HomeMy WebLinkAbout2-18 RESOLUTION 02-18
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS ALTOS HILLS
AUTHORIZING THE TRANSFER OF$1.37 MILLION TO CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM (CALPERS) TO REDUCE THE TOWN'S
UNFUNDED PENSION LIABILITY
WHEREAS the Town provides a defined-benefit pension to its employees through California
Public Employees' Retirement System (CaIPERS); and
WHEREAS the funding of CaIPERS pensions relies on employee contribution, employer
contribution, and investment returns; and
WHEREAS employer contribution consists of current active employee pension benefits
(normal cost) and unfunded past employee pension benefits (unfunded pension liability); and
WHEREAS CaIPERS Board voted to reduce the discount rates which effectively reduces
investment returns and increases employer contribution; and
WHEREAS the Finance and Investment Committee recommended to the City Council on
November 16, 2017 to pay $1.2 million to CAPERS to directly reduce unfunded liabilities; and
WHEREAS the $1.2 million is based on the June 30, 2016 pension valuation report and the
current balance is $1.36 million if paid by January 31, 2018 and $1.37 million if paid by
February 28, 2018.
NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby authorize
the City Manager and his designee to transfer up to $1.37 million to CaIPERS to reduce the
Town's unfunded pension liability.
The above and foregoing Resolution was passed and adopted by the City Council of the Town of
Los Altos Hills at a regular meeting held on 18th day of January, 2018 by the following vote:
AYES: Radford, Spreen, Corrigan, Waldeck, Wu
NOES: None
ABSTAIN: None
ABSENT: None
BY:
n Radford, Mayor
A TEST:
Deborah Padovan, City Clerk
Resolution 02-I8 Page 1