HomeMy WebLinkAbout06-19-2012 PH2 IronsAGENDA RECEIVED
CORRESPONP`NCE
Date (0/1 0 f 2 Item# Lt-4 JUN 19 2012 .
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SUBJECT: PH -2 RESOLUTION OF INTENTION AND AN ORDINANCE AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN
LUIS OBISPO AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO
PROVIDE SECTION 20475 (DIFFERENT LEVEL OF BENEFITS), SECTION
21363.1 (3% @ 55 FULL FORMULA) AND SECTION 20037 (THREE -YEAR
FINAL COMPENSATION) FOR LOCAL FIRE SAFETY MEMBERS.
Council Member Carter requested more specific information on the Ca1PERS Contract
Amendment Item #10 (pages PH2 -6 and PH2 -7 of the June 19, 2012 Council Agenda Report)
which deals with optional provisions the City has elected or is currently electing.
The following is a brief description of each optional benefit provision. Some optional benefits
are mandated by Ca1PERS for plans that are in a risk pool because they have fewer than 100
members. Those mandated benefits are indicated by an asterisk in the list below. The benefits
may vary based upon personal elections made at retirement.
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire members only.
Upon death of a member who dies prior to retirement the following benefits are paid to
survivors: One survivor = $350 /month, Two survivors = $700 /month, Three or more survivors =
$840 /month.
b. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local miscellaneous
members and local police members only. Upon death of a member who dies prior to retirement
the following benefits are paid to survivors: One survivor = $950 /month, Two survivors =
$1,900 /month, Three or more survivors = $2,280 /month.
C. Section 21624, 21626 & 21628 (Post Retirement Survivor Allowance (PRSA) 50 %)
for local safety members only. Upon death of a member after retirement 50% of the highest
benefit payable may continue to an eligible survivor.
d. *Section 20965 (Credit for unused Sick Leave). Unused accumulated sick leave at time
of retirement may be converted to additional service credit (i.e. 250 days or 2,000 hours of sick
leave equals one additional year of service credit).
• COUNCIL
° CDD DIR
• CrIT
June 18, 2012
AMCMR
° FIREICHIEF
G AT11ORNEy
a FW DIR
° CUDUUORIO
°o P EC
TO:
City Council
°
° VMDIR
VIA:
Katie Lichtig, City Manager°
°
COUNCIL
° COUNCIL
FROM:
Monica Irons, Director of Human Resources
° CITY MOR
° CLERK
Greg Zocher, Human Resources Manager
SUBJECT: PH -2 RESOLUTION OF INTENTION AND AN ORDINANCE AUTHORIZING
AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SAN
LUIS OBISPO AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO
PROVIDE SECTION 20475 (DIFFERENT LEVEL OF BENEFITS), SECTION
21363.1 (3% @ 55 FULL FORMULA) AND SECTION 20037 (THREE -YEAR
FINAL COMPENSATION) FOR LOCAL FIRE SAFETY MEMBERS.
Council Member Carter requested more specific information on the Ca1PERS Contract
Amendment Item #10 (pages PH2 -6 and PH2 -7 of the June 19, 2012 Council Agenda Report)
which deals with optional provisions the City has elected or is currently electing.
The following is a brief description of each optional benefit provision. Some optional benefits
are mandated by Ca1PERS for plans that are in a risk pool because they have fewer than 100
members. Those mandated benefits are indicated by an asterisk in the list below. The benefits
may vary based upon personal elections made at retirement.
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire members only.
Upon death of a member who dies prior to retirement the following benefits are paid to
survivors: One survivor = $350 /month, Two survivors = $700 /month, Three or more survivors =
$840 /month.
b. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local miscellaneous
members and local police members only. Upon death of a member who dies prior to retirement
the following benefits are paid to survivors: One survivor = $950 /month, Two survivors =
$1,900 /month, Three or more survivors = $2,280 /month.
C. Section 21624, 21626 & 21628 (Post Retirement Survivor Allowance (PRSA) 50 %)
for local safety members only. Upon death of a member after retirement 50% of the highest
benefit payable may continue to an eligible survivor.
d. *Section 20965 (Credit for unused Sick Leave). Unused accumulated sick leave at time
of retirement may be converted to additional service credit (i.e. 250 days or 2,000 hours of sick
leave equals one additional year of service credit).
e. Section 20042 (One -Year Final Compensation) for local miscellaneous members,
local police members and for those local fire members entering membership on or prior to
the effective date of this amendment to contract. Clarifies this benefit will not apply to local
fire safety employees hired after this contract amendment as three year average will be used to
calculate final compensation instead.
f. Section 20903 (Two Years Additional Service Credit) for local miscellaneous
members only. Allowed members who retired because of impending mandatory transfers,
layoffs, or demotions within a specified window (August 1, 1993 - October 31, 1993) to receive
an additional two years of service credit. This section is a historical recitation of a previous
contract amendment and has no current applicability.
g. *Section 21024 (Military Service Credit as Public Service). A member may elect to
purchase up to four years of service credit for any active military or merchant marine service
prior to employment.
h. *Section 21548 (Pre- Retirement Option 2W Death Benefit). Upon death of a member,
who is eligible to retire for service at the time of death, the spouse or domestic partner may elect
to receive a monthly retirement allowance in lieu of lump sum basic death benefit.
i. Section 20475 (Different Level of Benefits). Clarifies that Fire Safety Employees hired
after contract amendment will be under the 3% @ 55 using three year average for calculation of
final compensation.