The URL can be used to link to this page

Home My Public Portal About16) 7L Adoption of Resolution No. 16-5168 eliminating Employer Paid Member ContributionsDATE: TO: FROM: ADMINISTRATIVE SERVICES DEPARTMENT MEMORANDUM June 7, 2016 The Honorable City Council Bryan Cook, City Manager By: Tracey L. Hause, Administrative Services Director AGENDA ITEM ?.L. SUBJECT: ADOPTION OF RESOLUTION NO. 16-5168 ELIMINATING EMPLOYER PAID MEMBER CONTRIBUTIONS FOR "CLASSIC" TEMPLE CITY EMPLOYEE ASSOCIATION UNIT MEMBERS RECOMMENDATION: The City Council is requested to adopt Resolution No. 16-5168 (Attachment "A") eliminating the remaining one percent (1 %) Employer Paid Member Contributions (EPMC) currently paid to the California Public Employees Retirement System (CaiPERS) for employees represented by Temple City Employees Association (TCEA) effective with the pay period July 8, 2016. BACKGROUND: 1. Since October 1, 1965, the City has participated in CaiPERS with the City contributing both employee and employer contributions. 2. On July 16, 2002, the City Council adopted Resolution No. 02-21 02 memorializing full payment of EPMC to CaiPERS which up to that time was seven percent (7%) of the normal contribution for each employee. 3. On June 29, 2010, the City Council adopted the Fiscal Year (FY) 2010-11 City Budget which included a one percent (1 %) reduction in the EPMC contribution to CaiPERS, effective the first pay date after July 1, 2010. 4. On August 15, 2011 , the City Council at their regular meeting voted to eliminate the EPMC, currently eight percent (8%) to CaiPERS for all newly hired employees effective January 1, 2012. 5. On December 20, 2011 , the City Council adopted Resolution No. 11-4781 City Council June 7 2016 Page 2 of 3 memorializing the implementation of the one percent (1 %) reduction in the EPMC to CaiPERS effective July 1, 2010, and Resolution No. 11-4782 eliminating payment of the EPMC to CaiPERS for employees hired on or after January 1, 2012. 6. On March 17, 2015, the City Council adopted Resolution No. 15-5068 implementing a three percent (3%) reduction in the EPMC contribution to CaiPERS for employees represented by TCEA, effective March 23, 2015. 7. On July 7, 2015, the City Council adopted Resolution No. 15-5094 implementing a further reduction in EPMC to the CaiPERS by three percent (3%) for employees represented by TCEA, effective June 29, 2015. 8. On July 23 , 2015, the City and TCEA had their first Joint Labor-Management Committee (JLMC) meeting to discuss compensation philosophy. 9. Between July 23,2015 and April20, 2016, the City met on numerous occasions with TCEA to further discuss compensation philosophy and possible terms of an MOU for July 1, 2016 through June 30 , 2018. 10. On April 20, 2016, TCEA membership voted to ratify the terms contained in the counter proposal which was presented to TCEA's Board on April 20, 2016 . ANALYSIS: Since 1965, the City paid the full member 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 the 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 Resolution that required all new employees hired after January 1, 2012, to pay the full member contribution. As part of the implementation of the MOU for FY's 2014-15 and 2015-16 with TCEA, Resolutions were adopted on March 17, 2015 and July 7, 2015, implementing of two successive reductions in EPMC to CaiPERS of three percent (3%). Further, the MOU for FY's 2016-17 and 2017-18 provides a two and one half percent (2.5%) salary increase and a one percent (1 %) increase in the employee contribution to the employee share of CaiPERS retirement (bringing the employee total contribution to 8%). For employees hired before January 1, 2012, who are not already paying their full CaiPERS employee contribution , resulting in a net salary increase of one and one half percent (1 .5%). City Council June 7 2016 Page 3 of 3 CITY STRATEGIC GOALS: By adopting Resolution No. 16-5168 implementing a reduction in EPMC to the CaiPERS by one percent (1 %) for employees represented by TCEA furthers the City's Strategic Goal to promote Good Governance. FISCAL IMPACT: Current and future savings will be realized in CaiPERS retirement costs of approximately $20,000, as a result of employees represented by TCEA picking up an additional one percent (1 %) of their CaiPERS employee contributions. This savings has been accounted for and incorporated in the proposed FY 2016-17 City Budget. ATTACHMENT: A. Resolution No. 16-5168 RESOLUTION NO. 16-5168 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 FOR FULL-TIME EMPLOYEES REPRESENTED BY TEMPLE CITY EMPLOYEES ASSOCIATION HIRED BEFORE JANUARY 1, 2012 BY ONE PERCENT (1 %). 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 one percent (1 %) of the eight percent (8%) total member contribution ; Whereas, in connection with implementing 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 one percent (1 %) effective with the pay period ending July 8, 2016, 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 zero percent (0%); 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 eight percent (8%) of the normal member contribution to CaiPERS, with Resolution No. 16-XXXX Page· 2 the City of Temple City contributing zero percent (0%) of the normal member contribution to CaiPERS. • This Resolution shall be effective with the pay period of July 8, 2016. PASSED, APPROVED AND ADOPTED ON THIS 7th day of June, 2016. Mayor ATIEST: City Clerk Resolution No. 16-XXXX Page· 3 I, City Clerk of the City of Temple City, do hereby certify that Resolution No. 16-XXXX was adopted at a regular meeting of the City Council of the City of Temple City held on the 7th day of June 2016. 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 7th of June, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: City Clerk Councilmember- Councilmember- Councilmember- Councilmember-