DATE: November 17, 2020
TO: Mayor and City Council
FROM: Assistant City Manager
SUBJECT
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
RECOMMENDATION
That Council adopts 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 Safety members.
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 15, 2016, the City Council adopted Ordinance 16-196 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 12% of their salaries for the employees' share of retirement costs, plus an additional 3% towards the employer's required contribution for a total employee contribution of 15%.
Concurrently, on November 15, 2016, the City Council adopted Ordinance 16-197 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 9.75% of their salaries for the employees' share of retirement costs, plus an additional 5.25% 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 ...
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