HomeMy WebLinkAbout2008-6 - Authorizing an Amendment to the Contract Between The City and the Board of Administration of the California Public Employees’ Retirement System.ORDINANCE NO. 200"
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AUTHORIZING AN
AMENDMENT TO THE CONTRACT BETWEEN THE CITY
AND THE BOARD OF ADMINISTRATION OF THE
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT
SYSTEM
NOW THEREFORE, the City Council of the City of Newport Beach, California, HEREBY
ORDAINS as follows:
SECTION 1: That the Amendment to the contract between the City of Newport Beach and
the Board of Administration, California Public Employees' Retirement System is hereby
authorized, a copy of said Amendment being attached hereto, marked "Exhibit", and by
such reference made a part hereof as though set out in full.
SECTION 2: The Mayor of the City of Newport Beach is hereby authorized,
empowered and direction to execute said Amendment for and on behalf of the City.
SECTION 3: If any section, subsection, sentence, clause or phrase of this ordinance is,
for any reason, held to be invalid or unconstitutional, such decision shall not affect the
validity or constitutionality of the remaining portions of this ordinance. The City Council
hereby declares that it would have passed this ordinance, and each section, subsection,
clause or phrase hereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses and phrases be declared unconstitutional.
SECTION 4: This ordinance shall take effect thirty (30) days after its adoption, and
prior to expiration of fifteen (15) days from the passage thereof shall be published once
in the Daily Pilot, a newspaper of general circulation, published in Costa Mesa and
circulated in the City of Newport Beach, and thenceforth and thereafter shall be in full
force and effect.
SECTION 5: This ordinance was introduced at a regular meeting of the City Council of the
City of Newport Beach, held on the 22nd day of January, 2008, and adopted on the 12th
day of February 2008, by the following vote, to wit:
AYES, COUNCILMEMBERS Henn, Webb, Curry, Gardner, Mayor selich
NOES, COUNCILMEMBERS
ABSTAIN,
ABSENT C
Rosansky
EXHIBIT
California
Public Employees' Retirement System
1mr ENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Newport Beach
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,
1945, and witnessed April 27, 1945, and as amended effective March 1, 1948,
November 1, 1951, April 1, 1956, October 31, 1970, September 18, 1971, December
11, 1971, September 24, 1977, December 18, 1977, June 17, 1978, March 24, 1979,
June 30, 1979, January 12, 1989, December 2, 1989, June 12, 1996, July 12, 2000,
August 26, 2000, June 15, 2002, November 30, 2002, November 13, 2004, July 23,
2005 and December 22, 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 December 22, 2007, and hereby replaced by the following paragraphs
numbered 1 through 14 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 55 for ocean beach
lifeguards and age 50 for local fire members and local police members.
PLEASE DD NOT Sl;Y "r EX .
2. Public Agency shall participate in the Public Employees' Retirement
System from and after, July 1, 1945 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. Ocean Beach Lifeguards (included as local.safety members);
d. 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:
a. POLICE CADETS; AND
b. RESERVE OFFICERS.
5. 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 December 22, 2007 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 miscellaneous member in
employment on or after December 22, 2007 shall be determined in
accordance with Section 21354.4 of said Retirement Law (2.5% at age 55
Full).
7. The percentage of final compensation to be provided for each year of
.credited prior and current service as a local fire member and local police
member shall be determined in accordance with Section 21362.2 of said
Retirement Law (3% at age 50 Full).
n; EA SE Dun n, OT Q!C ; :T-
8. The percentage of final compensation to be provided for each year of
credited prior and current service as ocean beach lifeguards shall be
determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
9. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 20421 ( "Local Safety Member" shall include ocean beach
lifeguards of a city as described in Government Code Section
20421).
b. Section 21574 (Fourth Level of 1959 Survivor Benefits).
C. Section 21024 (Military Service Credit as Public Service).
d. Section 21389 (Second Opportunity to Elect 1959 Survivor
Benefits). Legislation repealed said Section effective September
27, 1979.
e. Section 20965. (Credit for Unused Sick Leave) for local
miscellaneous members only.
f. Section 20042 (One -Year Final Compensation).
g. Section 21548 (Pre - Retirement Option 2W Death Benefit).
h. Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21354.4 (2.5% @ 55 Full formula) for local miscellaneous
members.
The employee cost sharing contributions are not to exceed 2.420 %.
The maximum employee cost sharing contribution is the normal
cost plus the increase in the accrued liability due to the benefit
improvement amortized over 20 years. In no event shall the
employee cost sharing contribution attributable to the unfunded
liability remain in effect beyond December 31, 2027. Thereafter, in
any given contribution year, the maximum employee cost sharing
contribution cannot exceed .838% of payroll.
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10. Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
September 24, 1977. 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 Govemment Code Section 20834.
11. 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.
12. 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 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.
13. 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.
14. 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 thmployee and the Board.
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B. This amendment shall b. ctive on the day of
BOARD OF ADMINIST
PUBLIC EMPLOYEES'
SYSTEM
q�d
BY
LORI MCGAR TtMb, CHIEF
EMPLOYER $ ICES DIVISION
PUBLIC EM - OYEES' RETIREMENT SYSTEM
AMENDMENT ER#0060
PERS - CON -702A (Rev. 1 0105)
CITY.COUNCIL
CITY OF NEWPORT BEACH
BY ���
PRESIDING OFFICE
Witness gale
;. v
Attest:
Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF NEWPORT BEACH }
I, LaVonne M. Harkless, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
ordinance, being Ordinance No. 2008 -6 as duly and regularly introduced before and adopted by the
City Council of said City at a regular meeting of said Council, duly and regularly held on the 12th
day of February 2008, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Henn, Webb, Curry, Gardner, Mayor Selich
Noes: Rosansky
Absent: None
Abstain: Daigle
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 13th day of February 2008.
(Seal)
City lerk
City of Newport Beach, California
CERTIFICATE OF PUBLICATION
STATE OF CALIFORNIA )
COUNTY OF ORANGE ] ss.
CITY OF NEWPORT BEACH
I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby
certify that Ordinance No. 2008 -6 has been duly and regularly published according to law and the
order of the City Council of said City and that same was so published in The Daily Pilot, a daily
newspaper of general circulation on the following date, to wit: February 16, 2008.
In witness whereof, I have hereunto subscribed my name this cale day of i,;6
M
City Clerk
City of Newport Beach, California