SUBJECT/RECOMMENDATION:
Title
Approve pension plan administrative expenditures for fiscal year 2027 totaling not-to-exceed $450,575.
Body
SUMMARY:
The Employees’ Pension Plan does not have a legally required budget. However, all expenditures must be approved by the Trustees. The following are routine administrative expenditures that staff is requesting approval of for administrative efficiency.
The recommended administrative expenditures for fiscal year 2027 reflect a $6,775, or 1.5%, increase over the approved fiscal 2026 expenditures. This net increase results primarily from increased cost of salaries and wages for administrative support and oversight of the pension plan.
Training and travel are the estimated costs of pension training and related travel, including fiduciary training for the Trustees. This is a not-to-exceed amount given uncertainty regarding the number of Trustees that may elect to pursue training.
Expenditures for physicals are per the pension ordinance requirement that new employees must pass a comprehensive physical exam to be accepted into the pension plan.
Reimbursements to the General Fund and Central Insurance Fund are for the cost of oversight and administration of the Plan. The reimbursements are for services provided by Human Resources, Payroll, and Finance personnel, along with related operating expenditures.
The firm of Klausner, Kaufman, Jensen and Levinson currently serves as the Plan’s pension attorneys, while the firm of Banker, Lopez, Gassler currently provides legal services for disability pension claims. Annual attorney fees also include medical bills for medical services related to disability claims.
Money manager, performance measurement consulting, custodial/safekeeping, and actuary fees (other than actuary hourly consulting and special projects) are all governed by contracts separately approved by the Trustees, and are not included in this agenda item total.
APPROPRIATION CODE AND AMOUNT:
6467410-5xxxxx (various pension plan expenditure codes)
STRATEGIC PRIORITY:
Attract and retain top-quality personnel through the maintenance of a competitive compensation and benefits program.