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Home My WebLink AboutNS-2743 - Authorizing an Amendment to the Contract Between the City of Santa Ana and the Board of Administration of the Public Employees' Retirement System JAS (4/10/07) ORDINANCE NO. NS-2743 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF SANTA ANA AND THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System ("PERS") 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. Such a contract currently exists between the City of Santa Ana and the Board of Administration of the California Public Employees' Retirement System. B. In accordance with provisions of the current Memorandum of Understanding between the City of Santa Ana and the Santa Ana Police Officers Association for fiscal years 2004-2008 the City agreed to amend its contract with the Public Employees Retirement System to provide section 20965 Credit for Unused Sick Leave benefits for local safety members effective July 1, 2007. A copy of said proposed amendment is attached hereto as Exhibit "A" and by this reference made a part hereof. C. The Credit for Unused Sick Leave benefit allows a member to convert unused accumulated sick leave at the time of retirement to additional service credit pursuant to a formula established by PERS. Section 2: That an amendment to the contract between the City of Santa Ana and the Board of Administration of the Public Employees' Retirement System is hereby authorized in accordance with the terms of Exhibit "A". Section 3: That the Mayor and Clerk of the Council of the City of Santa Ana are authorized, empowered and directed to execute said amendment for and on behalf of the City of Santa Ana. Section 4: If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it Ordinance No. NS-2743 Page 1 of 6 would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this 21st day of May, 2007. APPROVED AS TO FORM: Joseph W. Fletcher City Attorney AYES Councilmembers Alvarez, Benavides, Bustamante, Martinez, Pulido (5) NOES: Cou ncilmembers None (0) ABSTAIN: Councilmembers None (0) NOT PRESENT: Councilmembers Sarmiento, Tinaiero (2) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-2743 to be the original ordinance adopted by the City Council of the City of Santa Ana on May 21. 2007, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: &;/-s-- ~ 7 / ..~ - -----. . e I' _" 41; Patricia E. Healy Clerk of the Council City of Santa Ana Ordinance No. NS-2743 Page 2 of 6 A CalPERS EXHIBIT California Public Employees' Retirement System Between the Board of Administration California public Employees' Retirement System and the City Council City of Santa Ana ~ 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 July 1, 1947, and witnessed November 25,1946, and as amended effective October 1,1951, February 1, 1954, September 1, 1956, July 1, 1959, November 1, 1960, September 1, 1963, April 1, 1964, February 1,1965, January 16,1969, November 1,1970, June 1, 1974, December 16, 1976, December 1, 1978, October 1, 1981, July 1, 1984, December 1, 1984, July 1, 1985, February 1, 1990, July 1, 1990, December 5, 1991, April 15, 1993, June 16, 1994, January 1,1995, December 5,1995, July 5,2000, March 8, 2001, July 1, 2001, April 5, 2002 and November 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 ~xecuted effective November 7, 2002, 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 and age 50 for local safety members. Ordinance No. NS-2743 Page 3 of 6 .... , PLEASE DO NOT SIGN "EXHIBIT or: 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1947 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. , 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). 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: NO ADDITIONAL EXCLUSIONS 5. 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). 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 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 20042 (One-Year Final Compensation). c. Section 20903 (Two Years Additional Service Credit). d. Section 21548 (Pre-Retirement Optional Settlement 2 Death Benefit). Ordinance No. NS-2743 Page 4 of 6 e. Section 21024 (Military Service Credit as Public Service). f. Section 20965 (Credit for Unused Sick Leave). g. Section 21574 (Fourth Level of 1959 Survivor Benefits). 8. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on December 16, 1976. 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 and local safety members of said Retirement System. 10. Public Agency shall also contribute to said Retirement System as follows: a. Contributions required Rer 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 miscellaneous members and 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. 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. NS-2743 Page 5 of 6 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. BY LORI MCGARTLAND EMPLOYER SERV PUBLIC EMPLOY. . ,~) <{ ,:::-)1 , "o{-" , , This amendment shall be effective on the _ day of ~:~ BOARD OF ADMINISTRATIO~<:S CITY COUNCIL PUBLIC EMPLOYEES' RET~ENT SYSTEM CITY OF SANTA ANA ~~ ~ IEF DIVISION , RETIREMENT SYSTEM BY ... PRESIDING OFFICER ~/ ~r::s ~. i~ Witness Date ("~ c:;.':i t:;..-:) ~ ~ c<:t.. Cle~~:J 'v . '''~'.J Attest: AMENDMENT ER# 0137 PERS-CON-702A (Rev. 10105) Ordinance No. NS-2743 Page 6 of 6