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Home My WebLink AboutCC RES 2011-53RESOLUTION NO. 2011-53 A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL 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 Law; and WHEREAS, one of the steps in the procedure 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 contact, 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 20475 (different Level of Benefits). Section 21343 (2% @ 55 Full formula) and Section20037 (Three -Year Final Compensation) without Section 30325 (Optional Membership for Part -Time Employees) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. Resolution No. 2011-53 NOW, THEREFORE BE IT RESOLVED, that the governing body of the City of Palm Desert 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. This resolution is to be effective July 2, 2011. PASSED, APPROVED AND ADOPTED by the Palm Desert City Council on this 23rd day of June, 2011 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: FINERTY, HARNIK, KROONEN, SPIEGEL, and BENSON NONE NONE NONE E D. KLASSEKI, CITY CLER CITY OF PALM DESERT, CALIFORNI JEAN M. BENSON—, )IAYOR `I RES UTION NO. 2011-53 01,� 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 Palm Desert • 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 October 26, 1974, and witnessed October 3, 1974, and as amended effective February 7, 1981, July 29, 1989, June 14, 1991, June 30, 1996, September 7, 2002 and April 24, 2009 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective April 24, 2009, and hereby replaced by the following paragraphs numbered 1 through 15 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. RESOLUTION NO. 2011-53 1-1tASE DO NOT SIGN "EXHIBIT OlN[ "., 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 attorneys 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) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than 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. (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and/or Public Agency's election to reject this Contract with the CaIPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration. (f) The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. (g) Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 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. Employees other than local safety members (herein referred to as local miscellaneous members). RESOLUTION NO. 2011-53 i1.t ;i,f; 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. ALL SAFETY EMPLOYEES; AND b. ALL EMPLOYEES AGE 65 OF OLDER ON CONTRACT DATE. 6. Prior to January 1, 1975, those members who were hired by Public Agency on a temporary and/or seasonal basis not to exceed 6 months were excluded from PERS membership by contract. Government Code Section 20336 superseded 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. 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment before and not on or after September 7, 2002 shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 8. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member in employment on or after September 7, 2002 and not entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21354.5 of said Retirement Law (2.7% at age 55 Full). 9. The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 10. 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 for Unused Sick Leave). RESOLUTION NO. 2011 5 ! t•., r' `(' h'i I i • d. Section 21151 (Industrial Disability Retirement For Local Miscellaneous Members). e. Section 21427 (Improved Nonindustrial Disability Allowance). f. Section 20042 (One -Year Final Compensation) for those local miscellaneous members entering membership on or prior to the effective date of this amendment to contract. g. Section 20503 (To Remove the Exclusions of "Crossing Guards" and "Administrative Intern", Prospectively from June 14, 1991). h. Section 20325 (Optional Membership for Part -Time Employees) for those local miscellaneous members entering membership on or prior to the effective date of this amendment to contract. i. Section 20903 (Two Years Additional Service Credit). Section 20475 (Different Level of Benefits). Section 21354 (2% @ 55 Full formula) and Section 20037 (Three -Year Final Compensation) without Section 20325 (Optional Membership for Part -Time Employees) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 11. 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. 12. 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. 13. 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 costs of special valuations or of the periodic investigation and valuations required by law. RESOLUTION NO. 2011-53 B. 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 of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 14. 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. 15. 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. This amendment shall be effective on the day of BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY DARRYL WATSON, CHIEF e<C, CUSTOMER ACCOUNT SERVICES DIVI W) PUBLIC EMPLOYEES' RETIREMENT STEM AMENDMENT ER# 1018 PERS-CON-702A CITY COUNCI�<``�,� CITY OF Pp1 'M I SERT F'KESIDING OFFICER Witness Date Attest: CI