HomeMy WebLinkAboutAmendment-2002-014Afk,,
Ca1PERS
A-2002-014
California
Public Employees' Retirement System
Between the
Board of Administration
California Public Employees' Retirement System
and tine
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 and July 1, 2001 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 July 1, 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.
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 21024 (Military Service Credit as Public Service), Statutes
of 1974 for those local miscellaneous members and local safety
members entering membership prior to October 1, 1981.
C. Section 20475 (Different Level of Benefits Provided for New
Employees). Section 21024 (Military Service Credit as Public
Service), Statutes of 1974, is not applicalbe to local miscellaneous
members and local safety members entering membership after
October 1, 1981.
d. Section 20042 (One -Year Final Compensation).
e. Section 20903 (Two Years Additional Service Credit).
f. Section 21573 (Third Level of 1959 Survivor Benefits).
g. Section 21548 (Pre -Retirement Optional Settlement 2 Death
Benefit).
h. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
i. Section 20965 (Credit for Unused Sick Leave) for local
miscellaneous members only.
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 per covered member on account of the 1959
Survivor Benefits provided under Section 21573 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.
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. This amendment shall be effective on the 5 day of r' Zvd7i
BOARD OF ADMINISTRATION CITY COUNCIL
PUBLIC EMPLOYEES' RETIREMENT SYSTEM Cl'
BY Ma BY
KENN.E H WJ MARZI N, CHIEF PR
ACTUARIALA EMPLOYER SERVIC S DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AMENDMENT
PERS-CON-702A (Rev. 8\96)
A/45-611
Witness Date
Attest:
Clerk
pity Manager /Chit Assistant City Attorney
REQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 4, 2002
ULEKK OF GUUNGIL USE UNLY:
TITLE: APPROVE Dom'
AMEND THE CITY'S CONTRACT PAs Recommended
WITH THE PUBLIC EMPLOYEE'S ❑ 9s Amended
5a
RETIREMENT SYSTEM FOR `Ordinanceon1"Reading.��7"62
❑ Ordinance on 2nd Reading
MILITARY SERVICE AND CREDIT [-lrrnplementing Resolution
FOR UNU Eb CK L E�Aet Public Hearing For 6 2—
CONTINUED TO
"Gp FILE NUMBER A-2002_014
CITY MANAGER Resn--:X0a wo, US--7-tt,11CJ
RECOMMENDED ACTION
1. Adopt a Resolution of Intention to approve an amendment to the
contract between the Public Employees' Retirement System and the
City of Santa and to provide Military Service Credit as Public
Service and Credit for Unused Sick Leave for local miscellaneous
members.
2. Adopt an Ordinance authorizing an amendment to the contract between
City of Santa Ana and Public Employees' Retirement System.
DISCUSSION
The current Memorandum of Understanding between the City of Santa Ana and
the Santa Ana City Employees Association requires the City to provide both
the Military Service Credit As Public Service and the Credit For Unused
Sick Leave benefits for local miscellaneous members as soon as it is
practical. The Military Service Credit allows a member to purchase up to
four years of service credit for any continuous active military or merchant
marine service prior to employment. This benefit adds years of service to
a member's retirement calculation and ultimately results in an improved
retirement benefit. The cost to purchase this credit is borne entirely by
the employee.
The Unused Sick Leave Credit Benefit allows unused accumulated sick leave
at the time of retirement to be converted to additional service credit
pursuant to a formula established by the Public Employee's Retirement
System. Over time, the actuarial additional cost necessary of this
benefit for all existing miscellaneous employees is $1.6 million.
However, the balance of thq excess assets currently held in the City's
PERS account is sufficient tp maintain the employer's current rate cost at
zero percent for approximately 35 years, barring unfavorable market
returns.
Page 17 12A
PERS Contract Amendment
February 4, 2002
Page 2
FISCAL IMPACT
There is no immediate fiscal impact associated with this action
y' ,,��LIO dvEnrique J. Alva
Executive Director
Personnel Services Agency
V
12A Page 18
CONSENT CALENDAR
Placed on first reading at the January 22, 2002 Council Meeting and
approved by a 7-0 vote
Councilmember Alvarez requested staff to report back within the next six
months relative to the number of pay phones removed and the number of
pay phones remaining in the City.
Motion: Place ordinance on second reading and adopt.
ORDINANCE NO. NS -2489 - An ordinance of the City Council of the City
of Santa Ana amending Chapter 41 of the Santa Ana Municipal Code to
modify regulations and establish standards for exterior pay phones -
Planning and Building Agency
MOTION: Alvarez
VOTE: AYES:
NOES:
ABSENT:
NOTICE OF INTENT
SECOND: Bist
Alvarez, Bist, Christy, Franklin, McGuigan,
Pulido, Solorio (7)
None (0)
None (0)
12.A. AGMT NO. 2002-014 - AMEND THE CONTRACT WITH THE BOARD OF
ADMINISTRATION OF THE PUBLIC EMPLOYEE'S RETIREMENT
SYSTEM (MILITARY AND UNUSED SICK LEAVE CREDIT)
Motion: 1. Adopt resolution.
RESOLUTION NO. 2002-006 - A resolution of the City Council of the
City of Santa Ana of its intention to approve an amendment to the
contract between the Board of Administration of the California Public
Employees' Retirement System and City Council of the City of Santa
Ana relative to military service credit and credit for unused sick leave -
Personnel Services Agency
2 Place ordinance on first reading and authorize publication of title.
ORDINANCE NO. NS -2490 - An ordinance of the City Council of the
City of Santa Ana authorizing an amendment to the contract between
the City Council of the City of Santa Ana and the Board Of
Administration of the California Public Employees' Retirement System
CITY COUNCIL MINUTES 41 FEBRUARY 4, 2002
Check presented by COUNCILMEMBERS BIST and SOLORIO to Benjamin Mendoza
of Kelly's Body Shop for its business improvements under the Santa Ana Community
Development Agency Fagade Improvement Rebate Program
Certificate presented by COUNCILMEMBER ALVAREZ to the 2002 Santa Ana Police
and Fire Games, Inc for hosting the California Police and Fire Games, and Special
Presentation by Operations Director, Police Captain Carlson, on the upcoming 2002
Santa Ana Police and Fire Games held in June 2002
Certificate presented by COUNCILMEMBER ALVAREZ to Dean Maccabe for his
participation as a torchbearer in the 2002 Winter Olympics Torch Relay
OATHS OF OFFICE
Administered by Clerk of the Council to the following:
Name Ward Board/Commission
Phillip E. Schaefer Ward 1 Historic Resources Commission
Nam Manh Pham Ward 1 Library Board
CONSENT CALENDAR
Mayor Pulido announced the following modifications to the consent Calendar:
• Councilmember Franklin pulled Item 20.C. for separate discussion
• Councilmember Alvarez pulled Items 11.0 and 29.A. for separate discussion
• Council Bist pulled Item 25.A. for separate discussion
• Addition of Closed Session report, agenda Item 19.A.
Motion: Approve staff recommendations on the following Consent Calendar
items.
MOTION: Alvarez SECOND: Bist
VOTE: AYES: Alvarez, Bist, Christy, Franklin, McGuigan,
Pulido, Solorio (7)
NOES: None (0)
ABSENT: None (0)
CITY COUNCIL MINUTES 39 FEBRUARY 4, 2002
j s: 01124/02
RESOLUTION NO. 2002-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA OF ITS INTENTION TO APPROVE AN
AMENDMENT TO THE CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND CITY
COUNCIL OF THE CITY OF SANTA ANA RELATIVE TO
MILITARY SERVICE CREDIT AND CREDIT FOR UNUSED
SICK LEAVE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA 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 by the execution of a contract. There currently exists such a
contract between the City Council of the City of Santa Ana and the Board
of Administration of the Public Employees' Retirement System relative to
miscellaneous employees. The aforementioned law also sets forth the
procedure by which said public agencies may elect to subject themselves
and their employees to amendments to said Law and amend their
contracts accordingly.
B. One of the steps in the procedures to amend the 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 changes proposed in said contract.
Section 2. In accordance with provisions of the current Memorandum of
Understanding between the City of Santa Ana and Santa Ana City Employees Chapter
1939 / Service Employees International Union Local 347, the City agreed to amend its
contract with the Public Employees' Retirement System to provide section 21024
Military Service Credit as Public Service and section 20965 Credit for Unused Sick
Leave benefits for local miscellaneous members as soon as practical. A copy of said
proposed amendment is attached hereto as "Exhibit A" and by this reference made a
part hereof.
A. The Military Service Credit as Public Service benefit allows a member to
purchase up to four years of service credit for any continuous active
military or merchant marine service prior to employment with the agency.
Resolution No. 2002-006
Page 1 of 3
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, PATRICIA E. HEALY, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2002-006 to be the original resolution adopted by the City Council of the
City of Santa Ana on February 4, 2002.
Date:�Z49 2
Clerk of Council
City of Santa Ana
Resolution No. 2002-006
Page 3 of 3
.. Jlf�%,�.
Ca1PERS
California
Public. Employees' Retirement System
Between the
Board of Administration
EXHIBIT
California Public Employees' Retirement System
and the
City Council
City of Santa Ana
WM=rr- 17411
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 and July 1, 2001 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 July 1, 2002, and hereby replaced by the following paragraphs
numbered 1 through 12 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 local miscellaneous members and age 50 for local safety
members.
PL ASE DO NOT SIGN "EXHIBIT ONY'
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 bylaw 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 21024 (Military Service Credit as Public Service), Statutes
of 1974 for those local miscellaneous members and local safety
members entering membership prior to October 1, 1981.
PL iSE DO NOT SIGN "EXHIBIT 01
C. Section 20475 (Different Level of Benefits Provided for New
Employees). Section 21024 (Military Service Credit as Public
Service), Statutes of 1974, is not applicalbe to local miscellaneous
members and local safety members entering membership after
October 1 '1981.
d. Section 20.042 (One -Year Final Compensation).
e. Section 20903 (Two Years Additional Service Credit).
f. Section 21573 (Third Level of 1959 Survivor Benefits).
g. Section 21.548 (Pre -Retirement Optional Settlement 2 Death
Benefit).
h. Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
Section 20965 (Credit for Unused Sick Leave) for local
miscellaneous members only.
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 per covered member on account of the 1959
Survivor Benefits provided under Section 21573 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.
♦ � y
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.
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. This amendment shall be
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREIN SYSTEM
BY
KENNETH W. MARZI
ACTUARIAL & EMPLS
PUBLIC EMPLOY
AMENDMENT
PERS-CON-702A (Rev. 8\96)
`CHIEF
i R SERVICES DIVISION
RETIREMENT SYSTEM
day of
CITY COUNCIL
CITY OF SANTA ANA �O\V
BY
PRESIDING OFF&
e
WfKdts Date
Attest:
Clerk