2004 AGN JUN 15 I10 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT Item #10 FOR COUNCIL MEETING OF JUNE 15,2004 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Anthony Arroyo, Administrative Analyst 11 SUBJECT: Amend Resolution R-32-04 and R-33-97 approving Government Code Section 20636(c)(4) allowing the City of Colton to report the value of the Employer Paid Member Contribution (EPMC) with the International Brotherhood of Electrical Workers (IBEW), the Communication Worker's of America (CWA), CPOA, the Middle Manager's and the Executive groups DATE: June 7, 2004 _T ITH r.01 :loll] lk 113 During the previous negotiations with the city's various bargaining groups, the City of Colton did not correctly adhere to the requirement of reporting the employer and employee's portion of its respective PERS contribution. After review by CalPERS, it was requested that the City of Colton make some revisions to the language. This is a requirement mandated by PERS as stated in Government Code Section 20691, which, in part, states, "a contracting agency or school employer may pay all or a portion of the normal contributions required to be paid by a member...." The negotiations that are currently underway have provided the city with the opportune time to make these corrections to all bargaining groups. DISCUSSION/ANALYSIS: The city will continue to pay 4% of the 8% contribution to PERS for the 2.7%@55 retirement benefit for miscellaneous employees. In as much as this may not be specified in the each of the bargaining groups' MOUs, the city will amend each MOU via side letter to reflect this current Council action or update the MOUs for those bargaining groups who are currently negotiating their contracts. The bargaining groups affected include: the International Brotherhood of Electrical Workers (IBEW), the Communication Worker's of America (CWA), CPOA, the Middle Manager's and the Executive group. The value of the 4% the city contributes on behalf of the employees will be reported as "special compensation," which includes payments made to CalPERS based on the language stipulated in each of the MOUs. This is allowable under Government Code Section 20636(c)(4). As part of this Council action and resolution, the contributions made by the member will continue to be tax-deferred per United States Code Section 414(h)(2). FINANCIAL IMPACT: None.