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CaIPERS Employer Paid Member Contribution (EPMC) Options for Mayor and <br />Council Members <br />Council Members may elect to participate in the City's CalPERS retirement program. <br />Currently two Council Members have opted not to participate in CalPERS. The City <br />pays both the Employer and Employee contributions for participating members. The <br />Mayor has asked staff to investigate the possibility of Council Members paying the <br />Employee contribution. <br />Paying the Employee Contribution would be a pre -tax payment of about: <br />$2,432 for the Mayor, based on a 7% contribution level* <br />• $1,200 for Council Members at the 8% contribution level <br />• $1,060 for Council Members at the 7% contribution level* <br />* 2nd tier PERS effective for new employees beginning January 2010 have 2% @ 55 plan with <br />lower EPMC of 7% <br />CalPERS confirmed that in order to officially establish a Councilmember as paying their <br />employee contribution, the City would need to adopt this change via a Council <br />Resolution. This will take CalPERS approximately 30 -120 days to process and become <br />effective. We do not have to do this for all bargaining groups; instead we can segregate <br />the elected officials group. This means that all of the council members that have opted <br />into PERS would be required to pay their employee contribution. We cannot enact this <br />for only one individual. <br />Options: <br />• Enact a Council Resolution and submit to CalPERS to identify the elected <br />officials group as paying their 8% & 7% employee contributions. <br />• A Council Member may opt out of CalPERS entirely. <br />• A Council Member may remit an amount equal to the City -paid employee <br />contribution back to the City on a post -tax basis. <br />2 <br />