TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Teresia Zadroga-Haase, Director of Human Resources
SUBJECT:Title
Adopt Resolution No. 16-0052 to Amend the Contract Between the Board of Administration California Public Employees Retirement System and the City of Manhattan Beach to Provide Provisions of Retirement Law Section 20516 - Employee Cost Sharing (Human Resources Director Zadroga-Haase).
ADOPT RESOLUTION NO. 16-0052
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Recommended Action
RECOMMENDATION:
It is recommended that the City Council adopt Resolution No. 16-0052, a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System (CalPERS) and the City of Manhattan Beach, to include the provisions of retirement law Government Code section 20516 (Employees Sharing Cost of Additional Benefits) for the Police Officers' Association, Firefighters' Association and Police Management Association (Unions).
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EXECUTIVE SUMMARY:
During the 2015 collective bargaining agreement negotiations with the Firefighters' Association and subsequent negotiations with the Police and Police Management associations, City Council approved initiating the amendment process with CalPERS in order to change the manner in which employees make contributions toward the cost of their retirement benefits. The City must amend the contract with CalPERS to include retirement law Government Code section 20516(a) in order to allow employees to share the cost of "employer contributions" to CalPERS retirement system on a pre-tax basis.
CalPERS has a detailed process in order for an agency to amend its contract when the change in benefit affects the employees' contribution rate. Step 1 is for the Unions and City to agree to start the process to amend the CalPERS retirement contract. Step 2 requires the City Council to adopt a Resolution ...
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