Agenda Report
Fullerton City Council
MEETING DATE: MAY 17, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: ERIC J. LEVITT, City Manager
PREPARED BY: EDDIE MANFRO, DIRECTOR OF HUMAN RESOURCES
SUBJECT: CALPERS EMPLOYER PAID MEMBER CONTRIBUTIONS
SUMMARY
A request to rescind and replace Resolution No. 2020-71 concerning Employer Paid Member Contributions under the California Public Employees’ Retirement System (CalPERS) with an update authorized by prior City Council action.
RECOMMENDATION
Adopt Resolution No. 2022-XXX.
RESOLUTION NO. 2022-XXX – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA, CONCERNING PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR CLASSIC MEMBERS AND REPEALING RESOLUTION NO. 2020-71
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Fiscal and Organizational Stability.
FISCAL IMPACT
None.
DISCUSSION
Under California Public Employees’ Retirement Law, employers may pay the employee normal cost (known as the “member contribution”) and report the value to CalPERS as additional compensation for employees not excluded under the law. The City implemented this benefit, known as Employer Paid Member Contribution (EPMC), for regular employees in all classifications through the collective bargaining process in the early 1990s.
City Council adopted Resolution No. 2017-66 in October 2017, approving changes to the compensation packages for Executive employees including a gradual reduction of the EPMC benefit. The first 2% reduction took place immediately upon adoption of the resolution.
City Council adopted Resolution No. 2020-59 on July 7, 2020, approving changes for reporting the value of EPMC which eliminated the final 1% paid benefit for non-sworn Executive Unit members and reduced the Fire Chief EPMC from 3% to 1% of total compensation earnable. The City planned to eliminate the remaining 1% for the Fire Chief in July 2021, but did not present this item to City Council, as the City of Fullerton no longer employed the Fire Chief due to the Shared Command Agreement with the City of Brea.
With the upcoming dissolution of the Shared Command staff and the appointment of Adam Loeser as Fire Chief for the City of Fullerton, staff presents an update to the EPMC Resolution to complete phasing out the EPMC benefit for Executive employees.
Attachments:
Attachment 1 – Draft Resolution No. 2022-XXX (redline)
Attachment 2 – Draft Resolution No. 2022-XXX
CalPERS Employer Paid Member Contributions
May 17, 2022 - Page 2