Beverly Hills News – City Council to Get Update On Pension Rates and Unfunded Mandates
Posted: Saturday, January 31, 2015 – 1:03 PM
By Victoria Talbot
Don Rhoads, Administrative Services Director and Chief Financial Officer, will share the annual actuarial report from CalPERS providing the updated estimates of future pension rates and the level of unfunded liability for City employees.
The reporting lags by over a year,and this report is based on 2012-13 activity.
The report states “Since fiscal year 2012-13 was a positive earnings year for CalPERS (13.2%) the news this year is generally good. Rates are still rising and the UL is still very large, but the level of growth in rates has moderated considerably and projections now show rates finally leveling of by 2019-20, providing something of a light at the end of the tunnel.”
Projected rates to 2019-2020 have declined from last year’s projections. Previously, Rhoads had reported that rates five years out were projected to be over 56% for safety and over 27% for miscellaneous employees, “now those projections are 4-5% lower at 51% and 23%.
As more employees join the City under the Public Employee Pension Reform Act (PEPRA) pension plans will become less expensive until costs flatten out and potentially decline over time, assuming that CalPERS meets or exceeds its actuarial assumptions.