Title
Adopt a Resolution of Intention to Approve an Amendment to the Contract between the Board of Administration of the California Public Employees’ Retirement System and the City of San Leandro to Include Provisions Pursuant to Government Code Section 20516 “Cost Sharing” for Unrepresented Executive Safety Employees
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
As permitted by Government Code Section 20516, employees may agree to pay a portion of the employer’s CalPERS contribution. In 2023, the City Council approved the participation of unrepresented executive safety members in the cost sharing program. Effective September 1, 2023, the employee cost share is 1%. For FY 2024-2025, the employee cost share will increase an additional 0.5%. CalPERS requires that the City Council adopt a new resolution each year when there is a change in the cost share percentage due to the unrepresented status of this group.
RECOMMENDATIONS
Staff recommends that the City Council approve an additional 0.5% employee cost share towards the employer’s contribution rate, which will result in a total employee cost share of 1.5% for unrepresented executive safety employees.
BACKGROUND
CalPERS mandates that any changes to the employee cost share for unrepresented groups must be formally approved by the governing body each year. This annual approval process ensures that adjustments to the cost-sharing requirements are reviewed and validated regularly within pension regulations.
Analysis
CalPERS requires that specific procedures be followed to amend an agency’s contract. The following steps are proposed to complete the contract amendment process:
1. The City Council must adopt a Resolution of Intention to amend the contract.
2. A secret ballot election among the employees affected must be held.
3. The Ordinance will be presented to the City Council for adoption on October 21, 2024.
Staff will present another resolution in 2025 when the cost share percentage is scheduled to increase again.
Previous Actions
• On April 3, 2023, by Resolution No. 2023-035, the City Council approved Employee Cost-Sharing under Government Code Section 20516 by Unrepresented Executive Safety Employees.
Financial Impacts
There is no fiscal impact with the approval of this resolution. The fiscal impact was incorporated into the budget when the Police Chief’s employment agreement was approved.
ATTACHMENTS
Attachment A: Resolution
Attachment B: Ordinance
Attachment C: Amendment to CalPERS contract
PREPARED BY: Yana Taran, Sr. Human Resources Analyst, Human Resources Department