CalPERS Contract Amendment for Cost Sharing

CalPERS Contract
Amendment for
Cost Sharing
January 20, 2015
• Bargaining unit contracts for Mid-Managers, First Level
Managers, Police Officers’ Association and Police
Sergeants transitions out a 5% furlough and transitions in
cost sharing towards the CalPERS retirement benefits for
classic members.
• This is the first of two cost sharing amendments required
by the bargaining contracts.
• New CalPERS members are already paying towards their
share of retirement benefit costs in accordance with
pension reform.
Unrepresented Confidentials and Executive Team followed Mid-Managers
agreement to cost share and are included in this contract amendment.
CalPERS Cost Sharing
Requirements and Timeline
• City is required to amend CalPERS contract for the cost
sharing provision.
• Resolution of Intent and Ordinance is required to amend
CalPERS contract.
• Employee election to solidify the cost sharing
• After election, adoption of final ordinance on February
• On March 21, these employees will begin payments
towards their retirement benefits while one 5% furlough
program will stop.
Fiscal Impact
• $384,000 in savings to City budget which is offset by
$723,000 in additional costs due to furlough elimination.
• Adopt a Resolution of Intention to approve an
amendment with CalPERS for classic members cost
sharing towards the employer rate per the applicable
negotiated contracts for the Mid-Managers, Police
Officers’ Association, Police Sergeants, First Level
Managers bargaining units, and the unrepresented
Confidentials and Executive Team.
• Introduce an Ordinance amending the City’s contract
with CalPERS that will implement the cost sharing
arrangements with the above listed bargaining units and
unrepresented units and waive the first reading.