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<br />1 <br />160 Bovet Road, Suite 203 <br />San Mateo, CA 94402 <br />(650) 341-3311 <br />rael-letson.com <br />August 12, 2026 <br /> <br />Via Email (SHsieh@cityofpleasantonca.gov) <br /> <br />Susan Hsieh <br />Director of Finance <br />City of Pleasanton <br />P.O. Box 520 <br />Pleasanton, CA 94566 <br /> <br />Re: CalPERS Actuarial Services <br /> <br />Dear Ms. Hsieh: <br /> <br />Thank you for the opportunity to submit our proposal for CalPERS actuarial analysis for the City of <br />Pleasanton. Attached is background information on our firm and our expertise with CalPERS <br />analysis. <br />Background <br />The City participates in CalPERS, with 3 plans providing: <br />Group Tier 1 Tier 2 PEPRA <br />Miscellaneous 2.7%@55 n/a 2.0%@62 <br />Safety Police 3.0%@50 3.0%@55 2.7%@57 <br />Safety Fire 3.0%@50 3.0%@55 2.7%@57 <br /> <br />City fire services are provided via the Livermore-Pleasanton Fire Department, with CalPERS costs <br />split equally between the 2 cities. <br />The City initiated a Supplemental Pension Trust in 2017/18, which had approximately $60 million as <br />of December 31, 2025. In March 2026 the City adopted a pension funding policy which will target <br />the Supplemental Trust balance at 150% of the fiscal year 2025/26 required employer contribution. <br />Assembly Bill (AB) 1383 would make the following changes for CalPERS PEPRA members. All <br />changes would be on a prospective basis only (meaning changes would only apply to service after <br />the January 1, 2027 effective date). <br /> Increase the PERSable pay cap <br /> PEPRA employee share of the Total Normal Cost could be negotiated (currently, PEPRA <br />employees must pay ½ of Normal Cost) <br /> For Safety: <br /> Increase the PEPRA benefit formulas to reach maximum percentages at age 55 rather <br />than the current age 57. For example, 2%@57 would become 2%@55. <br /> Permit agencies to negotiate 3%@55. <br />The City is looking for an analysis of the impact of AB 1383 on the City’s CalPERS plans. It is <br />important to understand that AB 1383 would have a minimal impact on the unfunded liability for <br />the City. If enacted, the bill would increase future contributions (more significantly for Safety) due <br />to increases in the City Normal Cost payments. <br />Docusign Envelope ID: E561D385-1846-8733-8390-54501B3D0556