HomeMy WebLinkAbout1582ORDINANCE NO. 1582 (2012 Series)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF SAN LUIS OBISPO AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
WHEREAS, the City of San Luis Obispo has contracted with the California Public
Employees' Retirement System (CalPERS) for retirement benefits for its sworn Fire Safety
employees since July 1, 1952; and
WHEREAS, over the years, the City has amended its retirement benefit structure to
reflect changes as negotiated during the meet - and - confer process with each bargaining group;
and
WHEREAS, the City is amending its contract with Ca1PERS to provide for the 3% @
55 Retirement Formula and three year average final compensation for its sworn Fire Safety
employees hired after this contract amendment with Ca1PERS; and
WHEREAS, the City is amending its contract with Ca1PERS to provide that, pursuant to
Government Code Section 20471, there must be at least a 20 -day period between the adoption of
the Resolution of Intention and the adoption of the final Ordinance.
NOW, THEREFORE, BE IT 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, marked Exhibit,
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 summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final passage,
in The 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.
01582
Ordinance No. 1582 (2012 Series)
Page 2
INTRODUCED at a regular meeting of the City Council held on this 19th day of June,
2012, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 17th
day of July 2012, on the following vote:
AYES: Council Members Ashbaugh and Carter, and Mayor Marx
NOES: Vice Mayor Carpenter and Council Member Smith
ABSENT: None
ATTEST:
Sheryll §chroeder
Interim City Clerk
APPROVED AS TO FORM:
J. Chr tme Dietrick
Ci Attorney
Ca1PERS
California
Public Employees' Retirement System
EXHIBIT
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of San Luis Obispo
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the 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,
November 16, 1989, August 8, 1993, November 5, 1999, January 7, 2000, July 6, 2000,
September 21, 2001 March 28, 2002, July 18, 2002, January 30, 2003, February 27,
2003, July 14, 2005 and December 29, 2005 which provides for participation of Public
Agency in said System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 13 are hereby stricken from said contract as executed
effective December 29, 2005, and hereby replaced by the following paragraphs
numbered 1 through 15 inclusive:
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 55 for local miscellaneous members, age 50 for local police
members and for those local fire members entering membership in the fire
classification on or prior to the effective date of this amendment to contract
and age 55 for local fire members entering membership for the first time in
the fire classification after the effective date of this amendment to contract.
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. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CaIPERS) and its
trustees, agents and employees, the CaIPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
that may arise as a result of any of the following:
(a) Public Agency's election to provide retirement benefits,
provisions or formulas under this Contract that are different than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non - CaIPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CaIPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
formulas provided under this Contract and provided for under
the California Public Employees' Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and /or Public Agency's election to reject this
Contract with the CaIPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CaIPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
4. 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).
5. 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.
6. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after January 30, 2003 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
7. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after January 30, 2003 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
8. The percentage of final compensation to be provided for each year of
credited prior and current service as a local police member and for those
local fire members entering membership in the fire classification on or
prior to the effective date of this amendment to contract shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
9. The percentage of final compensation to be provided for each year of
credited current service as a local fire member entering membership for
the first time in the fire classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
10. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21573 (Third Level of 1959 Survivor Benefits) for local fire
members only.
b. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
C. Sections 21624, 21626 and 21628 (Post- Retirement Survivor
Allowance) for local safety members only.
d. Section 20965 (Credit for Unused Sick Leave).
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.
f. Section 20903 (Two Years Additional Service Credit) for local
miscellaneous members only.
g. Section 21024 (Military Service Credit as Public Service).
h. Section 21548 (Pre - Retirement Option 2W Death Benefit).
Section 20475 (Different Level of Benefits). Section 21363.1 (3%
@ 55 Full formula) and Section 20037 (Three -Year Final
Compensation) are applicable to local fire members entering
membership for the first time in the fire classification after the
effective date of this amendment to contract.
11. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
June 1, 1976. 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.
12. 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.
13. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of 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 fire members.
b. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 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 and local miscellaneous members.
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.
d. 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.
14. 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.
15. 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 329tA day of a o2�id.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
KAREN DE FRANK, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID #7574628515
PERS- CON -702A
CITY COUNCIL
CITY OF SAN LUIS OBISPO
BY rl, 0�/,, /
PRESI N OFFICER
Witn s Dafe
Attest:
NAW.
Um IQ 9