City Council
MEETING DATE: 7/22/2015
TITLE:
Title
Resolution of Intention for a Contract Amendment between CalPERS and the City of Cathedral City
End
FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council adopt a Resolution of Intention to amend the City's retirement contract with CalPERS, which will allow increasing designated employees' CalPERS Member contribution through a cost sharing arrangement.
Body
BACKGROUND:
The amendment allows for increasing the member/employee contribution of all Classic employees in the Cathedral City Fire Management Association ("CCPMA"). The increased Member contribution will provide for restoration of the Employer Paid Member Contribution (EPMC) at no cost to the City. This Resolution of Intention represents the next step required by CalPERS to implement a cost sharing arrangement to accomplish this purpose.
DISCUSSION:
For over 20 years, a benefit provided to certain employee groups was that of the City paying the employee's (Member) CalPERS contribution and reporting such contribution as earnings. During the time of fiscal emergency, the employees gave up this benefit and contributed their own member contribution. Successor negotiations with Police Management in late 2014 resulted in the City investigating with CalPERS the possibility of restoring this benefit on a pre-tax cost basis to the employee, with no cost to the City.
The attached Resolution of Intention represents the next step required to implement a cost sharing arrangement that will provide for restoration of the EPMC for CCFMA employees at no cost to the City. Specifically, CalPERS "Classic" members of CCFMA will increase their member contribution in order to restore a 7% EPMC at no cost to the City.
In addition to adopting the attached Resolution of Intention, an Ordinance is being presented as the next step in amending the City's contract with CalPE...
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