Reso No.____
RESOLUTION NO. ____
A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHM OND,
CALIFORNIA, ADOPTING THE PENSION FUNDING POLICY FOR THE CITY OF RICHM OND PENSION TRUST FY 2023 -24
WHEREAS, the City of Richmond (the “City”) is a charter city that operates under the Council-Manager form of government for the purposes of providing a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; wastewater treatment facility; and the administration of recreational activities and cultural events; and
WHEREAS, the City also operates the Richmond Memorial Convention Center and the Port of Richmond; and
WHEREAS, the City provides retirement-related costs also known as Pension Benefits administered by CalPERS; and
WHEREAS, the Pension Benefits are comprised of t wo major components the normal cost, and unfunded accrued liability (“UAL”); and
WHEREAS, The City, like most cities in California, has a UAL associated with its CalPERS pension plans for Safety and Non-Safety employees; and
WHEREAS, A UAL occurs when current pension plan assets are not projected to be sufficient to pay projected pension costs in future years; and
WHEREAS, as of July 2022, the City established an irrevocable Section 115 trust pursuant to the Internal Revenue Code for purposes of prefunding Pension, administered by Public Agency Retirement Services (PARS); and
WHEREAS, prefunding a Section 115 trust will address the rising UAL due to variances in actual experience versus CalPERS actuarial assumptions; and
WHEREAS, the City Manager is vested with the City and fiduciary responsibility for the administration, management and operation of the Pension Trust; and
WHEREAS, the City Manager has an obligation to provide reasonable assurance that the costs of benefits under the Pension Trust will be funded in an equitable and sustainable manner; and
WHEREAS, a funding policy establishes guidelines for plan funding through actuarial valuations, regular contribution rates, contribution timing and actuarial assumptions; and
Reso No.____
WHEREAS, the adoption of a Pension Funding Policy is consistent with “best practices” and the Board’s fiduciary oversight of the Pension Trust.
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby adopts the Pension Funding Policy for the City of Richmond Safety and Non-Safety Plans that is attached hereto as Exhibit A.
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Reso No.____
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a regular meeting thereof held _______________, by the following vote:
AYES:
NOES:
ABSTENTIONS :
ABSENT:
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
Mayor
Approved as to form:
City Attorney
State of California }
County of Contra Costa : ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No._____, finally passed and adopted by the City Council of the City of Richmond at a regular meeting held on ____________.