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8.3.A. - Page 1 <br /> REPORT <br /> To the Honorable Mayor and City Council <br /> From the City Manager <br /> October 24, 2016 <br /> SUBJECT <br /> Notice of Intention to Eliminate Employer-Paid Member Contributions (EPMC) for Tier 1 <br /> and Tier 2 Executive Management, Redwood City Management Employees' Association <br /> (RCMEA), and Chief Officers' Association (COA) members <br /> RECOMMENDATION <br /> Adopt a resolution eliminating payment and reporting of Employer-Paid Member <br /> Contribution (EPMC) for Tier 1 and Tier 2 Executive Management, Redwood City <br /> Management Employees' Association (RCMEA), and Chief Officers' Association (COA) <br /> members <br /> BACKGROUND <br /> The City of Redwood City participates in the California Public Employees' Retirement <br /> System (CaIPERS) to provide pension benefits to employees. These benefits are <br /> funded by a combination of contributions from employers and employees. Employees <br /> are members of CaIPERS and the CaIPERS system has designated certain <br /> contributions from employees as "member contributions." In the past, these <br /> contributions could be paid directly by the employee or by the employer; when paid by <br /> the employer, the contribution was described as an Employer-Paid Member <br /> Contribution. In an effort to address the escalating cost of CaIPERS pension benefits, <br /> the City worked with employees and labor groups to implement a series of structural <br /> reforms in order to maintain an equitable and fiscally sustainable compensation <br /> program. In January, 2014, Council adopted a Summary of Benefits for Executive <br /> Management 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 <br /> were incorporated in the Memoranda of Understanding approved by Council on June 9, <br /> 2014. <br /> Prior to adoption of the 2014 Executive Management Summary of Benefits and <br /> Memoranda of Understanding with RCMEA and COA, the City paid the seven percent <br /> required member contribution on behalf of management employees as an Employer- <br />