Title
Report regarding a Resolution of Intention and Introduction of an Ordinance amending the contract between the Board of Administration, California Public Employees' Retirement System and the City of South San Francisco to implement the ability for Classic Local Miscellaneous members in the Executive Management Unit to pay a portion of the employer share of their CalPERS pension costs. (Leah Lockhart, Human Resources Director)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a Resolution of Intention and introduce an ordinance to amend the City's contract with CalPERS in order to implement the Council's adoption of the Executive Management Unit Compensation Plan, 2017-2022, which included a provision for all Classic Local Miscellaneous employees to contribute to the employer share of their CalPERS pension costs.
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BACKGROUND
The City contracts with CalPERS as the provider of the City's pension benefits for employees in its bargaining units. On January 1, 2013, the State passed pension reform where all "new members" receive a new, lower cost formula. Any employees hired before January 1, 2013 ("Classic members") remain in the pension formulas in place at the time of passage of pension reform.
The City funds its pension obligations through a combination of employee and employer contributions. Recognizing that the City's Classic member pension obligations have increased significantly over the past several years, the City's Public Safety units partnered during labor negotiations to create a framework where Classic Public Safety member employees would bear higher contributions to fund their CalPERS pension by paying a portion of the Employer's costs for their benefit. The Executive Management Unit's Public Safety members began cost sharing in 2017 and Local Miscellaneous members agreed to increase their contributions as well, beginning the first full pay period in July 2020 (beginning July 10, 2020).
Classic Local Mis...
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