City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00421 3/18/2025 Discussion Item 16.
Ordinance Authorizing Amendment to the Contract Between the City of Sacramento and the California Public Employees’ Retirement System [Passed for Publication 2/25/2025; Published 2/27/2025]
File ID: 2025-00421
Location: Citywide
Recommendation: Adopt an Ordinance amending the contract between the City of Sacramento and the Board of Administration of the California Public Employees’ Retirement System.
Contact: Samantha Hardy, Human Resources Manager, (916) 808-7657, [email protected], Department of Human Resources Presenter: Samantha Hardy, Human Resources Manager, (916) 808-7657, [email protected], Department of Human Resources Attachments:
1-Description/Analysis
2-Ordinance
3-Exhibit A (CalPERS Amendment)
Description/Analysis
Issue Detail: On August 20, 2024, City Council approved a resolution to initiate the California Public Employees’ Retirement System (CalPERS) contract amendment process to include retirement cost sharing per the Personnel Resolution Covering Unrepresented Officers and Employees (Unrep Reso).
On February 25, 2025, City Council reviewed the ordinance to amend the contract between CalPERS and the City of Sacramento and approved a resolution of intention to continue the contract amendment process. As required by CalPERS, CalPERS classic members covered by the Unrep Reso have completed their vote for the contract amendment process to continue.
Per the Unrep Reso, unrepresented CalPERS classic members are paying the following percentage points of the employer’s retirement contribution to CalPERS:
File ID: 2025-00421 3/18/2025 Discussion Item 16.
· Fire Safety classic members pay twelve (12) percent
· Police Safety classic members pay three (3) percent
· Miscellaneous classic members pay one (1) percent.
In accordance with the Public Employees Retirement Law, the adoption of this ordinance is the final step to amend the City’s contract with CalPERS to add the retirement cost sharing language in the Unrep Reso into the City’s contract with CalPERS. This action does not increase or change the City’s retirement contributions, and it does not increase or change the amount the employees are currently paying. The current estimated annual value of the retirement cost sharing paid by unrepresented CalPERS classic members is $198,000.
Policy Considerations: Adopting the ordinance finalizes the administrative process required to include the existing cost sharing specified in the Unrep Reso in the City’s contract with CalPERS.
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 ordinance is required to amend the City’s contract with CalPERS.
Financial Considerations: The savings from retirement cost sharing are already included in budgeted labor costs associated with the Unrep Reso, and this action does not increase the City’s retirement contribution to CalPERS.
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 amended contract 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 amended contract for and on behalf of the City of Sacramento.
Exhibit A