DATE: December 16, 2025
TO: Mayor and City Council
FROM: Human Resources Director
SUBJECT Adopt a Resolution Establishing the City Contribution for Active and Retiree Medical Premiums Set by the California Public Employee Retirement System (CalPERS) for Calendar Year 2026 pursuant to California Government Code Section 22892 of the Public Employees’ Medical and Hospital Care Act
RECOMMENDATION
That the Council adopts a Resolution (Attachment II) authorizing the implementation of the mandatory minimum employer contributions to active and retiree medical premiums for calendar year 2026.
SUMMARY
The minimum employer contribution to the medical premiums of active and retired employees has increased to $ 162.00 for calendar year 2026. This contr ibution amount is adjusted annually by CalPERS. The City’s current contribution exceeds this amount.
FISCAL IMPACT
This action is for administrative purposes only. There is no fiscal impact associated with this report because the City’s current contrib ution toward employee medical premiums as provided for in applicable Memoranda of Understand ing has already been established and this action does not provide an increase to the current total City contribution towards medical premiums.
BACKGROUND/DISCUSSION
The City contracts with CalPERS to provide quality health benefits to its active and retired employees. California Government Code Section 22892 of the Public Employees Medical and Hospital Care Act (PEMHCA) establishes the minimum employer medical contribution. The CalPERS Board annually adjusts the employer contribution to reflect any chan ge in the Medical Care Component of the Consumer Price Index, rounded to the nearest dollar. The table below shows the minimum employer contribution required by CalPERS for the last six years, and the 2026 rate:
Calendar Year Employer Contribution
2020 $139.00
2021 $143.00
2022 $149.00
2023 $151.00
2024 $157.00
2025 $158.00
2026 $162.00
This action is necessary to meet the requirement that the governing body adopt a resolution agreeing to the minimum contribution amount established by CalPERS.
The City currently contributes to medical premiums in accordance with the terms of the existing agreements between each of the bargaining units, based on the health plan and family status employee s elect and for which they are eligible. For both retirees and active employees, the total amount the City contributes towards medical benefit premiums exceeds the statutory minimum contribution required by CalPERS.
STRATEGIC INITIATIVES
This agenda item is a routine operational item and does not relate to one of the City Council’s Strategic Initiatives.
NEXT STEPS
The change in the PEMHCA minimum will be reflected in the City’s Benefits Summary effective January 1, 2026.
Prepared by: Cheryl Vance, Human Resources Analyst II
Recommended by: July Cole, Human Resources Manager
Approved by:
Jennifer Ott, City Manager