02-04-2014 - Amendment to City Council Authorized Benefits to Remove California Public Employees' Retirement (CalPERS) Benefits for Future City Council MembersC7
TO: Mayor and City Council
FROM: Christopher J. Chung
City Manager
BY: Nita McKay
Director of Finance & Administrative Services
City of West Covina
Memorandum
AGENDA
ITEM NO. 8
DATE February 4, 2014
SUBJECT: AMENDMENT TO THE CITY COUNCIL AUTHORIZED BENEFITS TO
REMOVE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT (CaIPERS)
BENEFITS FOR FUTURE CITY COUNCIL MEMBERS
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF WEST COVINA, CALIFORNIA, AMENDING CITY COUNCIL
AUTHORIZED BENEFITS TO REMOVE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT (CaIPERS) BENEFITS FOR FUTURE CITY COUNCIL
MEMBERS
DISCUSSION:
At the City Council meeting on January 21, 2014, City Council discussed options related to City
Council Members' benefits, specifically the elimination of Council Members' participation in the
California Public Employees Retirement System (Ca1PERS).
Government Code Section 36516(d) states that the amounts that the City pays towards a Council
Member's retirement, health, federal, and social security benefits are not subject to the same salary
limits in the Government Code, as long as those benefits are the same as those provided by the City
to City employees. Therefore, there is no Government code that prohibits City Council from
eliminating any benefit from the approved benefits for Council Members, including their
participation in Ca1PERS retirement benefits.
CaIPERS rules concerning memberships of elective officers states, "The election of optional
membership may be Fled at any time while a compensated elective officer holds the office and the
office is not otherwise excluded by law or excluded by an agency's contract. Once elected, the
membership remains in effect for all future service in an elective officer position with the same
employer unless there is a significant break in employment." Existing Council Members, with
CaIPERS benefits, will continue receiving retirement benefits. This election to be a member of
CaIPERS cannot be rescinded once a Council Member has chosen to be a member of CaIPERS.
Individual Council Members may decline membership in CaIPERS and not receive retirement
benefits at the time they assume office. Approval of the attached resolution would eliminate
Ca1PERS as a benefit for all elected officials elected for the first time after January 1, 2014.
FISCAL IMPACT:
If the attached resolution is adopted, the annual cost savings, utilizing the current 14.734% employer
share, would be $6,720 assuming all five Council Members received the Ca1PERS benefit.
Prepared by:
N • to McKay
Director of Finance tive Services
RESOLUTION NO. 2014 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AMENDING CITY COUNCIL AUTHORIZED
BENEFITS TO REMOVE CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT (CalPERS) BENEFITS FOR FUTURE CITY COUNCIL
MEMBERS
WHEREAS, the City of West Covina has evaluated benefits provided to City Council
Members; and
WHEREAS, the City desires to amend the current authorized benefits provided to City
Council Members; and
WHEREAS, this shall apply to all elected officials elected for the first time after January 1,
2014.
NOW, THEREFORE, the City Council of the City of West Covina does resolve, determine
and order as follows:
SECTION 1. The City Council hereby resolves that membership in CalPERS is no longer
an authorized benefit for City Council Members.
The City Clerk shall certify to the adoption of this Resolution.
APPROVED AND ADOPTED on this 4°i day of February, 2014.
Mayor Steve Herfert
ATTEST:
City Clerk Nickolas S. Lewis
I, NICKOLAS S. LEWIS, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting held thereof on the 4°i day of February, 2014 by the following vote
of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk Nickolas S. Lewis
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman