HomeMy WebLinkAboutRes No. 09-16 - Intentn to Amnd Contrct Btwn CALPERS & Cty of PD ��� CITY OF PALM DESERT
� �
- CITY MANAGER'S OFFICE
STAFF REPORT
REQUEST: Waiver further reading and adopt Resolution #09- 16 stating the
City Council's intention to approve an amendment to its contract
with the California Public Employees' Retirement System.
DATE: March 26, 2009
CONTENTS: 1) Resolution #09- �6 CITYCOUNCII,A IOM
APPROVED ...�,�.DENiEfl
REC ED OTHER
SUBMITTED BY: John Wohlmuth, City Mana G• �
MEETI G DATE � �-' • '
AYF,S: j , ,.. . � � ��t.
NOES:
.
AQSTAIN:
VERIFIED BY: -
Recommendation: Original on File with C�ty rk's Offic�
Waive further reading and adopt Resolution #09- 16 stating the City Council's
intention to approve an amendment to its contract with the California Public Employees'
Retirement System(CaIPERS) to provide Section 20903 (Two Years Additional Service
Credit) for local miscellaneous members.
Discussion:
This resolution, in this format, is required by the CaIPERS Board prior to initiating any
changes to the retirement benefits contract. If approved, it would allow the City to
amend its contract to offer interested and eligible employees the opportunity to retire
with an additional two-year service credit. Adoption of this resolution is the first step in
the contract amendment process.
Submitted
�'
.�: � �
J N WOHLMUTH, PAUL GIBSON
i y Manager Finance
1
RESOLUTION NO. 09-16
A RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CA�IFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF
THE CITY OF PALM DESERT
WHEREAS, the Public Employees' Retirement Law permits the participation of
pubic 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 20903 (Two Years Additional Service
Credit) for local miscellaneous 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.
PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm
Desert, California, on this 26th day of March, 2009, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPEIGEL, MAYOR
CITY OF PALM DESERT, CALIFORNIA
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
� �i
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Ca1PERS
EXHIBIT
California
Public Employees' Retirement System
�
AMENDMENT TO CONTRACT
setween the
Board of Administratioa
Califoraia Public Employees � Retirement System
aad the
City Courtcil
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 and September 7, 2002 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 September 7, 2002, and hereby replaced by the following paragraphs
numbered 1 through 13 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.
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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 fo�lowing 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 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.
6. 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).
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 on or after September 7, 2002 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
8. 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).
�
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d. Section 21151 (Industrial Disability Retirement For Local
" Miscellaneous Members).
e. Section 21427 (Improved Nonindustrial 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).
i. Section 20903 (Two Years Additional Service Credit).
9. 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.
10. 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.
11. 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.
12. 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.
13. 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 effecti.,ve�.on the day of
,
.,.�f,�:,4�.
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BOARD OF ADMINISTRATION :��:::'��� CITY COUNCIL
PUBLIC EMPLOYEES' RET.�YI��IhII�NT SYSTEM CITY OF PALM DESERT
..-��"T' .:,.
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BY ��'�� BY
LORI MCGA T D, CHIEF PRESIDING OFFICER
EMPLOY F�`��RVICES DIVISION ,,�,;:;;°��° ��
PUBLI/��'+lyb°F��PLOYEES' RETIREMENT SYSTEM ...:<,r��`� °`�
\ Si%1,��
LL �°a��R
e;;:.�;
Witness Date ��:b.;;��``
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Attest: �
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�G�
rk
AMENDMENT ER#1018
PERS-CON-702A(Rev. 10\05)
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 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 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 209Q3 (Two Years Additional Service
Credit)for local miscellaneous 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 befinreen 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.
By:
Presiding Officer
Title
Date adopted and approved
(Amendment)
CON-302(Rev.4/96)
PLEASE DO N�T ���d�� "IL.eti�-������� 4a���;,� 5�°=�
, .��
3. Employees of Public Agency in the foliowing 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 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.
6. 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).
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 on or after September 7, 2002 shall be determined in
accordance with Section 21354.5 of said Retirement Law (2.7% at age 55
Full).
8. 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).