HomeMy WebLinkAbout1995-06-06; Municipal Water District; 283; Merger of CMWD into City of Carlsbad PERSXMWD - AGENDA -BILL c..&,:p:,
MERGER OF THE CARLSBAD MUNICIPAL WATER
DISTRICT INTO THE CITY OF CARLSBAD PUBLIC
EMPLOYEE RETIREMENT SYSTEM (PERS) PLAN CITY MGR..~ r RECOMMENDED ACTION:
Adopt Resolution No. 302 approving an agreement authorizing the merger of the
City of Carlsbad and Carlsbad Municipal Water District PERS contracts.
ITEM EXPLANATION
In January 1990, the Carlsbad Municipal Water ‘District became a subsidiary district of the
City of Carlsbad in order to provide a unified water service operation within the District’s
service area. The City and the District approved an Operating Agreement reflecting the
new organizational relationship on June 25, 1991. As part of the agreement, all District
employees became City employees, retaining salaries and benefits.
District employees became City employees on February 17, 1992 and were added to the
City Public Employee Retirement System (PERS) plan. State Government Code Section
20567.1 authorizes the merger of the two PERS plans. PERS has prepared the
documents necessary to merge the District PERS plan into the City plan as of February
17, 1992.
The District and City PERS plans are very similar. Former District employees maintained
the same or better PERS benefits, with the exception of survivor benefits (benefits paid
to eligible survivors of a member who dies prior to retirement). The City PERS contract
is scheduled for amendment which will bring 1959 survivor benefit coverage up to the
District’s previous level.
Optional benefits provided by the City’s plan will be applied only to future service credit.
At retirement, monthly PERS benefits for former District employees will be calculated
under the District plan to February 17, 1992 and as City employees thereafter.
FISCAL IMPACT
PERS completed an actuarial valuation of the merger of the two plans, with optional
benefits provided by the City’s plan applied only to future (since February 17, 1992)
service credits for former District employees. Post-retirement survivor allowance is an
example of City optional benefits applying only to future service credits for former District
employees. Former District retirees would receive the benefit only on the City portion of
their PERS retirement allowance.
Merger of the District and City PERS plans will result in a decrease to the PERS
miscellaneous employer rate. The actuarial valuation shows a 0.246% decrease to the
City’s PERS employer contribution rate for local miscellaneous members which will be
reflected in the PERS rates effective July 1, 1996. All non-safety regular employees are
included in the PERS miscellaneous member category, including general employees,
management, and elected officials. Beginning in FY 1996-97, the annual cost reduction
is approximately $35,000.
EXHIBITS
1. Resolution No. q%l.bL.-, approving agreement authorizing merger of City of
Carlsbad and Carlsbad Municipal Water District PERS contracts.
-
RESOLUTION NO. 902
AGREEMENT AUTHORIZING THE MERGER
OF THE CONTRACTS
OF THE
CITY COUNCIL
OF THE
CITY OF CARLSBAD
AND THE
BOARD OF DIRECTORS
OF THE
CARLSBAD MUNICIPAL WATER DISTRICT
WITH THE
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
WHEREAS, the City Council of the City of Carlsbad and the Board of Directors of the
Carlsbad Municipal Water District entered into contracts with the Board of
Administration, Public Employees’ Retirement System, effective January 1,
1956 and March 1, 1963 respectively, providing for participation of their
employees in said System; and
WHEREAS, the Carlsbad Municipal Water District will not have any employees; and
WHEREAS, the City of Carlsbad will assume functions of the District and employ all of
the employees of the Carlsbad Municipal Water District; and
WHEREAS, Section 20567.1 of the Government Code authorizes a merger of contracts
for participation in the Public Employees’ Retirement System; and
WHEREAS, The Public Employees’ Retirement System has proposed an Agreement to
be accepted and executed by the governing bodies of the aforementioned
public agencies to provide for merger of the contract between the Board
of Directors of the Carlsbad Municipal Water District and the Board of
Administration, Public Employees’ Retirement System, into the contract
between the City Council of the City of Carlsbad and said Board;
NOW, THEREFORE BE IT AGREED, that the governing bodies of the aforementioned
public agencies authorize, and do hereby authorize, an Agreement
between the City Council of the City of Carlsbad, the Board of Directors of
the Carlsbad Municipal Water District, and the Board of Administration of
the Public Employees’ Retirement System to merge the contract between
said Board and the Carlsbad Municipal Water District into the contract
between said Board and the City of Carlsbad as authorized by Section
20567.1 of the Government Code; and
BE IT FURTHER AGREED, that the presiding officer of the governing body of each of the aforementioned contracting agencies is hereby authorized, empowered, and directed to
execute said Agreement for and on behalf of the respective agency.
Witness our bands this 7th day of June ,192.
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
BY
CHIEF ACTUARY
ACTUARIAL OFFICE
PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
Presiding Officer
Attest:
Clerk
CLAUDE A. LEWIS, Mayor
Attest:
KAREN R. KUNDfFf, Assistant City Clerk
CLAUDE A. LEWIS, President
Assistant Secretary
PERS-CON-39 (Rev. 3195)