HomeMy WebLinkAboutReso 1981-10632
RESOLUTION NO.
10632
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA SUPPORTING AN INVESTIGATION AND ANALYSIS OF
THE INVESTtlliNT POLICIES OF THE CALIFOillJIA PUBLIC
EMPLOYEES' RETIREtlliNT SYSTEM IN AN EFFORT TO INCREASE
THE RATE OF RETURN
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, the interest assumption rate of the Public
Employees' Retirement System, i.e. that interest credited to
member employee and employer retirement earnings, is presently
6.75%, and
WHEREAS, the computed rate of interest for the system for
the fiscal year ending June 30, 1980 was only 7.91%, and
WHEREAS, during the same period, short term commercial paper,
Treasury Notes and T-Bills were yielding interest rates ranging from
12% to 20%, and
WHEREAS, 49% of the Public Employees' Retirement System
$12.85 billion investment portfolio is in bills yielding only 3% or
4%, and
WHEREAS, the ultra-conservative nature of the investment
policies of the PERS imposes a great burden and penalty on both employee
and employer members and also necessitates that employers make additional
contributions to compensate for any deficit created by inadequate in-
vestment returns.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Chula Vista strongly recommends the State Legislature review
and analyze the investment policies of the Public Employees' Retirement
System to enhance investment rates to realistically review current
market situations.
BE IT FURTHER RESOLVED that the City Council does hereby go
on record as supporting Resolution No. 81-213 of the City of Daly City
supporting such an investigation and analysis of the investment policies
of the California Public Employees' Retirement System in an effort to
increase rates of return and urges the League of California Cities to
strongly support said effort.
Presented by
Approved as to form by
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'Gordon K. Grant, Director of
Finance
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----....
George D. Lindberg, City Attorney
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 22nd
19 81, by the following vote, to_it:
AYES:
NAYES:
AfllSTAIN:
ASSENT:
day of
September
Councilmen : Gillow . Cox. Scott, ~1cCandl i ss
Councilmen : None
Councilmen : None
Councilmen : Hyde
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MAYOR PRO TEMPORE
STATE OF CALIFORNIA )
CqUNTY OF SAN DIEGO ) s s.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 10632
,and that the same has not been amended or repealed.
D~TED_
cd-66o - MpT
(seal)
City Clerk