HomeMy WebLinkAboutC.C. 14 AMEND PERS 02-18-92CONSENT CALENDAR NO. 14
2-18-92
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?ATE: FEBRUARY 11, 1992
TO: WILLIAM A. HUSTON, CITY MANAGER
FROM: ADMINISTRATIVE SERVICES DEPARTMENT
SUBJECT: RESOLUTION NO. 92-31--A RESOLUTION OF INTENTION TO AMEND
PERS CONTRACT FOR NON -MANAGEMENT SWORN EMPLOYEES.
RECOMMENDATION:
That City Council adopt Resolution No. 92-31.
BACKGROUND:
In December of 1990 the City Council unanimously approved the
Memorandum of Understanding with Tustin Police Officers
Association. The provision relating to retirement states,
"Effective October 1, 1992, the City shall amend its contract with
PERS so as to provide to each employee covered by this agreement
all of the retirement benefits currently provided to management
peace officers of the City of Tustin, including the two (2%) at age
fifty (50) retirement formula as set forth in Section 21252.01 of
the California Government Code and the 'single highest year final
compensation formula' as set forth in Section 20024.2 of the
California Government Code. At the same time, the City shall 'pick
up' the increased share of the employee's required contribution to
PERS so that the City's total 'pickup' of required employee
contributions shall equal nine percent (9%) of the employee's
'compensation earnable'."
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. At
the next Council meeting an Ordinance which finalizes the action
will be introduced.
Government Code, Section 20461.51 requires an election by secret
ballot among the employees affected whenever an employer amends its
contract to provide a benefit which changes the employee's rate of
contribution. The sworn members of non -management staff fall into
this category, since their contribution will increase from 7 to 9
per cent. Such a ballot was taken and a majority of the employees
voted in favor of amendment.
Page 2
Government Code, Section 7507, requires the governing body to make
public the cost implication of the proposed contract at a public
meeting. For local safety members, the rate for the agency without
the optional benefit is 16.70%. The new rate is 28.382%, thus the
change in cost of the optional benefit is 11.682%, (28.382%-
16.70%) .
Applying this percentage to the most current payroll figures for
the next 12 months equals $474,986. This percentage increase is
the projected actuarial rate to the year 2000, but, as the contract
reads, the employer rate is subject to change with future
amendments and/or experience or other factors.
Bettie Correa, Acting Director
Community and Administrative Services
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Attachments: Resolution No. 92-31
Sample Contract Amendment
BMC:RS92-31.RPT
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RESOLUTION NO. 92-31
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 the 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 2% @ 50 Full formula (from 1/2 @ 55 Full
formula) and Section 20024.2 (One -Year Final
Compensation) for local police members only, 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 18th day of February, 1992.
Mary E. Wynn, City Clerk
Charles E. Puckett, Mayor
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 and February 26, 1990, which provides for participation
of Public Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective February
26, 1990, 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.
#LEASE DO NOT SIGN `EXHIBIT ONL101
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 miscellaneous
members and local police members.
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 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 be etive on the day of
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BOARD OF ADMINISTRATION i CITY COUNCIL
PUBLIC EMPLOYEES' RETIRRIENT SYSTEM OF THE
CITY OF TUSTIN
BY
CHIEF, CONTRA ERVICES DIVISION
PUBLIC EMPLC *ES' RETIREMENT SYSTEM
PERS-CON-702 (AMENDMENT)
(Rev. 3/91)
BY
Presiding Officer
rt.
Witness Date 0
Attest:
Clerk