Side Letter of Agreement between the City of Hayward
and IAFF Local 1909 Page 1 of 3
2024 SIDE LETTER OF AGREEMENT TO AMEND SECTION 6.01B OF THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF HAYWARD AND INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, AFL-CIO, LOCAL 1909 This Side Letter of Agreement is made between the City of Hayward (City) and IAFF Local 1909 to amend section 6.01B of the Memorandum of Understanding effective January 1, 2024 through December 31, 2029 between the employees CalPERS contributions. This Side Letter of Agreement clarifies the additional CalPERS contribution for published CalPERS employee rate. This additional contribution under Government Code Section 20516 equals a fifteen percent (15%) total CalPERS employee contribution as agreed upon by the parties.
The City and IAFF Local 1909 agree that the terms of this Side Letter of Agreement shall become effective the pay period including July 1, 2023. The parties also agree that the terms of this Side Letter of Agreement are limited to only those specific items contained herein.
Retirement Plan, Optional Benefits, Cost Sharing (PERS Contributions) Section 6.01B (Optional Benefits, Cost Sharing (PERS Contributions)) shall be null and void and replaced with the following:
(B) Employees hired on or after January 1, 2013
This Section B shall apply to CalPERS eligible employees hired on or after January 1, 2013, who do not qualify for pension reciprocity pursuant to Government Code Section 7522.02(c).
R . The retirement plan for these employees shall be the retirement plan which the City is required to provide for new members pursuant to California i
. As required by Government Code Section 7522.25, the safety Option Plan Two (2% @ 50 2.7% @ 57) pension formula shall apply.
ii. As required by Government Code Section 7522.32, for the purposes of determining a retirement benefit for these employees, final compensation shall mean the highest average annual pensionable compensation earned during t
hirty-six (36) consecutive months of service.
Attachment V
Side Letter of Agreement between the City of Hayward
and IAFF Local 1909 Page 2 of 3
iii. As required by Government Code Section 7522.30, employees shall have an initial contribution rate of fifty percent (50%) of the total normal cost rate as defined in Section 7522.04 (g).
iv. Other contracted benefits include:
1. Section 20965 Unused Sick Leave Credit;
2. Section 21547.7 Alternative Death Benefit for Local Fire Members Credited with twenty (20) or More Years of Service;
3. Section 21573 1959 Survivor Benefits Level three (3);
4. Section 21329 2% Annual Cost-of-Living Allowance Increase;
5. Section 20516 Member Sharing Cost of Optional Benefit;
6. Section 20903 Additional Service Credit two (2) Years;
7. Section 21551 Pre-Retirement Death Benefit to Continue after Remarriage;
8. Section 21027 Military Service Credit for Retired Persons;
9. Section 21024 Military Service Credit for as Public Service;
10. Section 21635 Post-Retirement Survivor Allowance to Continue after Remarriage;
11. Section 21624/21626 Post-Retirement Survivor Allowance;
12. Section 21620 Retired Death Benefit; and
13. Section 20055 Prior Service.
New members shall continue to pay a total of fifteen percent (15%) of reportable wages to fund their pension until such time that a successor agreement is negotiated. The fifteen percent (15%) of reportable wages is comprised of the CalPERS published employee rate, plus the pay to CalPERS for these employees. Under Section 20516, the additional contributions are as follows:
Effective the pay period including July 1, 2013 3.75%
Effective the pay period including July 1, 2016 5.25%
Effective the pay period including July 1, 2020
4.50%
Effective the pay period including July 1, 2023 3.75%
Following the 2021 Valuation Report, under Section 20516, effective July 1, 2023, employees contributions will be adjusted to 3.75%. If CalPERS enacts another change to the employee rate as reflected in the Annual Valuation Report, the parties will amend this side letter to ensure it accurately reflects new members pay a total of fifteen percent (15%) of reportable Attachment V
Side Letter of Agreement between the City of Hayward
and IAFF Local 1909 Page 3 of 3
wages to fund their pension. fifty percent (50%) of
normal cost as determined by CalPERS. The balance, if any, of this contribution shall constitute CalPERS. In no event shall the employee contribution be less than fifty percent (50%) of the total normal cost rate, as required by Government Code Section 7522.30.
Executed on this ____ day of _______________, 2024 at Hayward, California For the City of Hayward: For International Association of Firefighters, AFL-CIO, Local 1909
___________________________ _____________________________________ Kelly McAdoo, City Manager Andrew Ghali, President
Attachment V