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additional 2% of compensation toward the City’s required CalPERS contribution in 2016 <br />(total of 6%), and will require Classic members to contribute an additional 1% (7% total) <br />toward the City’s required CalPERS contribution in 2017, with the 2016 and 2017 <br />increases (3% total) in the employee cost share towards the City’s required contribution <br />to CalPERS pursuant to Government Code Section 20516(a). For each of the 2016 and <br />2017 cost share increases, CalPERS requires separate contract amendments. City <br />Council approved the first of these two contract amendments on March 28, 2016. <br /> <br />POA <br />As a part of the POA agreement, all Tier 1 and Tier 2 Classic employees are required to <br />contribute 7% toward the City’s required contribution to CalPERS through Government <br />Code Section 20516(f). This 7% cost sharing arrangement was accomplished outside <br />the City’s CalPERS contract. The successor 2015-2016 POA MOU required the City to <br />amend its contract with CalPERS to provide for 3% of the 7% cost share paid by Tier 1 <br />and Tier 2 Classic employees towards the City’s required contribution to CalPERS <br />pursuant to Government Code Section 20516(a). <br /> <br /> <br />ANALYSIS <br />In order to implement the provisions of the adopted MOUs, the Council must once again <br />amend the City’s contract with CalPERS. The CalPERS contract requires the City <br />Council to adopt a Resolution of Intention to approve an Amendment to the Contract <br />and introduce an Ordinance authorizing an amendment to the Contract. The Council will <br />be presented with the final Ordinance Authorizing an Amendment to Contract at their <br />regular meeting on January 9, 2017, as instructed in the CalPERS approved timelines. <br /> <br />The specific IAFF MOU components that are the subject of this City Council <br />recommended action are as follows: <br /> <br />· In 2017, IAFF Tier 1 and Tier 2 members will contribute an additional 1% (3% <br />total) to CalPERS retirement via cost sharing of the employer’s share as provided <br />for in California Government Code Section 20516(a), Employee Cost Sharing of <br />Additional Benefits. <br />· In 2017, Tier 1 and Tier 2 POA members will contribute 3% to CalPERS <br />retirement via cost sharing of the employer’s share as provided for in California <br />Government Code Section 20516(a), Employee Cost Sharing of Additional <br />Benefits. <br /> <br />State CalPERS law permits cost-sharing of required employer contributions through two <br />different methods. Under the first method, in accordance with Government Code <br />Section 20516(f), pursuant to an MOU, the employee is required to pay the standard <br />6.4.A. - Page 2