Loading...
HomeMy WebLinkAbout21 AMEND PERS CONT 05-01-95AGENDA NO. 21 5-1-95 ,ATE: APRIL 25, 1995 Inter-Com TO: FROM: SUBJECT: WILUAM A. HUSTON, CITY MANAGER PERSONNEL SERVICES AMEND CONTRACT WITH PERS -APPROVE RESOLUTION 95-46, ORDINANCE 1151 AND AGREEMENT TO RELEASE FUNDS INTO THE 1959 BENEFIT POOL. RECOMMENDATION: That the City Council approve Resolution No. 95-46 to amend its contract with the Public Employees Retirement System (PERS) to provide the Fourth Level of 1959 Survivor Benefits for all sworn employees, as previously approved by Council on January 31, 1995, in the Memorandum of Understanding (MOU) with the Tustin Police Officers Association. In addition, the City Council should approve the agreement authorizing the release of 1959 Survivor Benefit Assets and Liabilities. This agreement will acknowledge that public agenCies subject to Section 21382.5 will have all assets and liabilities pooled into a single account based on term insurance rates, for local police members. 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. 1151 is presented for approval of the first reading. FISCAL IMPACT: The employer cost for this benefit is currently $8.00 per month per covered member. The amount is scheduled to be increased to $9.00 per month per covered member effective July 1, 1995. Because the City currently has a surplus in the current 1959 Survivor Benefit Plan, that surplus can be used to defer any cost to the city for approximately seven years. After the surplus is used,the cost will be approximately $9,000 per year (assuming current staffing levels). TO: FROM: WILLIAM A. HUSTON BETTIE CORREA 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 last January when the current Memorandum of Understanding with the Tustin Police Officers Association was adopted. The City Attorney has reviewed and approved all forms presented to Council for approval. Ordinance No. 1151 will be brought back for the second and final reading at the next council meeting, May 15, 1995. Bettie Correa Senior Personnel Analyst BMC3:CNCRPTAM.PER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 RESOLUTION 95--~ RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN TttE BOARD OF AD1VHNIS~~ON 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 21382.5 (Fourth Level of 1959 Survivor Benefits) pursuant to Article 6 (commencing with Section 21380 of the Government Code) 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 May, 1995. 24 25 Jim Potts, Mayor 26 27 Mary E. Wynn, City Clerk 28 PUBLIC EMPLOYEES' RETIREMENT SYSTEM Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted' by the City Council of the City of Tustin on May 1st, 1995. Mary Wynn, City Clerk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 29. 23 24 25 26 27 28 AGREEMENT AUTHORIZING THE RELEASE OF 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES INTO THE FOURTH LEVEL 1959 SURVIVOR BENEFIT POOL BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF TUSTIN WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of all contracting agencies on account of benefits provided under Article 6, commencing with Section 21380; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Tusfin and its covered employees, on account of the benefits provided under Article 6, commencing with Section 21380, shall be pooled pursuant to the provisions of Government Code Section 21382.5. Board of Administration Public Employees' Retirement System City Council of the City of Tusfin BY Chief Acturary Actuarial Office Public Employees' Retirement System BY Jim Potts, Mayor Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 ORDINANCE NO. 1151 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 Tusfin 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 Tusfin. 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 fi.om 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 15th day of May, 1995. Jim Potts, Mayor Mary Wynn, City Clerk AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYI~F$' RETIREMENT SYSTEM 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 October 1, 1969, and as amended effective October 1, 1969, June 18, 1979, December 29, 1980, February 26, 1990, October 5, 1992 and December 28, 1992, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: ho Paragraphs 1 through 13 are hereby stricken from said contract as executed effective December 28, 1992, and hereby replaced by the following paragraphs numbered 1 through 13 inclusive: le 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); 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. i I. EASE DO NOT SIGN' "'EXHIBIT ONLY# . . . . . 10. 11. 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 21252.1 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 asa local police member shall be determined in accordance with Section 21252.01 of said Retirement Law (2% at age 50 Full). Public Agency elected and elects to be subject to the following optional provisions: a, bo c. Section 21382 (Basic Level of 1959 Survivor Benefits) pursuant to Article 6 (commencing with Section 21380) for local fire members. Section 20024.2 (One-Year Final Compensation) for local police members and local miscellaneous members only. Section 21382.5 (Fourth Level of 1959 Survivor Benefits) pursuant to Article 6 (commencing with Section 21380) for local police members only. 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. 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 $8.00 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. 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. 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 effective on the PUBLIC EMPLOYE]~' RETIREMENT SYSTEM BY CHIEF ACTUARY '//~ ACTUARIAL OFFICE ~~O/~ PUBLIC EMPLOYEES' RETIRE YSTEM day of ,19 CITY COUNCIL OF THE CITY OF TUSTIN .-O Presiding Officer Witness Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 3/95) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify ~that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting of the .City of Tustin, governing body, of the City of Tustin on May 1, 1995 which is at least two weeks prior to the adoption of the Ordinance. Mary Wynn, City Clerk Date: