Pension Trust


The City forecasts operating budget challenges within the next five years as a result of increasing pension costs which are projected to turn currently anticipated operating surpluses into deficits.


Creation of an irrevocable pension trust is a tool to help mitigate the impact of anticipated large future pension contributions.

Once placed in the trust, these funds are no longer be available for other City purposes.

Earnings for the fund may be used to:

  • Help pay down the Unfunded Actuarial Liability (UAL) the City owes to the California Public Employees Retirement System (CalPERS).  By paying in advance, the total amount due is reduced.
  • Offset annual cost increases assessed by CalPERS.

For definition of key pension terms, click here.


July 18, 2017:  City Council authorized the allocation of $12.8 million in unassigned General Funds to an irrevocable pension trust fund to be established by the Council at a later date, as well as the creation of a Statement of Investment Policy for the trust.

Fall 2017:  Request for Proposal process to select a vendor to provide Section 115 pension trust management services received three responses

February 6, 2018:  Council approved formation of the trust and selected PFM Asset Management LLC (PFM) as the trust manager.