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1/15/2026
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<br /> $4.5
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<br />Assumptions:
<br />CalPERS Discount Rate: 6.8%
<br />(no change)
<br />CalPERS Investment Returns:
<br />9.5% in FY 24; 6.8%
<br />thereafter
<br />Initial Trust Deposit: ~$4.0M
<br />Additional Deposits: $0
<br />Trust Annual Investment
<br />Earnings: 6.90%
<br />Ending Trust Balance: $0
<br />UAL Payments*
<br />*Source: CalPERS Pension Outlook Tool
<br />Withdrawals from Trust
<br />($5.8M)
<br />Net Payments
<br />Smoothing Level: $3.4M
<br />Scenario 1b – Section 115 Trust (Balanced Portfolio)
<br />Smooth the Mountain Peak of Payments
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<br />$0.0
<br />$0.5
<br />$1.0
<br />$1.5
<br />$2.0
<br />$2.5
<br />$3.0
<br />$3.5
<br />$4.0
<br />$4.5
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<br />Scenario 2a – Additional Discretionary Payment (ADP) to CalPERS
<br />20-Year Amortization Base Partial Paydown (Spread Savings Out)
<br />Assumptions:
<br />CalPERS Discount Rate: 6.8%
<br />(no change)
<br />CalPERS Investment Returns:
<br />9.5% in FY 24; 6.8% thereafter
<br />Total ADP: $4.0M
<br />Safety Fire: $2.0M
<br />Safety Police: $2.0M
<br />20-Year Bases
<br />UAL Payments After ADP
<br />$7.0M Payment
<br />Reduction
<br />UAL Payments*
<br />*Source: CalPERS Pension Outlook Tool
<br />15
<br />Assumptions:
<br />CalPERS Discount Rate: 6.8%
<br />(no change)
<br />CalPERS Investment Returns:
<br />9.5% in FY 24; 6.8%
<br />thereafter
<br />Total ADP: $4.0M
<br />Safety Fire: $2.0M
<br />Safety Police: $2.0M
<br />11- & 12-Year Bases
<br />$0.0
<br />$0.5
<br />$1.0
<br />$1.5
<br />$2.0
<br />$2.5
<br />$3.0
<br />$3.5
<br />$4.0
<br />$4.5
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<br />UAL Payments After ADP
<br />$5.5M Payment
<br />Reduction
<br />UAL Payments*
<br />*Source: CalPERS Pension Outlook Tool
<br />Scenario 2b – Additional Discretionary Payment (ADP) to CalPERS
<br />11-12 Year Amortization Base Paydown (Savings During Challenging Years)
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<br />Comparison of ADP & Section 115 Smoothing Scenarios
<br />Section 115 (Mod Conservative Portfolio)Section 115 (Balanced Portfolio)ADP (20-Year Bases)ADP (11- and 12-Year Bases)
<br />Fiscal Year
<br />Existing Trust
<br />Balance
<br />Trust
<br />Withdrawals
<br />(Savings)
<br />Ending
<br />Balance of
<br />Trust
<br />Existing Trust
<br />Balance
<br />Trust
<br />Withdrawals
<br />(Savings)
<br />Ending
<br />Balance of
<br />Trust ADP
<br />Payment
<br />Reductions
<br />(Savings)ADP
<br />Payment
<br />Reductions
<br />(Savings)
<br />2025 3,992,354$ -$ 3,992,354$ 3,992,354$ -$ 3,992,354$ 3,992,354$ -$ 3,992,354$ -$
<br />2026 - - 4,144,862 - 56,878 4,207,024 - 345,322 - 346,588
<br />2027 - 145,098 4,152,554 - 221,304 4,260,735 - 349,681 - 537,322
<br />2028 - 265,098 4,036,364 - 341,304 4,190,613 - 354,163 - 544,685
<br />2029 - 595,098 3,572,722 - 671,304 3,762,142 - 358,770 - 552,254
<br />2030 - 615,098 3,070,605 - 691,304 3,282,726 - 363,506 - 560,035
<br />2031 - 625,098 2,538,925 - 701,304 2,759,540 - 368,375 - 568,034
<br />2032 - 695,098 1,914,453 - 771,304 2,125,801 - 373,380 - 576,257
<br />2033 - 635,098 1,328,226 - 711,304 1,512,098 - 378,525 - 506,625
<br />2034 - 585,098 771,516 - 661,304 909,499 - 383,814 - 434,436
<br />2035 - 475,098 307,741 - 551,304 382,910 - 389,252 - 359,579
<br />2036 - 305,098 2,743 - 381,304 1,718 - 394,841 - 281,941
<br />2037 - - - - - 400,587 - 201,401
<br />2038 - - - - - 406,494 - -
<br />2039 - - - - - 412,567 - -
<br />2040 - - - - - 418,809 - -
<br />2041 - - - - - 425,226 - -
<br />2042 - - - - - 345,458 - -
<br />2043 - - - - - 263,163 - -
<br />2044 - - - - - 178,230 - -
<br />2045 - - - - - 90,549 - -
<br />2046 - - - - - - - -
<br />Total 3,992,354$ 4,940,983$ -$ 3,992,354$ 5,759,914$ -$ 3,992,354$ 7,000,712$ 3,992,354$ 5,469,158$
<br />Average Net Payment Through 2037: 3,494,902$ 3,418,696$ 3,494,149$ 3,410,070$
<br />Total Cost Reduction/Savings Through 2037: 4,940,983$ 5,759,914$ 4,460,216$ 5,469,158$
<br />Total Cost Reduction/Savings Through 2045: 4,940,983$ 5,759,914$ 7,000,712$ 5,469,158$
<br />QUESTIONS?SUPPLEMENTAL INFORMATION:
<br />BACKGROUND ON CALPERS COSTS
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<br />Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F
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