HomeMy WebLinkAboutResolution 2012-025 RESOLUTION NO. 2012-025
RESOLUTION OF IN'T'ENTION
TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CI'T'Y COUNCIL OF THE
CITY OF ATASCADERO
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 20475 (Different Level of Benefits). Section 21354 (2% @ 55 Full
formula) and Section 20037 (Three-Year Final Compensation) 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, and
Section 20475 (Different Level of Benefits). Section 21363.1 (3% @ 55 Full formula)
and Section 20037 (Three-Year Final Compensation) are applicable to local safety
members entering membership for the first time in the safety classification after the
effective date of this amendment to contract.
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.
City of Ataseadero
Resolution No. 2012-026
Page 2 of 8
On motion by Council Member Sturtevant and seconded by Council Member O'Malley, the
foregoing Resolution is hereby adopted in its entirety on the following roll call vote:
AYES: Council Members Clay,Fonzi, O'Malley, Sturtevant and Mayor Kelley
NOES: None
ABSENT: None
ADOPTED: May 8,2012
CITY OF ATASCADERO
Bob Kelley,Mayo
A'T'TEST:
Marcia McClure Torgerson, C.M.C.,City 6lerk
APPROVE AS TO FQWI
Brian A. Pierik, City Attorney
i
City of Atascadero
Resolution No. 2012-025
Page 3of8
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CaIPERS
EXHIBIT
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees ' Retirement System
and the
City Council
City of A.tascadero
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 April
19, 1980, and witnessed March 19, 1980, and as amended effective July 1, 1980, April
30, 1983, January 7, 1984, July 14, 1990, November 9, 1991, April 12, 1992, August 29,
1992, December 26, 1997, July 3, 1999, June 23, 2001, July 13, 2002, July 10, 2004
and June 23, 2007 which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 14 are hereby stricken from said contract as executed
effective June 23, 2007, and hereby replaced by the following paragraphs
numbered 1 through 17 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; age 50 for local safety
members entering membership in the safety classification on or prior to
the effective date of this amendment to contract and age 55 for local
safety members entering membership for the first time in the safety
classification after the effective date of this amendment to contract.
City of Atascadero
Resolution No.2012-025
Page 4of8
2. Public Agency shall participate in the Public Employees' Retirement
System from and after April 19, 1980 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. 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.
City of Atascadero
Resolution No. 2012-025
Page 5of8
(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. Local Fire Fighters (herein referred to as local safety members);
b. Local Police Officers (herein referred to as local safety members);
C. Employees other than local safety members (herein referred to as
local miscellaneous members).
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:
NO ADDITIONAL EXCLUSIONS
6. This contract shall be a continuation of the benefits of the contract of the
Atascadero Fire Protection District, hereinafter referred to as "Former
Agency", pursuant to Section 20567.2 of the Government Code, Former
Agency having ceased to exist and having been required by law to be
succeeded by Public Agency on July 1, 1980. Public Agency, by this
contract, assumes the accumulated contributions and assets derived
therefrom and liability for prior and current service under Former Agency's
contract with respect to the Former Agency's employees. Legislation
repealed said Section effective January 1 , 1988.
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 June 23, 2007 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 June 23, 2007 and not entering membership for
the first time in the miscellaneous classification after the effective date of
this amendment shall be determined in accordance with Section 21354.4
of said Retirement Law (2.5% at age 55 Full).
City of Atascadero
Resolution No. 2012-025
Page 6 of 8
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 (2% at age 55 Full).
10. The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member entering
membership in the safety classification on or prior to the effective date of
this amendment to contract shall be determined in accordance with
Section 21363.2 of said Retirement Law (3% at age 50 Full).
11, The percentage of final compensation to be provided for each year of
credited current service as a local safety member entering membership for
the first time in the safety classification after the effective date of this
amendment to contract shall be determined in accordance with Section
21363.1 of said Retirement Law (3% at age 55 Full).
12, Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
safety members only.
b, Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance) for local miscellaneous members only.
C. Section 21024 (Military Service Credit as Public Service).
d. Section 20903 (Two Years Additional Service Credit).
e. Section 20042 (One-Year Final Compensation) for local
miscellaneous members and local safety members entering
membership on or prior to the effective date of this amendment to
contract.
f. Section 20965 (Credit for Unused Sick Leave) for local safety
members only.
City of Atascadero
Resolution No. 2012-025
Page 7 of 8
g. Section 20475 (Different Level of Benefits). Section 21354 (2% @
55 Full formula) and Section 20037 (Three-Year Final
Compensation) 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.
Section 20475 (Different Level of Benefits). Section 21363.1 (3%
@ 55 Full formula) and Section 20037 (Three-Year Final
Compensation) are applicable to local safety members entering
membership for the first time in the safety classification after the
effective date of this amendment to contract.
13. Public Agency, in accordance with Government Code Section 20834, shall
not be considered an "employer" for purposes of the Public Employees'
Retirement Law. Contributions of the Public Agency shall be fixed and
determined as provided in Government Code Section 20834, and such
contributions hereafter made shall be held by the Board as provided in
Government Code Section 20834.
14. 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 and local safety members of said
Retirement System.
15. Public Agency shall also contribute to said Retirement System as follows:
a. Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local safety members.
b. 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.
C. 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.
City of Atascadero
Resolution No. 2012-025
Page 8 of 8
16. 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.
17. 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
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ATASCADERO
BY BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
Witness Date
Attest:
Clerk
AMENDMENT Ca(PERS 30#1298901388
PERS-CON-702A