TO: Board of Supervisors
FROM: Christine Briceno, Director of Human Resources
REPORT BY: Joy Cadiz, Staff Services Manager
SUBJECT: Resolution to Establish Retirement Cost Sharing Contributions for Napa County Employees
RECOMMENDATION
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Adopt a Resolution to approve the retirement cost sharing contributions for Napa County employees effective June 22, 2024, for Fiscal Year 2024-2025.
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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.
A provision of the Public Services Employee (PSE) Unit, PSE Supervisory Unit, Deputy Sheriffs’ Association (DSA) Unit, DSA Supervisory Unit and Napa County Probation Professionals Association (NCPPA) Unit, and the NCPPA Supervisory Unit Memoranda of Understanding dictate 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 MOUs of the represented groups.
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 PSE, DSA, and NCPPA Memoranda of Understanding dictate the formula for employees to cost share a portion of the contribution toward retirement each fiscal year. In order for the County to report the cost sharing contributions to CalPERS, signed side letters must be provided to CalPERS for the represented employee groups, as well as a Board approved resolution for the unrepresented employee groups. Today’s action will approve the retirement cost sharing contributions for Napa County employees for Fiscal Year 2024-2025.
The miscellaneous members in the PSE Units through their Memoranda of Understanding, and unrepresented Management and Confidential groups, will participate in the following retirement cost sharing contributions effective June 22, 2024:
• PSE and PSE Supervisory employees in Retirement Tiers I and II (hired before October 29, 2011) with a 2.346% employee cost share
• Management and Confidential employees in Retirement Tiers I and II (hired before October 29, 2011) with a 2.346% cost share
The local safety members in the DSA Units through their Memoranda of Understanding will participate in the following retirement cost sharing contributions effective June 22, 2024:
• DSA and DSA Supervisory employees in Retirement Tier II (hired before May 14, 2011) with a 4.837% cost share
• DSA and DSA Supervisory employees in Retirement Tier III (hired on or after May 14, 2011, and before January 1, 2013) with a 4.837% cost share
The unrepresented Safety Management Units will participate in the following retirement cost sharing contributions effective June 25, 2022:
• Safety Management employees in Retirement Tier II (hired before May 14, 2011) with a 2.346% cost share
• Safety Management employees in Retirement Tier III (hired on or after May 14, 2011, and before January 1, 2013) with a 2.346% cost share
The members in the NCPPA Units through their Memoranda of Understanding will participate in the following retirement cost sharing contributions effective June 22, 2024:
• NCPPA Non-Supervisory and NCPPA Supervisory employees in Retirement Tier I and II (hired before October 29, 2011) with a 2.346% cost share
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 2024-2025 include the appropriate 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 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 appropriate retirement costs for each employee is included in the departmental budget for Fiscal Year 2024-2025. 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 be in compliance 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.