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HomeMy WebLinkAbout2001-05-15; City Council; 16191; CALPERS Safety Contract AmendmentCITY OF CARLSBAD - AGENDA BILL \B # !d! 19 1 TITLE: HTG. 5-15-01 ADOPTION OF ORDINANCE NO. NS-582 - AMENDMENT IEPT. HR TO CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (CALPERS) SAFETY CONTRACT 3ECOMMENDED ACTION: Adopt Ordinance No. NS-582 authorizing an amendment to the CalPERS safety contract impacting local police members, as defined by all sworn police employees. ITEM EXPLANATION: Ordinance No. NS-582 was introduced at the regular City Council meeting of April 24,200l. The second reading allows Council to adopt the ordinance which would then become effective in thirty days. The City Clerk will have the ordinance published within fifteen days, if adopted. FISCAL IMPACT: See Agenda Bill No. 16,166 on tile with the City Clerk. EXHIBIT: 1. Ordinance No. NS-582 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 ORDINANCE NO. NS-582 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. WHEREAS, the City Council authorized the City to initiate an amendment of the City’s contract with CalPERS to provide the 3% at 50 retirement benefit (Section 21362.2) for all sworn police employees effective the pay period inclusive of June 30,200l; and NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows: SECTION’ 1: That an amendment to the contract between the City Council of the City of Carlsbad and the Board of Administration of the California Public Employees’ Retirement System is hereby authorized, a copy of said amendment marked “Exhibit A” to Resolution No. 2001-126. 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. EFFECTIVE DATE: This ordinance shall be effective thirty days after the date of its adoption; and the City Clerk shall certify the adoption of this ordinance and cause it to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. l/l Ill ill t2 , . 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 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City Council on the day of April 24,2001, and thereafter PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the day of May 15, 2001, by the following vote, to wit: AYES: Comic1 Members Lewis, Finnila, Nygaard and Hall. NOES: None. ABSENT: Council Memb ATTEST: (SEAL) 3 CalPERS Actuarial & Employer Services Division P.O. Box 942709 Sacramento, CA 94229-2709 Telecommunications Device for the Deaf - (916) 326-3240 (916)326-3420 FAX (916) 326-3005 May 4,200l Employer Code #0338 Reply to Section 105 Ms. Julie Clark Acting Human Resources Director City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008-7314 Dear Ms. Clark: We have received the Resolution of Intention to amend your CalPERS contract to provide Section 21362.2 (3% @ 50 Full formula) for local police members only. Enclosed are the following documents necessary to complete the proposed amendment: 1. Amendment to Contract. 2. Certification of Final Action of Governing Body (Form CON-5). Your agency adopted the Resolution of Intention on April 24, 2001, therefore, the earliest date the final Resolution may be adopted is May 14, 2001, pursuant to Government Code Section 20471. THERE ARE NO EXCEPTIONS TO THIS LAW. The effective date of this amendment cannot be earlier than the first day of a payroll period following the effective date of the Ordinance. Please insert the effective date on the last page of the Amendment to Contract. The following documents must be returned to this office. ORIGINAL SIGNATURES ARE REQUIRED ON ALL DOCUMENTS. VA 1. Amendment to Contract, two original executed sets. 2. Ordinance, original or certifie copy. 2 3. Certification of Final Action Governing Body (CON-5), original. California Public Employees’ Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 City of Carlsbad -2- May 4,200l Please notify your personnel/payroll staff, as of the effective date of the amendment to the contract: (For assistance in payroll reporting, contact our Training and Assistance Unit at (916) 326-3420.) l The employer contribution rate will be 6.778% of reportable earnings for local safety members, if the effective date of the contract amendment is prior to July 1. This percentage is the total of your current employer contribution rate plus the change due to the plan amendment. Please do not retype the Amendment to Contract and/or agreement documents. Only documents provided by this office will be accepted. If you have a problem with any of the documents, please contact this office prior to presenting to your governing body for adoption. A copy of the contract will be returned for your records after it has been executed by CalPERS. Please contact me at (916) 326-3993 if you have any questions. Sincerelv, Employer Representative. Public Agency Contract Services AJC:td Enclosures cc: San Diego Regional Otfice May 22,200l Alice J. Cook CALPERS ACTUARIAL & EMPLOYER SERVICES DIV. PO BOX 942709 SACRAMENTO CA 94229-2709 Re: CalPERS contract amendment The Carlsbad City Council approved Ordinance No. NS-582 authorizing an amendment to the CalPERS safety contract impacting local police members on May 15,200l. Per your letter dated May 4, 2001 we are returning to you the following documents that have been executed: 1. Amendment to Contract, two (2) original sets 2. Certified copy of Ordinance NS-582 3. Certification of Final Action Governing Body (CON-5), original Please have Mr. Marzion execute the Amendment to Contract and send a filly executed copy to our office at the address below. Thank your for your assistance. Sincerely, Debra Doerfler v Senior Office Specialist Records Management Department/Office of the City Clerk Enclosures cc: Ms. Julie Clark, Human Resources Director Ms. Debbie Porter, Senior Management Analyst 1200 Carlsbad Village Drive l Carlsbad, CA 92008-1989 l (760) 434-2808 a9 CalPERS California Public Employees’ Retirement System Between the Board of Administration California Public Employees’ Retirement System and the City Council City of Carl&ad 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 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, January 7,1997 and June 14, 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 June 14, 1997, and hereby replaced by the following paragraphs numbered 1 through 14 inclusive: I. 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. 2. Public Agency shall participate in the Public Employees’ Retirement System from 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. 3. 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). 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. 6. The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous members 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 age 55 Full and Modified), 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local fire member shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). The required member contribution rate is 9% of reportable compensation. 9. Public Agency elected and elects to be subject to the following optional provisions: a. Sections 21624, 2 1626 and 2 1628 (Post-Retirement Survivor Allowance). 10. 11. 12. b. C. d. e. f. h i. i 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 21427 (Improved Nonindustrial Disability Allowance) for local miscellaneous members only. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members and local police members only. 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 21574 (Fourth Level of 1959 Survivor Benefits) for local fire members only. 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. 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 miscellaneous members and local police 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 fire 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. 13. 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. 14. 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 25th day of BOARD OF ADMINISTRATION PUBLIC EMPLOYEES’ RETIREMENT SYSTEM Cl BY KENNETH W. MARZION, CHIEF ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES’ RETIREMENT SYSTEM hot[ ad Witne/k&te ’ AMENDMENT PERS-CON-702A (Rev. 8\96) CERTIFICATION I STATE OF CALIFORNIA I 1 ss. COUNTY OF SAN DIEGO 1 I, KAREN KUNDTZ, Assistant City Clerk of the City of Carlsbad, County of San Diego, State of California, hereby certify that I have compared the foregoing copy with the original ORDINANCE NO. NS-582 dated May 15,2001, which original is now on file in my offIce: that the same contains a full, true tid correct transcript therefi-om and of the whole thereof. Witness my hand and the seal of said City of Carlsbad, this 22nd day of m 2001. (SEAL)