Page 91 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 8. Employee Pension Plan

a. General Information about the Pension Plans

Plan Descriptions – All qualified permanent and probationary employees are eligible to
participate in the City’s Miscellaneous Plan, an agent multiple-employer defined benefit
pension plan administered by the California Public Employees’ Retirement System
(CalPERS), which acts as common investment and administrative agent for its participating
member employers. Benefit provisions under the Plan are established by State statute and
City resolution. CalPERS issues publicly available reports that include a full description of
the pension plans regarding benefit provisions, assumptions and membership information
that can be found on CalPERS website.

In November 2022, the City established a post-employment benefits trust to begin funding
the City’s unfunded liability through the Public Agency Retirement Services (PARS). The
program is a tax-exempt trust performing an essential governmental function within the
meaning of Section 115 of the Internal Revenue Code, along with its associated Regulations.
Furthermore, it holds tax-exempt status under the pertinent statutory regulations of the
State of California.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual
cost of living adjustments and death benefits to plan members, who must be public
employees and beneficiaries. Benefits are based on years of credited service, equal to one
year of full time employment. Classic CalPERS members with five years of total service are
eligible to retire at age 50 with statutorily reduced benefits. PEPRA CalPERS members with
five years of total service are eligible to retire at age 52 with statutorily reduced benefits.
All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit,
or the Optional Settlement 2 Death Benefit. The cost of living adjustments for each plan
are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Miscellaneous
Prior to December 23, 2011 thru On or after
Hire Date December 23, 2011 December 31, 2012 January 1, 2013
Benefit Formula 2.7% @ 55 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments Monthly for life Monthly for life Monthly for life
Retirement Age 50-55 50-55 52-62
Monthly benefits, as a % of eligible
compensation 2.0% to 2.7% 1.426% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8.00% 7.00% 7.75%
Required employer contribution rates 19.85% 19.85% 19.85%

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