DATE: November 19, 2024
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adopt a Resolution to Execute a Side Letter of Agreement Amending the Memorandum of Understanding, Section 10.01- Defined Benefit Retirement Program between the City of Hayward and the Service Employees International Union, Local 1021 - Maintenance and Operations Union to Clarify Employee Pension Cost-Share Requirements for all Eligible Classic and PEPRA Members
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RECOMMENDATION
Recommendation
That Council adopts the resolution (Attachment II) for the side letter of agreement amending the memorandum of understanding (MOU) with the SEIU Local 1021 - Maintenance and Operations Unit (“Union”), Section 10.01 Defined Benefit Retirement Program provision between the City of Hayward (“City”), to clarify the employee cost-share requirements for all eligible Classic and PEPRA members with respect to CalPERS pension costs.
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SUMMARY
Employee-paid Employer Contributions, known as the Employer Cost-Share, rates were previously negotiated between the City and the Union during the Memorandum of Understanding (MOU) period of January 1, 2021, through June 30, 2024. The terms of the MOU state that both Classic and PEPRA members shall be responsible for contributing to the City’s employer rate to the California Public Employees’ Retirement System (CalPERS). Classic and PEPRA bargaining unit members shall contribute four- and one-half percent (4.5%), effective the pay period including July 1, 2017, and increase by one half of one percent (.5%) to a total of five percent (5.0%), effective the pay period including January 1, 2021. While the contract provisions set forth under Section 10.01 - Defined Benefit Retirement Program explicitly define the required bargaining unit required contribution rate increase effective the pay period including July 1, 2021, due to unintentional administrative omission the defined increase was not implemented. In order to implement this contractual agreement, the City is required to amend its contract with CalPERS before implementing the required five percent (5%) employer cost-share rate. Effective December 30, 2024, Section 10.01 Defined Benefit Retirement Program shall be amended as set forth below.
As such, the City and the Union have met and conferred on the matter and entered into this Side Letter of Agreement to clarify MOU language with respect to the CalPERS retirement plan employee cost-share agreement to ensure compliance with CalPERS guidelines.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Side Letter of Agreement