AGENDA TITLE:
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Adopt a Resolution to Amend the Contract Between the City of Lodi and CalPERS to Reduce the Cost Share of the Confidential Mid-Management Group (IS - HR)
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MEETING DATE:
July 1, 2026
PREPARED BY:
James Peavey, Human Resources Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution to Amend the Contract Between the City of Lodi and CalPERS to Reduce the Cost Share of the Confidential Mid-Management group.
BACKGROUND INFORMATION:
Employee cost sharing provides the City of Lodi (City) an opportunity to save money and help offset pension costs. Specifically, as a California Public Employees’ Retirement System (CalPERS) contracting agency, employee cost sharing allows City employee groups to share a portion of the City’s costs.
On March 6, 2019, Council adopted Resolution No. 2019-35. Along with other matters, this resolution authorized the Confidential Mid-Management Group (“Group”) members to share a portion of the City’s CalPERS costs.
On February 18, 2026, Council adopted Resolution No. 2026-030. Along with other matters, this resolution authorized the reduction of Group members to share a portion of the City’s CalPERS costs to 0%, effective July 6, 2026.
CalPERS requires an amendment with its contract with the City to enact this change. As a preliminary step to the amendment revision process, CalPERS requires the City adopt a resolution that includes the signatures representing a majority of impacted employees indicating their support for the unrepresented employee CalPERS cost-sharing reduction. On June 16, 2026, via their signatures, a majority of impacted employees indicating their support for the unrepresented employee CalPERS cost-sharing reduction. As a result of the lengthy CalPERS amendment revision process, implementation of the contract amendment cannot occur as originally expected (July 6, 2026). As the updated cost-sharing rates will become effective only after the anticipated implementation date (October 12, 2026), the City will reimburse unrepresented employees for all cost-sharing deductions that should not have occurred due to the delayed implementation, therefore affected employees will not suffer monetary loss. Additionally, the City will not incur any additional cost, as it would be responsible for paying the full employer contribution in either scenario-whether remitted directly to CalPERS or provided to employees through reimbursement.
To comply with CalPERS’ contract amendment procedures, Council must take additional administrative steps at future Council meetings to finalize the contract amendment. Specifically, at its August 5, 2026 meeting, Council must adopt a resolution of intention to amend its contract with CalPERS, and at its September 2, 2026 meeting, Council must adopt a resolution to finalize its contract amendment with CalPERS. Per CalPERS rules, the earliest date the contract amendment can take affect is 30 days after the adoption of the resolution finalizing the contract amendment (October 2, 2026). The implementation of the updated cost sharing deduction will occur on the first day of the first full pay period after the effective date of the contract amendment (October 12, 2026).
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FISCAL IMPACT:
The reduction in the employee cost share was previously approved by the City Council. Due to the CalPERS contract amendment timeline, the City will reimburse affected employees for cost-sharing deductions withheld before implementation of the amendment. This reimbursement will not increase City costs, as these amounts would have otherwise been paid as employer pension contributions. Sufficient funding is available within the adopted budget.
FUNDING AVAILABLE:
Not applicable.