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Home My WebLink About05 AMEND PERS CONT. 07-06-92'ONSENT CALENDAR NO. 5 AGENDA�] Q� 7-6-92 Y uATE: JUNE 169 1992 Inter -Com �C ,V ) TO: WILLIAM A. HUSTON, CITY MANAGER FROM: ADMINISTRATIVE SERVICES DEPARTMENT SUBJECT: RESOLUTION NO. 9248--A RESOLUTION OF INTENTION TO AMEND PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) CONTRACT RECOMMENDATION: That the City Council adopt Resolution No. 92-48. BACKGROUND: In February of 1990 the City Council approved the current Memorandum of Understanding with Tustin Municipal Employees Association (TMEA). This three-year contract states: "Effective December 31, 1992, the City shall amend its contract with the Public Employees' Retirement System (PERS) to provide `single highest year."' The `single highest year' final compensation formula is set forth in Section 20024.2 of the California Government Code. Since that time, City staff has been working with the staff at PERS to ensure that all the required procedures take place on schedule. It is now appropriate to proceed with the Resolution of Intent. The City Council adopted Ordinance 1081 in March 1992; Ordinance 1081 addressed both the contract amendments for Tustin Police Officers Association (TPOA), which has been executed, and this revision for TMEA. California Government Code, Section 7507, requires the governing body to make public the cost implication of the proposed contract at a public meeting. For local miscellaneous members, the rate for the agency without the optional benefit is 6.959 percent. Effective July 1, 1994, the new rate will be 7.629 percent; thus, the change in cost of the optional benefit is .670 percent (7.629 percent less 6.959 percent). Pursuant to Government Code, Section 7507, the projected yearly cost will be $32,575. This increase is based on the actuarial rate forecast to the year 2011; however, as the contract reads, the employer rate is subject to change with future amendments, experience, and/or other factors. Royleen A. White, Director Community and Administrative Services Attachments: Resolution No. 92-48 Sample Contract Amendment rxs:Ksm-aa.rpc 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 81I 1 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 92-48 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE 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 procedure to amend this contract is the adoption by 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 20024.2 (One Year Final Compensation for local miscellaneous members, including an extension of the funding period to the year 2011. 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 the said governing body 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. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Tustin, California, held on the 6th day of July, 1992. Mary E. Wynn, City Clerk Leslie Anne Pontius, Mayor coo AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF TUSTIN The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and October 5, 1992, 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 contract as executed effective October 5, 1992, and hereby replaced by the following paragraphs numbered 1 through 13 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 55 for local fire members and age 50 for local police members. 2. 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. 3. 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). 4. 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. PERSON COMPENSATED ON AN HOURLY BASIS. POSE D0 NOT SIGN "EXHI 8JT ON(Y"` 5. 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 21251.13 of said Retirement Law (2% at age 60 Full). 6. 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 21252.1 of said Retirement Law (One-half pay at age 55 Full). 7. 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 21252.01 of said Retirement Law (2% at age 50 Full). 8. Public Agency elected to be subject to the following optional provisions: a. Sections 21380-21387 (1959 Survivor Benefits) excluding Section 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 (Third Level of 1959 Survivor Benefits) for local safety members. b. Section_20024.2 (One -Year Final Compensation) for local police members and local miscellaneous members only. 9. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 20759 effective on June 18, 1979. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 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. 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. b. 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 subkequent remittances. Adjustments on account of errors in contributions required of ar , mployee may be made by direct payments between the employee and the Board. O� B. This amendment shall be ective on the day of ,19 BOARD OF ADMINISTRATI CITY COUNCIL .� PUBLIC EMPLOYEES' RE MENT SYSTEM OF THE .� 41 CITY OF TUSTIN O BY is BY CHIEF, CON.TgWCT SERVICES DIVISION Presiding Officer PUBLIC EM YEES' RETIREMENT SYSTEM X41 Witness Date 4Q Attest: Q Clerk PERS-CON-702 (AMENDMENT) (Rev. 3/91)