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Home My WebLink About1974-02-05; City Council; 2297; Public Employees Retirement Contract AmendmentT II F. C X T Y r`''�O P CA R L S B A D, i4, C A L •X F' O R N 'X A Agenda Bill No. Dato: _February 5, 1974 Referred To: Subject: Submitted By: PUBLIC EMPLOYEES RETIREMENT THELMA SOWELL CONTRACT AMENDMENT FINANCE DIRECTOR Sta temen t of . the matter -1 0 / SENATE BILL 1113, CHAPTER 1123, (1973) PROVIDES THAT MONTHLY ALLOWANCES PAID WITH RESPECT TO PERSONS RETIRED OR MEMBERS DECEASED ON OR AFTER JANUARY 1, 1971, BUT BEFORE JULY 1, 197), BE INCREASED BY 5%. THIS BILL IS AN EXTENSION OF SENATE BILL 135, CHAPTER 1413, (1972), WHICH PROVIDED THAT A 5% ALLOWANCE INCREASE BE PAID PERSONS RETIRED OR DE- CEASED PRIOR TO DECEMBER 31, 1970. i F.xhibi t CIRCULAR LETTER NUMBER: 020-2 FROM PtRS COPY OF RESOLUTION OF INTENTION TO APPROVE AMENDMENT TO PERS CONTRACT •Staff Recommendations to City Manager SB 1113 EXTENDS THE 5% ALLOWANCE 10 EMPLOYEES NOT INCLUDED IN SB 135. APPROVAL OF SB 1113 SHOULD INCLUDa APPROVAL OF SB 135. COST TO THE CITY FOR SB 1113 WOULD BE A LUMP SUM PAYMENT OF $812.00. COSTS TO CITY•TO PROVIDE 5% INCREASE FOR MEMBERS RETIRED OR DECEASED PRIOR TO JUNE 30, 1971 LUMP SUM - SB 1113 $ 812 SB 135 10,639 TOTAL LUMP SUM COST $11,451 A.. D „c. Da to. February 5, 1974 Citq Manager's Recommendation This•basic matter was brought before the City Council sorge time ago by the previ6us C•ity•Manager. At that time, as indicated in the - Agenda Bill, the'5% allowance under SB 135 would have cost the City $10,639.00. The present 58 increase for the specified period under SB 1113 will only cost the City $812.00. I believe the State'is correct in suggesting that if the ,C,ouncil a6cepts the present option,, they will want to go back and also consider their original option. 'I am,not unsympathetic•to those presently retired employees who are constantly faced with cost of living increases, and even thdugh it's with mixed feelings, I feel I must -recommend to -City Council thbtt they not proceed with amendment'to their Retirement Contract allowing the 5% increase for retired members during the specified period., These funds are important to maintain the current level of services to the public. If the Council feels the amendment to the contract authorizing the 5% increase should be made, the staff can be requested to place the item in the 1974-75 fiscal budget for consideration at that time.' i Council "Action 2-5-74 - Matter continued to 2-6-74.' • 2-6-74 - Amendment to the subject contract was denied: -2- P0LIC MPLOYEES' RETIREMENT SYSTEiI P.D. Box 1953 (1416 - Sth Street) DATE: JAPlUAP.Y 16, 1974 Sacramento, CA 95009 CIRCULAR TO: AGENCIES COMTRACTIOG :/li'H THE PUBLIC LETTER EMPLOYEES' RETIREMENT SYSTEIi WITH NUMBER: 020-2 RETIREMENTS EFFECTIVE 1/l/71 through 6/30/71 DISTRIBUTION: SPECIAL SUBJECT: SENATE BILL 1113, CHAPTER 1123 (1973) 5% ALLOWANCE INCREASE Senate Bill 1113, Chapter 1123, Statutes of 1973, provides chat monthly allowances paid with respect to persons who retired or members deceased on or after January 1, 1971 but before July 1, 1971 are increased by %4. This bill is an extension of Senate Bill 135, Chapter 1413, Statutes 1972, which pro- vided that monthly allowances paid with respect to person'z retired or members deceased prior to January 1, 1971 were increased by 5% for local members with respect to whom allowances were being paid on the effective date of tha contract amendment which included the benefit. Similar to Senate Bill 135 (1972), Senate Bill 1113 (1973) is not mandatory for contracting agencies but is an optional feature. An agency that is considering amending its contract to be subject to the allowance increase for persons retiring between January 1, 1971 and June 30, 19,71 will probably want to also consider amending to be subject to the provisions of SB 135 if the agency has not previously amended. The contract must be amended in the usual manner and the increases provided by both Chapters are applicable to both miscellaneous and safety members and the increases will apply only to payments commencing on or after the effective date of the amendment. We are enclosing, in duplicate, a Resolution of Intention to approve an amendment to contract to provide the 5% increase of SB 1113. Attached to the Resolution of Intention as "Exhibit A" is a copy of the valuation results. Your governing body should return one complete executed set to this System if the enclosed Resolution is adopted. (A Resolution of Intention and the results of an actuarial valuation for SB 135 were mailed to you last February.) Upon receipt of the executed Resolution of Intention and attach:d exhibit, this System will forward a resolution authorizing the proposed contract amendment and other documents pertinent to the amendm-int. Cities and counties must adopt by ordinances which do not become effective until 30 days following the final reading. Emergency ordinances are not acceptable for contract amendment purposes. Effective date of the amendment must be the beginning of a payroll period subsequent to the above actions and whenever possible should coincide with the cormancement of the allowance increases. 3C I SUK YANG CHIEF, ACTUARY Attach,%rat It000LUTIO?r n. MENTION TO A22207:..�:: ,t:E:3Ytiu:: 1_0 COtriRACT v+sT'7:'3;: THE BOARD OV ADIUNISTIiATION OP TIM i'LMLtC "r;,fe''I,OYE::S' RETIR?'1 Ni SYSri'c i AND TM Governing Body OP TKE Name of Public Agency ;TrR AS, the Public Employees' Retirement Law permits the participative of public agencies and their employees in the Public Fmployees' i:etirem;nt System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to suoject themselves and their employees to amendments to said lwti; and WIMEAS, one of the steps in the procedure to amend this contract is the adoption by the legislative body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the changes proposed in said contract; and NHEREAS, the following is a statement of the proposed chine: Retirement allowances to which the annual cost -of -living provisions apply, payable for time cormencing on the first day of the calendar month coin- ciding with or next following the effective date of this amentinent to or on account of persons retired or nembors deceased on or after January 1, 1971 but before July 1, 1971, are hereby increased by 5;4. WHEREAS, the estimate of the cost of such change for the public agency is set forth in a copy of the veauation report attached he.?to, marked "-..obit All and by this reference incorporated into the amendment as tho Sh therein set out in full. vCPrJ, T3 iEFQRE, HE IT RESOLVED, that the Of the Governing, 8ody Name of gives, and it hereby gives notice of intention to approve Public Agency an amendment to the contract between the Governing Body r and the Board of Administration of the Public Eaployeea' Retirement System to accomplish the above chime. of the Governing, Body (Name of Public Agancy) 'R . (Title) %.". ..uot`_d yu.d �tpprovl.-I EXHIBIT A PUBLIC EMPLOYEES' RETIS1EAE1T SYSTEM ACTUARIAL VALUATION TO DETUMINE COSTS UNDER SO 1113, CHAPTER 1123 (1973) (5/. increase) AGENCY NAME: Carlsbad, Civ*y of AGENCY NUMBER: 333 DATE: January 112 1974 LUMP SUM PAYMENT FOR LUMP SUM PAYMENT FOR 54FEiY MEMBERS MISCELLANEOUS MEMBERS - - s 812 } S i l t 4