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HomeMy WebLinkAbout2009 CON CALPERS - AmendmentRESOLUTION NO. 2009 — 291 RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING 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 LOCAL POLICE MEMBERS ENTERING MEMBERSHIP FOR THE FIRST TIME IN THE POLICE CLASSIFICATION 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 provide Section 20475 (Different Level of Benefits): Section 21362.2 (3% @ 50 Full formula) is applicable to only those local police members entering membership in the police classification on or prior to the effective date of this amendment to contract. Section 21363.1 (3% @ 55 Full formula) is applicable to local police members entering membership for the first time in the police 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 its 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 to provide for a 3% @ 55 Full formula benefit for local Police Members entering membership for the first time in the Police Classification, a copy of said amendment being attached hereto as Exhibit "A" and by this reference made a part hereof. Said Amendment to Contract is on file in the office of the City Clerk. ATTEST: PASSED and ADOPTED this 15th day of December, 2009. Ron Morrison, Mayor APPROVED AS TO FORM: Michel R. Della, City Clerk George H. Eiser, III City Attorney Ca1PERS California Public Employees' Retirement System 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 and January 27, 2009 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 15 are hereby stricken from said contract as executed effective January 27, 2009, and hereby replaced by the following paragraphs numbered 1 through 17 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; age 50 for local fire members; age 50 for local police members entering membership in the police classification on or prior to the effective date of this amendment to contract; and age 55 for local police members entering membership for the first time in the police 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 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. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CalPERS) and its trustees, agents and employees, the CalPERS 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-CaIPERS 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 CalPERS 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. (d) Public Agency's election to 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 CalPERS 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 CalPERS' Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) 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 members (herein referred to as local miscellaneous members). 5. 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 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. 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 May 20, 2008. 8. The percentage of final compensation to be provided for 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). 9. 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 shall be determined in accordance with Section 21354.3 of said Retirement Law (3% at age 60 Full). 10. The percentage of final compensation to be provided for each year of credited prior and current service as a local fire member and for those local police members entering membership in the police 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). 11. The percentage of final compensation to be provided for each year of credited current service as a local police member entering membership for the first time in the police 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). 12. 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 - 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 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). Section 20475 (Different Level of Benefits). Section 21362.2 (3% @ 50 Full Formula) is applicable to only those local police members entering membership in the police classification on or prior to the effective date of this amendment to contract. Section 21363.1 (3% @ 55 Full Formula) is applicable to local police members entering membership for the first time in the police classification after the effective date of this amendment to contract. 13. 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. 14. 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. 15. 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. 16. 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. 17. 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 Tess 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 184' day of MCA f , 2o10 . BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NATIONAL CITY BY m-' • —t`—. LO CGARTLAND, CHIEF EMPLOYEWSERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT ER# 190 PERS-CON-702A PRESIDING OFFICER MAQcI4 2, 2010 Witness Date Attest: Passed and adopted by the Council of the City of National City, California, on December 15, 2009 by the following vote, to -wit: Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California A �L City Jerk of the City f National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2009-291 of the City of National City, California, passed and adopted by the Council of said City on December 15, 2009. City Clerk of the City of National City, California By: Deputy Ca1PERS Actuarial & Employer Services Branch P.O. Box 942709 Sacramento, CA 94229-2709 Telecommunications Device for the Deaf - (916) 795-3240 (888) CaIPERS (225-7377) FAX (916) 795-3005 March 25, 2010 Ms. Stacey Stevenson Human Resources Director City of National City 140 E. 12th Street, Suite A National City, CA 91950 Dear Ms. Stevenson: HUMAN;1 ', `'u.'"` t'tf nIRCES DEPARIMEN7 Employer Code #0190 Reply to Section 125 The contract amendment has been executed CaIPERS. The effective date of the contract amendment is March 18, 2010. C'}�o�; Ce - 3 !o e F.;5) If you have any questions regarding your contract, please do not hesitate to contact our office at (888) CaIPERS (225-7377). Sincerely, Retirement Contract Services DB:pm Enclosure California Public Employees' Retirement System www.calpers.ca.gov C ao0 t • 2 City of National City, California COUNCIL AGENDA STATEMENT EETING DATES 12-15-09 AGENDA ITEM NO. 9 / ITEM TITLE Resolution of Intention of the City of National City to Approve an Amendment to the Contract / Between the Board of Administration California Public Employees' Retirement System and the City Council of the City of National City to Provide for a 3% @ 55 Full Formula Benefit for Local Police Members Entering Membership for the First Time in the Police Classification - ARE : 'y 4groev 'son (336-4308) • DEPARTMENT Human Resources EXPLANATION As provided for in the current agreement between the City of National City and Ca1PERS, City of National City employees working in designated police classifications have a retirement formula of 3% @ 50 (Section 21362.2). Under the terms of the current Memorandum of Understanding between the City and the Police Officers' Association, individuals hired into the City's police classifications for the first time will not receive the benefit of the 3% @ 50 formula (Section 21363.1). Instead such new hires will receive a benefit of 3% @ 55. Such a change is allowable under Section 20475 (Different Level of Benefits). Environmental Review ✓ N/A Financial Statement Account No. STAFF RECOMMENDATION Recommend approval of resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution No. 'a o o q - a 0. Resolution A-200 (9/80)