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. <br /> <br /> <br />Consulting Services Agreement between City of San Leandro and Foster & Foster 12/12/2022 <br />Actuarial Consulting Services for CalPERS Analysis Exhibit A – Page 1 of 1 <br />EXHIBIT A <br /> <br />SCOPE OF SERVICES <br /> <br />Recently released CalPERS June 30, 2021, actuarial valuation reports provide contribution projections <br />through 2028/29, including the impact of PEPRA new hires. Consultant’s analysis will provide City <br />contribution rate and plan funded status projections over a longer period (though 2032/33 and beyond), <br />including the impact of these changes and will utilize stochastic investment return model to show likely <br />ranges of contributions. The Consultant’s report will include the impact of: <br /> Actual CalPERS return for FY2022 <br /> Risk mitigation, <br /> Lower expected investment returns over the next 10 years, <br /> Investment return volatility, based on model developed by Foster & Foster, including likely ranges <br />for future contributions and funded status, <br /> The newly adopted asset allocation. <br /> <br />The report will also include a brief summary of historical CalPERS actuarial valuation reports, including: <br /> Summary of historical information <br /> Participant demographics, contribution rates, investment returns, and funded status <br /> Analysis of change in required contributions for next year. <br /> <br />Consultant will also provide analysis on how the City’s Section 115 Supplemental trust with PARS can be <br />used for rate stabilization, including comparison of sending additional discretionary payments (ADPs) to <br />CalPERS vs. to the Supplemental trust. Consultant’s analysis will include long-term projections of CalPERS <br />contributions under both scenarios. For payments to CalPERS, Consultant will provide 2 basic options (long <br />vs. short base) to apply the ADPs to reduce future contributions. Consultant’s 115 trust analysis will analyze <br />the City’s options with regard to the CalPERS unfunded liability, including: <br /> Continue making required CalPERS payments as billed. The analysis will include a projection of how <br />funds in the Supplemental trust can be used to mitigate future CalPERS rate increases assuming no <br />further Supplemental trust contributions. <br /> Compare savings (and present value of savings) and budget flexibility/restrictions of <br />o making ADP’s directly to CalPERS, including present value savings of paying off short and long-period <br />amortization bases <br />o making additional contributions to the Supplemental trust to mitigate future CalPERS rate increases, and/or to <br />eventually pay down the unfunded liability. <br /> <br />DocuSign Envelope ID: 1BEB6A68-E2EB-4930-BE17-88C23D3970B2