CONTRACT 5759A - PERM Amendment CLOSEDAgreement No. 5759A
SIDE LETTER AGREEMENT BETWEEN THE CITY OF EL SEGUNDO AND THE EL
SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES ASSOCIATION
This Side letter of Agreement ("Agreement") between the City of El Segundo ("City") and
the El Segundo Supervisory and Professional Employees Association ("SPEA")
(hereinafter referred to as the "Parties") is entered into with respect to the following:
WHEREAS, the Parties are currently parties to a Memorandum of Understanding
("MOU") with a term of October 1, 2018 through September 30, 2022; and
WHEREAS, the MOU provides that "effective on the first day of the first full pay -
period in September 2021, miscellaneous employees defined as "classic" members by
the California Pension Reform Act of2013'(AB340) agree to pay an additional one percent
(1 %) for a total required employee contribution of eight percent (8%) (pre-tax) of
compensation" (2018-2022 SPEA MOU, Art. IV, Sec. 1, Subd. (e); Para. i.);
WHEREAS, the City did not start the withholding in September 2021 or withhold
the agreed upon amount from "classic" members during the term of the MOU; and
WHEREAS, the Parties are interested in starting the withholding while they
negotiate a successor MOU.
WHEREAS, the following sets forth the Parties' Agreement:
Within two (2) weeks of the City Council adopting the resolution approving this side
letter, the City will send an executed copy of this side- letter to the California Public
Employmees' Retirement System ("CaIPERS") requesting an amendment to the City's
contract with CaIPERS in order for the contract to reflect that the additional one percent
(1 %) that the City is providing to CaIPERS is a contribution by members, not the City;
As soon as is practicable following the City's receipt of "Resolution of Intention
Packet" from CaIPERS, SPEA will conduct an election of the "classic" members in the
bargaining unit. As soon as is practicable following the completion of the election, the City
will submit to the City Council a resolution authorizing the contract amendment. As soon
as is practicable following the City Council's vote on the resolution, the City will submit to
CaIPERS the forms necessary for CaIPERS to review and approve the proposed contract
amendment;
In the first full pay period following the City's submission to CaIPERS of the forms
necessary for CaIPERS to review and approve the proposed contract amendment, the
City will deduct from each "classic" member's compensation earnable an additional one
percent (1%). Until such time as CaIPERS approves the contract amendment, this
additional one percent (1 %) will constitute an employer contribution;
10362972.2 ELM-137.1/31/23
Agreement No. 5759A
When CaIPERS approves the contract amendment, the City will notify SPEA and
will change how the City reports the contributions to CaIPERS such that SPEA members
receive credit for the additional one percent (1 %) as a member contribution; and
The following language shall replace the language provided at Article IV Section
1 Subdivision (e) Paragraph L of the 2018-2022 MOU between the City and SPEA, and
shall be incorporated into the successor MOU between the City and SPEA:
Effective the first pay period following the City's submission
to CaIPERS of the forms necessary in order for CaIPERS to
review and approve a proposed amendment to the City's
contract with CaIPERS, and pursuant to Government Code
section 20516, subdivision (f), employees who are
considered to be "classic members" (/.e., all employees that
do not qualify as "new" members under the Public
Employees' Pension Reform Act of 2013 ("PEPRA")) shall
contribute an additional one percent (1%) of their
compensation earnable toward the employer's required
contribution to the California Public Employees' Retirement
System ("CaIPERS") for retirement benefits.
The one percent (1%) contribution by "classic members"
shall be made via payroll deductions and shall be
administered by the City.
As a result of the additional contribution, the total withholding
for employees who qualify as "classic members" shall
increase from the current seven percent (7%) statutory
member contribution to eight percent (8%), which shall
include the one percent (1%) cost -sharing amount.
The City shall continue such withholding pursuant to
Government Code section 20516, subdivision (f), until such
time as the City amends its contract with CaIPERS, at which
time the employee contribution rate shall be governed by the
terms of that contract,
10362972.2 EL140-137 -1131/23
Agreement No. 5759A
FOR THE CITY OF EL SEGUNDO
Darrell George, City Manager
Date
--1 1- C 2 6 3
Rebecca Redyk,
Director of Human Resources
Date
exander Volbepkffig, Date
Labor Negotiato
FOR THE EL SEGUNDO SUPERVISORY AND PROFESSIONAL EMPLOYEES
ASS I TION
LaToUya Fair, President Date
Mari"erritu, `Treasurer
Anhonyt�s arza, Vice President #2
R D96aao, Vice President #1
Eva Gettler, ecr to
Vicky B rker
Labor Negotiator
10362972.2 E1.140-137-1/31/23
Date
Date
Date
211� d;?1
Date
02/09/2023
Date