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HomeMy WebLinkAboutAgenda Report - March 19, 2003 I-07C"ITY OF LODI COUNCIL COMMUNICATION CSF; E: adopt Resolution of Intention to amend contract between Public Employees Retirement System (Ca1PERS) and City of Lodi to provide Section 21024 (Military Service Credit as Public Service) for local miscellaneous members and safety members and Ordinance Introduction MEETING TING TE: Wednesday, March 19, 2003 SUBMI T .BY- Human Resources Director RECOMMENDED ACTION- That the City Council adopt the resolution of intention to amend the City of L,odi's contract to provide Section 21024 (Military Service Credit as Public Service) for local miscellaneous and local safety members. BACKGROUND INFORMATION: ION: During negotiations with the IBEW, the City Council authorized amending oiir contract with Cal.PERS to provide for the option for military service credit as public service. Because we may not amend. our contract by bargaining knit, this benefit will be available to all City employees. The cost of purchasing service credit will be borne by the employee. FUNDING: N CC" City Attorney Respectfully submitted, Joanne TMl Narlocli,um esources rector iicar� Eiy City RAan er A RESOLUTION OF INTENTION OF THE LODI CITY COUNCIL TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' R TiER MENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF LORI 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 21024 (Military Service Credit as Public Service) for local miscellaneous members and local safety members. 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, Dated: March 19, 2003 I hereby certify that Resolution No, 2003-49 was passed and adopted by the City Council of the City of Lodi in a regular meeting held March 19, 2003, by the following vote-, AYES: COUNCIL MEMBERS — Beckman, Hansen, Land, and Mayor Hitchcock NOES, COUNCIL MEMBERS — None SUSAN J. BLACKSTON City Clerk CaIPERS California Public Employees' Retirement Systel Between the doAdministratiol WOMSWXW� A001 - AParagraphs 1 through 14 are hereby stricken from said contract as executed effective June 12, 2000, and hereby replaced by the following paragraphs numbered I through 14 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 local miscellaneous members and age 50 for local safety members, sc ol A 4 V1 ul �- i V adv " i _11 3, Employees of Public Agency in the following classes shall beco members of said Retirement System except such in each such class are excluded by law or this agreement- I 8Local Fire Fighters (herein referred to as local safe� �#� b. Local Police Officers (herein referred to as local safety members); cEmployees other than local safety members (herein referred to as local miscellaneous members). 4. 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: PERSONS COMPENSATED ON AN HOURLY BASIS WHO ARE HIRED JUNE 1, 1996 OR THEREAFTER. 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full), OT S 1 G-1 N " EXH2 IT 0 N 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 (Special 5% Increase - 1970). Legislation repealed said Section effective January 1, 1980. C, Sections 21624 and 21626 (Post -Retirement Survivor Allowance) for local miscellaneous members. d. Section 21573 (Third Level of 1959 Survivor Benefits). Section 21427 (improved Nonindustrial Disability Allowance) for local miscellaneous members only, f. Section 20042 (One -Year Final Compensation) for local safety members only. Section 20903 (Two Years Additional Service Credit) for local miscellaneous members and local fire members only, 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), Section 2D965 (Credit for Unused Sick Leave), Section 20938 (Limit Prior Service to Members Employed or Contract Date) for elected officials employed on November 15, 1998, k. Section 21024 (Military Service Credit as Public Service), Statutes of 1976s 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. k Fill 111! 119111111111 R! ill I I !1 1114151 11101111111 IIpIII11!I b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of e 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. cA Feasonable amount, as fixed by the Board, 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. 13, Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments o the P. investigationEmployees' Retirement Law, and an account of the experience under the Retirement System as determined by the periodic ✓ d valuation required by said Retirement Law. This amendment shall be effective-onthe BOARD F ADMINISTRATION PUBLIC EMPLOYEES` RETIRE °'N'T SYSTEM Y ECIC" ,IRI. I ACTUARIAL E L S ERVICES DIVISION PUBLIC [ L Y TIREMENT SYSTEM AMENDMENT ER# 0626b P S-GOW742A (Rev. 8102) day of � CITY COUNCIL CITY OF LCI Y PRESIDING ER � im 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 copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. Section 2, The Mayor of the City of Lodi is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist, Section 4, 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 be in force and take effect thirty days from and after its passage and approval. Adopted and approved this —day of 2001 SUSAN HITCHCOCH Mayor Attest; SUSAN J. BLACKSTON City Clerk State of California County of San Joaquin, ss. 1, SUSAN J. LACK TCN, 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 March 19, 2003 and was thereafter passed, adopted and ordered to print at a regular meeting of said Council held '. 2003, by the following vote: AYES: COUNCIL MEMBERS – NC? : NOES: 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. SUSAN J. BLACK TON City Clerk CalPER-S California Public Employees' Retirement System WKS 11 'WWW1 Between the 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 and June 12, 2000 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows-. A, Paragraphs I through 14 are hereby stricken from said contract as executed effective June 12, 2000, and hereby replaced by the following paragraphs numbered I through 14 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 local miscellaneous members and age 50 for 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 ail amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only an the election of a contracting agency. - 'EX B)T C' J )'T S I G N " i eie. 3, Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: 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). 4In 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 ARJ HIRED JUNE 1, 1996 OR THEREAFTER. 5, 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. 6, 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 systern shall be reduced, 7. The percentage of final compensation to be provided for each year of credited prior and current service for 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). & 'The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362,2 of said Retirement Law (3% at age 50 Full), 9, 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 21222,11 (Special 5% Increase - 1970). Legislation repealed said Section effective eJanuary 1, 1980. C, Sections 21624 and 21626 (Post -Retirement Survivor Allowance) for local miscellaneous members. 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 local safety members only. Section 20903 �Two Years Additional Service Credit) for local miscelianeous members and local fire members only, 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), 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), Statutes of 1976. 10. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20.634 effective on July 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. 11. 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. '12, 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. 13. 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. 14, 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 an 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 All PUBLIC EMPLOYEES' RETIREM.-N SYSTEM BY KENNETH W, MARZION,,CH, t ACTUARIAL & EMPLOYR'SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMEN 341 ERO 0626 PERS-CON-102A (Rev. M2) I= CITY COUNCIL CITY OF LODI BY PRESIDING Qf5�01,`ER Witnes10& Attest: I N=