City of Simi Valley
Staff Report
September 21, 2026
To: City Council
From: Office of the City Manager
Jennifer Gutierres, Deputy Director of Human Resources
Subject: Amendment to the CalPERS Contract to include Pension Reform Staff Recommendation
It is recommended that the City Council:
1. Adopt a resolution of intention to approve an amendment to the contract between the Board of Administration, California Public Employees’ Retirement System, and City Council of the City of Simi Valley;
2. Direct the City Clerk to sign and submit the Certification of Governing Body’s Action;
3. Introduce for first reading the amendment to the contract between the Board of Administration, California Public Employees’ Retirement System, and the City Council of the City of Simi Valley; and
4. Place this matter on the October 12, 2026, City Council meeting agenda for final determination.
Background
Effective January 1, 2013, the California Public Employees’ Retirement System (CalPERS) mandated new benefit formulas to align with the changes set forth in the California Public Employees’ Pension Reform Act (PEPRA). These changes included reduced benefit formulas and increased retirement age provisions for all new miscellaneous (non-safety) and safety members. At the time of the implementation, no formal contract amendment was required for contracting agencies such as ours. Recently, CalPERS requested that the City amend its pension contract to incorporate the 2013 PEPRA language.
Discussion
The last amendment to the City's CalPERS contract took place on June 15, 2012 (Attachment A), to adjust benefits for future, first-time City Council members. Employees Agenda Item No.
Consent (7)
were referred to as Local Miscellaneous Members and Local Safety Members, with final compensation percentages of 2% at age 55 and 3% at age 55, respectively.
Following the mandated changes set forth in PEPRA, effective January 1, 2013, new employees were defined as New Local Miscellaneous Members (“New Miscellaneous”) and New Local Safety Members (“New Safety”). Benefits for New members were defined as 2% at age 62 for New Miscellaneous and 2.7% at age 57 for New Safety. Members prior to January 1, 2013, are referred to as Classic Local Miscellaneous Members (“Classic”) and Classic Local Safety Members (“Classic Safety”).
The proposed amendment (Attachment B) does not change the CalPERS benefits that employees are currently receiving. The amendment is intended only to incorporate language reflecting the provisions outlined under PEPRA and to reiterate the previous benefit structure for Classic and Classic Safety members. The amendment process requires the matter to appear before City Council on two separate meeting dates. For the first of two meetings, a Resolution of Intention (Attachment C) and Certification of Governing Body’s Action (Attachment D) are required.
Financial Impact
There is no financial impact.
City Council Priority
This item supports the City Council’s Excellent City Government Pillar of Excellence.
Suggested City Council Motion
I move to:
1. Adopt a resolution of intention to approve an amendment to the contract between the Board of Administration, California Public Employees’ Retirement System, and City Council of the City of Simi Valley;
2. Direct the City Clerk to sign and submit the Certification of Governing Body’s Action;
3. Introduce for first reading the amendment to the contract between the Board of Administration, California Public Employees’ Retirement System, and the City Council of the City of Simi Valley; and
4. Place this matter on the October 12, 2026, City Council meeting agenda for final determination.
2 Summary
On January 1, 2013, PEPRA took effect, changing how retirement benefits are applied to employees who became members of CalPERS on or after that date. Changes included reduced benefit formulas and increased retirement age provisions for New Miscellaneous and New Safety members. At the time of implementation, no formal contract amendment was required. Recently, CalPERS requested that we amend our pension contract to incorporate the 2013 PEPRA language. The amendment process is two steps, this being the first of the two.
Prepared by: Jamie Cross, Senior Human Resources Analyst Attachments
Attachment A - Contract dated June 15, 2012
Attachment B - Amendment to contract between the Board of Administration, California Public Employees’ Retirement System and City Council of the City of Simi Valley Exhibit
Attachment C - Resolution of intention to approve an amendment to the contract between the Board of Administration, California Public Employees’ Retirement System and City Council, City of Simi Valley Attachment D - Certification of Governing Body’s Action 3 4 Attachment A
5 6
7 8
EXHIBIT
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF SIMI VALLEY
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, hereinafter referred to as Public Agency, having entered into a contract effective July 13, 1970, and witnessed June 8, 1970, and as amended effective April 1, 1971, August 30, 1971, July 11, 1983, September 18, 1987, November 16, 1989, November 5, 1993, May 11, 1995, July 8, 1999, February 10, 2000, July 2, 2000, October 12, 2000, October 17, 2005, and June 15, 2012, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective June 15, 2012, and hereby replaced by the following paragraphs numbered 1 through 14 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 safety members and age 57 for new local safety members.
9 Attachment B
2. Public Agency shall participate in the Public Employees' Retirement System from and after July 13, 1970, making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency.
3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees’ Retirement System (CalPERS) and its trustees, agents and employees, the CalPERS Board of Administration, and the California Public Employees’ Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorney fees that may arise as a result of any of the following:
a. Public Agency’s election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency’s prior non-CalPERS retirement program.
b. Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency’s election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees’ existing retirement benefits, provisions or formulas.
c. Public Agency’s agreement with a third party other than CalPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees’ Retirement Law.
4. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement:
a. Local Police Officers (herein referred to as local safety members); b. Employees other than local safety members (herein referred to as local miscellaneous members).
10 5. Any exclusion(s) shall remain in effect until such time as the Public Employees' Retirement System determines that continuing said exclusion(s) would risk a finding of non-compliance with any federal tax laws or regulations. If such a determination is contemplated, the Public Employees' Retirement System will meet with the Public Agency to discuss the matter and coordinate any required changes or amendments to the contract.
In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System:
a. SCHOOL CROSSING GUARDS HIRED ON OR AFTER APRIL 1, 1971; b. WORK TRAINEES HIRED ON OR AFTER APRIL 1, 1971;
c. CITY COUNCIL MEMBERS ELECTED INTO OFFICE ON OR AFTER June 15, 2012.
6. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full).
7. The percentage of final compensation to be provided for each year of credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full).
8. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full).
9. The percentage of final compensation to be provided for each year of credited prior and current service as a new local safety member shall be determined in accordance with Section 7522.25(d) of said Retirement Law (2.7% at age 57 Full).
10. Public Agency elected and elects to be subject to the following optional provisions:
a. Section 20361.3 (Assistant City Attorney as an Elective Officer).
Legislation repealed said Section operative July 1, 1994. b Section 21024 (Military Service Credit as Public Service). c. Section 20042 (One-Year Final Compensation) for classic members only. 11 d. Section 21574 (Fourth Level of 1959 Survivor Benefits). e. Section 21548 (Pre-Retirement Option 2W Death Benefit) for local safety members only.
f. Section 21023.5 (Public Service Credit for Peace Corps, AmeriCorps VISTA, or AmeriCorps Service).
11. Public Agency, in accordance with Government Code Section 20790, ceased to be an"employer" for purposes of Section 20834, effective on July 11, 1983. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834.
12. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous and safety members of said Retirement System.
13. Public Agency shall also contribute to said Retirement System as follows:
a. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. b. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law.
14. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 12 15. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board.
B. This amendment shall be effective on the 12th day of Novmeber 2026,
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY _________________________________
MELODY BENAVIDES, CHIEF
PENSION CONTRACTS & PREFUNDING PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
CITY OF SIMI VALLEY
BY ________________________________
PRESIDING OFFICER
___________________________________
Witness Date
Attest:
__________________________________
Clerk
CalPERS ID: 4443252244
"PLEASE DO NOT SIGN EXHIBIT ONLY" 13
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF SIMI VALLEY
WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To include public Employees' Pension Reform Act language.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof.
By:_________________________________
Presiding Officer
_________________________________
Title
________________________________
Date adopted and approved
(Amendment)
CON-302
14 Attachment C
CalPERS-CON-12 Page 1 of 1
California Public Employees’ Retirement System www.calpers.ca.gov Financial Office | Pension Contracts & Prefunding Programs Division 888 CalPERS (or 888-225-7377) P.O. Box 942715, Sacramento, CA 94229-2715 TTY: (877) 249-7442 Certification of Governing Body’s Action
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the ____________________________________________________________________ of the (governing body)
_________________________________________________________________________ (public agency)
on ________________________.
(date)
_______________________________________
Clerk/Secretary
_______________________________________
Title
15 Attachment D