TO: Board of Supervisors
FROM: Christine Briceno, Chief Human Resources Officer
REPORT BY: Joy Cadiz, Staff Services Manager
SUBJECT: Resolution to Establish Retirement Cost Sharing Contributions for Napa Association of Public Employees and Napa Association of Probation Professionals
RECOMMENDATION
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Adopt a Resolution to affirm the retirement cost sharing contributions for Napa Association of Public Employees and Napa Association of Probation Professionals, effective June 21, 2025, for Fiscal Year 2025-2026. (Fiscal Impact: $25,000 expense reduction; General Fund; Budgeted; Discretionary)
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BACKGROUND
Retirement rates are based on two factors: 1) the total employer rate, which fluctuates year-to-year and is based on the actuarial valuation report provided by CalPERS by retirement formula, and 2) the employee statutory rate determined by CalPERS and by retirement formula.
The legislature amended Government Code section 20516 of the Public Employees’ Retirement Law to simplify the retirement cost sharing process. Beginning January 1, 2019, public agencies are no longer required to amend their contract with CalPERS to implement new cost sharing contributions.
A provision of the Napa Association of Public Employees (NAPE) Public Services Employee and Supervisory Units and the Napa County Probation Professionals Association (NCPPA) Non-Supervisory and Supervisory Units Memoranda of Understanding dictate the formula for employees to cost share a portion of the contribution toward retirement each fiscal year. For the County to report the cost sharing contributions to CalPERS, signed Side Letter Agreements must be provided to CalPERS. Today’s action will affirm the retirement cost sharing contributions for represented Napa County employees in NAPE and NCPPA for Fiscal Year 2025-2026. There is no change to the cost sharing contribution for the Deputy Sheriff’s Association units.
The miscellaneous members in the NAPE Public Service Employee and Supervisory Units through their Memoranda of Understanding will participate in the following retirement cost sharing contributions effective June 21, 2025:
• PSE and PSE Supervisory employees in Retirement Tiers I and II (hired before October 29, 2011) with a 1.936% employee cost share. This is a rate reduction of 0.410% per the MOU.
The members in the NCPPA Units through their Memoranda of Understanding will participate in the following retirement cost sharing contributions effective June 21, 2025:
• NCPPA Non-Supervisory and Supervisory employees in Retirement Tier I and II (hired before October 29, 2011) with a 2.141% cost share. This is a rate reduction of 0.205% per the MOU.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
The requested departmental budgets for Fiscal Year 2025-2026 include the employer’s retirement costs for each employee. The rate reduction for NAPE Units is passed through to the employees through reduction of the cost share rate. The rate reduction for NCPPA Units is split evenly with the employees through rate reduction of both the employer rate and the employee cost share rate. The employer expense reduction related to this rate change is approximately $25,000 annually. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The terms of the current labor agreements require the County to share any cost increases in retirement contributions. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Funding for the employer’s portion of retirement costs is included in the departmental budget for Fiscal Year 2025-2026. Retirement contributions for future years will be made in accordance with employee labor agreements and policies based on the annual retirement contribution rates provided by CalPERS. |
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Consequences if not approved: |
The County will not comply with previously approved agreements with CalPERS or the labor agreements with the employee bargaining units. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.