HomeMy WebLinkAbout10 PERS AMEND TMEA MOU 01-20-97DATE:
Inter-Com
NO. 10
1-20-97
JANUARY 13, 1996
TO:
FROM:
sUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
PERSONNEL SERVICES
AMEND CONTRACT WITH PERS-APPROVE RESOLUTION 97-2 AND ORDINANCE 1176
RECOMMENDATION:
That the City Council approve Resolution No. 97-2 to amend its contract with the
Public Employees Retirement System (PERS) to add the Level Three 1959 Survivor
Benefits Option for all miscellaneous employees, as previously approved by Council
on January 31, 1995, in the Memorandum of Understanding (MOU) with the Tustin
Municipal Employees Association.
In order to enact the contract amendment with PERS, the City is required to pass an
ordinance authorizing an amendment to the City's contract with the Public Employees
Retirement System. Ordinance No. 1176 is presented for approval of the first
reading.
FISCAL IMPACT:
The City will be required to contribute $1.50 per member, per month on account of
the liability for the 1959 Survivor Benefits provided under Section 21573 of the Public
Employees Retirement Law. There are 158 employees currently eligible to participate
in this benefit with a possible total annual starting cost of $2,844.00 per year. All
those eligible may not elect to participate, however, new employees entering
employment and covered as miscellaneous members under PERS will be added so the
cost is expected to increase over time. In addition, all assets and liabilities of the City
of Tustin and its employees shall be pooled in a single account, based on term
insurance rates, for survivors of all local miscellaneous members.
Employees covered by the 1959 Survivor Benefits contribute $2.00 per month. All
eligible employees are given the opportunity to elect or reject this option.
DISCUSSION:
This contract amendment was delayed due to other amendments to the City's PERS
contract which were implemented first. We are currently following the necessary
procedures as outlined by the Public Employees Retirement System to implement the
contract amendment which was agreed to January, 1995, when the last
Memorandum of Understanding with the Tustin Municipal Employees Association was
adopted.
Ordinance No.1176 will be brought back for the second and final reading at the
meeting scheduled for February 18, 1997.
Bettie Correa
Senior Personnel Analyst
BMCS:CNCRPT59.MIS
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RESOLUTION 97-2
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 21373 (Third Level of 1959 Survivor
Benefits) for local miscellaneous 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 20th day of January, 1997.
Tracy Wills Worley, Mayor
Pamela Stoker, City Clerk
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OFTHE
PUBLIC EMPLOYEES~ RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF TUSTIN
EXHIBIT
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,
July 6, 1995, April 5, 1996 and June 6, 1996, 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 June 6,
1996, 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);
C.
.Employees other than local safety members (herein referred to as local
miscellaneous members).
o
.
,
.
.
.
10.
11.
PLEASE DO NOT SIGI' '"'."
,,, ,,:,i l :....ONLY
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 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:
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.
C.
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 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 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:
ae
Public Agency shall contribute $1.50 per member, per month on account of
the liability for 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.
b.
Public Agency shall contribute $8.50 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.
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.
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.
This amendment shall be effective on the
day of ,19
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY 0...
KENNETH W. ~ION, CHIEF
ACTUARIAL & E~YER SERVICES DIVISION
PUBLIC EMPLOYEES~TIREMENT SYSTEM
AMENDMENT
PERS-CON-702A (Rev. 1/96)
CITY COUNCIL
OF THE
CITY OF TUS'O~
BY
PRESIDING OFFI
Witness Date
Attest:
Clerk
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ORDINANCE NO. 1176
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 "A", 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 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 20th day of January, 1997.
Tracy Wills Worley, Mayor
Pamela Stoker, City Clerk
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COUNCIL
OF THE
CITY OF TUSTIN
EXHIB IT
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,
July 6, 1995, April 5, '1996 and June 6, 1996, 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 June 6,
1996, 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).
PLEASE DO NOT SIGN '"" iBIT. ONLY"
.
.
.
,
o
.
10.
11.
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 f'mal 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 f'mal compensation to be provided for each year of credited prior and
current service as a local fh'e 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 fn:e members
only.
b.
Section 20042 (One-Year Final Compensation) for local police members and
local miscellaneous members only.
Ce
Section 21382.5 (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.
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 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:
ae
Public Agency shall contribute $1.50 per member, per month on account of
the liability for 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.
b.
Public Agency shall contribute $8.50 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.
C.
A reasonable amount, as fLxed 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
employee and the Board.
This amendment shall be effective on the
day of ,19
BOARD OF ADMINISTRATION
PUBLI~C EMPLOYEES' RETIREMENT SYSTEM
BY ~_ '
KENNE~,4~f. MARZION, CHIEF
ACTUARI~& EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT
PERS-CON-702A (Rev. 1/96)
CITY COUNCIL
OF THE
CITY OF TUST"°I~
PRESIDING OFFI
Witness Date
Attest:
Clerk