HomeMy WebLinkAbout2010-06-29; City Council; 20293; Amend CALPERS Contract Local Safety MembersCITY OF CARLSBAD - AGENDA BILL
AB# 20,293
MTG. 6/29/10
DEPT. HR
AMENDMENT TO CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
(PAT PFRS'l PONTR APT TMPAPTTNO T DP AT
SAFETY MEMBERS
DEPT. HEADcxir^—
CITY ATTY. <^
CITY MGR. hj.
RECOMMENDED ACTION:
1 . Adopt Resolution No. 2010-171 a resolution of intention to approve an amendment to
the contract between the Board of Administration of the California Public Employees'
Retirement System (CalPERS) and the City of Carlsbad.
2.Introduce Ordinance No.
safety members.
cs-093 amending the CalPERS contract impacting local
ITEM EXPLANATION:
Under the City's contract with CalPERS, all sworn police and fire safety employees (i.e., those
represented by the Carlsbad Police Officers' Association (CPOA), the Carlsbad Firefighters'
Association, Inc. (CFA), the Carlsbad Police Management Association (CPMA) and safety
employees in the unrepresented management group) are combined into one "safety" contract.
On the dates listed below, the City Council approved resolutions which directed staff to initiate
an amendment of the City's safety contract with CalPERS to create a 2nd tier retirement plan
that includes the 2% at 50 retirement benefit (California Government Code Section 21362) and
Three Year Final Compensation benefit (California Government Code Section 20037) for
employees entering membership for the first time in a City of Carlsbad safety classification after
the effective date of the amendment. This Council direction affected the following bargaining
units.
Date City Council Directed
Amendment to CalPERS Benefit
May 18, 2010
June8, 2010
June 29, 2010
Employee
Group
CFA, Inc.
CPOA
CPMA
Under the City's Management Compensation and Benefits plan, Management employees who
are considered fire safety employees are subject to the same retirement formula as that
provided to employees represented by the CFA, Inc. As such, the future retirement plan
changes were approved for fire safety management employees on May 18, 2010.
DEPARTMENT CONTACT: Employee name 760-602-2441 Debbie.Porter@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
XD
D
D
D
CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER - SEE MINUTES
D
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Page 2
The City Council needs to take two actions to implement the proposed revisions to the
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 July 27, 2010. The effective date of the Ordinance would be August 27, 2010. The effective
date of the contract amendment would be October 4, 2010.
FISCAL IMPACT:
There is no immediate fiscal impact associated with implementing the changes to the retirement
provisions as described above. It is estimated that the City will realize long-term savings of
$2,100,000 over the next ten years as a result of this action, but employee turnover and other
factors will influence the extent of this projected savings.
ENVIRONMENTAL IMPACT:
This amendment is statutorily exempt from CEQA pursuant to CEQA Guidelines Section
15060(b)(5).
EXHIBITS:
1. Resolution No. 2Q1Q-171 including its Exhibit
2. Ordinance No. cs-oaa
3. Certification of Governing Body's Action
4. Certification of Compliance with Government Code Section 20475
2010-171
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
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 Section 20475 (Different Level of Benefits).
Section 21362 (2% @ 50 Full formula) and Section 20037
(Three Year Final Compensation) are applicable to local
safety members entering membership for the first time in
the safety classification after the effective date of this
amendment to contract.
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 Administration of the
Public Employees' Retirement System, a copy of said amendment being
attached hereto, as an "Exhibit" ayfa bythis reference matfeja part hereof.
te adopted and approved
(Amendment)
CON-302 (Rev. 4/96)
CalPERS
EXHIBIT
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Carlsbad
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 1, 1997, June 14, 1997, June 25, 2001, December 22, 2003, and December
20, 2004 which provides for participation of Public Agency in said System, Board and
Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective December 20, 2004, and hereby replaced by the following paragraphs
numbered 1 through 16 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 60 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. Public Agency agrees to indemnify, defend and hold harmless the
California Public Employees' Retirement System (CalPERS) and its
trustees, agents and employees, the CalPERS Board of Administration,
and the California Public Employees' Retirement Fund from any claims,
demands, actions, losses, liabilities, damages, judgments, expenses and
costs, including but not limited to interest, penalties and attorneys fees
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 than
the retirement benefits, provisions or formulas provided under
the Public Agency's prior non-CalPERS retirement program.
(b) Public Agency's election to amend this Contract to provide
retirement benefits, provisions or formulas that are different than
existing retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than
CalPERS to provide retirement benefits, provisions, or formulas
that are different than the retirement benefits, provisions or
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 States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to
section 365, of Title 11, of the United States Bankruptcy Code
or any similar provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CalPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of
Public Agency or involuntarily pursuant to the Public Employees'
Retirement Law.
f'L
(g) Changes sponsored by Public Agency in existing retirement
benefits, provisions or formulas made as a result of
amendments, additions or deletions to California statute or to
the California Constitution.
4. 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).
5. 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.
6. 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.
7. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment before and not on or after December 20, 2004 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).
8. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members in
employment on or after December 20, 2004 shall be determined in
accordance with Section 21354.3 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 (3% at age 60 Full and Modified).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member entering
membership in the safety classification on or prior to the effective date of
this amendment to contract shall be determined in accordance with
Section 21362.2 of said Retirement Law (3% at age 50 Full).
10. The percentage of final compensation to be provided for each yearxrf
credited service as a local safety member entering membership for the
first time in the safety classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21362 of said Retirement Law (2% at age 50 Full).
11. Public Agency elected and elects to be subject to the following optional
provisions:
a. Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance).
b. 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. Section 20042 (One-Year Final Compensation).
e. Section 21427 (Improved Nonindustrial Disability Allowance) for
local miscellaneous members only.
f. Section 21024 (Military Service Credit as Public Service).
g. Section 21573 (Third Level of 1959 Survivor Benefits) for local
miscellaneous members and local police members only.
h. Section 21583 (Additional Opportunity to Elect 1959 Survivor
Benefits).
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).
j. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local fire
members only.
n i '*" *'"•".r Uu..; «.wx_
k. Section 20475 (Different Level of Benefits). Section 21362 (2% @
50 Full formula) and Section 20037 (Three-Year Final
Compensation) are applicable to local safety members entering
membership for the first time in the safety classification after the
effective date of this amendment to contract.
12. 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.
13. 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.
14. 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.
15. 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.
16. 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 day of ,
BOARD OF ADMINISTRATION CITY OF COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF CARLSBAD
BY : BY
LORI MCGARTLAND, CHIEF PRESIDING OFFICER
EMPLOYER SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT ER# 0338
PERS-CON-702A
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ORDINANCE NO. CS-093
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 a 2nd tier retirement plan that includes the 2% at
50 retirement benefit (Section 21362) and Three Year Final Compensation benefit
(Section 20037) for employees entering membership for the first time in a City of
Carlsbad safety classification effective October 4, 2010.
NOW, THEREFORE, the City Council of the City of Carlsbad ordains as follows:
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" to
Resolution No. 2010-171
The Mayor of the City of Carlsbad is hereby authorized, empowered, and
directed to execute said amendment for and on behalf of said Agency.
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.
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1 INTRODUCED AND FIRST READ at a regular meeting of the Carlsbad City
2 Council on the day 29tb of JUNE , 2010, and thereafter
3 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
4 of the City of Carlsbad on the day of
5 2010, by the following vote:
6 "
7 M
AYES:8
9 NOES:
10 ABSENT:
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CLAUDE A LEWIS, Mayor
15 ATTEST:
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LORRAINE M. WOOD, City Clerk18 (SEAL)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF GOVERNING BODY'S ACTION
I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the
of thecKi Coo A O
« fnnve»rni(governing body)
on
(date)
(public agency)
(JC^J-s-v-^- /) ~A
Clerk/Secretary (J
Title
PERS-CON-12 (rev. 1/96)
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Actuarial and Employer Services Branch
Public Agency Contract Services
P.O. Box 942709
Sacramento, CA 94229-2709
(888) CalPERS (225-7377)
CERTIFICATION OF COMPLIANCE WITH
GOVERNMENT CODE SECTION 20475
I hereby certify that the 0 (4vi C..OOA OlO of the
'(governing body)
\
oP COJT (sh Q d
(public agency)
has fully discharged all of the obligation imposed by Chapter 10 (commencing with
Section 3500) of Division 4 of Title 1, Government Code.
By
Title
Date
PERS-CON-30 (Rev. 1/96)