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HomeMy WebLinkAboutCC RES 96-34RESOLUTION NO. 96-34 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT STATING THE CITY'S INTENT TO APPROVE AN AMENDMENT TO THE CONTRACT BETWEENTHE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALM DESERT 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 laws, 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 contact; and WHEREAS, the following is a statement of the proposed change: To provide 2% at 55 full formula for local miscellaneous members, including an extension of the funding period to year 2011; and WHEREAS, the Palm Desert Employees' Organization approved the 2% at 55 Full Formula Contract amendment as a part of a negotiated Memorandum of Understanding through the Meet and Confer process by a vote of 47 ayes and 5 noes at their General Membership meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Palm Desert does hereby give notice of intention to approve an amendment to the contract between the City of Palm Desert and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as Exhibit "A" and by this reference made a part hereof. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this 23rd day of May , 1996, by the following vote, to wit: AYES: BENSON, CRITES, KELLY, SPIEGEL, SNYDER NOES: NONE ABSENT:NoNE ABSTAIN: NONE CITY OF PALM DESERT TTEST: r i _ I. / SHEILA R. GILLIGAN, CLERK DIRECTOR OF CO ITY AFFAIRS CITY OF PALM DESERT, CALIFORNIA EXHIBIT "A" AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALM DESERT The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, hereinafter referred to as Public Agency, having entered into a contract effective October 26, 1974, and witnessed October 3, 1974, and as amended effective February 7, 1981, July 29, 1989 and June 14, 1991, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 12 are hereby stricken from said contract as executed effective June 14, 1991, and hereby replaced by the following paragraphs numbered 1 through 12 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. 2. Public Agency shall participate in the Public Employees' Retirement System from and after October 26, 1974 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. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class are excluded by law of this agreement: a. Employees 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: a. ALL SAFETY EMPLOYEES; AND b. ALL EMPLOYEES AGE 65 OR OLDER ON CONTRACT DATE. 5. Prior to ary 1, 1975, those members who w ired by Public Agency on a temporary and/or seasonal basis not to exceed 6 montns were excluded from PERS membership by contract. Government Code Section 20336 supersedes this contract provision by providing that any such temporary and/or seasonal employees are excluded from PERS membership subsequent to January 1, 1975. Legislation repealed and replaced said Section with Government Code Section 20305 effective July 1, 1994. 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. Sections 21624 and 21626 (Post -Retirement Survivor Allowance). b. Section 21572 (Increased Level of 1959 Survivor Benefits). c. Section 20965 (Credit of Unused Sick Leave). d. Section 21151 (Industrial Disability Retirement For Local Miscellaneous Members). e. Section 21427 (Improved Non -Industrial Disability Allowance). f. Section 20042 (One -Year Final Compensation). g. Section 20503 (To Remove the Exclusion of "Crossing Guards" and "Administrative Interns", Prospectively from June 14, 1991). h. Section 20325 (Optional Membership for Part -Time Employees). 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on February 7, 1981. 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. 9. 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 of said Retirement System. 10. Public Agency shall also contribute to said Retirement System as follows: a. 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 2 of special valuations or of the peri investigation and valuations required by law. b. 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 or employees of Public Agency, and costs of the periodic investigation and valuations required by law. 11. Contributions required by 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. 12. 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 contribution 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 1st day of July BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM , 1996 CITY COUNCIL OF THE CITY OF PALM DESERT DIVISION CHIEF PRESIDING OFFICER ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM WITNESS DATE ATTEST: SHEILA R. GILLIGAN, CITY CLERK 3 EXTENSION CONTRACT AMENDMENT COST ANALYSIS EMPLOYER # 1018 DESCRIPTION OF BENEFIT(S) BEING COSTED: LOCAL MISCELLANEOUS MEMBERS (SEC 21354) 2% @ 55 FOR LOCAL MISCELLANEOUS MEMBERS THE EMPLOYER CONTRIBUTION RATES ON THIS PAGE WOULD BECOME EFFECTIVE AS OF JULY 1, 1997 AND ARE BASED UPON THE ABOVE AMENDMENT BECOMING EFFECTIVE BETWEEN JULY 1, 1995 AND JUNE 30, 1996. THE EMPLOYER CONTRIBUTION RATES ARE BASED UPON EXTENDING THE FUNDING HORIZON(S) FOR THE UNFUNDED ACTUARIAL LIABILITY TO JUNE 30, 2011 THE EXPECTED INCREASE IN THE EMPLOYER CONTRIBUTION RATE, AS OF JULY 1, 1997, ATTRIBUTABLE TO THE CONTRACT AMENDMENT IS: 1.732% (NORMAL COST OR PERMANENT INCREASE) 1.999% (TEMPORARY INCREASE TO JUNE 30, 2011) 3.731% (TOTAL INCREASE IN THE EMPLOYER CONTRIBUTION RATE) * THE TEMPORARY INCREASE IN THE EMPLOYER CONTRIBUTION RATE IS DUE TO AN INCREASE IN THE ACCRUED ACTUARIAL LIABILITY. THIS INCREASE IS: CURRENT SERVICE: $ 1137200. PLEASE NOTE THAT BECAUSE OF CONTINUAL CHANGES IN DEMOGRAPHIC DATA AND PERIODIC CHANGES IN FUNDING ASSUMPTIONS, THE SUM OF YOUR CURRENT EMPLOYER CONTRIBUTION RATE AND THE ESTIMATED RATE INCREASE NOTED ABOVE WILL NOT EQUAL YOUR NEW EMPLOYER RATE EFFECTIVE JULY 1, 1997. THE CONTRACT AMENDMENT VALUATION USED DATA AND ASSUMPTIONS AS OF JUNE 30, 1994. THE EMPLOYER CONTRIBUTION RATE TO BE EFFECTIVE JULY 1, 1997 WILL USE DATA AND ASSUMPTIONS AS OF JUNE 30, 1995. ALSO, IF YOUR AGENCY IS OBTAINING COST INFORMATION ON TWO OR MORE BENEFIT CHANGES, THE COST OF ADDING MORE THAN ONE OF THESE CHANGES CAN NOT BE OBTAINED BY SUMMING THE INDIVIDUAL COSTS. A SEPARATE VALUATION MUST BE PERFORMED ON THE COMBINATION. CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, California 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the (governing body) City of Palm Desert (public agency) on May 23, 1996 (date) / ; ccLe C1erk/Secretary j Director of Community Affairs/City Clerk Title 4 CALIFORNIA PUBLL .. EMPLOYEES' RETIREMENT SY i EM Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, California 94229-2709 (916) 326-3420 CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting of the city council (governing body) ofthe City of Palm Desert (public agency) on May 23, 1996 which is at least two weeks prior to the adoption of the (date) Resolution/Ordinance Date: May 30, 1996 5 Director of Community Affairs,City Title Clerk