Oxnard—The City Council approved implementing its Fiscal Year 2024-2025 payment for Long-Term Debt Reduction for pension and OPEB benefits during its Tuesday, September 3, meeting.
CHIEF Financial Officer Javier Chagoyan-Lazaro presented the payment and directed the Staff to make an additional $15 million discretionary payment to CalPERS toward the City’s Unfunded Actuarial Liability (UAL).
He also directed the Staff to create one Internal Revenue Service (IRS) code, Section 115 Trust for pension, and one for Other Post-Employment Benefits (OPEB), and to fund the Pension 115 Trust with the initial amount of $2.5 million, and fund the OPEB 115 Trust with a $2.5 million initial contribution.
“On June 19, 2024, the City Council approved its annual budget for the Fiscal year 2024-2025, which included a recommendation to apply the $20 million surplus to pay long-term debt related to pension and Other Post-Employments Benefits,” Chagoyan-Lazaro said. “The report includes staff recommendations on how to allocate $20 million to pension and other OPEB liabilities, optimize savings, and hopes to set up a longterm strategy to address future increases in pension and OPEB costs.”
He said the City of Oxnard is contracted with the California Public Employees Retirements System (CalPERS) to provide pension…
