Full Text
AGENDA BILL Agenda Item No. S(G) Date: August 21, 2012 To: El Cerrito City Council From: Sukari Beshears, Employee Services Manager Subject: Paying and Reporting the Value of Employer Paid Member Contributions for Management Employees ACTION REQUESTED Adopt a resolution to amend paying and reporting the value of employer paid member contributions for management employees. · BACKGROUND/ANALYSIS On June 19, 2012, the City Council approved a modification to pension plan benefits and reimbursement for management employees regarding Employer Paid Member Contributions (EPMC). The modification called for the management group to increase their share of the member contribution from 1% to with the remaining 4% of member contributions to be paid as EMPC and reported as additional compensation. Staff prepared a resolution to modify the pension plan benefits for management employees and it was approved by the City Council on June 19, 2012. However, CalPERS requires the governing body of the City of El Cerrito to adopt a separate resolution to amend paying and reporting the value of the employer paid member contributions and has provided specific wording that is included in the resolution presented with this report. FINANCIAL CONSIDERATIONS The management group's increase to their share of the member contribution will save the City approximately $93,000 Citywide ($64,000 in the General Fund). Scott Hanin, City Manager Attachment: 1. Resolution ---PAGE BREAK--- RESOLUTION 2012-XX Agenda Item No.5(G) Attachment 1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AMENDING THE PAYMENT AND REPORTING OF THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR MANAGEMENT EMPLOYEES WHEREAS, the governing body of the City of El Cerrito has the authority to implement Government Code Section 20636(c)(4) pursuant to Section 20691; and WHEREAS, the governing body of the City of El Cerrito has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; and WHEREAS, to address a deficit in the general fund and contribute to a reduction in future pension liabilities to the City of El Cerrito, the management employees of the miscellaneous group elected to reduce the percentage of Employer Paid Member Contributions (EPMC) from 7% to 4% beginning with FY2012-13; and WHEREAS, one of the steps in the procedures to implement Section 20691 is adoption by the governing body of the City of El Cerrito of a Resolution to amend payment of EPMC and reporting the value of said EPMC; and WHEREAS, the governing body of the City of El Cerrito has identified the following conditions for the purpose of amending the payment ofEPMC: 1) This new benefit shall apply to all management employees of the miscellaneous group. 2) This new benefit shall consist of the City paying 4% instead of 7% of the normal contribution as EPMC, and reporting the same percent (value) of the compensation earnable. 3) CalPERS requires additional and specific wording in this resolution to include "Payment of EPMC and reporting the value of EPMC on compensation earnable is on pay rate and special compensation except special compensation delineated in Government Code Section 20636( 4) which is the monetary value of EPMC on compensation earnable {excluding Government Code Section 20636(c)(4)} as additional compensation." 4) The effective date of this Resolution shall be June 24, 2012. NOW THEREFORE, BE IT RESOLVED, that the governing body ofthe City of El Cerrito elects to amend payment and report the value of the EPMC, as set forth above. ---PAGE BREAK--- Agenda Item No.S(G) Attachment 1 I CERTIFY that at a regular meeting on August 21, 2012, the El Cerrito City Council passed this resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: IN WITNESS of this action, I sign this document and affix the corporate seal of the City ofEl Cerrito on August XX, 2012. Cheryl Morse, City Clerk APPROVED: William C. Jones III, Mayor