DATE: January 19, 2016
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adoption of a an Ordinance to Approve An Amendment to the City of Hayward Contract with the California Public Employees Retirement System (PERS) Contract for Miscellaneous Members in HAME, Local 21 and Unpresented Employees
End
RECOMMENDATION
Recommendation
That the City Council adopts an Ordinance to execute the amendment to the City of Hayward's contract with PERS to add a provision for cost sharing for the Miscellaneous Members in HAME, Local 21 and Unrepresented Employees.
Body
BACKGROUND
On December 15, 2015, the City Council approved a Resolution of Intent to amend the City of Hayward's CalPERS contract and introduced an Ordinance to amend the contract (PH 15-107). CalPERS regulations require the City Council to adopt an Ordinance by way of a public hearing at least twenty days after the approval of the Resolution of Intention. The twenty day threshold was met on January 4, 2016. In accordance with Administrative Rule 1.21, the proposed Ordinance was published in the Daily Review on January 16, 2016, three days prior to the public hearing.
DISCUSSION
The City contracts with CalPERS for retirement benefits. The existing CalPERS contract for miscellaneous members (non-safety) requires payment of 8% of their salaries for the employees' share of retirement costs. The City currently contributes 24.467% for the employer share. Under the revised terms, HAME, Local 21, and Unrepresented, members will continue pay the current the employee contribution of 8% and a total of 3%, phased in 1% per year of the employers share beginning in FY16, for a total of 11% by FY 2018. This employee contribution toward the employer rate shall be credited to each member's account as a normal contribution effective the first pay period following thirty days of the adoption of the final Ordinance.
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