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File #: 18-618    Version: 1 Name:
Type: Consent Item Status: Passed
File created: 11/26/2018 In control: City Council/Public Finance and Economic Development Authority/Parking Authority
On agenda: 1/7/2019 Final action: 1/7/2019
Title: SUBJECT: Adoption of Resolution Authorizing the Adoption of the Section 115 Post Employment Benefit Trust Administered by Public Agency Retirement Services (PARS) to Fund the City's Pension Benefits and Approval of the Associated Agreement with Phase II Systems REPORT IN BRIEF Considers adopting a Resolution authorizing the adoption and operation of the PARS Post-Employment Benefits Trust Program to be used to pre-fund pension obligations. Also requests approval of a Professional Services Agreement Phase II Systems, doing business as Public Agency Retirement Services. RECOMMENDATION City Council - Adopt a motion: A. Adopting Resolution 2019-04, A Resolution of the City Council of the City of Merced, California, Approving the Adoption of the Public Agencies Post-Employment Benefits Trust Administered by Public Agency Retirement Services (PARS); and, B. Approving the agreement for professional services with Phase II Systems, doing business as "Public Agency Retirement Services"...
Attachments: 1. Resolution, 2. Professional Services Agreement

Report Prepared by: Venus Rodriguez, Finance Officer

Title
SUBJECT: Adoption of Resolution Authorizing the Adoption of the Section 115 Post Employment Benefit Trust Administered by Public Agency Retirement Services (PARS) to Fund the City's Pension Benefits and Approval of the Associated Agreement with Phase II Systems

REPORT IN BRIEF
Considers adopting a Resolution authorizing the adoption and operation of the PARS Post-Employment Benefits Trust Program to be used to pre-fund pension obligations. Also requests approval of a Professional Services Agreement Phase II Systems, doing business as Public Agency Retirement Services.

RECOMMENDATION
City Council - Adopt a motion:

A. Adopting Resolution 2019-04, A Resolution of the City Council of the City of Merced, California, Approving the Adoption of the Public Agencies Post-Employment Benefits Trust Administered by Public Agency Retirement Services (PARS); and,

B. Approving the agreement for professional services with Phase II Systems, doing business as "Public Agency Retirement Services" and "PARS" for administrative services as Trust Administrator for pre-funding pension obligations; and,

C. Authorizing the City Manager or the Assistant City Manager to execute the necessary documents.

Body
ALTERNATIVES
1. Adopt as recommended by staff; or
2. Refer back to staff with specific direction, or
3. Deny

AUTHORITY
City of Merced Charter Article VI Section 604-Finance Officer-Power and duties

CITY COUNCIL PRIORITIES
As provided for in the 2018-19 Adopted Budget to mitigate the increasing pension obligation and unfunded accrued liability.

DISCUSSION
In 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68, Accounting and Financial Reporting for Pensions. GASB 68 requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a net pension liability or unfunded accrued liability (UAL) on their balance sheet. This is the difference betwee...

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