RESOLUTION NO. -22
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL
AUTHORIZING THE CITY MANGAGER TO EXECUTE AN AGREEMENT WITH PUBLIC AGENCY RETIREMENT SERVICES TO ESTABLISH A SECTION 115 TRUST AND
ADOPT THE CITY OF PLEASANT HILL PENSION RATE STABILIZATION PROGRAM
FUNDING AND WITHDRAWAL POLICY
WHEREAS, the City provides its permanent employees with a defined benefit pension through the California Public Employees’ Retirement System (CalPERS); and WHEREAS, CalPERS has made a number of changes in recent years which have increased the City’s required payments to the pension plan and decreased the plan’s funded status. Those changes that CalPERS has enacted are designed to increase the financial stability of its pension program, but result in higher City contributions; and
WHEREAS, City had an actuarial firm, Bartel Associates, review the City’s funding options to manage the pension liability and recommended establishing a Section 115 Trust; and WHEREAS, a Section 115 Trust is a tool to pre-fund pension liabilities through an IRS reviewed program; and
WHEREAS, Public Agency Retirement Services (PARS) has developed this program as a multiple employer trust so that public agencies regardless of size can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs; and WHEREAS, PARS has partnered with U.S. Bank and its sub-adviser HighMark Capital Management Inc., as trustee to provide investment services for the program. To date, 259 California public agencies have adopted the Pension Rate Stabilization Program through PARS, including 125 cities and towns; and
WHEREAS, the Budget Committee, at its meeting of April 6, 2022, approved the recommendation to proceed with the Section 115 Trust with PARS, an initial contribution of $1 million and adopt the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that:
1. Approve the PARS Services and Trust Agreement attached as Exhibit 1.
2. Approve an initial contribution of $1.0 million to be deposited into the Section 115 Trust.
3. Adopt the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy attached as Exhibit 2.
ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting of the City Council held on the 18th day of April, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
MICHAEL HARRIS, OD, Mayor
ATTEST:
DANIELLE K. HABR, City Clerk