CalPERS Contract Amendment for Cost Sharing January 20, 2015 Background • 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. Note: 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 amendment. • After election, adoption of final ordinance on February 17. • 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. Recommendation • 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.