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Home My WebLink About15 PERS SURVIVOR BEN. 01-07-02AGENDA REPORT NO. 15 ,o 'o?-o2 MEETING DATE: TO: FROM: JANUARY 7, 2002 WILLIAM A. HUSTON, CITY MANAGER HUMAN RESOURCES DEPARTMENT 520-60 SUBJECT: PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT AMENDMENT SECTION 21583- ADDITIONAL OPPORTUNITY TO ELECT 1'959 SURVIVOR BENEFITS FOR LOCAL POLICE MEMBERS ONLY SUMMARY: To enable eligible police employees an additional opportunity to elect 1959 Survivor Benefits the City is required to amend its contract with the Public Employees' Retirement System (PERS). RECOMMENDATION: · Adopt Resolution 02-01 providing notice of intent to approve an amendment to the City's contract with the PERS for local police members which will allow an additional opportunity for eligible employees to elect the 1959 Survivor Benefits. . Conduct first reading of Ordinance No. 1248 as required to amend the contract. FISCAL IMPACT: None- Cost is paid by the employee. BACKGROUND AND DISCUSSION: In July of 1995, the City amended its contract with PERS to provide the 4th Level of 1959 Survivor Benefits, Section 21574, for local police members. The 4th level of 1959 Survivor Benefits provides a higher level of 1959 Survivor Benefits to survivors of a member who dies prior to retirement. A spouse is eligible, until remarriage, if he: or she (1) has care of eligible children, or (2) is age 60 or older. Children are eligible if under age 22 and unmarried. The monthly allowance payable to eligible survivors under Section 21574 is as follows: Spouse with two or more eligible children; or three or more eligible children only, $2,290; spouse with one eligible child; or two eligible children only, $1,900; one eligible child only or surviving spouse at age 60 or older until remarriage, or dependent parents, $950. S:\City Council Agenda Items~002\1959 Contract Amendment.doc City Council Agenda January 7, 2002 Page 2 Public agencies may amend its contract with PERS to allow eligible employees an additional opportunity to elect the 1959 Survivor Benefits pursuant to Section 21583 of the Government Code. Amending our contract pursuant to Section 21583 allows those members eligible to participate in the original election, and who elected not to be covered by the 1959 Survivor Benefits, to have the opportunity to now elect to be covered by the 1959 Survivor Benefits. The effective date of coverage will be the date the member first became eligible for the 1959 Survivor Benefits. The cost of this amendment is funded solely by the employee who is required to pay $2.00 monthly, plus $2.00 for every month from the date of original eligibility. As such, no budget adjustment is necessary. Arlene Marks, SPHR Director of Human Resources Attachments: Resolution No. 02-01 Ordinance No. 1243 Exhibit- Amendment to Contract S:\City Council Agenda Items~2002\1959 Contract Amendment.doc l0 14 l? 20 21 22 23 24 25 26 2? 28 29 RESOLUTION NO. 02-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF TUSTIN 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 of 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 21583 (Additional Opportunity to Elect 1959 Survivor Benefits) for local police members only. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency 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. By: JEFFERY M. THOMAS, MAYOR ATTEST: City Clerk S:\City Council Agenda Items\2002\Reso 02-01.DOC ORDINANCE NO. 1248 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF TUSTIN AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM THE CITY COUNCIL OF THE CITY OF TUSTIN ORDAINS AS FOLLOWS' SECTION 1. That an amendment to the contract between the City Council of the City of Tustin and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of' said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. This ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Tustin News, a newspaper of general circulation, published and circulated in the City of Tustin and thenceforth and thereafter the same shall be in full force and effect. PASSED AND ADOPTED at a regular meeting of the City Council for the City of Tustin on this 7th day of January, 2002. Jeffery M. Thomas, Mayor Attest' City Clerk S:\City Council Agenda Items\2002\PERS CONTRACT AMENDMENT 59 ACT ORDINANCE 1248.htm CalPERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Tustin 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 August 1, 1967, and witnessed June 28, 1967, and as amended effective October 1, 1969, June 18, 1979, December 29, 1980, February 26, 1990, October 5, 1992, December 28, 1992, July 6, 1995, April 5, 1996, June 6, 1996, March 28, 1997 and December 31, 1999 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A, Paragraphs 1 through 13 are hereby stricken from said (;;ontract as executed effective December 31, 1999, and hereby replaced by the following paragraphs numbered 1 through 13 inclusive' o 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 55 for local miscellaneous members and age 55 for local .safety members. , Public Agency shall participate in the Public Employees' Retirement System from and after August 1, 1967 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. PLEASE DO NOT SIGN "EXHIBIT ONLY" ,, . . ,. ,. . 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: ao 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). 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: a. PERSONS COMPENSATED ON AN HOURLY BASIS. 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 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 fire member shall be determined in accordance with Section 21366 of said Retirement Law (One-half pay at age 55 Full). 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). Public Agency' elected and elects to be subject to the following optional provisions' a, Section 21571 (Basic Level of 1959 Survivor Benefits) for local fire members only. bo Section 20042 (One-Year Final Compensation) for local police members and local miscellaneous members only. C,, Section 21574 (Fourth Level of 1959 Survivor Benefits) for local police members only. d, Section 21024 (Military Service Credit as Public Service), Statutes of 1976 for local miscellaneous members and local police members only. ?LEASE DO NOT SIGN "EXHIBIT ONLY" e. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. f Section 21583 (Additional Opportunity to Elect 1959 Survivor Benefits) for local police members only. 9~ Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on June 18, 1979. 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. 10. 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. 11. 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. bo Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 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 police members. C, 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. d, 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. 12. 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. 13. 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 empl,eyee and the Board. B. This amendment shall be effecti~:~n the ___ day of BOARD OF ADMINISTRATION ..~~'~ CITY COUNCIL PUBLIC EMPLOYEES' RETIRE~T SYSTEM CITY OF TUSTIN BY .~~' BY KENNETH W. MARZION, ~:~F PRESIDING OFFIC~:~ ACTUARIAL & EMPLOY~"~ERVICES DIVISION ~ PUBLIC EMPLOYEES'.~~IREMENT SYSTEM Clerk AMENDMENT PERS-CON-702A (Rev. 8\96)