DATE: October 2, 2023
TO: Finance Commission
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the CalPERS Actuarial Valuation Reports as of June 30, 2022
RECOMMENDATION:
Receive the CalPERS Actuarial Valuation Reports as of June 30, 2022.
BACKGROUND:
The Town’s pension plans are administered by the Board of Administration of the California
Public Employees’ Retirement System (CalPERS). The Board of Administration is responsible for
the management and control of CalPERS. In addition, the Board has exclusive control of the
administration and investment of funds. Sworn employees are covered under the Safety Plan,
which is a pooled plan, while all other employees are covered in the Miscellaneous Plan, which
is a separate plan. The Miscellaneous Plan is administered by CalPERS in the Public Employees’
Retirement Fund (PERF).
In order for the Town to understand the value of future pension benefit payments, actuarial
valuations are performed each year for the pension plans. The CalPERS actuary estimates the
payments that will be made for all potential retirees from each plan in each future year. The
actuary calculates the present value of future benefits the plan will be required to pay to its
current participants: those still working who will retire in the future, retirees, and those who
have terminated employment but have not yet begun drawing benefits.
The 2022 valuation reports provide the determination of the minimum required employer
contributions for fiscal year (FY) 2024/25. In addition, the reports also contain important
information regarding the current financial status of the plans as well as projections and risk
measures to aid in planning for the future.
Staff has received the annual Actuarial Valuation Reports from CalPERS for the Miscellaneous
Plan (Attachment 1), the Safety Plan (Attachment 2), and the PEPRA Safety Police Plan
(Attachment 3). The measurement date for each of the Plans is as of June 30, 2022.
The Town’s Safety Plan funded status stood at 68.7% compared to 80.0% for the 2021
valuation. The Town’s Safety PEPRA Plan had a funded status of 87.6% versus 105.3% for 2021
and the Miscellaneous Plan funded status of 75.9% compared to 87.3% in 2021.
These reports are posted on the Town’s website: https://www.losgatosca.gov/1861/CalPERSand-OPEB-Actuarial-Valuation-Rep.
CONCLUSION:
Receive the CalPERS Actuarial Valuation Reports as of June 30, 2022.
COORDINATION:
This staff report was coordinated with the Town Manager, Assistant Town Manager, and Town
Attorney.
FISCAL IMPACT:
There is no fiscal impact from receipt of these reports.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
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