HomeMy WebLinkAbout2008-3 - Amendment to Contract with PERS and Counc - PERS Contract AmendmentRESOLUTION NO. 2008-3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH DECLARING ITS INTENTION TO APPROVE
AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF
ADMINISTRATION, CALIFORNIA PUBLIC EMPLOYEES'
RETIREMENT SYSTEM AND THE CITY COUNCIL, CITY OF
NEWPORT BEACH
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 Cost of Additional Benefits)
applicable to: Section 21354.4 (2.5% @ 55 Full formula) for local miscellaneous
members, effective December 22, 2007. 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, 2007. Thereafter, in any given contribution year, the maximum employee cost
sharing contribution cannot exceed .838% of payroll.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
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 an "Exhibit" and by this reference made a
part hereof. Passed and adopted by the City Council of the City of Newport Beach at a regular
meeting held on the 22 "d day of January 2008. n
ATTEST:
City Clerk
A.,
CaiPERS
EXHIBIT
California
Public Employees' Retirement System
AMNDMKW TO CONTRACT
Between the
Board-of Administration
California .Public . Floyeesr 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,
205 and Dec�ember22, 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.,,
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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
locat 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 OFFIMRS.
5.. The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member irl
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 affer. .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 (30/6 at age 50 Full).
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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 21363.9 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).
A. 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).
9- Section 21548 (Pre - Retirement Option 2W bath 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 Government 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
liabilllles of Public Agency and its employes shall be pooled in a
sinVe'account, based on term insurance rates, for survivors of all
lo�hmiseellaneous members and local safety members.
b. A reasonable amount, as fixed by the Board, payable in one
insta Went within 60 days of date of contract to cover the costs of
adthinistering said System as it atT+ects 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.
D
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 thRmployee and the Board.
B. This amendment shall b�ctive on the day of
BOARD OF ADMINIST CITYCOUNCIL
PUBLIC EMPLOYEES' REMENT SYSTEM CITY OF NEWPORT BEACH
BY �, � BY
LORI MCGARTQMD, CHIEF PRESIDING OFFIC Nv
EMPLOYER .ti .ICES DIVISION
PUBLIC EMPWYEES' RETIREMENT SYSTEM N .
Watne e
Attu
Cleric
{ - AMENDMENT EM 006D
;` . .. PERS- CON- MA .(Rev. IM05)
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 the whole number of members of the City Council is seven; that the foregoing
resolution, being Resolution No. 2008 -3 was 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 22nd
day of January 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 23rd day of January 2008.
(Seal)
('ng. i
City Clerk
Newport Beach, California