►
Description
San Bruno Special City Council Meeting
November 15, 2012
10b. Amend CALPERS Contract
A
B
You
honorable
mayor
members
of
the
City
Council,
as
you
are
aware,
the
city
currently
contracts
with
CalPERS
to
provide
retirement
benefits
to
its
employees.
We
provide
benefits
at
a
2.7
at
55
formula
for
our
miscellaneous
employees
and
a
three
percent
at
50
formula
for
safety
employees.
During
the
course
of
recent
negotiations.
One
of
the
items
that
the
city
has
been
working
towards
is
getting
a
provision
within
those
negotiated
agreements
for
second
tier
retirement.
B
We
have,
at
this
point
in
time
reached
agreements
with
four
of
our
six
bargaining
units,
including
fire
management
employees,
association
miscellaneous
in
the
mid
management
unit.
One
complication
during
the
course
of
recent
negotiations
on
this
topic
is
the
passage
of
Assembly
Bill
340.
The
pension
reform,
which
you
heard
about
previously
from
our
city,
attorney
at
some
detail
that
basically
I'm
picking
on
you
that.
B
Which
establishes
new
retirement
formulas
for
new
employees
into
the
CalPERS
system
after
january?
First
2013,
the
caveat
is
the
way
new
employees
are
defined,
and
so
the
pension
reform
defines
new
employees
as
employees
that
are
new
to
CalPERS.
What
are
not
the
boys
that
are
not
covered
our
new
employees
to
San
Bruno
that
are
coming
from
another
CalPERS
agency.
B
Under
the
pension
reform
legislation,
those
employees
would
be
coming
into
San
Bruno
at
the
current
formula,
so
the
2.7
at
55
and
the
three
at
50
establishing
a
second
tier
with
CalPERS,
would
allow
those
new
employees
to
San
Bruno,
but
coming
from
another
CalPERS
agency
to
come
in
at
a
two
percent
at
55
formula
for
salinas
and
a
three
percent
at
55
formula
of
force
safety.
Now
because
of
this
pension
reform,
CalPERS
is
requiring
that
all
contract
amendments
be
finalized,
be
in
place
by
December,
30th
2012.
B
Their
view
of
this
legislation
is
that
after
that
date,
there
are
no
more
contract
amendments
with
CalPERS.
So
this
is
essentially
the
window
that
we
have
to
operate
within
is
to
execute
this
contract
amendment
in
that
time
frame.
So,
in
order
to
proceed
with
the
contract
amendment,
we
first
have
to
adopt
the
resolution
of
intent,
which
is
the
item
that's
before
you
tonight.
B
That
essentially
says
that
we
intend
to
amend
our
contract
with
CalPERS
and
doing
that
we
have
to
disclose
a
number
of
items,
one
which
is
the
disclosure
of
the
cost
savings
that
will
come
from
the
establishment
of
the
second
tier
and
those
were
included
in
the
council
packet
and
are
available
also
for
the
public
to
look
at
the
decreases
in
the
miscellaneous.
Employer
rate
will
occur
as
new
employees
are
hired
into
the
second
tier.
So
at
this
point
in
time
is
difficult
to
estimate
what
the
true
savings
will
be.
B
However,
they
will
occur
sometime
beginning
in
2015-16,
and
the
new
employee
contribution
rate
would
be
seven
percent,
rather
than
the
eight
percent
that
employees
currently
pay
for
the
2.7
and
55
for
the
fire
unit.
The
cost
valuation
report
provides
that
the
new
employer
contribution
rate
would
be
20
point
nine
percent,
as
opposed
to
the
thirty
six
point,
six
percent
that
we
are
currently
paying
for
existing
fire
employees.
B
However,
it's
the
it's
not
as
it
seems
is
not
as
sixteen
percent
savings,
because
there
are
certain
factors
that,
as
new
employees
are
hired
into
the
new
tier,
the
right
for
the
old
tier
will
continue
to
increase.
So
in
actuality.
The
savings
is
estimated
to
be
just
one
point:
eight
percent
at
this
point
in
time
for
fire
employees,
so
in
order
to
move
forward
with
the
actual
contract.
B
And
so,
while
we've
reached
the
agreement
with
the
fire
unit,
which
includes
the
majority
of
employees,
we
do
have
to
also
reach
an
agreement
and
we
are
working
towards
a
side
letter
of
agreement
or
something
along
those
lines
to
include
those
two
battalion
Chiefs
that
are
in
the
public
safety
pin
management
unit
and
then,
similarly
for
the
miscellaneous
pers
unit,
we
have
the
agreement
of
the
majority
of
employees.
However,
we
do
have
miscellaneous
pers
employees
as
part
of
the
POA.
We
have
clerks
and
dispatchers.
B
So
basically,
tonight
you'd
be
adopting
the
resolution
of
intent.
We'd
wait
20
days,
and
these
current
schedule
would
be
to
if
we
reach
agreements
with
those
two
bargaining
units
on
this
matter,
we
would
move
forward
with
a
adoption
of
an
urgency
ordinance
at
the
first
meeting
in
December,
because
it
does
have
to
be
active
in
in
place
by
December
30th.
So
the
only
way
for
that
to
occur
would
be
doing
urgency,
ordinance,
good.