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SR-602-003 (23) f:\person:misc/council\council66epmc Santa Monica, California Council Meeting: March 9, 2004 TO: Mayor and City Council FROM: City Staff SUBJECT: Resolution for Paying and Reporting the Value of Employer Paid Member Contributions to the California Public Employees? Retirement System INTRODUCTION This report requests that Council adopt the attached resolution to report the value of Employer Paid Member Contributions (EPMC) to the California Public Employees? Retirement System, as allowed by Government Code Section 20636(c)(4) pursuant to Section 20691. The attached resolution complies with the procedure required by CalPERS. DISCUSSION The City of Santa Monica contracts with CalPERS to provide retirement plans for permanent employees. Government Code Section 20636(c)(4), pursuant to Section 20691, allows the City of Santa Monica to report to CalPERS, as qualified compensation, the monetary value of normal employee contributions (7%) paid by the City on behalf of each employee [referred to as Employer Paid Member Contributions (EPMC)]. This provision would allow employees to have a higher level of compensation reported to CalPERS for retirement purposes. This provision has been negotiated with various bargaining units and has been implemented subsequent to Council approval. CalPERS requires that the attached resolution be adopted in order to implement this 1 benefit. The affected miscellaneous employees bargaining unit is the Public Attorneys? Legal Support Staff Union. In order to be in compliance with the negotiated agreement as soon as possible, the Resolution reflects an effective date of December 28, 2003. BUDGET AND FINANCIAL IMPACT There is no fiscal impact from adoption of this resolution. By memorandum of understanding, employees bear the cost of this benefit. RECOMMENDATION City Staff recommends that the City Council adopt the attached resolution. Prepared By: Karen Bancroft, Director of Human Resources Attachments: Resolution 2