TO: Board of Supervisors
FROM: Christine Briceño, Chief Human Resources Officer
REPORT BY: Joy Cadiz, Staff Services Manager
SUBJECT: Resolution Directing the Chief Human Resources Officer to Initiate a Contract Amendment to Implement Retirement Cost Sharing Contributions Changes for Unrepresented Management Miscellaneous, Unrepresented Confidential Miscellaneous, and Unrepresented Management Safety Employees
RECOMMENDATION
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Adopt a Resolution directing the Chief Human Resources Officer to initiate a contract amendment to implement the retirement cost sharing contributions for Unrepresented Management Miscellaneous, Unrepresented Confidential Miscellaneous, and Unrepresented Management Safety employees, effective July 22, 2025, for Fiscal Year 2025-2026. (No Fiscal Impact)
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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. CalPERS recently notified the County that this Government Code amendment does not apply to unrepresented employees. To update retirement cost sharing rates, the following process needs to occur to amend the CalPERS contract.
1. Napa County submits to CalPERS cover letter, Resolution, and simple majority signatures.
2. CalPERS expedites documents needed for contract amendment.
3. Napa County HR submits requests to Napa County Clerk of the Board and County Counsel for Resolution of Intent and First Reading of Ordinance.
4. Napa County conducts simple majority employee vote.
5. Second Reading of Ordinance.
6. New cost sharing rates effective the beginning of the pay period following the employee vote.
This action allows the County to complete the first step in the process above.
A provision of the Napa Association of Public Employees (NAPE) Public Services Employee Supervisory Unit’s Memoranda of Understanding (MOU) dictates the formula for employees to cost share a portion of the contribution toward retirement each fiscal year. The unrepresented Management and Confidential compensation plans include language which entitles them to the same terms included in the NAPE Public Services Employee Supervisory MOU.
The members in the Unrepresented Management Miscellaneous, Unrepresented Confidential Miscellaneous, and Unrepresented Management Safety groups will participate in the following retirement cost sharing contributions effective the beginning of the pay period as noted in the process above:
• Unrepresented Management Miscellaneous and Unrepresented Confidential Miscellaneous employees in Retirement Tiers I and II with a 1.936% employee cost share. This is a rate reduction of 0.410% per the simple majority vote.
• Unrepresented Management Safety employees in Retirement Tiers II and III with a 1.936% employee cost share. This is a rate reduction of 0.410% per the simple majority vote.
Requested Action:
1. Adopt a Resolution directing the Chief Human Resources Officer to initiate a contract amendment to implement retirement cost sharing contributions changes for Unrepresented Management Miscellaneous, Unrepresented Confidential Miscellaneous, and Unrepresented Management Safety employees, effective July 22, 2025.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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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. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The terms of the current labor agreements coupled with the County policy require the County to share any cost increases in retirement contributions. |
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Is the general fund affected? |
No |
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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 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 County policies pertaining to unrepresented employee groups. |
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.