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HomeMy WebLinkAboutr10373resolutionofintentiontoapproveamendmentocontractbetboardofadmincalpersandcitycouncilcitysloRESOLUTION OF INTENTIO N TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN TH E BOARD OF ADMINISTRATIO N CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTE M AND TH E CITY COUNCI L CITY OF SAN LUIS OBISP O WHEREAS, the Public Employees' Retirement Law permits the participation of publi c agencies and their employees in the Public Employees' Retirement Syste m by the execution of a contract, and sets forth the procedure by which sai d public agencies may elect to subject themselves and their employees t o amendments to said Law ; an d WHEREAS, one of the steps in the procedures to amend this contract is the adoption b y the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shal l contain a summary of the change proposed in said contract ; and WHEREAS, the following is a statement of the proposed change : To provide Section 20475 (Different Level of Benefits). Section 21363 .1 (3% @ 55 Full formula) and Section 20037 (Three-Year Final Compensation) are applicable to local fir e members entering membership for the first time in the fir e classification after the effective date of this amendment t o contract . NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agenc y does hereby give notice of intention to approve an amendment to th e contract between said public agency and the Board of Administration of th e Public Employees' Retirement System, a copy of said amendment bein g attached hereto, as an "Exhibit"and by this reference made a part hereof. ate adopted and approve d (Amendment ) CQN-302 (Rev . 4/96) A CaIPERS EXHIBI T Californi a Public Employees' Retirement Syste m AMENDMENT TO CONTRAC T Between th e Board of Administratio n California Public Employees' Retirement Syste m and the City Counci l City of San Luis Obisp o 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, Octobe r 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 Publi c Agency in said System, Board and Public Agency hereby agree as follows : A . Paragraphs 1 through 13 are hereby stricken from said contract as execute d effective December 29, 2005, and hereby replaced by the following paragraph s numbered I through 15 inclusive: 1 . All words and terms used herein which are defined in the Publi c Employees' Retirement Law shall have the meaning as defined therei n unless otherwise specifically provided . "Normal retirement age" shal l mean age 55 for local miscellaneous members, age 50 for local polic e members and for those local fire members entering membership in the fir e classification on or prior to the effective date of this amendment to contrac t and age 55 for local fire members entering membership for the first time i n the fire classification after the effective date of this amendment to contract . 2.Public Agency shall participate in the Public Employees' Retiremen t System from and after July 1, 1952 making its employees as hereinafte r provided, members of said System subject to all provisions of the Publi c 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 provision s thereof, apply only on the election of a contracting agency . 3.Public Agency agrees to indemnify, defend and hold harmless th e California Public Employees' Retirement System (CaIPERS) and it s 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 an d costs, including but not limited to interest, penalties and attorneys fee s 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 tha n the retirement benefits, provisions or formulas provided unde r the Public Agency's prior non-CaIPERS retirement program . (b)Public Agency's election to amend this Contract to provid e retirement benefits, provisions or formulas that are different tha n existing retirement benefits, provisions or formulas . (c)Public Agency's agreement with a third party other tha n CaIPERS to provide retirement benefits, provisions, or formula s that are different than the retirement benefits,provisions o r 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 State s Bankruptcy Code and/or Public Agency's election to reject thi s Contract with the CaIPERS Board of Administration pursuant t o section 365, of Title 11, of the United States Bankruptcy Cod e or any similar provision of law. Public Agency's election to assign this Contract without the prio r written consent of the CaIPERS' Board of Administration . The termination of this Contract either voluntarily by request o f Public Agency or involuntarily pursuant to the Public Employees ' Retirement Law . Changes sponsored by Public Agency in existing retiremen t benefits, provisions or formulas made as a result o f amendments, additions or deletions to California statute or t o the California Constitution . (e ) (f ) (9) 4 .Employees of Public Agency in the following classes shall becom e 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 a s local miscellaneous members). In addition to the classes of employees excluded from membership b y said Retirement Law, the following classes of employees shall not becom e members of said Retirement System : a .CROSSING GUARDS . 6.The percentage of final compensation to be provided for each year o f credited prior and current service as a local miscellaneous member i n employment before and not on or after January 30, 2003 shall b e determined in accordance with Section 21354 of said Retirement La w (2% at age 55 Full). 7.The percentage of final compensation to be provided for each year o f credited prior and current service as a local miscellaneous member i n employment on or after January 30, 2003 shall be determined i n accordance with Section 21354.5 of said Retirement Law (2 .7% at age 5 5 Full). 8.The percentage of final compensation to be provided for each year o f credited prior and current service as a local police member and for those local fire members entering membership in the fire classification on o r prior to the effective date of this amendment to contract shall b e determined in accordance with Section 21362 .2 of said Retirement La w (3% at age 50 Full). 9.The percentage of final compensation to be provided for each year o f credited current service as a local fire member entering membership fo r the first time in the fire classification after the effective date of thi s amendment to contract shall be determined in accordance with Sectio n21363.1 of said Retirement Law (3% at age 55 Full). 10.Public Agency elected and elects to be subject to the following optiona lprovisions: a .Section 21573 (Third Level of 1959 Survivor Benefits) for local fir e members only. Section 21574 (Fourth Level of 1959 Survivor Benefits) for loca l miscellaneous members and local police members only . c.Sections 21624, 21626 and 21628 (Post-Retirement Survivo r Allowance) for local safety members only . Section 20965 (Credit for Unused Sick Leave). e.Section 20042 (One-Year Final Compensation) for loca l miscellaneous members, local police members and for those loca l fire members entering membership on or prior to the effective dat e of this amendment to contract . f.Section 20903 (Two Years Additional Service Credit) for loca l miscellaneous members only . 9 -Section 21024 (Military Service Credit as Public Service). h.Section 21548 (Pre-Retirement Option 2W Death Benefit). i.Section 20475 (Different Level of Benefits). Section 21363 .1 (3% @ 55 Full formula) and Section 20037 (Three-Year Fina l Compensation) are applicable to local fire members enterin g membership for the first time in the fire classification after th e 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 o n June 1, 1976 . Accumulated contributions of Public Agency shall be fixe d and determined as provided in Government Code Section 20834, an d accumulated contributions thereafter shall be held by the Board a s provided in Government Code Section 20834 . 12.Public Agency shall contribute to said Retirement System the contribution s 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 195 9 Survivor Benefits provided under Section 21573 of said Retiremen t Law. (Subject to annual change .) In addition, all assets an d liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of al l local fire members . b.Contributions required per covered member on account of the 195 9 Survivor Benefits provided under Section 21574 of said Retiremen t Law . (Subject to annual change .) In addition, all assets an d liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of al l 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 o f administering said System as it affects the employees of Publi c 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 on e installment as the occasions arise, to cover the costs of specia l valuations on account of employees of Public Agency, and costs o f 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 Publi c Employees' Retirement Law, and on account of the experience under th e Retirement System as determined by the periodic investigation an d valuation required by said Retirement Law . 15.Contributions required of Public Agency and its employees shall be pai d by Public Agency to the Retirement System within fifteen days after th e 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 o f contributions is paid for any period, proper adjustment shall be made i n connection with subsequent remittances . Adjustments on account o f 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 30 day o f BOARD OF ADMINISTRATION CITY COUNCI L PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF SAN LUIS OBISP O BY B Y KAREN DE FRANK, CHIEF PRES I CUSTOMER ACCOUNT SERVICES DIVISIO N PUBLIC EMPLOYEES'RETIREMENT SYSTEM Attest : YI/Lb Cler k AMENDMENT Ca1PERS ID #757462851 5 PERS-CON-702A