November 1, 2022
HONO
RABLE MAYOR AND CITY COUNCIL
City of Long Beach
California
RECO
MMENDATION:
Adopt a Resolution of Intention amending the City of Long Beach’s (City) contract with the California Public Employees Retirement System ( CalPERS) to include a mandatory employee contribution of two (2) percent of compensation earnable toward the City's required employer contribution to CalPERS (in addition to the nine (9) percent statutory employee contribution) pursuant to Government Code Section 20516(a), applicable to the Long Beach Lifeguard Association (LGA) Classic Public Safety CalPERS Members; and,
Declare an Ordinance to amend the City’s contract with CalPERS to provide the mandatory employee contribution of two (2) percent of compensation earnable toward the City's required employer contribution to CalPERS pursuant to Government Code Section 20516(a), applicable to
the Long Beach Lifeguard Association (LGA) Classic Public Safety CalPERS Members, read the first time and laid over to the next regular meeting in December of the City Council for final reading. (Citywide)
DISCUSSION
On October 18, 2022, the City Council approved the 2022-2025 successor Memorandum of Understanding (MOU) with the Long Beach Lifeguard Association (LGA). This new contract includes a provision for Cost Sharing by LGA Classic Public Safety CalPERS Members via payroll deductions pursuant to California Government Code Section 20516(f). Per this provision, LGA Classic Public Safety CalPERS members will contribute two percent (2%) of compensation earnable toward the City's required employer contribution to CalPERS in addition to the nine percent (9%) statutory employee contribution already paid by the employee, which will increase the employee's contribution to a total of eleven percent (11%).
The parties agreed to pursue a CalPERS contract amendment, as soon as administratively possible to change the above- described two percent (2%) cost sharing under Government Code section 20516(f), to cost sharing of two percent (2%) of compensation earnable, pursuant to Government Code Section 20516(a).
On S
eptember 17, 2022, the City of Long Beach notified CalPERS of its intent to initiate the CalPERS contract amendment process. Upon receipt of further instructions from CalPERS, the City must complete the following steps to finalize the amendment process:
1. Council Adoption of a Resolution of Intention with Exhibit Amendment to Contract (attached).
2. Submission of certified copy of Resolution of Intention to my|CalPERS following City Council adoption.
Department of Human Resources
411 West Ocean Boulevard, 10th Floor Long Beach, CA 90802 (562) 570-6621
R-38
REVISED
HONORABLE MAYOR AND CITY COUNCIL
November 1, 2022
3. Submission of Form CON -12, Certification of Governing Body’s Action to my|CalPERS following City Council adoption of Resolution of Intention.
4. Submission of Form CON -12A, Certification of Compliance with Government Code Section 7507 to my|CalPERS, following City Council adoption of Resolution of Intention.
5. Submission of Form CON -15, Certification of Employee Election to my|CalPERS, following City Council adoption of Resolution of Intention.
6. Submission of Form CON -500, Certification of Compliance with Government Code Section 20516 to my|CalPERS, following City Council adoption of Resolution of Intention.
7. City Council adoption of final Ordinance, no earlier than 20 days following adoption of Resolution of Intention. Amendment effective the first day of the payroll period following adoption of the final Ordinance
This matter was reviewed by Assistant City Attorney Gary J. Anderson and Budget Manager Grace H. Yoon on October 11, 2022.
TIMING CONSIDERATIONS
City Council action is requested on November 1, 2022, to ensure the timely implementation of the MOU provisions.
FISCAL IMPACT
T
he pension pick-up savings implemented in Fiscal Year 2022 (FY 22) per the LGA MOU were estimated at the time of contract approval to generate an annualized structural savings of $38,550 across a ll funds. Cost-sharing savings are expected to decrease over time as Classic Public Safety CalPERS employees retire or otherwise leave the City. These pension pick -up changes and associated savings began to be realized in FY 22 and were structurally incorporated into the budget in FY 22. PEPRA members have lower cost pension plans as part of PEPRA pension reform. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SU
GGESTED ACTION:
A
pprove recommendation.
R
espectfully submitted,
J
OE AMBROSINI
HUMAN RESOURCES DIRECTOR
ATTACHMENTS: RESOLUTION
ORDINANCE
APPROVED:
THOMAS B. MODICA
CITY MANAGER
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
RESOLUTION NO.
A RESOLUTION OF INTENTION BY THE CITY
COUNCIL OF THE CITY OF LONG BEACH TO APPROVE AN
AMENDMENT TO CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES’ RETIREMENT SYSTEM AND THE CITY OF
LONG BEACH
WHEREAS, the California Public Employees’ Retirement Law permits the participation of public agencies and their employees in the California Public Employees’ Retirement System (CalPERS) by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and
WHEREAS, the City of Long Beach entered into a contract with the Board of Administration of CalPERS to provide for the City’s participation in CalPERS effective July 1, 1950, which has been amended from time to time; and
WHEREAS, one of the steps in the procedures to further amend said contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20516(f) (Employee Sharing Additional Cost) of 2% for Classic Public Safety employees in the in the Long Beach Lifeguard Association (LGA) toward the City’s required employer contribution to CalPERS, via payroll deductions. The cost sharing contribution will be in addition to the 9% statutory employee contribution already paid by the employee, and will decrease the employee’s contribution to a total of 11.0%.
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 W. Ocean Boulevard, 9th Floor
Long Beach, CA 90802
NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The City Council of the City of Long Beach does hereby give notice of its intention to approve an amendment to the contract between the City of Long Beach and the Board of Administration of the California Public Employees’ Retirement System, a copy of said amendment is attached hereto, as Exhibit “A”, and incorporated by this reference.
Section 2. This resolution shall take effect immed iately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
I hereby certify that the foregoing resolution was adopted by the City Council of the City of Long Beach at its meeting of ________________________, 2022, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
EXHIBIT “A”
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE CITY OF LONG
BEACH AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT
SYSTEM AND AUTHORIZING THE CITY MANAGER OF
SAID CITY TO EXECUTE SAID AMENDMENT FOR AND
ON BEHALF OF THE CITY OF LONG BEACH
The City Council of the City of Long Beach ordains as follows:
Section 1. That an amendment to the contract between the City Council of the City of Long Beach and the Boa rd of Administration, California Public Employees’ Retirement System (CalPERS), is hereby authorized , a copy of said amendment is attached hereto as Exhibit “A” and is made a part hereof as though set out in full herein.
Section 2. That the City Manager of the City o f Long Beach is hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Long Beach.
Section 3. The City Clerk shall certify to the passage of this ordinance by the City Council and cause it to be posted in three (3) conspicuous places in the City of Long Beach, and it shall take effect on the thirty -first (31st) day after the date of its adoption.
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OFFICE OF THE CITY ATTORNEY
CHARLES PARKIN, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
I hereby certify that the foregoing ordinance was adopted by the City Council of the City of Long Beach at its m eeting of ___________________, 2022, by the following vote:
Ayes: Councilmembers:
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
City Clerk
Approved: __________________
(Date) Mayor
EXHIBIT “A”