To: Board of Directors
From: Lewis Broschard, Chief, Contra Costa County Fire Protection District
Report Title: Termination of Pension Obligation Stabilization Fund
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
CONSIDER terminating the Pension Obligation Stabilization Fund and transferring the balance to the Contra Costa County Employee Retirement Association and the Fire District's Capital Construction Fund.
DIRECT the County Treasurer and Auditor-Controller to take the necessary steps to terminate the Fire District Pension Obligation Bond Stabilization Fund (Fund 202400); transfer $17,000,000 to the Contra Costa County Employee Retirement Association as excess contributions prior to July 31, 2026; and transfer the remaining balance of $10,381,809.94 to the Fire District's Capital Construction Fund (Fund 202500).
FISCAL IMPACT:
This action will terminate a reserve fund of $27.4 million that is no longer required to be maintained and transfer the balance to support the construction of new fire stations and to provide additional funds to the CCCERA pension system. Net interest accrued on the excess contributions in the District's CCCERA account will be positive for the Fire District. The fund was originally established from Fire District operational funds in 2005. (General Fund)
BACKGROUND:
The District's Pension Obligation Bonds were fully paid off in 2024. A Pension Obligation Bond Stabilization Fund (POB Stabilization Fund) was required to be maintained while the bonds were active. As a result of the bonds being paid off, the retention of a dedicated POB Stabilization Fund is no longer necessary. There is a balance of $27,381,809.94 in the POB Stabilization Fund. As the POB Stabilization Fund is no longer required, the funds in that fund can be directed for other uses as approved by this Board.
The District can contribute funds into its CCCERA pension account in the form of excess normal contributi...
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