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RIVERSIDE PUBLIC UTILITIES <br />Board Memorandum <br />BOARD OF PUBLIC UTILITIESDATE:FEBRUARY 26, 2018 <br />ITEM NO: 8 <br />SUBJECT:CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CALPERS) PENSION <br />COSTS UPDATE <br />ISSUE: <br />Receive an update on the City’s pension costs, past and future, as part of the California Public <br />Employees’ Retirement System (CalPERS). <br />RECOMMENDATION: <br />That the Board of Public Utilities receive an update on the City’s past and future CalPERSretirement <br />costs. <br />BACKGROUND: <br />During the April 12, 2017 City Council Finance Committee meeting, City staff presented information <br />about the financial impact of theCalPERS changes to its assumed rate of investment return (i.e. <br />“discount rate”). <br />During the August 31, 2017 Budget Engagement Commission (BEC) meeting, staff presented <br />information on future CalPERS cost increasesapplicable to the City. <br />During the December 11, 2017 Board of Public Utilities meeting, staff presented the FY 2016-17financial <br />audit.During that meeting questions were raisedabout the City’s CalPERS costs and their impact on the <br />financial statements. <br />DISCUSSION: <br />Overview of CalPERS Retirement Costs <br />The City’s Finance Department has prepared a brochure that provides information on CalPERS plan <br />benefits, past and future costs, and actions taken by the City to reduce and control retirement expenses. <br />The brochure is attached, and the following key discussion points are presented in the PowerPoint slides <br />accompanying this report: <br />1.CalPERS Overview <br />2.The City’s Defined Benefit Plans <br />3.Citywide Estimated CalPERS Cost <br />4.The City’s Pension Liability <br />Page 26 <br />