TITLE
Adopt resolution for paying and reporting the value of the Employer Paid Member Contributions (EPMC) to the California Public Employees' Retirement System for unrepresented management employees in the Auditor's Office;
DISCUSSION
A Resolution declaring impasse and authorizing implementation of the terms of the City's last, best and final offer to the Long Beach Association of Engineering Employees (LBAEE), pursuant to Government Code Section 3505.4 was adopted by City Council at its meeting on February 1, 2011. Pursuant to the impasse Resolution and pending the approval of the Employer Paid Member Contributions (EPMC) Resolution, new City employees represented by the LBAEE, hired on or after February 26, 2011, shall pay 100 percent of the member contribution which, at this time, is eight percent.
Unrepresented management employees in the Auditor's Office have agreed to .pay an additional two percent of their member contribution to offset a salary adjustment. This decreases the amount the City pays and reports as the employer paid member contribution for these employees. The unrepresented management employees shall contribute an amount equal to four percent of their annual salary towards their individual employee contribution. The Resolutions also provide that new City employees hired as of February 26,2011 by the Auditor's Office and are unrepresented management, shall pay 100 percent of the member contribution which, at this time, is eight percent.
The Mayor, City Councilmembers, City Auditor, City Attorney, City Prosecutor and City Clerk, have elected to contribute an additional 1.8 percent of their member contribution to offset their salary adjustment. This decreases the amount the City pays and reports as the employer paid member contribution for these employees. The Mayor, City Councilmembers, City Auditor, City Attorney, City Prosecutor and the City Clerk shall contribute an amount equal to 3.8 percent of their annual salary towards their individual employee contribution. The Resolutions also provide that new City Councilmembers, elected officials and/or a City Clerk appointed on or after February 26,2011, shall pay 100 percent of the member contribution.
Lastly, new City employees that are unrepresented non-management Miscellaneous employees shall pay 100 percent of the member contribution. This change is effective February 26, 2011.
In order for the City to make changes to the EPMC, 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 City Attorney Christina Checel and Budget Management Officer Victoria Bell on January 31, 2011.
TIMING CONSIDERATIONS
City Council action is requested on February 15 2011, to ensure that these Resolutions are received by CalPERS for processing consistent with the effective date of the action.
FISCAL IMPACT
The estimated savings in FY 11 from the unrepresented management employees in the Auditor's Office paying an additional two percent, and the Mayor, City Councilmembers, City Auditor, City Attorney, City Prosecutor and the City Clerk paying an additional 1.8 percent of the employee contribution rate to CalPERS effective February 26, 2011 is $21,922 in the General Fund and $23,624 in all funds.
As new hires join the unrepresented management employees in the Auditor's Office, new City Council members are elected and new City Clerks are appointed, savings will be generated by those employees paying 100 percent of their member contribution. There is no local job impact associated with this recommendation.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH IMPLEMENTING GOVERNMENT CODE SECTION 20636(c)(4) PURSUANT TO SECTION 20691 BY PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR UNREPRESENTED MANAGEMENT MISCELLANEOUS EMPLOYEES IN THE AUDITOR'S OFFICE TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CaIPERS)
Respectfully Submitted,
DEBORAH R. MILLS
DIRECTOR OF HUMAN RESOURCES
APPROVED:
PATRICK H. WEST
CITY MANAGER