Paying $3 million to reduce pension liability is among spending recommendations that follow higher than expected revenue for Redwood City, which has an unfunded pension liability of $264.5 million.
“Our commitment is that when we have a surplus,” said Vice Mayor Shelly Masur, “a portion of that will go toward paying down our pension liabilities.”
Masur said a range of issues contribute to the liability — including actions by state government. “During the recession, the state pulled back on its contributions so the costs were shifted to local governments,” she said.
“During the recession, the state pulled back on its contributions so the costs were shifted to local governments,” she said.
The recommendation to spend $3 million toward pension liability is part of a mid-year budget report that goes before Redwood City Council members Monday.
Read the rest of the article in The Daily Journal.
This article republishes selections from “Redwood City eyes $3M to cut pension liability,” an article by Ryan McCarthy for The Daily Journal, 2/22/2020.