The URL can be used to link to this page

Home My WebLink AboutORD 809URGENCY ORDINANCE NO. RnQ AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF PALM DESERT. WHEREAS, the City Council of the City of Palm Desert (hereinafter the "City") and the Board of Administration, Public Employees' Retirement System (hereinafter the "Board"), entered into a contract for participation of the City in said system effective October 26, 1974; and WHEREAS, said contract has been amended, from time to time, on February 7, 1981, July 29, 1989, and June 14, 1991; and WHEREAS, the City and Board desire to amend the contract and authorize the Mayor to execute the amendment on behalf of the City. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES ORDAIN as follows: Section 1. That an amendment to the contract between the City and the Board is hereby authorized, a copy of said amendment being attached hereto and made a part hereof by this reference. The Mayor is hereby authorized to execute the amendment on behalf of the City. Section 2. A copy of the contract amendment cost analysis has been published on June 1, 1996, at least 20 days prior to the adoption of this ordinance, in the Palm Desert Post, a newspaper of general circulation, published and circulated in the City of Palm Desert. Section 3. The City Council finds and determines that it is in the interest of the public health, safety and welfare and the following urgent circumstances justify that this ordinance take effect immediately upon its adoption: That this Council desires that the employees of the City have the available benefits provided in the amendment to this contract; that the amendment to the contract must be signed and this ordinance be effective on or before June 30, 1996, or the time period will be lost; and that it is in the best interests of the City that the same be effective immediately. Section 4. The City Clerk shall certify to the passage and adoption of this ordinance and shall cause the same to be published once in the Palm Desert Post, a newspaper of general circulation, printed, published and circulated within the City of Palm Desert, and the same shall be in full force and effect immediately upon its adoption. URGENCY ORDINANCE NO. 809 PASSED, APPROVED and ADOPTED this 27tbday of June, 1996, by the City Council of the City of Palm Desert, California, by the following vote, to wit: AYES:BENSON, KELLY, SPIEGEL, SNYDER NOES : NONE ABSENT: CRITES ABSTAIN: NONE WALTER H. SNYDER, MA • R ATTEST: AA SHEILA ILLIGAN, CITY CLE ORDINANCE NO, 809 EXHIBIT AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' REREMENT 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 as are excluded by law or 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 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 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. ORDINANCE NO. 809 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 for Unused Sick Leave). d. Section 21151 (Industrial Disability Retirement For Local Miscellaneous Members). Section 21427 (Improved Non -Industrial Disability Allowance). f. Section 20042 (One -Year Final Compensation). g. Section 20503 (To Remove the Exclusions of "Crossing Guards" and "Administrative Interns", Prospectively from June 14, 1991). h. Section 20325 (Optional Membership for Part -Time Employees). ti 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 costs of special valuations or of the periodic 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 of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 11. 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. ORDINANCE NO. 809 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 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. This amendment shall be effective on the day of , 19 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE CITY OF PALM DESERT BY BY _ DIVISION CHIEF Presiding Orf leer ACTUARIAL & EMPLOYEPiSERVICES DIVISION PUBLIC EMPLOYEES' RETP ORAENT SYSTEM Witness Date Attest: Clerk 4 4 CONTRACT AM MMENT COST '+YSIS ORDINANCE NO. 809 11 EMPLOYER # 1018 DESCRIPTION OF BENEFIT(S) BEING COSTED: LOCAL MISCELLANEOUS MEMBERS (SEC 21354) 28 0 55 FOR LOCAL MISCELLANEOUS MEMBERS THE EMPLOYER COTITRIBpTION 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 ON RATES ARE BASED UPON 87CTS mnm THE FUNDING HORIZON(S) FOR THE UNF03®ED ACTUARIAL LIABILITY TO JUNE 30, 2011 THE EXPECTED INCREASE IN THE EMPLOYER CONTRIBUTION RATE, AS OF DULY 1, 1997, ATTRIBUTABLE TO THE CONTRACT AMENDMENT IS: 1.732% {NORMAL COST OR PERMANE14T INCREASE) 1.9991k (TEMPORARY INCREASE TO JUKE 30, 2011) 3.731t (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 ammaBS IN Fmmnm ASSUMPTIONS, THE SUN 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. 4