To: Honorable Mayor and Members of City Council
From: Heather Ruiz, Human Resources Director
Prepared By: Ashley Titus, Management Analyst II
TITLE:
Title
CalPERS Health Benefits for Police Chiefs subject to the Public Employees’ Medical and Hospital Care Act (PEMHCA)
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution electing to be subject to the Public Employees’ Medical and Hospital Care Act at an equal amount for employees and annuitants with respect to a recognized employee organization 003 Police Chief.
Body
DISCUSSION:
The agreement between the City and the Police Chief for Compensation and Terms of Employment was approved by Council on March 18, 2025, and allows both current and retired Police Chiefs the option to choose CalPERS health plans.
In order to provide CalPERS Health benefits, the City must adopt a Resolution electing to be subject Public Employees’ Medical and Hospital Care Act (PEMHCA). PEMHCA establishes a minimum required contribution for employees, which is adjusted annually by the Consumer Price Index; in 2025 the minimum contribution is $158 per employee per month. The PEMHCA minimum amount changes each year. Historically, the increase has been modest but consistent, typically ranging from 2% to 6% per year, depending on healthcare inflation trends. Each year, CalPERS publishes the updated PEMHCA minimum in their circular letters in September or October each year for the following calendar year.
This resolution does not change the City’s total health contributions, as they are already set in the current agreement. The City’s employer contribution will not change unless future CalPERS minimums exceed what’s agreed upon in the contract. The resolution will allow the Police Chiefs group to join medical benefits through California Public Employees Retirement System (CalPERS), subject to Public Employees’ Medical and Hospital Care Act (PEMHCA).
If approved, current and retired members of the Police Chiefs can enroll in CalPERS health plans starting May 1, 2025.
FINANCIAL IMPACTS:
Even though the CalPERS Kaiser Health premiums are slightly higher than the City’s contracted Kaiser rates, implementing CalPERS Health for the Police Chief position will have no cost for the City because the employer contribution amount remains the same, as it is tied to the City contracted Kaiser rates.
However, there is a potential future cost increase for retirees in joining CalPERS Health. CalPERS requires that the City pay the PEMHCA minimum for all vested retirees regardless of City years of service. For 2025, the amount is $158 per month per member.
CEQA:
The Human Resources Director has determined that the Recommended Action described in this Agenda Report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060 (c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
NOTIFICATION:
Police Chiefs