HomeMy WebLinkAbout2024-03-21; 2024 CalPERS Safety PEPRA Rate Increase (Districts - All); Rocha, LauraTo the members of the:
CITY COUNCIL
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Council Memorandum
March 21, 2024
To:
From:
Via:
Re:
Honorable Mayor Blackburn and Members of the City Council
Laura Rocha, Deputy City Manager, Administrative Services
Geoff Patnoe, Assistant City Manager @,
2024 CalPERS Safety PEPRA Rate Increase (Districts -All)
{city of
Carlsbad
Memo ID# 2024021
This memorandum provides information related to the CalPERS Safety PEPRA rate increase. In
May 2023, the City Council received a memorandum regarding increases for Miscellaneous
PEPRA members.
Background
Under the Public Employees' Pension Reform Act (PEP RA) 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 (FY).
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 CalPERS makes on their investments. A recent analysis performed by
CalPERS caused an increase to the employee and employer contribution rates for public agencies
in California.
Discussion
Effective June 24, 2024, the Cal PERS employee contribution rate for Safety PEPRA members will
increase.
EMPLOYEE CONTRIBUTION CURRENT NEW
Safety PEPRA 13.5% 14%
The city currently has approximately 154 Safety PEPRA employees.
The CalPERS Safety PEPRA employee contribution rate history is listed below:
EMPLOYEE CONTRIBUTION Jan. 2013 -June 2019 July 2019 -June 2020 July 2020 -Current
Safety PEPRA 12% 12.75% 13.5%
Administrative Services Branch
Human Resources Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-2440 t
Council Memo -2024 Cal PERS Safety PEPRA Rate Increase (Districts -All)
March 21, 2024
Page 2
The CalPERS employee contribution rates for Safety employees hired prior to January 1, 2013
(Classic members), will not change, as they will remain at 9%.
The CalPERS employee contribution rates for all Miscellaneous employees will not change, as
they will remain at 7%, 8% or 8.5% depending on the employee's hire date.
The city's Cal PERS employer contribution rates change annually in July and are included in the
budget:
EMPLOYER CONTRIBUTION FY 2023-24 FY 2024-25
Safety (sworn police and fi re) 21.55% 20.50%
Miscellaneous (all others) 12.51% 12.13%
During prior MOU negotiations, the city and the Carlsbad Firefighters' Association, Inc. (CFA)
agreed that effective January 1, 2020, the city would make a contribution into a deferred
compensation plan on behalf of (FA-represented employees who are in the PEP RA group. The
city's deferred compensation contribution rate is determined by calculating the difference
between the "employee Classic Safety rate" and the "employee PEPRA Safety rate". Currently,
the city's deferred compensation contribution rate is 4.5% and it will increase to 5% on
June 24, 2024. The fiscal impact of this increase will be included in the FY 2024-25 budget.
Next Steps
On April 1, 2024, Human Resources staff will advise Safety PEPRA employees of their rate
increase.
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Judy von Kalinowski, Human Resources Director
Silvano Rodriguez, Human Resources Manager
Sandra Smith, Human Resources Analyst