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7.A - Page 9 Statewide Pension Challenges The most recent actuarial report from CalPERS indicates that the City has an unfunded pension liability of $238.8 million as of 2015, up from $194.3 million a year earlier (an increase of 23 percent), and a retiree health liability of $57.6 million. As shown in the chart below, the City's pension costs are expected to rise significantly over the next decade to pay off the unfunded liability. In five years, the City's annual CalPERS payment is projected to be approximately $36.4 million, which is $15.1 million more than it is today, or a 71 percent increase. Costs are expected to continue to grow through FY 2030-31, when annual costs will be more than double what they are today. These estimates are at a 50 percent confidence level, meaning that there is a 50 percent chance they could be higher or lower. Costs will begin to slowly decline in FY 2030-31 but will remain higher than current levels. $48.0 $44.0 $40.0 $36.0 $32.0 $28.0 $24.0 $20.0 $16.0 $12.0 $8.0 $4.0 CalPERS Pension Expense -Actual and Projected (in millions) Jm w2 .�2a ti� tiN ryN tiM N� H N� �4 N� �� O r,1N ■ Safety ■ Miscellaneous The City is not unique in facing these pension challenges, and municipal agencies across the state are facing increasing California Public Employee Retirement System (CaIPERS) pension costs. In fact, the League of California Cities (LCC) released a report in January 2018 illustrating the dramatically increasing pension contributions that local agencies are facing (report available at httr)://www.cacities.ora/2018PensionSurvev).