Approval of a Professional Services Agreement with Bartel Associates LLC for Actuarial Services. City of Culver City California Agenda Item Report Meeting Date: 06/28/2010 CITY COUNCIL AGENDA ITEM: Approval of a Professional Services Agreement with Bartel Associates LLC for Actuarial Services. Contact Person/Dept.: Jeff Muir Phone Number: (310) 253 5865 Item Number: C 10 Fiscal Impact: Yes X No General Fund: Yes X No Public Hearing: Action Item: Attachments: X Commission Action Required: Yes No X Date: _______________ Public Notification: (E Mail) Meetings and Agendas City Council (06/23/10); (E Mail) Bartel Associates LLC (06/23/10) Department Approval: Jeff Muir (06/11/10) Chief Financial Officer Approval: Jeff Muir (06/11/10) City Attorney Approval: Carol Schwab (by H. Baker) (06/16/10) City Manager Approval: P. Lamont Ewell (06/23/10) RECOMMENDATION: Staff recommends the City Council approve a professional services agreement with Bartel Associates LLC for Actuarial Services. BACKGROUND: The stock market and poor investment decisions have greatly impacted the value of assets held by CalPERS for the payment of current and future retirement benefits. As of June 8 2010 the fund had $198.3 billion in assets down 24% from a peak of $260.4 billion on Oct. 31 2007. Additionally CalPERS is revisiting current actuarial assumptions about investment earnings (and will likely lower the assumption) and the expected lifespan of annuitants (requiring longer payout timeframes). Given these facts it is expected that CalPERS will need to either (1) increase revenues to the Fund or (2) decrease expenditures (i.e. reduce benefits) from the Fund (or both). Since a reduction in benefit levels is very difficult to implement CalPERS will most likely seek to increase Fund revenues. Revenue can be increased by improving investment earnings above target return rates (which since 2007 has proven difficult to achieve) or (a much more likely scenario) increase employer contribution rates. In ...
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