HomeMy WebLinkAbout19 AMEND PERS CONT 04-01-96EN DA___,
DATE:
NO. 19
/ ,,"/ /' 4~_1_96
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Inter-Gom
April 01, 1996
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON,~ CITY MANAGER
PERSONNEL SERVICES
RESOLUTION NO. 96-24 AND ORDINANCE NO. 1166 TO.AMEND CONTRACT WITH PERS
TO ADD MILITARY BUY BACK OPTION
RECOMMENDATION:
That the City Council approve Resolution No. 96-24 to amend its contract with the
Public Employees Retirement System (PERS) to provide the Military Buy Back Option
for all sworn employees, as previously approved by Council on February 20, 1996,
in the Memorandum of Understanding (MOU) with the Tustin Police Officers
Association.
In order to enact the contract amendment with PERS, the City is required to pass an
ordinance authorizing amendment to the City's contract with the Public Employees
Retirement System. Ordinance No. 1166 is presented for approval of the first
reading.
FISCAL IMPACT:
Section 20930.3, Military Service as Public Service allows employees to elect to
purchase up-to four years of service credit for any continuous active military or
merchant marine service prior to employment. The Public Employees Retirement
System does not require a valuation because there is no way of knowing who may
choose to exercise this option; however, citY's cost will emerge in future valuations.
Immediate cost is totally the responsibility of the employee wishing to exercise this
option. Costs to the employee member may exceed $5,000 for each year of military
service and for this reason it is not expected that all who qualify will exercise this
option.
PERS CONTRACT AMENDMENT, MILITARY BUY BACK FOR SWORN
Page 2
DISCUSSION:
We are currently following the necessary procedures as outlined by the Public
Employees Retirement System to implement the contract amendment which was
agreed to in the 1996 Memorandum of Understanding with the Tustin Police officers
Association. The City Attorney has reviewed and approved all forms presented to
Council for approval.
Ordinance No. 1166 will be brought back for the second and final reading at the
council meeting, May 6, 1996, since PERS requires a 20-day lapse between adoption
of the resolution of intent and the adoption of the ordinar~ce.
Bettie Correa.
Senior Personnel Analyst
BMC4:CNCRPTS.MBB
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ORDINANCE NO. 1166
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA AUTHORIZING AN AMENDMENT
TO THE CONTRACT BETWEEN TIlE CITY COUNCIL OF
THE CITY OF TUSTIN AND THE BOARD OF
ADMINISTRATION OF TIlE 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 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 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 6th day of May, 1996.
Jim Potts, Mayor
Pamela Stoker, City Clerk
COPY
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, October 5, 1992, December 28, 1992
and July 6, 1995, which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
Ao
Paragraphs 1 through 13 are hereby stricken from said contract as executed effective July 6,
1995, and hereby replaced by the following paragraphs numbered 1 through 13 inclusive:
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.
.
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:
a. PERSONS COMPENSATED ON AN HOURLY BASIS.
.
.
.
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.
10.
11.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
The percentage of final compensation to be provided for erich 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).
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.
b. Section 20042 (One-Year Final COmpensation) for local police members and
local miscellaneous members only.
Co
Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local police
members only.
Section 21024 (Military Service Credit as Public Service), Statutes of 1976 for
local miscellaneous members only.
Public Agency, in accordance with Government Code SeCtion 20790, ceased to be an
"employer" for purposes of S6ction 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 Boird
as provided in Government Code Section 20834.
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.
Public Agency shall also contribute to said Retirement System as follows:
a. Public Agency shall contribute $9.00' per member, per month on accoUnt of the
liability for the 1959 Survivor Benefits provided under Section 21382.5 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.
b. 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.
Co
'A reasonable amount, as fixed by the Board, payable in one installment as the
occasions arise, to cover the costs of special valuations on acEount of employees
of Public Agency, and costs of the periodic inVestigation and valuations required
by law.
13.
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.
Contributions required of Public Agency and its employees shall be paid by Public
Agency to the Retiremefit 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.
Bo
This amendment shall be effective on the
day of
, 19 .
BOARD OF ADMINISTRATION
PUBL~,~E~MPLOYEES' RETIREMENT SYSTEM
CHIEF ACT~ RY
ACTUARIA~)FFICE
, ~ RETIREMENT SYSTEM·
%
CITY COUNCIL
· OF THE
CITY OF TU~TIN
u¥
Presiding Offl~r ·
Witness Date
Attest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 1/96)
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RESOLUTION 96-24
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE
PUBLIC EMPLOYEE'S 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 procedures 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 21024 (Military Service Credit as Public_
Service) 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 of hereof.
PASSED-AND ADOPTED by the City Council of the City of Tustin at a
regular meeting held on the 1st day of April, 1996.
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Jim Potts, Mayor
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Pamela Stoker, City Clerk
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AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF TUSTIN
COPY
The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board,
and the governing body of above public agency, hereinafter reffrred 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, ~990, October 5, 1992, December 28, 1992
and July 6, 1995, which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
mo
Paragraphs 1 through 13 are hereby stricken from said contract as executed effective July 6,
1995, and hereby replaced by the following paragraphs numbered 1 through 13 inclusive:
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.
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:
Local Fire Fighters (herein referred to as local safety members);
bo
Local Police Officers (herein referred to as local safety members);
Co '
Employees other than local safety members (herein referred to'as local
miscellaneous members).
o
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:
ae
PERSONS COMPENSATED ON AN HOURLY BASIS.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
.
.
.
.
.
10.
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).
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.
b,
Section 20042 (One-Year Final Compensation). for local police members and
local miscellaneous members only.
Co
Section 21382.5 (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 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 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.
Public Agency shall also contribute to sai'd Retirement System as follows:
Public Agency Shall contribute $9.00 per member, per month on account of the
liability for the 1959 Survivor Benefits provided under Section 21382.5 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.
bo
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.
Co
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.
13.
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
accbunt of the experience under the Retirement System as determined by the periodic
investigation and valuation required by said Retirement Law.
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.
Bo
This amendment shall be effective on the
day of ,19
BOARD OF ADMINISTRATION
PUBL~E~MP~LOYEES' RETIREMENT SYSTEM
CHIEF AC~.~ARY
ACTUARIA~FICE
PUBLIC EMPI~EES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF TU~TIN
Presiding Offer
Witness Date .~.
Attest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 1/96)