HomeMy WebLinkAboutAmendment-78-126AMENDIMT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC MWLOYP,ES' RETIREMENT SYSTEM
AND THE
CITY COMICIL
OF THE
CITY OF SANTA ANA
The Hoard of Administration, Public Employees' Retirement System, herein-
after referred to as "Board"* and the governing body of above public agency,
hereinafter referred to as "Public Agaucy", having entered :into a contract
under date of November 25, 1946, effective July 1, 1947,aud as amended
effective October 1, 1951, February 1, 1954, September 1, 1956, July 1, 1959,
November 1, 1960, September 1, 1963, April 1, 1964, February 1, 1965,
January 16, 1969,_November 1, 1970, June 1, 1974, December 16, 1976, which
provides for participation of Public Agency in said System, Hoard and
Public Agency hereby agree as follows,
A. Paragraphs l through S are hereby stricken from said contract as
executed effective June 1, 1974, and hereby replaced by the
following paragraphs number 1 through 10 inclusive:
1. All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the moaning as defined therein
unless otherwise specifically provided. "Normal retirement age"
shall mean. age 60 :for miscellaneous members and age 50 for local
safety members.
2. 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
said to all amendments to said Law hereafter enacted except such as
by express provisions thereof apply only on the election of contracting
agencies,
3. anployess of Public 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 agreemaets
a. Local Fireman (Herein: referred to as local safety mombers) i
b. Local Policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
miscellaneous members).
In addition to the classes of employees excluded from membership by
said Retirement Lave* the following classes of employees shall not
become members of said Retirement Systems
NO ADDITIONAL EXCLUS10148
WN -702-1
4. The fraction of final compensation to be provided for each year of
credited prior and current service as a miscellaneous member shall
be determined in accordance with :auction 21251.13 of said Retirement
Law (22 at age 60).
5. The fraction of final compensation to be provided for each year
of credited pricer and current service: as a safety member shall
be determined to accordance with Section 21252.01 of said
Retirement Law (2% at age 50).
6. The following additional provisions of the Public Umployeae' Retirement
Taiw which apply srnly upon election of a contracting agency shall apply
to the :public Agency and its amployeest
a» Sectiones 11380-21388 (providing for allowances for survivors
of members covered under the 1959 Survivor's Program upon the
me=mber's deans before retiroment).
b: Sections 21263 and 21263.1 (providing upon the death of a
member who retired for service or disability for continuance..
of a pest-ratirement survivor allowance to certain survivors).
a. Section 20930.3 (allowing public: service credit under the
provisions of Chapter $10, State. 1976, .for up to four years
of continuous military or merchant marine service),
d. Section 211983.6 (providing t1kkat miscellaneous members attaining
age 67 may continue in employment irrespective of age as members
of said System upon certification of the member's competence by
Public Agenay).
'7. Public Agency$ in accordance with Section 20740, Government Gods,
ceased to be an '"camployar" for purposes of Chapter 6 of the Public
Employees' Retirement law effective aanDecomber 36, 1976.
Accumulated contributions of Public Agency as of the aforementioned
data shall be fixed and determined as provided in Section 20759,
Government Code$ and accumulated contributions as of the afore-
mentioned date and contributions thereafter made shall be holm by
the Board as provided in Section 20759, Government Code*
,'8. Public Agency shall contribute to said iictiremsent System as follows
a'. Witia respect to miscellaneous members* the agency shall
contribute the following percentages of monthly salaries
warned as miscellaneous members of said retirement Systamc
(1) 11.873 percent can account of the liatility for current
service benefits.
(2) 0.261 percent on xaccorant of the liability for the
1959 Survivor Program.
CON -702-2
b, With respect to local safety members, the agency shall
contribute the following percentages of monthly salaries
earned as local safety members of said Retirement Systema
(1) 23.460 percent on account of the liability for currant
service benefits.
(2) 0.004 percent on account of the liability for the
1959 Survivor Program..
Oz. A reasonable amount per annum# as fixed by the Board to cover
t}ae costs of administering said System as it affects the
employees of Public Agency, not including the costa of special
valuations or of the periodical investigation and valuations
required by law.
d. A reasonable amount as fixed by the Board# payable in one
installment as the occasions arise# to cover the costs of
special valuations on account of employees of Public Agency#
and costa of the periodical investigation and valuations
required by lass.
9. Contributions required of Public Agency and its employees shall be
subject to adjustment by Beard an account of amendments to the
Public, Employees# Retirement draw# and on account of the experience
under the Retirement System as determined by the periodical
investigation and valuation required by said Retirement Law.
10. Contributions required of Public Agency and its employees shall
be paid by Public Agency to the Retirement System within thirty
days after the end of the period to which said contributions
refer or as may be prescribed by Board #regulation. 1f more or
less than the correct amount of contributions is paid for any
period# proper adjustment shall be mado in connection with
subsequent remittances# or adjustments este account of errors
in coeatributi,ons required of any employee may be made by
direct cash payments between the employee and the Board,
Paynaents by Public Agency to Board may be made in the farm
of warrants, bank checks# bank drafts# certified chocks,,
money orders.# or cash,
S. This amendment shall lie attached to saidre
g contract and shall be effective o
.the day of
Vditness our hands this day of # 19=#
BOARD OF ADMINISTRATION
PUBLIC UMP10YEFS# RETIRMENT SfSTRU
BY
Carl 3 Bleching r ExecutiveOfMar
as to forma
`PEES ` 7L`5'
at.
II
PREPARED BY CARRIE MACMILLIN
Deputy City Attgrney
DATE 11/2/78 PHONE 49.00
SUBJECT RESOLUTION AUTHORIZING MAYOR
AND CLERK OF THE COUNCIL TO
EXECUTE AMENDMENT TO CONTRACT
PERS
ION AND THE CITY OF SANTA ANA
DEPUTY CITY MANAGER
RECOMMENDED ACTION
DATE OF COUNCIL ACTION A�- . /tTF
- \ 3 tE,
Adopt attached resolution and authorize mayor and clerk of the council to
execute Amendment To Contract Between The Board of Administration Public
Employees' Retirement System and The City Council of the City of Santa Ana.
BACKGROUND
This implements previous council action authorizing the elimination of manda-
tory retirement age of 67 years for non -safety employees of the City of
Santa Ana.
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RESOLUTION NO. 78-,136
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN THE CITY COUNCIL
AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
CM:adg'
11/1/78
BE IT RESOLVED by the City Council of the City of
Santa Ana:
SECTION 1: That an amendment to the Contract between
the City Council of the City of Santa Ana and the Board of
Administration, California Public Employees' Retirement System
is hereby authorized, a copy of said amendment being attached
hereto, marked "Exhibit A", and by such reference made a part
hereof as though herein set out in full.
SECTION 2: The Mayor of the City Council is hereby
authorized, empowered, and directed to execute said amendment
for and on behalf of said Agency.
ADOPTED this 6th day of November, 1978, by the
following vote:
AYES: COUNCILMEN: Ward, Brandt, Bricken, Yamamoto,
Evans, Garthe
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: Ortiz
ATTEST:
TRZCEACTING
CLERTTHFCOUNCIL,
APPROVED AS TO FORM:
KEITH L. GOW
CITY ATTORNEY
/S/ VERNON S. EVANS
MAYOR
THE FORECOI DIG INSTRUMENT IS A FULL, TRUIE, AND CORRECT COPY OF
THF CRGi NAL ON FILE IN THIS OFFICE.
..........., L.... V V _.. .......
.....
ATTEST:.. .......� ..... i ..................
_.. , Cll' OF S.�N TA ANA
FLC�FNI- I.
CEP,J Y
AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SANTA ANA
The Board of Administration, Public Employees' Retirement System, herein-
after referred to as "Board", and the governing body of above public agency,
hereinafter referred to as "Public Agency", Having entered into a contract
under date of November 25, 1946, effective July 1, 1947,and as amended
effective October 1, 1951, February 1, 1954, September 1, 1956, July 1, 1959,
November 1, 1960, September 1, 1963, April 1, 1964, February 1, 1965,
January 16, 1969, November 1, 1970, June 1, 1974, 'December 16, 1976, which
provides for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs I through 8 are hereby stricken from said contract as
executed effective June 1, 3.974, and hereby replaced by the
following paragraphs number .1. through 10 inclusive.
1. 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 60 for miscellaneous members and age 50 for local
safety members.
2. 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 hereafter enacted except such as
by express provisions thereof apply only on the election of contracting
agencies.
3. Etaployees of Public 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 Firemen (herein referred to as local safety members);
b. Local Policemen (herein referred to as local safety members);
c. Employees other than local safety members (herein referred to as
miscellaneous members) .
In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees sball not
become members of said Retirement System:
140 ADDITIONAL EXCLUSIONS
37
_< CON -702-1
4. The fraction of final compensation to be provided for each year of
credited prior and current service as a miscellaneous member shall
be determined in accordance with Section 21251.13 of said Retirement
Law (2% at age 60).
5. The fraction of final compensation to be provided for each year
of credited prior and current service as a safety member shall
be determined in accordance with Section 21252.01 of said
Retirement Law (2% at: age 50) .
6. The following additional provisions of the Public Employees' Retirement
Law which apply only upon election of a contracting agency :shall apply
to the Public: Agency and its employees:
a. Sections 21380-21388 (providing for allowances for survivors
of members covered under the 1959 Survivor's Program upon the
member's death before retirement).
b. Sections 211263 and 21263.1 (providing upon the death of a
member who retired for service or disability for continuance
of a post-retirement survivor allowance to certain survivors).
c. Section 20930.3 (allowing public service credit under the
provisions of Chapter 830, Stats. 1976, for up to four years
of continuous military or merchant marine service).
d. Section 20983.6 (providing that miscellaneous members attaining
age 67 may continue in employment irrespective of age as members
of said System upon certification of the member's competence by
Public Agency).
7. Public Agency, in accordance with Section 20740, Government Code,
ceased to be an "employer" for purposes of Chapter 6 of the Public
Employees' Retirement Law effective onDecember 16, 1976.
Accumulated contributions of Public Agency as of the aforementioned
date shall be fixed and determined as provided in Section 20759,
Government Code, and accumulated contributions as of the afore-
mentioned date and contributions thereafter made shall be held by
the board as provided. in Section 2.0759, Government Code.
8. Public Agency shall contribute to said Retirement System as follows.
a. With respect to miscellaneous members, the agency shall.
contribute the following percentages of monthly salaries
earned as miscellaneous members of said Retirement System:
(1) 11.1173 percent on account of the "liability for current
service benefits.
(2) 0.261 percent on account, of the liability for the
1959 Survivor Program.
CON -702-2
b. With respect to local safety members, the agency shall
contribute the following percentages of monthly salaries
earned as local safety members of said Retirement System.
(1) 23.460 percent: an account of the liability for current
service benefits.
(2) 0.004 percent on account of the liability for the
1959 Survivor Program.
c. A reasonable amount per annum, as fixed by the Board 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 periodical investigation and valuations
required by law.
d. A reasonable amount as fixed by the Board, payable In one
installment as the occasions arise, to cover the costs of
special valuations on account of employees of Public Agency,
and costs of the periodical investigation and valuations
required by law.
9. 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 periodical
investigation and valuation required by said Retirement Law.
10. Contributions required of Public Agency and its employees shall
be paid by Public Agency to the Retirement System within thirty
days after the end of the period to 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
period, proper adjustment shall be made In connection with
subsequent remittances, or adjustments on account of errors
in contributions required of any employee may be made by
direct cash payments between the employee and the Board.
Payments by Public Agency to Board may be made in the form
of warrants, bank checks, bank drafts, certified checks,
money orders, or cash.
B. This amendment shall be attached to said contract and shall be effective on
the day of _ -AA---- 0 19 -
Witness our hands this
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES) RETIREMENT SYSTEM
BY
Z-ar:,I-:T.—Ble—chi-n'-g'e—r,—F,Y—ecu—tive Officer
Approved as to form:
Legal office, PERS
,QTY COUNCIL
OF THE
CITY OF SANTA ANA
BY_sidi
Presiding Officer
Attest:
Clerk
CON -702-3
In
CERTIFICATION OF FINAL
ACTION OF GOVERNING BODY
DATE: November 8. 1978
PUBLIC EMPLOYEES RETIREMENT SYSTEM
P. o. Box 1953
Sacramento, California 95809
I hereby certify:
That the Cit of the Ci tX of
-- Governing Body Public Agency
adopted on Nov , by an affirmative
Date
vote of a majority of the members of said Governing Body,Linn _
Ordinance or Resolution
No. 7R -13f, approving the attached contractual agreement between the Governing
Body of said Agency and the Board of Administration of the Public Employees'
Retirement System, a certified copy of said Ra40111tinn in the form
Ordinance or Resolution
furnished by said Board of Administration being attached hereto.
CD&rX or Secretary Patracia E, R1,ke k
Acting Clerk of the Council
City of Santa Ana
Name of Agency
PERS-CON-5 (Rev. 3/78)
S"0411*
PREPARED BY Director of Personnel
DATE 8/25/78 PHONE 4154
SUBJECT RESOLUTION OF INTENTION TO AMEND
CONTRACT WITH P.E.R.S. TO
DATE OF COUNCIL ACTION
CONTINUATION OF EMPLOYMENT BEYOND AG$
67 FOR MISCELLANEOUS MEMBERS I!
D \ DEPUTY CITY MANAGER ASSISTANT-- VMANAGER CLERK OF THE COUNCIL
RECOMMENDED ACTION
Approve the attached resolution of intention to approve an amendment to contract between the
Board of Administration of the Public Employees' Retirement System and the City Council of
the City of Santa Ana.
BACKGROUND
Assembly Bill (A.B.) 568, which became effective as an urgency statute on September 16, 1977,
permits Public Employees' Retirement System (P.E.R.S.) participants to continue in employment
irrespective of age as regular retirement system members, upon a written request signed by
the member to remain in employment beyond age 67, and a certification of the member's competence
signed and officially authorized by the governing body of each agency. The statute is not
applicable to public law enforcement and firefighting employees.
Members will now have the right to continue in employment beyond age 67 under the following
circumstances:
The agency amends its contract electing to be subject to Government Code Section
20983.6; and,
The agency certifies the member's competence in his or her position.
Section 2098 3.6 requires each agency amending to this provision to adopt rules and regulations
for certifying member competency to P.E.R.S. P.E.R.S. will require the following:
1. A written request, signed by the member, to remain in employment beyond age 67; and,
2. A certification of the member's competence to perform in his or her position,
signed by the official authorized by the governing body of each agency.
Members who continue in employment beyond age 67 are subject to the same rights and liabilities
as other active members. For example, an Application for Retirement is necessary to retire,
and retirement cannot be effective earlier than the day following the last day for which
salary is payable.
ANALYSIS
The recently -adopted federal legislation, Age Discrimination in Employment Amendment of 1977,
(H.R. 5383) eliminates altogether mandatory retirement based on age for most employees of the
Federal Government. The legislation extends the retirement age to 70 for nearly all state
and local government workers rendering the existing retirement requirement at age 67 invalid
as of January 1, 1979. The primary thrust of this legislation is to strengthen and broaden
the provisions of the Age Discrimination In Employment Act (A.D.E.A.) of 1967 by insuring
that older individuals who desire to work will not be denied employment opportunities solely
on the basis of age. The legislation extends the upper age limits from 65 to 70 for all those
subject to the legislation and includes a ban on forced retirement for most federal employees,
a majority of whom can be forced to retire at 70 under present civil service law. The removal
of the upper age limitation for federal employees becomes effective on September 30, 1978.
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Request for Council Action
Page Two
August 25, 1978
In any action involving monetary damages as a result of the violation of A.D.E.A. the
amount owing shall contemplate two elements; first, items of pecuniary or economic loss
such as wages, fringe and other job-related benefits; second, the item of liquidated damages
(calculated as an amount equal to the pecuniary loss) which compensates the aggrieved party
for nonpecuniary losses arising out of a willful violation of the A.D.E.A. (Overnight Trans-
portation Company v. Missel, 316 U.S. 572).
Therefore, if -the City's existing retirement policy is challenged and found unconstitutional
the City would be held liable for substantial sums of unpaid back wages as well as liquidated
damages. While the .federal legislation provides for a few exceptions to the ban on mandatory
retirement, particularly in the area of highly -paid employees, members of college faculties,
public school teachers and certain occupations such as law enforcement and fire protection,
it does not grant employing agencies a choice of whether they should or should not be bound
by its provisions. The employing agency must either comply or be found in violation of the
legislation. Hence, a mandatory retirement of miscellaneous employees prior to age 70 would
be in direct violation of the federal legislation as of January 1, 1979.
The City's existing retirement plan requiring mandatory retirement of miscellaneous employees
at age 67 will be in violation of federal standards as of January 1, 1979.
CONCLUSIONS
Since the state and federal governments have abolished a mandatory retirement age for their
miscellaneous employees and the state legislature has indicated that there is no state
economic interest in perpetuating compulsory retirement, it is strongly recommended that
the City amend its contract with P,E.R.S, and elect to be subject to Government Code Section
20983.6.
Attachment
M
JLC: n.
8/29/78
RESOLUTION NO. 78-117
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA ANA STATING ITS INTENTION
TO APPROVE AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY OF SANTA ANA AND THE
BOARD OF ADMINISTRATION OF THE PUBLIC
EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE
FOR CONTINUATION OF EMPLOYMENT BEYOND
AGE 67 FOR MISCELLANEOUS MEMBERS.
WHEREAS, 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, and sets forth the procedure by
which said public agencies may elect to subject themselves
and their employees to amendments to said law; and
WHEREAS, one of the steps in the procedure to
amend this contract is the adoption by the legislative 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 change proposed in
said contract; and
WHEREAS, the following is a statement of the
proposed change: That miscellaneous members may continue in
employment irrespective of age as members of the Public
Employers' Retirement System, upon certification of the
members competence by the department or public agency head
or other appropriate supervisior pursuant to rules and
regulations adopted by the Public Agency.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF SANTA ANA AS FOLLOWS:
1. That notice is hereby given of the City
Council's intention to approve an amendment to the contract
between the City of Santa Ana and the Board of Administration
of the Public Employees' Retirement System, a copy of said
amendment being attached hereto, as an "Exhibit" and by
this reference made a part hereof.
ADOPTED this Sth day of
the following vote:
September
1978, by
AYES: COUNCILMEN: Garthe, Brandt, Bricken, Ortiz,
Yamamoto, Evans, Ward
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: None
ATTEST:
ORIGINAT SIGNED BY
FLORENCE I. MALONE
CLERK OF THE COUNCIL
APPROVED AS TO FORM:
ORIGINAL cry D BY
VERNON S. EVANS
MAYOR
CERTIFICATION OF FINAL
ACTION OF GOVERNING BODY
DATE: November 8. 1978
PUBLIC EMPLOYEES RETIREMENT SYSTEM
P. 0. Box 1953
Sacramento, California 95809
I hereby certify:
That theCi erniof the
Govng Body Public Agency
adopted on 60 1978 by an affirmative
Date
vote of a majority of the members of said Governing Body, Rpqolllf inns
Ordinance or Resolution
No. 78,•1jC approving the attached contractual agreement between the Governing
Body of said Agency and the Board of Administration of the Public Employees'
Retirement System, a certified copy of said of „t;n„ in the form
Ordinance or Resolution
furnished by said Board of Administration being attached hereto.
C1 � or Secretary Patricia E, I2 e
Acting Clerk of the Council
City of Santa Ana
Name of Agency
PERS-CON-5 (Rev. 378)