With conservative fiscal management and successful revenue strategies, Fullerton has been able to reduce its unfunded liabilities. This is a long-term strategy, with a short-term goal to achieve what is a generally accepted adequate level of funding of 80% of liabilities. Currently, Fullerton is funded at 83% for our largest employee group and 72% for our public safety unit. That 72% is up from 67%-funded from just five years ago. We’ve amended our PERS contract to create a lower retirement benefit formula for all new public safety employees, and we eliminated the “Single Highest Year” benefit for all new hires, reducing long-term costs. We also established a new Retiree Health Benefit Trust Fund and began funding that Trust Fund in this current budget.
There is always more to do, and we must remain vigilant in ensuring our ability to fund future liabilities, but I’m proud to be leading the way as we move in the right direction!