City Council
MEETING DATE: 8/12/2015
TITLE:
Title
Ordinance Second Reading Amending the Contract with the California Public Employees' Retirement System
End
FROM:
Tami E. Scott, Administrative Service Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council conduct Second Reading, by Title Only, and adopt an Ordinance amending the contract between the City Council of the City of Cathedral City and the Board of Administration of the California Public Employees' Retirement System.
Body
BACKGROUND:
At the July 22, 2015 City Council meeting, Council approved the introduction of an Ordinance to Amend its contract with CalPERS to provide a cost sharing arrangement for designated employees. The amendment allows for increasing the member/employee contribution of all Classic Safety employees in the Cathedral City Fire Management Association (CCFMA). The increased Member contribution will provide for restoration of the Employer Paid Member Contribution (EPMC) at no immediate cost to the City. This amendment represents the last 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 Ordinance represents the last step required to implement a cost sharing arrangement that will provide for restoration of the EPMC for Fire Management at no immediate cost to the City. Specifically, CalPERS "Classic" Safety members of CCFMA will increase thei...
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