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Home My WebLink About55A - RESO - CHANGES TO RETIRE SYS PAYMENTCITY COUNCIL MEETING DATE: JULY 5, 2016 TITLE; AMEND RESOLUTION NO. 94 -027 TO MEMORIALIZE CERTAIN CHANGES TO THE PAYMENT AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM {STATEGIC PLAN NO. 7, 6} CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 at Reading ❑ Ordinance on 2 I Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Amend Resolution No. 94 -027 to memorialize certain changes to the payment and reporting the value of Employer Paid Member Contributions to the California Public Employees Retirement System (CaIPERS) for local miscellaneous and local safety members DISCUSSION On June 20, 1994 the City of Santa Ana adopted Resolution 94 -027 agreeing to pay the normal member contributions as employer paid member contributions ( "EPMC ") and report the full monetary value of contributions as compensation earnable for employees classified as local miscellaneous and local safety members. At that time, the EPMC was 7% for local miscellaneous CaIPERS members and 9% for local safety members. On July 7, 2008, the City of Santa Ana adopted Resolution 2008 -050 to provide the 2.7% @ 55 retirement formula for local miscellaneous members. As part of this formula, the EPMC increased from 7% to 8 %. The City began paying this 8% of the normal contributions on January 1, 2009 and has continued to pay the 8% pursuant to several written labor policies and agreements with several miscellaneous bargaining units. The local safety members EPMC remained the same at 9 %. 55A -1 ICMA -RC RHS Plan Investment Change July 5, 2016 Page 2 of 2 In 2011, City staffwas advised by CalPERS that it was unnecessary to update Resolution 94 -027 to reflect the local miscellaneous EPMC change from 7% to 8% since the City continued to pay 100% of the normal contributions for local miscellaneous. and local safety members. Recently, CalPERS advised the City that an updated resolution was needed to memorialize the current 8% EPMC for classic miscellaneous members and 9% for local safety members. STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #7 — Team Santa Ana, Objective #6 (Provide a positive workplace environment that supports the health of its employees and celebrates its success and Goals). FISCAL IMPACT There is no fiscal impact associated with this resolution, as this is a procedural matter only. 0 � Edward S. Raya Executive Director Personnel Services Agency EXHIBIT: 1. Resolution 55A -2 RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION N0, 94 -027 TO MEMORIALIZE CERTAIN CHANGES TO THE PAYMENT AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. On June 20, 1994, the City Council adopted Resolution No. 94027 to comply with Government Code Section 20636(c)(4), pursuant to Section 20691 declaring the City of Santa Ana's intention to report to the California Public Employees Retirement System the full monetary value of normal member contributions to be paid by the employer, as compensation earnable. B. The City of Santa Ana adopted this resolution as a procedural matter to comply with the legal requirements and approved Memorandums of Understanding with several represented bargaining units, Unrepresented Executive Management and Appointed employees. At that time, the employer paid member contributions ( "EPMC ") was 7% for local miscellaneous CalPERS members and 9% for local safety members. C, The City of Santa Ana adopted Resolution 2008 -050 on July 7, 2008 to provide Section 21354.5 (2.7% @ 55 Full Formula) for local miscellaneous members. As part of this formula, the normal member contributions to be paid by the employer increased from 7% to 8 %. The City began paying this 8% of the normal contributions as EPMC on January 1, 2009. The local safety members employer paid member contribution remained the same at 9 %. D. In 2011, City staff determined with the approval of CalPERS that it was unnecessary to update Resolution No. 94 -027 to reflect the EPMC increase which occurred as a result of Resolution 2008 -050 which implemented 2.7% @ 55 Full Formula for local miscellaneous members. Recently, CaIPERS advised the City that it wanted an updated Resolution setting forth the current EPMC rate for classic miscellaneous CalPERS members. Resolution 2016 -XXX Page 1 of 3 55A -3 E. The governing body of the City of Santa Ana has the authority to implement Government Code Section 20636(c) (4) pursuant to Section 20691; F. The governing body of the City of Santa Ana has several written labor policies and agreements which specifically provide for the normal member contributions to be paid by the employer at 8% for classic local miscellaneous members and 9% for classic local safety members, and reported as additional compensation; G. It is the desire of the Santa Ana City Council to affirm implementation of Government Code Section 20691 and to continue paying and reporting the value of said Employer Paid Member Contributions (EPMC); H. The governing body of the City of Santa Ana has identified the following conditions for the purpose of its election to pay EPMC; This benefit shall apply to classic CalPERS members in full time and part time civil service` classifications represented by the following bargaining units: SEIU, CASA, SAMA, FBA, FMA, PMA and POA and full time Unrepresented Executive Management and full time Appointed employees. 2. This benefit shall consist of paying 8% (eight percent) of the normal contributions as EPMC for classic miscellaneous CalPERS members, and reporting the same percent (value) of compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. 3. This benefit shall consist of paying 9% (nine percent) of the normal contributions as EPMC for classic local safety CaIPERS members, and reporting the same percent (value) of compensation earnable (excluding Government Code Section 20636(c)(4)) as additional compensation. "This benefit does not apply to part time non -civil service employees. Section 2. The Santa Ana City Council thereby resolves to affirm its continued election to pay and report the value of EPMC as outlined above. Section 3. Except as amended by this Resolution, all other provisions of Resolution No, 94 -027 shall remain in full force and effect. Resolution 2016 -XXX Page 2 of 4 55A -4 Section 4. This Resolution is operative from and after the date it is adopted. ADOPTED this 5th day of July, 2016, Miguel A. Pulido Mayor APPROVED AS TO FORM: Sonia R. Carvalho City Attorney Laura A. Rossini Senior Assistant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT: Councilmembers Councilmembers Councilmembers Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY 1, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2016 -_ to be the original Resolution adopted by the City Council of the City of Santa Ana on July 5, 2016. Date: Resolution 2016 -XXX Page 3 of 3 55A -5 Clerk of the Council City of Santa Ana 'P�PM