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Home My WebLink About13 2% AT 55 AMEND 10-18-99NO. 13 10-18-99 DATE' OCTOBER 18, 1999 TO: FROM' SUBJECT: WILLIAM A. HUSTON, cITY MANAGER OFFICE OF THE CITY CLERK ORDINANCE NO. 1221, 2% AT 55 CONTRACT AMENDMENT SUMMARY: Proposed Ordinance No. 1221 will amend the City's contract with the Public Employees Retirement System to proVide a 2% at 55 retirement formula for miscellaneous City employees. RECOMMENDATION' Have second reading by title only and adoption of Ordinance No. 1221 (roll call vote). BACKGROUND: The following Ordinance No. 1221 had first reading and September 20, 1999 City Council meeting: introdu.ction at the ORDINANCE NO. 1221 - 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 ADMI.NISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM Valerie Crabill Chief Deputy City Clerk ':MEMOORD ORDINANCE NO.1221 4 5 6 7 8 9 10 11 12 13 14 15 16 18 19 2O 21 22 ~.3 24 25 26 27 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 hereby 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 the the City of Tustin. Section 3. This ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of thirty (30) days from the passage thereof shall be published at least once in The Tustin Weekly, a newspaper of general circulation, published and circulated in. tile 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 18th day of October, 1999. TRACY WILLS WORLEY, Mayor PAM STOKER, City Clerk CalPERS California Public Employees' Retirement System EXHIBIT 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 28, 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, and March 28, 1997 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: Ao Paragraphs I through 13 are hereby stricken from said contract as executed effective March 28, 1997, 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 fire members; and, age 50 for local police members. PLEASE DO , o . o o . o 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. 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); 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: ao 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 Retirgment 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: . 10. 11. PLEASE DO tOT SIGI' "EXHIBIT' ao 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. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976 for local miscellaneous members and local police members only. e. Section 21573 (Third Level of 1959 Survivor Benefits) for local' miscellaneous 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. Public Agency shall contribu, te 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. Public Agency shall also contribute to said Retirement Syste .m 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. b° 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. Co 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. do 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 employee and the Board. B. This amendment shall ~_~effective on the~ BOARD OF ADMINISTRA~-~N PUBLIC EMPLOYEES..'%,I~IREMENT SYSTEM KENNETH W.~I~'I~ZION, CHIEF ACTUARIA./~.~'EMPLOYER SERVICES DIVISION PUBL,CEI~C"LOYEES' RET, REMENT SYSTEM day of ,19__ CITY COUNCIL CITY OF TUSTIN ' PRESIDING ~(~I~'C E R Witness Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 8\96)