HomeMy WebLinkAboutResolutions - No. 2020-81RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO CONTRACT
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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
1% for local miscellaneous members in the International
Brotherhood of Electrical Workers unit.
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.
By:
Presidingfi er
Mayor
Title
April 15, 2020
Date adopted and approved
(Amendment)
CON -302 (Rev. 3/9/2016 rc)
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Ca1PERS
California
Public Employees' Retirement System
EXHIBIT A
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Lodi
The Board of Administration, California Publlc 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, December 24, 2012, May 20, 2019
and January 27, 2020 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 18 are hereby stricken from said contract as executed
effective January 27, 2020, and hereby replaced by the following paragraphs
numbered 1 through 18 inclusive:
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).
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;
PLEASE Da NOT SIGN "EXHIBIT ON,I-Y"
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).
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:
s
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 24434 ("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 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),
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 membershlp for the first time with this agency in the safety
classification after Decemeber 24, 2012.
m. Section 20516 (Employees Sharing Additional Cost):
From and after May 20, 2019, 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 May 20, 2019, 2% for local miscellaneous members
in the AFSCME General Services Unit Local 146.
From and after May 20, 2019, 3% for local fire members in the Lodi
Professional Firefighters and Lodi Fire Mid -Management unit.
From and after May 20, 2019, 3% for local police members in the
Lodi Police Mid -Management unit.
From and after May 20, 2019, 3% for classic local police members in
the Police Officers Association of Lodi.
From and after January 27, 2020, 6% for new local police members
in the Police Officers Association of Lodi.
From and after the effective date of this amendment to contract, 1 %
for local miscellaneous members in the International Brotherhood of
Electrical Workers unit.
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
CalPERS 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.e%ctive on the day of
BOARD OF ADMINISTRATI®' CITY COUNCIL
PUBLIC EMPLOYEES' Rj`TIREMENT SYSTEM CITY OF LODI
BY_ _ _ BY
ARNITA PAIGE, OJ4IEF PRESIDING Oi=DICER
PENSION CONjACTS AND PREFUNDING
PROGRAM$$` VISION
PUBLIC EMkOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
App meed as to for
City Atto ney
AMENDMENT CaIPERS ID #6448562990
PERS-CON-702A
Dated: April 15, 2020
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I hereby certify that Resolution No. 2020-81 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 15, 2020, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Mounce, Nakanishi, and
Mayor Kuehne
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
PAMELA M. FARRIS
Assistant City Clerk
2020-81