HomeMy WebLinkAbout9494 - Sick Leave Credit & Military Service CreditRESOLUTION NO. 9494
A RESOLUTION OF INTENTION TO APPROVE AN
AMENDMENT TO CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION OF THE PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL OF
THE CITY OF NEWPORT BEACH (SICK LEAVE
CREDIT FOR MISCELLANEOUS MEMBERS AND
MILITARY SERVICE CREDIT FOR SAFETY MEMBERS)
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 procedure to amend
this contract is the adoption by the legislative 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 20930.3 (allowing public
service credit for up to four years of con-
tinuous military or merchant marine service),
for local safety members, and Section
20862.8 (providing service credit at retire-
ment for unused sick leave), for miscellaneous
members.
NOW, THEREFORE, BE IT RESOLVED that the City Council
of the City of Newport Beach does hereby give notice of
intention to approve an amendment to the contract between the
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City Council of the City of Newport Beach and the Board of
Administration of the Public Employees' Retirement System,
a copy of said amendment being attached hereto as an Exhibit,
including a statement of the increased costs to the City
attendant to said amendment, and by this reference made a
part hereof.
ADOPTED this
ATTEST:
City Clerk
i
f� ERTIFI @D ¢� THE ZC111GINA1 C ITY CLM OR ME CITY OP EACH
DAM JAN 1 0 1978
8th day of January , 1979.
ayor
DDO /cr
12/29/78
CITY OF NEWPORT BEACH
December 28, 1978
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Increased costs to the City of Newport Beach amending the Public Employees' Retirement
System contract to provide military service credit for Safety Members and unused
sick leave credit for Miscellaneous Members.
Estimated annual P.E.R.S. expense before amendments
Estimated increase P.E.R.S. expense for: (Note 1)
Military service credit for Safety Members (Note 2)
Unused sick leave credit for Miscellaneous Members
Total Estimated Increased Expense
Estimated annual P.E.R.S. expense providing
Military service and unused sick leave credit
Safety Miscellaneous
Members Members Total
$ 851,500 $ 523,900 $1,375,400
-0- -0-
-0- 14,300 14,300
-0- 14,300 14,300
$ 851,500 $1,389,700
NOTE.1: The above estimate is based on the bi- weekly payroll period ended December 1, 1978.
Additional expense due to salary adjustment effective July 1, 1979, is not included
in the above calculation.
NOTE 2: This represents a contingent liability to the City based on the amount of employee
participation. Costs cannot be estimated due to the likelyhood that participation
will be minimal.
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AMENDMENT TO CO,r=CT BETWEEIT THE
BOARD OF ADMINISTI.?. oa
PUBLIC EMPLOYEES' RETIRa1ENT SYSTEM
AND THE
CITY COUNCIL
OF THE
CITY OP NEWPORT BEACH
The Board of Administration, Public Employees' Retirement System, herein-
after referred to as "Board ", and the governing body of above public agency,
hereinafter referred to as "Public Agency ", having entered into a contract
under date of April 27, 1945, effective July 1; 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,
and June 17, 1978, which provides for participation of Public Agency in said System,
Board and Public Agency hereby agree as follows;
A. Paragraphs 1 through 11 are hereby stricken.from said contract as
executed effective June 17, 1978, and.hereby replaced by the
following paragraphs number 1 through 11 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 60 for miscellaneous members and age 50 for.local
police and fire members, and age 55 for local lifeguards on ocean beaches.
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 such as.
by express provisions thereof apply only on the election of contracting
agencies.
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:
e
a. Local Firemen (herein referred to as local safety members);
b. Local Policemen (herein referred to as local safety members);
c. Lifeguards on ocean beaches (included as local safety members);
d. Employees other than local safety members (herein referred to as
miscellaneous members).
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 .
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4. The fraction of final compensation to be provided for each year of
credited prior and current service as a miscellaneous member shall
be determined in accordance with Section 21251.13 of said retirement
Law (2`/, at age 60).
5. The fraction of final compensation to be provided for each year
of credited prior and current service as a safety member shall
be determined in accordance with Section 21252.01 of said .
Retirement Law (2% at age 50).
6. The fraction of final compensation to be provided for each year
of credited prior and current service as a safety member shall
be determined in accordance with Section 21252.1 of said
Retirement Law (One -half pay at age 55), for lifeguards on ocean
beaches.
7. The following additional provisions of the Public ,Employees' Retirement
Law which apply only upon election of a contracting agency shall apply
to the Public Agency and its employees:
a. 20019.3 (providing for inclusion of lifeguards on ocean beaches
as local safety members).
b. Section 20952.5 (providing for age 50 as the minimum voluntary
retirement age for local safety members, with benefit payments
co ®eating prior to age 55 subject to actuarial discount).
c. Sections 21380 -21388 (providing for allowances for survivors
of members covered under the 1959 Survivor's Program upon the
member's death before retirement).
d. Section 20930.3 (allowing public service credit under the
provisions of Chapter 830, Stats. 1976, for up to four years
of continuous military or merchant marine service).
e. Section 21389 (providing that miscellaneous members not
covered by Federal Social Security who did not elect to be
covered by the 1959 Survivor Benefit when- - Public Agency added
said benefit to its contract shall be given another opportunity
to elect to be covered under the program).
f. Section 20862.8 (providing service credit at retirement for
unused sick leave), for miscellaneous members.
8. Public Agency, in accordance with Section 20740, Government Code,
' ceased to be an "employer" for purposes of Chapter 6 of the Public
Employees' Retirement Law effective on September 24, 1977.
Accumulated contributions of Public Agency as of the aforementioned
date shall be fixed and determined as provided in Section 20759,
Government Code, and accumulated contributions.as of the afore-
me ntioned.date and'contributions thereafter made shall be held by
the Board as provided in Section 20759, Government Code.
9. Public Agency shall contribute to said Retirement .System as follows:
a. With respect to miscellaneous members, the agency shall
contribute the following percentages of monthly salaries
earned as miscellaneous members of said Retirement System:
(1) 9.145 percent on account of the liability for current
service benefits.
CON -702 -2
(2) 0.282 percent on account of the liability for the
1959 Survivor Program.
b. With respect to local safety members, the agency shall
contribute the following percentages of monthly salaries
earned as local safety members of said Retirement System:
(1) '�9.692 percent on account of the liability for current
service benefits.
c. A reasonable amount per annum, as'fixed by the Board 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 periodical investigation and valuations
required by law.
d. 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 periodical investigation and valuations
required by law.
10. 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 periodical
investigation and valuation require& by said Retirement Law.
11. Contributions required of Public Agency and its employees shall
be paid by Public Agency to the Retirement System within thirty
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 reiaittances, or adjustments on account of errors
in contributions required of any employee may be made by
direct cash payments between.the employee and the Board.
Payments by Public Agency to Board may be made in the form
of warrants, bank checks,- bank drafts, certified checks,
money orders, or cash.
B. This amendment shall be attached to said contract and shail.be effective on
the day of 19
Witness our hands this
y -
BOARD OF ADMINISTRATION
PUBLIC MPLOYEES' RETIRMENT
. Blechinger, Executive
Approved.as to form:
0-
Legal Office, PERS
day of , 19
CITY COUNCIL
OF THE
CITY OF NEWPORT BEACH
BY
Presiding Officer
Aft
QNV484 t:
Clerk
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