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CITY OF PLEASANTON
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<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />FOR THE YEAR ENDED JUNE 30, 2022
<br />
<br />
<br />Note 11: Defined Benefit Pension Plan (Continued)
<br />
<br />The City’s Safety Police Plan is a cost-sharing multiple-employer defined benefit pension
<br />plan administered by CalPERS since the plan has less than 100 active members,
<br />commonly referred to as risk pool. The City has two retirement benefit tiers in the Safety
<br />Police Plan and a PEPRA classification. Tier 1 is for employees hired prior to
<br />January 1, 2013. Tier 2 is for employees hired on or after January 1, 2013. PEPRA is
<br />for employees new to CalPERS hired on or after January 1, 2013.
<br />
<br />For purposes of measuring the net pension liability and deferred outflows/inflows of
<br />resources related to pensions and pension expense, information about the fiduciary net
<br />position of the plan and additions to/deductions from the plan’s fiduciary net position
<br />have been determined on the same basis as they are reported by CalPERS. For this
<br />purpose, benefit payments (including refunds of employee contributions) are recognized
<br />when due and payable in accordance with the benefit terms. Investments are reported
<br />at fair value.
<br />
<br />Below is a summary of the deferred outflows of resources, net pension liabilities and
<br />deferred inflows of resources, by plan:
<br />
<br />Deferred Outflows
<br />of Resources
<br />Net Pension
<br />Liability/
<br />Proportionate
<br />Share of Net
<br />Pension Liability
<br />Deferred Inflows
<br />of Resources Pension Expense
<br />Miscellaneous $ 12,981,264 $ 75,173,007 $ (22,930,718) $ 5,985,777
<br />Safety (Police) 11,830,777 20,034,837 (16,970,372) (26,030,698)
<br />Total $ 24,812,041 $ 95,207,844 $ (39,901,090) $ (20,044,921)
<br /> Each plan is discussed in detail below.
<br />
<br />Funding Policy – In March 2018, the City established a Section 115 Pension Trust Fund
<br />with Public Agency Retirement Services (PARS). PARS, the trust administrator, partners
<br />with U.S. Bank and HighMark Capital Management to provide trustee and investment
<br />advisory services, respectively. This trust was established to set aside moneys to meet the
<br />City’s future pension contributions or unfunded liabilities. The fair value on the account at
<br />June 30, 2022, was $43.3 million. Financial statements of PARS may be obtained from
<br />PARS, 4350 Von Karman Avenue, Suite 100, Newport Beach, California 92660.
<br />
<br />b. Miscellaneous Plan
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<br />Benefits Provided – CalPERS provides retirement and disability benefits, annual cost of
<br />living adjustments and death benefits to plan members, who must be public employees,
<br />and their beneficiaries. Benefits are based on years of credited service, equal to one year
<br />of full time employment, age and the average of the final one year of compensation for
<br />Tier 1 members and the average of the final three years’ of compensation for PEPRA
<br />members. Members with at least five years of total service are eligible to retire at age 50
<br />with statutorily reduced benefits. All members are eligible for non-duty disability benefits
<br />after 10 years of service. The death benefit is one of the following: the Basic Death Benefit,
<br />the 1959 Survivor Benefit, or the Optional Settlement 2W Death Benefit.
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