HomeMy WebLinkAbout2002-03-12; City Council; 16682; CalPERS Employer Paid Member Contributions, FireCITY OF CARLSBAD - AGENDA BILL
AB# 16,682
MTG. 3/12/02
TITLE:
DEPT. HR
RECOMMENDED ACTION:
REPORTING THE VALUE OF CALPERS EMPLOYER PAID
MEMBER CONTRIBUTIONS FOR ALL LOCAL FIRE EMPLOYEES
Adopt Resolution No. 2002-081 establishing the effective date for reporting the value of
California Public Employees’ Retirement System (CalPERS) Employer Paid Member
Contributions (EPMC) for all local fire employees.
I ITEM EXPLANATION:
On January 22, 2002, the City Council adopted Resolution No. 2002-030 approving a
Memorandum of Understanding (MOU) with the Carlsbad Firefighters’ Association (CFA)
with a term of five (5) years that will expire on December 31,2006. Article 18 of this
MOU, Retirement Benefits, states that the City will begin reporting the value of EPMC as
additional compensation to CalPERS as soon as administratively possible following City 1 Council approval of the MOU.
Staff has performed the steps necessary to begin reporting the value of EPMC to CalPERS
as of March 4,2002. Approval of the attached resolution will enable the City to implement
this previously negotiated benefit. I FISCAL IMPACT:
On January 22,2002, when the City Council approved the MOU with CFA, they authorized
money from the fiscal year 2001/2002 budget to be used to cover the 2001/2002 expenses
due to all salary and benefit changes outlined in the MOU, including the benefit of
“Reporting the value of EPMC.” The cost of this benefit is summarized below.
The cost of the “Reporting the Value of EPMC” benefit has two components. The first cost
component represents the impact of reporting the value of the City’s CalPERS employer
paid member contribution [currently nine percent (9%)] as additional compensation. The
annual cost of this component is estimated at $65,000, based on current payroll costs. The
second cost component is due to an estimated increase in the City’s CalPERS employer
contribution rate for all safety employees of 2.2% as of July 2003, the effective date of the
next CalPERS valuation for the City of Carlsbad. This represents an annual cost of
approximately $292,000, based on current payroll costs.
Future fiscal year impacts will be reflected during the annual budget process.
EXHIBITS:
1. Resolution No. 2002-081 establishing the effective date for reporting the value of
CalPERS Employer Paid Member Contributions.
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RESOLUTION NO. zaoz-aE1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE EFFECTIVE DATE FOR REPORTING
THE VALUE OF CALPERS EMPLOYER PAID MEMBER CONTRIBUTIONS
FOR ALL LOCAL FIRE EMPLOYEES.
WHEREAS, the City Council of the City of Carlsbad has the authority to implement
Government Code Section 20636(c)(4) pursuant to Section 20691; and
WHEREAS, the City Council of the City of Carlsbad has a written labor policy or
agreement which specifically provides for the normal member contributions to be paid by
the employer, and reported as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section 20691 is the
adoption by the City Council of the City of Carlsbad of a Resolution to commence paying
and reporting the value of said Employer Paid Member Contributions (EPMC); and
WHEREAS, the City Council of the City of Carlsbad has identified the following
conditions for the purpose of its election to pay EPMC: . This benefit shall apply to all local fire employees. . This benefit shall consist of paying nine percent (9%) of the normal contributions as
EPMC, and reporting the same percent (value) of compensation earnable {excluding
Government Code Section 20636(c)(4)} as additional compensation. . The effective date of this Resolution shall be March 4,2002.
NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of
Carlsbad, California, as follows:
1. That the above recitations are true and correct.
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2. hat the City Cwncil of the City of Carlsbad elects to pay and report the
value of EPMC, as set forth above.
PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsbad City
Council held on the 12th day of MARCH , 2002; by the following vote, to wit
on behalf of the City:
AYES: Council Members Lewis, Kulchin, Finnila, Hall
NOES: None
ABSENT: Council Member Nygaar
ATTEST:
,,,' : 1 i; : /Ll. ;)' ~ i,, ,77T,
LORRAINE M. WOOD, City Clerk
(SEAL)
Page 2 of 2 of Resolution No. 2002-081 3