Exhibit CC 05-06-2014 Item #6 Staff Report CC 5/6/2014#6
ADMINISTRATIVE SERVICES DEPARTMENT
CITY HALL
10300 TORRE AVENUE:-CUPERTINO, CA 95014-3255
TELEPHONE:(408)777-3227 www.cupertino.org
CUPERTI�O
ADDENDUM
CITY COUNCIL E57AFF REPORT
Mee iy 6, 2014
Subject
Addendum to the Annual Adoption of City Investment Policy for the Other Post-Employment
Benefits Trust(Item 6)
Recommended Action
Accept Addendum to the Annual Adoption of City Investment Policy for the Other Post-
Employment Benefits Trust(Item 6)
Fiscal Impact
Staff is recommending that that the City's expected return in the Other Post-Employment
Benefits Trust be increased from 6% to 7%. Based on an industry "rule of thumb" the Public
Agency Retirement Services (PARS) projects the City's amount to prefund will be decrease by
approximately $275,000 due to this change. This is a rough projection that does not take into
account changes to retiree health benefits or the payoff of the unfunded liability. A new
actuarial study is expected to be completed in January 2015 that will incorporate the payoff of
the unfunded liability and any changes to retiree:health benefits.