Title
Ordinance Authorizing Amendment to the Contract Between the City of Sacramento and the California Public Employees’ Retirement System [Passed for Publication 2/25/2025; Published 2/27/2025]
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FileID
File ID: 2025-00421
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt an Ordinance amending the contract between the City of Sacramento and the Board of Administration of the California Public Employees’ Retirement
System.
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Contact
Contact: Samantha Hardy, Human Resources Manager, (916) 808-7657, shardy@cityofsacramento.org, Department of Human Resources
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Presenter
Presenter: Samantha Hardy, Human Resources Manager, (916) 808-7657, shardy@cityofsacramento.org, Department of Human Resources
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Attachments
Attachments:
1-Description/Analysis
2-Ordinance
3-Exhibit A (CalPERS Amendment)
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Description/Analysis
IssueDetail
Issue Detail: On August 20, 2024, City Council approved a resolution to initiate the California Public Employees’ Retirement System (CalPERS) contract amendment process to include retirement cost sharing per the Personnel Resolution Covering Unrepresented Officers and Employees (Unrep Reso).
On February 25, 2025, City Council reviewed the ordinance to amend the contract between CalPERS and the City of Sacramento and approved a resolution of intention to continue the contract amendment process. As required by CalPERS, CalPERS classic members covered by the Unrep Reso have completed their vote for the contract amendment process to continue.
Per the Unrep Reso, unrepresented CalPERS classic members are paying the following percentage points of the employer’s retirement contribution to CalPERS:
• Fire Safety classic members pay twelve (12) percent
• Police Safety classic members pay three (3) percent
• Miscellaneous classic members pay one (1) percent.
In accordance with the Public Employees Retirement Law, the adoption of this ordinance is the final step to amend the City’s contract with CalPERS to add the retirement cost sharing language in the Unrep Reso into the City’s contract with CalPERS. This action does not increase or change the City’s retirement contributions, and it does not increase or change the amount the employees are currently paying. The current estimated annual value of the retirement cost sharing paid by unrepresented CalPERS classic members is $198,000.
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PolicyConsiderations
Policy Considerations: Adopting the ordinance finalizes the administrative process required to include the existing cost sharing specified in the Unrep Reso in the City’s contract with CalPERS.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by CEQA [CEQA guidelines Sections 15061(b)(3); 15378(b)(2)].
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Sustainability
Sustainability: There are no sustainability considerations applicable to this action.
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Commission/Committee Action
Commission/Committee Action: None.
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RationaleforRecommendation
Rationale for Recommendation: The ordinance is required to amend the City’s contract with CalPERS.
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FinancialConsiderations
Financial Considerations: The savings from retirement cost sharing are already included in
budgeted labor costs associated with the Unrep Reso, and this action does not increase the City’s retirement contribution to CalPERS.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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