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HomeMy WebLinkAbout1996-10-22; City Council; 13867; AMENDMENT TO PERS CONTRACT FOR LOCAL MISCELLANEOUS MEMBERS4 .rl 2 z V z 0 o I- 4 -I 0 z 3 0 0 - As reflected in the PERS actuarial study, the cost increase for the new benefit is comprised of two components: 0 A permanent increase of 1.751% to the employer contribution rate as a result of the 2% at 55 benefit, and * A temporary increase of 2.013% to the employer contribution rate. This unfunded liability cost is required to pay for the service time of active employees paid at the lower rate (2% at 60). This portion of the cost would be amortized through the year 2016. I 0 0 Page 2 of AB ## /z 2?,7 The retirement benefit would become effective January 1,1997 with costs accruing by the City as of the same date. However, because of the PERS method of calculating rates, the PERS rate increase would not become effective until July 1 , 1998. The City currently has reserves in the PERS system which may be utilized by PERS to offset a portion of the projected rate increase. EXHIBITS: 1. Resolution No. $?-a3 , including Exhibit A 2. Ordinance No. M5-383 r < 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 I? 18 19 20 21 22 23 24 25 26 27 28 0 0 ORDINANCE NO. NS-383 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHOMZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM The City Council of the City of Carlsbad does ordain as follows: SECTION 1. That an amendment to the contract between the City Council of the City of Carlsbad and the Board of Administration, California Public Employees’ Retirement System is hereby authorized, a copy of said amendment marked “Exhibit A” to Resolution No. 96-353 SECTION 2. The Mayor of the City of Carlsbad is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the adoption thereof shall be published at least once in the North County Times, a newspaper of general circulation, published and circulated in the City of Carlsbad and thenceforth and thereafter the same shall be in full force and effect. I INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council held on the 22nd day of Ill Ill Ill OCTOBER , 1996, and therefore r” 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 0 PASSED, APPROVED, AND ADOPTED at a regular meeting of the City of Carlsbad, California, on the day of vote, to wit: , 1996, by the following AYES: NOES: ABSENT: CLAUDE A. LEWIS, Mayor ATTEST: ALETHA L. RAUTENKRANZ, City Clerk (SEAL) n CALIFORNIA PUaC EMPLOYEES' RETIREMENT !&'EM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (9 16) 326-3420 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting of the City Council (governing body) of the City of Carlsbad (public agency) on October 2 2 r 19 9 6 (date) which is at least two weeks prior to the adoption of the RemWOrdinance. Clerk/- CITY CLERK Title Date October 24, 1996 PERS-CON-12A (rev 1/96) 0 RESOLUTION NO. 96-353 0 RESOLUTION OB INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF CARLSBAD WHEREAS, the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law: and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing 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 change proposed in said contract; and WHEREAS, the following is a statement of the proposed change: To provide 2% @ 55 Full and Modified formula for local miscellaneous members, including an extension of the hding period to the year 2016. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between Retirement System, a copy of said me "Exhibit" and by this reference made a p said public agency and the Board of Administration of the Public Employees' - Mayor Title October 22, 1996 Date adopted and approved (Amendment) CON-302 (Rev. 4/96) 7 0 e EXHIBIT A AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF CAFUSBAD The Board Of Administrafion, 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 January 1, 1956, and witnessed December 23, 1955, and as amended effective July 1, 1957, January 1, 1959, March 5, 1959, March 18, 1975, April 1, 1975, August 18, 1977, June 21, 1980, January 1, 1981, June 21, 1982, November 22, 1982, June 26, 1989, November 16,1990, July 3,1992,November3,1993, June 30,1995 and June 3,1996, 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 June3, 1 996, and hereby replaced by the following paragraphs numbered 1 through 13 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 55 for local miscellaneousmembers and age 50 for local safety members. Public Agency shall participate in the Public Employees' Retirement System fiom and after January 1, 1956 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. 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. b. c. 2. 3. Local Fire Fighters (herein referred to as local safety members); Local Police Officers (herein referred to as local safety members); Employees other than local safety members (herein referred to as local miscellaneous members). 0 P&E DO NOT SL:: ''ZXl-MT ONLY" 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. SENIOR INSTRUCTOR/LIFEGUARDHIRED AFTER NOVEMBER 3,1993. 5. This contract shall be a continuation of the contract of the Carlsbad Municipal Water District, hereinafter referred to as "Former Agency". me accumulated contributions, assets and liability for prior and current service under the Former Agency's contract shall be merged pursuant to Section 20508 of the Government Code. Such merger occurred February 17,1992. The percentage of final compensation to be provided for local miscellaneous members for each year of credited prior and current service shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service on and after June 1, 1958, the effective date of Social Security coverage, and prior to December 3 1, 1980, termination of Social Security, for members whose service has been included in Federal Social Security (2% at 55 Full and Modified). 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 2 1362 of said Retirement Law (2% at age 50 Full), Public Agency elected and elects to be subject to the following optional provisions: a. b. 6. 7. 8. Sections 2 1624,2 1626 and 2 1628 (Post-Retirement Survivor Allowance). Section 20425 ("Local Police Officer" shall include employees of a police department who were employed to perform identification or communication duties on August 4, 1972 and who elected to be local safety members). Section 20965 (Credit for Unused Sick Leave). Section 20042 (One-Year Final Compensation). Section 2 1427 (Improved Non-Industrial Disability Allowance) for local miscellaneous members only. Section 2 1024 (Military Service Credit as Public Service), Statutes of 1976. Section 2 1573 (Third Level of 1959 Survivor Benefits). Section 2 1583 (Second Opportunity to Elect 1959 Survivor Benefits). C. d. e. - f. g. h. 0 P(RtSE DO NOT SIGN “EXH\BII ONLY i. Section 20434 (“Local Fire Fighter” shall include any officer or employee of a fire department employed to perform firefighting, fire prevention, fire training, hazardous materials, emergency medical services, or fire or arson investigation services as described in Government Code Section 20434). 9. Public Agency, in accordance with Government Code Section 20790, ceased to be an “employer” for purposes of Section 20834 effective on August 18, 1977. 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. 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. Public Agency shall also contribute to said Retirement System as follows: a. 10. 1 1. Public Agency shall contribute $1 SO per member, per month on account of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members and local safety members. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and the liability for the 1959 Survivor Benefits provided under Section 21 573 of b. c. valuations required by law. 12. Co’ntributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees’ Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. __ e a 13. Contributionsrequired of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributionsrefer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the day of 7 19-. BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES’ RETIREMENT SYSTEM OF THE CITY OF CARLSBAD BY BY .$ <@ KENNETH W. MARZION, CHIEF ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES’ RETIREMENT SYSTEM PRESIDING OFFICER * & . Witness Date @ Attest: -@ & 9 ClerkP\ - AMENDMENT PERSCON-7O2A (Rev 8\96)