RES 2024070 - Laserfiche WebLink

The City of Pleasanton "City" has established a section 115 Trust known as the City of Pleasanton Section 115 Pension Trust (the "Trust"). This Trust will be used to invest monies to fund the City's unfunded liability in the California Public Employee Retirement System ("CaIPERS"). The City has developed two sub-accounts under this Trust. The sub-account for this portfolio is named the 'Conservative" account. It is seen as the first pool of assets that would be used to address pension expenses, and based on this assumption, the perceived time horizon is shorter. The City of Pleasanton City Council ("Council") has given authority to the Plan Administrator to establish and adopt the investment Policy Statement("Policy Statement") for the following purposes. Pu rpose Funds set aside in the Section 115 Trust are safeguarded from diversion to other budgetary uses and generally may be invested in a broader range of securities than would typically be permitted for public agency operating funds,potentially increasing earnings.Therefore,higher returns can improve the City's ability to meet future pension obligations. An additional advantage of holding funds in the Trust rather than contributing an equivalent amount directly to CaIPERS is that the City retains control over the timing and amount of disbursements from the Trust. Retaining control of the funds in the Trust provides the flexibility to meet current or accrued liabilities based on the financial circumstances at that time. The City also controls the timing of contributions to the Trust. The main investment objective of the Trust is to achieve long-term growth of Trust assets by maximizing long-term rate of return on investments and minimizing risk of loss. The purpose of this Policy Statement is to achieve the following: 1. Document investment objectives, performance expectations, and investment guidelines for Fund assets. 2. Establish an appropriate investment strategy for managing all Trust assets, including an investment time horizon, risk tolerance ranges, and asset allocation to provide sufficient diversification and overall return over the long-term time horizon of the Trust. 3. Establish investment guidelines to control overall risk and liquidity. 4. Establish periodic performance reporting requirements to monitor investment results and confirm that the investment policy is being followed. 5. Comply with fiduciary, prudence, due diligence, and legal requirements for Trust assets. Investment Authority The City has appointed the Plan Administrator (the "Administrator") to oversee certain policies and procedures related to the operation and administration of the Trust. The Administrator will have authority to implement the investment policy and guidelines in the best interest of the Trust to best satisfy the purposes of the Trust. In implementing this Policy Statement, the Administrator believes it may delegate certain functions to: 3