CC - Item 4E - CalPers Resolution Amending the Current CalPers Contract to Reduce the Employer-Paid Member Contribution for the City Manager from 8% to 6%ROSEMEAD CITY COUNCIL
\ \ � STAFF REPORT
TO:
FROM:
DATE:
THE HONORABLE MAYOR AND CITY COUNCIL
MATTHEW E. HAWKESWORTH, ASSISTANT CITY MANAGER
DECEMBER 10, 2013
SUBJECT: CALIPERS RESOLUTION AMENDING THE CURRENT CALIPERS CONTRACT
TO REDUCE THE EMPLOYER -PAID MEMBER CONTRIBUTION FOR THE
CITY MANAGER FROM 8% TO 6%
SUMMARY
On November 12 "', the City Council approved Resolution 2013 -61 to reduce the City's
employer -paid member contribution with CaIPERS from 8% to 6% for the City Manager.
As a result, the City Manager now contributes 2% of earnings through payroll deduction
towards the CalPERS member contribution. It is envisioned that beginning in July of
2014, in compliance with state law, all City employees enrolled in CalPERS will also
begin to pay a portion of earnings through payroll deduction towards the member
contribution.
Subsequent to the City's submittal of Resolution 2013 -61 to CalPERS, the City was
informed that the language on the resolution must refer to a group instead of a position
title. As a result of this direction from CalPERS, the resolution has been amended to
reference the Executive Management Group, which includes the City Manager, rather
than referring to the City Manager by title. For purposes of the City's contract with
CalPERS, and as a practical matter, the Executive Management Group includes only
the classification of City Manager. (The City's other executive employees, i.e.,
department heads, are listed in the Management Group for CalPERS contract purposes
and are not affected by the this particular Resolution.)
Staff Recommendation
Staff recommends that the City Council adopt Resolution 2013 -64, amending the
CalPERS contract by implementing a reduction in employer -paid member contributions
from 8% to 6% for the Executive Management Group, i.e., City Manager.
BACKGROUND
Under the Public Employees Pension Reform Act of 2013 (CPEPRA), effective on July
1, 2018, public agency employers that have collectively bargained in good faith will have
the ability to unilaterally require employees who are classic members to pay up to 50%
of the total normal cost of their pension benefit. However, the employees may only be
required to pay member contributions up to 8% of earnings.
ITEM NUMBER:
City Council Meeting
September 10, 2013
Page 2 of 2
In preparation for compliance with this state law by the 2018 deadline, and in order to
minimize negative impacts upon its affected employees, the City will need to "phase -in"
incremental compliance with this state mandate over a 4 year period. It is envisioned
that through the collective bargaining process, all City employees enrolled in CaIPERS
will begin pay 2 %of their earnings through payroll deduction effective on July 1, 2014.
To initiate this phase -in approach for compliance with state law, and to set a positive
example, the City Manager volunteered to begin paying 2% of earnings towards the
CaIPERS member contribution beginning in November of 2013.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Attachments: A— Resolution 2013 -64
ATTACHMENT A
RESOLUTION: 2013 -64
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 Executive Management
Group, who are enrolled in CalPERS
This benefit shall consist of paying 6% of the normal member contributions
as EPMC.
The effective date of this Resolution shall be November 12, 2013.
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 10th day of December 2013.
POLLY LOW, Mayor
Mayor, City of Rosemead
ATTEST:
Gloria Molleda
City Clerk
APPROVED AS TO FORM:
RACHEL RICHMAN
City Attorney