[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6013857,"mediaKeyId","5793445-99c2f0998fd119988b2aa79998632a58","parentId",5793445,"title","Committee reviews CalPERS actuarial reports; staff: $3 million ADP lowered next year's pension costs","audioSeconds",506,"startMs",2880000,"endMs",3386000,"viewUrl","/Search/View?dp=1&key=5793445-99c2f0998fd119988b2aa79998632a58&start=2880&end=3386","thumbnailUrl","https://assets.pipeline.soar.com/5793445-99c2f0998fd119988b2aa79998632a58/thumbnail_2880000.jpg","articleUrl","/articles/6013857/California/Committee-reviews-CalPERS-actuarial-reports-staff-3-million-ADP-lowered-next-years-pension-costs","mediaUrl","https://secure.pipeline.soar.com/6013857-e979393ed4118d6898cfec515e1ee443/orig.mp4?Expires=1770430738&Signature=e9Yr~i3ofQfyEPIgw7GOcCktdfLTlvjUysKXjXelz1BZuDctOALbiI5RHRuz3BD-EFVbzMii5nbowLWdY7ko5F9Pvgz6-YwvO5rt1pySHEBirYuHFaQRhABgXM-lorcx01xsmr3OEC24l1UOes9dkwr8493T~t30fGXo25bLtDNmS~3AFBmG3zUSNrjppsoHbZJdtYzzmbRFL8a3w7tkiNaH9OPnGjkg-Ha67rdoQJFEcT9Dt1t08mn4gzxype34We85xaSywOeoYs-TXLp88FvO~7vERQdyBd5oRRmbQh-bCr6wCHTOHJ9Va~TrFHaxtTEk0Sdl-~ciGmCRA6i3zw__&Key-Pair-Id=KUT5TJCACFTXG","author","Town Council of Atherton CA","date","2025-09-10T21:18:08Z","article","The Finance Committee reviewed actuarial reports received from CalPERS for plans with valuation dates of June 30, 2024, and staff reported that the town made a $3,000,000 additional discretionary payment (ADP) toward the public‑safety unfunded actuarial liability in June 2025.

Robert, the town staff member who presented the item, told the committee the ADP was paid in June 2025 and therefore is not reflected in the 06/30/2024 CalPERS valuation documents the committee was reviewing. He said the $3 million payment reduced the town's public‑safety unfunded actuarial liability (UAL) that otherwise would have been shown in next year's required contribution tables. Robert summarized staff's calculations showing a reduction in the public‑safety UAL payment from about $1,196,000 (as shown in the valuation) to roughly $930,000 after the ADP, producing an estimated immediate budgetary savings of about $265,000 for the 2025–26 fiscal year. Staff said the ADP will also trim projected payments in later years and that the town will see additional effect from CalPERS' 24/25 preliminary investment return of 11.6% when that return is reflected in the next valuation.

The committee also heard summary figures from the CalPERS reports: staff quoted combined town liabilities and funding ratios drawn from the valuations and said the townwide combined UAL is in the low‑ to mid‑tens of millions (staff cited roughly $20.6 million combined UAL in the presentation, a modest decrease year over year). Robert noted that the CalPERS reported returns for 23/24 (9.5%) and the preliminary 24/25 returns will influence future employer rates and that the CalPERS funding‑risk mitigation policy and any discount‑rate adjustments remain key drivers of future changes.

Members asked for clarification on why payments for other plans moved when the ADP was applied to public safety. Robert explained that CalPERS offers a prepayment discount for UAL payments paid up front in July and that prepayment timing can produce year‑to‑year differences reflected in the valuation schedules.

A finance committee member raised broader concerns about CalPERS investment performance and long‑term assumption changes, noting the plan's multi‑year return history and questioning whether different asset strategies would have materially changed local results; that member asked for more data and repeated requests for more detailed census and amortization schedules. Staff said they plan to invite a CalPERS actuary and to provide the committee with the valuation amortization schedules and more detailed underlying census data when available.

The committee also reviewed administrative details including amortization schedules and the staff recommendation to continue monitoring CalPERS updates; staff indicated they will present additional analysis and expect a CalPERS actuary to attend a future meeting.

","mediaType","Video","parentTitle","Audit and Finance Committee September 9, 2025","oneSentenceSummary","Finance committee members reviewed the town's CalPERS actuarial valuations and staff briefed the group that a $3 million additional discretionary payment (ADP) made in June will reduce required employer payments next year, though committee members expressed ongoing concern about CalPERS assumptions and long‑term funding dynamics.","taxTitle","Atherton Town, San Mateo County, California","taxId",72378,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6013862,"Finance committee reviews OPEB roll‑forward showing small net asset, cautions about sensitivity to discount and health‑cost assumptions",129,204000,333000,"/Search/View?dp=1&key=5793445-99c2f0998fd119988b2aa79998632a58&start=204&end=333","https://assets.pipeline.soar.com/5793445-99c2f0998fd119988b2aa79998632a58/thumbnail_204000.jpg","/articles/6013862/California/Finance-committee-reviews-OPEB-rollforward-showing-small-net-asset-cautions-about-sensitivity-to-discount-and-healthcost-assumptions","https://secure.pipeline.soar.com/6013862-a5841dea3bbcbe291976a1a7fac4acf0/orig.mp4?Expires=1770430738&Signature=MThRHzCcY-Rd4WXov-uHErj1NYetqCREMc7pL84-8E1jFaYrL6e5xsw~59TI0SSrlTCz5aT0gz9Ugp3NWTWKE7LUd4uJz49aXvUaehPsdNmJEjA-sy9GocSe5t4ZeIQclbYwnon2yPw706TT4vyU6PFZIHYQURUG5~hi9dowEYs4GFP9PWq968QmfP5XU8ZVjdGsP~JgLd5sB0rj5wwFKrG4fAMFMeVTSjpAh8XjfJNceArbwppSmHs5wPnr2j-KeAbRFHWfikX-WjfGEpGCqZOsGu57SA-DUu7cSkTZYvLDxOLS9OMN4Hus0oZzdYv-9NgovCWeQMCbJZQdXb8BSA__&Key-Pair-Id=KUT5TJCACFTXG","Chair Hill convened the Finance Committee to review a roll‑forward update of the town's other postemployment benefits (OPEB) actuarial figures for the fiscal year ending June 30, 2025. The presentation, delivered by Roger Burton of Precision Actuarial TrueComp and introduced by staff member Robert, summarized the town's OPEB liabilities, trust assets and the actuarial assumptions that drive the results.

Burton said the roll‑forward updates the 06/30/2024 full valuation to a one‑year mathematical projection as of 06/30/2025 and does not re‑count the census of employees and retirees. He explained the firm \u001c\u001cmathematically bring[s] results forward a year\u001d\u001d and that the firm updated the discount rate used in the projection to reflect the PARS trust's investment strategy.

The staff report and presentation show the June 30, 2024 full valuation recorded an OPEB liability of about $8,150,000 and a PARS trust market balance of about $8,600,000, producing a net asset of roughly $530,000. Town contributions to the PARS trust since inception total about $5.8 million, the presentation said. For the one‑year roll‑forward, Burton told the committee the only material change in the projection was the discount rate; that change reduced the measured liability by about $151,000 while actual investment returns in the trust exceeded the projection, raising the market value above the assumed amount.

Committee members asked how retiree plan choices and CalPERS health plan rules affect the valuation. Burton and staff clarified that the actuarial roll‑forward uses the census and benefit elections in place at the valuation date: \u001cWe value based on what's in the census at the time,\u001d Burton said. Staff added that a retiree's insurance plan selection at retirement determines the benefit amount they receive and that enrollees can change plans during annual open enrollment, but the retiree's benefit allocation is based on the plan and subsidy in effect at the time of retirement.

The committee discussed the GASB 75 concept of an implicit subsidy for pre‑Medicare retirees (retirees pay the same blended premiums as active employees even though retirees tend to have higher per‑person costs). Burton explained the subsidy is included in the GASB 75 liability and is largely a reporting construct: it increases the reported liability but, as he put it, \u001cwe will never pay that implicit subsidy\u001d in the sense that the plan and trust are structured to meet actual benefit payments. He noted the implicit subsidy component is amortized over time and can decline as experience is recognized.

Members pressed on sensitivity: the firm's sensitivity tables (in the full report) show that a one‑percentage‑point increase in health‑care trend could erase most of the town's reported surplus, and a one‑percentage‑point change in the discount rate moves the liability by hundreds of thousands to low millions of dollars. Burton cautioned that market returns and health‑cost trends can materially change the measured position year to year.

No formal committee vote was recorded on acceptance of the roll‑forward during the discussion; staff said the roll‑forward is presented for review now and the committee will receive the next full actuarial valuation (a full census and recalculation) at the required two‑year interval.

The committee discussed operational matters including continuing to pay retiree health benefits from the trust and providing quarterly PARS statements to the finance committee so members can track performance and distributions between meetings.

The presentation and the full actuarial roll‑forward report were provided to the committee for inclusion in the town's financial notes. Staff said the town will receive a full actuarial valuation next year that will incorporate census changes and the complete set of actuarial assumptions.

","The Town of Aptitude Finance Committee heard a roll‑forward of the town's OPEB valuation showing a modest net asset position as of the 2024 report rolled forward to 06/30/2025, with presenters warning the position is sensitive to discount‑rate and health‑cost assumptions.","actionData","errors"]

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Committee reviews CalPERS actuarial reports; staff: $3 million ADP lowered next year's pension costs

Finance committee reviews OPEB roll‑forward showing small net asset, cautions about sensitivity to discount and health‑cost assumptions