HomeMy WebLinkAboutAGENDA REPORT 2006 0621 CC REG ITEM 10RITEM
10.1k.
CITY OF MOORPARK, CALIFORNIA`,
CRY Council Meeting
ACTION:
BY: t.._�
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Deborah S. Traffenstedt, Administrative Services Director ':D5T"
DATE: June 13, 2006 (CC Meeting of 6/21/06)
SUBJECT: Consider Resolution for Paying and Reporting the Value of Employer
Paid Member Contributions for California Public Employees Retirement
System
BACKGROUND AND DISCUSSION
Attached to this report is a draft resolution that will confirm the City's practice of payment of
member contributions for the California Public Employees Retirement System (CalPERS)
pursuant to Section 20691 of the Government Code and also implement a provision of the
Memorandum of Understanding (MOU) with the SEW Local 998 Union (a separate item on
the June 21 agenda) to pay and report the value of employer paid member contributions
(EPMC) as additional compensation.
The City began paying the CalPERS member contributions for employees in the 1985 -86
fiscal year; however, a resolution was not adopted at that time and CalPERS has
requested a resolution for its records to confirm the City's existing practice. The attached
draft resolution would also initiate a benefit agreed to as a component of the MOU for the
competitive service employees. Under Government Code Section 20636(c) and California
Code of Regulations Section 571(a)(1), an employer has the option of reporting the value
of EPMC to CalPERS as additional compensation. This provision must be adopted and
applied equally to everyone in a group or class of employment (such as the competitive
service employees group, management group, etc.).
Reporting the value of EPMC is not subject to state and federal income taxes nor Medicare
taxes. The cost of reporting the value of EPMC will be an increase in the City's employer
and employee contributions due to the increased earnings reported.
The example below demonstrates the method to report the value of EPMC on
compensations earnable. The employee in the following CalPERS example has $5,000 in
regular earnings and a second payroll entry of $50.00 for uniform allowance. The
g` ►J F'\ .� lx �' R' ►may
Honorable City Council
June 21, 2006, Regular Meeting
Page 2
contribution rate in this example is 7.000% (which is consistent with the City of Moorpark
employee rate).
Type of
Month /Service
Pay
Pay
Earnings
Contribution
Contribution $
Payroll
Period
Code
Rate
Rate
Entry
Normal Payroll
July 2006
01
$5,000.00
$5,000.00
7.000%
$350.00
Entry
Special
July 2006
09
$50.00
$50.00
7.000%
$3.50
Compensation
Entry
Reporting the
July 2006
09
$355.25
$355.25
7.000%
$24.87
Value of EPMC
$5,430.25
$380.12
STAFF RECOMMENDATION
Adopt Resolution No. 2006-
Attachment: Draft Resolution
C, P1
RESOLUTION NO. 2006-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ELECTING TO PAY AND
REPORT THE VALUE OF EMPLOYER PAID MEMBER
CONTRIBUTIONS (EPMC) FOR THE CALIFORNIA PUBLIC
EMPLOYEES RETIREMENT SYSTEM
WHEREAS, the City Council of the City of Moorpark approved employer payment
of member contributions for City employees participating in the California Public
Employees' Retirement System beginning in the 1985 -86 fiscal year; and
WHEREAS, the City Council of the City of Moorpark has the authority to
implement Government Code Section 20636(4) pursuant to Government Code Section
20691;and
WHEREAS, the City Council of the City of Moorpark has a written labor policy or
agreement for Competitive Service employees which specifically provides for the normal
California Public Employees Retirement System (CaIPERS) member contributions to be
paid by the employer and reported as additional compensation; and
WHEREAS, one of the steps in the procedures to implement Section 20691 is
the adoption by the governing body of the City of Moorpark of a resolution to commence
paying and reporting the value of said Employer Paid Member Contributions (EPMC);
and
WHEREAS, the City Council of the City of Moorpark has identified the following
conditions for the purpose of its election to pay EPMC:
1. This benefit shall apply to all employees and City Councilmembers of the
City of Moorpark CalPERS Miscellaneous Membership.
2. This benefit shall consist of paying one hundred percent (100 %) of the
normal contributions as EPMC, and reporting the same percent (value) of
compensation earnable [excluding Government Code Section 20636(c)(4)]
as additional compensation.
3. The Council hereby documents and continues its existing practice of
payment of member contributions pursuant to Section 20691 of the
Government Code, and the effective date of this Resolution for electing to
pay and report the value of EPMC shall be the pay period beginning July
15, 2006.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
�� %. .-
Resolution No. 2006 -
Page 2
SECTION 1. The City Council of the City of Moorpark elects to pay and report
the value of EPMC as set forth herein above.
SECTION 2. The City Clerk shall certify to the adoption of this resolution and
shall cause a certified resolution to be filed in the book of original resolutions.
PASSED AND ADOPTED this 21 st day of June, 2006.
Patrick Hunter
Mayor
ATTEST:
Deborah S. Traffenstedt
City Clerk