AgdaPkt 2018-02-26 Joint SA PFA - Laserfiche WebLink

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7.A - Page 21 required annual payment, including additional direct annual payments to CalPERS of $500,000, and annual contributions of $1.2 million to the Section 115 pension trust. Trust proceeds, including investment earnings, will be used in future years to help pay for increased annual pension costs. Increasing the funds invested in the trust, and maintaining those funds over a longer period of time, will provide greater resources to pay the City's pension costs. Other Post -employment Benefit (OPEB) Liabilities The City currently provides eligible retirees with reimbursement of their medical insurance premiums, subject to their collective bargaining agreement, which includes a maximum reimbursement amount. In 2010, the City established a Section 115 OPEB trust account through the California Employer's Retiree Benefits Trust (CERBT) program. As of December 31, 2017, there was a balance of $29.0 million in the trust account. As of the most recent actuarial report, the City's unfunded liability for these benefits was $57.6 million. It should be noted that this liability is the balance after including the $29.0 million in investment assets. The Preliminary Five -Year Forecast includes anticipated General Fund contributions to the CERBT Section 115 OPEB trust account of $300,000 annually in order to build resources for paying off the unfunded retiree health liability. Employee Wellness Health care costs are a significant component of employee benefits, and costs continue to increase, but at a somewhat slower rate than has been seen in previous years. Predicting health care costs into the future is particularly difficult in light of modifications to the Affordable Care Act. Staff will be monitoring how any federal and state changes might affect health insurance costs. In order to mitigate health care costs, staff has adopted a proactive approach to fostering employee wellness. A one-time grant of $100,000 from the Cabin Road Foundation was given to the Police Department for wellness efforts, and staff are working with the City's occupational health provider to identify and evaluate advanced tests that may provide early detection of health conditions that disproportionately affect Police Officers. Following identification of the appropriate tests, a committee of Human Resources and Police Department staff will develop and implement an advanced health screening protocol. Several other efforts to reduce health care costs are already underway. These programs include a functional movement program specific to the needs of Fire Department