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HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2011 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City modifying the contribution rates to the Public Employees' Retirement System by decreasing the City's contribution and incrementally adding a member contribution paid by the City of National City's Firefighters' Association Represented Employees reaching a 100% o employee contribution of 9% in July, 2013 PREPARED BY: ,ilia Mufioz, HR Technician DEPARTMENT:, Hums, Resources PHONE: 336-43091 APPROVED. BY: `"'� , EXPLANATION: On August 16, 2011, the City Council approved a Memorandum of Understanding (MOU) between the City of National City and the National City Firefighters' Association (NCFFA) for the period January 1, 2011 through December 31, 2013. The terms of the MOU included an amendment to Article 21, Public Employees' Retirement System (PERS). Since July', 2002, the City of National City has paid the nine percent (9%) employee contribution to PERS for NCFFA represented employees. As` amended, NCFFA employees lave—. agreed to pay the employee contribution as follows: three percent (3%) effective January 1, 2011, three percent (3%) effective July 10, 2012, and three percent (3%) effective July 9, 2013. As such, NCFFA employees will assume responsibility for the full employee contribution effective fiscal year 2013/2014. To effect this provision, pursuant to Government Code Section 20691, the City Council must amend the contract between the Board of Administration of PERS and the City Council by adopting a resolution specifying the plan change. Therefore, staff seeks a resolution reducing the Employer Paid Member Contribution to Ca1PERS for NCFFA employees to six percent (6%) effective January 1, 2011, three percent (3%) effective July 10, 2012, and eliminating the Employer Paid Member Contribution effective July 9, 2013. FINANCIAL STATEMENT: ACCOUNT NO. Fiscal Year Savings FY 11/12 $184,764.41 FY 12/13 $245,103.22 FY 13/14 $386.190.55 ENVIRONMENTAL REVIEW N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: [Recommend approval of resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: [Resolution j APPROVED: Finance APPROVED: MIS