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The following are the policy guidelines under which the City may withdraw from the <br /> PARS Trust to help make pension contributions: <br /> 1. Annual CaIPERS employer pension contribution rate increase (in dollars) is <br /> greater than the growth rate (in dollars) of the City's General Fund. <br /> ✓ Example: the pension contribution increases by $2 million from the previous <br /> year while General Fund growth is $1.5 million. <br /> 2. The General Fund has a structural deficit that needs to be addressed (i.e. non- <br /> discretionary expenditures exceed revenues). <br /> 3. General Fund reserves have been used and need to be replenished in order to <br /> maintain a reserve equal to 20 percent of General Fund expenditures. <br /> 4. Paying off specific pension liabilities that will result in interest savings greater <br /> than interest earnings on the Trust Fund. <br />