HomeMy WebLinkAboutE-5 Staff Report - Increased PERS for APOACONSENT ITEM
E-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
FROM: AMELIA AYALA, DIRECTOR OF HUMAN RESOURCES & RISK MANAGEMENT
DATE: JANUARY 19, 2016
SUBJECT: ADOPT RESOLUTION NO. 2016-C8 ESTABLISHING THE EMPLOYEE PAID
MEMBER CONTRIBUTION UNDER THE CALIFORNIA PUBLIC EMPLOYEES’
RETIREMENT SYSTEM (PERS) FOR THE AZUSA POLICE OFFICER
ASSOCIATION (APOA) MEMBERS
SUMMARY:
Through recent negotiations, the Azusa Police Officer Association (APOA) has agreed to have all their
members contribute the full nine (9%) percent employee share towards their pension benefit by Fiscal
Year 2017-2018. Members of the APOA hired before January 1, 2011, are considered Tier I. Tier II
members, hired on or after January 1, 2011, will also be contributing towards their pension benefit. This
action approves a resolution establishing the Employee Paid Member Contribution under the California
Public Employees’ Retirement System for APOA members.
RECOMMENDATION:
Staff recommends that the City Council take the following action:
1)Adopt Resolution No. 2016-C8 establishing the Employee Paid Member Contribution under
the California Public Employees’ Retirement System for the Azusa Police Officer
Association (APOA) members.
DISCUSSION:
Effective January 31, 2016, all APOA Tier I (members hired before January 1, 2011) will contribute 3%
towards the employer’s share of their pension contribution. In Fiscal Year 2016-2017, they will
contribute an additional 3% to total 6% cumulatively. In Fiscal Year 2017-2018, they will contribute an
additional 3% to total 9% cumulatively.
APPROVED
COUNCIL MEETING
1/19/2016
Resolution Establishing Employee Paid Member Contribution (APOA)
January 19, 2016
Page 2
APOA Tier II (members hired on or after January 1, 2011) are already contributing 3% towards their
employee pension contribution and will be required to contribute an additional 3% in Fiscal Year 2016-
2017 and 3% in Fiscal Year 2017-2018 for a cumulative total of 9% .
FISCAL IMPACT:
Estimated savings from APOA members paying towards their retirement benefits over the term of the
MOU are as follows: Fiscal Year 2015-16 $57,200; Fiscal Year 2016-17 $282,400; and Fiscal Year
2017-18 $438,300.
Prepared by:
Amelia Ayala
Director of Human Resources & Risk Management
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachments:
1. Resolution No. 2016-C8
ATTACHMENT 1
RESOLUTION NO. 2016-C8
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
ESTABLISHING THE EMPLOYEE PAID MEMBER CONTRIBUTION UNDER
THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM FOR THE
AZUSA POLICE OFFICER ASSOCIATION (APOA)
WHEREAS, effective February 1, 2016, all Tier I members (City of Azusa Police Officer
Association members hired before January 1, 2011) will contribute 3% towards the employer’s share of
PERS contribution; and
WHEREAS, in fiscal year 2016-2017, Tier I members will contribute an additional 3% to total
6% cumulatively; and
WHEREAS, fiscal year 2017-2018, Tier I members will contribute an additional 3% to total 9%
cumulatively; and
WHEREAS, APOA Tier II members (City of Azusa Police Officer Association members hired
on or after January 1, 2011) already contributing 3% towards their employee PERS contribution will
contribute an additional 3% to total 6% cumulatively in fiscal year 2016-2017; and
WHEREAS, APOA Tier II members will contribute an additional 3% to total 9% cumulatively
in fiscal year 2017-2018.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa does
hereby find, determine and declare as follows:
SECTION 1. That the City Council adopt the Resolution establishing the employee paid
member contribution under the California Public Employees’ Retirement System for the Azusa Police
Officer Association (APOA).
SECTION 2. That a copy of this Resolution shall be provided to the Azusa Police Officer
Association (APOA).
PASSED, APPROVED and ADOPTED this 19th day of January, 2016.
___________________________________ Joseph Romero Rocha
Mayor
ATTEST:
___________________________________ Jeffrey L. Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2016-C8 was duly adopted by the City
Council of the City of Azusa at a regular meeting thereof, held on the 19th day of January, 2016, by the
following vote of Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey L. Cornejo, Jr.,
City Clerk
APPROVED AS TO FORM: ___________________________________ Best Best & Krieger, LLP City Attorney