HomeMy WebLinkAboutReso - CC - 081-2013RESOLUTION NO- 81-2013
A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE
AGREEMENT WITH THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT
SYSTEM (CalPERS) TO PREFUND RETIREE BENEFITS THROUGH
PARTICIPATIO IN THE CALIFORIA EMPLOYER RETIREE BENEFIT TRUST
PROGRAM (CERBT); DELEGATING AUTHORITY TO REQUEST
DISBURSEMENTS FROM THE TRUST AND OTHER ACTIONS AS NEEDED
TO ADMINISTER THE CITY'S CERBT PLAN
WHEREAS, pursuant to Memorandums of Understanding with each employee
association, the City provides a Retiree Medical Subsidy and Benefit to retirees; and
WHEREAS, such non -pension medical benefits for retirees are commonly known as
"other post -employment benefits" or "OPEBs'. Previously, under Statement 12 of the
Governmental Accounting Standards Board ("GASB"), governments typically followed a
"pay-as-you-go" accounting approach in which the costs of OPPEB benefits.are not reported
on financial statements until after employees retire; and
WHEREAS, in 2004, GASB adopted Statement 45, which requires, financial
statements to report the present value of estimated total OPEB benefits that is attributed to
employee services received in the current year, plus the, cost of amortizing a portion of the
unfunded actuarial accrued liability for previous years, and
WHEREAS, under Government Code Section 53216, the City may create a trust as a
means to prefund and invest OPEB obligations payable in the future; and
WHEREAS, a request for proposals was issued to various vendors to provide
investment services and manage a trust for the Retiree Medical subsidy and Benefit; and
WHEREAS, the City Council has selected the California Employers Benefit Trust
Fund (CERBT), a multi-employer trust established by the California Public Employees
Retirement System (CalPERS) to be that trust; and
WHEREAS, to participate in the CERBT program, CalPERS requires the City
Council to approve the accompanying agreement in a public meeting;
NOW, THEREFORE BE IT RESOLVED, the City Council of the City of
Burlingame does hereby approve and authorize the Mayor to sign the agreement with the
California Public Employees Retirement System (CalPERS) to prefund retiree medical
benefits through participation in the Califomia Employers Benefit Trust Fund (CERBT);
attached hereto as Exhibit A,
BE IT FURTHER RESOLVED, the City Council of the City of Burlingame
does hereby adopt a resolution delegating_ authority to the City Manager and the Finance
Director to request disbursements from the Trust, and take whatever additional actions
are required to administer the City's CERBT Plan, attached hereto as Exhibit B.
PASSED AND ADOPTED, by the City Council of the City of Burlingame of the
State of California on September 16, 2013.
Mn Keighran, May
I, Mary Ellen Kearney, City Clerk of the City of Burlingame do hereby certify
that the foregoing Resolution was introduced at a regular meeting of the City Council on
the 160' day of September, 2013, and was adopted thereafter by the following vote:
AYES: Councilmembers: BAYLOCK, BROWNRIGG, DEAL, KEIGHRAN, NAGEL
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE
Mary Ellen Kerney, City Clerk
EXHIBIT A
CALIFORNIA EMPLOYERS' RETIREE BENEFIT TRUST PROGRAM ("CERBT")
AGREEMENT AND ELECTION
OF
THE CITY OF BURLINGAME
TO PREFUND OTHER POST EMPLOYMENT
BENEFITS THROUGH CaIPERS
WHEREAS (1) Government Code Section 22940 establishes in the State Treasury the
Annuitants' Health Care Coverage Fund for the prefunding of health care coverage for
annuitants (Prefunding Plan); and
WHEREAS (2) The California Public Employees' Retirement System (CaIPERS) Board
of Administration (Board) has sole and exclusive control and power over the
administration and investment of the Prefunding Plan (sometimes also referred to as
CERBT), the purposes of which include, but are not limited to (i) receiving contributions
from participating employers and establishing separate Employer Prefunding Accounts
in the Prefunding Plan for the performance of an essential governmental function (ii)
investing contributed amounts and income thereon, if any, in order to receive yield on
the funds and (iii) disbursing contributed amounts and income thereon, if any, to pay for
costs of administration of the Prefunding Plan and to pay for health care costs or other
post -employment benefits in accordance with the terms of participating employers'
plans; and
WHEREAS (3)
THE CITY OF BURLINGAME
(Employer) desires to participate in the Prefunding Plan upon the terms and conditions
set by the Board and as set forth herein; and
WHEREAS (4) Employer may participate in the Prefunding Plan upon (i) approval by
the Board and (ii) filing a duly adopted and executed Agreement and Election to Prefund
Other Post Employment Benefits (Agreement) as provided in the terms and conditions
of the Agreement; and
WHEREAS (5) The Prefunding Plan is a trust fund that is intended to perform an
essential governmental function within the meaning of Section 115 of the Internal
Revenue Code as an agent multiple -employer plan as defined in Governmental
Accounting Standards Board (GASB) Statement No. 43 consisting of an aggregation of
single -employer plans, with pooled administrative and investment functions;
Rev 1/2/2013
NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY MAKES THE
FOLLOWING REPRESENTATION AND WARRANTY AND THAT THE BOARD AND
EMPLOYER AGREE TO THE FOLLOWING TERMS AND CONDITIONS:
A. Representation and Warranty
Employer represents and warrants that it is a political subdivision of the State of
California or an entity whose income is excluded from gross income under Section 115
(1) of the Internal Revenue Code.
B. Adoption and Approval of the Agreement; Effective Date; Amendment
(1) Employer's governing body shall elect to participate in the Prefunding Plan by
adopting this Agreement and filing with the CalPERS Board a true and correct original
or certified copy of this Agreement as follows:
Filing by mail, send to: CalPERS
Affiliate Program Services Division
CERBT (OPEB)
P.O. Box 1494
Filing in person, deliver to:
Sacramento, CA 95812-1494
CalPERS Mailroom
Affiliate Program Services Division
CERBT (OPEB)
400 Q Street
Sacramento, CA 95811
(2) Upon receipt of the executed Agreement, and after approval by the Board, the
Board shall fix an effective date and shall promptly notify Employer of the effective date
of the Agreement.
(3) The terms of this Agreement may be amended only in writing upon the agreement
of both CalPERS and Employer, except as otherwise provided herein. Any such
amendment or modification to this Agreement shall be adopted and executed in the
same manner as required for the Agreement. Upon receipt of the executed amendment
or modification, the Board shall fix the effective date of the amendment or modification.
(4) The Board shall institute such procedures and processes as it deems necessary to
administer the Prefunding Plan, to carry out the purposes of this Agreement, and to
maintain the tax exempt status of the Prefunding Plan. Employer agrees to follow such
procedures and processes.
Rev 1/2/2013 2
C. Other Post Employment Benefits (OPEB) Cost Reports and Employer Contributions
(1) Employer shall provide to the Board an OPEB cost report on the basis of the
actuarial assumptions and methods prescribed by the Board. Such report shall be for
the Board's use in financial reporting, and shall be prepared at least as often as the
minimum frequency required by GASB 43. This OPEB cost report may be prepared as
an actuarial valuation report or, if the employer is qualified under GASB 45 and 57, may
be prepared as an Alternative Measurement Method (AMM) report.
(a) Unless qualified under GASB 45 and 57 to provide an AMM report,
Employer shall provide to the Board an actuarial valuation report. Such
report shall be for the Board's use in financial reporting, and shall be
prepared at least as often as the minimum frequency required by GASB
43 and 57, and shall be:
1) prepared and signed by a Fellow or Associate of the Society of
Actuaries who is also a Member of the American Academy of
Actuaries or a person with equivalent qualifications acceptable to the
Board;
2) prepared in accordance with generally accepted actuarial practice and
GASB 43, 45 and 57; and,
3) provided to the Board prior to the Board's acceptance of contributions
for the valuation period or as otherwise required by the Board.
(b) If qualified under GASB 45 and 57, Employer may provide to the Board an
AMM report. Such report shall be for the Board's use in financial
reporting, shall be prepared at least as often as the minimum frequency
required by GASB 43 and 57, and shall be:
1) affirmed by Employer's external auditor, or by a Fellow or Associate
of the Society of Actuaries who is also a Member of the American
Academy of Actuaries or a person with equivalent qualifications
acceptable to the Board, to be consistent with the AMM process
described in GASB 45;
2) prepared in accordance with GASB 43, 45, and 57; and,
3) provided to the Board prior to the Board's acceptance of
contributions for the valuation period or as otherwise required by
the Board.
(2) The Board may reject any OPEB cost report submitted to it, but shall not
unreasonably do so. In the event that the Board determines, in its sole discretion, that
the OPEB cost report is not suitable for use in the Board's financial statements or if
Employer fails to provide a required OPEB cost report, the Board may obtain, at
Rev 1/2/2013
Employer's expense, an OPEB cost report that meets the Board's financial reporting
needs. The Board may recover from Employer the cost of obtaining such OPEB cost
report by billing and collecting from Employer or by deducting the amount from
Employer's account in the Prefunding Plan.
(3) Employer shall notify the Board of the amount and time of contributions which
contributions shall be made in the manner established by the Board.
(4) Employer contributions to the Prefunding Plan may be limited to the amount
necessary to fully fund Employer's actuarial present value of total projected benefits, as
supported by the OPEB cost report acceptable to the Board. As used throughout this
document, the meaning of the term "actuarial present value of total projected benefits"
is as defined in GASB Statement No. 45. If Employer's contribution causes its assets in
the Prefunding Plan to exceed the amount required to fully fund the actuarial present
value of total projected benefits, the Board may refuse to accept the contribution.
(5) No contributions are required. If an employer elects to contribute then the
contribution amount should not be less than $5000 or the employer's annual required
contribution (ARC), whichever amount is lower. Contributions can be made at any time
following the seventh day after the effective date of the Agreement provided that
Employer has first complied with the requirements of Paragraph C.
D. Administration of Accounts, Investments, Allocation of Income
(1) The Board has established the Prefunding Plan as an agent plan consisting of an
aggregation of single -employer plans, with pooled administrative and investment
functions, under the terms of which separate accounts will be maintained for each
employer so that Employer's assets will provide benefits only under employer's plan.
(2) All Employer contributions and assets attributable to Employer contributions shall be
separately accounted for in the Prefunding Plan (Employer's Prefunding Account).
(3) Employer's Prefunding Account assets may be aggregated with prefunding account
assets of other employers and may be co -invested by the Board in any asset classes
appropriate for a Section 115 Trust.
(4) The Board may deduct the costs of administration of the Prefunding Plan from the
investment income or Employer's Prefunding Account in a manner determined by the
Board.
(5) Investment income shall be allocated among employers and posted to Employer's
Prefunding Account as determined by the Board but no less frequently than annually.
(6) If Employer's assets in the Prefunding Plan exceed the amount required to fully fund
the actuarial present value of total projected benefits, the Board, in compliance with
applicable accounting and legal requirements, may return such excess to Employer.
Rev 1/2/2013 4
E. Reports and Statements
(1) Employer shall submit with each contribution a contribution report in the form and
containing the information prescribed by the Board.
(2) The Board shall prepare and provide a statement of Employer's Prefunding Account
at least annually reflecting the balance in Employer's Prefunding Account, contributions
made during the period and income allocated during the period, and such other
information as the Board determines.
F. Disbursements
(1) Employer may receive disbursements not to exceed the annual premium and other
costs of post -employment healthcare benefits and other post -employment benefits as
defined in GASB 43.
(2) Employer shall notify CaIPERS in writing in the manner specified by CaIPERS of the
persons authorized to request disbursements from the Prefunding Plan on behalf of
Employer.
(3) Employer's request for disbursement shall be in writing signed by Employer's
authorized representative, in accordance with procedures established by the Board.
The Board may require that Employer certify or otherwise establish that the monies will
be used for the purposes of the Prefunding Plan.
(4) Requests for disbursements that satisfy the requirements of paragraphs (2) and (3)
will be processed monthly.
(5) CalPERS shall not be liable for amounts disbursed in error if it has acted upon the
written instruction of an individual authorized by Employer to request disbursements. In
the event of any other erroneous disbursement, the extent of CalPERS' liability shall be
the actual dollar amount of the disbursement, plus interest at the actual earnings rate
but not less than zero.
(6) No disbursement shall be made from the Prefunding Plan which exceeds the
balance in Employer's Prefunding Account.
G. Costs of Administration
Employer shall pay its share of the costs of administration of the Prefunding Plan, as
determined by the Board.
H. Termination of Employer Participation in Prefunding Plan
(1) The Board may terminate Employer's participation in the Prefunding Plan if:
Rev 1/2/2013 5
(a) Employer gives written notice to the Board of its election to terminate;
(b) The Board finds that Employer fails to satisfy the terms and conditions of
this Agreement or of the Board's rules or regulations.
(2) If Employer's participation in the Prefunding Plan terminates for any of the foregoing
reasons, all assets in Employer's Prefunding Account shall remain in the Prefunding
Plan, except as otherwise provided below, and shall continue to be invested and accrue
income as provided in Paragraph D.
(3) After Employer's participation in the Prefunding Plan terminates, Employer may not
make contributions to the Prefunding Plan.
(4) After Employer's participation in the Prefunding Plan terminates, disbursements
from Employer's Prefunding Account may continue upon Employer's instruction or
otherwise in accordance with the terms of this Agreement.
(5) After thirty-six (36) months have elapsed from the effective date of this Agreement
or at such earlier date as may be approved by the Board in its sole discretion:
(a) Employer may request a trustee to trustee transfer of the assets in
Employer's Prefunding Account. Upon satisfactory showing to the Board
that the transfer will satisfy applicable requirements of the Internal
Revenue Code and the Board's fiduciary duties, then the Board shall
effect the transfer within one hundred twenty (120) days. The amount to
be transferred shall be the amount in the Employer's Prefunding Account
as of the disbursement date and shall include investment earnings up to
the investment earnings allocation date immediately preceding the
disbursement date. In no event shall the investment earnings allocation
date precede the transfer by more than 120 days.
(b) Employer may request a disbursement of the assets in Employer's
Prefunding Account. Upon satisfactory showing to the Board that all of
Employer's obligations for payment of post employment health care
benefits and other post employment benefits and reasonable
administrative costs of the Board have been satisfied, then the Board shall
effect the disbursement within one hundred twenty (120) days. The
amount to be disbursed shall be the amount in the Employer's Prefunding
Account as of the disbursement date and shall include investment
earnings up to the investment earnings allocation date immediately
preceding the disbursement date. In no event shall the investment
earnings allocation date precede the disbursement by more than 120
days.
(6) After Employer's participation in the Prefunding Plan terminates and at such time
that no assets remain in Employer's Prefunding Account, this Agreement shall
terminate.
Rev 1/2/2013 6
(7) If, for any reason, the Board terminates the Prefunding Plan, the assets in
Employer's Prefunding Account shall be paid to Employer after retention of (i) amounts
sufficient to pay post -employment health care benefits and other post -employment
benefits to annuitants for current and future annuitants described by the employer's
current substantive plan (as defined in GASB 43), and (ii) amounts sufficient to pay
reasonable administrative costs of the Board.
(8) If Employer ceases to exist but Employer's Prefunding Plan continues to exist and
no provision has been made by Employer for ongoing payments to pay post -
employment health care benefits and other post -employment benefits to annuitants for
current and future annuitants, the Board is authorized to and shall appoint a third party
administrator to carry out Employer's Prefunding Plan. Any and all costs associated
with such appointment shall be paid from the assets attributable to contributions by
Employer.
(9) If Employer should breach the representation and warranty set forth in Paragraph
A., the Board shall take whatever action it deems necessary to preserve the tax-exempt
status of the Prefunding Plan.
I. General Provisions
(1) Books and Records.
Employer shall keep accurate books and records connected with the performance of
this Agreement. Employer shall ensure that books and records of subcontractors,
suppliers, and other providers shall also be accurately maintained. Such books and
records shall be kept in a secure location at the Employer's office(s) and shall be
available for inspection and copying by CalPERS and its representatives.
(2) Audit.
(a) During and for three years after the term of this Agreement, Employer
shall permit the Bureau of State Audits, CaIPERS, and its authorized
representatives, and such consultants and specialists as needed, at al
reasonable times during normal business hours to inspect and copy, at the
expense of CalPERS, books and records of Employer relating to ita
performance of this Agreement.
(b) Employer shall be subject to examination and audit by the Bureau of State
Audits, CaIPERS, and its authorized representatives, and such
consultants and specialists as needed, during the term of this Agreement
and for three years after final payment under this Agreement. Any
examination or audit shall be confined to those matters connected with the
performance of this Agreement, including, but not limited to, the costs of
administering this Agreement. Employer shall cooperate fully with the
Bureau of State Audits, CaIPERS, and its authorized representatives, and
such consultants and specialists as needed, in connection with any
Rev 1/2/2013 7
examination or audit. All adjustments, payments, and/or reimbursements
determined to be necessary by any examination or audit shall be made
promptly by the appropriate party.
(3) Notice.
(a) Any notice, approval, or other communication required or permitted under
this Agreement will be given in the English language and will be deemed
received as follows:
Personal delivery. When personally delivered to the recipient.
Notice is effective on delivery.
2. First Class Mail. When mailed first class to the last address of the
recipient known to the party giving notice. Notice is effective three
delivery days after deposit in a United States Postal Service office
or mailbox.
3. Certified mail. When mailed certified mail, return receipt requested.
Notice is effective on receipt, if delivery is confirmed by a return
receipt.
4. Overnight Delivery. When delivered by an overnight delivery
service, charges prepaid or charged to the sender's account, Notice
is effective on delivery, if delivery is confirmed by the delivery
service.
5. Telex or Facsimile Transmission. When sent by telex or fax to the
last telex or fax number of the recipient known to the party giving
notice. Notice is effective on receipt, provided that (i) a duplicate
copy of the notice is promptly given by first-class or certified mail or
by overnight delivery, or (ii) the receiving party delivers a written
confirmation of receipt. Any notice given by telex or fax shall be
deemed received on the next business day if it is received after
5:00 p.m. (recipient's time) or on a nonbusiness day.
6. E-mail transmission. When sent by e-mail using software that
provides unmodifiable proof (i) that the message was sent, (ii) that
the message was delivered to the recipient's information processing
system, and (iii) of the time and date the message was delivered to
the recipient along with a verifiable electronic record of the exact
content of the message sent.
Addresses for the purpose of giving notice are as shown in Paragraph B.(1) of this
Agreement.
Rev 1/2/2013
(b) Any correctly addressed notice that is refused, unclaimed, or
undeliverable because of an act or omission of the party to be notified
shall be deemed effective as of the first date that said notice was refused,
unclaimed, or deemed undeliverable by the postal authorities, messenger
or overnight delivery service.
(c) Any party may change its address, telex, fax number, or e-mail address by
giving the other party notice of the change in any manner permitted by this
Agreement.
(d) All notices, requests, demands, amendments, modifications or other
communications under this Agreement shall be in writing. Notice shall be
sufficient for all such purposes if personally delivered, sent by first class,
registered or certified mail, return receipt requested, delivery by courier
with receipt of delivery, facsimile transmission with written confirmation of
receipt by recipient, or e-mail delivery with verifiable and unmodifiable
proof of content and time and date of sending by sender and delivery to
recipient. Notice is effective on confirmed receipt by recipient or 3
business days after sending, whichever is sooner.
(4) Modification
This Agreement may be supplemented, amended, or modified only by the mutual
agreement of the parties. No supplement, amendment, or modification of this
Agreement shall be binding unless it is in writing and signed by the party to be charged.
(5) Survival
All representations, warranties, and covenants contained in this Agreement, or in any
instrument, certificate, exhibit, or other writing intended by the parties to be a part of
their Agreement shall survive the termination of this Agreement until such time as all
amounts in Employer's Prefunding Account have been disbursed.
(6) Waiver
No waiver of a breach, failure of any condition, or any right or remedy contained in or
granted by the provisions of this Agreement shall be effective unless it is in writing anc
signed by the party waiving the breach, failure, right, or remedy. No waiver of any
breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure,
right, or remedy, whether or not similar, nor shall any waiver constitute a continuing
waiver unless the writing so specifies.
Rev 1/2/2073
(7) Necessary Acts, Further Assurances
The parties shall at their own cost and expense execute and deliver such further
documents and instruments and shall take such other actions as may be reasonably
required or appropriate to evidence or carry out the intent and purposes of this
Agreement.
A majority vote of Employer's Governing Body at a public meeting held on the 16th
day of the month of September in the year 2013 , authorized entering
into this Agreement.
Signature of the Presiding Officer:
Printed Name of the Presiding Officer: Ann Keighran, Mayor
Name of Governing Body: City Council of the City of Burlingame
Name of Employer:
Date:
City of Burlingame
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
RAND ANDERSON
AFFILIATE PROGRAM SERVICES DIVISION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
To be completed by CalPERS
The effective date of this Agreement is:
Rev 1/2/2013 10
EXHIBIT B
'�',,,' DELEGATION OF AUTHORITY
- TO REQUEST DISBURSEMENTS
CaIPERS
RESOLUTION
OF THE
City Council of the City of Burlingame
(GOVERNING BODY)
OF THE
City of Burlingame
(NAME OF EMPLOYER)
The City Council of the City of Burlingame delegates to the incumbents
(GOVERNING BODY)
in the positions of City Manager and
(TITLE)
Finance Director
(TITLE)
(TITLE)
and/or
authority to request on
behalf of the Employer disbursements from the Other Post Employment Prefunding
Plan and to certify as to the purpose for which the disburse funds will be used
By Ann Keighr n
Title Mayor
Witness
Date
OPEB Delegation of Authority (1/13)
CERTIFICATION OF OPEB FUNDING POLICY &
GASB 43/45 REPORTING COMPLIANCE
SECTION I: Asset Allocation Strategy and Discount Rate Selection
I certify that
1. My agency chooses the following asset allocation strategy
Select one Asset Allocation Strategy and the corresponding Discount Rate
Asset Allocation
gimt—ew
Discount Rate with NO
MFAD adjustment
Strategy 1
7.61%
❑ Strategy 2
7.06%
❑ Strategy 3
6.39%
2. My agency elects to use a Margin for Adverse Deviation (MFAD)
❑ No S?" Yes
*If "Yes", then identify that MFAD percentage here: 0.36 %
3. The discount rate net of MFAD is 7.25 %
SECTION II: ARC Fundina
As the employer, I certify that our funding policy is to contribute consistently an
amount that is equal to (select one):
(Valuation date should correspond with Item No. 1.0 in Summary of Actuarial Information)
Full ARC Funding:
V'100 % of the ARC as determined in our OPEB valuation (or AMM) dated January 1
2013, which used an average actuarial Discount Rate of "7 . 2S
Partial ARC Funding:
❑ % of the ARC as determined in our OPEB valuation (or AMM if it applies)
dated , 20 which used a blended actuarial Discount Rate of %
where the base short-term investment Discount Rate is %
Rev 04/21/2011 Page 1 of 4
CERTIFICATION OF OPEB FUNDING POLICY &
GASB 43/45 REPORTING COMPLIANCE
❑ We will contribute to the trust using an approach not directly related to the ARC (In
the space provided below, please describe your funding approach and how the
approach relates to the average discount rate assumption made by your actuary in
the OPEB valuation (or AMM if it applies) dated , 20 which used a
blended actuarial Discount Rate of % where the base short-term investment
Discount Rate is % ):
SECTION III: ARC Contribution Method
We plan to contribute toward the ARC in the following manner (select one):
❑ Contribute our full ARC payments to the trust and seek reimbursements for Pay -go
costs
❑vt'Contribute our ARC payments to the trust net of Pay -go costs and not seek
reimbursements (ARC minus Pay -go = Trust Contribution)
❑ Other (Please describe)
SECTION IV: Years of ARC Coveraae
This OPEB valuation provides ARC amounts for the following periods:
(ARC dates should correspond with Item No. 10.0 in Summary of Actuarial Information)
First Year: From July 1 2013 through June 30, 2014
Second Year: From July 1, 2014 through June 30, 2015
The California Employers' Retiree Benefit Trust (CERBT) fund plan includes more than 200
members. We understand that, under GASB 43, paragraph 33, as an employee
participating in the CalPERS CERBT, we must obtain an actuarial valuation (or AMM if ii
applies) on at least a biennial basis.
Rev 04/21/2011 Page 2 of 4
CERTIFICATION OF OPEB FUNDING POLICY &
GASB 43/45 REPORTING COMPLIANCE
We understand that we will be asked to provide accounting information to CalPERS as
required in order to facilitate CalPERS compliance with GASB 43 reporting requirements,
and we agree to make any information requested available to CalPERS on a timely basis.
Our contact information is noted below.
We understand that CalPERS will provide us with our Statement of Plan Net Assets and
our Statement of Changes in Plan Net Assets, which can be used to prepare our GASB 4E
reporting. CalPERS will report aggregated GASB 43 information pertaining to the Fundec
Status and Funding Progress.
1, 2013
'EB Valuation
AMM it it applies)
Carol Augustine, Finance Director
Printed Name and Title of Person Sianir
9'/#/2013
-Pmrz
Carol Augustine, Finance Director
Designated Employer Contact Name for GASB Reporting
(650) 558-7222 CAugustine@Burlingame.org
Phone # Email Address
Instructions to complete the form
Rev 04/21/2011 Page 3 of 4
CERTIFICATION OF OPEB FUNDING POLICY &
GASB 43/45 REPORTING COMPLIANCE
SECTION I: Asset allocation Strategy and Discount Rate Selection
Check the box next to the Asset Allocation Strategy on which you have based your
OPEB actuarial valuation or Alternative Measurement Method (AMM) cost report.
Each strategy has a different assumed Discount Rate and risk profile. Your CERBT
assets will be invested using the Asset Allocation Strategy indicated here.
Check the box to show whether your actuary applied a Margin for Adverse Deviation
the expected assumed discount rate for your portfolio. If reducing the expected rate
of return for a Margin for Adverse Deviation please indicate the percentage
adjustment for the Margin for Adverse Deviation in the location indicated and then
indicate the appropriate net rate of return resulting when the full rate of return has
been reduced by a selected by your consulting actuary.
The choices you check off on this form should match those used by your
actuary in the OPEB valuation.
SECTION II: ARC Funding
• If you are fully funding, check the first box indicating the 100% funding, the
applicable Discount Rate, and the valuation date.
• If you are funding at less than 100%, check the second box to indicate the
percentage of funding [trust contributions plus paygo (and Implicit Rate
Subsidy if applicable) divided by ARC), the valuation date, the Discount Rate,
and the Base rate used to blend.
• If you are funding at less than 100% and your contributions are not tied
specifically to the ARC, then indicate how you expect to contribute. For
example, if you intend to make unreimbursed pay -go payments plus a fixed
dollar amount to the trust, then describe this in the space provided.
SECTION III: ARC Contribution Method
Here we ask you to indicate how you expect to make contributions to the trust: Full ARC
with reimbursements, ARC net of paygo, or something else (please describe).
SECTION IV: Years of ARC Coverage
Generally, your OPEB valuation will provide two years of ARC coverage. Please identify
the specific periods to which the ARC applies.
Rev 04/21/2011 Page 4 of 4