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Home My WebLink About12 PERS AMENDMENT 01-22-02AGENDA REPORT NO. 12 01-22-02 520-60 TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER OFFICE OF THE CITY CLERK ORDINANCE NO. 1248- PUBLIC EMPLOYEES' RETIREMENT SYSTEM CONTRACT AMENDMENT 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 Have second reading by title only and adoption of Ordinance No. 1248 (roll call vote). BACKGROUND At the January 7, 2002 City Council meeting, the following Ordinance No. 1248 had first reading by title only and introduction: 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 Chief Deputy Ci Clerk b.cm.Ordinance No. 1248 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 '. "day of January, 2002. Attest: Jeffery M. Thomas, Mayor City Clerk S:\City Council Agenda Items~2002\PERS CONTRACT AMENDMENT 59 ACT ORDINANCE 1248.htm CalPERS California Public Employees' Retirement System EXHIBIT AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council C~ty of Tusfin 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' Al 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); Co 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. b. Section 20042 (One-Year Final Compensation) for local police members and local miscellaneous members only. Co Section 21574 (Fourth Level of 1959 Survivor Benefits) for local police members only. do 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. . 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 KENNETH W. MARZION, ~~F' ACTUARIAL & EMPLOY~'"~ERVICES DIVISION PUBLIC EMPLOYEES'.~IREMENT SYSTEM PRESIDING OFFIC~~2¥' Witness ~ Attest:' Clerk AMENDMENT PERS-CON-702A (Rev. 8\96)