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Agenda Item No: 1.e
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: September 8, 2026
Submitted by: Alice Burnett
From: Human Resources
Subject:
APPROVE AN ADDENDUM TO THE DEFINED CONTRIBUTION PLAN FOR DESIGNATED
FIRE EMPLOYEES NOT PARTICIPATING IN RETIREMENT FORMULAS PROVIDED
UNDER CALPERS
Financial Impact:
There is no budget impact to approve the attached addendum.
Summary:
The City of Placentia provides retirement benefits to its employees through a combination of California Public Employees' Retirement System (CaIPERS) benefits and defined contribution retirement plans, depending on the employee group and applicable retirement formula.
In 2019, to establish the Placentia Fire and Life Safety Department, the City terminated the inactive CaIPERS Safety -Fire category from its CaIPERS contract and established a 401(a) defined contribution retirement plan for full-time Fire safety employees. The plan was originally established through ICMA-RC and is currently administered through MissionSquare Retirement Solutions.
The 401(a) plan was established as an alternative to a traditional CaIPERS pension structure and was intended to provide a competitive retirement benefit for Fire employees while allowing the City to better control and predict long-term retirement costs.
As part of the City's most recent labor negotiations, covering the period of July 2025 through June 2027, the City and Fire employee representatives agreed to changes in the City's employer contributions to the 401(a) retirement plan. Those negotiated contribution changes have already been implemented in accordance with the applicable labor agreements.
The proposed action will formally amend the existing 401(a) retirement plan document to reflect the contribution provisions currently in effect under the City's negotiated labor agreements. The action does not establish a new retirement benefit or create an additional compensation obligation. Rather, it brings the formal plan document into alignment with the retirement benefits that have already been negotiated and implemented.
Staff recommends that the City Council approve the Addendum to the City's 401(a) Defined 1 Contribution Plan for designated Fire employees who do not participate in a CaIPERS retirement formula.
Recommended Action:
It is recommended that the City Council:
1. Approve the Addendum to the City of Placentia 401(a) Defined Contribution Plan administered by MissionSquare Retirement Solutions for designated Fire employees not participating in retirement formulas provided under CaIPERS, reflecting the employer contribution provisions contained in the current labor agreements; and
2. Authorize the Acting City Administrator, or designee, to execute all necessary documents to update the plan.
Strategic Plan Statement:
This action is consistent with Goal No. 5: Organizational Excellence by supporting transparent and accountable administration of employee benefits and ensuring the City's benefit programs are managed responsibly and in accordance with negotiated agreements.
Discussion:
During the City's most recent labor negotiations, covering the period of July 2025 through June 2027, the City and Fire employee representatives negotiated changes to the City's employer contributions to the 401(a) plan.
Those changes were incorporated into the applicable labor agreements and compensation plans and have already been implemented by the City. The City's payroll and retirement plan administration have been operating consistent with the negotiated contribution provisions.
The proposed Addendum is therefore intended to update the formal 401(a) plan document to accurately reflect the provisions currently in effect. Council approval of the Addendum does not constitute a new negotiated increase or establish a new retirement benefit. Rather, it formally documents the benefit that is already being provided pursuant to the current labor agreements.
The Addendum will:
• Update the plan documentation to reflect the current employer contribution provisions for eligible Fire employees;
• Ensure consistency between the City's labor agreements and the formal 401(a) plan document;
• Reflect the current administration of the plan through MissionSquare Retirement Solutions; and
• Provide an accurate and current plan document for the City, participating employees, the plan administrator, and applicable regulatory requirements.
The Addendum does not change the City's decision to provide a defined contribution retirement benefit rather than a CaIPERS Safety -Fire defined benefit formula.
Financial Summary:
The fiscal impact associated with the increased 401(a) contributions was addressed as part of the City's labor negotiations for the July 2025 through June 2027 contract period. The negotiated contribution changes have already been implemented and are reflected in the City's current payroll and personnel expenditures.
2 Approval of the proposed Addendum does not create a new fiscal obligation beyond the compensation provisions already approved through the applicable labor agreements. The Addendum is intended to ensure that the formal plan document accurately reflects the retirement benefits currently being provided.
The ongoing cost of the 401(a) plan will vary based on the number of eligible employees and their eligible compensation and will continue to be administered in accordance with the applicable labor agreements and City budget appropriations.
Attachments
MissionSquare Addendum 100091 FIRE.docx
3 Mayor
CHAD P. WANKE
Mayor Pro Tem
JEREMY B. YAMAGUCHI
Councilmembers:
THOMAS HUMMER
KEVIN KIRWIN
WARD L. SMITH
The People are the City
401 East Chapman Avenue - Placentia, California 92870
Addendum to the
MissionSquare Retirement Money Purchase Plan
City of Placentia 401(a) Plan, Plan Number 100091
City Clerk:
ROBERT S. MCKINNELL
City Treasurer
KEVIN A. LARSON
Acting City Administrator
ROSANNA RAMIREZ
Section V. Covered Employee Classifications:
1. The following group or groups of Employees are eligible to participate in the plan:
All City of Placentia sworn Fire personnel including the Fire Chief All City of Placentia non -sworn Fire personnel not covered under the City's CaIPERS retirement contract
Section VI. Contribution Provisions
A. Fixed Employer Contributions
• Firefighters, Fire Engineers, Fire Captains and other Fire Personnel not covered under CaIPERS 12% of base compensation
• Battalion Chiefs, Fire Chief and Deputy Fire Chief 14% of base compensation Name: Rosanna Ramirez
Signature
Title: Acting City Administrator
Date
4