HomeMy WebLinkAboutOrdinance 1224 Amend CalPERS 2nd Tier of Benefits for Employees Hired After September 1, 2011CITY OF PALM D
HUMAN RESOURCES DEP
STAFF REPORT
REQUEST: Adopt Ordinance No. 1224 amending the City's Contract with
CaIPERS to provide a second tier of benefits for employees hired
after September 1, 2011.
SUBMITTED BY: Lori Carney, Human Resources Manager
DATE: July 14, 2011
CONTENTS: Ordinance No. 1224
Recommendation:
Waive further reading and pass Ordinance No. 1224 to second reading.
Background:
At its June 23, 2011, meeting the City Council adopted a new
Memorandum of Understanding (MOU) with the Palm Desert Employees
Organization (PDEO). Included in this agreement is the creation of
second tier of pension benefits for employees hired after
September 1, 2011. These employees will be hired under a "2% @ 55"
contract formula.
Also at the June 23, 2011 meeting the City Council adopted a Resolution
of Intent to amend its contract with CalPERS. This Ordinance is the next
step required by CalPERS in the process of amending the City's contract
to provide for a second level of benefits.
Staff Report
Ordinance Amending the CalPERS Contract
July 14, 2011
Page 2 of 2
Fiscal Analysis:
Amending the CalPERS contract will result in future savings, which will be
realized more fully as we transition to a workforce hired under the new
terms. It is expected to potentially save the City hundreds of thousands of
dollars annually.
Submitted by:
Lori Carney, Human Resources Manager
Paul S. Gibson, Director of Finance
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City Manager
ORDINANCE NO. 1224
AN 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 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, June 14, 1991, June 28, 1996, July 31, 2002, and April 24, 2009; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. That an amendment to the contract between the City Council of the City
of Palm Desert, California, and the Board of Administration of the California Public
Employees' Retirement System is hereby authorized, a copy of said amendment being
attached hereto, marked "Exhibit A", and by such reference made a part hereof as though
herein set out in full.
Section 2. The Mayor of the City of Palm Desert, California is hereby authorized,
empowered, and directed to execute said amendment for and on behalf of said Agency.
Section 3. The Ordinance shall take effect 30 days after the date of its adoption,
and shall be published at least once in The Desert Sun, a newspaper of general circulation,
and thenceforth and thereafter the same shall be in full force and effect.
ORDINANCE NO. 1224
Adopted and approved this day of , 2011.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm
Desert, California, at its regular meeting held this day of , 2011, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
JEAN M BENSON, MAYOR
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