City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00348 1/28/2025 Consent Item 13.
(Pass for Publication) Ordinance Authorizing Amendment to the Contract between the City and the California Public Employees' Retirement System Approval of a Resolution of Intention to Amend the Contract
File ID: 2025-00348
Location: Citywide
Recommendation: Approve a Resolution of Intention to amend the contract between the City of Sacramento and the Board of Administration of the California Public Employees’ Retirement System (CalPERS) to reflect the cost share for Unrepresented Classic Members; 2) review an ordinance amending the contract between the City of Sacramento and the Board of Administration of the CalPERS; and 3) pass for publication the ordinance title as required by the Sacramento City Charter Section 32(c) for consideration on February 4, 2025.
Contact: Samantha Hardy, HR Manager, (916) 808-7657, [email protected], Department of Human Resources
Presenter: None
Attachments:
1-Description/Analysis
2-Ordinance
3-Resolution of Intention
4-Exhibit A (CalPERS Resolution)
5-Exhibit B (CalPERS Contract Amendment)
Description/Analysis
Issue Detail: On August 20, 2024, the City Council approved a resolution to initiate the CalPERS contract amendment process to include retirement cost sharing in the Personnel Resolution Covering Unrepresented Officers and Employees (Unrep Reso). Amending the contract between the City of Sacramento and CalPERS is a multi-step process. The next step of the process is for City Council to approve a resolution of intention to amend its contract with CalPERS, and then to separately enact an ordinance authorizing an amendment to the City’s contract with CalPERS, as required by the California Government Code.
Retirement cost-share amounts paid by Unrepresented officers and employees who are CalPERS
File ID: 2025-00348 1/28/2025 Consent Item 13.
Classic members are paid in addition to the member contribution rate. Amending the City’s contract with CalPERS allows the cost share amount paid by the employee to be credited to the member’s CalPERS account. This action does not change the City’s contribution to CalPERS.
Policy Considerations: Approval of the resolution of intention continues the process required to amend the City’s contract with CalPERS to implement cost sharing in accordance with the Unrep Reso.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by CEQA [CEQA guidelines Sections 15061(b)(3); 15378(b)(2)].
Sustainability: There are no sustainability considerations applicable to this action.
Commission/Committee Action: None.
Rationale for Recommendation: The resolution of intention is a requirement to amend the CalPERS contract for cost sharing for Unrepresented Classic Officers and employees.
Financial Considerations: The savings from cost sharing were already included in costs associated with the Unrep Reso.
Local Business Enterprise (LBE): Not applicable.
ORDINANCE NO.
Adopted by the Sacramento City Council
Date Adopted
AN ORDINANCE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SACRAMENTO AND THE CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM
BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO
SECTION 1.
An amendment to the contract between the City Council of the City of Sacramento and the Board of Administration of the California Public Employees’ Retirement System is authorized. A copy of the amendment is attached to this ordinance as Exhibit A.
SECTION 2.
The Mayor of the City of Sacramento is authorized, empowered, and directed to execute the amendment for and on behalf of the City of Sacramento.
RESOLUTION NO.
Adopted by the Sacramento City Council
Resolution of Intention to Amend the
California Public Employees’ Retirement System Contract
BACKGROUND
A. Pursuant to the Personnel Resolution Covering Unrepresented Officers and Employees, all unrepresented CalPERS Classic Police Safety members shall pay three percentage points of the City’s contribution to CalPERS, unrepresented CalPERS Classic Fire Safety members shall pay twelve percentage points of the City’s contribution to PERS, and unrepresented CalPERS Classic Miscellaneous members shall pay one percentage point of the City’s contribution to CalPERS.
B. Pursuant to Public Employees’ Retirement Law, the City of Sacramento must approve a Resolution of Intent to amend the PERS contract.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The Resolution of Intention (Exhibit A) providing notice of the City's intent to approve an amendment to the contract between the City of Sacramento and the Board of Administration of the California Public Employees' Retirement System (Exhibit B) is approved.
Section 2. Exhibits A and B are a part of this Resolution
A,
CalPERS
EXHIBIT B
California
Public Employees' Retirement System
-=-==-.m:: •-----a-!
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Sacramento
The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective January 29, 1977, and witnessed January 25, 1977, and as amended effective June, 1, 1978, March 17, 1988, December 30, 1989, June 26, 1991, February 21, 1992, May 29, 1996, November 20, 1996, December 19, 1997, July 1, 2000, June 30, 2001, September 22, 2001, June 29, 2002, November 26, 2005, April 29, 2006, May 9, 2009, December 29, 2012, July 11, 2015, May 13, 2017, November 25, 2017, and January 19, 2019, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A Paragraphs 1 through 20 are hereby stricken from said contract as executed effective January 19, 2019, and hereby replaced by the following paragraphs numbered 1 through 20 inclusive:
1. All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for classic local miscellaneous members, age 62 for new local miscellaneous members, age 55 for classic local fire members, age 50 for classic local police members, and age 57 for new local safety members.