HomeMy WebLinkAbout04/20/1999, C9 - IMPLEMENTATION OF THE REPORTING OF EMPLOYER PAID MEMBER CONTRIBUTIONS AS ADDITIONAL COMPENSATION FOR THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 3523 counCIL ��2e _41
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C I T Y OF SAN LUIS O B I S P O
FROM: Ann Slate,Director of Human Resources V"
Prepared By: Karen Jenny,Risk ManageWA
SUBJECT: IMPLEMENTATION.OF THE REPORTING OF EMPLOYER PAID
MEMBER CONTRIBUTIONS AS ADDITIONAL COMPENSATION
FOR THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS,
LOCAL 3523
CAO RECOMMENDATION
Adopt resolution approving the reporting of the value of Employer Paid Member Contributions
as additional compensation for the International Association of Firefighters, Local 3523.
DISCUSSION
The City currently pays the employee's contribution to the California Public Employees'
Retirement System (PERS) for all employees of the International Association of Firefighters,
Local 3523 (Firefighters' Union). Government Code § 20636 (c) (4) allows an employer to
report the value of Employer Paid Member Contributions (EPMC) to PERS as compensation,
provided that there is a written labor policy or agreement acknowledging the fact that the
employer is paying and reporting the value of EPMC for every one in that group or class. Such a
provision was included in the 1997-99 Memorandum of Agreement (MOA)with the Firefighters'
Union, which was approved by the Council on February 16, 1999.
According to the MOA, implementation of the reporting of EPMC as compensation was to occur
when the City's computer payroll system was able to handle the calculations. The Finance
Department has advised us that implementation is now possible with the new payroll system.
Prior to implementation, however, PERS requires that an implementing resolution be passed by
the Council and forwarded to PERS for review and written confirmation of our compliance with
PERS procedures.
This practice will have the effect of increasing final compensation for the purpose of calculating
retirement. Since final compensation is one of the three factors used to calculate an employee's
retirement, this change will result in slightly higher retirement amounts for members of the
Firefighters' Union.
FISCAL IMPACT
Funds for the increased City cost were approved as part of the 1997-99 MOA with the Fire
Union. Employees will pay the increased employee cost (9% of 9%, or 0.81%, for safety and
7% of 7% or 0.49% for non-safety) through payroll deduction.
C9-1
Council Agenda Report—nnplementation Of The Reporting Of Employer Paid Member
Contributions As Compensation For The International Association Of Firefighters, Local523
Page 2
ALTERNATIVES
Since this change was approved as part of the 1997-99 MOA, failure to pass this resolution
would place the City in breech of contract with the Fire Union.
ATTACHMENT
Resolution
C9-2
RESOLUTION NO. (1999 St. _s)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
IMPLEMENTING THE REPORTING OF EMPLOYER PAID MEMBER CONTRIBUTIONS
AS ADDITIONAL COMPENSATION FOR THE INTERNATIONAL ASSOCIATION OF
FIREFIGHTERS,LOCAL 3523
WHEREAS, the City of San Luis Obispo has the authority to implement Government
Code Section 20636 (c) (4)pursuant to Section 20691; and
WHEREAS, the City of San Luis Obispo has a written labor policy or agreement which
specifically provides for the inclusion of normal member contributions paid by the employer on
behalf of the members as additional compensation; and
WHEREAS, one of the steps in the procedures to implement this section is the adoption
by the governing body of the City of San Luis Obispo of a resolution giving notice of its
intention to commence reporting the value of employer paid member contributions (EPMC) as
compensation for all members of a group or class; and
WHEREAS, the following is a statement of the proposed changes in reporting
compensation to PERS:
The City of San Luis Obispo elects to pay 9% of safety employees' and 7% of non-
safety employees' compensation earnable as Employer Paid Member Contributions
and report the same percent (value) of compensation earnable {excluding
Government Code Section 20636 (c) (4)) as additional compensation.
This benefit shall apply to all employees of the International Association of
Firefighters,Local 3523.
The effective date of this resolution shall be April 22, 1999.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo that Government Code Section 20636 (c) (4) shall be implemented pursuant to
Section 20691 by paying and reporting the value of Employer Paid Member
Contributions for all employees of the International Association of Firefighters, Local
3523,as indicated above.
Upon motion of , seconded by ,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
C9-3
Resolution No:
Page 2 -
the foregoing-;resolution was adopted'tlus day-of _- _._ 1999:
--- - - —
`Mayor A11en Setfle -
ATTEST-
Lee-Price,City Clerk -
APPROVED.AS TO FORM:
AOfdl
J rgens , C' Attorney - - —
C.9 4