Creating Longterm
Budget Savings Using
Chevron Settlement
Funds
March 2025
According to 2023 CalPERS Reports, Richmond Will Make $652 Million in Payments Towards CalPERS Unfunded Liabilities Through 2044
$33
$36
$38
$43$44$45
$43$42
$39$38
$36
$32
$31
$29$28$26
$22
$17
$26
$3
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50Millions
Current CalPERS UAL Amortization
Schedule, Miscellaneous and Safety
Plans
Current CalPERS UAL Amortization Schedule
•Payments are volatile
and will peak in 2029
at $45 million
•In total, Richmond
will pay $260 million
in interest. Costs
will be budgeted
across city payroll.
•Over 90% of payments
will be in the general
fund.
•Average payment over
20 years is $32.6
Paying Down Liabilities Early Would
Create Substantial Savings
•According to CalPERS,
a 10-year amortization
would cost $535M for
both plans, less than
total Chevron
settlement funds of
$550M.
•This would save $117M
in interest costs
•Unfunded liabilities
are currently budgeted
as portion of payroll.
$33
$36$38
$43$44$45$43$42
$39$38$36
$32$31$29$28$26
$22
$17
$26
$3
$50 $50 $50 $50 $50
$60 $60 $60 $60 $60
$0
$10
$20
$30
$40
$50
$60
$70Millions
10 Year UAL Amortization Schedule,
Miscellaneous and Safety Plans & Chevron Tax
Settlement Funds
Current CalPERS UAL Amortization Schedule
Chevron Settlement Funds
Unfunded
Liability
fully
amortized
Early Payment Would Leave On Average $32.6
Million in Remaining Settlement Funds or
Budget Savings
$33 $36 $38 $43 $44 $45 $43 $42 $39 $38
$17 $14 $12 $7 $6
$15 $17 $18 $21 $22
$33 $36 $38 $43 $44
$45 $43 $42 $39 $38
$36 $32 $31 $29 $28 $26 $22 $17 $26
$3$0
$20
$40
$60
$80
$100
$120
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
MILLIONS
Supplemental Pension Payments, Remaining Settlement Funds and Ongoing Budget Savings Remaining Tax Settlement Funds/Budget Savings Available to Allocate Additional Amount Needed for 10-Year UAL Payment Schedule Creating a Fund Using the Average Remaining
Settlement Funds and Longterm Cost Savings
Could Create More Budget Predictability
$33
$36
$38
$43 $44 $45
$43 $42
$39 $38
$36
$32 $31 $29 $28 $26
$22
$17
$26
$3
$33
$50 $50 $50 $50 $50
$60 $60 $60 $60 $60
$0
$10
$20
$30
$40
$50
$60
$70
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 Millions
10 Year UAL Amortization Schedule, Miscellaneous and Safety Plans & Chevron Tax Settlement Funds Current CalPERS UAL Amortization Schedule Average (Amount Budgeted for Just Transition Fund) Chevron Settlement Funds Chevron Tax Settlement Amount
used for Early CalPERS
Amortization
Amount Eliminated from
Payroll Expense
New Fund Created at
$32.6 million annually
Areas for Further Research
•A payment schedule that conforms with Chevron
settlement will need to be confirmed with
CalPERS.
•Bond financing could be studied to pay off the
liability earlier. Savings would be dependent
on debt service costs.
•All estimates are based on 2023 CalPERS
reports, new information may be available.