HomeMy Public PortalAbout11) 7H RESOLUTION NO. 15-5068 SUPERCEDING EMPLOYER PAID MEMBER CONTRIBUTIONSCity Council
March 17, 2015
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payment of the EPMC to CaiPERS for employees hired on or after January 1, 2012.
6 On March 12, 2014, the City received correspondence dated March 11, 2014, the
President of Temple City Employees Association (TCEA), informing the City that
the general employees would be filing to establish the TCEA as an employee
association and advising that they had retained the staff at the City Employees
Association for legal and professional assistance.
7. On April 4, 2014, a representative from the Public Employment Relations Board
(PERB), in accordance with the joint request from the City and TCEA, conducted a
petition check election. The agreed number of employees in the TCEA Unit is 29.
The required majority designation was 15 and the representative from PERB found
that the petition for the employee organization exceeded the majority designation.
8. Between July 9, 2014 and February 5, 2015, the City met on numerous occasions
with TCEA to negotiate a Memorandum of Understanding (MOU).
9. On February 11, 2015, TCEA membership voted to ratify the City's offer that was
presented to TCEA's negotiation team on February 5, 2015.
10. On February 24, 2015, the City Council adopted Resolution No. 15-5067 approving
the MOU between the City of Temple City and TCEA.
ANALYSIS:
Since 1965, the City paid the full members contribution (employer and employee) to
CaiPERS. In 2002, that action was memorialized by the adoption of Resolution No. 02-
2102. Due to changes in the local economy, as part of budget process for the FY 2011-
12, the City Council approved a decrease of one percent (1%) to the EPMC, requiring
all full time employees to pay one percent (1 %) of the employee's contribution of eight
percent (8%). The City Council also approved a motion that required all new employees
hired after January 1, 2012, to pay the full member contribution.
As part of the implementation of the MOU with TCEA, ratified by its members and
approved by the City Council, adoption of a Resolution implementing a reduction in
EPMC to CaiPERS is necessary. The MOU stipulates a five percent (5%) salary increase
and a three percent (3%) increase in the employee contribution to the employee share
of CaiPERS retirement (this would bring the employee total contribution to 4%). For
employees hired before January 1, 2012, who are not already paying their full CaiPERS
employee contribution, this will result in a net salary increase of two percent (2%). The
resolution will be effective March 23, 2015.
For FY 2015-16, the MOU also stipulates a five percent (5%) salary increase and a three
City Council
March 17,2015
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percent (3%) increase in the employee contribution to the employee share of CaiPERS
retirement, bringing the employee total contribution to seven percent (7%). Staff will
return to the City Council in June 2015 with a resolution implementing this second
increase in the employee contribution to the employee share of CaiPERS retirement.
CONCLUSION:
In order to implement a prov1s1on of the approved MOU with TCEA, adoption of a
Resolution implementing a reduction in EPMC to CaiPERS is required.
FISCAL IMPACT:
A savings of $15,000 is estimated in FY 2014-15, as a result of the employees
represented by TCEA will now be paying four percent (4%) of the eight percent (8%) of
their employee contribution to CaiPERS.
ATTACHMENT:
A. Resolution No. 15-5068
RESOLUTION NO. 15-5068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TEMPLE CITY REDUCING THE AMOUNT OF EMPLOYER PAID
MEMBER CONTRIBUTION TO THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT CITY FOR FULL-TIME
EMPLOYEES REPRESENTED BY TEMPLE CITY EMPLOYEES
ASSOCIATION HIRED BEFORE JANUARY 1, 2012 BY THREE
PERCENT (3%).
THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Whereas, the governing body of the City of Temple City has the authority
to implement Government Code Section 20691;
Whereas, the governing body of the City of Temple City has a written
labor policy or agreement which specifically provides for the normal member
contribution to be paid by the employer;
Whereas, one of the steps in the procedures to implement Section 20691
and to make subsequent modifications to the terms regarding the City of Temple
City's payment of Employer Paid Member Contributions ("EPMC") to the
California Public Employees' Retirement System ("CaiPERS") is the adoption by
the governing body of the City of Temple City of a Resolution;
Whereas, in Temple City the governing body of the City of Temple City
has agreed to pay a portion of EPMC for all employees hired before January 1,
2012 who are miscellaneous members of CaiPERS, which is currently seven
percent (7%) of the eight percent (8%) total member contribution;
Whereas, in connection with implementation Memorandum of
Understanding (MOU) between the City of Temple City and Temple City
Employees Association (TCEA}, the City of Temple City will reduce the amount
of the EPMC paid to CaiPERS for TCEA members by three percent (3%)
effective March 23, 2015, and
Whereas, the governing body of the City of Temple City now desires to
ratify the reduction in amount of EPMC paid to CaiPERS by the City of Temple
City for TCEA members by three percent (3%);
NOW, THEREFORE, BE IT RESOLVED:
• That the EPMC shall be amended to provide that all employees
hired by the City of Temple City before January 1, 2012 who are
TCEA members of CaiPERS will be required to contribute four
Resolution No. 15-5068
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percent (4%) of the normal member contribution to CaiPERS, with
the City of Temple City contributing four percent (4%) of the normal
member contribution to CaiPERS.
• This Resolution shall be effective March 23, 2015.
PASSED, APPROVED AND ADOPTED ON THIS 17th day of March, 2015.
Mayor
ATTEST:
City Clerk
Resolution No. 15-5068
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I, City Clerk of the City of Temple City, do hereby certify that Resolution
No. 15-5068 was adopted at a regular meeting of the City Council of the City of
Temple City held on the 171h day of March, 2015. It was duly passed, approved
and adopted by said Council, approved and signed by the Mayor and attested by
the City Clerk at a regular meeting held on the 17th of March, 2015 by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk
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