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REQUEST FOR PROPOSALS FOR PENSION FUNDING STRATEGY FOR EMPLOYEE RETIREMENT Page 5 enhancing both the policy, as well as a more robust and tailored evaluation of cost management strategies. While we aren’t privy to the background regarding the development of the current policy, some of the current language is fairly generic (perhaps a stock PARS policy), and the City may want to consider including more detail on a withdrawal strategy that accounts for the projected General Fund deficits, minimum and maximum balance goals (perhaps as a % of annual pension costs), and perhaps more detail about how and when funds could be used (e.g., strategic ADPs, hybrid strategies that include a Fresh Start if more cost effective, etc.). While pension bonds aren’t a recommended option at this time, parameters and guardrails could be established as to when the City might want to consider these, and what kind of stress testing and risk reduction techniques could be utilized if pension bonds were ever considered. The initial meetings with City staff to discuss the City’s strategic objectives with this project and other considerations (political, operational, capital needs, etc.) will be highly beneficial for us as we begin to tailor the pension strategy with these considerations in mind. The Foster and Foster memo, while coming a bit more from an “actuarial perspective,” did a good job of showing two Section 115 Trust Smoothing options. This type of analysis is the “tip of the iceberg” in our opinion, and we believe that a more comprehensive set of analysis and scenario modeling (of all types of strategies) will be helpful for staff to review in order to properly fine tune a comprehensive strategy, and ultimately, a policy that can be adaptive to this. 2. NHA’S ASSIGNED PERSONNEL NHA’s assigned project team will consist of the following advisors: Mike Meyer (Vice President), Craig Hill (Managing Principal), and Matt DeFilippis (Associate). NHA’s team will be supported by Kevin Ellis (Analyst) and Mohamed Maxamed (Analyst). Mike Meyer will serve as the City’s lead advisor and day-to-day contact. Additional advisors from NHA will be made available as resources to the City as needed. A summary of the experience of each team member is provided below. Mike Meyer, Vice President | Role: Lead Advisor and Day-to-Day Contact Mr. Meyer has worked in public finance for 22 years, with just under half of his time spent as an underwriter. Mr. Meyer manages NHA’s Pension and Fiscal Sustainability Group and has analyzed pensions and POB structuring solutions since 2006. He has worked on each of the firm’s pension consulting engagements, covering over 100 CalPERS members. Mr. Meyer has significant expertise in UAL restructurings/Pension Obligation Bonds, having closed 25 financings during 2020 to 2022, totaling $1.7 billion in par. Mr. Meyer has been a frequent speaker (recently for CDIAC, CSMFO, GovInvest) on the subject of pension liability management and also consistently publishes pension newsletters (“NHAlerts”). The most recent NHAlert can be found here: CalPERS Beats Expectations Again | NHA Advisors, as well as a history of newsletters (primarily pension related) dating back to 2015 here. A two-part CDIAC pension webinar, led by Mr. Meyer, including a comprehensive discussion of pension cost management strategies, is included here. Mr. Meyer holds a B.S. in Management Science, from the University of California, San Diego. He maintains his MSRB Series 50 License. Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F