To: MAYOR AND CITY COUNCIL
From: DIANE STRICKFADEN, DIRECTOR OF HUMAN RESOURCES
TITLE
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APPROVE AN UPDATED PAY AND BENEFITS PLAN FOR THE MANAGEMENT AND CONFIDENTIAL EMPLOYEE GROUP TO ADDRESS CALPERS AUDIT FINDINGS REGARDING LANGUAGE AMENDMENTS NECESSARY TO COMPLY WITH CALPERS REPORTING GUIDELINES
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2109-089, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, UPDATING THE PAY AND BENEFITS PLAN FOR MANAGEMENT AND CONFIDENTIAL EMPLOYEES
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EXECUTIVE SUMMARY
In July 2015, the City Council approved an updated Pay and Benefits Plan for the City of Redondo Beach Management and Confidential Employees group. One of the provisions in the Pay Plan allowed a member to earn from 1% to 25% of base salary in the form of Management Incentive Pay (MIP), as determined by the City Manager. The purpose of this special compensation is to allow flexibility for the City Manager to recognize the unique nature of the Management and Confidential unit's diverse job classifications and contributions, and compensate them accordingly. The intent of this provision has always been to allow the Management Incentive Pay, if earned, to be reportable to CalPERS as special compensation, which in turn would apply towards the member's retirement.
Each time a member retires from service, the CalPERS audit department reviews all special compensation that has been reported for the retiring member. In July 2021, CalPERS audited the special compensation reported for the City's recently retired Finance Director, as part of this routine review process. CalPERS evaluated the language regarding Management Incentive Pay in the Pay and Benefits Plan, to ensure that it fully complied with California Code of Regulations Section 571. After two meetings with the CalPERS audit department, they determined that the language needed to be further refined in order to maintain compliance with their reporting requirements. CalPERS represent...
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