HomeMy WebLinkAbout07/06/1993, C-5 - AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) TO PROVIDE SECTION 20818 (TWO YEARS ADDITIONAL SERVICE CREDIT) FOR LOCAL MISCELLANEOUS MEMBERS. Illlu^I��I�IIIIIII�I IIUI�I MEETING DATE:
IIII ii city or san Luis oBIspo 7/6/93
COUNCIL AGENDA REPORT ITEM NUMBER
FROM Ann Slate, Personnel Director
PREPARED BY: Wendy George, Personnel Analyst
SUBJECT: Amendment to the contract between the City of San Luis Obispo
and the Public Employees' Retirement System (PERS) to provide
Section 20818 (Two Years Additional Service Credit) for local
miscellaneous members.
CAO RECOMMENDATION:
Give passage to Ordinance No. 1241 amending our contract with
the Public Employees' Retirement System to add Section 20818.
DISCUSSION: The Council took action at its meeting of June 8, 1993, to
introduce to print Ordinance No. 1241 which amends the City's
contract with PERS to include Section 20818 (Two Years
Additional Service Credit) for local miscellaneous members.
Under this section, eligible employees who are retiring in lieu of
layoff are eligible to receive two additional years of service credit.
FISCAL IMPACT: The employer cost of this benefit is directly related to the age and
annual pay rate of the employees retiring. PERS will perform a
valuation on an individual basis to determine the actual cost for
each employee. It is estimated that the cost to the City would
average approximately $16,000 per employee electing this option.
Additionally, there is a $10.00 fee for each valuation performed.
Cost of including this benefit in an employee's severance package
is provided'for in the Financial Plan.
ALTERNATIVES: Leave the contract as it currently exists, without the option of
providing two additional years of service credit for employees
retiring in lieu of layoff. Without this option, retirement benefits
would be less for those employees.
Attachment: Ordinance 1241
Ordinance Summary
ORDINANCE NO. 1241 (1993 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING THE CONTRACT BETWEEN THE CITY OF SAN LUIS OBISPO
AND THE BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC EMPLOYEES' RETRZEMENT SYSTEM
WHEREAS, the City of San Luis Obispo wishes to provide a benefit for certain
employees who are choosing to retire in lieu of being laid off for budgetary reasons; and
WIEREAS, the City Council has passed a Resolution of Intention to approve an
amendment to the contract between the City of San Luis Obispo and the Board of Administration
of the Public Employees' Retirement System to provide Section 20818 (Two Years Additional
Service Credit) for local miscellaneous members;
BE IT NOW ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. That an amendment to the contract between the City Council of the City
of San Luis Obispo and the Board of Administration, California Public Employees' Retirement
System is hereby authorized, a copy of said amendment being attached hereto, and by such
reference made a part hereof as though herein set out in full.
SECTION 2. The Mayor of the City of San Luis Obispo is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency.
SECTION 3. A synopsis of this ordinance, together with the names of councilmembers
voting for and against, shall be published once in full, at least five(5)days prior to its final
passage, in the Telegram-Tribune, a newspaper published and circulated in this city. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis
Obispo at its meeting held on the 8th day of .rune , 1993, on motion of
0-1241 -���
Ordinance No. 1241 (1993 Series)
Contract Amendment with the Public Employees' Retirement System
Page 2
Council Member Romero , and seconded by Council Member Ray-Da ,
and on the following roll call vote:
AYES: Council Members Romero, Rappa, Roalman, Settle, and Mayor Pinard
NOES: None
ABSENT: None
Mayor Aeg Pinard
ATTEST:
2�i�- , &
CitX16rg Diane R. G dwell
APPROVED:
City Ad istrative Officer
CityAtto ey
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PLEASE .DO NOT SIGN "EXHIBIT ONLY`
AMENDMENT TO CONTRACT COPY
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF SAN LUIS OBISPO
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 July 1, 1952, and witnessed June 9, 1952, and as amended effective October 1,
1962, October 3, 1963, October 1, 1974,June 1, 1976, December 1, 1976, December 20, 1978,January
16, 1980, May 1, 1980, July 1, 1980, July 1, 1983, July 1, 1986, July 23, 1987 and November 16,
1989,which provides for participation of Public Agency in said System, Board and Public Agency hereby
agree as follows:
A. Paragraphs 1 through I 1 are hereby stricken from said contract as executed effective November
16, 1989, and hereby replaced by the following paragraphs numbered 1 through 12 inclusive:
1. 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 and age 50
for local safety members.
2. Public Agency shall participate in the Public Employees' Retirement System from and
after July 1, 1952 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.
3. 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).
4. 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. CROSSING GUARDS.
C'-51A'
PLEASE DO NOT SIGN "EXHIBIT ONLY"
5. 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).
6. The percentage of final compensation to be provided for each year of credited prior and
current service as a local safety member shall be determined in accordance with Section
21252.01 of said Retirement Law (2% at age 50 Full).
7. Public Agency elected to be subject to the following optional provisions:
a. Sections 21380-21387(1959 Survivor Benefits) including Section 21382.4(Third
Level of 1959 Survivor Benefits).
b. Sections 21263 and 21263.1 (Post-Retirement Survivor Allowance) for local
safety members only.
C. Section 20862.8 (Credit for Unused Sick Leave).
d. Section 20024.2 (One-Year Final Compensation) for local miscellaneous
members; for those local fire members entering membership on or prior to July
1, 1986; and for those local police members entering membership on or prior to
July 23, 1987.
e. Section 20461.6(Different Level of Benefits). Section 20024.2 (One-Year Final
Compensation) is not applicable to local fire members entering membership after
July 1, 1986 and to local police members entering membership after July 23,
1987.
f. Section 20818 (Two Years Additional Service Credit). for local miscellaneous
members only.
8. Public Agency, in accordance with Government Code Section 20740 ceased to be an
"employer" for purposes of Section 20759 effective on June 1, 1976. 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.
9. 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.
10. Public Agency shall also contribute to said Retirement System as follows:
a. Public Agency shall contribute$2.50 per employee, per month on account of the
liability for the 1959 Survivor Benefits provided under Section 21382.4 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
and local safety members.
�-s s
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.
C. 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.
11. 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.
12. 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 day of , 19_
BOARD OFMSTRATION CITY COUNCIL
PUBLIC EMPL ES' RETIREMENT SYSTEM OF THE
c� CITY OF AAN LUIS OBISPO
BY Z BY
CHIEF, CONTRA SERVICES DIVISION Presiding wcer
PUBLIC EMPLOYED' RETIREMENT SYSTEM y
GZ �: ►
Witness Date �
Attest:
d
Q
Clerk
PERS-CON-702 (AMENDMENT)
(Rev. 10/92)
ORDINANCE NO. 1241 (1993 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO
AMENDING THE CONTRACT BETWEEN THE CITY OF SAN LUIS OBISPO
AND THE BOARD OF ADMINISTRATION OF
THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
On June 8, 1993, the San Luis Obispo City Council voted 5-0 to introduce Ordinance
No. 1241(1993 Series), which amended the contract between the City of San Luis Obispo and
the Board of Administration of the California Public Employees' Retirement System as follows:
Section 20818 (Two Years Additional Service Credit) for local miscellaneous members
was added to the existing contract. This section allows certain employees who are retiring in
lieu of lay off to receive two additional years service credit if they meet the requirements
imposed by the Public Employees' Retirement System.
The Council must vote again to approve the ordinance before it takes effect. That action
is tentatively scheduled for July 6, 1993, at a regular City Council meeting to begin at 7:00 p.m.
in the Council Chambers of City Hall, 990 Palm Street.
Copies of the complete ordinance are available in the City Clerk's Office in Room #1 of
City Hall, 990 Palm Street. For more information, contact the Personnel Department at
781-7250.
Diane Gladwell, City Clerk
APPROVED AS TO FORM:
deffisy Q JOrpenq f
Clty Attomay
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