City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Saadiah Ryan, Finance Director
MEETING DATE: March 15, 2022
ITEM NO: 7.2
SUBJECT: Adopt Resolution No. 2022-15 Adopting Other Post Employment Benefits (OPEB) Funding Policy.
RECOMMENDATION
Motion to Adopt Resolution No. 2022-15 Adopting Other Post Employment Benefits (OPEB) Funding Policy.
BACKGROUND
The proposed City of Patterson Pension Funding Policy (Exhibit “A”) has been developed to provide guidance in the management of the City’s Other Post-Employment Benefit Plans (OPEB). These plans, administered by the California Public Employees’ Retirement System (CalPERS) Health Program, have been established for sworn public safety (Safety) and non-sworn (Miscellaneous) personnel who have retired directly from City employment. The funding of these plans has been a significant fiscal challenge for the City for many years. As a result, the City began efforts to address the issue.
The program is currently being funding on a Pay-As-You-Go basis. This means that the City pays the portion of the retiree premiums each year from General Fund revenues. These payments are expected to increase dramatically over the next decade, as shown in the graph below.