HomeMy WebLinkAbout2003-02-04; City Council; 17063; 3% @ 60 Retirement Benefit ImplementationCITY OF CARLSBAD - AGENDA BILL hr ,K
ATG. 2-4-03 APPROVAL TO INITIATE IMPLEMENTATION OF CITY ATTY
IEPT. H-R- CITY MGR. THE 3% @ 60 RETIREMENT BENEFIT FOR ALL LOCAL
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?ECOMMENDED ACTION:
Adopt Resolution No. 2003-035 , that implements the California Public Employees’
Retirement System (CalPERS) “3% @ 60” retirement benefit for all local miscellaneous
employees effective January 1,2005.
ITEM EXPLANATION:
Representatives of the City and the Carlsbad City Employees’ Association (CCEA) met and
conferred in good faith and reached an agreement regarding wages, hours and other terms
and conditions of employment for CCEA-represented employees. As a provision of this
agreement, the City will contract with CalPERS to provide the “3% @ 60” retirement
benefit for all CCEA-represented employees effective the pay period inclusive of January 1,
2005. Under the City’s current retirement contract with CalPERS, CCEA-represented
employees, management employees and non-sworn police employees are combined into one
“miscellaneous” contract. Therefore, staff recommends that the following retirement plan
changes be implemented.
0 The City will contract with CalPERS to provide the “3% @ 60” retirement benefit
for all local miscellaneous employees, including management employees and non-
sworn police employees, effective the pay period inclusive of January 1,2005.
As part of this enhanced retirement benefit, effective the pay period inclusive of
January 1,2005, the City will continue to pay the current seven percent (7%)
employer paid member contribution and each miscellaneous employee will pay the
additional one percent (1 %) employee retirement contribution to CalPERS associated
with this enhanced retirement benefit. This resulting one percent (1%) employee
contribution will be deducted from each employee’s salary on a pre-tax basis by
implementing provisions of section 414(h)(2) of the Internal Revenue Code (IRC).
FISCAL IMPACT:
It is estimated that implementation of the 3% at 60 retirement benefit for all local
miscellaneous employees will increase the City’s CalPERS employer contribution rate for
miscellaneous employees by an additional 9.1% as of January 1,2005, the effective date of
the contract amendment. Using current payroll costs for management employees and non-
sworn police employees only, the fiscal impact of this rate increase is estimated to be
$920,000.
PAGE 2 OF AGENDA BILL # 17 063
There is no fiscal impact due to the one percent (1%) increase to the City’s CalPERS
employee contribution rate for all miscellaneous employees because the additional one
percent (1 %) will be paid by the employees.
Future fiscal year impacts will be reflected during the annual budget process.
EXHIBITS:
1. Resolution No. 2003-03 authorizing the Human Resources Director to
implement the 3% 0 60 CalPERS retirement benefit for all local miscellaneous
employees.
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RESOLUTION NO. 2003-035
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING THE HUMAN
RESOURCES DIRECTOR TO IMPLEMENT THE 3% @ 60 CALPERS
RETIREMENT BENEFIT FOR ALL LOCAL MISCELLANEOUS
EMPLOYEES.
WHEREAS, the City Council has determined that it is desirable and necessary to
molfy the retirement benefit for management and non-sworn police employees, concurrent
with CCEA-represented employees, all of whom are covered by one local miscellaneous
contract with the California Public Employees' Retirement System (CalPERS).
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. That the City Council directs the Human Resources Director to take the
necessary steps to implement the 3% @ 60 retirement benefit for all local miscellaneous
employees covered by the miscellaneous CalPERS contract effective January 1,2005.
PASSED, APPROVED AND ADORED at a regular meeting of the Carlsbad City
Council held on the 4th day of FEBRUARY , 2003; by the following vote, to wit
on behalf of the City:
AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard
NOES: None
ABSENT: None
ATTEST:
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(SEAL)
Page 2 of 2 of Resolution No. 2003-035.
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