HomeMy WebLinkAbout6.7 Cal PERS Amend ContractCITY CLERK
- File # 1:11TIkId-
AGENDA STATEMENT )e (0 'S'a
CITY COUNCIL MEETING DATE: June 21, 2005
SUBJECT: Public Hearing: Amendment to the City's Retirement Contract with the
Board of Administration of the California Public Employees' Retirement
System (Ca1PERS). Report Prepared by: Julie Carter, Assistant to the City
Manager
ATTACHMENTS: 1. Ca1PERS Resolution of Intention
2. Resolution for Paying and Reporting the Value of Employer
Paid Member Contributions (EPMC)
3. Resolution for an Employer Pick -Up Internal Revenue Code
(IRC) 414 (h) (2)
4. Ordinance
RECOMMENDATION: 1. Open the Public Hearing
2. Receive Public Testimony
3. Close the Public Hearing
4. Deliberate
5. Adopt Resolutions
6. Waive reading and INTRODUCE Ordinance
FINANCIAL STATEMENT: Sufficient funding for the first year cost of the contract amendment
has been included in the Fiscal Year 2005-2006 Budget. See below
for full discussion on financial impact.
DESCRIPTION: Each, year, the City Manager's Staff conducts a wage and benefit
survey of approximately 33 Bay Area local government agencies. This survey is performed in an effort to
keep the City's wage and benefit structure competitive with the market in which the City competes for
labor.
The City currently contracts for retirement benefits with the California Public Employees' Retirement
System (CaIPERS) at the 2% at 55, Single Highest Year benefit level. During the recent market survey on
retirement benefits the City discovered that 31 of the 33 Agencies the City includes in its salary survey
have a Ca1PERS retirement system. Of those 31 Agencies 22 or 71 % have a retirement enhancement
above the City's current 2% @ 55 formula. With respect to the 13 Alameda County Cities (not including
Dublin) 11 or 85% have a retirement enhancement above the City's current 2% @ 55 formula.
COPIES TO:
ITEM NO. &Tr
H/cc-forms/agdastmt.doc 1
During this years discussions with employees' rcgarding wage and benefits, the City agreed to take thc
necessary steps to amend its CalPERS contract to include 2.7% at 55 effective August 20, 2005. One of
thc stcps in the process to amend the CalPERS contract is thc adoption of the CalPERS Resolution of
Intention (Attachment 1) giving notice of intcntion to approve an amendment to said contract.
BENEFIT ENHANCEMENT COSTS
There arc scvcral ways to measure costs with regard to this retiremcnt bcnefit enhancement.
The present value of bcncfits represents the total dollars needed today to fund all future benefits for
currcnt members of the retirement plan. The incrcasc in this amount must be paid by increases in future
employer and future employee contributions. As such, the change in the present value ofbencfits (as listed
below) due to the retiremcnt enhancement represents the total "cost" of thc amendment for current
members ofthc rctirement plan.
Other ways to measnre the costs are through the change in the employer and employee contribution rates
and in the change to the "desirable" current funding level, the accrued liabilitv. The change in the accrued
liability is the "make-up" cost rcquired to bring the "ideal" level of the City's assets in CalPERS up to the
level they would have been if the City had been in the 2.7% at 55 formula all along. This amount is paid
off over approximately 20 years as part of the increase in the employer contribution rate.
As mentioncd, CalPERS member (employee) rates also increase as a result of the 2.7% at 55 form ilia.
There is a 1 % of reportable earnings change to provide the 2.7% at 55 benefit formula. The member
(employee) rate increases from 7% to 8%.
The actuary study for this CalPERS benefit enhancement was completed in January 2005 bascd on the
same June 30, 2003 data that was used to compute the employer rate for Fiscal Year 2005-2006. The
City's cmployer rate for Fiscal Year 2005-2006 is 11.9% of payroll. The City's employer rate would
increase in order to fund the new retirement bcnefit level by 4% of payroll. The revised Fiscal Ycar
2005-2006 employer rate will be 15.9%. As mentioned above, there is also a 1 % increase in the member
(employee) rate to provide the 2.7% at 55 formula. The combined change in hoth rates is 5%.
State and federal statutes provide various provisions for paying and reporting membcr (employee)
contributions. These include:
1. Paymcnt of Member Contributions
2. Paying and Reporting the Valuc of EPMC
3. Converting EPMC to Salary in the Final Compensation Period
4. Internal Revcnuc Code Section 414 (h) (2)
Currently the City pays the member (employee) rate of 7%. Dublin City employees havc agrecd to pay tile
equivalent of 40% of the total cost to implement the 2.7% at 55 retirement benefit enhancement. This will
be accomplished by the employees paying onc percent (1 %) through a direct payment to CalPERS through
the City's payroll process and one percent (1 %) to be paid from future salary increases.
It is also proposed that the City elect to allow thc I % employee deduction to be paid on a pre-tax basis
under IRC Section 414 (h) (2). Thc cnabling Resolutions to implement the City paying and reporting the
value ofEPMC and IRC Section 414 (h) (2) are found as Attachment 2 and 3 in this report.
d-- 003
RESOLUTION NO. - 05
/66/1
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 DUBLIN
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 provide Section 21354.5 (2.7% @ 55 Full formula) for
local miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of inlenlion 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 hereot
PASSED, APPROVED AND ADOPTED this 2181 day of June, 2005, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Janet Lockhart, Mayor
ATTEST:
(Am8ndm8nt) Kay Keck, City Clerk
CON-3Q2 (Rev. 4/96)
K2fGl6-21-05freso CalPERS (Item 6.7)
(p-Zl-O'S (0,7
ATTACHMENT 1
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CalPERS
EXHIBIT
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Dublin
.
The Board of Administration, California Public Employees' Relirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
February 1, 1983, and witnessed December 13, 1982, and as amended effective April
12, 1986, November 21, 1987 and July 1, 2000 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July 1, 2000, and hereby replaced by the following paragraphs
numbered 1 through 12 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 local miscellaneous members.
2, Public Agency shall participate in the Public Employees' Retirement
System from and after February 1, 1983 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 nol 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.
~.
(: DO NOT SIGN "EXHIBIT mL
3 ðb"
3. 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. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. 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. FIREFIGHTERS; AND
b. POLICE OFFICERS.
5. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after the effective date of this
amendment to contract shall be determined in accordance with Section
21354 of said Retirement Law (2% at age 55 Full).
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after the effective date of this amendment to contract
shall be determined in accordance with Section 21354.5 of said
Retirement Law (2.7% at age 55 Full).
7. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20938 (Limit Prior Service to Members Employed on
Contract Date).
b. Section 21573 (Third Level of 1959 Survivor Benefits).
c. Section 20042 (One-Year Final Compensation).
8. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
9. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability wilh
respect to local miscellaneous members of said Retirement System.
,
if {Jò II
10.
Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single accounl, based on term insurance rates, for survivors of all
local miscellaneous members.
b. 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.
c. 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.
11. 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 investigalion and
valuation required by said Retirement Law.
12. 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 efff!-.6t~ve on the day of
~\"".
BOARD OF ADMINISTRATI~l!.~ ,S~· CITY COUNCIL 0-
PUBLIC EMPLOYEES' REr\~ENT SYSTEM CITY OF DUBLIN (:....~
~~. ~
BY ,"\. BY ~
LORI MCGART~N ':C:TING CHIEF PRESIDING OF
ACTUARIAL & EYER SERVICES DIVISION &
PUBLIC EMPL S' RETIREMENT SYSTEM _.<..::... '. ~
~ <::$ Witness",~~
~~J~ ~
, .., Attest
Clerk
AMENOMENT ER# 1329
PERS-CON-702A (Rev, 8\0.)
5q)1
RESOLUTION NO. - 05
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
ADOPTING A RESOLUTION FOR PAYING AND REPORTING THE VALUE OF EMPLOYER
PAID MEMBER CONTRIBUTIONS
WHEREAS, thc governing body of the City of Dublin has the authority to implement Govcrnment
Code Section 20636(c)(4) pursuant to Section 20691; and
WHEREAS, the governing body of the City of Dublin has a written labor policy or agreement
which specifically provides for the nOlmal member contributions to be paid by the employer, and reported
as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the
govcrning body of the City of Dublin of a Resolution to commence paying and reporting thc value of said
Employer Paid Member Contributions (EPMC); and
WHEREAS, the governing body of the City of Dublin has identified the following conditions for
thc purpose of its election to pay EPMC:
. This bencfit shall apply to all employees.
· This benefÏt shall consist of paying 7% of the normal contributions as EPMC, and
reporting the same percent (value) of compensation earnable [excluding Government Code
Section 20636(c)( 4)] as additional compensation.
· Tbe effective date of this Resolution shall bc August 20, 2005.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin elects to pay
and report thc valuc of EPMC, as set forth above.
PASSED, APPROVED AND ADOPTED tlùs 21st day of June, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
--~,~.
~.-,~~,,~,-~.-.,-
City Clerk
ATTACHMENT 2
æ~1I
RESOLUTION NO. - 05
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
*********
ADOPTING AN EMPLOYER PICK-UP RESOLUTION FOR PRE-TAX PAYROLL
DEDUCTIONS
WHEREAS, the City of Dublin has the alIthority to impJemcnt thc provisions of section 4l4(h)(2)
ofthe Interna] Revenue Code (IRC); and
WHEREAS, the Board of Administration of the Public Employees' Retirement System adopted its
resolution re section 414(h)(2) IRC on September 18, 1985; and
WHEREAS, the Internal Revenue Service has statcd in December 1985, that the implementation
of thc provisions of section 4l4(h)(2) IRC pursuant to the Resolution of the Board of Administration
would satisfY the legal requirements of section 414(h)(2) IRC; and
WHEREAS, the City of Dublin has determined that even though thc implementation of the
provisions of section 4l4(h)(2) IRC is not required by law, the tax benefit offered by section 414(h)(2)
IRC should be provided to its cmployccs who are members of the Public Employees' Retirement System:
NOW, THEREFORE, BE IT RESOLVED:
1. That the City of Dublin will implement the provisions of section 414(11)(2) h1ternal
Revenue Code by making employee contributions pursuant to California Government Code
section 20691 to thc Public Employees; Retirement System on behalf of its employccs who
are members of the Public Employees Retirement System. "Employcc contributions" shall
mean those contributions to the Public Employees' Rctircment System which are deducted
from the salary of employees and are crcdited to individual employee's accounts pursuant
to California Govcrnment Code section 20691.
2. That thc contributions made by the City of Dublin to the Public Employccs' Rctirement
System, although designated as employee contributions, are being paid by the City of
Dublin in lieu of contributions by the employees who are members of the Public
Employees' Retirement System.
3. That cmployccs shall not have the option of choosing to receive the contributcd amounts
directly instead of having them paid by the City of Dublin to thc Public Employees'
Retirement System.
4. That the City of Dublin shall pay to the Public Employccs' Retirement System the
contributions designated as employee contributions from the same source of funds as used
in paying salary.
5. That the amount of the contributions designated as employcc contributions and paid by the
City of Dublin to the Public Employees' Retirement Systcm on behalf of an employee shan
be the entire contribution rcquircd of thc cmployee by the Public Employees' Retircment
Law (California Government Code sections 20000, et seQ.).
A TT ACHMENT 3
1SVII
6. That thc contributions dcsignated as employee contributions made by the City of Dublin to
the Public Employees' Retirement Systcm shall bc treated for all purposes, other than
taxation, in the sanle way that member contributions are treated by thc Public Employees'
Retirement System.
7. That the effective date of the Pre-Tax Payroll Deduction Plan is August 20, 2005.
PASSED, APPROVED AND ADOPTED this 21 st day ofJune, 2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
A TT ACHMENT 3
B (;).)11
c
ORDINANCE NO. - 2005
AN ORDINANCE OF THE CITY OF DUBLIN AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF DUBLIN AND THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS:
Section 1:
ADOPTION OF CONTRACT AMENDMENT
The adoption of the contract amendment, a copy of which is attached hereto as Exhibit A and
incorporated herein, between thc City Council of the City of Dublin and the Board of Administration of
thc California Public Employees' Retirement System is hereby authorized.
Section 2:
EXECUTION OF AMENDMENT
The Mayor of the City of Dublin is hereby authorized, empowered and directed to execute said
contract amendment for and on behalf of the City of Dublin.
Section 3.
EFFECT: POSTING
This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to thc
expiration of fiftccn (15) days from the passage thereof, the City Clerk of the City of Dublin shall cause
this Ordinance to be posted in at least three (3) public places in thc City of Dublin in accordance with
Section 38933 of the Government Code oflhe State of California.
PASSED AND ADOPTED by the City Council of the City of Dublin on this _ day of
2005.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
~_._-
-
City Clerk
ATTACHMENT 4
,I
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CalPERS
EXHIBIT A
California
Public Employees' Retirement System
.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Dublin
.
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contracl effective
February 1, 1983, and witnessed December 13, 1982, and ¡:IS amended effective April
12, 1986, November 21, 1987 and July 1, 2000 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 11 are hereby stricken from said contract as executed
effective July 1, 2000, and hereby replaced by the following paragraphs
numbered 1 through 12 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 local miscellaneous members.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after February 1, 1983 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.
PLEASE DO rWT SIGN "EXHIBIT m:
;0 c¿) I
3. 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. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. 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. FIREFIGHTERS; AND
b. POLICE OFFICERS.
5. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after the effective date of this
amendment to contract shall be determined in accordance with Section
21354 of said Retirement Law (2% at age 55 Full).
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after the effective date of this amendment to contract
shall be determined in accordance with Section 21354.5 of said
Retirement Law (2.7% at age 55 Full).
7. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20938 (Limit Prior Service to Members Employed on
Contract Date).
b. Section 21573 (Third Level of 1959 Survivor Benefits).
c:. Section 20042 (One-Year Final Compensation).
8. Public Agenc:y, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834
9. 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 members of said Retirement System.
//6() 1/
10. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account. based on term insurance rates, for survivors of all
local miscellaneous members.
b. 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.
c. 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 cosls of
the periodic investigation and valuations required by law.
11. 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. 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.
..,
....J\.
B. This amendment shall b~~flètive on the day of
<\.\;) "
BOARD OF ADMINIST~:;¡:l~ CITY COUNCIL ,,\~
. PUBLIC EMPLOYEES. :~TIREMENT SYSTEM CITY OF DUBLIN ~ \5'
~'\. ~ ~':v
~ ~~
BY ~ Ç..~,' BY ""~\,r
LORI MCGARJfð"ND, ACTING CHIEF PRESIDING OF..E:~eR
ACTUAR-'-Ah'J. ffi''ËMPLOYER SERVICES DIVISION ~'-.j
PUBLlC~._.. LOYEES' RETIREMENT SYSTEM ~~~)
! '\;,,) Witne e
,'I
v ~.!v
.., !,.:..,.....'
Attest
Clerk
AMENDMENT ER# 1329
PERS.CON-702A (Rev. 8\02)
The City must certify compliance under Government Code Section 7507 that the future annual costs ofthc
proposcd CalPERS contract amcndment were made public. The following costs were determined by a
CalPERS actuary valuation of the City's retirement plan:
Change in the Present Value of Benefits
Change in the Accrued Liability
Change in the Total Employer Rate
Change in the Total Employee Rate
$2,449,230
$1,111,757
3.938% (4.0%)
1.0%
The increase in CalPERS retirement costs in Fiscal Year 2005"2006 is $291,390. This is offset by
approximately $121,109 in costs shared by City employees. This results in a total first year cost of
$170,281.
ORDINANCE INTRODUCTION
Following the Resolution of Intention to amend the City's contract with CalPERS an Ordinance must be
introduced and adopted. The attached Ordinance (Attachment 4) amends the contract between the City
Council of the City of Dublin and thc Board of Administration of the California Public Employees'
Retirement System (CalPERS) to provide for 2.7% at 55 formula. The contract amendment will have an
effective date of August 20, 2005.
The Ordinance also provides for the noticing requirement pursuant to Government Code Section 38933.
This Ordinancc will bc prcscnted at the City Council Meeting of July 19, 2005 for adoption.
In summary, as the City's survey indicated, recruiting qualified individuals within the Tri-Valley area has
become increasingly more difficult for professional and management positions espccially due to a
shrinking labor pool and thc high cost of housing in the Bay Area. This high cost of housing makes it
extremely difficult to attract candidates from areas outside the Tri-Valley area. Many cities have switched
to the 2.7% at 55 retirement henefit formula under CalPERS. Several indicatcd that they changed to the
plan in order to be competitive with other jurisdictions for recruiting purposes. The City Manager and his
Staff have met with all regular employees to discuss the proposed amendment to the CalPERS contract
and there was a majority agreemcnt that City cmployccs agrccd to pay 2% of the 5% increase in CalPERS
rates associatcd with implemcnting 2.7% at 55. One percent (1 %) will be paid directly to CalPERS and
one percent (1 %) will be paid from future salary increases. This agreement amounts to the employees
picking up the equivalent of 40% of the cost of thc 2.7% at 55 rctircment enhancement. The cost sharing
agreement with City employees will be permanent.
Staff recommends that the City Council open the Public Hearing, receive public testimony, close the
Public Hearing, deliberate, adopt the Rcsolutions (Attachment 1-3), and waive reading and INTRODUCE
Ordinance.
"3 005