8/16/2024
1 RiversideCA.gov
1 RiversideCA.gov
AMENDMENT TO THE CONTRACT
BETWEEN CALPERS AND THE CITY OF
RIVERSIDE
Presented by Miriana Gonzalez,
Deputy Human Resources Director
August 20, 2024
RiversideCA.gov
2 • On July 2, 2024, Resolution 24136 was approved for the Unrepresented Police Management group to increase
their cost-sharing provisions and begin the contract
amendment process with CalPERS.
• The process of enacting Section 20516 (Cost-share)
changes to the City’s contract with CalPERS requires
adoption of a Resolution of Intention and introduction of an Ordinance
BACKGROUND
1 2
Date: 8-20-24
Item No.: 32
8/16/2024
2 RiversideCA.gov3
•CalPERS has 2 Contribution Rates, with both Rates set by CalPERS: •EMPLOYER (ER) Contribution OR Cost-Sharing•Employee (EE) Contribution•Prior to the Public Employees’ Pension Reform Act (PEPRA) in 2013, most Agencies would pay for both the ER and EE contribution.–Per CalPERS Government Code Section 20636, Agencies paying for the EE contribution could adopt a Resolution to report the EE contribution as special compensation or EPMC (Employer Paid Member Contribution).After 2013, EPMC was not allowed for New Members (Non-Classic), only for Classic Members.•Post PEPRA, Agencies began shifting contribution costs to the Classic (Tier 1) members to reduce costs; however, changes for Classic members Tier 1 required the Agency to engage in Negotiations.•As negotiated and starting in 2018, the Police and Fire employees agreed to pay the ER contribution for Classic members (Tier 1) while the City continued to pay the EE contribution–This action results in special compensation (EPMC remained) and is considered pensionable income to the employee.BACKGROUND RiversideCA.gov4
•In FY 2016/2017 all other Non-Safety Groups (IBEW, SEIU and Unrepresented), negotiations resulted in Tier 1 employees agreeing to pay the EE contribution thus eliminating EPMCfor these groups.•When the Employee pays for the ER contribution (Cost-sharing) and the City pays for the EE contribution, the Employee retains the benefit of having that contribution reported as special compensation and increases their pensionable benefit.•Personnel Impacted - Tier 1 employees in the Unrepresented Police Management Group: Police Chief and Deputy Police Chiefs–Currently, the employee pays 6.5% of the Employer Contribution and the City pays 9% of the Employee Contribution (EPMC)BACKGROUND3 4 8/16/2024
3 RiversideCA.gov5
As outlined in the Fringe Benefits and Salary Plan, Unrepresented Police Management employees in Tier 1 have agreed to the following CalPERS cost-sharing provisions:•As soon as administratively possible after April 12, 2024, to pay anadditional 0.5% of the Employer Contribution for a total of 7%.COST SHARING PROVISIONS RiversideCA.gov6
The cost-sharing provisions for all UnrepresentedPolice Management Tier 1 employees will beeffective October 25, 2024, consistent with theeffective date of the CalPERS ContractAmendment.EFFECTIVE DATE5 6 8/16/2024
4 RiversideCA.gov7
1. Approve the Resolution of Intention to amend thecontract between CalPERS and the City of Riverside toimplement a cost-sharing provision for an additional0.5% for a total of 7% for all Tier 1 Unrepresented PoliceManagement employees.2. Introduce and subsequently adopt the Ordinance toamend the contract between CalPERS and the City ofRiverside to implement a retirement cost-sharingprovision of 7% for all Tier 1 Unrepresented PoliceManagement employees.RECOMMENDATION7