Title
Adopt an Urgency Ordinance Authorizing an Amendment to the Contract Between the Board of Administration of the California Public Employees' Retirement System (PERS) and the City Council of the City of Alameda to Include Provisions Pursuant to Government Code 20516 for "Cost Sharing" for Local Police Members and for Local Fire Members. (Human Resources)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adopt an Urgency Ordinance Authorizing an Amendment to the Contract Between the Board of Administration of the California Public Employees' Retirement System and the City Council of the City of Alameda to Include Provisions Pursuant to Government Code 20516 for "Cost Sharing" for Local Police Members and for Local Fire Members
BACKGROUND
At the City Council meeting on June 21, 2016, the City Council adopted Resolution 15160, a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Public Employees' Retirement System (CalPERS) and the City of Alameda to include provisions pursuant to Government Code 20516 "Cost Sharing" for local police members and for local fire members.
Classic employees (generally defined in the Pension Reform Act as an employee who was a CalPERS member prior to January 1, 2013), in the Police and Fire bargaining units agreed to pay, in addition to the 9% employee contribution toward retirement benefit, up to 6% in employee cost sharing. This additional cost sharing was again included in updated agreements between the bargaining units and the City in 2015. This additional cost share was also adopted in the Executive Management Compensation Plan for Chief of Police and Fire Chief. The Classic employees cost share was 2% in June 2013 and has increased 1% a year in July of 2013, 2014, and 2015 and will cap at 6%, based on the current agreements, in July 2016. Employees who were hired after the Pension Reform Act and...
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