City Council
MEETING DATE: 2/24/2016
TITLE:
Title
Correction to a Contract Amendment with CalPERS
End
FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve a resolution authorizing a correction to the amendment to the contract between the Board of Administration of the California Public Employees' Retirement System and the City Council of Cathedral City
Body
BACKGROUND:
In the spring of 2015 City Council approved a Resolution for a contract amendment with CalPERS that provided for cost-sharing of the City’s CalPERS retirement contributions by “Classic” members of the Non-Represented employee group and “Classic” members of the Cathedral City Police Management Association to be effective in July 2015. Subsequently, Council also approved a contract amendment providing the same cost-sharing provisions with “Classic” members of the Cathedral City Fire Management Association to be effective September 2015. City staff worked closely at the direction of CalPERS staff to ensure the proper forms and language were used to effect these amendments
DISCUSSION:
Current Issue- This is essentially a housekeeping item due to CalPERS payroll system's inability to account for the "premium" the City is collecting as a cost share for paying and reporting a portion of the member contribution as an Employer Paid Member Contribution. CalPERS prepared all previous resolutions and the current one before you because when the amendments previously agreed to were attempted to be implemented, the City’s Payroll Coordinator discovered problems with the associated CalPERS formulas. While the City was able to make the appropriate payments/contributions to CalPERS, certain formulas precluded the CalPERS computer system from posting the appropriate amounts to individual employees’ CalPERS accounts. For several months City staff and PERS staff collaborated on identifying exactly where the problem(s) existed and how best to resolve them.
Ultimately, CalPERS provided the Resolution before you to correct the contract amendments. This Resolution provides narrative definitions instead of specific reference to percentages which were being misread by the PERS system when attempting to post contributions to a member’s account. The narrative definitions will accommodate percentage nuances of cost-sharing contributions now and as those percentages change in the future. Nothing in the resolution impacts or changes the agreed upon percentages in the corresponding Memorandums of Understanding to the affected employees
FISCAL IMPACT:
None
ATTACHMENTS:
CalPERS Resolution