Oxnard—The Finance and Governance Committee, Tuesday, July 23, approved implementing the City’s Fiscal Year 2024-2025 Long-Term Debt Reduction for Pension and OPEB (Other Post-Employment Benefits).
CHIEF Financial Officer Javier Chagoyen-Lazaro presented the item and directed Staff to make an additional $15 million Discretionary Payment to CalPERS toward the City’s Unfunded Actuarial Liability and create Internal Revenue Service (IRS) Code 115, Trust for Pension and Other Post-Employment Benefits.
The approval also directs the Staff to fund the Pension 115 Trust with an initial $2.5 million and the OPEB 115 Trust with an additional $2.5 million contribution.
“On June 18, 2024, the City Council approved the City’s Annual Budget for the Fiscal Year 2024-2025 and Fiscal Year 2024-2025 included a recommendation to apply a $20 million surplus to pay long-term debt related to pension and Other Post-Employment Benefits,” he said. “The report includes the Staff recommendation on how to allocate the $20 million to pension and OPEB liabilities, optimize savings, and set up a long-term strategy to address future increases in pension and OPOB costs.”
He said the City of Oxnard is contracted with the California Public Employees Retirement System (CalPERS) to supply pension benefits for vested City Employees.
“CalPERS investment…
