HomeMy WebLinkAboutAgenda Report - March 6, 2019 H-01TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
AGENDA TITLE: Adopt Resolution of Intention Approving an Amendment to the Contract Between
the Board of Administration of the California Public Employees' Retirement System
(PERS) and the City of Lodi and Introduce Ordinance Amending the Contract
Between PERS and the City of Lodi With Regard to Providing Government Code
Section 20516 (Employees Sharing Additional Cost) of 3 Percent for Local
Miscellaneous Members in the Unrepresented Confidential Mid -Management
Group, Unrepresented Confidential General Services Group, Unrepresented
Executive Management Group, Unrepresented Council Appointees Group, Lodi
City Mid -Management, AFSCME Maintenance and Operators Unit Local 146, Lodi
Police Dispatchers Group and 2 Percent for Local Miscellaneous members in the
AFSCME General Services Unit Local 146; 3 Percent for Local Fire Members in
the Lodi Professional Firefighters and Lodi Fire Mid -Management; and 3 Percent
for Local Police Members in the Lodi Police Mid -Management and Police Officers
Association of Lodi (Classic Members)
MEETING DATE: March 6, 2019
PREPARED BY: Human Resources Manager
RECOMMENDED ACTION: Adopt Resolution of Intention approving an amendment to the
contract between the Board of Administration of the California Public
Employees' Retirement System (PERS) and the City of Lodi and
introduce ordinance amending the contract between PERS and the City of Lodi with regard to providing
Government Code Section 20516 (Employees Sharing Additional Cost) of 3 percent for local
miscellaneous members in the Unrepresented Confidential Mid -Management Group, Unrepresented
Confidential General Services Group, Unrepresented Executive Management Group, Unrepresented
Council Appointees Group, Lodi City Mid -Management, AFSCME Maintenance and Operators Unit Local
146, Lodi Police Dispatchers Group and 2 percent for Local Miscellaneous members in the AFSCME
General Services Unit Local 146; 3 percent for Local Fire Members in the Lodi Professional Firefighters
and Lodi Fire Mid -Management; and 3 percent for Local Police Members in the Lodi Police Mid -
Management and Police Officers Association of Lodi (Classic Members)
BACKGROUND INFORMATION: Recently, the City negotiated new labor agreements (MOUs or
Statements of Benefits) with local miscellaneous and safety
bargaining groups, which includes represented and unrepresented
employees. The parties mutually agreed to enter into cost-sharing agreements whereby employees will
pay a percentage of the employer's normal contribution toward CaIPERS, pursuant to Government Code
Section 20516. As such, the City must formally amend its contract with CaIPERS to include these new
cost-sharing provisions.
APPROVED:%owlVIM}
Steve chwabaue , City Manager
The following table reflects the individual employee groups and the percentage of cost-sharing agreed
upon:
SAFETY MEMBERS
Lodi Professional Firefighters
3% cost sharing
Lodi Fire Mid -Management
3% cost sharing
Police Officers Association of Lodi — Classic members
3% cost sharing
Lodi Police Mid -Management
3% cost sharing
MISCELLANEOUS MEMBERS
Confidential Mid -Management
3% cost sharing
Confidential General Services
3% cost sharing
Lodi City Mid -Management
3% cost sharing
AFSCME - General Services
2% cost sharing
AFSCME - Maintenance and Operators
3% cost sharing
3% cost sharing
Executive Management (excluding Council Appointees)
Council Appointees
3% cost sharing
Lodi Police Dispatchers
3% cost sharing
There are various steps in the process to amend the contract between CaIPERS and the City. The first
step is to adopt the Resolution of Intention and to introduce the Ordinance amending the contract. The
second step is the final reading and adoption of the Ordinance, scheduled to occur on April 17, 2019. If
adopted, the contract will be amended effective May 20, 2019. Employees will begin their cost-sharing
deduction as of May 20, 2019.
FISCAL IMPACT:
The proposed action reduces the City's payroll obligation by reducing City
contributions to CaIPERS on employee's behalf. The estimated annual
amount by bargaining group is as follows:
SAFETY MEMBERS
Lodi Professional Firefighters
3% cost sharing
128,900
Lodi Fire Mid -Management
3% cost sharing
17,000
Police Officers Association of Lodi — Classic members *
3% cost sharing
72,000
Lodi Police Mid -Management
3% cost sharing
64,600
TOTAL ESTIMATED ANNUAL SAVINGS (SAFETY)
282,500
MISCELLANEOUS MEMBERS
Confidential Mid -Management
3% cost sharing
23,300
Confidential General Services
3% cost sharing
8,500
Lodi City Mid -Management
3% cost sharing
2% cost sharing
113,750
118,400
AFSCME - General Services
AFSCME - Maintenance and Operators
3% cost sharing
136,300
Executive Management (excluding Council Appointees)
3% cost sharing
32,900
Council Appointees
3% cost sharing
14,100
Lodi Police Dispatchers
3% cost sharing
37,800
485,050
TOTAL ESTIMATED ANNUAL SAVINGS (MISC)
TOTAL ESTIMATED ANNUAL SAVINGS (CITY WIDE)
767,550
* Additional cost savings of $18,000 is estimated for the POA PEPRA members agreed upon
payroll deduction that does not require a PERS amendment.
FUNDING AVAILABLE: Not applicable.
Adele Post,
Human Resources Manager
e).„—
And rew
Andrew Keys, "
Deputy City Manager/Internal Services Director
RESOLUTION NO. 2019-35
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 LODI
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 20516 (Employees Sharing Additional
Cost) of 3% for local miscellaneous members in the
Unrepresented Confidential Mid -Management group,
Unrepresented Confidential General Services group,
Unrepresented Executive Management group, Unrepresented
Council Appointees group, Lodi City Mid -Management,
AFSCME Maintenance and Operators Unit Local 146, Lodi
Police Dispatchers group and 2% for local miscellaneous
members in the AFSCME General Services Unit Local 146; 3%
for local fire members in the Lodi Professional Firefighters
and Lodi Fire Mid -Management; and 3% for local police
members in the Lodi Police Mid -Management and 3% for
classic local police members in the Police Officers Association
of Lodi
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" and by this reference made a part hereof.
toIlci
Date adopted and approved
(Amendment)
CON -302 (Rev. 3/9/2016 rc)
By:. Presiding Officer
'1/texA-k ablAA12a*r‘_,
Title
Dated: March 6, 2019
I hereby certify that Resolution No. 2019-35 was passed and adopted by the City Council
of the City of Lodi in a regular meeting held March 6, 2019, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
2019-35
`3---e.AALGute
NIFEF31jli. FERRAIOLO
ity Clerk
Ca1PERS
California
Public Employees' Retirement System
AMENDMENT T CONT
r�
EXHIBIT A
ACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Lodi
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 June 1,
1966, and witnessed April 27, 1966, and as amended effective July 6, 1966, May 1, 1970,
July 1, 1973, July 1, 1977, April 1, 1991, July 7, 1993, June 30, 1996, November 15,
1998, June 12, 2000, May 17, 2003, June 17, 2010 and December 24, 2012 which
provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective December 24, 2012, and hereby replaced by the following paragraphs
numbered 1 through 18 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 classic
local miscellaneous members, age 62 for new local miscellaneous
members, age 50 for classic local safety members entering membership in
the safety classification on or prior to December 24, 2012, age 55 for classic
local safety members entering membership for the first time in the safety
classification after December 24, 2012, and age 57 for new local safety
members.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement System
from and after June 1, 1966 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 (CaIPERS) and its trustees, agents
and employees, the CaIPERS 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 attorney 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-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
Public Agency's agreement with a third party other than CaIPERS
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.
(c)
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).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. PERSONS COMPENSATED ON AN HOURLY BASIS WHO ARE
HIRED JUNE 1, 1966 OR THEREAFTER.
6. 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 incurred
thereunder. That portion of the assets so transferred which represent the
accumulated contributions (plus interest thereof) required of the employees
under said local system has been credited to the Individual membership
account of each such employee under the Public Employees' Retirement
System.
7. Benefits paid to pensioners and annuitants under the local system on the
effective date of the contract were recalculated, as authorized by Section
20481 of the Government Code, to conform with benefits applicable to
persons retiring after the effective date of the contract except that no benefit
which would have been payable under the continuation of the local system
shall be reduced.
8. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
shall be determined in accordance with Section 21354 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 55 Full and Modified).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member entering
membership in the safety classification on or prior to December 24, 2012
shall be determined in accordance with Section 21362.2 of said Retirement
Law (3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a classic local safety member entering
membership for the first time in the safety classification after December 24,
2012 shall be determined in accordance with Section 21363.1 of said
Retirement Law (3% at age 55 Full).
LEASE DO NOT SIGN "EXHIBIT ONLY"
12. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21536 (Local System Service Credit Included in Basic Death
Benefit).
b. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
c. Sections 21624. and 21626 (Post -Retirement Survivor Allowance) for
local miscellaneous members only.
d. Section 21573 (Third Level of 1959 Survivor Benefits).
e. Section 21427 (Improved Nonindustrial Disability Allowance) for
local miscellaneous members only.
f. Section 20042 (One -Year Final Compensation) for classic local
safety members entering membership on or prior to December 24,
2012.
g. Section 20903 (Two Years Additional Service Credit).
h, 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).
i. Section 20965 (Credit for Unused Sick Leave).
j.
Section 20938 (Limit Prior Service to Members Employed on
Contract Date) for elected officials employed on November 15, 1998.
k. Section 21024 (Military Service Credit as Public Service).
I. Section 20475 (Different Level of Benefits): Section 21363.1 (3% @
55 Full forumula) and Section 20037 (Three - Year Final
Compensation), are applicable to classic local safety members
entering membership for the first time with this agency in the safety
classification after Decemeber 24, 2012.
m. Section 20516 (Employees Sharing Additional Cost):
PLEASE DO NOT SIGN "EXHIBIT ONLY"
From and after the effective date of this amendment to contract, 3%
for local miscellaneous members in the Unrepresented Confidential
Mid -Management group, Unrepresented Confidential General
Services group, Unrepresented Executive Management group,
Unrepresented Council Appointees group, Lodi City Mid -
Management, AFSCME Maintenance and Operators Unit Local 146
and Lodi Police Dispatchers group.
From and after the effective date of this amendment to contract, 2%
for local miscellaneous members in the AFSCME General Services
Unit Local 146.
From and after the effective date of this amendment to contract, 3%
for local fire members in the Lodi Professional Firefighters and Lodi
Fire Mid -Management unit.
From and after the effective date of this amendment to contract, 3%
for local police members In the Lodi Police Mid -Management unit.
From and after the effective date of this amendment to contract, 3%
for classic local police members in the Police Officers Association of
Lodi.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CaIPERS Actuarial Valuation for the relevant fiscal year. If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Rate for the relevant fiscal year.
14. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
January 1, 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.
15. 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.
16. 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 safety members.
b. 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.
c. 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.
17. 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.
18. 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 Tess 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
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETI. MENT SYSTEM
BY
ARNITA PAIGE, CHI I
PENSION CONTR4 S AND PREFUNDING
PROGRAMS DIVLSIDN
PUBLIC EMPLCAPI S' RETIREMENT SYSTEM
4
AMENDMENT CaIPERS ID 46448562990
PERS-CON-702A
day of
CITY COUNCIL
CITY OF LODI
BY
PRESIDING OFFER
GJ
Witneskyae
Atteti
Clerk
Approved ae to Form:
JANICE D. MAGDICH
City Attorney
ORDINANCE NO. 1961
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LODI AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF LODI AND
THE BOARD OF ADMINISTATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
THE CITY COUNCIL OF THE CITY OF LODI DOES ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the City Council of the City of Lodi
and the Board of Administration, California Public Employees' Retirement System is hereby
authorized, a true and correct copy of the Amendment to Contract ("Amendment") is attached
hereto as Exhibit A and made a part hereof as though fully set forth herein.
SECTION 2. The Mayor of the City of Lodi is hereby authorized, empowered, and directed to
execute the Amendment for and on behalf of the City of Lodi.
SECTION 3. This Ordinance shall be published one time in the "Lodi News Sentinel", a daily
newspaper of general circulation printed and published in the City of Lodi, and shall take effect
thirty days from and after the passage and approval by the City Council of the City of Lodi.
Approved this day of April, 2019
ATTEST:
Mark Chandler
Mayor
JENNIFER M. FERRAIOLO
City Clerk
I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance
No. 1961 was introduced at a regular meeting of the City Council of the City of Lodi held
March 6, 2019, and was thereafter passed, adopted, and ordered to print at a regular meeting of
said Council held , 2019, by the following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
I further certify that Ordinance No. 1961 was approved and signed by the Mayor on the
date of its passage and the same has been published pursuant to law.
Approved as to Form: JENNIFER M. FERRAIOLO
City Clerk
JANICE D. MAGDICH
City Attorney
Ca1PERS
AMEN
California
Public Employees' Retirement System
MENT TO CONT
EXHIBIT A
ACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Lodi
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 June 1,
1966, and witnessed April 27, 1966, and as amended effective July 6, 1966, May 1, 1970,
July 1, 1973, July 1, 1977, April 1, 1991, July 7, 1993, June 30, 1996, November 15,
1998, June 12, 2000, May 17, 2003, June 17, 2010 and December 24, 2012 which
provides for participation of Public Agency in said System, Board and Public Agency
hereby agree as follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective December 24, 2012, and hereby replaced by the following paragraphs
numbered 1 through 18 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 classic
local miscellaneous members, age 62 for new local miscellaneous
members, age 50 for classic local safety members entering membership in
the safety classification on or prior to December 24, 2012, age 55 for classic
local safety members entering membership for the first time in the safety
classification after December 24, 2012, and age 57 for new local safety
members.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement System
from and after June 1, 1966 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 (CaIPERS) and its trustees, agents
and employees, the CaIPERS 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 attorney 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-CaIPERS retirement program.
(b) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CaIPERS
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.
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).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. PERSONS COMPENSATED ON AN HOURLY BASIS WHO ARE
HIRED JUNE 1, 1966 OR THEREAFTER.
6. 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 incurred
thereunder. That portion of the assets so transferred which represent the
accumulated contributions (plus interest thereof) required of the employees
under said local system has been credited to the individual membership
account of each such employee under the Public Employees' Retirement
System.
7. Benefits paid to pensioners and annuitants under the local system on the
effective date of the contract were recalculated, as authorized by Section
20481 of the Government Code, to conform with benefits applicable to
persons retiring after the effective date of the contract except that no benefit
which would have been payable under the continuation of the local system
shall be reduced.
8. The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
shall be determined in accordance with Section 21354 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 55 Full and Modified).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member entering
membership in the safety classification on or prior to December 24, 2012
shall be determined in accordance with Section 21362.2 of said Retirement
Law (3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a classic local safety member entering
membership for the first time in the safety classification after December 24,
2012 shall be determined in accordance with Section 21363.1 of said
Retirement Law (3% at age 55 Full).
LEASE DO NOT SIGN "EXHIBIT ONLY"
12. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21536 (Local System Service Credit Included in Basic Death
Benefit).
b. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980.
c. Sections 21624 and 21626 (Post -Retirement Survivor Allowance) for
local miscellaneous members only.
d. Section 21573 (Third Level of 1959 Survivor Benefits).
e. Section 21427 (Improved Nonindustrial Disability Allowance) for
local miscellaneous members only.
f. Section 20042 (One -Year Final Compensation) for classic local
safety members entering membership on or prior to December 24,
2012.
g.
Section 20903 (Two Years Additional Service Credit).
h. 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 20965 (Credit for Unused Sick Leave).
Section 20938 (Limit Prior Service to Members Employed on
Contract Date) for elected officials employed on November 15, 1998.
k. Section 21024 (Military Service Credit as Public Service).
I. Section 20475 (Different Level of Benefits): Section 21363.1 (3% @
55 Full forumula) and Section 20037 (Three - Year Final
Compensation), are applicable to classic local safety members
entering membership for the first time with this agency in the safety
classification after Decemeber 24, 2012.
m. Section 20516 (Employees Sharing Additional Cost):
PLEASE DO NOT SIGN "EXHIBIT ONLY"
From and after the effective date of this amendment to contract, 3%
for local miscellaneous members in the Unrepresented Confidential
Mid -Management group, Unrepresented Confidential General
Services group, Unrepresented Executive Management group,
Unrepresented Council Appointees group, Lodi City Mid -
Management, AFSCME Maintenance and Operators Unit Local 146
and Lodi Police Dispatchers group.
From and after the effective date of this amendment to contract, 2%
for local miscellaneous members in the AFSCME General Services
Unit Local 146.
From and after the effective date of this amendment to contract, 3%
for local fire members in the Lodi Professional Firefighters and Lodi
Fire Mid -Management unit.
From and after the effective date of this amendment to contract, 3%
for local police members in the Lodi Police Mid -Management unit.
From and after the effective date of this amendment to contract, 3%
for classic local police members in the Police Officers Association of
Lodi.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CaIPERS Actuarial Valuation for the relevant fiscal year. If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Rate for the relevant fiscal year.
14. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
January 1, 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.
15. 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.
16. 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 safety members.
b. 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.
c. 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.
17. 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.
18. 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
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RET L MENT SYSTEM
L-.
BY
ARNITA PAIGE, CHI
PENSION CONTR4JS AND PREFUNDING
PROGRAMS DIVLSIQN
PUBLIC EMPL'IS' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID #6448562990
PERS-CON-702A
day of
CITY COUNCIL
CITY OF LODI
BY
PRESIDING OFFI'R
GJ
Witnesk to
Atteti
Clerk
Approved as to Form:
JANICE D. MAGDICH
City Attorney
DECLARATION OF POSTING
ORDINANCE NO. 1961
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY
OF LODI AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM
On Thursday, March 6, 2019, in the City of Lodi, San Joaquin County, California, a
certified copy of Ordinance No. 1961 (attached hereto, marked Exhibit "A") was posted
in the Lodi City Clerk's Office.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on March 6, 2019, at Lodi, California.
Lino72'Jwc)
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
Pamela M. Farris Sylvia Dominguez
Deputy City Clerk Administrative Clerk
ord summaries\aaDecPost. doc
ORDINANCE NO. 1961
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
LODI AUTHORIZING AN AMENDMENT TO THE CONTRACT
BETWEEN THE CITY COUNCIL OF THE CITY OF LODI AND
THE BOARD OF ADMINISTATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
�EXNi�31T R�
THE CITY COUNCIL OF THE CITY OF LODI DOES ORDAIN AS FOLLOWS:
SECTION 1. That an amendment to the contract between the City Council of the City of Lodi
and the Board of Administration, California Public Employees' Retirement System is hereby
authorized, a true and correct copy of the Amendment to Contract ("Amendment") is attached
hereto as Exhibit A and made a part hereof as though fully set forth herein.
SECTION 2. The Mayor of the City of Lodi is hereby authorized, empowered, and directed to
execute the Amendment for and on behalf of the City of Lodi.
SECTION 3. This Ordinance shall be published one time in the "Lodi News Sentinel", a daily
newspaper of general circulation printed and published in the City of Lodi, and shall take effect
thirty days from and after the passage and approval by the City Council of the City of Lodi.
Approved this day of April, 2019
ATTEST:
Mark Chandler
Mayor
JENNIFER M. FERRAIOLO
City Clerk
I, Jennifer M. Ferraiolo, City Clerk of the City of Lodi, do hereby certify that Ordinance
No. 1961 was introduced at a regular meeting of the City Council of the City of Lodi held
March 6, 2019, and was thereafter passed, adopted, and ordered to print at a regular meeting of
said Council held , 2019, by the following vote:
AYES: COUNCIL MEMBERS —
NOES: COUNCIL MEMBERS —
ABSENT: COUNCIL MEMBERS —
ABSTAIN: COUNCIL MEMBERS —
1 further certify that Ordinance No. 1961 was approved and signed by the Mayor on the
date of its passage and the same has been published pursuant to law.
Approved as to Form:
JANICE D. MAGDICH
City Attorney
JENNIFER M. FERRAIOLO
City Clerk
Tito for going document is certified to boa correct
copy of the original on filo In the City Clerk's Ohba.
Pamela M. Paola
Deputy City Clerk, City of Lodi
�Y ` 12.(z) C •
Dated: 3/ -77/ g
PLEASE 00 NOT SIGN "EXHIBIT ONLY"
2. Public Agency shall participate in the Public Employees' Retirement System
from and after June 1, 1966 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 (CaIPEFIS) and its trustees, agents
and employees, the CaIPERS 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 attorney 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-CaIPERS retirement program.
(b) Any dispute, .disagreements claire, or proceeding (including.
-Without limitation aabitratlotr, administrative shearing, or litigation)
between Public. Agency and its empiayees (or' their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that :are different than such employees' existing
retirement benefits, provisions:or formulas.
Public Agency's agreement with a third party other than CaIPERS
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.
(c)
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).
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. PERSONS COMPENSATED ON AN HOURLY BASIS WHO ARE
HIRED JUNE 1, 1966 CIS THEREAFTEEl t.
6, 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 incurred
thereunder. That portion of the assets so transferred which represent the
accumulated contributions (plus interest thereof) required of the employees
under said local system has been credited to the Individual membership
account of each such employee under the Public Employees' Retirement
System.
7. Benefits paid to pensioners and annuitants under the local system on the
effective date of the contract were recalculated, as authorized by Section
20481 of the Government Code, to conform with benefits applicable to
persons retiring after the effective date of the contract except that no benefit
which would have been payable under the continuation of the local system
shall be reduced.
8, The percentage of final compensation to be provided for each year of
credited prior and current service for classic local miscellaneous members
shall be determined in accordance with Section 21354 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 55 Full and Modified).
9. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member entering
membership in the safety classification on or prior to December 24, 2012
shall be determined in accordance with Section 21362.2 of said Retirement
Law (3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of
credited current service as a classic local safety member entering
membership for the first time in the safety classification after December 24,
2012 shall be determined in accordance with Section 21363.1 of said
Retirement Law (3% at age 55 Full).
LEASE DO NOT SIGN "EXHIBIT ONLY"
12. The percentage of final compensation to be provided for each year of
croditod prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
13, Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21536 (Local System Service Credit Included in Basic Death
Benefit).
b. Section 21222.1 (One -Time 5% Increase - 1970). Legislation
repealed said Section effective January 1, 1980,
c, Sections 21624. and 21626 (Post -Retirement Survivor Allowance) for
local miscellaneous members only.
d. Section 21573 (Third Level of 1959 Survivor Benefits).
e, Section 21427 (Improved Nonindustrial Disability Allowance) for
local miscellaneous members only.
f. Section 20042 (One -Year Final Compensation) for classic local
safety mernbers entering membership on or prior to December 24,
2012,
g. Section 20903 (Two Years Additional Service Credit).
h. Section 20434 (°Local Fire Fighter" shall include any officer or
employee of .a fine department employod to perform firefighting, fire
prevention, fire traininrj, .hazardous materials., emergency; medical
services, or fire or arson investigation serviberS as described in
Government Code Section 20434),
i. Section 20965 (Credit for Unused Sick Leave).
j. Section 2.0938 (Limit Prior Sorvice to Members Employed an
Contract Date) for elected officials employed on November 15, 1998.
k. Section 21024 (Military Service Credit as Public Service).
I. Section 20475 (Different Level of Benefits): Section 21363.1 (3%`Q
55 Full forumula) and •Section 20037 (Three Year Final
Compensation), are applicable to classic local safety members
entering 'membership for the first time with this agency in the safety
classlflcatIon after Decemeber 24, 2012.
m. Section 20516 (Employees Sharing Additional Cost):
PLEASE DO NOT SIGN "EXHIBIT ONLY"
From and after the effective date of thls amendment to contract, 3%
for local miscellaneous members in the Unrepresented Confidential
Mid -Management group, Unrepresented Confidential General
Services group, Unrepresented Executive Management group,
Unrepresented Council Appointees group, Lodi City Mid -
Management, AFSCME Maintenance and Operators Unit Local 146
and Lodi Police Dispatchers group.
From and after the effective date of this amendment to contract, 2%
for local miscellaneous members in the AFSCME General Services
Unit Local 146.
From and after the effective date of this amendment to contract, 3%
for local fire members in the Lodi Professional Firefighters and Lodi
Fire Mid -Management unit.
From and after the effective date of this amendment to contract, 3%
for local police members in the Lodi Police Mid -Management unit.
From and after the effective date of this amendment to contract, 3%
for classic local police members in the Police Officers Association of
Lodi.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CaIPERS Actuarial Valuation for the relevant fiscal year, If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Hate for the relevant fiscal year.
14. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
January 1, 1977. Accumulated contributions of Public Agency shall be fixed
and determined as provided in Government Code Section 20634, and
accumulated contributions thereafter shall be held by the Board as provided
in Government Code Section 20834.
15. 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.
16. 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 Suction 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 safety members.
B.
b, 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.
c. 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.
17. 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.
18. Contributions required of Public Agency and its employees shall be paid by
Public Agcrncy 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 i'nr any period, proper adjustment shall be made In connection with
subsequont remittances. Adjustments on account of errors in contributions
required of any employee may be made by direct payments between the
employee and the Board.
This amendment shall be effective on the
BOARD `OF ADMINISTIRATIO J
f UI LIC:EM1PLOYEES''RET*MIENT SYSTEM
BY
ARNITA PAIGE, CHI r
PENSION CONTRA'S AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPL . ES' RETIF'1EMENT SYSTEM
rte,
r
AMENDMENT CaIPERS ID 46448562990
PERS-CON-702A
day of
CITY COUNCIL
CITY OF LODI
BY
PRESIDING OEFIS. Fi
...,
•
Witne a o
Atte
Clerk
Approved ee to Farm
JANICI i], 1VAGO1CFi. _____._.
City Attorney ��,