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Home My WebLink AboutCC RESO 2002 - 99RESOLUTION NO. 2002 — 99 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF NATIONAL CITY 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 of said Law; and WHEREAS, one of the steps in the procedures 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 change: To provide Section 21354.3 (3% @ 60 Full formula) for miscellaneous employees only. 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 City of National City 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. PASSED and ADOPTED this 1e day of July, 2002. George H. V aters, Mayor ATTEST: ti £ Michael R. Dalla it Clerk y APPROVED AS TO FORM: ialk: George H. Eiser, III City Attorney Ca1PERS California Public Employees' Retirement System EXHIBIT • AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of National City • 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, 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, October 16, 1978, October 1, 1980, July 16, 1983, January 1, 1985, December 27, 1988, December 12, 1989, November 15, 1991, December 27, 1991, June 11, 1993, May 2, 1996 and July 9, 2002 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 14 are hereby stricken from said contract as executed effective July 9, 2002, and hereby replaced by the following paragraphs numbered 1 through 14 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. PLEASE DO NOT SIGN "EXHIBIT ONLY" 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 contracting 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); 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). 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. 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 20305 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 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 21354.3 of said Retirement Law (3% at age 60 Full). [Note that future legislative proposals are being considered. One proposal could amend the 3% at 60 benefit formula under Government Code Section 21354.3 to coincide with the 2.7% at 55 benefit formula under Section 21354.5 between the ages of 50 and 55. Another proposal being considered could amend Government Code Section 21354.3 to make the 3% @ 60 formula applicable to both active and inactive members who have not yet retired. If enacted, this amendment could have an effect on your agency's actuarial valuation and employer contribution rates in future years.] 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). PLEASE D0 NOT SIGN "EXHIBIT ONLY" 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local fire member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 9. Public Agency elected and elects to be subject to the following optional provisions: a. Section 20425 ("Local Police Officer" shall include employees of a police department who were employed to perform identification or communication duties on August 4, 1972 and who elected to be local safety members). b. Section 21222.1 (One -Time 5% Increase - 19'70). Legislation repealed said Section effective January 1, 1980. c. Sections 21624 and 21626 (Post -Retirement Survivor Allowance). d. Section 21573 (Third Level of 1959 Survivor Benefits). e. Section 20965 (Credit for Unused Sick Leave). f. Section 21325 (One -Time 3% to 15% Increase For Local Miscellaneous Members Who Retired or Died Prior to January 1, 1974). Legislation repealed said Section effective January 1, 2002. g. Section 20042 (One -Year Final Compensation). h. Section 20903 (Two Years Additional Service Credit). 10. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on January 16, 1977. 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 Code Section 20834. 11. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. 12. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1959 Survivor 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. b. 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. c. 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 periodic investigation and valuations required by law. • 13. 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. 14. 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 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 15NIQ account of errors in contributions required of any employee may be may direct payments between the employge and the Board. .` B. This amendment shall b�Orfective on the day of �� BOARD OF ADMINISTN CITY COUNCIL 44�� PUBLIC EMPLOYEES' 1REMENT SYSTEM CITY OF NATION»'CITY A�\� BY � BY � KENNETH W ACTUARIAL PUBLIC Ev ZION, CHIEF PRESkSWTG OFFICER PLOYER SERVICES DIVISION c) YEES' RETIREMENT SYSTEM c3� Witness Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 8\96)