REQUEST FOR CITY COUNCIL ACTION
DATE: 02/07/2024
TO: Honorable Mayor and City Council Members
FROM: Pension Stabilization Trustee Board and Finance Department
SUBJECT:
Title
FISCAL YEAR 2024 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 Reserves to the Pension Stabilization Trust and approve the recommendation from the Pension Stabilization Trustee Board to contribute $4,050,000 of the Fiscal Year 2023 General Fund year-end surplus to the Pension Stabilization Trust. The combined contributions total $6,050,000.
RECOMMENDED ACTION:
Recommended action
That the City Council:
a. Approve the annual contribution of $2,000,000 from Measure X Reserves Fund 120 to the Pension Stabilization Trust Fund 485.
b. Approve the Pension Stabilization Trustee Board's recommendation to contribute $4,050,000 of the Fiscal Year 2023 General Fund 110 year-end surplus to the Pension Stabilization Trust Fund 485.
c. Authorize the City Manager, or his designee, to make the necessary budget and accounting adjustments for the Fiscal Year 2024 contribution.
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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 in 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 investment 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 (POB) payments.
The Agreement detai...
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