For City Council Meeting [July 13, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Stephen Erlandson, Deputy City Manager
Title
Request City Council approve a Supplement Agreement with the City Government Management Association (CGMA) to specifically account for the cost sharing formula for any PEPRA employees of CGMA.
Body
BACKGROUND
The Memorandum of Understanding (MOU) associated with CGMA, along with the City's PERS contract, allows for cost sharing with employee's pursuant to the written agreement with said employee group. Procedures related to cost-sharing require that the exact cost-sharing rate percentage be provided to CalPERS. If the MOU specifies a methodology for calculating the cost-sharing rate, a signed and ratified side letter must indicate the exact cost sharing rate percentage. The City Manager and CGMA have met and conferred in good faith limited to implementing the CalPERS regulations related to PEPRA normal cost, and GGMA has agreed to this Supplemental Agreement as necessary to conform to state law as it relates to its PEPRA employees.
This Supplemental Agreement to the CGMA MOU will ensure the City's PEPRA employees within CGMA are treated consistently in accordance with CalPERS regulations related to PEPRA normal cost. The cost-sharing formula associated with each of the non-safety PEPRA groups has been updated from 1.25% to .75% due to the change in the City's required PEPRA member contribution rate - as provided from PERS in the Annual Valuation Report.
The current methodology within the MOU does not specify calculations for calculating the cost-sharing rate, resulting in the need to provide a Side Letter in order to provide the specific cost-sharing calculation.
ANALYSIS/DISCUSSION
To meet reporting requirements for CalPERS reporting structure, the CGMA MOU is modified by the Side Letter solely to update the specific calculating methodology and cost-sharing rates. Moving forward, sh...
Click here for full text