Adopt Resolution No. 2025-53 Authorizing an Amendment to the City’s Public Agency Retirement System (PARS) Defined Contribution Plan to include all full-time City Police employees.

The City of Canyon Lake participates in the California Public Employee Retirement system (CalPERS) which provides retirement benefits for non-public safety full-time employees and part-time employees working 1,000 hours or more. The City currently contributes 11.94% and 7.96% of the participant's annual salary for Classic and PEPRA CalPERS members into the CalPERS system. Part-time employees working less than 1000 hours per year contribute to a Nationwide 457 OBRA plan. The City of Canyon Lake does not participate in the Social Security System and per the City’s contract with CalPERS, City public safety employees are not eligible to participate in CalPERS, therefore the City is currently providing retirement benefits to fire personnel through the Public Agency Retirement System (PARS), a Defined Contribution Plan.

In 1990, Congress enacted the Omnibus Budget Reconciliation Act (OBRA 90) which mandates that all public employees who are not members of their employer’s existing retirement system be covered by Social Security or an alternate plan.

On September 1, 2021, City Council adopted Resolution No. 2021-39 authorizing the City Manager to enter into an agreement with the Public Agency Retirement Services (PARS) to provide a Defined Contribution Plan for all full-time eligible Fire Safety personnel.

Currently all full-time City Fire personnel are covered by the City’s PARS Defined Contribution Plan. This amendment would add coverage for the new City Police Department full-time personnel at the same rates and with the same tiers as the existing Fire contract with PARS. Those rates and tiers that were adopted by the City Council with Resolution No. 2023-40 on November 8, 2023, will be amended to cover all public safety personnel as follows:







 

Tier 1

Employee Classification	Hired on or After	Length of Employment	Employer Contribution Rate	Employee Contribution Rate
Fire Safety Management	12/1/2021	N/A	15%	0%
Police Safety Management	9/25/2025	N/A	15%	0%

 

Tier 2

Employee Classification	Hired on or After	Length of Employment	Employer Contribution Rate	Employee Contribution Rate
Fire Safety Non-Management	12/1/2021	1+ Years	12.5%	2.5%
Police Safety Non-Management	9/25/2025	1+ Years	12.5%	2.5%

 

Tier 3

Employee Classification	Hired on or After	Length of Employment	Employer Contribution Rate	Employee Contribution Rate
Fire Safety Non-Management	7/1/2023	<1 Year	7.5%	7.5%
Police Safety Non-Management	9/25/2025	<1 Year	7.5%	7.5%