Page 68 - CPAAC_Fall2015

11/13/2015

Options

 Pension Obligation Bonds (POBs)
 Borrow from General Fund
 Amortization Period
 One time payments
 Internal Service Fund
 Irrevocable Supplemental (§115) Trust

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POBs

 Interest arbitrage between expected CalPERS
earnings and rate paid on POB

 No guaranteed savings

 Including paying off CalPERS Side Fund

 PEPRA prevents contributions from dropping
below normal cost

 Savings offset when investment return is good

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