HomeMy WebLinkAboutResolution 2012-38 - Increasing Employee ContributionsCITY OF PALM DESERT
HUMAN RESOURCES DEPARTMENT
STAFF REPORT
REQUEST: Approve Resolution No2012-38 modifying the amount employees
contribute to CalPERS.
SUBMITTED BY: . Lori Carney, Human Resources Manager
DATE: June 28, 2012
CONTENTS: Resolution No. 2012 - 38
Recommendation:
Waive further reading and adopt Resolution No.2012- 38 ;
Executive Summary:
This resolution is necessary to rescind the City's payment of Employer Paid
Member Contributions (EPMC) and increase the contributions employee's make
to CalPERS in order to fund their pension benefits.
Background:
The 2011 Memorandum of Understanding (M.O.U.) between the Palm Desert
Employees Organization and the City includes changes in the amount which is
paid by employees towards their CalPERS pension benefits. This M.O.U.
increases employee contributions from 4% of salary to 8% of salary, effective
July 1, 2012, for employees hired under the 2.7% @ 55 pension formula. This
change was negotiated as part of an overall salary and benefits package; these
increased payroll deductions were included in the City budget for Fiscal Year
2012/2013.
Staff Report
Approve Resolution no2O12-38changing employee CalPERS Contributions
June 28, 2012
Page 2 of 2
Fiscal Analysis:
An approximate $400,000 reduction in CalPERS pension costs for FY
2012/2013, offset by other personnel costs. Amounts included in the FY
2012/2013 Budget.
Submitted by:
Lori Carney, Hypran Resources Manager
Paul S. Gibson, Director of Finance
Approval:
M. Wohlmuth, City Manager
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VERIFIED BY:
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RESOLUTION NO. 2012- 38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, FOR DISCONTINUEING THE PAYING AND
REPORTING OF THE VALUE OF EMPLOYER PAID MEMBER
CONTRIBUTIONS
WHEREAS, the governing body of the City of Palm Desert has the authority to
implement Government Code Section 20636(C) (4) pursuant to Section 20691;
WHEREAS, the governing body of the City of Palm Desert has a written labor
policy or agreement which specifically provided for the normal member contributions to
be paid by the employer, and reported as additional compensation through June 30,
2012;
WHEREAS, the governing body of the City of Palm Desert has a written labor
policy or agreement which specifically provides that Employer Paid member
Contributions (EPMC) will no longer be paid by the employer effective July 1, 2012;
WHEREAS, one of the steps in the procedures to discontinue offering benefits
under Section 20691 is the adoption by the governing body of the City of Palm Desert
of a Resolution to discontinue paying and reporting the value of said Employer Paid
Member Contributions (EPMC);
• This benefit shall no longer apply to any employees
The effective date of this Resolution shall be 7/1/2012.
Resolution No. 2012- 38
NOW, THEREFORE BE IT RESOLVED, that the governing body of the City of
Palm Desert elects to discontinue the payment and reporting of the value of EPMC, as
set forth above.
PASSED, APPROVED AND ADOPTED by the Palm Desert City Council on this
28rd day of June, 2012 by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT SPIEGEL,
MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT