TO:
Honorable Mayor and Members of the City Council
THROUGH:
David N. Carmany, City Manager
FROM:
Cathy A. Hanson, Human Resources Director
SUBJECT:Title
Report on 960-hour Policy Governing Part-time Employees and Benefits
RECEIVE AND FILE
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council receive and file this report.
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FISCAL IMPLICATIONS:
The fiscal impact will vary depending on the number and level of part-time non-safety employees enrolled into the statewide Public Employees Retirement System (PERS). The City’s cost will be 9.680% for new members (those who have never been in PERS) and 11.014% for part-time employees who have been in PERS in the past.
BACKGROUND:
The City maintains part-time positions in almost every department throughout the City. The Parks and Recreations Department historically employs the most part-time employees.
In an effort to manage retirement costs as well as ensure part-time positions are being utilized for part-time work, departments have been asked to limit the number of hours of individual part-time staff to no more than 960 hours per fiscal year (July 1 to June 30).
Part-time individuals who work over 1000 hours in a fiscal year are automatically enrolled in the PERS retirement system. The part-time employees who work less than 960 hours per fiscal year are enrolled in a Public Agency Retirement Services (PARS) plan, which is an alternative retirement benefit plan. Part-time employees enrolled in PERS pay an employee contribution portion and the City pays an employer contribution portion. Part-time employees enrolled in PARS pay the entire contribution rate. As of January 1, 2013, non-safety employees pay a 6.25% contribution and the City currently pays 9.680% for a total PERS contribution of 15.93%. Employees who have previously been members of PERS pay a 7% contribution rate and the City pays 11.014% fo...
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