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�1 6 To: Bruce C. Spragg. City Manager From: D. E. Bott, Director of Personne: Subject: P.E.R.S. CONTRACT AMENDMENTS AGENDA ITEM DateJanuary 28._ 974 During last year's Meet and Confer11 sessions, the City of Santa Ana reached agree- ment with employee organization representatives to amend certain provisions of our Public Employees' Retirement System contract. Specifically, these amendments will provide a 2% at SO formula for public safety members and a one-half continuance or widow's benefit for both miscellaneous and safety members. Attached is a reply from P.E.R.S. outlining the procedure required in order to enact such changes. Initially, a resolution of intention must be acted upon by the City Council. A secret ballot election must be conducted for public safety members in order to allow for their expression of approval or disapproval. This is due to their individual contribution rates being affected by such amendments whereas the individual contribution rates for miscellaneous employees will remain unchanged. In my opinion, it would be more appropriate for such an election to be conducted by the Clerk of the Council as apparently suggested by the attached certification of employee election form. The reply from P.E.R.S. also describes an option available to the City which provides certain protections for public safety members age 60.and over with less than 20 years of service credit. We have no employees in this situation and, therefore, this section would not be applicable. RECOMMENDATION It is recommended that the Resolution of Intention be placed on the agenda for Council consideration at their meeting of February 4. Our agreement with the employee associations calls for these retirement system benefits to be put into effect by June 1, 1974, and it is highly desirable that we commence the process at this time in order to assure our ability to meet this commitment. NOTE: A copy of the P.E.R.S. Actuarial Report is attached. I have attached a supplemental sheet which reflects both the present and proposed agency contribution rates for comparative purposes. An additional report pre- pared by the Finance Director indicates the cost impact for the 1974-75 fiscal year. Attachments cc: Director of Finance Clerk of the Council O,Y !"f 'lea,.) j LO j , t_" '�o.L017C-r 4.