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HomeMy WebLinkAboutAgenda Report - January 19, 2022 H-01AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION TM H owl 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 an Additional 3% for Local Miscellaneous Members in the Unrepresented Confidential Mid -Management Group, Unrepresented Confidential General Services Group, Unrepresented Executive Management Group and Unrepresented Council Appointees Group MEETING DATE: January 19, 2022 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 an Additional 3% for Local Miscellaneous Members in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group. BACKGROUND INFORMATION: Pursuant to Resolutions 2019-287, 2020-16, 2020-32, and 2021- 332 Local Miscellaneous Members in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group agreed to an additional cost sharing agreement of three percent (3%); whereby, the employee agreed to contribute to the City's normal contribution to CalPERS, in addition to the 3% cost sharing they were already contributing. Although the employees have already agreed to the cost sharing, and have been contributing as agreed upon, CaIPERS requires an amendment to our contract specifically for the Unrepresented groups listed above. There are various steps in the process to amend the contract between CalPERS 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 February 16, 2022. If adopted, the contract will be amended effective March 21, 2022. The intent of the amendment is to require CaIPERS to credit those extra contributions to the employee's personal account. FISCAL IMPACT: There is no cost associated with this action. By approving the contract amendment, the City Council will be allowing the Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council APPROVED: Steve SchwabaUer Steve Schwabauer, City Manager Appointees group to have the additional three percent (3%) employer contribution credited to their individual account rather than the City account. This is similar to all other cost-sharing arrangements the City has with other bargaining groups. FUNDING AVAILABLE: Not applicable. Adele Post, Human Resources Manager Andrew Keys, Deputy City Manager/Internal Services Director RESOLUTION NO. 2022-25 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 an additional 3% for local miscellaneous members in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees 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. Presiding Officer Mayor Title January 19, 2022 Date adopted and approved (Amendment) CON -302 (Rev. 3{9/2016 rc) Ca1PERS California Public Employees' Retirement System EXHIBIT 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 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, December 24, 2012, May 20, 2019, January 27, 2020, July 13, 2020 and October 4, 2021 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 October 4, 2021, 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. 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: 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: 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. 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). 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 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 Lodi City Mid -Management, AFSCME Maintenance and Operators Unit Local 146 and Lodi Police Dispatchers group. From and after May 20, 2019 and until the effective date of this contract amendment, 3% for local miscellaneous member in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees 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 July 13, 2020, 1 % for local miscellaneous members in the International Brotherhood of Electrical Workers unit. From and after October 4, 2021, 9% for local police members in the Unrepresented Police Executive Management group. From and after October 4, 2021, 3% for local fire members in the Unrepresented Fire Executive Management group. From and after the effective date of this contract amendment, 6% for local miscellaneous members in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group. 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 Hoard, 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. `his amendment shall be effective on the BOARD�ADMINISTRATION PUBLIC EMI OYEES' RETIREMENT SYSTEM BY ANDY NGUYEN, SISTANT DIVISION CHIEF PENSION CONTRA r�5 AND PREFUNDING PROGRAMS DIVISI PUBLIC EMPLOYEES *"TIREMENT SYSTEM OG�L / JJ AMENDMENT CaIPERS ID #6446562990 PERS-CON-702A day of CITY COUNCIL CITY OF LODI BY _ PRESIDI OFFICER ` w Witness Date Attest: d Clerk) ORDINANCE NO. 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 16th day of February, 2022 ATTEST: Mark Chandler Mayor Pamela Farris Assistant City Clerk I, Pamela Farris, Assistant City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council of the City of Lodi held January 19, 2022, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held February 16, 2022, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. 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 Pamela Farris Assistant City Clerk if Ca1PERS California Public Employees' Retirement System EXHIBIT 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 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, December 24, 2012, May 20, 2019, January 27, 2020, July 13, 2020 and October 4, 2021 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 October 4, 2021, 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. 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: 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: 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). 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 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 Lodi City Mid -Management, AFSCME Maintenance and Operators Unit Local 146 and Lodi Police Dispatchers group. From and after May 20, 2019 and until the effective date of this contract amendment, 3% for local miscellaneous member in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees 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 July 13, 2020, 1% for local miscellaneous members in the International Brotherhood of Electrical Workers unit. From and after October 4, 2021, 9% for local police members in the Unrepresented Police Executive Management group. From and after October 4, 2021, 3% for local fire members in the Unrepresented Fire Executive Management group. From and after the effective date of this contract amendment, 6% for local miscellaneous members in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group. 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. �O B. phis amendment shall be effective on the t� BOARD�ADMINISTRATION PUBLIC EVP RETIREMENT SYSTEM BY _J; ANDY NGUYENSISTANT DIVISION CHIEF PENSION CONTRA TS AND PREFUNDING PROGRAMS DIVISICV- PUBLIC EMPLOYEESRETIREMENT SYSTEM 0,Gi AMENDMENT CaIPERS ID #6448562990 PERS-CON-702A day of CITY COUNCIL CITY OF LODI BYE PRESIDIIqOFFICER C` (P. Witness Date% Attest: Clerk i� DECLARATION OF POSTING ORDINANCE NO. 1992 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 On Thursday, January 20, 2022, in the City of Lodi, San Joaquin County, California, a certified copy of Ordinance No. 1992 (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 January 20, 2022, at Lodi, California. Pamela M. Farris Assistant City Clerk ordsum maries\aaDecPos t. d oc ORDERED BY: PAMELA M. FARRIS ASSISTANT CITY CLERK Kaylee Clayton Administrative Clerk ORDINANCE NO. 1992c v u 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 16th day of February, 2022 ATTEST: MARK CHANDLER Mayor PAMELA M. FARRIS Assistant City Clerk I, Pamela Farris, Assistant City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1992 was introduced at a regular meeting of the City Council of the City of Lodi held January 19, 2022, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held February 16, 2022, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. 1992 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 PAMELA M. FARRIS Assistant City Clerk A%e" Ca1FERS California Public Employees' Retirement System A* - .. - EXHIBIT AMENDMENT TO CONTRACT Between the ao,.a 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, December 24, 2012, May 20, 2019, January 27, 2020, July 13, 2020 and October 4, 2021 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 October 4, 2021, 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. 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); Q 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, 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: 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. 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 tralning, hazardous materials, emergency medical services, or fire or arson investigation services as described in Govemment Code Section 24434), 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): Sectlon 21363.1 (3% @ 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 Lodi City Mid -Management, AFSCME Maintenance and Operators Unit Local 146 and Lodi Police Dispatchers group. From and after May 20, 2019 and until the effective date of this contract amendment, 3% for local miscellaneous member in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees 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 July 13, 2020, 1 % for local miscellaneous members in the International Brotherhood of Electrical Workers unit. From and after October 4, 2021, 9% for local police members in the Unrepresented Police Executive Management group. From and after October 4, 2021, 3% for local fire members in the Unrepresented Fire Executive Management group. From and after the effective date of this contract amendment, 6% for local miscellaneous members in the Unrepresented Confidential Mid -Management group, Unrepresented Confidential General Services group, Unrepresented Executive Management group and Unrepresented Council Appointees group. 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 A employee and the Board. B. his amendment shall be effective on the BOARD�ADMINISTRATION PUBLIC EI��LOYEES' RETIREMENT SYSTEM BY ANDY NGUYEN, SISTANT DIVISION CHIEF PENSION CONTRA S AND PREFUNDING PROGRAMS DIVISI#T PUBLIC EMPLOYEES VT IREMENT SYSTEM 0, �/ JJ AMENDMENT CaIPERS ID #6448562990 PERS-CON-702A day of CITY COUNCIL CITY OF LODI r BY PRESIDIN OFFICER Com, Witness Date Attest: Clerk