City Council Staff Report Page 1 of 3 September 22, 2026 Staff Report
Agenda Item No. 3.5
DATE: September 22, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving an Amendment to the Compensation and Benefit Plan for Unrepresented Employees Related to Retirement Benefits
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving an amendment to the Compensation and Benefit Plan for Unrepresented Employees to clarify and update the provisions governing employer-paid member contributions (EPMC) and employee cost sharing for CalPERS retirement benefits and make other minor revisions for clarification on classifications and to include the link to the posted salary schedule. These changes are not substantive and merely reflect actions already approved by the City Council.
STRATEGIC PLAN ALIGNMENT
This change supports Goal B, Governance and Organization Effectiveness, of the strategic plan in aligning local government best practices and supporting employee retention.
BACKGROUND
The Compensation and Benefit Plan for Unrepresented Employees applies to designated Department Head, Management, and Non-Management classifications. The Plan currently identifies the applicable classifications and provides that these positions receive compensation and benefits pursuant to the Plan and the City’s Compensation Plan and salary schedule.
Section 6.00 of the Plan addresses retirement benefits under CalPERS. The current Plan references Resolution No. 5885-22 and identifies the City’s EPMC provisions.
The proposed redlined amendments are intended to clarify this language and ensure that the Plan accurately reflects the City’s current administration of these provisions.
Agenda Item No. 3.5
City Council Staff Report Page 2 of 3 September 22, 2026 The City’s Human Resources Department, in coordination with the Finance Department and the City Attorney’s Office, reviewed and updated the Compensation and Benefit Plan in accordance with the guidance provided by the CalPERS Audit Resolution Unit to ensure the necessary guidance and appropriate language. CalPERS recommended that the City incorporate language consistent with the City’s existing EPMC resolution into the Compensation and Benefit Plan. This results in no substantive change.
DISCUSSION
The proposed revisions primarily affect Section 6.00, Retirement Benefits (CalPERS).
The amendments clarify the provisions governing Employer Paid Member Contributions (EPMC) for CalPERS Classic Members and distinguish the applicable EPMC provisions based upon employee membership status and applicable retirement formula. Specifically, the revised language identifies the City’s EPMC treatment for Classic Miscellaneous Employees hired on or before November 29, 2010, and for those hired on or after November 30, 2010. The revised language also expressly provides that the City does not pay and report EPMC for CalPERS New Members, consistent with Government Code Section 7522.34.
The proposed amendments also clarify the employee cost-sharing provisions associated with the CalPERS retirement plans. Rather than identifying a single employee contribution percentage for all employees within a retirement formula, the revised language recognizes that employee cost-sharing may vary by group.
The revisions further clarify that contribution levels may change based upon the CalPERS valuation report. This language is intended to recognize that CalPERS contribution requirements are subject to periodic actuarial valuation and that employee cost-sharing arrangements may also be affected by applicable negotiated agreements. The revised language therefore provides greater flexibility for the Compensation and Benefit Plan to accurately describe the City’s obligations and employee contributions as those amounts change over time.
The proposed amendments do not otherwise modify the substantive compensation and benefit provisions contained in the Plan. The Plan continues to provide the applicable retirement formulas and benefits for Classic Members and New Members. The change was requested by CalPERS.
The City recommends revising the Compensation and Benefit Plan for Unrepresented Employees to include pay and reporting for EPMC and to update the cost-sharing to reflect current levels.
FISCAL IMPACT
There is no additional fiscal impact, as salaries are based on the approved Classification and Compensation Plan and would remain so.
RECOMMENDATION
The City recommends that the City Council adopt a resolution approving amendments to the Compensation and Benefit Plan for Unrepresented Employees, as set forth in Exhibit Agenda Item No. 3.5
City Council Staff Report Page 3 of 3 September 22, 2026 A, to update and clarify provisions related to CalPERS Employer Paid Member Contributions (EPMC) and employee cost sharing.
Prepared by: Jaime Rabe, Human Resources Manager
Submitted by: Jason Castleberry, Human Resources Director Attachments
1. Draft Resolution
2. Exhibit A – Compensation and Benefit Plan for Unrepresented Employees (redlined)