9 responses to findings and recommendations
R1
The Cities should adopt pension plans to extend the retirement age beyond current retirement plan ages. <u>City Response</u>: This recommendation was implemented effective January 1, 2013, with the implementation of the California Public Employees' Pension Reform Act (PEPRA). Prior to the adoption of PEPRA, the City of Mountain View was proactive in working with employee groups to increase employee contributions to their retirement benefit as a way of reducing the impact of pension costs on City...
Response: Implemented
Score: 0
The Cities should adopt pension plans to extend the retirement age beyond current retirement plan ages. <u>City Response</u>: This recommendation was implemented effective January 1, 2013, with the implementation of the California Public Employees' Pension Reform Act (PEPRA). Prior to the adoption of PEPRA, the City of Mountain View was proactive in working with employee groups to increase employee contributions to their retirement benefit as a way of reducing the impact of pension costs on City finances. This strategy was pursued in place of adopting a second tier of benefits which could incl...
R2A
Santa Clara County and the Cities of Cupertino, Los Altos, Monte Sereno, Morgan Hill, Mountain View, San Jose, Santa Clara, Saratoga and Sunnyvale should work to implement second tier plans. <u>City Response</u>: This recommendation was implemented effective January 1, 2013, with the City of Mountain View's implementation of PEPRA. Additionally, as noted above, the City of Mountain View has negotiated significantly higher than typical employee pension contributions as an effective method for add...
Response: Implemented
Score: 0
Santa Clara County and the Cities of Cupertino, Los Altos, Monte Sereno, Morgan Hill, Mountain View, San Jose, Santa Clara, Saratoga and Sunnyvale should work to implement second tier plans. <u>City Response</u>: This recommendation was implemented effective January 1, 2013, with the City of Mountain View's implementation of PEPRA. Additionally, as noted above, the City of Mountain View has negotiated significantly higher than typical employee pension contributions as an effective method for addressing pension liabilities. Recommendation 2B - Does Not Apply to the City of Mountain View
Recomm...
R2B
– Does Not Apply to the City of Mountain View
Response: Implemented
Score: 0
This recommendation was implemented effective January 1, 2013. As noted in the response to Recommendations 1 and 2A, the City of Mountain View has LS/7/MGR 1 of 3
negotiated significantly higher than typical employee pension contributions in order to address pension liabilities. Furthermore, when funding has been available, the City has made additional contributions toward the pension liability, totaling $9.04 million since 2014-15. The City also believes additional reform is required at the Statewide level.
R2C
All Cities' new tier of plans should close the unfunded liability burden they have pushed to future generations. The new tier should include raising the retirement age, increasing employee contributions, and adopting pension plan caps to ensure pensions do not exceed salary at retirement.
Response: Implemented
Score: 0
This recommendation was implemented effective January 1, 2013. As noted in the response to Recommendations 1 and 2A, the City of Mountain View has LS/7/MGR 1 of 3
negotiated significantly higher than typical employee pension contributions in order to address pension liabilities. Furthermore, when funding has been available, the City has made additional contributions toward the pension liability, totaling $9.04 million since 2014-15. The City also believes additional reform is required at the Statewide level.
R3
The Cities should adopt policies that do not permit Benefit enhancements unless sufficient monies are deposited, such as in an irrevocable trust, concurrent with enacting the enhancement, to prevent an increase in unfunded liability.
Response: Unknown
Score: 0
The City of Mountain View supports this recommendation. The City does not anticipate any pension benefit enhancements for the foreseeable future.
R4A
The Cities should require all employees to pay the maximum employee contribution rate of a given plan. <u>City Response</u>: The City of Mountain View has implemented this recommendation. City employees pay both the maximum employee contribution rate as well as a portion of the employer contribution rate for pension benefits.
Response: Unknown
Score: 0
The City of Mountain View has implemented this recommendation. As noted previously, the City of Mountain View has adopted a different strategy for addressing costs associated with pension benefits, having negotiated with employee groups to pay part of the employer contribution for pension benefits. The employer contribution is based on both the normal cost of benefits and the Past Service Cost. LS/7/MGR 2 of 3
R4B
The Cities should require employees to pay some portion of the Past Service Cost associated with the unfunded liability, in proportion to the Benefits being offered.
Response: Unknown
Score: 0
The City of Mountain View has implemented this recommendation. As noted previously, the City of Mountain View has adopted a different strategy for addressing costs associated with pension benefits, having negotiated with employee groups to pay part of the employer contribution for pension benefits. The employer contribution is based on both the normal cost of benefits and the Past Service Cost. LS/7/MGR 2 of 3
R6
– Does Not Apply to the City of Mountain View
Response: Unknown
Score: 0
The City of Mountain View has implemented this recommendation for OPEB, instituting a defined contribution plan option for retirees' health benefits for nonsafety employees. As noted above, the City of Mountain View has focused on working with bargaining groups to increase employee contributions toward pension benefits in order to manage the City's costs associated with these benefits. Additionally, the City of Mountain View, as a member of the California Public Employees Retirement System (CalPERS), can only offer benefits as allowed under CalPERS law. LS/7/MGR 3 of 3
R7
The Cities should transition from defined benefit plans to defined contribution plans as the new tier plans are implemented.
Response: Unknown
Score: 0
The City of Mountain View has implemented this recommendation for OPEB, instituting a defined contribution plan option for retirees' health benefits for nonsafety employees. As noted above, the City of Mountain View has focused on working with bargaining groups to increase employee contributions toward pension benefits in order to manage the City's costs associated with these benefits. Additionally, the City of Mountain View, as a member of the California Public Employees Retirement System (CalPERS), can only offer benefits as allowed under CalPERS law. LS/7/MGR 3 of 3