HomeMy WebLinkAbout2023-05-11; 2023 CalPERS PEPRA Rate Increase (Districts - All); Rocha, LauraTo the members of the:
CITY COUNCIL
Date~CA ✓ CC ✓
CM ~ACM VDCM (3) ✓
May 11, 2023
Council Memorandum
To:
From:
Via:
Honorable Mayor Blackburn and Members of the City Council
Laura Rocha, Deputy City Manager, Ad~trative Services
Geoff Patnoe, Assistant City Manager ~
Re: 2023 CalPERS PEPRA Rate Increase (Districts -All)
{city of
Carlsbad
Memo ID# 2023 04 3
This memorandum provides information related to the CalPERS Miscellaneous PEPRA rate
increase.
Background
Under the Public Employees' Pension Reform Act (PEPRA) law, Cal PERS members hired on or
after January 1, 2013 (PEPRA members), are subject to increases or decreases to their
contribution rate each fiscal year.
Cal PERS manages the retirement fund for each public agency to make sure there is enough
money to pay the lifetime pension benefit to all those who retire from that agency. The
retirement fund is made up of the city's employer contribution rate, the employee's contribution
rate and earnings that Cal PERS makes on their investments. A recent analysis performed by
CalPERS caused an increase to the employee and employer contribution rates.
Discussion
Effective June 26, 2023, the employee contribution rate for Miscellaneous PEPRA members is
increasing.
EMPLOYEE CONTRIBUTION CURRENT NEW
Miscellaneous PEPRA 7.5% 8.5%
The city currently has approximately 353 Miscellaneous PEPRA employees. Most public agencies
in California also had their PEPRA employee rates increased.
The PEP RA employee contribution rate was 6. 75% from January 2013 -June 2019. In July of
2019, it increased to 7.5%.
The employee contribution rates for Miscellaneous employees hired prior to January 1, 2013
(Classic members), will not change, as they will remain at 7% or 8%. Additionally, the employee
Administrative Services Branch
Human Resources Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2440 t
Council Memo -2023 Cal PERS PEPRA Rate Increase (Districts -All)
May 11, 2023
Page 2
contribution rates for all sworn police and fire employees (Safety) will not change, as they will
remain at 9% or 13.5%.
The city's employer contribution rates change annually in July and are included in the budget:
EMPLOYER CONTRIBUTION FY 2022-23 FY 2023-24
Safety (sworn police and fire) 19.79% 21.55%
Miscellaneous (all others) 11.72% 12.51%
Next Steps
On May 12, 2023, Human Resources staff will advise PEP RA employees of their rate change.
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney