FOR THE COUNCIL MEETING OF JULY 16, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Interim Chief Human Resources Officer Dawn Jackson
SUBJECT: Adoption of a Resolution Authorizing the Revision of the Paying and Reporting Value of Employer Paid Member Contributions to the California Public Employees’ Retirement System for the Public Safety Managers
Description:
The City Council will consider authorizing and approving a revised Resolution for the Public S afety Managers to update the paying and reporting value of Employer Paid Member Contributions to the California Public Employees’ Retirement System.
RECOMMENDATIONS:
Adopt a Resolution authorizing and approving the revised wage and benefits package for the Public Safety Managers regarding Employer Paid Member Contributions to the California Public Employees’ Retirement System.
BACKGROUND:
City staff met with legal counsel to discuss a revision of the paying and reporting value of the Employer Paid Member Contribution to the California Public Employees’ Retirement System for the Public Safety Managers that fall only under Fire Tier II. The current language, from Resolution 2022 -24B, requires Tier II unit members for Fire to pay 24 percent toward member contributions, in comparison to Fire Tier I members paying 11 percent, and Tier II members for Police paying a total of 18 percent. Clarifying language is added to this Resolution to achieve equitable contributions among the tiers and Public Safety organizations
DISCUSSION:
A recommendation to adopt the revised Resolution for the Public Safety Managers addressing the Employer Paid Member Contribution for only Fire Tier II. This amendment to the Public Safety Managers Resolution 2024 -48 brought forward to the City Council and adopted on April 2, 2024, reflects a change to the employee contribution language for Fire Tier II only, stating the following: “The City shall contribute 9% statutory member contribution as EPMC and shall report the EPMC as special compensation to the extent permitted by CalPERS and applicable law. Tier II employees shall contribute 15% in the 2 form of cost -sharing of the City’s required contribution to Cal PERS under Government Code section 20516(a). ” This amendment results in a more equitable percentage difference between the Fire Tier I members and Fire Tier II members.
Alternative(s)
A decision by the City Council not to authorize and approve the revised Resolution for the Public Safety Managers will result in a continuation of Fire only Tier II paying 24 percent towards the California Public Employees’ Retirement System.
Fiscal Considerations
As this change curr ently affects one member the result is a nominal fiscal impact.
However, the fiscal impact will be greater if more employees within this tier are hired in the future.
Impact to the Community
It is expected to have a positive impact on the continued longevity of current and future members that would be impacted by this section of the Resolution.