HomeMy WebLinkAbout07 - PERS for Seasonal Lifeguard & Part-Time EmployeesCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
August 12, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Sharon Wood, Assistant City Manager
644 -3222, swood @city.newport- beach.ca.us
SUBJECT: Policy Regarding City Payment of PERS Member Contributions for
Seasonal Lifeguard and Part-Time Employees
RECOMMENDATION:
Adopt a Resolution of the City Council of the City of Newport Beach Setting Labor
Policy Regarding the Employer Paid Member Contribution to the Public Employees
Retirement System (PERS) for Seasonal Lifeguard and Part -Time Employees.
DISCUSSION:
California Government Code provides that a contracting agency with PERS may choose
to pay all or a portion of its employees' member contributions to PERS, and to report
that payment to PERS as "compensation earnable," or compensation that is included in
calculating the member's retirement benefit. Newport Beach's longstanding practice
has been to pay the 7% member contribution on behalf of its full -time employees, and
the City Council adopted resolutions establishing this policy in 1994. When the State
required that part -time employees who work more than 1,000 hours per year be enrolled
in PERS, the City followed the same policy as for full -time employees, and paid the 7%
member contribution. In a recent audit by PERS, it was discovered that the City has not
formally established this labor policy for seasonal lifeguard and part -time employees.
The attached Resolution corrects this audit finding and continues the City's past labor
practice.
Submitted by:
Sharon Wood
Assistant City Manager
Attachment: Resolution
RESOLUTION NO. 2003-
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NEWPORT BEACH SETTING LABOR POLICY
REGARDING THE EMPLOYER PAID MEMBER CONTRIBUTION
TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS)
FOR SEASONAL LIFEGUARD AND PART -TIME EMPLOYEES
WHEREAS, Government Code Sections 20636(c)(4) and 20691 provide
that a contracting agency with the California Public Employees Retirement
System (PERS) may pay all or a portion of its employees' normal contributions to
PERS, and to report such paymentto PERS as compensation earnable, if the
agency has a labor policy or agreement which specifically provides for such
payment and reporting; and
WHEREAS, the City Council of the City of Newport Beach has adopted
resolutions to establish this policy for its full -time employees; and
WHEREAS, the City of Newport Beach has followed this policy for its
seasonal lifeguard and part -time employees who are members of PERS;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach %that it is the labor policy of the City of Newport Beach to pay 7%
of the normal member contributions as employer paid member contributions
(EPMC) and report same to PERS as compensation earnable. This policy shall
apply to all seasonal lifeguard and part -time employees who are members of
PERS.
ADOPTED this day of AUGUST 2003.
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ATTEST:
CITY CLERK