City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Stephanie Van Steyn, Director of Human Resources |
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Date: |
March 17, 2026 |
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Subject: |
Amendment to contract between the Board of Administration California Public Employees’ Retirement System and the City of Manteca to Provide Provisions of Retirement Law Section 20516 - Employee Cost Sharing. |
Recommendation:
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Waive the second reading by substitution of title and adopt an Ordinance of the City Council of the City of Manteca, State of California, adding to Chapter 2.48.045 to the Manteca Municipal Code to amend the contract between the California Public Employee Retirement System and the City of Manteca per Government Code Section 20516; authorizing the Amendment to the contract between the Board of Administration of the California Public Employees’ Retirement System (CalPERS) and the City of Manteca, to include the provisions of retirement law Government Code section 20516 (Employee Cost Sharing) for the following employee groups: 1) Manteca Firefighters IAFF Local 1874 (Fire Unit); 2) Manteca Mid-Manager Association; 3) Manteca Police Employees’ Association; 4) Unrepresented Executive Management Group; and 5) Unrepresented Management/Confidential Employees’ Unit.
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Background:
The City Council waived the first readings of substitution of the title and introduced the ordinances at the Regular City Council Meeting of February 17, 2026 (Attachment 1). Attachments 2 and 3 include the City’s certification of this. If approved, this ordinance will be effective thirty days following the adoption.
CalPERS retirement benefits are funded with member (employee) contributions and employer contributions. Under Government Code section 20516 of the California Public Employees’ Retirement Law (PERL), a contracting agency and its employees may agree, in writing, to share the costs of the employer contribution. The Memorandums of Understanding (MOUs) and Unrepresented Compensation Plans include CalPERS contract amendment method in the following amounts:
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Employee Group |
Tiers to Cost-Share 20516(b) |
Percentage of Cost-Share (employer portion) |
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Manteca Firefighters IAFF Local 1874 (Fire Unit) |
Safety Fire Classic Tier I |
9% |
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Mid-Manager Association (MMA) |
Miscellaneous Tier I Miscellaneous Tier II PEPRA |
5.75% |
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Manteca Police Employees’ Association (MPEA) |
Miscellaneous Tier I Miscellaneous Tier II PEPRA |
11% |
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Unrepresented Executive Management |
Miscellaneous Tier I Miscellaneous Tier II Safety Police Tier I (Police Chief) Safety Fire Tier I (Fire Chief) Safety Police Tier II (none at this time) PEPRA Miscellaneous PEPRA Safety Police (none at this time) PEPRA Safety Fire (none at this time) |
8% |
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Unrepresented management & exempt-level confidential employees’ unit |
Miscellaneous Tier I Miscellaneous Tier II Safety Fire Tier I (Deputy Fire Chief)- currently 2 positions filled at Safety Tier I Safety Police Tier I and II (none at this time) PEPRA Miscellaneous PEPRA Safety Police (none at this time) PEPRA Safety Fire (none at this time) |
5.75% |
To implement these provisions, the City must amend its contract with CalPERS to include the provisions of retirement law, Government Code section 20516, Employee Sharing Cost of Additional Benefits. This contract amendment will allow these employee groups to share in the cost of what is defined as “employer contributions” to the CalPERS retirement system on a pre-tax basis. Employee contributions toward the employer’s cost of retirement benefits would also be credited to the employees’ CalPERS member accounts and earn interest, the same as normal member contributions.
The Certification of Employee Election (Attachment 4) is included with this staff report. The Certification of Compliance with Government Code Section 20516 (Attachment 5) was certified by the City Clerk.
The next step in the contract amendment process is for Manteca City Council to adopt an Ordinance (Attachment 6), authorizing an Amendment to the Contract with CalPERS (Exhibit 1 to the Proposed Ordinance), which according to the retirement law must happen no sooner than 20 days following Adoption of the Resolution (February 17, 2026).
If the Ordinance is adopted by Council on March 17, 2026, the contract amendment will be effective the first day of the pay period following the 30-day wait period following adoption of the Ordinance. The 30-day wait period of this Ordinance would end on April 16, 2026, and the first day of the next pay period would be May 1, 2026.
Fiscal Impact:
Amending the City’s contract with CalPERS to include the provisions of Government Code section 20516, Cost Sharing, will not increase City expenditures for retirement benefits.
There is no fiscal impact for this action.
Documents Attached:
1. Attachment 1 - Resolution R2024-53
2. Attachment 2 - Certification of Governing Body’s Action (CON-12)
3. Attachment 3 - Certification of Compliance with Government Code Section 7507 (CON-12A)
4. Attachment 4 - Certification of Employee Election (CON-15)
5. Attachment 5 - Certification of Compliance with Government Code Section 20516
6. Attachment 6 - Ordinance
7. Attachment 7 - Amendment to Contract (Exhibit to Ordinance)