Title
2025 Q2 OPEB Trust and Pension Trust Investment Report through June 30, 2025
Staffreport
COUNCIL PRIORITY
Fiscal Sustainability and Transparency
SUMMARY
Investment Performance Review of Section 115 OPEB (Other Post-Employment Benefits) Trust and Pension Trust Investment Report for the Quarter Ended June 30, 2025.
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 June 30, 2025.
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 June 2025, assets in the OPEB Trust total $23,450,718, including contributions and investment earnings. The 3-month investment return is 3.93%, and the inception-to-date investment return is 4.82%. 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 June 2025, assets in the Pension Trust totaled $34,662,876, including contributions since the inception of the fund in September 2021, and investment earnings. The 3-month investment return is 5.62%, and the inception-to-date investment return is 3.51%.
Analysis
QUARTERLY INVESTMENT REPORT
PFM Asset Management has prepared the quarterly investment report for the OPEB Trust and Pension Tru...
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