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1/15/2026 <br />4 <br />19 <br />History of the City’s UAL Balance & Funded Ratio <br />Funded Ratio includes Section 115 Trust Assets & General Fund Pension Reserve <br />$123 $129 <br />$138 <br />$102 <br />$159 $164 $155 <br />73.7%75.0%74.1% <br />84.3% <br />72.7%72.9%75.9% <br />0.0% <br />10.0% <br />20.0% <br />30.0% <br />40.0% <br />50.0% <br />60.0% <br />70.0% <br />80.0% <br />90.0% <br />100.0% <br /> $- <br /> $20 <br /> $40 <br /> $60 <br /> $80 <br /> $100 <br /> $120 <br /> $140 <br /> $160 <br /> $180 <br />2018 2019 2020 2021 2022 2023 2024 <br />Mi <br />l <br />l <br />i <br />o <br />n <br />s <br />UAL Funded Ratio (Includes Section 115 Trust Assets & General Fund Pension Reserve) <br />8.4%6.5%5.0%22.4%-7.5%6.1%9.3% (Prelim)CalPERS Returns: <br />20 <br />60.6% <br />66.6%70.1%71.1%72.9% <br />0% <br />10% <br />20% <br />30% <br />40% <br />50% <br />60% <br />70% <br />80% <br />Concord Antioch Livermore Pleasanton Walnut Creek <br />Source: CalPERS Actuarial Reports and city audited financial statements <br />CalPERS Funded Ratio Comparison (As of June 30, 2023) <br />Funded Ratio Includes Trust Assets & Pension Reserves <br />$261M UAL <br />Assets: <br />Section 115 <br />Trust ($0) <br />$294M UAL <br />Assets: <br />Section 115 <br />Trust ($46M) <br />$166M UAL <br />Assets: <br />Section 115 <br />Trust ($0) <br />$176M UAL <br />Assets: <br />Section 115 <br />Trust ($0) <br />$164M UAL <br />Assets: <br />Section 115 <br />Trust ($25M) <br />+ Pension <br />Reserve <br />($1.9M) <br />21 <br />$0 <br />$5 <br />$10 <br />$15 <br />$20 <br />$25 <br />20 <br />1 <br />8 <br />20 <br />1 <br />9 <br />20 <br />2 <br />0 <br />20 <br />2 <br />1 <br />20 <br />2 <br />2 <br />20 <br />2 <br />3 <br />20 <br />2 <br />4 <br />20 <br />2 <br />5 <br />20 <br />2 <br />6 <br />20 <br />2 <br />7 <br />20 <br />2 <br />8 <br />20 <br />2 <br />9 <br />20 <br />3 <br />0 <br />20 <br />3 <br />1 <br />20 <br />3 <br />2 <br />20 <br />3 <br />3 <br />20 <br />3 <br />4 <br />20 <br />3 <br />5 <br />20 <br />3 <br />6 <br />20 <br />3 <br />7 <br />20 <br />3 <br />8 <br />20 <br />3 <br />9 <br />20 <br />4 <br />0 <br />20 <br />4 <br />1 <br />20 <br />4 <br />2 <br />20 <br />4 <br />3 <br />20 <br />4 <br />4 <br />20 <br />4 <br />5 <br />Mi <br />l <br />l <br />i <br />o <br />n <br />s <br />Historical & Projected CalPERS Payments (UAL + Normal Cost) <br />UAL + Normal Cost <br />payments projected to <br />increase from $18M to <br />$23M (+24%) by FY 2032 <br />City’s UAL payments rising <br />to $16.6M by FY 2032 <br />28% higher than FY 2025 <br />UAL payment ($13M) <br />Annual Normal Cost <br />contributions going <br />forward projected to range <br />between $5.4M and <br />$7.5M through FY 2045 <br />Source: CalPERS Actuarial Valuation Reports & CalPERS Pension Outlook Tool <br />*Assumes FY 2023-24 investment returns of 9.3% and 6.8% investment <br />returns thereafter. <br />Normal Cost <br />Hypothetical UAL Payments* <br />(9.3% FY 2023-24 Returns) <br />III. COST MANAGEMENT STRATEGY OVERVIEW <br />23 <br />Pension Cost-Management Strategies – Not Mutually Exclusive <br />Prepay UAL early in Fiscal Year (≈ 3.3% discount) → City Does This <br />Negotiate Cost Sharing With Employees <br />•New employees already governed by lower cost/benefit PEPRA plans <br />•Negotiate cost sharing of the City’s share <br />Use Cash Reserves to Pay Extra <br />•Section 115 Pension Trust – Separate trust solely dedicated to pension <br />•City’s annual UAL cost and Normal Cost can be supplemented with the Section 115 <br />Trust <br />•Additional Discretionary Payments (“ADPs”) –direct payments to CalPERS to reduce UAL <br />•Can be funded with Section 115 or annual surplus (not recommended at this time <br />given City’s projected budget deficits) <br />IV. CITY’S SECTION 115 TRUST <br />OVERVIEW, OBJECTIVES & ANALYSIS <br />19 20 <br />21 22 <br />23 24 <br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F