HomeMy WebLinkAbout12-67 - Amendment to Contract (CALPERS & City)RESOLUTION NO. 12-67
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WHEREAS, the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System
by the execution of a contract, and sets forth the procedure by which said
public agencies may elect to subject themselves and their employees to
amendments to said Law; and
WHEREAS, one of the steps in the procedures to amend this contract is the adoption by
the governing body of the public agency of a resolution giving notice of its
intention to approve an amendment to said contract, which resolution shall
contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20475 (Different Level of Benefits).
Section 21362 (2% @ 50 Full formula) and Section 20037
(Three -Year Final Compensation) without Sections 21624
and 21626 (Post -Retirement Survivor Allowance) without
Section 20516 (Employees Sharing the Cost of Additional
Benefits) applicable to local fire members entering
membership for the first time in the fire classification after
the effective date of this amendment to contract.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the
contract between said public agency and the Board of Administration of the
Public Employees' Retirement System, a copy of said amendment being
attached hereto, as an "Exhibit" and by this reference made a part hereof.
By:.'. ----- L
Presiding Officer
Title
October 16, 2012
Date adopted and approved
(Amendment)
CON -302 (Rev. 4/96)
ATTEST:
Brenda Green,
Interim City Clerk
APPROVED AS TO FORM:
Fall,
Thomas D e, City Attorney
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, Interim City Clerk of the City of Costa Mesa, DO HEREBY
CERTIFY that the above and foregoing is the original of Resolution No. 12-67 and was
duly passed and adopted by the City Council of the City of Costa Mesa at a regular
meeting held on the 16th day of October, 2012, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
BEVER, RIGHEIMER, LEECE, MENSINGER,
MONAHAN
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 17th day of October, 2012.
BRENDA GREE ,
INTERIM CITY CLERK
California
Public Employees' Retirement System
EXHIBIT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Costa Mesa
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective August
13, 1978, and witnessed August 7, 1978, and as amended effective July 15, 1979,
October 25, 1987, October 30, 1992, September 18, 1994, January 4, 1996, June 22,
1998, June 16, 2000, December 31, 2000, May 20, 2001, December 19, 2002,
September 28, 2008, August 20, 2009, June 6, 2010, February 27, 2011 and March 11,
2012 which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective March 11, 2012, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 55 for local miscellaneous members entering membership in
the miscellaneous classification on or prior to March 11, 2012 and age 60
for local miscellaneous members entering membership for the first time in
the miscellaneous classification after March 11, 2012; age 50 for local
police members and for those local fire members entering membership in
the fire classification on or prior to the effective date of this contract to
amendment and age 55 for local fire members entering membership for
the first time in the fire classification after the effective date of this contract
to amendment.
2. Public Agency shall participate in the Public Employees' Retirement
System from and after August 13, 1978 making its employees as
hereinafter provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except those, which by
express provisions thereof, apply only on the election of a contracting
agency.
Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CaIPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non-CaIPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CaIPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CaIPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
4. Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
5. In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
6. Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System on September 18, 1994 and applied against the
liability for prior service incurred thereunder. That portion of the assets so
transferred which represent the accumulated contributions (plus interest
thereof) required of the employees under said local system has been
credited to the individual membership account of each such employee
under the Public Employees' Retirement System.
7. Benefits paid to pensioner or annuitants under the local system on or prior
to September 18, 1994 shall be continued and paid at their existing rates
by the Public Employees' Retirement System as authorized by Section
20481 of the Government Code.
The percentage of final compensation to be provided for local
miscellaneous members in employment before and not on or after
September 28, 2008 for each year of credited prior service is 0% and the
percentage of final compensation to be provided for each year of credited
current service is 100% and determined in accordance with Section 21354
of said Retirement Law (2% at age 55 Full).
9. The percentage of final compensation to be provided for local
miscellaneous members in employment on or after September 28, 2008
and not entering membership for the first time in the miscellaneous
classification after March 11, 2012 for each year of credited prior service is
0% and the percentage of final compensation to be provided for each year
of credited current service is 100% and determined in accordance with
Section 21354.4 of said Retirement Law (2.5% at age 55 Full).
10. The percentage of final compensation to be provided for each year
of credited current service as a local miscellaneous member entering
membership for the first time in the miscellaneous classification after
March 11, 2012 shall be determined in accordance with Section 21353 of
said Retirement Law (2% at age 60 Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member and for those
local fire members entering membership in the fire classification on or
prior to the effective date of this amendment to contract shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a local fire member entering membership for
the first time in the fire classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21362 of said Retirement Law (2% at age 50 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20042 (One -Year Final Compensation) for local
miscellaneous members, local police members and for those local
fire members entering membership on or prior to the effective date
of this amendment to contract.
b. Section 20965 (Credit for Unused Sick Leave).
C. Sections 21624 and 21626 (Post -Retirement Survivor allowance) for
local miscellaneous members, local police members and for those
local fire members entering membership on or prior to the effective
date of this amendment to contract.
d. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members only.
e. Section 20903 (Two Years Additional Service Credit).
f. Section 20938 (Limit Prior Service to Members Employed on
Contract Date) for local safety members only.
g. Section 21536 (Local System Service Credit Included in Basic
Death Benefit) for local safety members only.
h. Section 21427 (Improved Nonindustrial Disability Allowance) for
local fire members only.
Section 21031 (Public Service Credit for Limited Prior Service) for
local miscellaneous members only.
Section 21024 (Military Service Credit as Public Service).
k. Section 21027 (Military Service Credit for Retired Persons).
Section 21023.5 (Public Service Credit for Peace Corps,
AmeriCorps VISTA, or AmeriCorps Service).
M. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21354.4 (2.5% @ 55 Full formula) for local miscellaneous
members entering membership on or prior to March 11, 2012. From
and after February 27, 2011 the miscellaneous employees of Public
Agency shall be assessed an additional 2.469% of their
compensation for a total contribution rate of 10.469% pursuant to
Government Code Section 20516.
Section 21362.2 (3% @ 50 Full formula) for local police members
and for those local fire members entering membership on or prior to
the effective date of this amendment to contract. From and after
February 27, 2011 the police employees and fire employees
entering membership on or prior to the effective date of this
amendment to contract of Public Agency shall be assessed an
additional 5% of their compensation for a total contribution rate of
14% pursuant to Government Code Section 20516.
Section 20475 (Different Level of Benefits). Section 21353 (2% @
60 Full formula) without Section 20516 (Employees Sharing Costs
of Additional Benefits) are applicable to local miscellaneous
members entering membership for the first time in the
miscellaneous classification after March 11, 2012.
Section 20475 (Different Level of Benefits). Section 21362 (2% @
50 Full formula) and Section 20037 (Three -Year Final
Compensation) without Sections 21624 and 21626 (Post -
Retirement Survivor Allowance) and without Section 20516
(Employees Sharing the Cost of Additional Benefits) applicable to
local fire members entering membership for the first time in the fire
classification after the effective date of this amendment to contract.
14. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer' for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by.the Board as provided in
Government Code Section 20834.
15. Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
16. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21573 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
C. A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
17. Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement Law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement Law.
18. Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
B. This amendment shall be effective on the day of
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF COSTA MESA
BY BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT CaIPERS ID #5937664258
PERS-CON-702A