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CalPERS Optional 2 Death Benefit <br />Fiscal Year 1999-00 <br />May 1, 2000 <br />Page 2 <br />In order to provide this benefit to the PMA bargaining Unit safety <br />employees, the City is required, under CalPERS regulations, to amend its <br />contract for the entire employment category of local police safety members. <br />When initially presented to the City Council, staff recommended that this <br />benefit also be extended to include the fire safety members as the cost for <br />applying this benefit to all safety categories posed no fiscal impact <br />according to the CalPERS actuarial report. <br />While waiting for the new actuarial report necessary to amend our CalPERS <br />contract, the CalPERS Board adopted a resolution offering employers a one- <br />time -only increase in their actuarial value of assets, if they amended their <br />contract to provide an enhanced retirement benefit to their employees. This <br />one -time -only offer is being made available to employers as a result of the <br />favorable investment earnings on the entire retirement system funds. If <br />pursued, this one -time -only offer would provide the City of Santa Ana with <br />a significant increase in its retirement assets. Because of this offer, <br />staff is recommending that the City Council also approve the Pre -Retirement <br />Optional Settlement 2 Death Benefit for the local miscellaneous members. <br />If approved, this contract amendment will extend the City's current zero <br />percent (0%) employer contribution rate for safety and miscellaneous <br />employees for many years beyond the current actuarial projections. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />Lnrique v <br />Execut- e (ervlces <br />efor <br />Personnel <br />EJA/LEL/ck <br />50.A. <br />