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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />MARCH 19, 2001 <br />TITLE: <br />AMEND THE CITY'S CONTRACT WITH <br />THE PUBLIC EMPLOYEE'S <br />RETIREMENT SYSTEM TO PROVIDE <br />THE 3% @ 50 RETIREMENT BENEFIT <br />TO LOCAL SAFETY MEMBER <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />As Recommended' <br />As Amended <br />Ordinance on I" Reading,3 -40 <br />Ordinance on 2nd Reading <br />Implementing Resolution <br />Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER ( A� <br />-eEo 2069-02Z <br />1. Adopt a Resolution of Intention to <br />Public Employees' Retirement System <br />provide Section 21362.2 (3% @ 50 <br />safety members. <br />amend the contract between the <br />and the City of Santa Ana to <br />retirement formula) for local <br />2. Adopt an Ordinance authorizing an amendment to the contract between <br />the City of Santa Ana and the Public Employees' Retirement System. <br />DISCUSSION <br />In accordance with the Memoranda of Understanding between the City of <br />Santa Ana and the Police Officers' Association (POA) and Fire Benevolent <br />Association (FBA), the City has agreed to amend its contract with the <br />Public Employees' Retirement System to provide the new 3% @ 50 retirement <br />formula for local safety members. <br />The City's current assets in the Public Employees' Retirement System <br />(PERS) are being applied and as a result there is no immediate cost to the <br />City for this added benefit. Due to these assets, the City's normal rate <br />cost of zero percent is expected to continue for approximately eight <br />years. Over time, the actuarial additional cost needed for this benefit <br />for all existing safety employees' past and future service to the time <br />every member leaves City service is $46,014,620. This amount includes <br />$42,645,475 identified as the unfunded accrued liability for past services <br />by City Safety employees. This future cost will be paid in annual amounts <br />determined by a CalPERS Actuary and will be included in future budgets. <br />Page 1 1 mAN <br />