This report recommends adopting the necessary resolution to commence reporting the value of employer paid member contributions (EPMC) of seven percent (7.0%) as compensation for management (including councilmembers who have elected PERS membership) and confidential employees.

PERS defines two categories of public employees who are covered under the system (1) Miscellaneous employees and (2) Safety employees. For the City of Sunnyvale, members represented by the Sunnyvale Employees Association (SEA), the Communication Officers Association (COA), Service Employees International Union, Local 715 (SEIU) representing regular part-time employees, and unrepresented management and confidential employees are Miscellaneous members under PERS. Employees represented by the Public Safety Officers Association (PSOA), and sworn management employees are Safety members under PERS.

Currently, the amount of the employer paid member contribution is not reported as compensation, as this option was not offered by PERS prior to July 1, 1994.

Effective July 1, 1994, under Government Code Section 20636(c), an employer now has the option of reporting the value of employer paid member contributions (EPMC) to CalPERS as additional compensation. This provision must be adopted and applied equally to everyone in a group or class of employment.

This option was negotiated as part of the 1997-2003 MOU with the Public Safety Officers Association, and as part of the 1999-2003 MOU with the Communication Officers Association, and produces increased retirement benefits for affected employees.

The fiscal impact of this benefit has been planned for within the Benefits Fund. Further, the cost of this benefit is shared with management and confidential employees.

The public is notified of this action through placement on the City Council Agenda. Affected employees will be notified by memorandum.

Alternative #1; adopt the attached Resolution authorizing the City to report the value of employer paid member contributions (EPMC) as additional compensation for each management (including councilembers who have elected PERS membership) and confidential employee retroactive to June 27, 1999.

Prepared by:

Reviewed by:

Myriam Castaneda
Human Resources Supervisor

Reviewed by:

David L. Nieto
Director, Human Resources

Approved by:

Robert S. LaSala
City Manager