DATE: May 5, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
California Public Employees Retirement System Contract: Adoption of a Resolution of Intention to Introduce an Ordinance Approving an Amendment to the Contract Between the City of Hayward and the California Public Employees Retirement System or Classic Members in the International Association of Fire Fighters Local 1909; Hayward Fire Officers Association; Hayward Fire Chiefs Association; Hayward Police Officers Association; Hayward Police Management Unit and the Unrepresented Safety Executive Group
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RECOMMENDATION
Recommendation
That the City Council adopts the Resolution of Intention to approve an amendment to the City of Hayward’s contract with the California Public Employees Retirement System (CalPERS) and introduction of an Ordinance to approve the contract amendment and authorize staff to execute the contract.
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SUMMARY
As a result of recent review of the Cost Share provisions in the City’s CalPERS contract it was discovered that Classic Safety members in the International Association of Fire Fighters Local 1909; Hayward Fire Officers Association; Hayward Fire Chiefs Association; Hayward Police Officers Association; Hayward Police Management Unit and the Unrepresented Safety Executive Group did not officially adopt Government Code section 20516 (Employees Sharing Cost) and have been Cost Sharing under a variable provision which required a reduction in the amounts for the City’s Safety groups on the 20th anniversary of the effective dates, reducing the Cost Share below what the employee groups have previously agreed to in their contracts.
Government Code section 20516 allows contracting agencies and their employees to agree in writing to share the costs of the employer contribution for retirement benefits. Per Code section 20516, the collective bargaining agreement ratified by the employee bargaining unit and governing body of the contracting agency must specify the exact percentage of member compensation that shall be paid toward the current service cost of benefits by members or methodology for calculating the cost sharing rate. The City must now amend its CalPERS contract to formally end the variable Cost Share and add Section 20516 Cost Share to implement this previously agreed upon change.
Adopting the Resolution of Intention initiates the contract amendment process. California Government Code 20471 outlines the process for approving amendments to the city’s contract with CalPERS. Under this process, approval of a contract must be by ordinance adopted by an affirmative vote of a majority of the members of the governing body, not less than 20 days after the adoption of the resolution of intention.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution of Intention
Attachment III Exhibit Contract Amendment
Attachment IV CalPERS Form CON-12, Certification of Governing Body’s Action
Attachment V CalPERS Form CON-12A, Certification of Compliance with Government Code Section 7507
Attachment VI Contract Amendment Ordinance