Costa Mesa Sanitary District Is Debt Free By Paying Off Unfunded Pension Liability

Following is a press release from the Costa Mesa Sanitary District:

(Costa Mesa, CA) – On June 22, 2017, the Costa Mesa Sanitary District Board of Directors unanimously approved paying off its unfunded pension liability to CalPERS, the agency that manages the nation’s largest public pension fund. The District’s current unfunded pension liability is $320,417.

Paying the full amount now saves the District nearly $400,000 according to CalPERS 30-year amortization schedule. CalPERS developed three different schedules to fully fund the District’s retirement program, which included 30, 20 and 15 year amortization schedules. Under the 20 year amortization schedule the District would have saved more than $300,000, but under the 15 year amortization schedule the savings is more than $200,000.

However, the District chose a fourth plan, choosing to fully fund its retirement program by making a lump sum payment to CalPERS in the amount of $320,417.

“The Costa Mesa Sanitary District is one of the few public agencies in California that is debt free for pension and infrastructure replacement,” said Mike Scheafer, District Board President.

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