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ITEM: |
CONSENT CALENDAR |
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16. |
CONSIDER ADOPTION OF RESOLUTION NO. 2016-22 - AUTHORIZING AN AMENDMENT TO THE DISTRICT’S CONTRACT WITH THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM |
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Meeting Date: |
December 12, 2016 |
Budgeted: |
N/A |
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From: |
David J. Stoldt, |
Program: |
N/A |
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General Manager |
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Item No.: |
N/A |
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Prepared By: |
Cynthia Schmidlin |
Cost Estimate: |
N/A |
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General Counsel Approval: N/A |
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Committee Recommendation:
The Administrative Committee reviewed this item on December 5, and
recommended approval. |
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CEQA Compliance: N/A |
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SUMMARY: The District’s current labor agreements with its three bargaining units include the provision that 3% of the salaries for Classic Members of the California Public Employees’ Retirement System (CalPERS), hired before January 1, 2013, be applied to the Employer Contribution portion of the CalPERS premium. The employee deductions, however, are not officially applied to the members’ accounts without the completion of a formal CalPERS contract amendment process. This process requires that the governing body of an agency first approve a resolution stating its intention to amend its contract. This step was accomplished at the October 17, 2016 Board Meeting. The next step is for the governing body to approve a resolution authorizing the contract amendment. The resolution is attached as (Exhibit 16-A).
RECOMMENDATION: To approve Resolution 2016-22, (Exhibit 16-A) stating the District’s authorization of an amendment of its Retirement Contract with CalPERS to provide Section 20516 (Employees Sharing Additional Cost) of 3% for classic local miscellaneous members.
IMPACTS TO STAFF/RESOURCES: Amendment of the District’s Retirement Contract to provide for the District’s classic local miscellaneous members sharing 3% of the Employer premium contribution would have no cost impact.
BACKGROUND: On October 1, 2013, District employees began sharing 1% of the cost of the Employer Contribution portion of the CalPERS premium. That portion increased to 2%, effective July 1, 2014, and 3% effective July 1, 2015. Correspondingly, District employees begans contributing equal amounts to the Member Contribution portion of the CalPERS premium, making the total employee contribution 6% of salary. Contributions to the Member portion have been applied to the employees’ accounts, as a result of Resolutions approved by the Board in 2013. The process by which CalPERS applies employee contributions to the Employer portion to individual accounts is more complex. It includes an initial resolution, a formal vote of effected members, and a final resolution to amend the contract. During negotiations on successor contracts to the current Memorandums of Understanding, representatives of United Public Employees of California, Local 792/Laborers International Union of North America, requested that the formal contract amendment process be initiated. The initial resolution was approved by the Board on October 17, 2016. The required vote was held and passed. This resolution is the second and final step in the process.
16-A Proposed District Resolution 2016-22
U:\staff\Boardpacket\2016\20161212\ActionItem\16\Item-16.docx