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HomeMy WebLinkAboutAmendment-85-64AL1R'Nl7crlENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SY,4""iEM AND THE CITY COUNCIL OF THF CITY OF SANTA ANA The Ruud of Administration, Public Employes' Retirement System, hereinafter referred to as Board, rand the governingc, body of above public agency, herein- after referred to as Public Agency, having entered Into a, contrtact. effective July 1, 1947, and witnopsed November 25, 1946, and ns amended esffentive October 1, 1951, February 1, 1954, September 1, 1956, July 1, 1959, November 1, 19CO, September 1, 1963, April 1, 1914, February 1, 1965, January 16, 1969, November 1, 1970, .tune 1, 1974, December 16, 1976, December 1, 1978, October 1, 1e:30, July 1, 1984 and December 1, 1964, which provides for participation of Public. Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 care hereby stricken from said contract tract as executed effective December 1, 1=984, end hereby replaced by the: following paragraphs numbered 1 through 12 Inclusive; 1. All words and terms used herein which are defined in the Public Employees' Retirement Low shall have the meaning as defined therein unless otherwise specifically provided. "Norma=l, retirement ages" shall mean ague bQ for local miscellaneous members, age 50 for local safety members hired prior to October 1, 1981 egad ago 55 for local safety members hired on or after October 1, 1981. 2. Public Agency 0411 paFrtinip=ate fru the Public Employees' Retirement, System from and after July 1, 1947 flanking Its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees* Re=tirement Lasa except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Lars hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Employees of Public Agency :In the i'ca:'.iaowing4 cla.A= shall become members of maid Retirement System except such in ancb such class as are excluded by law or We agfreemcnt: a. Local Fire: Fiahtter•s (herein referred to as local safety mcmbors); b. Local Police Officers Therein referred to as local eaaf ty members), c. Employees other than loe;a;l safety members (herein rr fc,rrcd to as local miscellaneous members). 4. 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 5. Tha: fraction of final compensation to be Provided for each year of credited prior and current service as sa local miscellaneous member shaall be determined In accorKnoo with Section 21251.13 of said Retirement Low (2% at age GO Full.). aa. The fraction of final compensation to be provided for each year of credited prior and current service as a local safety member hired on or after Oo ob r 1, 1961 shall be determined In tawoorfance with Section 21252.6 of said Retirement Law (2% at ago 55 Full). 7. The frectiOt of final compensation to be provide? for each year of credited prior and current service me as local safety member faired prior to October 10 1981 shall be d ta°:1"`mined in accordance with Section 212522.01 of said Retirement Law (2% at ease 50 Full). 8. We following additional provisions of the Public Employees' Retire- ment Luiz, which apply only upon election of ra contracting agency, shall apply to the Public Agency and Its employees: V. Sections 21380-21387 (1959 Survivors Program) excluding Section 21382.2 (Increased 1959 Survivors Benefits). b. Sections 21263p 2.1253.1 and 21263.3 (Post—Retirement Survivor Allowance). 0. Section 20930.3 (Milit=ary Service Credit) as defined in Chapter 1437, Statutes of 1974 for those local miscellaneous resod those local safety members hired pricer to October 1, 1981. d. Section 20461.6 (Reduction of benefit;s)s applied to Section W930.3, .Statues of 1974 (Military Service". Credit) for local miscellaneous and local safety members hired on or after Octaober 1, 1581, and applicable to Section 21252.01 (from 3 0 50 Full formula to 2; p 55 Full formula) for those local safety members faired on or after October 1, 1931, C. Section 2= 24.2 (Ore"Yeaar Final Compensation). 9. Public. Agency* in accordance with $ectjon 20740, Government Code, eerasod to be an "employer" for purposes of Section 20759 of the Public Employees' Retirement I.ow effective on December 16, 1976. Accumulated contributions of Public, Agency as of the aforementioned date shall be fixed ,+arid d+etermincd as provided in Section 20759, Government Code, and accumulated contributions as of the aforementioned time and contributions thereafter made shall be hold by :.he Board as provided In Section 20759, Government Grade. 10. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages cif monthly salaries warned as local miscellaneous members of said Retirement System: (1) 0.200 percent until Juno 30, 2000 on account of the liability for prior ,services benefits. (Subject to annual (2) 14,386 Percent until June 30, 1000 on account of the liability for current service benefits. (Subject to annukal change.) 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) 29.290 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annau;al. change, ) 0. A reasonable amount, as fixed by the Board, payable 1n one in- stallment within 60 days of date of contract to cover the coasts of administering said System as it effects the employees of Public Agency, not Including the costs of special valuations or of the periodic investigation and valuations required by law. d. A reasonable amount:, as fixed by the Board, payable in one in- stallment.: as eche occasions Mae, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic invetstigotivn and valuations required by law. 11, Contributions required of Public: Agency and On employees shall be subject to aadjustmerst, by 7oord on account of amendments to the Public Employees' Retirement Law, and on account of the experience under t'he>. Retirement System as determined by the periodic Investigation and valuation required by said Retirement Law. 12. Contributions required of Public Agvn�,y zjnd its errpjoyeez shall bt, paid by Public Agency to the, ftf=tjrement system t1ithin thirty days after than end of the period to which said oontributions refer or as may be prescribed by Board regulation. If more or less than the cor- rect amount Of 00ntributions Is paid for any period, proper adjustment shall be mode In connection with subsequent rvmitLances. Adjustments on aeoount of errors In contr ibut ions required of any employee may be made by direct pvymvrata between the cmplo ne and the Board B. This amendmentsholl be offective on the --tTtn day of La4e- Witness our bonds the 2(/714 day of -zn44-- —-9 BOARD OF ADMINISTRATION C PUBLIC EMPLOYEES, RETIREMENT SYSTEM OF THE CITY OF SANTA ANA vSt ,j C. If, Presiding Officer EXECUTIVE OFFICER Approved as to form, Attest: — 1xLy\( --A— \ N�JSP '7 n to ark 102 APPROVED AS TO FORM: 0ard oop r City ity Att proved as tont nt gerr STATc OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 90109 SACRAMENTO, CA 95809-0109 ` as Telephone (916) 445-6570 Reply to Section 900 ` 445-4900 (TDD Interpreter) Field & Contracts Services Division July 19, 1985 Mr. John J. Burkhardt Human Resources Manager City of Santa Ana P.O. Box 1988 Santa Ana, CA 92702 Dear Mr. Burkhardt: Employer Code #0137 The amendment to the contract between your agency and the Public Employees' Retirement System to provide Section 20024.2 (One—Year Final Compensation) for local police members, has been executed by our office. A copy of the contract as amended is enclosed for your file. The effective date of this amendment is July 1, 1985. If I can be of any further assistance, do not hesitate to contact me. Sincerely, 8 aiddA, Rr-_�5w� Barbara Patterson Contracts Office Field & Contracts Services Division BP:jh Attachment C04112 (Rev. 04/85) REQUEST FOR COUNCIL ACTION CITY COUNCIL AGENDA DATE June 10, 1985 TITLE URGENCY ORDINANCE NO. NS- AUTHORIZING AN AMENDMENT TO THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) CITY MANAGER RECOMMENDED ACTION J It is recommended that authorizes an amendment System (PERS) to provide factor) for local police EXECUTIVE SUMMARY 1 DATE OF COUNCIL ACTION lit) IU3 � Z�3 CLERK OF THE COUNCIL rl the City Council adopt the attached Urgency Ordinance which to the City's contract with the Public Employees Retirement Section 20024.2 benefit option (one-year final compensation safety members only, effective July 1, 1985. ILC u" F:CE In accordance with the provisions of the current labor agreement between the City of Santa Ana and the Police Benevolent Association (PBA) executed on January 17, 1984, the City agreed to amend its contract with PERS to provide the "one-year final compensation" benefit option for all police safety members effective July 1, 1985. 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. On May 20, 1985, City Council adopted Resolution No. 85-64 declaring Council's intention to approve such amendment to its contract with PERS as required by State Law. Because the required documentation necessary to the adoption of such Resolution could not be provided by PERS earlier than May 8, 1985, and because adoption of an ordinance authorizing actual amendment of the PERS contract could not 'take place until on or after June 10, 1985, it is now necessary to adopt this ordinance as an urgency measure so that the effective date of the contract amendment will coincide with the July 1, 1985 date specified in our labor agreement with the FBA. /e/ REQUEST FOR COUNCIL ACTION CITY COUNCIL AGENDA DATE May 20,1985 DATE OF COUNCIL ACTION •5r' " 2(7_ - TITLE PROPOSED AMENDMENT TO THE CITY'S CONTRACT WITH THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS CITY MANAGER M CLERK OF THE COUNCIL I 1. Adopt the attached Resolution declaring Council's intention to approve an amendment to the City's contract with the Public Employees' Retirement System to provide Section 20024.2 benefit option (One-year final compensation) for local police safety 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 2.115 percentage points from 27.175% to 29.2900 of the applicable police safety payroll effective July 1, 1985. 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 1985-86 the estimated cost of the rate increase will be approximately $258,800 based on current and projected poqli�ce safety payroll figures. EXECUTIVE SUMMARY IN CLERK'S OFFICE In accordance with the provisions of the current labor agreement between the City of Santa Ana and the Police Benevolent Association (PBA) executed on January 17, 1984, the City agreed to amend its contract with PERS to provide the "one-year final compensation" benefit option for all police safety members effective July 1, 1985. 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 adoption of the Ordinance which will authorize the actual amendment of the contract to provide the new benefit option. The results of a required valuation study which had to precede this phase of the amendment process was held in abeyance by PERS until they completed their annual system -wide actuarial reevaluation studies. Consequently, we have been thrown five weeks behind schedule even though we initiated the process back in January. In order to complete the process before the June 30th deadline as specified by our labor agreement with the P.B.A., we will now be required to adopt the Ordinance amending our contract with PERS as an emergency measure at the first regular, adjour reg lar or special meeting of the Council that will be held subsequent to June 9, 1985 a ORDINANCE NO. NS- 1783 AN URGENCY ORDINANCE OF THE CITY OF SANTA ANA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA ANA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION l: 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 of the City of Santa Ana is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said agency. SECTION 3: This ordinance is declared by the City Council to be necessary as an emergency measure for preserving the public peace, health, and safety. The reasons for its urgency are as follows: (1) The City and the Public Employees Retirement System ("PERS") desire to amend their existing agreement to make certain changes effective July 1, 1985. (2) Pursuant to state law any amendment to said agreement must be approved and authorized by ordinance of the City Council. (3) Further pursuant to state law, this ordinance could not be adopted until at least twenty days after the adopting of Resolution No. 85-64 on May 20, 1985, by which the City Council gave notice of its intent to amend the said agreement. (4) Said Resolution No. 85-64 could not be adopted earlier than the May 20, 1985 meeting of the City Council because PERS was unable to provide the required documentation earlier than May 8, 1985. (5) Unless adopted as an urgency measure, this ordinance approving and authorizing the amendment to the said agreement would not be effective until after the necessary effective date for said amendment. ORDINANCE NO. NS- 1783 PAGE TWO SECTION 4: This ordinance is adopted as an emergency measure and shall take effect immediately upon adoption. ADOPTED this 17th day of June, 1985. DANIEL E. GRISET, MAYOR ATTEST: J ce C. Guy erk of the Council COUNCILMEMBERS: Griset Absent Luxembourger Acosta Ty—e APPROVED AS TO FORM int .Hart Johnsone McGuigan Young e Edwardoope City At o CERTIFICATION OF FINAL ACTION OF GOVERNING BODY DATE: 6-24-85 PUBLIC EMPLOYEES RETIREMENT SYSTEM P. 0. Box 1953 Sacramento, California 95809 I hereby certify: That the City Council of the City of Santa Ana Governing Body Public Agency adopted on June 17, 1985 , by an affirmative Date vote of a majority of the members of said Governing Body, Ordinance (Urgency Ordinance or Resolution No. _US_LLaa 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 Ordinance in the form Ordinance or Resolution furnished by said Board of Administration being attached hereto. City of Santa Ana Name of Agency PERS-CON-5 (Rev. 3/78) 0 RESOLUTION NO. 85-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA DECLARING INTENTION TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA ANA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 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: To provide Section 20024.2 (one-year final compensation) for local police safety members only. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Ana: 1. That the City Council of the City of Santa Ana does hereby give notice of intention to approve an amendment to the contract between the said governing body 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. 1985. 2. That this Resolution shall be operative from and after May 20, ADOPTED this 20th day of May 1985, by the following vote: ATTEST: DANIEL E. GRISET, MAYOR /A#I=t`EC. GUY CLERK OF THE COUNCIL COUNCILMEMBERS: Griset Aye Luxembourger AAye Acosta Aye Bricken Aye Johnson Aye McGuigan Aye Young Aye APPROVED AS TO FORM -All EDWARD J. COOPER CITY ATTORNEY AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE plF4S OQ CITY OF SANTA ANA The Board of Administration, ic Employees' Retirement System, herein- after referred to as Board, and thecing body of above public agency, hereinafter referred to as Public AgenffV4,ng'entered into a contract effec- tive July 1, 1947, and witnessed November ,6, and as amended effective October 1, 1951, February 1, 1954, September 1,, 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, December 1, 1978, October 1, 1981, and July 1, 1984, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective July 1, 1984, and hereby replaced by the following paragraphs numbered 1 through 12 inclusive: 1. All words and terms used herein which are defined in the Public Employ- e s' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 60 for local miscellaneous members, age 50 for those local safety members hired prior to October 1, 1981, and age 55 for those local safety members hired on or after October 1, 1981. 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 those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Employees of Public Agency in the following classes shall become mem- bers 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); C. Employees other than local safety members (herein referred to as local miscellaneous members). PIEASF 1)0 loQA excluded from membership by hall not q. In addition to th�-b7 sea of amp Y s said Retirement Lew, ollowing system: of employees become members of said Re i /� NO ADDITIONAL EX`CiLV�PNS 5, The fraction of final compensation to be provided for each year of credited prior and current service as a local miscellaneous membershall be . Law (2e�a determined ina accordance Fullwith Section 21251.13 of said Retirement 6. The fraction of final compensation to be provided.for each year of credited prior and current service for those local safety members hirefter r 1. 1981 shall be withdSectiona21252 6tofedetermined on orsaid Retirement Law (2Satage1accordance 55 Full). 7, The fraction of final compensation to be provided for each year of t service for those local safety members 1981 shall.be determined in accordance hired prior to October 1, with credited prior and curren Retirement Law (2i at age 50 Full). Section 21252.01 of said g, The following additional provisions of the abcontractinges' Retire- ment Law, which apply only upon shall apply to the Public Agency and its employees: a. Sections 21380-21387 (1959 Survivors Program) excluding Section 21382.2 (Increased 1959 Survivors benefits). bw Sections 21263/21263.1 (Post-retirement survivor allowance). c, Section 20930.3 (Military service credit) as defined in Chapter 1437, Statutes of 1974, for those local miscellaneous and those local safety members hired prior to October 1, 1981- d. Section 20461.6 (Reduction of benefits), applied to Section Statutes of 1974 (Military' service credit) for local 20930.3, miscellaneous and local obSection21252 01a(from 2% @ October 1, 1981, and applicable 50 Full formula torafter 250Full formula) for those local safety members hired e. Section 20024.2 (One-year final compensation), for local fire and local miscellaneous members only. nt Code, 9, Public Agency, in accords" f r purpoth eSection ff2Chapter 0740, o6eof the Public ceased to be an "employer for purposes e Employees' Retirement Law effec8ivof the aon forementionedber 16, 6datecshallabed contributions of Public Agency 20759, Government Code, fixed and determined as provided in Section he forementioned tribe ionslated thereafterimadeons as Of tshall be heldatby thenBoarddasaprovided in Section 20759, Government Code. Se LO 10. Public Agency sh l bute to said Retirement System as follows: a. With respect to local GiV 0 neoua members, the agency shall contribute the following pee�as of monthly salaries earned as local miscellaneous membera o Retirement System; ".,! (1) 0.172 percent until June 30, 2000 on account of the lia— bility for prior service benefits. (Subject to annual change.) (2) 14.507 percent until June 30, 2000 on account of the lia— bility for current service benefits. (Subject to annual change.) 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) 27.300 percent until June 30, 2000 on account of the lia— bility for current service benefits. (Subject to annual change.) C. A reasonable amount, as fixed by the Board, payable in one in— stallment 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. di A reasonable amount, as fixed by the Board, payable in one in— stallment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic 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 periodic 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 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 cor— rect amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or adjust— ments on•account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. B• This amendment shall be effective on the IS& day of r 192' da of CITY COUNCIL ' 19_ Witness our hands the Y BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SANTA ANA P�'�SF Up N 0BY BY `' Presiding Officer IDNEY C. ND, EXECUTIVE OFFICER !V �FXHIg�T 0)V1 Approved as to form: Attest: 9 �y Margaret J. ehn, Leg Office, Date Clerk PERS CON -702 r vuulxc employees' rtetirement System Post Office Dox 195^ Sacramento, CA 9 9 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary have been made public at a public meeting by the City Council of (governing body) -the City of Santa Ana at least two weeks prior to the adoption (public agency) of the increase in public retirement plan benefits as provided by Section 20024.2 One-year final compensation (optional benefit) Date:_ May 29, 1985 original sign ure Clerk of the Council official title PERS-COAT-12A (1/80) 4 -4AQ cmpioyeea' netirement system Field & Contracts Services Division Contracts Office, St ton 900 Post Office Box 90109 Sacramento, CA 95809-0109 Telephone (916) 445-6570 445-4900 (TDD Interpreter) CERTIFICATION OF GOVERNINGS BODY'S ACTION - I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the - City Council (Governing -Body) of the City of Santa Ana ' (Name of Publid Agency) on May 20, 1985 appearing at Page 211 (Date) Volumne NSA of the (Minutes) (RfFkakakxReaatxda) of the City Council of the City of Santa Ana. (Governing Body) PERS—CON-12 (5084) (77 CITY CLERK Plr Secretary of the Board v-