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THE CITY OF 1 3 CITY COUNCIL AGENDA REPORT pL£ASANTON February 20, 2018 Human Resources TITLE: ADOPT A RESOLUTION OF INTENTION AND INTRODUCE AN ORDINANCE TO AMEND THE CONTRACT BETWEEN THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) AND THE CITY OF PLEASANTON TO PROVIDE SECTION 20516 (EMPLOYEES SHARING ADDITIONAL COST) OF AN ADDITIONAL 1.5% FOR CLASSIC CALPERS LOCAL POLICE MEMBERS OF THE CITY OF PLEASANTON SUMMARY The City of Pleasanton and the Pleasanton Police Officers' Association (PPOA) adopted a Memorandum of Understanding (MOU) in 2017 which includes the implementation of additional cost sharing of pensions for members considered "classic" by the California Public Employees' Retirement System (CaIPERS). Classic members are currently paying 10.5% toward their pension costs. The additional employee contribution included in the current MOU is one and one half percent (1.5%) of the employer's CaIPERS rate for a total employee contribution of 12%, and is effective June 2, 2018. In order for this employee contribution to be recognized by CaIPERS, the City must undergo the contract amendment process with CaIPERS. To execute the contract amendment, the City must first adopt a resolution of intention and introduce an ordinance to amend the contract. RECOMMENDATION It is recommended that the City Council adopt the resolution of intention and introduce an ordinance to amend the contract between CaIPERS and the City of Pleasanton to implement an additional one and one half percent (1.5%) cost sharing for classic local police members of the City of Pleasanton. FINANCIAL STATEMENT The total savings of one and one-half percent (1.5%) employee cost sharing contributions by classic local police members is approximately $133,000 per year.