City Council Agenda
Memo to:
Manteca City Council
From:
Stephanie Van Steyn, Director of Human Resources
Date:
April 2, 2024
Subject:
Amendment to CalPERS Contract for bargaining units: 1) Manteca Police Officers Association; and 2) Manteca Public Safety Management Association
Recommendation:
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Adopt a resolution approving an amendment to contract between the Board of Administration California Public Employees Retirement System (CalPERS) and the City Council of Manteca to provide provisions of Retirement Law (Government Code) section 20516, Employee Cost Sharing and waive the first readying of substitution of the tile and introduce an ordinance of the City Council of the City of Manteca, state of California, adding 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.
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Background:
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.
Manteca Police Officers Association (MPOA) - Employee Cost Sharing
The City's CalPERS contract includes employee cost-sharing for classic tier 1 (3% @ 50 formula) and classic tier 2 (3% @ 55 formula) members covered under the MPOA bargaining unit. Since 2014, CalPERS would only allow a maximum cost-share of 5.174%, and the cost-sharing provision was only allowed through December 31, 2023. Although cost sharing has continued under the MOU, a contract amendment is preferred for the reasons set forth below.
Pursuant to the approved memorandum of understanding (MOU) with MPOA effective July 1, 2023, through June 30, 2026, under MOU provision V. 34 - Retirement, the City agreed to initiate the CalPERS contract amendment process ...
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