Amendment-84-97a - Laserfiche WebLink

Home Browse Search

REQUEST FOR COUNCIL ACTION CITY COUNCIL AGENDA DATE September 17, 1984 TITLE PROPOSED AMENDMENT TO THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) �l CITY r DATE OF •ACTION I u L. aoaa — _ .` CLERK OF THE COI CIL RECOMMENDED ACTION 1. Adopt the attached Resolution declaring Council's intention to approve an amendment to the City's contract with the Public Employees' Retirement System (PERS) to provide Section 20024.2 benefit option (One-year final compensation) for local miscellaneous members only. 2. In order to comply with the public disclosure requirements of Section 7507 of the Government Code, .request the Clerk of. the Council to reflect in the Minutes of this meeting that the estimated cost of the proposed contract amendment is as follows: a. The City's cost rate will increase 1.881 percentage points from 12.798% to 14.679% of the applicable miscellaneous -member payroll effective December 1, 1984. This percentage increase is the projected actuarial rate to the year 2000 subject to change with future amendments and/or experience and other factors. b. During Fiscal Year 1984-85 the estimated cost of the rate increase will be approx- imately $391,200 based on current and projected miscellaneous -member payroll figures. EXECUTIVE SUMMARY in accordance with the provisions of the current labor agreement between the City of Santa Ana and the Santa Ana City Employee's Association (SACEA) executed on December 19, 1983, the City agreed to amend its contract with PERS to provide the "one-year final compensation" benefit option for all miscellaneous members effective December 1, 1984. This benefit option provides that final compensation, an average monthly rate used in the formula to determine a retiree's monthly retirement allowance, will be computed on the basis of the last consecutive 12 months of work instead of the last 36 months as is currently provided in our contract with PERS. The contract amendment process specified in the PERS Law requires that the above actions be taken 20 days prior to final adoption of the Ordinance which will authorize the actual amendment to the City's contract with PERS to provide the new benefit option. In order to complete the entire contract amendment by the December lst effective date as specified in our labor agreement with the SACEA, said Ordinance will be submitted for first reading on the first Council meeting in October. Appropriations to fund the estimated cost of the above described option have already been included in the current annual budget. C', IS ;:Z� 6 " 3�ll