RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMMERCE, CALIFORNIA, DECLARING THE CITY COUNCIL’S INTENTION TO AMEND THE CITY’S CONTRACT WITH THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CALPERS) TO PROVIDE UP TO TWO (2) YEARS OF ADDITIONAL SERVICE CREDIT PURSUANT TO GOVERNMENT CODE SECTION 20903 AND MAKING THE REQUIRED DISCLOSURES UNDER GOVERNMENT CODE SECTION 7507 WHEREAS, the City of Commerce is a contracting agency with the California Public Employees’ Retirement System (“CalPERS”); and WHEREAS, Government Code section 20903 authorizes a contracting agency to amend its contract with CalPERS to provide up to two (2) years of additional service credit as a retirement incentive, subject to specified statutory conditions; and WHEREAS, Government Code section 7507 requires that, prior to adoption of any retirement benefit increase, the City Council receive and disclose at a public meeting an actuarial valuation identifying the estimated cost of the proposed benefit; and WHEREAS, CalPERS has prepared an actuarial valuation evaluating the cost impact of granting up to two (2) years of additional service credit, which valuation is based on all employees who would be eligible under the proposed amendment, as required by law; and WHEREAS, the City Council of the City of Commerce has received and publicly disclosed the CalPERS actuarial valuation at a duly noticed public meeting in compliance with Government Code section 7507; and WHEREAS, Government Code section 20903 further requires that, prior to adoption of a retirement incentive providing additional service credit, the governing body certify its intent to reduce the workforce by leaving some or all resulting vacancies permanently unfilled; and WHEREAS, the City Council desires to initiate the process required by law to consider adoption of an ordinance amending the City’s CalPERS contract, while limiting the City’s intended eligibility for the retirement incentive to a designated classification; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMMERCE HEREBY RESOLVES, DECLARES, AND DETERMINES AS FOLLOWS:
SECTION 1. The City Council hereby declares its intention to amend the City’s contract with the California Public Employees’ Retirement System to provide up to two (2) years of additional service credit pursuant to Government Code section 20903.
SECTION 2. The City Council hereby acknowledges receipt and public disclosure of the actuarial valuation prepared by CalPERS in compliance with Government Code section 7507 and understands that final action to amend the City’s CalPERS contract may not occur until at least two (2) weeks following such disclosure.
SECTION 3. Pursuant to Government Code section 20903, the City Council hereby certifies its intent to reduce the workforce by leaving some or all positions vacated as a result of the proposed retirement incentive permanently unfilled.
SECTION 4. The City’s proposed retirement incentive is intended to be limited to the following designated classification:
Classification: Associate Planner
Department: Economic Development Department
SECTION 5. Adoption of this Resolution of Intention does not obligate the City of Commerce to adopt an ordinance implementing the retirement incentive.
SECTION 6. The Mayor is authorized to execute this Resolution for and on behalf of the City of Commerce SECTION 7. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED, AND ADOPTED THIS 27th day of January, 2026. ______________________________
Kevin Lainez,
Mayor
ATTEST:
________________________________
Melanie Park
Deputy City Clerk