Laserfiche WebLink
8.3.A. - Page 2 <br /> Paid Member Contribution (EPMC). This contribution was counted as compensation for <br /> the purpose of calculating pension benefits in accordance with established CaIPERS <br /> rules and regulations governing such contributions. EPMC has been paid for all <br /> employees in these management groups who are in the City's Tier 1 and Tier 2 pension <br /> plans. On January 1, 2013, the Public Employees' Pension Reform Act (PEPRA) was <br /> implemented, creating a third tier (Tier 3) with a lower pension formula for all new <br /> employees hired by the City who meet the definition of a new member under CaIPERS. <br /> Among the reforms included in the new law was the requirement that agencies could <br /> not pay the member contributions for all new CaIPERS members. Therefore, new <br /> employees hired by the City who were also new members under CaIPERS after <br /> January 1, 2013, are ineligible for EPMC and currently pay their full member <br /> contribution. <br /> Consistent with the intentions of PEPRA, and in order to maintain equity among <br /> employee groups, the City sought to eliminate Employer-Paid Member Contributions for <br /> CaIPERS members in all pension tiers. In 2014, the City reached agreements with <br /> Executive Management, RCMEA and COA, to begin shifting the payment of the 7% <br /> EPMC from the City to the employee. This change was scheduled to take place over the <br /> course of three years, so that by October 2016 employees would begin paying the full <br /> member contribution. <br /> ANALYSIS <br /> The City is required by CaIPERS to adopt a resolution to modify, or eliminate, the <br /> payment of the Employer-Paid Member Contribution. In September 2014, City Council <br /> approved and adopted a resolution effectuating a change with CaIPERS adding two <br /> percent to be paid by the employee towards the retirement contribution, and in October <br /> 2015, City Council approved and adopted a resolution effectuating a change with <br /> CaIPERS adding an additional two percent to be paid by the employee towards the <br /> retirement contribution. With the approval and adoption of this resolution, an additional <br /> amount of three percent will be paid by the employee towards the retirement <br /> contribution. With this final change, employees will pay the full member contribution <br /> beginning October 31 , 2016. <br /> ALTERNATIVES <br /> Changes to the EPMC amounts were previously negotiated with employee groups and <br /> approved by Council. Therefore, no alternative actions are proposed. <br /> FISCAL IMPACT <br /> The agreement with Executive Management, RCMEA and COA, for Tier 1 and Tier 2 <br /> PERS members to pay the full employee contribution to CaIPERS, was part of the <br /> adopted Executive Management Summary of Benefits and Memoranda of <br />