Cities Index.
Presentation to Council RTC No 25-0902 - 20251028

Sunnyvale City Council
October 28, 2025

Document
Presentation to Council RTC No 25-0902 - 20251028
Meeting
October 28, 2025
Body
Sunnyvale City Council
Original file
131 KB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

RTC 25-0902:

Paying and Reporting the Value of CalPERS
Employer Paid Medical Contribution & Increasing
the Salary Ranges for Department Directors
October 28,2025
2 • The City participates in CalPERS which provides employees with a defined benefit pension upon retirement.
• Two overarching pension categories – pensions for “Safety” employees and pensions for “Miscellaneous” employees.
• Pensions are funded by contributions from both the employee and the City.
• The City currently pays a portion of Classic employees’ CalPERS contribution (“Employer Paid Member Contribution” or “EPMC”) for all groups except the Public Safety Officers Association
Background
3 More About EPMC
Classic Member – two tiers
(hired 2012 or earlier)
• Member contribution
 Misc: 7% (Tier 1), 8% (Tier 2)
 Safety: 9%
• City pays:
 Misc: 4%
 Safety: 6%
• Employee pays remaining %
PEPRA Member – single tier
(hired 2013 or later)
• Member contribution (adjusted
annually by CalPERS)
 Misc: 7.5%
 Safety: 12.75%
• City is prohibited from paying
any share
• Employee pays: Full share
4 • City originally agreed to pay EPMC in
exchange for salary increases,
• Disparity in pay for the same person
completing the same duties
• PSOA negotiated removal of EPMC
effective July 2025
• City in discussions with other labor
groups;
• Overall City workforce now 61%
PEPRA and rising
Organizational Context
Why the Change?
• Equity
• Transparency
• Consistency
5 • Effective December 21, 2025, for Category F and City Manager  Note: City Manager follows Category F for benefits as outlined in the employment agreement
• Classic Category F employees will pay the full CalPERS employee share (7% – 9%) with the first pay period in 2026
• No change to PEPRA employees (already paying 7.5% - 12.75%) Impact of EPMC Removal for Directors & City Manager
6 • Pay philosophy (2017):
 Maintain equity by aligning Category F increases with PSMA  Does not apply to the City Manager; pay range determined by the Council • This year (2025):
 PSMA = 11.02% → Staff instead recommends 6.75%
 Lower salary range adjustment will lead to compaction between PSMA and Category F Directors
• Note: Increased salary ranges do not mean automatic increase for incumbents
Salary Range Adjustments
7 • Council to consider:

1. Remove EPMC for Category F and City Manager effective December 21, 2025 (first pay period in 2026)

2. Revise salary ranges for Category F with a 6.75% increase Recommendation

← All documents from this meeting