HomeMy WebLinkAboutResolution 2019-014RESOLUTION NO. 2019-014
RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY
OF ATASCADERO, CALIFORNIA, TO APPROVE AN AMENDMENT TO
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AND THE
CITY 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 20516 (Employees Sharing Additional Cost)
of 3% for classic fire members in the Atascadero Professional
Firefighters Local 3600.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of
Atascadero:
SECTION 1. The City Council of the City of Atascadero 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 "Exhibit" and by this reference made a part hereof.
PASSED AND ADOPTED at a regular meeting of the City Council held on the 23rd day
of April, 2019.
CITY OF ATASCADERO
:Jk)-Y I �ID
Heather Moreno, Mayor
APPROVED AS TO FORM:
Brian Pierik, City Attorney
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO
CITY OF ATASCADERO
I, LARA K. CHRISTENSEN, City Clerk of the City of Atascadero, DO HEREBY
CERTIFY that the foregoing Resolution No. 2019-014 was duly adopted at a regular meeting of
the City Council of the City of Atascadero held on the 23rd day of April, 2019, by the following
roll call vote, to wit:
AYES: Council Members Fonzi, Funk, Newsom, Mayor Pro Tem Bourbeau and
Mayor Moreno
NOES: None
ABSENT: None
The foregoing is the original of Resolution No. 2019-014 duly passed and adopted by the
Atascadero City Council at their regular meeting held April 23, 2019.
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CaIPERS
California
Public Employees' Retirement System
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Atascadero
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,
June 23, 2007 and July 14, 2012 which provides for participation of Public Agency in said
System, Board and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed
effective July 14, 2012, and hereby replaced by the following paragraphs
numbered 1 through 19 inclusive:
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 classic
local miscellaneous members; age 62 for new local miscellaneous
members, age 50 for classic local safety members entering membership in
the safety classification on or prior to July 14, 2012; and age 55 for classic
local safety members entering membership for the first time in the safety
classification after July 14, 2012 and age 57 for new safety members.
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 attorney 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) Any dispute, disagreement, claim, or proceeding (including
without limitation arbitration, administrative hearing, or litigation)
between Public Agency and its employees (or their
representatives) which relates to Public Agency's election to
amend this Contract to provide retirement benefits, provisions or
formulas that are different than such employees' existing
retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party otherthan CaIPERS
to provide retirement benefits, provisions, or formulas that are
different than the retirement benefits, provisions or formulas
provided underthis Contract and provided for under the California
Public Employees' Retirement Law.
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 classic 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 classic local miscellaneous member
in employment on or after June 23, 2007 and not entering membership for
the first time in the miscellaneous classification after July 14, 2012 shall be
determined in accordance with Section 21354.4 of said Retirement Law
(2.5% at age 55 Full).
9. The percentage of final compensation to be provided for each year of
credited current service as a classic local miscellaneous member entering
membership for the first time in the miscellaneous classification after July
14, 2012, 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 new local miscellaneous member
shall be determined in accordance with Section 7522.20 of said Retirement
Law (2% at age 62 Full).
11. The percentage of final compensation to be provided for each year of
credited prior and current service as a classic local safety member entering
membership in the safety classification on or prior to July 14, 2012, shall be
determined in accordance with Section 21363.2 of said Retirement Law (3%
at age 50 Full).
12. The percentage of final compensation to be provided for each year of
credited current service as a classic local safety member entering
membership for the first time in the safety classification after July 14, 2012,
shall be determined in accordance with Section 21363.1 of said Retirement
Law (3% at age 55 Full).
13. The percentage of final compensation to be provided for each year of
credited prior and current service as a new local safety member shall be
determined in accordance with Section 7522.25(d) of said Retirement Law
(2.7% at age 57 Full).
14. 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 classic local
miscellaneous members and classic local safety members entering
membership on or prior to July 14, 2012.
f. Section 20965 (Credit for Unused Sick Leave) for local safety
members only.
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 with this agency in the
miscellaneous classification after July 14, 2012.
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 with this agency in the safety
classification after July 14, 2012.
h. Section 20516 (Employees Sharing Additional Cost):
From and after the effective date of this amendment to contract, 3%
for classic local fire members in the Atascadero Professional
Firefighters Local 3600.
The portion of the employer's contribution that the member agrees
to contribute from his or her compensation, over and above the
member's normal contribution ("Cost Sharing Percentage"), shall not
exceed the Employer Normal Cost Rate, as that rate is defined in the
CalPERS Actuarial Valuation for the relevant fiscal year. If the Cost
Sharing Percentage will exceed the relevant Employer Normal Cost
Rate, the Cost Sharing Percentage shall automatically be reduced to
an amount equal to, and not to exceed, the Employer Normal Cost
Rate for the relevant fiscal year.
15. 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.
16. 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.
17. 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.
18. 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.
19. 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 ZZ day of Jtkvw Zol
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ATASCADERO
BY rLj�L
ARNITA AIGE,'CHIEF
PENSION CONTRACTS AND PREFUNDING
PROGRAMS DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT CaIPERS ID 41298901388
PERS-CON-702A
1344
PRESIDI G OFFICER
aJ
Witness Jate