Title
Adoption of Resolution Approving Letter of Understanding between the Alameda Police Officers' Association and the City of Alameda. (Human Resources 10025060)
Body
To: Honorable Mayor and Members of the City Council
From: Adam Politzer, Interim City Manager
EXECUTIVE SUMMARY
As a contracting agency of the California Public Employees' Retirement System (CalPERS), the City of Alameda (City) is subject to statutory and regulatory requirements that govern whether compensation is reportable for pension calculation purposes. The Public Employees' Retirement Law (PERL), the Public Employees' Pension Reform Act of 2013 (PEPRA), and the California Code of Regulations (CCR) require that contracting agencies must accurately reflect information related to compensation items in approved documentation. For compensation paid in addition to base salary, this must include the relevant intent, eligibility criteria, and conditions of payment.
Through a compliance review for one Alameda Police Officers' Association (APOA) member, CalPERS identified reported compensation that did not comply with the PERL. The Letter of Understanding makes clarifications in order to bring the related language into compliance.
APOA members have ratified this agreement.
BACKGROUND
The City received a determination letter dated July 15, 2025, stating that compensation used in the pension calculation for one APOA member was not compliant and, therefore, would be excluded. The excluded compensation related to retention pay, and additional compensation for working on holidays as a part of employees' regular schedule. These compensation items were excluded because the supporting language in the APOA memorandum of understanding ("MOU") does not comply with the PERL.
In 2024, CalPERS reviewed and approved previous revisions made to retention pay language for multiple employee groups, including APOA. This led to the approval of a letter of understanding with APOA clarifying retention pay...
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