HomeMy WebLinkAbout3783_CCv0001.pdf RESOLUTION NO. 3783
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
REQUESTING THAT AN INDEPENDENT STUDY BE MADE CONCERNING
THE INVESTMENT POLICIES OF THE PUBLIC EMPLOYEES RETIREMENT
SYSTEM
WHEREAS, the Public Employees Retirement System is one of the
more successful public retirement systems in the nation; and
WHEREAS, its reputation for fiscal stability and integrity
has been due in great measure to its sound financial base, actuarial
updating and progressive investment program; and
WHEREAS, the dramatic increase in interest rates during the
past several months has caused a sharp change in the investment
practices of most well-managed retirement funds -- a decrease in
reliance on long-term investments, with a greater share of their
available resources going into the higher-yield money market; and
WHEREAS, while prudent investment strategy demands that a well-
balanced portfolio include a proper proportion of conservative long-
range investments , the PERS investment program appears to be too
heavily weighted in this direction; and
WHEREAS, cities, counties, and other public agencies are realizing
from 15 to 20% on their idle funds while PERS investments are re-
turning a relatively low 7 . 5 to 7. 9%; and
WHEREAS , resources needed to provide public services are being
diluted by unanticipated retirement costs -- costs in the form of
higher ending salaries on which to base retirement allowances , as
well as cost-of-living adjustments -- costs which are the direct
result of inflation, high interest rates and other factors directly
related to the marketplace; and
WHEREAS , in recognition of these factors, PERS should adopt a
more flexible approach toward the investment of the funds entrusted
to it, take advantage of the high interest rates currently available
and attempt to harness the economy to share some of the retirement
load for which it is partly responsible;
NOW THEREFORE BE IT RESOLVED by the City Council of the City
of Redlands as follows :
1. That the State League Board of Directors request that an
immediate independent study be made to determine the extent
to which a greater proportion of PERS investment funds
could be safely placed in the current money market, as
opposed to mid-range and long-range investments; and
2 . That support be given to legislation granting PERS
appropriate flexibility to make investments which yield
a higher rate of return; and
3. That action be initiated to guarantee that at least one
local government management representative be included
in the membership of the PERS Investment Committee.
ADOPTED, SIGNED AND APPROVED this 6th day of October, 1981 .
- I Wlz
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ATTEST:
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Deputy Cityk
I, Lorrie Poyzer, Deputy City Clerk, City of Redlands, California,
hereby certify that the foregoing resolution was adopted by the
City Council at a regular meeting thereof held on the 6th day of
October, 1981, by the following vote:
AYES: Councilmembers Gorman, Riordan, Roth
NOES: None
ABSENT: Councilmembers DeMirjyn, Martinez
De u y City 3rr
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Resolution No. 3783
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