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6.3.A. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> October 12, 2015 <br /> SUBJECT <br /> Notice of Intention to Change the Reporting Value of Employer Paid Member <br /> Contributions (EPMC) for Tier 1 and Tier 2 Executive Management, Redwood City <br /> Management Employees' Association (RCMEA), and Chief Officers' Association (COA) <br /> members <br /> RECOMMENDATION <br /> Adopt a resolution approving a modification of the employer and employee contribution <br /> amounts for Employer Paid Member Contribution (EPMC) for Tier 1 and Tier 2 <br /> Executive Management, Redwood City Management Employees' Association (RCMEA, <br /> and Chief Officers' Association (COA) members. <br /> BACKGROUND <br /> In an effort to address the escalating cost of CaIPERS pension benefits, the City worked <br /> with employees and labor groups to implement a series of structural reforms in order to <br /> maintain an equitable and fiscally sustainable compensation program. In January, <br /> 2014, Council adopted a new Summary of Benefits for Executive Management <br /> employees which included an increase in the amount that the employee contributes to <br /> the cost of the pension benefit. The City negotiated similar changes with management <br /> employee associations, including the Chief Officers Association (COA) and the <br /> Redwood City Management Employees Association (RCMEA), and these changes were <br /> incorporated in the new Memoranda of Understanding approved by Council on June 9, <br /> 2014. <br /> Prior to the adoption of the current Executive Management Summary of Benefits and <br /> Memoranda of Understandings with RCMEA and COA, the City paid the seven percent <br /> (7%) required member contribution on behalf of management employees as an <br /> Employer-Paid Member Contribution (EPMC). This 7% contribution was added to the <br /> eligible compensation for the purpose of calculating pension benefits in accordance with <br /> established CaIPERS rules and regulations governing such contributions. EPMC has <br /> been paid for all employees in these management groups who are in the City's Tier 1 <br /> and Tier 2 pension plans. The Tier 1 formula applies to employees hired before <br /> October 24, 2011. The Tier 2 formula was established by Council effective October 24, <br /> 2011 with a reduced benefit formula, and applies to new hires after that date. On <br />