year 2020-21 was not known at the time this report was prepared. The projections above assume the investment return for that year would be 7.0%. To the extent the actual investment return for fiscal year 2020-21 differs from 7.0%, the actual contribution requirements for fiscal year 2023-24 will differ from those shown above. For additional details regarding the assumptions and methods used for these projections please refer to the “Projected Employer Contributions” in the “Highlights and Executive Summary” section.

This section also contains projected required contributions through fiscal year 2027-28.

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Safety Plan of the City of Pasadena
(CalPERS ID: 6556986602)
Annual Valuation Report as of June 30, 2020

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Pension Outlook cannot predict the future, it can provide valuable planning information based on a variety of future scenarios that you select.

Sincerely,

SCOTT TERANDO, ASA, EA, MAAA, FCA, CFA
Chief Actuary, CalPERS

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Actuarial Valuation
as of June 30, 2020
for the
Safety Plan
of the
City of Pasadena
(CalPERS ID: 6556986602)
(Rate Plan ID: 75)
Required Contributions
for Fiscal Year
July 1, 2022 – June 30, 2023

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Table of Contents
Actuarial Certification 1
Highlights and Executive Summary
Introduction 3
Purpose of the Report 3
Required Contributions 4
Additional Discretionary Employer Contributions 5
Plan’s Funded Status 6
Projected Employer Contributions 6
Cost 7
Changes Since the Prior Year’s Valuation 8
Subsequent Events 8
Assets
Reconciliation of the Market Value of Assets 10
Asset Allocation 11
CalPERS History of Investment Returns 12
Liabilities and Contributions
Development of Accrued and Unfunded Liabilities 14
(Gain) / Loss Analysis 6/30/19 - 6/30/20 15
Schedule of Amortization Bases 16
Amortization Schedule and Alternatives 18
Reconciliation of Required Employer Contributions 20
Employer Contribution History 21
Funding History 21
Normal Cost by Benefit Group 22
PEPRA Member Contribution Rates 23
Risk Analysis
Future Investment Return Scenarios 25
Discount Rate Sensitivity 26
Mortality Rate Sensitivity 26
Maturity Measures 27
Maturity Measures History 28
Hypothetical Termination Liability 29
Plan’s Major Benefit Provisions
Plan’s Major Benefit Options 31
Appendix A – Actuarial Methods and Assumptions
Actuarial Data A-1
Actuarial Methods A-1
Actuarial Assumptions A-4
Miscellaneous A-22
Appendix B – Principal Plan Provisions B-1
Appendix C – Participant Data
Summary of Valuation Data C-1
Active Members C-2
Transferred and Terminated Members C-3
Retired Members and Beneficiaries C-4
Appendix D – Glossary of Actuarial Terms D-1
(CY) FIN JOB INSTANCE ID: 379987 (PY) FIN JOB INSTANCE ID: 354497 REPORT ID: 380028

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

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Actuarial Certification
To the best of our knowledge, this report is complete and accurate and contains sufficient information to disclose, fully and fairly, the funded condition of the Safety Plan of the City of Pasadena . This valuation is based on the member and financial data as of June 30, 2020 provided by the various CalPERS databases and the benefits under this plan with CalPERS as of the date this report was produced. It is our opinion that the valuation has been performed in accordance with generally accepted actuarial principles, in accordance with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for this plan, as prescribed by the CalPE RS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law.

The undersigned is an actuary who satisfies the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States with regard to pensions.

STUART BENNETT, ASA, MAAA
Senior Pension Actuary, CalPERS

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

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Introduction
This report presents the results of the June 30, 2020 actuarial valuation of the Safety Plan of the City of Pasadena of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the minimum required employer contributions for fiscal year 2022-23.

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

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Required Contributions
Fiscal Year
Required Employer Contribution 2022-23
Employer Normal Cost Rate 19.07%
Plus, Either
1) Monthly Employer Dollar UAL Payment $1,502,137
Or
2) Annual UAL Prepayment Option* $17,426,051
Required PEPRA Member Contribution Rate 12.50%
The total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll) and the Employer Unfunded Accrued Liability (UAL) Contribution Amount (billed monthly in dollars).
* Only the UAL portion of the employer contribution can be prepaid (which must be received in full no later than July 31) . Any prepayment totaling over $5 million requires a 72 -hour notice email to [email protected]. Plan Normal Cost contributio ns will be made as part of the payroll reporting process. If there is contractual cost sharing or other change, this amount will change.

In accordance with Sections 20537 and 20572 of the Public Employees’ Retirement Law, if a contracting agency fails to remit the required contributions when due, interest and penalties may apply.

Fiscal Year Fiscal Year
2021-22 2022-23
Normal Cost Contribution as a Percentage of Payroll
Total Normal Cost 29.04% 28.92%
Employee Contribution1 9.77% 9.85%
Employer Normal Cost2 19.27% 19.07%
Projected Annual Payroll for Contribution Year $49,996,467 $50,070,200 Estimated Employer Contributions Based On
Projected Payroll
Total Normal Cost $14,518,974 $14,480,302
Employee Contribution1 4,884,655 4,931,915
Employer Normal Cost2 9,634,319 9,548,387
Unfunded Liability Contribution 16,388,303 18,025,647
% of Projected Payroll (illustrative only) 32.78% 36.00% Estimated Total Employer Contribution $26,022,622 $27,574,034 % of Projected Payroll (illustrative only) 52.05% 55.07% 1 For classic members, this is the percentage specified in the Public Employees’ Retirement Law, net of any reduction from the use of a modified formula or other factors. For PEPRA members, the member contribution rate is based on 50 % of the normal cost. A development of PEPRA member contribution rates can be found in the “Liabilities and Contributions” section. Employee cost sharing is not shown in this report. 2 The Employer Normal Cost is a blended rate for all benefit groups in the plan. For a breakout of normal cost by benefit group, see “Normal Cost by Benefit Group” in the “Liabilities and Contributions” section.

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

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Additional Discretionary Employer Contributions
The minimum required employer contribution towards the Unfunded Accrued Liability (UAL) for this rate plan for the 2022-23 fiscal year is $18,025,647. CalPERS allows employers to make additional discretionary payments (ADPs) at any time and in any amount. These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. Employers can also use ADPs to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.

If you are considering making an ADP, please contact your actuary for additional information.

Minimum Required Employer Contribution for Fiscal Year 2022-23 Estimated
Normal Cost
Minimum UAL
Payment
ADP Total UAL
Contribution
Estimated Total
Contribution
$9,548,387 $18,025,647 $0 $18,025,647 $27,574,034
Alternative Fiscal Year 2022-23 Employer Contributions for Greater UAL Reduction Funding
Target
Estimated
Normal Cost
Minimum UAL
Payment
ADP1 Total UAL
Contribution
Estimated Total
Contribution
20 years $9,548,387 $18,025,647 $610,753 $18,636,400 $28,184,787 15 years $9,548,387 $18,025,647 $3,651,577 $21,677,224 $31,225,611 10 years $9,548,387 $18,025,647 $10,084,554 $28,110,201 $37,658,588 5 years $9,548,387 $18,025,647 $30,126,739 $48,152,386 $57,700,773 1 The ADP amounts are assumed to be made in the middle of the fiscal year. A payment made earlier or later in the fiscal year would have to be less or more than the amount shown to have the same effect on the UAL amortization.

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

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Required
Contribution
Projected Future Employer Contributions
(Assumes 7.00% Return for Fiscal Year 2020-21)
Fiscal Year 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Normal Cost % 19.07% 18.6% 18.1% 17.7% 17.3% 17.0%
UAL Payment $18,025,647 $19,441,000 $16,362,000 $18,861,000 $19,770,000 $20,259,000 Total as a % of Payroll* 55.07% 56.3% 49.1% 52.4% 52.7% 52.3% Projected Payroll $50,070,200 $51,447,131 $52,861,927 $54,315,630 $55,809,310 $57,344,066 *Illustrative only and based on the projected payroll shown.

For projected contributions under alternate investment return scenarios, please see the “Future Investment Return Scenarios” in the “Risk Analysis” section.

June 30, 2019 June 30, 2020

1. Present Value of Projected Benefits $811,973,146 $844,070,893

2. Entry Age Accrued Liability 691,239,940 724,161,437

3. Market Value of Assets (MVA) 497,823,672 517,053,606

4. Unfunded Accrued Liability (UAL) [(2) – (3)] $193,416,268 $207,107,831

5. Funded Ratio [(3) / (2)] 72.0% 71.4%

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

Page 7 ends

The Normal Cost component is expressed as a percentage of active payroll with employer and employee contributions payable as part of the regular payroll reporting process.

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CalPERS Actuarial Valuation - June 30, 2020
Safety Plan of the City of Pasadena
CalPERS ID: 6556986602

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Actuarial Methods and Assumptions
The are no significant changes to the actuarial methods or assumptions for the 2020 actuarial valuation.

CalPERS will be completing an Asset Liability Management (ALM) review process in November 2021 that will review the capital market assumptions and the strategic asset allocation and ascertain whether a change in the discount rate and other economic assumptions is warranted. In addition, the Actuarial Office will be completing its Experience Study to review the demographic experience within the pension system and make recommendations to modify future assumptions where appropriate.

Furthermore, this valuation does not reflect any impacts from the COVID-19 pandemic on your pension plan.

The impact of COVID-19 on retirement plans is not yet known and CalPERS actuaries will continue to monitor the effects and, where necessary, make future adjustments to actuarial assumptions.

This actuarial valuation report reflects statutory changes, regulatory changes and CalPERS Board actions through January 2021. Any subsequent changes or actions are not reflected.

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Finance CommitteeOctober 3, 2022

Finance Committee
October 3, 2022