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Report regarding a resolution approving the Compensation Plan for the Public Safety Management Unit, dated July 1, 2017 through June 30, 2022 (LaTanya Bellow, Human Resources Director)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving the Compensation Plan for the Public Safety Managers unit dated July 1, 2017 through June 30, 2022.
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BACKGROUND/DISCUSSION
This Compensation Plan was negotiated within the parameters authorized by the City Council, and agreed by the unit’s membership on June 15, 2017. Attached is the proposed Compensation Plan incorporating the agreed-upon terms and conditions of employment for the unit and a summary of the substantive terms of the Compensation Plan.
FUNDING
The Compensation Plan provides for across-the-board salary adjustments that total 15 percent over a five-year contract. Specifically, adjustments are 3 percent of base pay for all employees, effective the pay period including July 1, 2017; the employees will receive an adjustment pursuant to a salary survey, or an adjustment commiserate with subordinate personnel’s salary survey to avoid compaction, or 3 percent, whichever is greater, effective the first full pay period of July 2019; the employees will receive 3 percent, effective the first full pay period of July 2020; the employees will receive 3 percent, effective the first full pay period of July 2021. The across-the-board increases for 2017 have been reflected in the Fiscal Year (FY) 2017-18 Proposed Budget. Additionally, effective July 1, 2017, the Fire Marshal will receive a 1.8 percent equity adjustment to bring that classification to parity with the 40-hour Battalion Chiefs.
The City currently pays 100 percent of the employer share for the CalPERS pension costs for Classic Employees. For the first time, in addition to the Classic Member’s Employee Share for their CalPERS pension retirements, all Classic CalPERS unit employees will share in the employer pension costs. First, the Compensation and Benefit Plan provides long-term structural changes in the City’s Safety pension costs for Classic Members. Currently, Classic Safety Members pay 9 percent toward their 3 percent @50 or 3 percent @55 formulas. For Classic Safety Members, the employee cost share would be phased in at 1 percent effective the first pay period in July 2017 (for a total employee contribution of 10 percent), an additional 1 percent effective the first fully pay period in July 2018 (for a total employee contribution of 11 percent), and an additional 1 percent effective the first fully pay period in July 2019 (for a total employee contribution of 12 percent). Effective July 1, 2020, the Classic Safety Members will be obligated to pay 3 percent of the employer rate, plus 9 percent of the employee contribution for a total employee commitment of 12 percent. As for New Members, as designated by CalPERS shall pay 50 percent of the total normal cost rate, in accordance with Government Code 7522.30.
CONCLUSION
It is recommended that the City Council Approve the Compensation Plan for the Public Safety Managers unit dated July 1, 2017 through June 30, 2022.
Attachment: Compensation Summary -PSM