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<br />The City recognized pension expense for the Miscellaneous Plan in the following amounts
<br />for fiscal years ended June 30, 2020, 2021, and 2022:
<br />Fiscal Year Ended
<br />June 30 Miscellaneous Plan
<br />Enterprise Portion
<br />of Miscellaneous Plan
<br />2021 $13,087,567 $1,454,029
<br />2022 6,501,567 722,324
<br />2023 13,802,899 1,533,502
<br />(1) Pension expense is the change in net pension liability from the previous reporting period to the current reporting
<br />period, less adjustments. A negative expense is reported as a credit.
<br />Source: Annual Comprehensive Financial Reports for Fiscal Years Ending June 30, 2021, 2022, and 2023.
<br />Funded Status. The following table sets forth the schedule of funding for the City’s
<br />Miscellaneous Plan for the fiscal years ended June 30, 2020, 2021, and 2022. The Enterprise’s
<br />share of the Miscellaneous Plan’s unfunded accrued liability as of the June 30, 2022 valuation
<br />date was $14,193,427.
<br />Miscellaneous Plan
<br />Valuation
<br />Date
<br />(June 30)Accrued Liability
<br />Market Value
<br />of Assets
<br />Unfunded
<br />Accrued
<br />Liability
<br />Funded
<br />Ratio (1)
<br />Annual
<br />Covered
<br />Payroll
<br />2020 $373,699,332 $254,170,783 $119,528,549 68.0%$37,695,381
<br />2021 395,480,130 311,589,337 83,890,793 78.8 39,237,858
<br />2022 415,488,860 287,735,244 127,753,616 69.3 39,749,570
<br />(1) Based on the market value of assets.
<br />Source: CalPERS Actuarial Report Dated July 2023.
<br />For additional information regarding the City’s retirement plans and other post-
<br />employment benefits, see Appendix B – “ANNUAL COMPREHENSIVE FINANCIAL REPORT OF
<br />THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2023.”
<br />Other Post-Employment Benefits
<br />The City administers an agent multiple-employer defined benefit post-employment
<br />healthcare plan (“OPEB”). Employees hired before the effective dates applicable to their
<br />bargaining unit and retire under the City’s retirement plan are, pursuant to their respective
<br />collective bargaining agreements, eligible to have their medical insurance premiums reimbursed
<br />by the City up to the CalPERS Bay Area Kaiser family premium rate (Health Benefit Tier I).
<br />Beginning in Fiscal Year 2018-19, the City negotiated a new Retiree Health Benefit, Tier II with
<br />various bargaining units. Employees hired on or after the applicable Tier II effective date and retire
<br />under the City’s retirement plan will fall under the Retiree Health Benefit Tier II, for which the City’s
<br />contribution shall not exceed ninety percent (90%) of the CalPERS Bay Area Kaiser Premium for
<br />employee only coverage.
<br />The City is not required by law or contractual agreement to provide funding for retiree
<br />health costs other than the pay-as-you-go amount necessary to provide current benefits to
<br />retirees. The City’s retiree health plan is being managed through the California Employer’s Retiree
<br />Benefits Trust (“CERBT”), an irrevocable trust fund that allows public employers to prefund the
<br />future cost of their retiree health insurance benefits and other post-employment benefits for their
<br />covered employees or retirees.
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