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HomeMy WebLinkAboutCC 5 PERS AMENDMENT 09-02-80DATE: August 26, 1980 CONSENT CALENDAR Inter-Com TO: FROH: SUBJECT: Dan Blanken~hlp, Loni Hamblin, Acting Finance Director PERS AMENDMENT The appropriate documents from PERS have been received to proceed with the amendment to our PERS contract regarding 1959 Survivors Benefits. At the meeting of September 2, 1980 Council should adopt Resolution #80-92 which formalizes our intent to amend the contract and is required by PERS. A specimen copy of the contract amendment is attached as required by PERS. The following statement must be publicly read by the Mayor to satisfy the requirement of public notice of a change in PERS rate: -*T~--e-PERS rate for t~ City of Tustin without this optional benefit is 11.992% of payroll. The new rate is 12.492% of payroll. Thus the change in cost of the optional benefit is 0.500%. Based on the payroll data for safety employees for the period ending 8/10/80, the estimated cost over the next 12 months will be $5,187.26. This per- centage increase will apply to all member payrolls covered by these benefits until the year 2000. After the Council has adopted the Resoluti6n of Intention the safety employees presently employed by the City must be given the option to elect whether or not they individually desire this coverage. Safety employees.hired aftgr January 1, 1981 automatically~participate. After all present safet~~ employees are polled and the balloting completed a certified copy of the minutes, which reflect the adoption of the Resolution of Intent, the statement certifying the public notice requirement and a certified listing of present safety employees both desiring or declining the benefit must be forwarded to PERS. PERS will prepare an ordinance for the Council to adopt the amendment to the PERS contract. Recommended Action It is recommended that the City Council approve the attached PERS Resolution of Intent No. 80-92 which will initiate August 26, 1980 PERS Amendment Page two the process to implement the 1959 Survivors Benefit for safety employees by January 1, 1980, as agreed upon in negotiations. The City Clerk is to agendize approval of this final amend- ment to the PERS contract for the November 17, 1980 City Council meeting. ~o.ni Hamblin Acting Finance Director · RESOLUTION 80-92 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD 07 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 public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which sai~ public agencies may elect to subject them- selves 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 legislative body of the public agency of a resolu- tion 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 Sections 21380-21388 (1959 Survivors Program), for local safety members. NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency gives, and it 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. (NAME) (TITLE) (Date adopted and approved) Ret. Form 122 BOARD (~ ADNi_.'~iE~:~',,'..~ PUBLIC ~n'--~"-,' r ........ CITY OF The Board of Administration, Public :ltd:} 'yyeea. ~ ......... ¢',.('tem, herein- after referred to as Board, and the govern:nS bcdj cf above public agency, hereinafter referred to as Public Agency, '~'~'m.~.~ a. ........ c_..~.,'s, i~,:to a' contract under date of June 28, ~967, effective Au~s~ I; 1967, and s? amended effective October ~ , J969, and June iS, 1979, which r~rovido~ for p~:rtic±pation of Public Agency in said System, Board a_~_d Public AL:ray her;:%y agree as follows: Paragraphs 1 through 10 are hereby stricken fro~~ said contract as executed effective June 18, ~979, and hereby r~clnced by the following paragraphs numbered 1 through 10 inclusive: 'All words and terms used herein which are defined in the Public Employees Retirement Law shall have the. ',~o~'n:, as defined therein unless othez-.{ise specifically provided. "Nora. mi retirement age" shall mean age 60 for locsl misce].lanecus and age 55 for local safety members. Public Agency shall participate in the Public Employees' Retirement System from and after August 1, !967 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 e>~cept such as by express provisions thereof apply only on the election of contracting agencies· J Employees of Public Agency in the following classes shall become members of said Retirement System except s~ch in each such class as are excluded by law or this agreement: a. Local Firemen (herein referred to as local safety members); b. Local Policemen (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: PERSONS CO ...... o~=D AN HOURLY BAS~S. The fraction of final compensation %o be provided fo~' each year credited prior and current service as a local miscellaneous shall be determined in accordance with Section 2~251.13 of Retirement L~ (2% at age 60). The fraction of final compensation to be provided for each yea~' ~f credited prior and current service as a local safety ~emb~r zh~! be determined in ~ccordance with Section 21252.1 of said Retiremsn~ Law (One-half pay at age 55). The following additional provisiona of the Public En~ployeos Retire- ment Law which apply only upon election of a contracting agency shall apply, to the Public Agency and its employees: a. Section 20952.5 (Age 50 voluntary retirement) for local s~fety members only. Section 20983.6 (Waiver of ~ge 70 retirement) for local miscel- laneous members only. Sections 21380-21388 (1959 Survivors Program), for local safety members. ~blic Agency, in accordance with Section 20740, Government Code, ceased to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective on June 18, 1979. Accumulated contributions of Public Agency as cf the aforementioned date shall be fixed and determined as provided in Section 20759, Government Code, and accumulated contributions as of the aforementioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. Public Agency shall contribute to said Retirement System as follows: With respect to miscellaneous members, the agency shall con- tribute the following percentages of monthly salaries earned as miscellaneous members of said Retirement System: (1) 0.313 percent until June 30, 2000 on &ccount of the liability for'prior service benefits. (2) percent on a'Ccount of the liability for current 9.221 service benefits. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement System: (1) 0.938 percent until June 30, 1987 on account of the liability for prior service benefits. (2) 11.554 percent on account of the liability for current service benefits. Ce A reasonable amount per annum, as fixed by the Board to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special Yaluatio~'~s or of the periodic investigation and valuations required by law. A reasonable ~' ~ fi×ed amount, as by the Board, payable iD one install- ment as the occasions arise, to cover the costs of sp¢cfa] ';alua- tions on account of employe.as of Public Agency, and costs of the periodic investigation and valuations required by law. e Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to 2he Public Employees' Retirement Lmm, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. IO. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within thirty days after the cnd of the period to which said contributions refer or as may be prescribed by Board re~lation. 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, or adjustments on account of errors in contributions required of any employee may be made by direct cash payments between the employee and the Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders or cash. B. This amendment shall be attached to said contract and shall be effective on the day of , 19 Witn6ss our hands the day of , 19 BOARD OF ADMINISTRATION PUBLIC E~LOYEES' R~RE~SENT SYSTEM CITY COUNCIL OF THE CITY OF TUSTIN Carl J. Blechinger, Executive Officer Approved as to form: Cy~hia C. Bes?me~ Legal Office, Date Presiding Officer Attest: Clerk PERS C0N-702 CERTIFICATION DF GOVERNING BODY'S ACt!ON I hereby certify that the foreqoing is a true and correct copy of ~ Re$o}ution adopted by the (Governinq Body'/ of the .... '(Name oF Public Agency) on , appearin9 at PaOP , (Date) Votume of the (Minutes) (:)fFisial r, ecords) of the (Governing Body) ,.II'Y CLEF, K 'or Secretary r~f the .~c~a;'d P~kS-CON-12 (i 111) Sacr, amento, CA 95809 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in'accordance wltn Section 7507 of the Govermment Code the future annual costs as determined by the System Actuary nave been made public at a public meeting by the of (governing body) at least two weeks prior to the adoption (public agency) of the increase in public retirement plan benefits as provided by Section (optional benefit) Date: original signature official title PERS-CON-12A (1/80)