HomeMy WebLinkAbout1988 CC RESO 15,760RESOLUTION NO. 15,760
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 NATIONAL
CIT Y
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 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 change proposed in said contract; and
WHEREAS, the following is a statement of the proposed changes:
To provide Government Code Sections 20862.8 (Credit for Unused Sick Leave)
and 21382.4 (Third Level of 1959 Survivor Benefits) for local fire members only;
and
WHEREAS, Government Code Section 21382.4, requires all assets and liabilities
of all contracting agencies subject to this section, and their employees who are
covered by this section, to be pooled into a single account.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City 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 Exhibit "A" and by this reference made a part hereof.
BE IT FURTHER RESOLVED by the City Council of the City of National City
that the Mayor is authorized to execute an agreement on behalf of the City with the
Board of Administration of the Public Employees' Retirement System that
accumulated and/or future contributions required of the City of National City and its
covered employees are to be released, pursuant to the provisions of Government Code
Section 21382.4, to a single account referred to as the the Third Level 1959 Survivor
Benefits Pool, a copy of said agreement being atached hereto as Exhibit "B" and by
this reference made a part hereof.
PASSED and ADOPTED this llth day of October, 1988.
ATTEST:
IONE CAMPBELL
Ione Ca Abell, Cit Clerk
BY: FQ»M: �tC
APP OV.ED AS PO
a2
Geoige H. Eiser, III - City Attorney
h
G rge H. Waters, Mayor
* * *
COPY
EXHIBIT "A"
ov.- AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF NATIONAL CITY
The Board of Administration, Public Employees' Retirement System, hereinafter
referred to as Board, and the governing body of above public agency,
hereinafter referred to as Public Agency, having entered into a contract
effective July 1, 1948, and witnessed May 1, 1948, and as amended effective
March 1, 1954, July 1, 1954, April 1, 1956, April 1, 1970, December 1, 1972,
September 28, 1973, October 1, 1973, March 1, 1974, October 1, 1974,.January
16, 1977, January 16, 1977, October 16, 1978, October 1, 1980, July 16, 1983 -
and January 1, 1985, 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 January 1, 1985, 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
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age"
shall mean age 60 for local 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, 1948 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 contract-
ing agency.
3. Employees 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 Fire Fighters (herein referred to as local safety members);
*
COPY
b. Local Police Officers (herein referred to as local safety
members);
1. Local Police Officers shall include individuals defined by
Section 20020 of the Government Code prior to its amendment
at the 1975-76 Regular Legislative Session, effective
January 1, 1976, employed by Public Agency prior to such
amendment;
c. Employees other than local safety members (herein referred to as
local miscellaneous members).
4. In addition to the classes of employees excluded from membership by
.aid Retirement Law, the following classes of employees shall not
.*become members of said Retirement System:
0
NO ADDITIONAL EXCLUSIONS
Prior to January 1, 1975, those members who were hired by Public
Agency on a temporary and/or seasonal basis not to exceed 6 months
were excluded from PERS membership by contract. Government Code
Section 20336 supersedes this contract provision by providing that any
such temporary and/or seasonal employees are excluded from PERS
membership subsequent to January 1, 1975.
6. The fraction 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 21251.13 of said
Retirement Law (2% at age 60 Full).
7. The fraction of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21252.01 of said Retirement Law
(2% at age 50 Full).
8. 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. Section 20020 ("Local Police Officer" shall include persons
assigned to identification and communication duties in the Police
Department who were not classified as local safety members and
who were in such employment on or prior to August 4, 1972, and
who elected safety membership on or before September 28, 1973).
b. Section 21222.1 (Special 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
c. Sections 21263 and 21263.1 (Post -Retirement Survivor Allowance).
* * *
COP Y
d. Sections 21360 - 21387 (1959 Survivor Benefits) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits) for miscellaneous and
police members.
e. Section 20862.8 (Unused Sick Leave Credit) for local
miscellaneous and local fire members only.
f. Section 21222.85 (Special 3% - 15% Increase) for or on behalf of
those local miscellaneous and those local safety members who
retired or died prior to January 1, 1974.
g. Sections 21380 - 21387 (1959 Survivor Benefits) including Section
21382.4 (Third Level of 1959 Survivor Benefits) for local fire
members only.
9. Public Agency, in accordance with Government Code Section 20740,
ceased to be an "employer" for purposes of Section 20759 effective on
January 16, 1977. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20759, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20759.
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 of salaries earned as
members of said Retirement System:
O (1) 6.785 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
Co change.)
4c7 b. With respect to local safety members, the agency shall contribute
? the following percentages of salaries earned as members of said
C.i Retirement System:
A., (1) 19.320 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
�„,' change.)
Q
mot,,, (2) 0.214 percent until June 30, 2000 on account of the
•c, liability for the benefits provided under Section 21222.85
.t% of said Retirement Law. (Subject to annual change.)
r`
c. Public Agency shall contribute $3.00 per employee on account of
the liability for the 1959 Survivor Program provided under
Section 21382.4 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 beneficiaries of all local
fire members.
* * *
COPY
*
d. 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.
e. 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
correct amount of contributions is paid for any period, 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 effective on the day of
, 19
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENBJSTEM OF THE
46- CITY OF NATIONAL CITY
BY BY
ASSISTANT EXECUB*3'E OFFICER Presiding Officer
PERS-CON-702 (AMENDMENT)
(Rev. 6/88)
Witness Date
Attest:
Clerk G
4Q"
c�`f
EXHIBIT "B"
AGREEMENT
AUTHORIZING THE RELEASE OF
1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES
INTO THE
THIRD LEVEL 1959 SURVIVOR BENEFIT POOL
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF NATIONAL CITY
WHEREAS, the City Council of the City of National City has adopted a Resolution
of Intention to include in its contract with the Board of
Administration, Public Employees' Retirement System, pursuant to
Government Code Sections 21380-21387, including Government Code
Section 21382.4, the Third Level of 1959 Survivor Benefits; and
WHEREAS, Government Code Section 21382.4, requires all assets and liabilities
of all contracting agencies subject to this section, and their
employees who are covered by this section, to be pooled into a single
account;
NOW THEREFORE BE IT AGREED:
Accumulated and/or future contributions required of the City of
National City and its covered employees are to be released, pursuant
to the provisions of Government Code Section 21382.4, to a single
account referred to herein as the Third Level 1959 Survivor Benefits
Pool.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
ASSISTANT EXECUTIVE OFFICER
C0S05 (Rev. 6/88)
CITY COUNCIL
OF THE
CITY OF NATIONAL CITY
BY LL/1 fir-
Presidifig Officer
Date 10 - 1 3-
ARTICLE 23 PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Section 1
Consistent with the Government Code of the State of California, employees are local
safety members of the Public Employees' Retirement System and are entitled to
optional benefits as indicated in the January 1, 1985, amendment to contract between
the Board of Administration of PERS and the City Council.
Section 2
Effective January 1, 1989, the City's contribution for the employee's share of the
cost of the Public Employees' Retirement System shall increase from six and one-half
per cent (6.5%) to nine per cent (9.0%). Effective that date the full cost of the
retirement program shall be paid by the City.
Section 3
The City shall pay for a Public Employees' Retirement System actuarial study to
determine the cost of implementing the following improvements in benefits:
a. Third level of 1959 Survivor Benefit (Section 21382.4)
b. Credit for Unused Sick Leave (Section 20862.4)
Subject to PERS requirements and the provisions of Article 24 of this MOU these
improvements shall be implemented January 1, 1989.
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