HomeMy WebLinkAbout1997-04-22; City Council; 14160; AMENDMENT TO PERS CONTRACT FOR FIRE MEMBERSt i
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%A ClTOOF CARLSBAD - AGEN)P BILL
DEPT. HD. u!$
CITY ATTY 9 AB ’ a TITLE:
MTG. 4-22-97 FOR FIRE MEMBERS
AMENDMENT TO PERS CONTRACT
DEPT. HR CITY MGR-
RECOMMENDED ACTION:
1. Adopt Resolution No. $1- &,, a resolution of intention to amend the PER8 Gvntract,
and
2. Introduce Ordinance No.~s- q&)6 amending the PERS contract for fire members.
ITEM EXPLANATION:
On March 4, 1997, the City Council adopted Resolution No. 97-79 implementing certain
salary, benefits, and employer-employee relations procedures for employees represented by
the Carlsbad Firefighters’ Association (CFA). Article 16, PROVISION OF 1959 PERS
SURVIVORS’ BENEFIT, includes a clause authorizing the City to initiate an amendment of
the City’s contract with PERS to provide the Fourth Level of the 1959 Survivor’s Benefit for
fire members as soon as possible during the term of the contract.
The City Council would need to take two actions to implement the proposed revisions to the
PERS retirement contract: (1) adopt a Resolution of Intention and, (2) introduce the
Ordinance to amend the contract. Adoption of the final Ordinance cannot be earlier than 20
days after adoption of the Resolution of Intention. Therefore, adoption of the final
Ordinance is scheduled for May 13, 1997. The effective date of the Ordinance would be
June 13, 1997. The effective date of the contract amendment would be June 14, 1997.
FISCAL IMPACT:
The current employer cost for the Fourth Level Survivor’s Benefit is $8.50 per member per
month, for an increased annual cost of approximately $6,000. PERS calculates the employer
cost for this benefit using a term insurance valuation method based on the pooled experience
of all participating agencies rather than each individual agency’s experience. Payment is
made annually or subtracted from any available employer 1959 Survivor Fund balances.
According to the PERS actuarial valuation, OUT 1959 Survivor Fund balance for safety
members has a surplus of $140,053. The surplus will be used to pay the employer cost for
the increased benefit, and is projected to last approximately 21 years.
EXHIBITS:
1. Resolution No. 011- 4 60 , including Exhibit A
2. Ordinance No. A/$ -406
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I Exhibit 1 @
RESOLUTION OF INTENTION NO. 9 7 - 4 6 0
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF CARLSBAD
BOARD OP ADMINISTRATION
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 Section 21382.5 (Fourth Level of 1959 Survivor
Benefits) for local fire members only.
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
said public agency and the Board of
Retirement System, a copy of said
"Exhibit" and by this reference made a
MAYOR
Title
April 22, 1997
Date adopted and approved
(Amendment)
CON-302 (Rev. 4/96)
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Exhibit 2 a
ORDINANCE NO. NS - 4 0 6
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING 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. -
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.
INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad
City Council held on the day of
Ill
Ill
Ill
, 1997, and therefore
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W 0
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City of
Carlsbad, California, on the day of ,1997, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
CLAUDE A. LEWIS, Mayor
ATTEST:
6
ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
1 ‘6
F CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYST M
Actuarial and Employer Services Division
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(91 6) 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 APRIL 22, 1997 which is at least two weeks prior to the adoption of the
(date)
5Red&%dOrdinance.
b A. hi?-
ClerUSecretary
CITY CLERK
Title
Date April 23, 1997
PERS-CON- 12A (rev. 1/96)
a
AGREEMENT
TO POOL
1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF CARLSBAD
WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be
established to provide benefits under said Section on account of members
employed by contracting agencies electing to include the provision of said Section
in their contracts; and
WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of
all contracting agencies subject to said Section;
NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Carlsbad and its
covered employees shall be pooled pursuant to the provisions of Government Code
Section 21382.5.
6
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM OF THE
BY
KENNETH W. MARZION, CHIEF
ACTUARIAL & EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
Date April 23, 1997
PERS-CON-59 (Rev 7/96)
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0 0
EXHIBIT A
AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
OF THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OF CARLSBAD
The Board of Administration, 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, November 3,1993, June 30,1995, June 3,1996 and
January 1, 1997, 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
January 1, 1997, 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
miscellaneous members and age 50 for local safety members.
Public Agency shall participate in the Public Employees' Retirement System from
and after Jan~my 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).
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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/LIFEGUARD HIRED 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". The 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 31, 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 21362 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 21624,21626 and 21628 (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).
c, Section 20965 (Credit for Unused Sick Leave).
d.
e.
Section 20042 (One-Year Final Compensation).
Section 2 1427 (Improved Non-Industrial Disability Allowance) for local
miscellaneous members only.
Section 21024 (Military Service Credit as Public Service), Statutes of
1976.
f.
g. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
I
m 0 PLEASE Drj MOT y@J “EXHIBIY ON[bys
h.
1.
Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits).
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).
Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local fire
members only. j.
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 fbture 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 $1.50 per member, per month on account
of the liability for 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 miscellaneous members and local police members.
Public Agency shall contribute $8.50 per member, per month on account
of the liability for the 1959 Survivor Benefits provided under Section
21382.5 of said Retirement Law. (Subject to annual change.) In addition,
all assets and liabilities of Public Agency and its employees shall be
pooled in a single account, based on term insurance rates, for survivors of
all local fire members.
A reasonable amount, as fixed by the Board, payable in one installment
within 60 days of date of contract to cover the costs of administering said
System as it affects the employees of Public Agency, not including the
costs of special valuations or of the periodic investigation and valuations
required by law.
b.
c.
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c m e
d. A reasonable amount, as fixed by the Board, payable in one installment as
the occasions arise, to cover the costs of special valuations on account of
employees of Public Agency, and costs of the periodic investigation and
valuations required by law.
12. Contributions required of Public Agency and its employees shall be subject to
adjustment by Board on account of amendments to the Public Employees’
Retirement Law, and on account of the experience under the Retirement System
as determined by the periodic investigation and valuation required by said
Retirement Law.
Contributions required of Public Agency and its employees shall be paid by
Public Agency to the Retirement System within fifteen days after the end of the
period to which said contributions refer or as may be prescribed by Board
regulation. If more or less than the correct amount of contributions is paid for any
period, proper adjustment shall be made in connection with subsequent
remittances. Adjustments on account of errors in contributions required of any
employee may be made by direct payments between the employee and the Board.
13.
B. This amendment shall be effective on&e day of ~ 19 .
BOARD OF ADMINISTRATION 9 & CITY COUNCIL * CITY OF CARL,
PUBLIC EMPLOYEES’ RETIREMENT$YSTEM OF THE
&4
BY R $ BY KENNETH W. MAFZION, C
ACTUARIAL & EMPLO
PUBLlC EMPLOYEES’
Attest:
Clerk
AMENDMENT
PERS-CON-702A (Rev. 8\96)
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