HomeMy WebLinkAboutAgenda Report - December 20, 1989 (81)l .
C -bNCIL C0MMUNIClh-i I0N
TO: THE C l T Y OJJNCIL
FROM: THE CITY MANAGER'S OFFICE
COUNCIL MEEING LATE
DECEMBER 20, 1989
SUBJECT: AMEND CITY OF LCU CONTRACT )MR -1 THE STATE OF CALY(RNfA
FJBLIC EMPLOYEES' REEREVlE1T SYSIFM (PERS)
PREPARED BY:
Assistant City Manager
RECOMMENDED ACTION:
The City Council approve a resolution of intention to
amend the contract between the Public Employees'
Retirement System (PERS) and the City of Lodi I
follows:
To provide the third level of 1959 Survivor
Benefits for local safety members and local police
members.
Introduce an ordinance to amend our contract.:..
Authorize the release of 1959 survivor benefit:.
assets into the 1959 survivor benefit pool.
BACKGROUND
The 1959 Survivor Benefit member is structured to
provide a monthly benefit forTe workers and their.,-
heir
families who died prior to retirement. It is geared
families
to follow the survivor benefits under social
security.
x
Sometime later an increase to the base benefit was authorized and is included in .:.
our present contract.
In April 1989 the Board of Administration authorized, a
third level of benefits.
Per Month
Spouse age FC or older, or one child alone $350
Spouse with one
child or two children alone $700
Spouse with two
or more children or f
three children alone $840
VIS have adequate reserves in the fund to pay for this additiona benefit for 22
years.
' . k
_1\
AMEND PEKS CONTRACT
December 20, 1989
Page - 2 -
rte.
The City negotiated this benefit with tije Lodi Police Officers' Association. I n
return the Police Association agreed to modify their health insurance plan. The
t bargaining units representing non -police and fire employees previously had
modifie their health insurance plan. The Fire Department unit was offered this
planar at that time refused. It is anticipated that they will be included in
our.;nex set of negotiations.
` The ami mpanying resolutions, agreements and ordinance are requirements of the
Board of Administration of PERS. Their time requirements do not coincide with
ours; therefore, the 'Final action on the ordinance w i I I not be taken u nti I the
Council meeting of January 17, 1990.
1��ect�ull �ubrYvttet
�4erry L. Glenn
Assistant City Manager
JLG:br
Attachments
UNCI 6
RESOLUTION NO. 89-188
RESOLUTION OF 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 LODI
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BE 1T BY THE IM MY CJJNM AS FOLLOWS:
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 foi the
procedure by which said public agencies may elect to subject
themselves and their employees to amendments to said Law; and
VffRFA� one of the steps in the procedure to amend this contract i s 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 21382.4 (Third Level of 1959 Survivor Benefits) for
local miscellaneous members and local police 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 the said governing body and the Board of
Administration of the Public Employees' Retirement System, 'a doPY of
said amendment being attached hereto, as an "Exhibit" and. by this
reference made a part thereof.
Date: December 20, 1989
I hereby certify that Resolution No. 89-188 was passed and adopted by the City
Council o f the City of Lodi i n a regular meeting held December 20, 1989 by the
following vote:
Ayes: Council Members - Hinchman, Olson, Pinkerton and Snider
(Mayor)
Noes: Council Members - None
Absent: Council Members - Reiff
Jennifer M: Perrin
Deputy City Clerk
for Alice M. Reimche
City Clerk
Resolution No. 89-188
UNC 06
AGREEMENT AUIHRR0C THE RELEASE OF 1959 SUZVBM BEFITS
ASSETS AND LIABILITIES M THE THRD LEVEL 1959 SURVIVOR
BENEFIT POOL BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC
. EMPLOYEES' RETIRENENT SYSTEM AND THE CITY 9F ' J•I , ,QF ,�QjkI
g
e:
f BE IT BY THE LCDI CITY Oal-4CL AS FOLLOWS:
i.
P WHEREAS, Che City Council of the City of Lodi has adopted a Resolution of
Intention to include in its contract with the Board of Administration
i Public Employees' Retirement System, pursuant to Government Cote
Sections 21380-21387, including Government Code Section 21382.4, tlw
i = Third Level of 1959 Survivor Benefits for local miscellaneous membegs
and local police members only; and
WHEREAS, Government Code Section 21382.4, requires all assets and liabilitie§
of all contracting agencies subject to this section, and thein
employees who are covered by this section, to be pooled into,. a singly
account;
NOW THEREFORE BE IT AGREED:
Accumulated and/or future contributions required of the City of Lodi
and its covered employees are to be released, pursuant to the
provisions of Government Code Section 21382.4, to a single account
referred to herein as the Third Level 1959 Survivor Benefits Pool.
BOARD OF AD1VX4STZA'IICl'\; CITY OJ IVOL
PUBLIC EMPLOYEES' REEREVIENT SYSIEN4 OF THE
LUUI
BY
''..CHIEF, CONTRACT SERVICES DVIS ON
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Date:
COUNC706
ATTEST:
BY
MHN RANDY SNIDER, M
Date:
Alice Reimche, CTty Clerk
C O P Y
off" � ,.
AMENDMENT To CONTRACT
ti V BETWEEN THE
BOARD OF ADMINXSTRATION
OF HE
PUBLIC EMPLOYEES' T
RETIREMENZ SYSTEM
AND THE
CITY COUNCIL
OF TEE
CI'"Y ov LOD-
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 June 1, 2966, and witnessed April 27, 1966, and as amended effective
May 1, 1970, July 1, 1973 and July 1, 1977, which provides for participation of
Public Agency in said System, Board and Public Agency hereby agree as follows:
A.
Paragraphs 1 through 12 are hereby stricken from said contract as executed
effective July 1, 1977, and hereby replaced by the following Paragraphs
numbered 1 through 12 inclusive:
1. All words and terms used herein which are defined in the Public .
t
Employees' Retirement Law shall have the meaning af, defined therein-
un1_sa ocherwise specifically provided. "Normal retirement age"
shall mean age 60 for local miscellaneous members and age SA fov'1ocai
I,
safety members.
2. Public Agency shall participate in the Public Employees' Retirement
j
System from and after June 1, 1966 making its employees as h—4inafter.
fthe
provided, members of said System subject to all provisions of-the.-
Public Employees' Retirement Law except such as apply only on election.
Public
`
of a contracting agency an6 are not pro-rided 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 contract—
ing agency.
's
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:'"
y
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
loca3 miscellaneous (Ttembers},
* * * C 0 P Y .
4.
In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not
bacome members of said Retirement System:
•PESSONS
CO�MFNSATED ON AN EOURLY BASIS WEIO
ARE HIRED JUNE 1, 1966 OR THEREhFTER, AND
t<
ELEC"HVE OPPICIALS.
b-
Assets heretofore accumulated with respect to members in the local
retirement system have been transferred to the Public Employees'
Retirement System and applied against the liability for prior service
r�
incurred thereunder. That portion of the assets so transferred
!�.
representing the accumulated contributions (plus interest thereof)
'J
required of the employees under said, local system has been credited to
�t
the individual membership account of each such employee t-Ider the
Public Employees' Retirement System.
6.
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 21251.13 of
said Retirement Law subject to the reduction provided therein for
service prior to June 30, 1977, termination of Social Security, for
members whose service has been included in Federal Social Security (2%
at age 60 Full and Modified) . }'
7.
The percentage of fir.al compensation to be provided for each year o
credited prior and current service as a local safety member shall be
determined in accordance with Section 21252.01 of said Retirement Law
(2% at age 50 Full).'
8.
The following additional provisions of the Public Employees'
R:tirement Law, which apply only upon election of a contracting i
agency, shall apply to the Pcblic Agency ant its employees:
a. Section 21361.5 (Local System Service Credit).
b. Section 21222.1 (Special 5% Increase - 1970). Legislation;'
repealed said Section effective January 1, 1950. 3
C. Sections 21263 and 212631,1 (Post -Retirement Survivor Allowance)
for local miscellaneous members only.
d. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits) For local fire members
only.
e. Sections 21380 - 21387 (1959 Survivor Benefits) including Section
21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4
(Third Level of 1959 Survivor Benefits) for local miscellaneous
• members only.
C O P Y
f. Sections 21380 - 21387 (1959 Survivor Benefits; including Section
21382.4 (Third Level of 1959 Survivor Benefits) for local police
members only.
g, Section 21298 (Increased Nan -Industrial Disability Allowance) for
local miscellaneous members only.
9. Puhlic P.gencY, in accordance with Government Code Section 20740,
ceased to be an "employer" Col purposes of Section 20759 effective on
July 1, 1977. Accumulated contributions of Public Agency shall he
fixed and determined as provided in Government Code Section 20759, and
accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20759.
10. Public Agency shall contribute. to said Retirement System as follows:
With respect to local miscellaneous members, the agency shall
contribute the following percentages of salaries earned as
members of said Retirement System:
(1) 0.876 percent until June 30, 2000 on account Of the
liability for prior service benefits. (Subject to annual
change.)
(2) 7.339 percent until June 30, 2000 on account of the
liability for current service benefits. (C_: -,act to annual
chaage. )
With respect to local safety members, the agency shall contribute
the following percentages of salaries earned as members of said {
Retirement System:
i
(1) 4.664 p.,E ,ent until June 30, 2000 on account` of the
liability,= for prior service benefits. (Subject to annual
change.)
(2) 13.056 percent until June 30, 2000 on account of the
liability for current service benefits. (Subject to annual
change.)
•
C. Public Agency shall contribute $2.50 per employee, per month on
account of the liability for the 1959 Survivor Benefits provided
under Section 21382.4 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 beneficiaries of all local
miscellaneous members and local police members.
c o p y
d. A reasonable amount, as fixed by the Board, payable in one in-
stallment within 60 days of date of contract to cover'the costs
of administering said System as it affects the employees of
Public Agencyx not including the costs of special valuations or
of the periodic investigation and valuations required by law.
e. A reasonable amount, as fixed by the Board, payable in one in-
stallment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs ofr.
the periodic investigation and valuations required by law.
11. 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.
12. 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
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correct amount of contributions is paid for any period, proper .
adjustment shall be made in connection with subsequent remittances.
Adjustments on accc•,,nt of errors in contributions required of any
employee may be made by direct payments between the employee and the.s:
Board.
f y'
B. This amendment shall be effucrive,;_q►` the
19�`�1►
BOARD OF ADMINISTRATION `�bt
PUBLIC EMPLOYEES' RETIREMENT
BY ��li•
CHIEF, CONTRACT ICES DIVISION
PUBLIC EMPLOYE RETIREMENT SYSTEM
�Jv
PERS-CON-702 (AMENDMENT)
(Rev. 6/88)
CITY COUNCIL
OF THE
CITY OF LODI
BY
Presiding Officer
G
Witness DateQG
Attest:
Clerk
_ . Y OF LODI
JERRYL'-GLEN N HALL. 221 WEST PINE STREET
CALL BOX 3006
THOMAS A. PETERSON
City Manager
ALICE M REIMCHE
City Clerk
BOB McNATT
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A ML 153