HomeMy WebLinkAboutCity Council - 4999 RESOLUTION NO. 4999
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNTINGTON BEACH URGING THE PUBLIC EMPLOYEES
RETIREMENT SYSTEM' S BOARD OF ADMINISTRATION TO
REVIEW AND INVESTIGATE THE INVESTMENT POLICIES
OF SUCH SYSTEM
WHEREAS, the most recent report to the Governor from the
Board of Directors for the Public Employees Retirement System,
dated January 12, 1981, revealed that the "Computed Rate of
Return" on the entire 12.85 billion investment portfolio was
7 .91 percent for the fiscal year ending June 30, 1980 ; and
The interest crediting rate which member employers and
employees were granted on their accumulated retirement earnings
for the year ending June 30, 1980 was only 6 percent; and
Federal treasury notes, Federal treasury bills , and short-
term commercial paper has been yielding interest rates ranging
from 12 percent to 20 percent over the past eighteen months, de-
pending on the amount invested; and
Forty-nine percent of the Public Employees Retirement
System' s 12.85 billion investment portfolio as of June 30, 1980
is placed in bonds , many of which are long-term investments,
yielding only 3 percent and 4 percent; and
Only 4.1 percent of the Public Employees Retirement System 's
investment portfolio as of June 30, 1980 is placed in short-term
investments at a time when money market funds are earning up to
20 percent for large investments; and
Public agency employers such as Public Employees Retirement
System member cities and counties are experiencing continuous
employer rate increases , following periodic audits of the fi-
nancial integrity of the Public Employees Retirement System; and
Current Public Employees Retirement System' s investment policy
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5/22/81
1.
appears too rigid and unable to respond in a timely manner with
a flexible and aggressive investment policy which can capitalize
on rapidly changing money market investment opportunities,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Huntington Beach as follows :
1. That the Board of Administration of the Public Employees
Retirement System be encouraged to explore whether a significantly
higher percentage of investments should be placed in short-term
investments with higher yield than most typical long-term invest-
ments.
2. That the current efforts of Assemblyman Louis J. Papan be
supported in creating a legislative committee to investigate the in-
vestment policies of the Public Employees Retirement System.
3. The sole purpose of this resolution is to secure the
maximum interest earnings from the Public Employees Retirement
System' s investment portfolio for the benefit of city and in-
dividual members of the Public Employees Retirement System, and in
so doing, to reduce the need for employee or employer contribu-
tion rate increases.
4. That the City Clerk is directed to furnish copies of this
resolution to the President of the Board of Administration, Public
Employees Retirement System; the Executive Officer of the Public
Employees Retirement System; and Assemblyman Louis J. Papan.
PASSED AND ADOPTED by the City Council of the City of
Huntington Beach at a regular meeting thereof held on the 1st
day of June 1981.
x 7t,P..
Mayor
ATTEST: APPROVED AS TO FORM:
i
City Clerk City Attorney
2.
REVIEWED AND APPROVED :
P t
City Administr r
_ 3.
Res. No. 4999
STATE OF CALIFORNIA )
COUNTY OF ORANGE
CITY OF HUNITINGTON BEACH )
I, ALICIA M. WENTWORTH, the duly elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote of more than a majority of all the members of said City Council
at a regular meeting thereof held on the . 1st day
of June 19 81 by the following voter
AYES: Councilmen:
MacAllister, Thomas, Pattinson, Finley, Bailey, Mandic, Kelly
NOES: Councilmen:
None
ABSENT: Councilmen:
None
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California