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1/15/2026
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<br />RiversideCA.gov
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<br />•Annual pension costs have more than tripled since 2007
<br />•As % of payroll, Safety costs have escalated to 53%;
<br />Miscellaneous to 34%
<br />HISTORICAL CalPERS COST TRENDS
<br />Annual UAL and Normal Cost Payments
<br />53.3%
<br />0.0%
<br />5.0%
<br />10.0%
<br />15.0%
<br />20.0%
<br />25.0%
<br />30.0%
<br />35.0%
<br />40.0%
<br />45.0%
<br />50.0%
<br />55.0%
<br /> $-
<br /> $5,000,000
<br /> $10,000,000
<br /> $15,000,000
<br /> $20,000,000
<br /> $25,000,000
<br /> $30,000,000
<br /> $35,000,000
<br /> $40,000,000
<br />Safety Plan
<br />UAL PaymentEmployer Normal CostTotal Employer Payments as % of Payroll
<br />34.4%
<br />0.0%
<br />5.0%
<br />10.0%
<br />15.0%
<br />20.0%
<br />25.0%
<br />30.0%
<br />35.0%
<br />40.0%
<br />45.0%
<br />50.0%
<br />55.0%
<br /> $-
<br /> $5,000,000
<br /> $10,000,000
<br /> $15,000,000
<br /> $20,000,000
<br /> $25,000,000
<br /> $30,000,000
<br /> $35,000,000
<br /> $40,000,000
<br />Miscellaneous Plan
<br />UAL PaymentEmployer Normal CostTotal Employer Payments as % of Payroll
<br />RiversideCA.gov
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<br />HISTORICAL CalPERS COST TRENDS
<br />Annual UAL Balance Owed to CalPERS
<br />96.8%
<br />71.5%
<br />87.8%
<br />77.9%
<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 /> $100,000,000
<br /> $200,000,000
<br /> $300,000,000
<br /> $400,000,000
<br /> $500,000,000
<br /> $600,000,000
<br /> $700,000,000
<br />2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
<br />Miscellaneous Plan UAL Safety Plan UAL
<br />Funded Status (Safety)Funded Status (Miscellaneous)
<br />UAL has grown from $38M to $627M (6/30/2018)
<br />Due to PERS assumption changes and under-performance
<br />of investments (all impacts out of City’s control)
<br />6/30/2020 projected UAL of $642M which incorporates
<br />last phase of discount rate reduction
<br />Funded status at 71.5% (Safety) and 77.9% (Misc.)
<br />RiversideCA.gov
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<br />$642M UAL PROJECTED REPAYMENT SCHEDULE
<br />Annual Citywide Payments to CalPERS on UAL
<br />$0
<br />$10,000,000
<br />$20,000,000
<br />$30,000,000
<br />$40,000,000
<br />$50,000,000
<br />$60,000,000
<br />$70,000,000
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<br />0
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<br />1
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<br />Safety Plan UAL Miscellaneous Plan UAL
<br />RiversideCA.gov
<br />10
<br />GENERAL FUND ONLY: UAL + OTHER BOND DEBT
<br />40% Miscellaneous + 100% Safety + GF Bonds/Loans
<br />$0
<br />$10,000,000
<br />$20,000,000
<br />$30,000,000
<br />$40,000,000
<br />$50,000,000
<br />$60,000,000
<br />$70,000,000
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<br />0
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<br />3
<br />3
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<br />3
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<br />3
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<br />0
<br />20
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<br />1
<br />20
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<br />2
<br />20
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<br />20
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<br />Safety Plan UAL 40% of Miscellaneous Plan UAL GF POB/Lease Debt
<br />Other General
<br />Fund Bond
<br />Debt
<br />40% of Miscellaneous Plan UAL
<br />100% of Safety Plan UAL
<br />By 2023, total General
<br />Fund combined debt
<br />payments expected to
<br />be about 20% of the
<br />General Fund budget
<br />RiversideCA.gov
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<br />RIVERSIDE HAS HISTORICALLY TAKEN PRO-ACTIVE
<br />STEPS TO MANAGE PENSION COSTS
<br />2003-2005: City issued
<br />POBs to extinguish UAL at that time and reduce payments
<br />2011-2012: All new
<br />employees begin paying the employee portion of PERS pension costs
<br />2013: Established lower pension benefits for new employees, resulting in lower pension costs (PEPRA)
<br />2016: City bargaining units agree to begin paying for their share of pension costs (phased in over several years)
<br />2017: Refinanced $30 million Bond Anticipation Note; fixed rate POB and
<br />accelerated 10-year amortization
<br />2017 – 2019: Finance
<br />Committee and Budget Engagement Committee presentations
<br />2018-2019: CalPERS
<br />Challenge project initiated with weekly meetings + Adoption of Pension Funding Policy + Creation of Section 115 Trust
<br />2018 – 2020: Pre-pay UAL
<br />at beginning of FY to save 3.5% ($1.2M to $1.5M annually)
<br />Every Year: Implement operational efficiencies, where possible, to minimize costs and impact to service levels as CalPERS costs increase
<br />II. GENERAL FUND DEFICIT STRATEGIES
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<br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F
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