Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Lee Pullen, Director, Aging and Disability Services
Subject: Amendment to the Agreement Providing for the Public Authority’s Participation in the California Public Employees’ Retirement System
RECOMMENDATION:
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Acting as the Governing Board of the San Mateo County In-Home Supportive Services (IHSS) Public Authority, adopt a resolution approving an amendment to the agreement providing for the Public Authority’s participation in the California Public Employees’ Retirement System (CalPERS).
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BACKGROUND:
California Welfare and Institutions Code (WIC) section 12301.6 authorizes county boards of supervisors to provide for the delivery of IHSS either by contracting with a nonprofit consortium or by establishing a Public Authority (PA). On September 21, 1993, the Board of Supervisors adopted Ordinance No. 03508, which created a PA for the delivery of IHSS. Pursuant to WIC section 12301.6, the PA is a public entity separate from the County. There are currently 19 full-time PA employees in San Mateo County.
Social Security coverage is available to state and local government employees through a voluntary but irrevocable federal-state agreement authorized by Section 218 of the Social Security Act. Employees covered under a Section 218 agreement have the same coverage and benefit rights as employees mandatorily covered for Social Security and Medicare. The County of San Mateo completed an application and agreement with the State of California pursuant to Section 218, and the State signed the agreement in 1957, but PA employees were not included.
In June 2021, this Board approved a resolution, authorizing the PA to include its positions in the State of California’s Section 218 Social Security agreement, providing for the coverage of the PA’s employees under the old age, survivors, disability, and health insurance system established by the Federal Social Security Act. The agreement covers positions, not individuals. If the position is covered for Social Security and Medicare under a Section 218 agreement, then any employee filling that position is subject to Social Security and Medicare taxes and is entitled to corresponding benefits for such withholdings.
In January 2026, this Board approved a resolution, which provided notice of intent to approve an amendment to the agreement providing for the PA’s participation in CalPERS. CalPERS stipulates that the effective date of this amendment may be as early as the day following the adoption of the final resolution. Therefore, the effective date would be August 26, 2026, should this Board approve the resolution.
DISCUSSION:
CalPERS is the official Social Security Administrator for the State of California’s Section 218 agreement, as well as the PA’s pension administrator. The 2021 agreement with CalPERS ensured that PA employees continued to participate in the Social Security program and that the withholdings and payment of benefits were in compliance with federal and state requirements.
This amendment to the agreement with CalPERS is mandatory. The amendment changes the terms of the agreement to provide a 2% @ 60 Supplemental formula instead of the 2% @ 60 Full formula and a 2% @ 62 Supplemental formula instead of a 2% @ 62 Full formula for local miscellaneous members (i.e., those employed by a public agency that has contracted with CalPERS but who are not involved in law enforcement, fire suppression, the protection of public safety, etc.). Upon the effective date of the amendment, employees will be covered under the Supplemental formula. Both classic and new CalPERS members will not have the $133.33 Social Security offset deducted from their monthly final compensation calculation. As a result, their retirement benefit calculation under the supplemental formula is maximized.
CalPERS provided the Resolution Authorizing an Amendment, the Certification of Final Action of Governing Body, and the Amendment to Contract, and does not permit edits or modifications to the text. California Government Code section 7507 requires that, with regard to local legislative bodies, the future costs of changes in retirement benefits or other postemployment benefits shall be made public at a public meeting at least two weeks prior to the adoption of any changes in public retirement plan benefits or other postemployment benefits. The Certification of Final Action also stipulates that the Amendment must be adopted not on the consent calendar.
The Resolution, Certification, and Amendment have been reviewed and approved by the County Attorney as to form.
It is anticipated that 100% of PA positions will be covered by this amendment.
PERFORMANCE MEASURE:
|
Measure |
FY 2026-27 Estimated |
FY 2027-28 Projected |
|
Percentage of PA positions covered by the amendment to the agreement with CalPERS |
100% 19 positions |
100% 19 positions |
COMMUNITY IMPACT:
This amendment ensures that PA employees will continue to be eligible for the same coverage and benefits as employees mandatorily covered for Social Security and Medicare. This amendment to the agreement with CalPERS ensures that equitable services to all PA classifications will continue uninterrupted.
FISCAL IMPACT:
This amendment is intended to provide additional benefits to local miscellaneous members of CalPERS. There is no net County cost.