1997 AGN APR 15 I08 - Laserfiche WebLink

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I - CITY OF COLTON AGENDA REPORT For City Council Meeting of April 15, 1997 TO: HONORABLE MAYOR & APPROVAL: Malik Dantala Freeman, City Manager FROM: Gracie Fernandez Harmon, Personnel Director 4�k SUBJECT: Resolution to Approve Change in Reporting Compensation to PERS to Include Employer Paid Member Contributions as Compensation Pursuant to Memoranda of Understanding with the Following Bargaining Units: General, Management/Confidential, Fire, Police Management, and Executive. TE: April 8, 1997 BACKGROUND: The Fire, General, Management/Confidential, Police Management and Executive bargaining units entered into agreements with the City of Colton in 1992 and 1993 which provide for the benefit that permits employees to convert to salary, in the final year before retirement, the employer paid PERS employee contribution. Pursuant to these agreements, the City was obligated to amend its contract with PERS. It was recently brought to my attention that the City never initiated the process to amend the PERS contract as required by the memoranda of understanding (MOD's). DISCUSSION/ANALYSIS: In checking with PERS, the City has two options for implementing the benefit pursuant to the MOU's, either by resolution or by contract amendment. In order to amend the PERS contract, we would first have to request a valuation from the Contract Services Unit of PERS; this process usually requires a minimum of six months. However, if we implement by resolution, PERS does not require a valuation. I spoke with Ms. Ellie Wright of PERS and she confirmed that the cost is the same to the City regardless of which method is used for implementation of the benefit. There are currently two employees who are planning to retire within the next twelve months who are being severely impacted by not being able to convert the employer paid PERS employee contribution to salary. In order to minimize the impact to these individuals, staff is recommending that the benefit be implemented by resolution of the City Council. FINANCIAL IMPACT: The Finance Department has estimated that this benefit will impact the general fund for the remainder of this fiscal year by $20,199. However, the cost to the City for failure to implement the provisions of the MOU's could be greater. RECOMMENDATION: That City Council adopt the attached resolution to include Employer Paid Member Contributions (EPMC) as compensation in compensation reports submitted to PERS. i ghdata/agenda/EPMC MO.doc Item # 8 r