HomeMy WebLinkAbout13 AMEND TO PERS 02-18-97,' · r
NO. 13
2-18-97
DATE:
FEBRUARY 18, 1997
Inter-Com
TO:
FROM:
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
OFFICE OF THE CITY CLERK
ORDINANCE NO. 1176, AMENDMENT
RETIREMENT SYSTEM CONTRACT
TO PUBLIC EMPLOYEES'
sUMMARY· Final adoption of Ordinance No. 1176 approving a contract
amendment with the Public Employees' Retirement SyStem to add Level Three'
1959 Survivor Benefits Option for all miscellaneous employees.
RECOMMENDATION:
Have second reading by title only and adoption of Ordinance No. 1176 (roll call
vote).
BACKGROUND'
The following Ordinance No. 1176 had first reading and introduction at the January
20, 1997 City Council meeting'
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 AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Valerie Crabill
Chief Deputy City Clerk
1 :ORDMEMO
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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
~he 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 18t:h day of February, 1997.
Tracy Wills Worley, Mayor
Pamela Stoker, 'City Clerk
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
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 wimessed 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:
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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 def'med in the Public Employees' Retirement
Law shall have the meaning as def'med 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.
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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);
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Employees other than local safety members (herein referred to as local
miscellaneous members).
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10.
11.
PLEASE DO. NOT SIGh' "EXHIBIT 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:
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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.
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Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local police
members only.
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Section 21024 (Military Service Credit as Public Service), Statutes of 1976 for
local miscellaneous members and local police members only.
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:
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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.
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Public Agency shall contribute $8.50 per me,,,oer, 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.
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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.
d.
A reasonable amount, as timed 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~i~_. MARZION, CHIEF
ACTUARI~,& EMPLOYER SERVICES DIVISION
PUBLIC EM:P~OYEES' RETIREMENT SYSTEM
AMENDMENT
PERS-CON-702A (Rev. 1/96)
CITY COUNCIL
OF THE
CITY OF TUST'~I~
PRESIDING OFFIC
Witness Date ~
Attest: C~
Clerk '~,~