RESOLUTION AUTHORIZING THE CONTINUED PAYMENT OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM

SUBJECT:

RESOLUTION AUTHORIZING THE CONTINUED PAYMENT OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM

RECOMMENDATION: That the City Council adopt the attached resolution authorizing the City to continue paying Employer Paid Member Contributions (EPMC) to the California Public Employees Retirement System (CalPERS) pursuant to Government Code Section 20691.

COUNCIL GOALS: Operate in a Businesslike Manner

• Maintain operating systems and controls that ensure sound fiscal management.

FISCAL IMPACT: To comply with Government Code Section 20691, CalPERS must have documentation from member agencies designating that the agency may pay all or a portion of the normal contributions required to be paid by agency employees. The City does not report this benefit as special compensation. This action has no direct fiscal impact as it only restates the City’s current practice.

BACKGROUND: The City participates in defined benefit retirement plans administered by CalPERS. As part of memoranda of understanding with the City’s employee bargaining units and the benefit packages provided to unrepresented employees, the City pays 100% of the normal member contributions, known as EPMC, to CalPERS for all employees of the Miscellaneous and Safety groups. The normal member contributions are 8% for employees in the Miscellaneous group and 9% for employees in the Safety groups.

The City was informed by CalPERS that a resolution is required to be on file with CalPERS authorizing the payment of EPMC to CalPERS. As such, this action ensures the City is in compliance with the documentation requirements of CalPERS. This action does not change any terms or conditions of employment and does not have any fiscal impact to the City.

STAFF MEMBER PRESENTING: Linda Matthews, Human Resources Director