Submitted By: Finance and Administrative Services
Prepared By: Brian Brower, Assistant City Manager
Matthew Schmelzel, Senior Management Analyst
Subject:
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CONSIDERATION OF A RESOLUTION ADOPTING A REVISED PENSION INVESTMENT POLICY NO 202-2
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Summary:
The City Council is being asked to consider a resolution adopting a revised Pension Investment Policy No. 202-2 for the City’s legacy retirement plan, the City of San Clemente Employee Retirement Plan (CSCERP). The proposed revisions update the policy’s governance, investment oversight, and reporting provisions to reflect the plan’s current structure.
Background:
During the February 28, 2023, Long-Term Financial Plan (LTFP) meeting, the City Council approved changes to the Coastal Animal Services Authority (CASA) pension plan. As a result, pension administration services and participation for active CASA employees were transitioned from CSCERP to CalPERS. Since the transition, the remaining CSCERP plan no longer has active participants and consists solely of retired and inactive members. The City Council directed staff to update the Pension Investment Policy to address the changes to the plan and its ongoing administration.
Discussion:
The proposed revised Pension Investment Policy and Procedure incorporates the operational and governance changes resulting from the transition of active CSCERP participants to CalPERS. The proposed revisions address the following areas:
Responsibilities: Clarifies plan oversight and administrative responsibilities, including the role of the Pension Committee in ongoing administrative coordination and the role of the Investment Advisory Committee in investment oversight, investment selection, and periodic policy review. The policy also reaffirms the responsibilities of the investment manager, investment consultant, and custodian.
Reporting: Enhances quarterly reporting requirements to provide greater transparency and oversight of plan investments. Required reportin...
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