Authorize Administration to prepay the required California Public Employees Retirement System annual unfunded accrued liability contributions for Fiscal Year 2026-2027.

The report from the County of Santa Clara's Finance Agency Administration recommends that the Board of Supervisors authorize a prepayment of the California Public Employees Retirement System (CalPERS) annual unfunded accrued liability contributions for Fiscal Year 2026-2027. The proposed one-time lump sum prepayment is $581.2 million, which would save the County $19.4 million compared to monthly payments. The report outlines the financial implications, reasons for the recommendation, and the funding options available for the prepayment.

Key points

• The recommended action is to prepay CalPERS annual unfunded accrued liability contributions for FY 2026-2027.
• The total prepayment amount is $581.2 million, providing a savings of $19.4 million compared to monthly payments.
• The report indicates that the County has sufficient cash to fund the prepayment without issuing Tax Revenue Anticipation Notes (TRANs).
• The prepayment option is less expensive than monthly payments by $9.1 million based on current investment rates.
• The report states that the recommended action will have no/neutral impact on children, seniors, or sustainability.

Limitations

• The document does not specify the exact date of the Board of Supervisors meeting for the approval.
• The report includes a pending status for the Board approved payment option for FY 2026-27.

Generated for convenience from extracted text using AI. Review the official source document before relying on this summary.