REQUEST FOR CITY COUNCIL ACTION
DATE: 02/01/2023
TO: Honorable Mayor and City Council Members
FROM: Pension Stabilization Trustee Board and Finance Department
SUBJECT:
Title
Fiscal Year 2023 Pension Stabilization Trust Contribution
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EXECUTIVE SUMMARY:
This staff report asks the City Council to approve the annual contribution of $2,000,000 from Measure X to the Pension Stabilization Trust, and approve the recommendation from the Pension Stabilization Trustee Board to transfer $111,000 of the Fiscal Year (FY) 2022 year-end surplus to the Pension Stabilization Trust for the FY 2023 contribution.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Approve the Pension Stabilization Trustee Board's Fiscal Year 2023 recommendation to contribute $111,000 of the Fiscal Year 2022 General Fund year-end surplus to the Pension Stabilization Trust Fund.
b. Approve the annual contribution of $2,000,000 from Measure X Reserves to the Pension Stabilization Trust Fund.
c. Authorize the City Manager, or his designee, to make the necessary budget and accounting adjustments for the FY 2023 contribution amount.
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BACKGROUND & HISTORY:
The City of Corona Pension Stabilization Trust (Trust) was established pursuant to Section 115 of the Internal Revenue Code, as an entity to which funds for the City can be deposited, and through which a Board of Trustees can invest and manage funds for the exclusive purpose of funding contributions to the pension plan providing benefits for City employees and retirees.
In May 2021, the City Council approved the Pension Management Policy (Policy). In January 2022, the City Council approved the establishment of the Trust and the Trust Agreement (Agreement), and approved an initial contribution of $30,000,000 to the Trust. The funds may be used to address future CalPERS unfunded accrued liabilities as well as Pension Obligation Bond payments.
The Agreement details the rules and responsibilities of the...
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