DATE: February 20, 2024
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adopt Resolutions to Execute Side Letter Agreements Amending the Memoranda of Understanding (MOU) between the City of Hayward and the Hayward Police Officers Association (HPOA), and the City of Hayward and the International Association of Firefighters, AFL-CIO, Local 1909 (Local 1909), to Change the Existing Cost-Sharing Amount for PEPRA Members
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RECOMMENDATION
Recommendation
That the Council adopts the resolutions (Attachments II and III) for side letter agreements amending the Memoranda of Understanding (MOU) between the City of Hayward and HPOA, and the City of Hayward and Local 1909, to change the existing cost-sharing amount for PEPRA members.
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SUMMARY
The City contracts with CalPERS for retirement benefits. The City and employees are required to make contributions towards CalPERS retirement costs to fund the benefit. On November 17, 2020, the City Council adopted Resolution 20-197 to amend the previously agreed upon contribution rate for PEPRA Police members (employees hired on or after January 1, 2013). Per the Ordinance, PEPRA Police employees contribute 13% of their salaries for the employees’ share of retirement costs, plus an additional 2% towards the employer’s required contribution for a total employee contribution of 15%.
Concurrently, on November 17, 2020, the City Council adopted Resolution 20-198 to amend the previously agreed upon contribution rate for PEPRA Fire members (employees hired on or after January 1, 2013). Per the Ordinance, PEPRA Fire employees contribute 10.5% of their salaries for the employees’ share of retirement costs, plus an additional 4.5% towards the employer’s required contribution for a total employee contribution of 15%.
Per the current MOUs (Section 8.01B of the HPOA agreement, and Section 6.01B of the Local 1909 agreement), PEPRA Safety (Police and Fire) employees shall not be required to contribute more than 15% of their salaries to fund their pension, and if CalPERS enacts a change to the employee rate as reflected in the Annual Valuation Report, the parties will amend the respective contract to ensure PEPRA members continue to contribute no more than a total of 15% of reportable wages.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution - HPOA
Attachment III Resolution - Local 1909
Attachment IV Side Letter Agreement - HPOA - CalPERS PEPRA Member Contributions
Attachment V Side Letter Agreement - Local 1909 - CalPERS PEPRA Member
Contributions