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Mayor & Councilmember Payment of 2 July 5, 2011 <br />Retirement Plan Employee Contribution <br />Payment of Employee Contribution amount by Mayor and Councilmembers <br />Councilmembers may elect to participate in the City's CaIPERS retirement program. Currently <br />two Councilmembers have opted not to participate in Ca1PERS. The City pays both the <br />Employer and Employee contributions for participating members. At the request of the Mayor, <br />staff has reviewed the possibility of Councilmembers paying the Employee contribution. <br />Ca1PERS 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 Resolution. <br />Ca1PERS will take approximately 30 -120 days to process and effectuate the plan change. We do <br />not have to make this change for all bargaining groups; instead, we can segregate the elected <br />officials group. This must apply to all elected officials since CaIPERS will not make this change <br />for individuals. The plan change would require that all of the Councilmembers and the Mayor <br />that have opted into the retirement plan would be required to pay their full employee <br />contribution. Any future Councilmember/Mayor would be subject to this change as well, until <br />otherwise changed by City Council action. <br />City Council Committee Review and Action <br />In response to the Mayor's request, the City Council Finance Committee reviewed this issue at its <br />June 3, 2011 meeting. The Committee voted (2 ayes, 1 nay) in favor of forwarding the matter to the <br />full City Council for discussion and possible action. <br />Fiscal Impact <br />The City will realize budget savings to the General Fund in FY 2011 -12 in the amount of about <br />$7,120 if the full Employee Contribution is paid by the Mayor and all participating <br />Councilmembers. <br />CONCLUSION <br />City Council may consider approving a resolution that authorizes all City Councilmembers and the <br />Mayor to fully pay their Employee Contribution amount of 7% or 8% of salary for the City's <br />CaIPERS retirement plan. <br />CADocuments and Settings \sperez \Local Settings \Temporary Intemet Files \Content.Outlook \T5DVFB4M \Council EPMC staff report.docx <br />