Staff Report
City Council
Item No. {{section.number}}.E
Meeting Date: June 25, 2025
From: Eugenia Torres, Human Resources Manager
Title: CCPOA CalPERS Compliance
RECOMMENDATION:
To authorize the City Manager to execute a side letter with the Cathedral City Police Officers Association (CCPOA) to update MOU language to ensure compliance with CalPERS reporting requirements for special compensation.
BACKGROUND:
Special compensation items must be included in Memoranda of Understanding and must meet the definitions outlined in CCR section 571 for classic members or CCR section 571.1 for new members in order to be reportable to CalPERS.
The California Public Employees’ Retirement System (CalPERS) defines special compensation as compensation in addition to base pay that must meet specific criteria to be considered pensionable. These items include, but are not limited to, education incentives, certification pay, and specialty assignment compensation. For such compensation to be included in retirement benefit calculations, it must be included in retirement benefit calculations, it must be properly documented in labor agreements and meet all statutory and regulatory requirements.
Cathedral City has historically provided various special compensation items to its police personnel in recognition of specialized training, education, and certifications that enhance their ability to serve the community. These items have been included in the CCPOA Memorandum of Understanding (MOU). CalPERS periodically conducts compliance reviews to ensure that public agencies are correctly reporting compensation in accordance with applicable laws and regulations.
DISCUSSION:
Following a recent CalPERS compliance review of education/certification stipends, it was determined that all MOU’s should be reviewed by CalPERS for compliance. During negotiations with the CCPOA, it was agreed the City would pursue a CalPERS compliance review and allow a reopener to update language as needed.
The side letter addresses several key compliance areas related to special compensation reporting:
1. Clarification of Base Pay definition
2. Assignment Differential
3. Temporary Upgrade Pay (TUP)
4. Bilingual Pay
5. Certification Pay
6. Longevity Pay
7. Uniform Allowance
8. Holidays
These clarifications ensure the City’s compliance with California Code of Regulations sections 571 and 571.1, which govern pensionable compensation reporting requirements for CalPERS.
FISCAL IMPACT:
There is no fiscal impact associated with this item. The recommended changes affect reporting language only and do not alter compensation amounts. However, proper CalPERS reporting ensures accurate retirement benefit calculations and helps prevent potential future CalPERS audit findings that could result in retroactive adjustments.
FIVE-YEAR STRATEGIC PLAN:
Goal A - SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Objective: Through diversity, equity, and inclusion driven employee programs and experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated, and respected public stewards
ATTACHMENTS:
1. CCPOA CalPERS Compliance Side Letter