Title
CY 2026 Q3 OPEB Trust and Pension Trust Investment Report through September 30, 2026
Staffreport
SUMMARY
Investment Performance Review of Section 115 OPEB (Other Post-Employment Benefits) Trust and Pension Trust Investment Report for the Quarter Ended September 30, 2026.
RECOMMENDATIONS
Staff recommends the City Council Finance Committee review and receive the presentation of the Section 115 OPEB Trust and Pension Trust Investment Report for the quarter ended September 30, 2026.
BACKGROUND
OPEB Trust
In 2008-2009, the City established the Section 115 OPEB Trust with Public Agency Retirement Services (PARS). The Trust’s primary purpose is to accumulate resources to generate investment income for funding the City’s future OPEB obligations. The trust account was set up with an initial contribution of $500,000, and the City has been proactively funding these future liabilities. Since it was established, the City Council has authorized various contributions into the trust. At the end of September 2026, assets in the OPEB Trust total $25,036,657 including investment earnings. The 3-month investment return is negative 2.27%, and the inception-to-date investment return is 4.92%. Due to a change in account status, inception of the fund is measured with a start date of August 1, 2015.
Pension Trust
In 2021, the City Council established the Section 115 Pension Trust with PARS. The goal is to set aside and accumulate investment earnings to be strategically used to offset unfunded CalPERS pension liabilities. At the end of September 2026, assets in the Pension Trust totaled $39,056,225, including contributions since the inception of the fund in September 2021, and investment earnings. The 3-month investment return is negative 1.55%, and the inception-to-date investment return is 4.89%.
Analysis
QUARTERLY INVESTMENT REPORT
PFM Asset Management has prepared the quarterly investment report for the OPEB Trust and Pension Trust for the period ending September 30,...
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