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Home My WebLink About2002-006 - Military Service Credit and Credit for Unused Sick LeaveRESOLUTION NO. 2002-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA OF ITS INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND CITY COUNCIL OF THE CITY OF SANTA ANA RELATIVE TO MILITARY SERVICE CREDIT AND CREDIT FOR UNUSED SICK LEAVE js: 01/24/02 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: 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. There currently exists such a contract between the City Council of the City of Santa Ana and the Board of Administration of the Public Employees' Retirement System relative to miscellaneous employees. The aforementioned law also sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law and amend their contracts accordingly, One of the steps in the procedures to amend the 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 changes proposed in said contract. Section 2. In accordance with provisions of the current Memorandum of Understanding between the City of Santa Ana and Santa Ana City Employees Chapter 1939 / Service Employees International Union Local 347, the City agreed to amend its contract with the Public Employees' Retirement System to provide section 21024 Military Service Credit as Public Service and section 20965 Credit for Unused Sick Leave benefits for local miscellaneous members as soon as practical. A copy of said proposed amendment is attached hereto as "Exhibit A" and by this reference made a part hereof. The Military Service Credit as Public Service benefit allows a member to purchase up to four years of service credit for any continuous active military or merchant marine service prior to employment with the agency. Resolution No. 2002-006 Page 1 of 3 B. The cost to purchase this credit is borne entirely by the employee. The Credit for Unused Sick Leave benefit allows a member to convert unused accumulated sick leave at the time of retirement to additional service credit pursuant to a formula established by PERS. Section 3. The following is a statement of the proposed change: To provide Section 20965 (Credit for Unused Sick Leave) and Section 21024 (Military Service Credit as Public Service) for local miscellaneous members. Section 4. It is hereby resolved that the City Council of the City of Santa Ana will amend its contract with the Board of Administration of the Public Employees' Retirement System in a form as set forth in the Exhibit attached hereto. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this 4th day of February, 2002. APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney AYES: Councilmembers: NOES: ABSTAIN: NOT PRESENT: Alvarez, Bist, Chdsty, Franklin, McGuigan, Pulido, Solodo (7) Resolution No. 2002-006 Page 2 of 3 Councilmembers: None (0) Councilmembers: None (0) Councilmembers: None (0) CERTIFICATION OF ATTESTATION AND ORIGINALITY I, PATRIClA E. HEALY, Clerk of Council, do hereby attest to and certify the attached Resolution No. 2002-006 to be the original resolution adopted by the City Council of the City of Santa Ana on February 4, 2002. Clerk of Council City of Santa Ana Resolution No. 2002-006 Page 3 of 3 Ca]PERS Califomia Public, Employees' Retirement System EXHIBIT AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council ':. City of Santa Ana 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 July 1, 1947, and witnessed November 25, 1946, and as amended effective October 1, 1951, February 1, 1954, September 11~ 1956, July 1, 1959, November 1, 1960, September 1, 1963, April 1, 1964, February 1, 1965, January 16, 1969, November 1, i970, June 1, 1974, December 16, 1976, .December 1,, 1978, October 1, 1981, July 1, 1984, December 1, 1984, July 1, 1985, February 1, 1990, July 1, 1990, December 5, 1991, April 15, 1993, June 16, 1994, January 1, 1995, December 5, 1995, July 5, 2000, March 8, 2001 and July 1, 2001 which provides for participation of Public Agency in said System, Board and Public Agengy hereby agree as follows: Ao Paragraphs 1 through 12 are hereby stricken from said contract as executed effective July 1, 2002,' and hereby replaced by the following paragraphs numbered 1 through 12 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 and age 50 for local safety members. o o PLEASE DO NOT SIGN "EXHIBIT ONLY" Public Agency shall participate in the Public Employees' Retirement System from and .after July 1, 1947 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 herea, ffer enacted exCept those, which by express provisions thereof, apply only on the election of a contracting agency. Employees of Pbblic 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); Co Employees other than local safety members (herein referred to as local miscellaneous members). 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 The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). The percentage of final compensation to be provided for each year of credited pdor and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). Public Agency elected and elects to be subject to the following optional provisions: a. Sections 21624 and 21626 (Post-Retirement Survivor Allowance). bo Section 21024 (Military Service Credit as Public Service), Statutes of 1974 for ~those local miscellaneous members and local safety members entering membership prior to October 1, 1981. pLEASE DO NOT SIGN "EXHIBIT ONLY" Sedtion 20475 (Different Level of Benefits Provided for New Employees). Section 21024 (Military Service Credit as Public Service), Statutes of 1974, is not applicalbe to local miscellaneous members land local safety members entering membership after October 1,'1981. Section 20.042 (One-Year Final Compensation). Section 20{~03 (Two Years Additional Service Credit). Section 2'J573 (Third Level of 1959 Survivor Benefits). Section 21.548 (Pre-Retirement Optional Settlement Benefit). 2 Death Section 21024 (Military Service Credit as Public Service), Statutes of 1976. ~ i. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members only. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on December 16, 1976. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Cede Section 20834. Public Agency shall COntribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability' with respect to local mis"cellaneous members and local safety members of said Retirement System. 10. Public Agency shall also contribute to said Retirement System as follows: Contributions required per covered member on account of the 1959 Sarvivor 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. 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. Co A reasonable amount, as fLxed by the Board, payable in one installment as the occasions adse, to cover the costs of special valuationsOn account of employees of Public Agency, and costs of the pedodic investigation and valuations required by law. 11. 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 pedodic investigation and valuation required by said Retirement Law. 12. 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 'fo 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 pedod, 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 effectiv~the __ day of , BOARD OF ADMINIS.T, RATION ,,~ CITY COUNCIL PUBLIC EMPLOYEES RETIRE~[:~HT SYSTEM CITY OF SANTA ANA BY C,~"~,.('~x'~c'~'''~'' BY · KENNETH W. MARZIg~J~"~HIEF PRESIDING OF~F.~\' ACTUARIAL & EMp~ER SERVICES DIVISION PUBLIC EMPLO~E~' RETIREMENT SYSTEM vw~s Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 8~g6)