Laserfiche WebLink
7.1.A. - Page 38 <br /> Vice Mayor Foust would like a best guess of the number of employees in Redwood City <br /> between the first group before 2013 and the second group. Ms. Lockhart did provide <br /> some numbers as to the number of employees in Tier 2 and in Tier 3. Dr. Bell added <br /> that the City will bring back to Council the information requested. He further said that it <br /> was very fortunate to enact the second Tier when they did, because PEPRA prohibited <br /> agencies from having a second tier. He thanked Council and the bargaining units for <br /> their help. <br /> Ms. Lockhart stated that the employees pay 50% of normal cost, and there are limits <br /> and caps to pensionable compensation. She also explained the concept of "classic <br /> members" and how they can retain the existing retirement formula and that the goal is <br /> that all employees pay 50% of the normal cost. She added that this needs to be <br /> achieved through the bargaining process. Furthermore, higher contributions may be <br /> negotiated. She shared with Council implications for the city administratively in <br /> ensuring the different classification of tiers are not missed, labor relations are more <br /> complex due to the different tiers, there hasn't been a change of recruitment, and the <br /> financial implications is that the short term gains are very small. The City has 12 <br /> members that are impacted by PEPRA. <br /> A Council Member thanked Ms. Lockhart for her presentation. He asked if the City has <br /> been working with the labor groups, especially to understand this. She mentioned that <br /> they are currently working with four of their bargaining units. He wants to know if the <br /> employees are aware of this, which she confirmed, especially about the issue of 50% of <br /> normal cost. Another Council Member thanked Ms. Lockhart for being thorough. She <br /> added that this was a complex issue and was disappointed that there were no savings. <br /> She is concerned about the multiple bargaining units, but hoped that they will get <br /> through this together. One other Council Member appreciated both Ms. Lockhart's and <br /> Mr. Ponty's reports. He is glad that these issues are brought to light, although not <br /> positive news, he feels that this issue is not just a Council matter, but everyone's issue. <br /> Another Council Member asked if there are additional opportunities for employees to set <br /> aside their retirements like 401 ks or deferred plans. Ms. Lockhart added that each labor <br /> group has some form of deferred compensation plan. The Council Member feels that <br /> perhaps more workshops for retirement planning are needed. Dr. Bell did say that there <br /> are workshops provided, but one strategy is for the employee to pick up more of the <br /> cost. <br /> Vice Mayor Foust said it would be helpful to have a one page fact sheet to explain to the <br /> community that staff does not contribute to Social Security, define benefit versus define <br /> contribution, and system differences between 2011 and 2013. She also believes the <br /> City needs to look at CaIPERS and see how the pension funds are invested. She <br /> believes that the more we can put on our website (about this issue), the better the <br /> community will understand that the public sector is different than the private sector. <br /> Mayor Gee also thanked Ms. Lockhart and said that not only does the Council need to <br /> know about this, but so does the community. There is a dynamic of people living longer <br /> and how will people survive. He mentioned that his company discussed setting aside <br /> 20% for retirement monthly because Social Security was never about retirement. <br /> CITY COUNCIL February 10, 2014 <br /> MEETING AGENDA PAGE 10 <br />