TITLE
Recommendation to adopt resolution approving the amendment to the 2007-2012 Memorandum of Understanding with the International Association of Machinists and Aerospace Workers; and
DISCUSSION
City management representatives and representatives of the International Association of Machinists and Aerospace Workers (IAM) have had a number of meet and confer sessions regarding the financial impacts of the Fiscal Year 2012 (FY 12) and Fiscal Year 2013 (FY 13) budgets. Meetings have been concluded and a tentative agreement has been reached between management representatives and representatives of the employee organization.
The major agreed upon provisions of the attached Amendment are: (1) current City employees will pay an additional 6 percent of the CalPERS pickup in FY 13, for a total of 8 percent, which represents 100 percent of the employee’s share; (2) employees hired into the City on or after January 1, 2013, who are new members to CalPERS, will pay the full CalPERS pickup, which represents 100 percent of the employee’s normal member contribution (see California Government Code sec. 7522.30); (3) employees hired into the City on or after January 1, 2013, who are new members to CalPERS, will receive a lower retirement formula of 2 percent at 62 (see California Government Code sec. 7522.20); and (4) employees hired into the City on or after January 1, 2013, who are new members to CalPERS, will be subject to a three-year average final compensation calculation (see California Government Code sec. 7522.32).
Pursuant to the attached Amendment and pending the approval of the Resolutions, these changes will be effective January 26, 2013, unless prior implementation is mandated by state retirement law.
In order for the City to make changes to the employer paid member contribution (EPMC) for current City employees, it is necessary for the City Council to adopt the attached Resolutions as prepared by the City Attorney.
This matter was reviewed by Senior Deputy C...
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