DATE:
| 1/25/2022 | TO:
| HONORABLE MAYOR AND CITY COUNCIL | FROM:
| JACKIE ACOSTA, FINANCE DIRECTOR | SUBJECT:
| ADOPT A RESOLUTION APPROVING PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) TO CALPERS |
Staff recommends that the City Council adopt a resolution approving paying and reporting the value of Employer Paid Member Contributions (EPMC) to CalPERS.
STRATEGIC PLAN ALIGNMENT
This action is not an identified strategy in the Strategic Plan.
BACKGROUND
The City has historically paid and reported Employer Paid Member Contributions (EPMC) to CalPERS. Last year, CalPERS conducted audits of 60 agencies selected randomly throughout the state, including the City of Union City, to determine if these employers were correctly paying and reporting the value of EPMC. As a result of the audit, CalPERS determined that the City of Union City did not have the proper resolution on file with CalPERS regarding paying and reporting EPMC. The attached resolution will resolve this issue.
DISCUSSION
In 2016, CalPERS conducted an audit of how the City was paying and reporting EPMC. The audit found that the City’s original resolution from 1994 implementing the EPMC benefit did not reflect the current percentages of EPMC that the City was paying and reporting to CalPERS at that time. The audit also found that the Memoranda of Understanding with the various bargaining units in effect at that time did not adequately reflect EPMC and cost-sharing. As a result of the 2016 audit, the City adopted Resolution No. 5057-17 approving Side Letters with the various bargaining units to amend the EPMC and cost sharing language in the MOUs. The Side Letters and the Resolution were approved by CalPERS at that time. Therefore, the City believed that the actions taken in 2017 resolved all issues with CalPERS regarding the paying and reporting of EPMC. However, in 2021, CalPERS conducted audits of 60 agencies selected randomly throughout the state, including the City of Union City, to determine if these employers were correctly paying and reporting the value of EPMC. As a result of the 2021 audit, CalPERS determined that the City of Union City did not have the proper resolution on file with CalPERS regarding paying and reporting EPMC.
CalPERS states that this new resolution, if adopted by the City Council, will resolve all issues regarding the paying and reporting of EPMC and will put the City in compliance with CalPERS regulations regarding this subject. Therefore, staff recommends that the City Council adopt the attached resolution.
FISCAL IMPACT
There is no fiscal impact associated with adopting this resolution.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution approving paying and reporting the value of Employer Paid Member Contributions (EPMC) to CalPERS.
Prepared by:
Jackie Acosta, Finance Director
Submitted by:
Jackie Acosta, Finance Director
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