The City of Rancho Palos Verdes contracts with the California Public Employees Retirement System (CalPERS) to provide retirement benefits to all full-time employees. CalPERS is a benefit retirement plan, which provides benefits based on an employee's years of service, age and compensation.
CALPERS Actuarial Valuations
These reports provide information regarding the City's pension contributions for all three (3) tiers and the funded status of the pension plan. The main purpose of the actuarial valuation is to determine the appropriate member and employer contribution rates needed to pay for the guaranteed basic pension benefit in the future. The reports includes the liabilities of the plan (the cost of paying current and future pension benefits) and compares them to the assets (the contributions and investment earnings in the pension fund).
This pronouncement, which took effect in FY14-15, is to improve accounting and financial reporting by state and local governments for pensions. State and local agencies are now required to recognize applicable pension amounts as a liability in their financial statements (Balance Sheet) and also provide extensive footnote disclosures and additional supplementary schedules related to their pension plan.