DATE: May 24, 2016
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Title
Adoption of 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 Unrepresented Employees
End
RECOMMENDATION
Recommendation
That the City Council adopts an Ordinance to execute the amendment of the City of Hayward's contract with PERS to add a provision for cost sharing for the Miscellaneous Members in HAME, Local 21 and the Unrepresented Employee Group.
Body
BACKGROUND
On April 26, 2016, 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 16-060). 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 May 16, 2016. In accordance with Administrative Rule 1.21, the proposed Ordinance was published in the Daily Review on May 21, 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 Classic members (hired prior to January 1, 2013) to pay eight percent of their salaries for the employees' share of retirement costs. Public Employees' Pension Reform Act ("PEPRA") members (hired on or after January 1, 2013 and receiving overall lower retirement benefits than Classic members) are required to contribute fifty percent of the normal cost of PERS benefits, which is currently 12.50%. Therefore, PEPRA employees are required to contribute 6.25% of their salaries for the employees' share of retirement costs. The City currently contributes 24.467% of salaries for FY 2016 for miscellaneous employees, which incr...
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