HomeMy WebLinkAboutReso - CC - 101-2019RESOLUTION NO.101-2D19
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING
THE MAYOR TO SEND A LETTER OF OPPOSITION REGARDING SENATE BILL 266,
PUBLIC EMPLOYEES' RETIREMENT SYSTEM: DISALLOWED COMPENSATION:
BENEFIT PAYMENTS
WHEREAS, the Public Employees Retirement Law (PERL) and the Public Employees'
Pension Reform Act of 2013 (PEPRA) govern what an individual is entitled to receive as pension
benefits in retirement, and the California Code of Regulations (CCR) sections 570 and 571 clearly
define exactly what is eligible to be included in the pension benefit calculation; and
WHEREAS, an employee receives a pension benefit that is a factor of how long they have
worked in a CalPERS agency, the pension formula, and their final compensation; and
WHEREAS, CalPERS, as the administrator of the City's pension plan, interprets the PERL,
PEPRA, and CCR when calculating the pension benefit for an individual, and their determination
is final; and
WHEREAS, Senate Bill (SB) 266 absolves CalPERS from all liability for ensuring retirement
benefits are calculated and administered correctly; and
WHEREAS, SB 266 requires public agencies to directly pay retirees and/or their
beneficiaries disallowed retirement benefits using General Fund dollars; and
WHEREAS, SB 266 creates a double payment for the City, for past and future contributions,
past contributions made by the City are intended to cover existing liabilities; and
WHEREAS, SB 266 means CalPERS has no incentive to properly calculate benefit
payments for retirees, as the City is responsible for any errors CalPERS makes in the calculation;
and
WHEREAS, SB 266 creates compliance and implementation issues and GASB 68
reporting requirements, requiring the City to hire costly outside actuarial and legal experts to
ensure that they follow federal reporting laws; and
WHEREAS, SB 266 is a de facto and retroactive benefit enhancement bill that would further
strain the City's budget at a time where retirement obligations are making it financially difficult to
provide critical services for the public; and
WHEREAS, SB 266 would require the City to track and maintain current records of all
retirees and their beneficiaries in order to deliver the direct payment, presenting a costly logistical
challenge; and
WHEREAS, SB 266 requires cities to provide a gift of public funds and therefore violates
the California Constitution; and
WHEREAS, the League of California Cities suggested a series of amendments to try and
make the measure lawful and workable that were rejected.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BURLINGAME
RESOLVES THAT:
The City of Burlingame opposes SB 266 and authorizes the Mayor to send a letter of opposition
to the appropriate Legislators and the League of California Cities.
ayor Donna Colson
I, Meaghan Hassel -Shearer, City Clerk of the City of Burlingame, certify that the foregoing
Resolution was adopted at a regular meeting of the City Council held on the 3rd day of September,
by the following vote:
AYES: COUNCILMEMBERS: BEACH, BROWNRIGG, COLSON, KEIGHRAN, ORTIZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
City