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HomeMy WebLinkAboutResolutions - No. 2021-223RESOLUTION NO. 2021-223 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AN D'TH E 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 statementof the proposed change: To provide Section 20516 (Employees Sharing Additional Cost) of 9% for local police members in the Unrepresented Police Executive Management group and 3% for local fire members in the Unrepresented Fire Executive Management group. 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: August 4, 2021 Date adopted and approved (Amendment) CON -302 (Rev. 3/9/2016 rc) Presiding Officer Mayor Title A%", 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 -0 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, 1968, 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, January 27, 2020 and July 13, 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 July 13, 2020, 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 56 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" 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 Californla Public Lmployees' Retirement System (CalPERS) and Its trustees, agents and employees, the CalPERS Board of Administration, and the Caliiornia Public Employees' Retirement Fund from any claims, demands, actions, losses, Ilabllltles, 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 electlon to provide retirement b©nefits, 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 (includ}ng without limitallon arbitration, administrative hearing, or litigation) between Public Agency and Its employees (or their representatives) which relates to Public Agency's eleclicn 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 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. 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 safely 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. PERSONS COMPENSATED ON AN HOURLY BASIS WHO ARE HIRED JUNE 1, 1996 OR THEREAFTER. Assets heretofore accumulated with respect to members in the local retirement system have been transferred to the Public Employees' Retlrement System and applied against tho 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 conforrn with benefits applicable to Persons retiring after the affective 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 miscellaneaus 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). 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 752224 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 safely 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: a. Sectlon 21536 (Local System Service Credit Included in Basic Death Benefit). b. Section 2 t 222.1 (One -Time 5% increase - 1970). Legislation repealed said Section effective January 1, 1980, c. Sections 21624 and 21625 (Post -Retirement Survivor Allowance) for local miscellaneous members only, d. Section 21573 (Third Level of 1959 Survivor Benefits). G. Section 21427 (Improved Nonlndustrlal 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 fie or arson investigation services as described in Government Code Section 20434), Section 20965 (Credit for Unused Sick Leave). J. Section 20938 (Limit Prior Service to Members Employed on Contract Date) for atected 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% 0 55 Full formula) 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 December 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 Mld-Management, AFSCME Maintenance and Operators Unit Local 146 and Lod] 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 f=ire Mid -Management unit. From and after May 20, 2019, 1 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 July 13, 2020, 1 % for local miscellaneous members In the International Brotherhood of Electrical Workers unit. From and after the effective date of this amendment to contract, 9% for local police members in the Unrepresented Police Executive Management group. From and after the effective date of this amendment to contract, 3% for local fire members In the Unrepresented Fire Executive Management group. i � ! r. � i�, � ��•Ir 1 I ,`)I� `ill I ��, i,� Il�il I ��I'J �e 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 conlHbution ("Cost Sharing Percentage"), shall not exceed the Employer Normal Cost Rate, as that rate is ideflned 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 20934. 15, Public Agency shalt 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 sold Retirement System. 16, Public Agency shall also contribute to said Retirement System as follows: a. Contributions required per covered member on account of the 1969 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 employeee 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 occaslans arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investlgation 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 daya after the end of the period to which said conirlbutions 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 QF ADMINISTRATION CITY COUNCIL PUBLIC FMPLOYEES' RETIREMENT SYSTEM CITY OF LODI BY ANDY NGUYEP ASSISTANT DIVISION CHIEF PENSION CON 9ACTS AND PREFUNDING PROGRAMS DIVISIDN PUBLIC EMPLOY EE�L, RETIREMENT SYSTEM Signature: ., Emait: jmagdich@lodi.gov AMENDMENT CeIPEAS 10 N WS02990 PERS-CON-702A BY PRESIDING 6FMER Witness Date - , ' Attest; Clerk