CC - 2014-15 - Amending the California Public Employees Retirement System PlanROSEMEAD CITY COUNCIL
STAFF REPORT
TO: MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, CITY MANAGER
DATE: MAY 27, 2014
SUBJECT: CALPERS RESOLUTION AMENDING THE CURRENT CALPERS
CONTRACT TO REDUCE THE EMPLOYER -PAID MEMBER
CONTRIBUTION FOR GENERAL; MIDDLE MANAGEMENT,
PROFESSIONAL AND CONFIDENTIAL; EXECUTIVE MANAGEMENT;
MANAGEMENT; AND CITY COUNCIL FROM 8% TO 6 %.
SUMMARY
Beginning July 1, 2014, in compliance with state law, all City employees enrolled in
CaFERS will begin to pay 2% of earnings through payroll deduction towards the
member contribution and an additional 2% on July 1, 2015 for a total of 4 %.
Staff Recommendation for City Council Action:
Staff recommends that the City Council adopt Resolution 2014 -15, amending the
CalPERS contracts by permitting a reduction in employer -paid member contribution for
General, Middle Management, Professional and Confidential; Executive Management;
Management, and City Council from 8% to 6 %.
BACKGROUND
Under the Public Employees' Pension Reform of 2013 (CPEPR), beginning January 1,
20148, public agency employers that have collectively bargained in good faith have the
ability to unilaterally require classic members to pay up to 50% of the total normal cost
of their pension benefit. However, the employee contribution may only be increased up
to an 8% contribution for miscellaneous members.
In preparation for compliance with this state law by the 2018 deadline, and in order to
minimize the negative impacts upon its affected employees, the City is "phasing -in"
incremental compliance with this state mandate over a 4 year period. On December 10,
2013, the City Council approved Resolution 2013 -64 to reduce the City's employer -paid
member contribution with CaIPERS from 8% to 6% for the City Manager. Through
collective bargaining, all City employees enrolled in CalPERS will begin paying 2% of
their earnings through payroll deduction effective July 1, 2014 and an additional 2% on
July 1, 2015 for a total of 4 %.
ITEM NUMBER'. 3
City Council Meeting
May 27, 2014
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
Su Tan
Human Resources Manager
Attachment: Resolution 2014 -15
RESOLUTION: 2014 -15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, IN THE MATTER OF
AMENDING THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM
PLAN REGARDING EMPLOYER -PAID MEMBER CONTRIBUTIONS.
WHEREAS, the governing body of the City of Rosemead has the authority to
implement Government Code Section 20691; and
WHEREAS, the governing body of the City of Rosemead has a written labor
policy or agreement which specifically provides for the normal member contributions to
be paid by the employer; and
WHEREAS, one of the steps in the procedures to implement Section 20691 is
the adoption by the governing body of the City of Rosemead of a Resolution to
commence said Employer -Paid Member Contributions (EPMC); and
WHEREAS, the governing body of the City of Rosemead has identified the
following conditions for the purpose of its election to pay EPMC:
This benefit shall apply to all employees under the General Service,
Executive Management Group, Management Service; Middle
Management, Professional and Confidential Service;' /, Part-Time; and
City Council who are enrolled in CaIPERS.
This benefit shall consist of paying 6% of the normal member contributions
as EPMC.
. The effective date of this Resolution shall be July 1, 2014.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD
HEREBY RESOLVES AS FOLLOWS:
The governing body of the City of Rosemead elects to pay EPMC, as set forth
above.
PASSED, APPROVED AND ADOPTED this 27th day of May 2014.
William a c ayor
Mayor, City of Rosemead
ATTEST:
Anio, �JIJIJ"
Gloria Molleda
City Clerk
APPROVED AS TO FORM:
->
RACHEL RICHMAN
City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS.
CITY OF ROSEMEAD )
I, Gloria Molleda, City Clerk of the City of Rosemead, do hereby certify that the foregoing
Resolution No. 2014 -15 being.
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ROSEMEAD,COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, IN THE
MATTER OF AMENDING THE CALIFORNIA
PUBLIC EMPLOYEES RETIREMENT SYSTEM
PLAN REGARDING EMPLOYER -PAID
MEMBER CONTRIBUTIONS.
was duly and regularly approved and adopted by the Rosemead City Council on the 27th of May,
2014, by the following vote to wit.
Yes: Alarcon, Armenta, Clark, Hall, Low,
No: None
Abstain. None
Absent: None
Am i , U"
Gloria Molleda
City Clerk