TITLE
Recommendation to adopt resolution to approve a Letter of Agreement between the City of Long Beach (City) and the Long Beach Firefighters Association (FFA) to amend the 2022-2025 FFA Memorandum of Understanding (MOU). The amended provision is under the Article Five, Section II, Cost Sharing by Classic CalPERS Members. (Citywide)
DISCUSSION
The City of Long Beach (City) plans to amend the 2022-2025 Long Beach Firefighters Association (FFA) Memorandum of Understanding (MOU), Article Five, Section II, Cost Sharing by Classic CalPERS Members. On January 24, 2023, the California Public Employees’ Retirement System (CalPERS) informed the City that the California Government Code referenced in the FFA MOU regarding the additional employee contribution of FFA Classic Safety Employees towards the City’s required employer contribution to CalPERS was incorrect. To amend the CalPERS contract to reflect the additional employee contribution, CalPERS requires a letter of agreement approved by the City and FFA reflecting this change to the FFA MOU. Below are the agreed upon terms that will be reflected in Article Five, Section II of the FFA MOU:
A. Effective the first full pay period of FY 2023, Classic FFA safety employees will contribute three percent (3%) of compensation earnable toward the City’s required employer contribution to CalPERS, via payroll deductions pursuant to California Government Code Section 20516(f). This cost sharing contribution will be in addition to the nine percent (9%) statutory employee contribution already paid by the employee and will increase the employee’s contribution to a total of twelve percent (12%).
B. During the term of this MOU, the City shall initiate a CalPERS contract amendment as soon as administratively possible to change the three percent (3%) cost sharing under Government Code section 20516(f) described in the section above, to cost sharing of three percent (3%) of compensation earnable, pursuant to Government Code Section 20516(a). The change to cost sharing under Government Code section 20516(a) will be effective upon the conclusion by the City and CalPERS of the CalPERS contract amendment process. The total Classic member contribution shall remain at twelve percent (12%) of compensation earnable (9% statutory employee contribution plus 3%).
C. The CalPERS contract amendment process has an employee election requirement for this amendment. Following the adoption of a Resolution of Intention for the contract amendment, the City will conduct a secret ballot election as required by applicable law prior to approving the CalPERS contract amendment.
D. If the employees vote in favor of the employee contribution rate change and CalPERS approves the amendment, then as a result of the change to Government Code section 20516(a) cost sharing, prospective employee cost sharing contributions will be credited to each member's account as normal member contributions.
E. In the event employees do not vote in favor of the CalPERS contract amendment contribution rate change during the secret ballot election or if for some other reason CalPERS will not approve the contract amendment, Classic members will continue paying the three percent (3%) of compensation earnable toward the employer's contribution rate, as cost sharing pursuant to Government Code section 20516(f). However, in that event, the cost sharing contributions will not be credited to each member's account by CalPERS and will not be made on a pre-income tax basis, unless otherwise provided by law.
F. The employee cost sharing contributions will be made on a pre-income tax basis as allowed under Internal Revenue Service Code Section 414(h)(2) or as otherwise provided by law.
It is the intention of the parties that the Classic member cost sharing contributions shall continue beyond the term of this MOU, and until otherwise amended through the normal collective bargaining process.
The Long Beach Firefighter Association acknowledges and agrees that if this MOU expires without a successor MOU in place, the cost sharing contributions shall continue in the same manner as they were prior to expiration of the MOU.
If, for any reason, the cost sharing provisions of this MOU are not enforceable, whether by operation of law, a ruling by a court or administrative proceeding, or otherwise, the parties agree to re-open the MOU solely to collectively bargain over the effects of this change.
This Letter of Agreement shall not change any of the FFA Memorandum of Understanding (MOU) provisions other than as outlined above.
This matter was reviewed by Assistant City Attorney Gary J. Anderson on July 26, 2023 and by Budget Management Officer Nader Kaamoush on July 25, 2023.
TIMING CONSIDERATIONS
City Council action is requested on August 15, 2023, and is effective following adoption by the City Council.
FISCAL IMPACT
This requested amendment will align California Government Code references and will not have any fiscal impact. The FY 23 Budget factors adjustments related to the negotiated cost increases. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no impact on local jobs associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
JOE AMBROSINI
HUMAN RESOURCES DIRECTOR
APPROVED:
THOMAS B. MODICA
CITY MANAGER