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P.O. Box 520, Pleasanton, CA 94566-0802 123 Main Street Finance Human Resources Information Technology (925) 931-5400 (925) 931-5048 (925) 931-5083 Fax: 461-6855 Fax: 931-5488 Fax: 931-5491 REQUEST FOR PROPOSAL Pension Funding Strategy for Employee Retirement January 2, 2026 The City of Pleasanton, CA, is seeking proposals from firms interested in developing a City pension obligation management and funding strategy for employee retirement. A menu of identified strategies shall be assessed to enable the City to better fund its pension obligations and identify options for reducing unfunded liabilities, ultimately achieving cost savings. The evaluation of options shall consider City cash flows, workforce management, CalPERS actuary data, capital project funding/asset management plan, and debt issuance requirements. The City is seeking a firm to conduct a robust and comprehensive assessment of the various CalPERS pension plans and develop a management funding policy best designed for the City of Pleasanton. The City participates in several pension plans administered by the California Public Employees Retirement System. These include agent multiple-employer defined pension plans for the Miscellaneous and Fire Safety (covers Pleasanton-Livermore Fire Department JPA) employees and a cost-sharing multiple-employer defined benefit pension plan for the Police Safety (three separate plans for three pension tiers) employees. In addition to the assets held by CalPERS for these plans, the City also has a Section 115 Pension Trust with PARS. Like other agencies, the City’s pension expenses have substantially increased since the Great Recession, around 2007, primarily due to CalPERS investment losses and various changes in CalPERS policies related to calculating pension liabilities. The most significant of these changes is the reduction in the discount rate. In January 2017, CalPERS adopted a policy that reduced the CalPERS discount rate from 7.5 percent in 2017-18 to 7.0 percent in 2020-21, and then 6.8 percent in 2021-22. Based on CalPERS’ latest projection, the City’s contributions are expected to peak in the next several years and then decrease continuously until the Unfunded Actuarial Liability is fully paid off. Citywide pension costs are projected to be approximately $29 million for 2025-26 and $31 million for 2026-27. Pension contributions are expected to stabilize as a higher percentage of current members will be under the reduced pension benefits based on the Public Employees’ Pension Reform Act of 2013. Docusign Envelope ID: BB80A86F-2853-4F40-B02D-18F5B9DD615F