HomeMy WebLinkAboutPOA MOU July 1 2011 through June 30 2014 - Side Letter - Pension Reform Act 2013SIDE LETTER TO
MEMORANDUM OF UNDERSTANDING
BETWEEN NATIONAL CITY MUNICIPAL EMPLOYEES' ASSOCIATION, SEIU
LOCAL 221 AND THE CITY OF NATIONAL CITY
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Effective January 1, 2013, the City of National City (City) shall comply with the provisions of
Assembly Bill 340: Public Employee Pension Reform Act if 2013.
Consistent with the provisions of Government Code Section 7522.20 (a) and 7522.30, the City
shall establish a third retirement formula for miscellaneous employees represented by the
Municipal Employees' Association (MEA); and a standard of equal cost sharing of the normal
cost of retirement benefits, respectively.
This side letter will serve both as a supplement to Article 18 of the Memorandum of
Understanding (MOU) and as the controlling document for issues related to the retirement
benefits formula and cost sharing methodology for employees hired on or after January 1, 2013.
ARTICLE 18: PUBLIC EMPLOYEES' RETIREMENT SYSTEM
4. Employees hired on or after January 1, 2013:
A. New members to the public retirement system as defined by Government Code Section
7522.10 (fj (1)(2)(3)
a. Shall pay 50% of the normal cost of the defined retirement benefit contribution as
determined by Ca1PERS according to the most recently completed valuation
period.
b. The retirement formula will include 2% at 62 years of age and the "Three Year
Averaging" provision.
B. Existing or "classic" members of the retirement system shall be placed in the same
retirement formula and pay the same reportable compensation to PERS as those
employees hired on or after March 22, 2011.
TENTATIVE AGREEMEN
UNION
EMENT
RESOLUTION NO. 2013 — 13
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
RATIFYING A SIDE LETTER TO ARTICLE 18 OF THE MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY AND
THE NATIONAL CITY MUNICIPAL EMPLOYEES' ASSOCIATION
TO REFLECT THE TERMS AND CONDITIONS OF A THIRD
MISCELLANEOUS RETIREMENT TIER AS LEGISLATED
BY THE EMPLOYEES' PENSION REFORM ACT OF 2013
WHEREAS, on July 19, 2011, the City Council approved Resolution No. 2011-
167, ratifying the wages, hours, and other terms and conditions of employment reached through
a meet and confer process between the City and the National City Municipal Employees'
Association ("MEA"); and
WHEREAS, the action authorized the City Manager to enter into a Memorandum
of Understanding ("MOU") with the MEA for the period July 1, 2011 through June 30, 2014; and
WHEREAS, under the provisions of Assembly Bill 340, Public Employees'
Pension Reform Act of 2013, effective January 1, 2013, the State of California instituted
mandated pension reform for all California public agencies; and
WHEREAS, pursuant to the provisions of Government Code Sections 7522.20(a)
and 7522.30, the City established a third retirement formula for miscellaneous employees
represented by the MEA, and a standard of equal cost sharing of the normal cost of retirement
benefits, respectively; and
WHEREAS, a Side Letter was executed by the MEA and the City of National City
to add Section 4 to Article 18 of the Memorandum of Understanding to reflect the sections of the
reform that impact the retirement formula and retirement contribution of MEA members, as
follows:
ARTICLE 18 — PUBLIC EMPLOYEES' RETIREMENT SYSTEM
4. Employees hired on or after January 1, 2013:
A. New members to the public retirement system as defined
by Government Code Section 7522.10(f)(1)(2)(3):
a. Shall pay 50% of the normal cost of the defined
retirement benefit contribution as determined by
CaIPERS according to the most recently completed
valuation period.
b. The retirement formula will include 2% at 62 years
of age and the "Three Year Averaging" provision.
B. Existing or "classic" members of the retirement system
shall be placed in the same retirement formula and pay the
same reportable compensation to PERS as those
employees hired on or after March 22, 2011.
Resolution No. 2013 — 13
Page Two
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby ratifies a Side Letter amending Article 18, Section 4 of the Memorandum of
Understanding between the City and the National City Municipal Employees' Association to
reflect the terms and conditions of a third retirement tier for Miscellaneous Employees as
legislated by the Public Employees' Pension Reform Act of 2013.
ATTEST:
PASSED and ADOPTED this 5th day of February, 2013.
9
MichZR. Dalla, Ci Clerk
ROVED A 0 FORM:
audia G
City Attorne
n Morrison, Mayor
Passed and adopted by the Council of the City of National City, California, on February
5, 2013 by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
.„..e../jAy
City C rk of the City of ational City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2013-13 of the City of National City, California, passed and adopted
by the Council of said City on February 5, 2013.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
ETING DATE: 02/05/13 AGENDA ITEM NO. '7
ITEM TITLE:
Resolution of the City Council of the City of National City adopting a side letter to Article 18 of the
memorandum of understanding between the City and the National City Municipal Employees' Association,
amending the agreement to reflect the terms and conditions of a third Miscellaneous retirement tier as legislated
by the Public Employee's Pension Reform Act of 2013.
PREPARED BY: Stacey Stevenson
PHONE: 336-4308
EXPLANATION:
DEPARTMENT: Administrative,$ervices/HR
APPROVED BY:
Under the provisions of Assembly Bill 340, Public Employees' Pension Reform Act of 2013, effective January 1,
2013 the State of California instituted mandated pension reform for all California public agencies. The purpose of
this side letter is to add language to Article 18 of the memorandum of understanding between the City and the
Municipal Employees' Association (MEA) to reflect the sections of the reform that impact the retirement formula
and employee retirement contribution of MEA members. Under the terms of a collective bargaining agreement,
MEA represented employees fall into one of two retirement benefit tiers: 3% at age 60 or 2% at age 60 (based on
hire date); and contribute the full 8% or 7% employee share of retirement costs, respectively. Effective January 1,
2013, all new employees that are not currently classified as members of the California Public Employees'
Retirement System (with or without reciprocity) shall be placed in a third retirement tier: 2% at age 62 and
contribute an amount equal to 50% of the normal cost of retirement. Based on the currently available actuarial
•luation, 50% is 6.75%, subject to annual adjustment.
FINANCIAL STATEMENT:
APPROVED: ' �wFinance
ACCOUNT NO. APPROVED:
No financial impact for fiscal year 2013. Employer rate will remain the same (18.334%).
Effective July 1, 2013 the Employer Contribution Rate (ECR) will increase from 18.334% to 21.237% for fiscal year 2014.
Calpers projects ECR to increase to 22..9% and 23.4% in fiscal year 2015 and 2016, respectively.
ENVIRONMENTAL REVIEW:
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
MIS
STAFF RECOMMENDATION:
Approve the resolution, adopting a side letter to Article 18 of the Memorandum of Understanding between the
City and the Municipal Employees' Association
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
1. Side Letter to Article 18 of the Memorandum of Understanding between the City and the Municipal
Employees' Association
2. Council Resolution
\u.
SIDE LETTER TO
MEMORANDUM OF UNDERSTANDING
BETWEEN NATIONAL CITY MUNICIPAL EMPLOYEES' ASSOCIATION, SEIU
LOCAL 221 AND THE CITY OF NATIONAL CITY
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Effective January 1, 2013, the City of National City (City) shall comply with the provisions of
Assembly Bill 340: Public Employee Pension Reform Act if 2013.
Consistent with the provisions of Government Code Section 7522.20 (a) and 7522.30, the City
shall establish a third retirement formula for miscellaneous employees represented by the
Municipal Employees' Association (MEA); and a standard of equal cost sharing of the normal
cost of retirement benefits, respectively.
This side letter will serve both as a supplement to Article 18 of the Memorandum of
Understanding (MOU) and as the controlling document for issues related to the retirement
benefits formula and cost sharing methodology for employees hired on or after January 1, 2013.
ARTICLE 18: PUBLIC EMPLOYEES' RETIREMENT SYSTEM
4. Employees hired on or after January 1, 2013:
A. New members to the public retirement system as defined by Government Code Section
7522.10 (f) (1)(2)(3)
a. Shall pay 50% of the normal cost of the defined retirement benefit contribution as
determined by CalPERS according to the most recently completed valuation
period.
b. The retirement formula will include 2% at 62 years of age and the "Three Year
Averaging" provision.
B. Existing or "classic" members of the retirement system shall be placed in the same
retirement formula and pay the same reportable compensation to PERS as those
employees hired on or after March 22, 2011.
C:::+'—IT—NION
O
TENTATIVE AGREEMEN
EMENT
RESOLUTION NO. 2013 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
RATIFYING A SIDE LETTER TO ARTICLE 18 OF THE MEMORANDUM
OF UNDERSTANDING BETWEEN THE CITY AND
THE NATIONAL CITY MUNICIPAL EMPLOYEES' ASSOCIATION
TO REFLECT THE TERMS AND CONDITIONS OF A THIRD
MISCELLANEOUS RETIREMENT TIER AS LEGISLATED
BY THE EMPLOYEES' PENSION REFORM ACT OF 2013
WHEREAS, on July 19, 2011, the City Council approved Resolution No. 2011-
167, ratifying the wages, hours, and other terms and conditions of employment reached through
a meet and confer process between the City and the National City Municipal Employees'
Association ("MEA"); and
WHEREAS, the action authorized the City Manager to enter into a Memorandum
of Understanding ("MOU") with the MEA for the period July 1, 2011 through June 30, 2014; and
WHEREAS, under the provisions of Assembly Bill 340, Public Employees'
Pension Reform Act of 2013, effective January 1, 2013, the State of California instituted
mandated pension reform for all California public agencies; and
WHEREAS, pursuant to the provisions of Government Code Sections 7522.20(a)
and 7522.30, the City established a third retirement formula for miscellaneous employees
represented by the MEA, and a standard of equal cost sharing of the normal cost of retirement
benefits, respectively; and
WHEREAS, a Side Letter was executed by the MEA and the City of National City
to add Section 4 to Article 18 of the Memorandum of Understanding to reflect the sections of the
reform that impact the retirement formula and retirement contribution of MEA members, as
follows:
ARTICLE 18 — PUBLIC EMPLOYEES' RETIREMENT SYSTEM
4. Employees hired on or after January 1, 2013:
A. New members to the public retirement system as defined
by Government Code Section 7522.10(f)(1)(2)(3):
a. Shall pay 50% of the normal cost of the defined
retirement benefit contribution as determined by
CaIPERS according to the most recently completed
valuation period.
b. The retirement formula will include 2% at 62 years
of age and the "Three Year Averaging" provision.
B. Existing or "classic" members of the retirement system
shall be placed in the same retirement formula and pay the
same reportable compensation to PERS as those
employees hired on or after March 22, 2011.
Resolution No. 2013 —
Page Two
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby ratifies a Side Letter amending Article 18, Section 4 of the Memorandum of
Understanding between the City and the National City Municipal Employees' Association to
reflect the terms and conditions of a third retirement tier for Miscellaneous Employees as
legislated by the Public Employees' Pension Reform Act of 2013.
PASSED and ADOPTED this 5th day of February, 2013.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney
INCORPORATED
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
Michael R. Dalla, CMC - City Clerk
619-336-4228 phone / 619-336-4229 fax
MUNICIPAL EMPLOYEES' ASSOCIATION
(MEA)
Side Letter to MOU
Esther Clemente (City Clerk) Forwarded Copy of
Side Letter to James Slade, MEA President in Engineering