Term
CalPERS Unfunded Liability
Also known as: Unfunded actuarial liability, UAL, pension liability
The portion of the City's pension obligation that exceeds the current value of pension fund assets — owed to the California Public Employees' Retirement System.
California cities pay both a 'normal cost' (this year's pension accruals) and an 'unfunded liability' amortization (catching up on past underfunding and investment shortfalls). This is the line item that has grown sharply for most CA cities.
In Menlo Park
FY 2027 Retirement (CalPERS unfunded liability) expense is one of the largest fringe line items.