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HomeMy WebLinkAboutCC RESO 2011-259RESOLUTION NO. 2011 — 259 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY OF NATIONAL CITY TO PROVIDE FOR A 3%@ 55 FULL FORMULA BENEFIT FOR FIRE SAFETY MEMBERS ENTERING MEMBERSHIP FOR THE FIRST TIME IN THE FIREFIGHTERS' ASSOCIATION 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 procedures to amend this contract is the adoption by the City Council 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 provided Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full formula) is applicable to local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 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 Exhibit "A", and by this reference made a part hereof. ATTEST: PASSED and ADOPTED this 6th day of December, 2011 AY Michael R. Dalla, C ty Clerk on Morrison, Mayor APPROVED AS TO FORM: f/'' Claudia Gacitua Silva City Attorney California Public Employees' Retirement System r_ a 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, July 9, 2002, September 17, 2002, July 6, 2004, January 27, 2009, March 18, 2010 and March 22, 2011 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 18 are hereby stricken from said contract as executed effective March 22, 2011, and hereby replaced by the following paragraphs numbered 1 through 18 inclusive: EXHIBIT "A" L/ tj r! u c f t.0 r jj �f L 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, age 50 for local police members entering membership in the police classification on or prior to March 18, 2010 and for those for local fire members entering membership in the fire classification on or prior to the effective date of this amendment to contract, age 55 for local police _members entering membershipfor the first time in the police classification after March 18, 2010 and for those for local fire .members entering membership for the first time in the fire classification after the effective date of this amendment to contract. 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 applyonly on election of a contracting agency and are not .provided for herein and to a►1 amendments. to .said Law hereafter enacted except those, which by ..express provisions thereof, apply only on the election of a contracting agency. 3. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CalPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and: the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any. of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under. this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CalPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CaIP.ERS. to .provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under. the California Public 'Employees' Retirement Law. PLEASE DO i' OT SIGN "EXH5 1 T f 1\11 V: (d) Public Agency'selectionto file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and/or Public Agency's election to reject this Contract with the CaIPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaiPERS' Board of Administration. (f) (g) The termination of this Contract either voluntarily by request of Public Agency or: involuntarily; pursuant to the Public Employees' Retirement Law. Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 4. .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 rnembers (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 6. Prior to January 1, 1975, those memberswho were hired by Public Agency on a temporaryand/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. PLEASE DO n ni j 1, 7. This contract shall be a. continuation of the contract of the Community Development Commission of the City of National -City, hereinafter referred to. as "Former Agency". The accumulated contributions, assets and liability for prior and current service under the' former Agency's_contract shall be merged pursuant to Section 20508 of the Government Code. Such merger occurred March 20, 2008. 8. The percentage of final compensation to be providedfor each year of credited prior and current service as a local miscellaneous member in employment before and not on or after September 17, 2002 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 :prior and current service as a local miscellaneous member in employment on or after September 17,2002 and not entering membership for the first time in the miscellaneous classification. after March 22, 2011 shall be determined in . accordance with. Section 21354.3 of said Retirement Law (3% at age 60 Full). 1.0. The percentage of final compensation to be provided for each year of credited current serviceas a local miscellaneous:. member entering; membership for the first time in the miscellaneous classification after March 22, 2011 shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 11. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member entering. membership in the police classification on or prior to March 18, 2010 and for those local fire members entering membership in the fire classification on or prior to the effective date of this amendment to contract shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). PLEASE DO NOT SIGN "E 12. The ;percentage of final compensation to be, provided for each year of credited current service as a local police member entering membership for thefirst time in the police classification after March 18, 2010 and for those local fire members entering membership for the first time in the fire classification after the effective date of this amendment to contract shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 •Full). 13. :Public Agency elected and elects to be subject to the following optional provisions: a. Section 20425 ("Local Police Officer" shallinclude 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 - 1970). 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 20996 (Military Service Credit as Prior Service). 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). is Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 'Full formula) is applicable to local :police members entering membership for the first time :in the police classification after March 18, 2010. Section 21353 (2% @ 60 Full formula) is applicable to local miscellaneous members entering ..membership for the firsttime in the miscellaneous classification after March 22, 2011. Section 21363.1 (3% @ 55 fill formula) is applicable to local fire members.. entering membership for the first time in the fire classification after the effective date of this amendmentto contract. JI CAQ: 1W.- !(i" 14. •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 accumulatedcontributions thereafter shall be held by the Board as provided in Government Code Section 20834. 15. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future serviceliability with respect to local miscellaneous members and local safety members of said Retirement System. 16. 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, basedon term insurance rates, for survivors of all local miscellaneous membersandlocal 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 asit affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required bylaw. c... A reasonable amount, as fixed by the Board, payable in one installment as theoccasionsarise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations requiredby law. 17. Contributionsrequired of Public Agency and itsemployees shall be subject to adjustment by Board on accountof 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. 18. 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 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 BOARD OF ADMINISTRATION PUBLIC Ei P,LOYEES' RETIREMENT SYSTEM BY KAREN DEFRANK,t1.EF CUSTOMER ACCOU0 pERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT CaIPERS ID #1867545551 PERS-CON-702A day of CITY COUNCIL CITY OF NATIONAL CITY BY,,. P'R SIDING OFFICER Witness Dat Attest: Clerk Passed and adopted by the Council of the City of National City, Califomia, on December 6, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California h AA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-259 of the City of National City, California, passed and adopted by the Council of said City on December 6, 2011. City Clerk of the City of National City, California By: Deputy