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HomeMy WebLinkAboutC-563 - Retiree Medical Program - Prefunding Plan - California Employers' Retiree Medical Benefit Trust Fund (CEBRT)California Public Employees' Retirement System Customer Account Services Division ARetirement Account Services Section P.O. Box 942709 Sacramento, CA 94229-2709 TTY: (877) 249-7442 Ca1PERS 888 CaIPERS (or 888-225-7377) phone (916) 795-3005 fax www.calpers.ca.gov January 4, 2013 Ms. Leilani I. Brown City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Ms. Brown: t .14 CaIPERS ID #1545983430 The contract amendment has been executed by CaIPERS. The effective date of the contract amendment is November 23, 2012. If you have any questions regarding your contract, please do not hesitate to contact our office at (888) CaIPERS (225-7377). Sincerely, t QI Retirement Contract Services DB:rj Enclosure California Public Employees' Retirement System www.calpers.ca.gov Aft Ca1PERS California Public Employees' Retirement System AMENDMENT 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, December 22, 2007, March 15, 2008 and June 20, 2009 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective June 20, 2009, and hereby replaced by the following paragraphs numbered 1 through 17 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 entering membership in the miscellaneous classification on or prior to the effective date of this amendment to contract and age 60 for local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract; age 50 for local fire members, ocean beach lifeguards and those local police members entering membership in the police classification on or prior to the effective date of this amendment to contract and age 55 for local police members entering membership for the first time in the police classification after the effective date of this amendment to contract. 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. Public Agency agrees to indemnify, defend and hold harmless the California Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the California Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attorneys fees that may arise as a result of any of the following: (a) Public Agency's election to provide retirement benefits, provisions or formulas under this Contract that are different than the retirement benefits, provisions or formulas provided under the Public Agency's prior non-CaIPERS retirement program. (b) Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than existing retirement benefits, provisions or formulas. (c) Public Agency's agreement with a third party other than CaIPERS to provide retirement benefits, provisions, or formulas that are different than the retirement benefits, provisions or formulas provided under this Contract and provided for under the California Public Employees' Retirement Law. (f) (g) (d) Public Agency's election to file for bankruptcy under Chapter 9 (commencing with section 901) of Title 11 of the United States Bankruptcy Code and/or Public Agency's election to reject this Contract with the CaIPERS Board of Administration pursuant to section 365, of Title 11, of the United States Bankruptcy Code or any similar provision of law. (e) Public Agency's election to assign this Contract without the prior written consent of the CaIPERS' Board of Administration, The termination of this Contract either voluntarily by request of Public Agency or involuntarily pursuant to the Public Employees' Retirement Law. Changes sponsored by Public Agency in existing retirement benefits, provisions or formulas made as a result of amendments, additions or deletions to California statute or to the California Constitution. 4. 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). 5. 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. 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 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). 7 The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous members in employment on or after December 22, 2007 and not entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21354.4 of said Retirement Law (2.5% at age 55 Full). 3. The percentage of final compensation to be provided for each year of credited current service as a local miscellaneous member entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract shall be determined in accordance with Section 21353 of said Retirement Law (2% at age 60 Full). 9. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member entering membership in the safety classification on or prior to the effective date of this amendment to contract shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 10. The percentage of final compensation to be provided for each year of credited current service as a local fire member entering membership for the first time in the fire classification and ocean beach lifeguards entering membership for the first time in the ocean beach lifeguard classification after the effective date of this amendment to contract shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). 11. The percentage of final compensation to be provided for each year of credited current service as a local police member entering membership for the first time in the police classification after the effective date of this amendment to contract shall be determined in accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full). 12. 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) for local miscellaneous members and local safety members entering membership on or prior to the effective date of this amendment to contract. g. Section 21548 (Pre -Retirement Option 2W Death Benefit). h. Section 20516 (Employees Sharing Cost of Additional Benefits) for miscellaneous members entering membership on or prior to the effective date of this amendment to contract 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. Section 20475 (Different Level of Benefits). Section 21362 (2% @ 50 Full formula) and Section 20037 (Three -Year Final Compensation) are applicable to local fire members entering membership for the first time in the fire classification and ocean beach lifeguards entering membership for the first time in the ocean beach lifeguard classification after the effective date of this amendment to contract, Section 21363,1 (3% @ 55 Full formula) and Section 20037 (Three - Year Final Compensation) are applicable to local police members entering membership for the first time in the police classification after the effective date of this amendment to contract, and Section 21353 (2% @ 60 Full formula) and Section 20037 (Three - Year Final Compensation) without Section 20516 (Employees Sharing Cost of Additional Benefits) are applicable to local miscellaneous members entering membership for the first time in the miscellaneous classification after the effective date of this amendment to contract. 13. 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. 14, 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. 15. 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. 16. 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. B. This amendment shall be effective on the 17. 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 theB oars day of BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NEWPO: :EACH BY EC �� `�luiti fir° BY KAREN D FRANK, CHI F PRESIDINe .T 'ICER CUSTOMER ACCOUNT SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT CaIPERS ID #1545983430 PERS-CON-702A Witness Date Attest: Clerk CITY OF NEVYPORT BEACH MEMORANDUM: From City Manager Council Members TO December 15, Attached is a copy of the study done by the consultant on the Public Employee's Retirement System. This item will be placed on the Study Session on January loth, 1977. Reply wanted 0 Reply not necessary 0 Nate er Robert L. Wynn 18 76 November 1976 Analysis of the R ETIREMEN T PLAN Of The CITY OF NEWPORT BEAC H Ruland and Mattingley R..1_L A1'LD _ A N.p . M AT,T, I. N_G1_E Y November 24, 1976 Mr. Robert L. Wynn City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, California Dear Mr. Wynn: 92613 We are pleased to submit this report covering our study of the Retirement Plan for the City of Newport Beach. Background The City of Newport Beach has, for many years, participated in the Public Employees Retirement System (P. E. R, S.) to provide retirement benefits for the City's employees. The fiscal year cost, of the City' s Plan of benefits as of July 1, 1976 increased by more than $100, 000. The City Council has appropriately asked if value is being received in light of the increased cost, and if appropriate benefits are being provided to the City employees through the P.E. R. S. You asked us to undertake a review of your program and to provide: 1. A detailed sununary of the City's present retirement benefits. 2. Our evaluation of the appropriateness of the present cost. 3. Our findings of the benefit deficiencies and overlaps in the Retirement Plan relative to the City's other employee benefit plans. 4. Our recommendations as to the feasibility of the City obtaining equivalent retirement benefits through more efficient and economical means. 5. The factors to be considered by the City relative to the possible withdrawal from the P. E. R. S. 301 EAST COLORADO BOULEVARD • PASADENA, CALIFORNIA 91101 (213) 681-34E19 • LOS ANGELES (213) 681-2622 2192 DUPONT DRIVE • SUITE 207 • IRVINE,CALIFORNIA 92715 (114) 752-6162 November 24, 1976 Mr. Robert L. Wynn Summary of findings and recommendations We recommend: 1, The miscellaneous members Plan be amended in order that it will be removed from the "pooled" method for determining its cost, Z. The Plan remain with the P. E. R. S. if the Plan benefits are to remain unchanged. Our recommendations are based on these findings: 1. The miscellaneous members Plan is currently requiring a greater cost than if it were not "pooled". Z. The P. E. R. S. is obtaining a competitive rate of investment return on its total assets, and the expenses charged by the P. E. R. S. are very nominal. 3. The assumptions used to determine the City's Plan costs appear to be reasonable and prudent. 4. The overlapping death and disability benefits of the City's retirement Plan relative to its other employee benefit plans are necessary in order that the City will remain competi- tive with other municipalities. 5. The loss of the portability of employees benefits is a sig- nificant deterrent to the City withdrawing from the P. E. R. S. unless another public system is adopted. 6. The Orange County Retirement system might be a viable alternative to the P. E. R. S. , if improved benefits can be afforded by the City. We appreciate the opportunity to have been of assistance in this review of your Retirement Plan. We will be happy to answer any questions concerning our report. Sincerely, RULAND and MATTINGLE 1, Participation PART I CITY OF NEWPORT BEACH SUMMARY OF RETIREMENT PLAN MISCELLANEOUS MEMBERS All employees become members when they are appointed to their job. Excludes employees working less than half time. 2. Normal retirement date First day of month following age 60 with 5 years of service. 3. Mandatory retirement date First day of month following age 67, 4. Early retirement date First day of month following age 50 with 5 years of service. 5. Normal retirement pension 6. Early retirement pension 7. Late retirement pension -1- 2% of "final compensation" multi- plied by years of service. i.e. 25 years = 50% of final compensation. "Final compensation" is the average monthly pay of the highest 3 consecu- tive years of service. Normal retirement pension is actuar- ially reduced for years earlier than age 60. i. e. age 50 with 30 years of service = 30. 78% of final compensa- tion. Normal retirement pension is actuar- ially increased for years later than age 60, however no increase is pro- vided for years later than age 63. i. e. age 63 with 30 years of service = 72. 6% of final compensation. 'inland and Matlingley 8. Cost of living pension benefit 9. Pre retirement death benefits The employee's bene- ficiary may elect to receive either of the following eligible com- binations: A only A+C B + C Retiree's benefits are auto- matically adjusted on May 1 commencing with the 2nd cal- endar year following retirement. Adjustments are based on changes in the California Consumer Price Index (CPI) as of April 1 of each year. Adjustments are only made when at least a 1% change is applicable to the retiree's base retirement benefit. Increase adjustments cannot ex- ceed 2% per year, compounded from the retiree's retirement date. Decrease adjustments cannot reduce a retiree's benefits be- low his base retirement benefit. A. Basic death benefit paid to employee's beneficiary is the employee's accumulated con- tributions plus interest, anu 1 month of the employee's salary for each year of his service, maximum 6 months salary benefits. B. If the employee is eligible for retirement at his death, 50% of his earned pension benefit can be paid to: (1) His spouse, until re- married, provided they were married for 1 year before employee's death, or, (2) His unmarried children until the youngest reaches age 18. 'Inland and Mnttingley 9. Cont'd "Spouse" is female only age 62, or male only 65; or either, any age with children. "Children" are under 18 and unmarried or under 22, unmarried and fulltime students. 10. Post retirement death benefit 11. Optional Settlements C. Regardless of whether the employee is eligible for re- tirement at his death, the following monthly allowance s can be paid to: (1) Spouse, until remarried, with 2 or more children (2) only 3 children (3) spouse with 1 child (4) only 2 children (5) only 1 child (6) only spouse (7) only dependent parents _ $430 $430 $360 $360 $180 $180 $180 each $500 lump sum paid to employee's beneficiary plus If the employee, at retirement, elected an "optional settlement", survivor continuance will be paid, based on the option selected. Instead of receiving only a lifetime pension for himself, an employee, at retirement may elect to take a re- duced pension with survivor contin- uance •ienefits payable after his death: -3- Ruland and Mattinglcy a. Beneficiary will receive the balance of the employee's contributions in a lump sum. b. Beneficiary will receive the same amount of monthly bene- fits that employee was receiving. c. Beneficiary will receive 50%of the amount of monthly benefits that employee was receiving. d. Beneficiary will receive an amount determined by the employee. This tailor made benefit must be approved by the employer and the P. E. R. S. 1 1 1 1 1 1 1 1 1 1 1 1 12, Disability benefits "Disability" means the inability to per- form the duties of the employee's .fob due to an injury or illness which is ex- pected to be perma- nent or last for an indefinite period of time. 13. Termination of employment At the time of "disability" the employee is entitled to a monthly benefit based on his years of service when disability commences, payable for life or untilhe is re- covered from the disability: Years of Service Benefit a. less than 5 b. 5 but less than 10 c. 10 but less than 18 1/2 d. 18 1/2 or more refund of his contri- butions 1. 8% of his final compen- sation multi- plied by years of service 1. 8% of his final compen- sation multi- plied by the number of years of service pro- jected to age 60. Maximum is 33. 33% of final compensation. same as b., minimum is 33, 33% of final compen- sation. a. With less than 5 years of service, automatic return of employee contributions plus interest. b. With 5 or more years of service, he can elect to have his contri- butions plus interest returned to him, or he can leave his contri- -4- Ruland and Mattingley 13. - b. Cont'd butions in': the Plan and when he reaches retirement age can apply for his earned pension benefits. -5- Rnland and Maltingley 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF NEWPORT BEACH SUMMARY OF RETIREMENT PLAN BENEFITS SAFETY MEMBERS 1. • Participation All employees become members when they are appointed to their job. Excludes employees working less than hall time. 2. Normal retirement date First day of month following age 55 with 5 years of service. 3. Mandatory retirement date First day of month following age 65. 4. Early retirement date First day of month following age 50 with 5 years of service. 5. Normal retirement pension -6- Ruland and Mattingley "Benefit Factor" percentage of "final compensation" multiplied by years of service. The "Benefit Factor" is based on the employee's age at entry into the Plan. i.e. Plan entry age Benefit Factor 21 1.471% 25 1. 667% 30 2, 000% 35 2, 500% Therefore an employee who entered the Plan at age 30 and retired at age 55 with 25 years of service will de- rive a monthly pension benefit of 50% of his final compensation. "Final compensation" is the average monthly pay of the highest 3 consecu- tive years of service. 6. Early retirement pension 7. Late retirement pension 8. Cost of living pension benefit 9. Pre retirement death benefits The employee's beneficiary may elect to receive either of the following eligible combinations: A only B only A+D C+D Normal retirement pension is actuarially reduced for years earlier than age 55. i.e. age 50 with 20 years of service = 27. 04% of final compensation. Same formula as used for normal retirement pension. Pension bene- fits cannot exceed 75% of final comp- ensation. Retiree's benefits are automatically adjusted on May 1 commencing with the 2nd calendar year following re- tirement. Adjustments are based on changes in the California Consumer Price Index (CPI) as of April 1 each year. Adjustments are only made when at least a 1% change is applicable to the retiree's base retirement benefit. Increase adjustments cannot exceed 2% per year, compounded from the retiree's retirement date. Decrease adjustments cannot reduce a retiree's benefits below his base retirement benefit. A. Basic death benefit paid to employee's beneficiary is the employee's accumulated con- tributions plus interest, and 1 month of the employee's salary for each year of his service, maximum 6 months salary benefits. B. If the employee's death is caused by injury or illness incurred on the job, 50% of his final compen- sation can be paid to: Ruland and Mattingley 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 9. Cont'd "Spouse" is female only age 62, or male only age 65; or either, any age, with children. "Children" are under 18 and unmarried, or under 22, un- married and fulltime students. - 8- (1) (2) His spouse until re- married, or His unmarried child- ren until the youngest reaches 18. If the employee's death occurs in the performance of his duty, from external or physical force, the following percentage of final compensation can be paid: spouse and 1 child 62 1/2% spouse and 2 child- 70% ren spouse and 3 or more 75% children C. If the employee is eligible for retirement at his death, 50%of his earned pension benefit can be paid to: (1) His spouse until re- married, provided they were married for 1 year before employee's death, or His unmarried children until the youngest reaches 18. (2) D. Regardless of whether the em- ployee is eligible for retire- ment at his death, the following monthly allowances can be paid to: (1) Spouse, until remarried, with 2 or more children= $430 (2) only 3 children $430 (3) spouse with 1 child $360 (4) only 2 children $360 (5) only 1 child $180 (6) only spouse $180 (7) only dependent parents $180 each 10. Post retirement death benefit 11. Optional Settlements 12. Disability benefits "Disability" means the inability to perform the duties of the employee's job due to an injury or illness which is expected to be permanent or last for an indefinite period of time. -9- $500 lump sum paid to employee's beneficiary plus If the employee, at retirement, elected an "optional settlement", survivor continuance will be paid, based on the option selected. Instead of receiving only a life time pension for himself, an employee, at retirement, may elect to take a reduced pension with survivor continuance benefits payable after his death: a. Beneficiary will receive the balance of the employee's contributions in a lump sum. b. Beneficiary will receive the same amount of monthly benefits that employee was receiving. c. Beneficiary will receive 50% of the amount of monthly bene- firs that employee was receiving. d. Beneficiary will receive an amount determined by the employee. This tailor made benefit must be approved by the employer and the P. E. E.S. For a "disability" caused by on the job injuries, the employee is en- titled to a monthly benefit of 50% of his final compensation, payable for life or until he is recovered from the disability. For a non -work related "disability" the employee is entitled to a monthly benefit based on his years of service when disability commences, which is payable for life or until he is recovered from the disability: Ruland and Alattingley 1 1 1 1 1 1 1 1 1 1 1 1 1 13, Termination of employment Years of Service a. less than 5 b. 5 but less than 10 c. 10 but less than 18 1/2 d, 18 1/2 or more Benefit refund of his contribu- tions 1. 8% of his final comp- ensation multiplied by years of service. 1. 8% of final comp- ensation multiplied by the number of years of ser- vice projected to age 60. Max- imum is 33. 33% of final comp- ensation, same as b., minimum is 33. 33% o" final comp- ensation. a. With less than 5 years of service, automatic return of employee contribution plus interest. b. With 5 or more years of service, the employee can elect to have his contributions plus interest returned to him or he can leave his contributions in the Plan and when he reaches retirement age can apply for his earned pension benefits. -10- Roland and Matfingley PART II CITY OF NEWPORT BEACH EVALUATION OF COST The present cost of the City's Retirement Plan through P. E. R. S. is as follows: Miscellaneous Members The employee must contribute 7%of gross pay. Interest @ 6% annually is credited to these contributions, Employee contributions are automatically re- turned, with interest, to employees who terminate with less than 5 years part- icipation in the P. E. R. S. Based on the annual payroll of the City's miscellaneous members, as of July 1, 1975, the employee's annual contributions for the current fiscal year will be $300.400, The employer contribution rate is currently 9. 67% of gross pay. The employer contribution rate is redetermined annually by the P. E. R. S. and could increase by up to 1% of gross pay next year. Based on the annual payroll of the City's miscellaneous members as of July 1, 1975, the City's annual contributions for the current fiscal year will be $415, 000. The costs for the City's miscellaneous members benefits are currentlydetermined on a pooled basis . This means the costs are not determined solely by the exper- ience of the City employees. Instead, all agencies participating in the P. E. R. S. with the same benefits, are pooled together and the Plan costs are determined based on the experience of this pool. Information provided by the P. E. R. S. indicates that the City is currently paying . 60% of gross pay more than would be required for the City's employees benefits if you were not in the pool. For the current year this is nearly $26, 000. Therefore, the City could realize an immediate cost reduction by getting out of the pool. This can be accomplished by Amending your Plan, such as adding "military service credit" or "service credit for unused sick pay at retirement". The cost of adding such provisions would have to be determined by the P. E. R. S. -11- Ruland and 111atlingley Henceforth, your costs would be based only on the experience of the employees of the City, We strongly recommend this change, Safety Members The employee must contribute, based on his age at entry into the Plan, from 5. 64%to 12. 02%of gross pay. Interest @ 6% annually is credited to these contributions, Employee contributions are automatically returned, with interest, to employees who terminate with less than 5 years partici- pation in the P. E. R, S. The employee contributions of safety members for the current fiscal year are expected to be $328, 500. The employer contribution rate is currently 11. 027% of gross pay. The employer contribution rate is redetermined annually by the P. E. R. S. and is scheduled to increase as of July 1, 1977, by up to 11/2% of gross pay. The current fiscal year cost to the City is expected to be $433, 400 based on the annual payroll as of July 1, 1975, of the City's safety members. The cost for the City's safety members is determined by the experience of the City's employees only. Therefore, this cost is being determined as fairly as possible. All Members The total employee and employer contributions to the City's Plan, for the current fiscal year, are expected to amount to $15 477, 300. In operation your Pension Plan involves the setting aside of dollars now for delivery at a future time. Such advance funding is done in a systematic manner according to assumptions as to mortality, investment return, expenses, and salary changes, Periodic actuarial valuations measure the actual experience versus the assumed experience. Such measurement determines the need for cost increases or decreases, as well as the validity of the assumptions used. The assumptions used for the City's Plan are detailed in Exhibit A.. Within the scope of this study, we can only comment that the present assumptions used for the City's Plan appear to be reasonable and prudent. -12- Ruland and Mattingley 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Since the benefits of the City's Plan would be expected to be the same regardless of the funding system used, the benefits costs are fixed. Therefore, the only real cost variables are the expenses and the invest- ment return of the Plan. Currently, the annual expenses under the P, E. R. S. are . 15% of assets which is very nominal. It is doubtful that the level of P. E. R. S. expenses could be duplicated through an alternate funding medium. Also, the current aggregate rate of investment return of P. E. R. S. is 6. 00% on its entire portfolio. The P. E. R. S. 6% aggrega: - Nate of return on its portfolio compares very favorably with other profe 'onally managed pension funds where the plan funds have been contributed and invested over the past 10 years or more, as has been the case for the City's Plan. This rate of return might be improved immediately by transferring to an alternate funding medium, particularly in fixed income investments. As a rule of thumb, an improvement in 1/2 of 1% in annual investment re- turn will reduce the ultimate cost of a pension plan by approximately 10%. Therefore, if investment return could be improved by 1% over the P. E. R. S. rate of return, your plan cost would ultimately reduce by 20%. The diffi- culty is in sustaining such a rate of return. The P. E. R. S. , last year, on new money invested, earned 8. 86% on fixed income investments and 2. 23% on equity investments for a total new money return of 6. 06%u. The question is then, while the immediate aggregate investment return for the Plan funds might be improved, can the City over the long run sustain a higher aggregate rate of return than the P. E. R. S. ? To accomplish such a goal, professional management of the funds would undoubtedly be required, particularly in light of todays fiduciary responsi- bilities of "prudently" investing employee's pension funds, The Plan expenses could increase significantly, with professional invest- ment management fees. We believe the P. E. R. S. is providing fair expenses and a reasonable aggregate rate of investment return, that in total would be difficult to outperform. Also, the portability of the employee' s benefits under the P. E. R. S. is an important factor, and is discussed further in our study, 1 -13- Ruland and Mattinglcy 1' 1 .1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Finally, we have included in Exhibit B, the Actuarial Balance Sheet of the City's Plan as of July 1, 1975. The P. E. R. S. is unable, at this time, to provide the appropriate figures as of July 1, 1976. This Balance Sheet details the financial status of the miscellaneous members Plan and the safety members Plan. The totals for both Plans are: Assets $10, 493, 907 Liabilities 14, 997, 246 Unfunded liabilities $ 4, 503, 339 The unfunded liabilities represent,essentially, the cost of accrued benefits, as of July 1, 1975, which were not yet funded on that date. Future benefit accrual costs are funded by future annual payments. The unfunded liability is amortized, for funding by the City, over 25 future years. -14- Malawi and Maliingley PART III CITY OF NEWPORT BEACH BENEFIT OVERLAPS AND DEFICIENCIES Disability income benefits for non work related disabilities, are provided for City employees through an insured disability income plan as well as through the Retirement Plan. The overall coverage is 66 2/3% of the employee's pay at time of disability, and may be paid partially from each plan. The insured plan cost reflects credit for the benefits to be paid by the Retirement Plan. Work related disability benefits are provided through Workers Compensa- tion, and through the Retirement Plan. This duplication of uenefits should be dealt with, to the extent possible, under the Workers Compensation Plan. The City maintains an insured group life insurance plan providing 100% of annual earnings. This amount is doubled for accidental death. In addition, the Retirement Plan provides substantial survivors benefits for the spouse and children in the event of the employee's death. We do feel that the contingencies of death and disability should be addressed separately from retirement benefits and that it is generally more feasible to insure these contingencies through group life. and disability plans than to self insure them through the pension plan. However, through the P. E. R. S. and other public systems the portability and preservation of these benefits for employees moving from or to other municipalities can be an important factor. This provision does not nec- essarily help the City in retaining it's employees but is valuable in attract- ing new employees. The City is providing substantial death benefits and disability benefits for its employees, and these benefits are competitive with those provided by other municipalities. -15- Ruland and Mailingley PART IV CITY OF NEWPORT BEACH - FEASIBILITY OF ALTERNATE SYSTEMS The only alternate system to the P. E. R. S. for providing the identical retirement benefits of the City's Plan is to have your own Plan. Such a change would require the City to be responsible for the investment of the Plan funds. This responsibility could be partially relieved by im- plementing a contract with an insurance company or a trustee (bank or corporate) who would be responsible for managing the funds investment. The City would still have to decide what portions of the funds would be invested in equities, fixed income investments, etc. If the City were to retain the responsibility for investment of the Plan funds, obtaining the services of a professional investment advisor would be prudent. Any of these fund investment alternatives will require expenses not currently incurred for the City's Plan. The extent of such additional expenses would be contingent on the method implemented, Further, the services of an independent actuary or the insurance company's actuary, would be required, to perform periodic actuarial valuations to determine the Plan cost. Such services could reasonably be five times great- er than are the current charges by the P. E. R.S. for actuarial work. Also, while the benefits currently provided by the Plan could be duplicated, the portability of the employees benefits would be very difficult to duplicate. This benefits portability provision could alone be a significant deterrent to the City having it's own plan. Based on these factors we do not believe it is feasible for the City to withdraw from the P. E. R. S. if the present plan benefits are to be continued. If, on the other hand, the City desires to change its plan of benefits, the Retirement Plan for Orange County Employees, could possibly provide the City with a feasible alternative to the P. E. R. S. While the costs of the City's participationin the Orange County plan would have to be determined by the system's actuary, and the system's retirement -16- Ruland and Mattingley board would have tr; agree to the City's participation, the portability of benefits provisi; would be preserved by the City's transfer to this system. We understand that several municipalities in Orange County are seeking the Retirement Board's approval for their participation in the Orange County Plan. We also understand there is considerable resistance by the system to admit these municipalities, primarily because the system does not desire to increase its membership with large numbers of safety personnel. The Orange County Plan provides increased Plan benefits to those currently provided by the City's Plan. Therefore it is reasonable to assume that transferring to the Orange County Plan would result in increased benefit costs to the City. Based on these factors, we believe the City should first determine if it intends to increase its Plan benefits and if so what additional cost can the City afford. Then, the feasibility of the Orange County Plan can be better determined. -17- Rnland and Maltingley 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 PART V CITY OF NEWPORT BEACH P. E. R. S. WITHDRAWAL PROVISIONS The P. E, R. S. requires a one year advance notice if the City intends to withdraw its participation. Since it is not feasible to withdraw at any date other than June 30, the City, apparently, could not withdraw earlier than June 30, 1978. In the event withdrawal from the P. E. R. S. is approved, the only group of employees that the City could require to completely withdraw from the P. E. R. S. are the active employees at the date of withdrawal by the City. All inactive employees, not yet retired, would have the option to remain as participants in the P. E. R. S. or to transfer to the new system being adopted by the City at that time. All retired employees must remain as participants in the P. E. R. S, and cannot transfer to the City's new system. The assets of the P. E. R. S. are valued only as of June 30, each year making this the only practical date for the City's withdrawal. Presently the Valuation Assets of the P. E, R. S. are accounted for on a "book value" basis. This method does not accurately reflect the "market value" of such funds. However, upon withdrawal from the P. E. R. S. the City's Plan funds, to be transferred to a new system, would be determined on their "market value". As of June 30, 1976 the "market value" of the P. E. R. 5. 'valuation Assets was 94% of their "book value". Therefore, if and when the City were to withdraw from the P. E. R, S. , the amount of funds to be transferred may be more or less than the Valuation Assets on that date. The funds withdrawn from the P. E. R. 5. for active and inactive employees, would completely release the P. E. R. S. from providing any benefits for these employees. All benefits for these employees would then be the re- sponsibility of the new system adopted by the City, -18- Roland and Mattingley The benefits for those inactive employees electing to remain in the P. E. R. S. and all retired employees would be the full responsibility of the P. E. R. S. The P. E. R. S. would at the time of withdrawal, actuarially determine their ex!, ;-Led liability for these employees benefits and would retain such ne<. ;ary funds. No further adjustments, debit or credit, would be appli(.:.:,le to the City. This method of determining fund values available for transfer, is a fair and reasonable method. However, the determination of the funds to be retained by the P. E. R. S. to cover their continuing liabilities for employees remaining in the P.E. R. S. should be carefully scrutinized at that time. • -19- Rnland and Mattingley EXHIBIT A CITY OF NEWPORT BEACH RETIREMENT PLAN ACTUARIAL ASSUMPTIONS Interest Rate 6% per year. Rates of Withdrawal, Retirement, Death, and Disability Developed from a study of the experience from July 1, 1969, to June 30, 1973. Withdrawal rates are given on a five-year select and ultimate basis. Each employee category has separate rates. Mortality after both normal and disability retirements was also studied. Retirement Age An assumed normal retirement age was not used. Retirement is handled as an additional decrement. Growth in Membership For purposes of amoritzing the unfunded supplemental liability, the aggregat.: member payroll was assumed to increase at 6% per year - 5% for annual salary increase, 1% for growth in member- ship. Salary Scale 9% per year for first five years. 4% thereafter. Valuation of Assets Bonds valued at book, adjusted for accrual of discount and amor- tization of premium to date of maturity (or call date, if lower value results). Mortgages at face. Corporate shares at cost. Administrative Expense Expenses are met by a reduction in the gross yield rate. -20- Raland and Matlingley Actuarial Cost Method Projected cost method. The supplemental liability was split into two classes: resulting from service prior to membership and re- sulting from service after membership, but prior to the valuation date. Amortization of the latter is assumed to be completed on June 30, 2000, The amortization period for the first class varies by local agency but never extends past June 30, 2000. - 21- Ruland and Alaningley EXHIBIT B CITY OF NEWPORT BEACH RETIREMENT PLAN ACTUARIAL BALANCE SHEET July 1, 1975 Miscellaneous Safety Members Members Assets Employer $3, 609, 412 $2, 893, 550 Employee 1, 939, 345 2, 051, 600 Total $5, 548, 757 $4, 945, 150 Liabilitie s Active employees Retirees Total Unfunded liabilities Assets minus liabilities $5, 681, 764 1, 694, 306 $7, 376, 070 $5, 547, 606 2, 073, 570 $7, 621,176 $1, 827, 313 $2, 676, 026 Liabilities are the present value of accrued benefits as of July 1, 1975. Therefore the unfunded liabilities are the liabilities not yet funded, -22- Ruland and Mattingley • 4 Ca1PERS ! • California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach The Board of Administration, Califomia 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, December 22, 2007 and March 15, 2008 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 March 15, 2008, and hereby replaced by the following paragraphs numbered 1 through 13 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, 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 safety member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 8. 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, 9. 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. 10. 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. 11. 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. 12. 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. 13. 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 2oth day of June , 2009 . BOARD OF ADMINISTRATION CITY C PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY 'F NEWPO-T IEtACH BYf' LORI GA TLAND, CHIEF P-' 'FFIC R EMPLOY SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: D (6'44 Clerk AMENDMENT ER# 60 PERS-CON-702A (Rev. 10%05) CALIFORNIA PUBLIC •PLOYEES' RETIREMENT SYST• Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CaIPERS (225-737T) I hereby certify that the adopted on CERTIFICATION OF FINAL ACTION OF GOVERNING BODY City Council of the (goveming body) City of Newport Beach (public agency) February 12 , 2008 , by an affirmative vote of a majority (date) of the members of said Goveming Body, orrlinear e (Ordinance or Resolution) No. 2008-6 approving the attached contractual agreement between the Goveming Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said Ordinance (Ordinance or Resolution) in the form fumished by said Board of Administration being attached hereto. ofthhw,, fiy gage, Clerk/Secretary City Clerk Title Date March 3, 2008 PERS-CON-5 (Rev. 1196) California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach e The Board of Administration, Califomia Public Employees' Retirement System, hereinafter referred to as Board, and the goveming 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. • 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). • • • • 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. • • • 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 Govemment 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 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 Tess 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 15th day of March , 2008 BOARD OF ADMINISTRATION CITY CO - IL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY a NE -ORT[ =t' CH BY ' »7 cfrae-r .1J BY LORI G • RTLAND, CHIEF P"E SING •FFI 'ER EMPLOY- - SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT ERN 0060 PERS-CON-702A (Rev. 10\05) 3 /31og Witness Date Attest: Clerk DELEGATION OF AUTHORITY TO REQUEST DISBURSEMENTS RESOLUTION OF THE CITY COUNCIL (GOVERNING BODY) OF THE CITY OF NEWPORT BEACH (NAME OF EMPLOYER) The CITY COUNCIL (GOVERNING BODY) the positions of delegates to the incumbents in Administrative Services Directorand (TITLE) Deputy Director of Administrative Services authority to request on behalf (TITLE) of the Employer disbursements from the Other Post Employment Prefunding Plan and to certify as to the purpose for which the disbursed funds will be used. Witnes Date By Title MAYOR tallentrt. 43/or OPEB Delegation of Authority (2/07) -w •A Ca1PERS CERTIFICATION OF OPEB ACTUARIAL INFORMATION AND FUNDING POLICY CERTIFICATION OF OPEB ACTUARIAL INFORMATION As Actuary for the plan, I certify that the valuation for the City of Newport Beach upon which the enclosed summary of actuarial information is based, meets the following criteria: • The valuation was prepared on the basis of the OPEB assumption model prescribed by the CaIPERS Board and in effect at the time of the valuation. • The valuation has been prepared and signed by a Fellow or Associate of the Society of Actuaries who is also a Member of the American Academy of Actuaries. ' • The valuation has been prepared in accordance with generally accepted actuarial principles. • In the case where the actuarial valuation is to be performed on a biennial cycle: • this valuation includes (ARC) information that covers two fiscal years • other actuarial information for the second fiscal year will be provided after benefit payments and contributions are provided by the agency. • The valuation has been prepared in accordance with the requirements set forth in Governmental Accounting Standards Board (GASB) Statements No. 43 and No. 45. • If employer assets to pre -fund other post -employment benefits are invested in an irrevocable OPEB trust other than the California Employers' Retiree Benefit Trust, the liabilities associated with those assets are not included in the summary of actuarial information. I further certify that the discount rate is consistent with the anticipated level of funding pursuant to the relevant section of GASB 43, and the employer's certification. June 30, 2006 Valuation Date John E. Bartel, ASA, FCA, EA, MAAA tinted Name of ctua and Designationnn �q H_1`1t? 007 Signature Date 'In cases where the actuary performing the work does not meet these criteria, the valuation may be acceptable if the person has equivalent qualifications that are acceptable to the CaIPERS Board. Please provide the qualifications of the actuary performing the valuation. O:\Chents\City of Newport Beach\OPEB\06-30-06 ValuationlReports\BA 07-O8-xx Newport Beach CaIPERS OPEB Trust Certifica4lon.doc CERTIFICATION OF FUNDING POLICY As the employer, I certify that our funding policy is to contribute consistently an amount at least equal to * % of the ARC. CITY OF NEWPORT BEACH Name of Employer Homer L. Bludau, City Manager Printed Name and Title of Person Signing the Form * 0% of the ARC related to the implicit subsidy and an amount greater than or equal to 100% of the ARC related to the cash (explicit) subsidy. O:1Clionts\City orNewport Beach\OPEB106-30.06 Valuation \Rcports\BA 07-08-xx Newport Beach CatPERS OPEB Trust Ccrtification.doc CALIFORNIA EMPLOYER'S RETIREE BENEFIT TRUST PROGRAM ("CERBT") AGREEMENT AND ELECTION OF CITY OF NEWPORT BEACH (NAME OF EMPLOYER) TO PREFUND OTHER POST EMPLOYMENT BENEFITS THROUGH CaIPERS WHEREAS (1) Government Code Section 22940 establishes in the State Treasury the Annuitants' Health Care Coverage Fund for the prefunding of health care coverage for annuitants (Prefunding Plan); and WHEREAS (2) The Califomia Public Employees' Retirement System (CaIPERS) Board of Administration (Board) has sole and exclusive control and power over the administration and investment of the Prefunding Plan (sometimes also referred to as CERBT), the purposes of which include, but are not limited to (i) receiving contributions from participating employers and establishing separate Employer Prefunding Accounts in the Prefunding Plan for the performance of an essential governmental function (ii) investing contributed amounts and income thereon, if any, in order to receive yield on the funds and (iii) disbursing contributed amounts and income thereon, if any, to pay for costs of administration of the Prefunding Plan and to pay for health care costs or other post employment benefits in accordance with the terms of participating employers' plans; and WHEREAS (3) CITY OF NEWPORT BEACH (NAME OF EMPLOYER) (Employer) desires to participate in the Prefunding Plan upon the terms and conditions set by the Board and as set forth herein; and WHEREAS (4) Employer may participate in the Prefunding Plan upon (i) approval by the Board and (ii) filing a duly adopted and executed Agreement and Election to Prefund Other Post Employment Benefits (Agreement) as provided in the terms and conditions of the Agreement; and WHEREAS (5) The Prefunding Plan is a trust fund that is intended to perform an essential governmental function within the meaning of Section 115 of the Internal Revenue Code as an agent multiple -employer plan as defined in Governmental Accounting Standards Board (GASB) Statement No. 43 consisting of an aggregation of single -employer plans, with pooled administrative and investment functions; Rev. 2/7/2007: Rev 6/18/2007. Rev 10/10/2007 NOW, THEREFORE, BE IT RESOLVED THAT EMPLOYER HEREBY MAKES THE • FOLLOWING REPRESENTATION AND WARRANTY AND THAT THE BOARD AND EMPLOYER AGREE TO THE FOLLOWING TERMS AND CONDITIONS: A Representation and Warranty Employer represents and warrants that it is a political subdivision of the State of California or an entity whose income is excluded from gross income under Section 115 (1) of the Internal Revenue Code. B. Adoption and Approval of the Agreement; Effective Date; Amendment (1) Employer's governing body shall elect to participate in the Prefunding Plan by adopting this Agreement and filing with the CaIPERS Board a true and correct original or certified copy of this Agreement as follows: Filing by mail, send to: CaIPERS Constituent Relations Office CERBT (OPEB) P.O. Box 942709 Sacramento, CA 94229-2709 Filing in person, deliver to: CaIPERS Mailroom Attn: Employer Services Division 400 Q Street Sacramento, CA 95814 (2) Upon receipt of the executed Agreement, and after approval by the Board, the Board shall fix an effective date and shall promptly notify Employer of the effective date of the Agreement. (3) The terms of this Agreement may be amended only in writing upon the agreement of both CalPERS and Employer, except as otherwise provided herein. Any such amendment or modification to this Agreement shall be adopted and executed in the same manner as required for the Agreement. Upon receipt of the executed amendment or modification, the Board shall fix the effective date of the amendment or modification. (4) The Board shall institute such procedures and processes as it deems necessary to administer the Prefunding Plan, to carry out the purposes of this Agreement, and to maintain the tax exempt status of the Prefunding Plan. Employer agrees to follow such procedures and processes. Rev 10/10/2007 2 C. Actuarial Valuation and Employer Contributions (1) Employer shall provide to the Board an actuarial valuation report on the basis of the actuarial assumptions and methods prescribed by the Board. Such report shall be for the Board's use in financial reporting, shall be prepared at least as often as the minimum frequency required by GASB Statement No. 43, and shall be: prepared and signed by a Fellow or Associate of the Society of Actuaries who is also a Member of the American Academy of Actuaries or a person with equivalent qualifications acceptable to the Board; (b) prepared in accordance with generally accepted actuarial practice and GASB Statement Nos. 43 and 45; and, (a) (c) provided to the Board prior to the Board's acceptance of contributions for the valuation period or as otherwise required by the Board. (2) The Board may reject any actuarial valuation report submitted to it, but shall not unreasonably do so. In the event that the Board determines, in its sole discretion, that the actuarial valuation report is not suitable for use in the Board's financial statements or if Employer fails to provide a required actuarial valuation, the Board may obtain, at Employer's expense, an actuarial valuation that meets the Board's financial reporting needs. The Board may recover from Employer the cost of obtaining such actuarial valuation by billing and collecting from Employer or by deducting the amount from Employer's account in the Prefunding Plan. (3) Employer shall notify the Board of the amount and time of contributions which contributions shall be made in the manner established by the Board. (4) Employer contributions to the Prefunding Plan may be limited to the amount necessary to fully fund Employer's actuarial present value of total projected benefits, as supported by the actuarial valuation acceptable to the Board. As used throughout this document, the meaning of the term "actuarial present value of total projected benefits" is as defined in GASB Statement No. 45. If Employer's contribution causes its assets in the Prefunding Plan to exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board may refuse to accept the contribution. (5) Any Employer contribution will be at least $5000 or be equal to Employer's Annual Required Contribution as that term is defined in GASB Statement No. 45. Contributions can be made at any time following the seventh day after the effective date of the Agreement provided that Employer has first complied with the requirements of Paragraph C. Rev 10/10/2007 3 D. Administration of Accounts, Investments, Allocation of Income (1) The Board has established the Prefunding Plan as an agent plan consisting of an aggregation of single -employer plans, with pooled administrative and investment functions, under the terms of which separate accounts will be maintained for each employer so that Employer's assets will provide benefits only under employer's plan. (2) All Employer contributions and assets attributable to Employer contributions shall be separately accounted for in the Prefunding Plan (Employer's Prefunding Account). (3) Employer's Prefunding Account assets may be aggregated with prefunding account assets of other employers and may be co -invested by the Board in any asset classes appropriate for a Section 115 Trust. (4) The Board may deduct the costs of administration of the Prefunding Plan from the investment income or Employer's Prefunding Account in a manner determined by the Board. (5) Investment income shall be allocated among employers and posted to Employer's Prefunding Account as determined by the Board but no less frequently than annually. (6) If Employer's assets in the Prefunding Plan exceed the amount required to fully fund the actuarial present value of total projected benefits, the Board, in compliance with applicable accounting and legal requirements, may return such excess to Employer. E. Reports and Statements (1) Employer shall submit with each contribution a contribution report in the form and containing the information prescribed by the Board. (2) The Board shall prepare and provide a statement of Employer's Prefunding Account at least annually reflecting the balance in Employer's Prefunding Account, contributions made during the period and income allocated during the period, and such other information as the Board determines. F. Disbursements (1) Employer may receive disbursements not to exceed the annual premium and other costs of post employment healthcare benefits and other post employment benefits. (2) Employer shall notify CaIPERS in writing in the manner specified by CaIPERS of the persons authorized to request disbursements from the Prefunding Plan on behalf of Employer. Rev 10/10/2007 4 (3) Employer's request for disbursement shall be in writing signed by Employer's authorized representative, in accordance with procedures established by the Board. The Board may require that Employer certify or otherwise establish that the monies will be used for the purposes of the Prefunding Plan. (4) Requests for disbursements that satisfy the requirements of paragraphs (2) and (3) that are received on or after the first of a month will be processed by the 151h of the following month. (For example, a disbursement request received on or between March 1st and March 31st will be processed by April 15th; and a disbursement request received on or between April 1st and April 30th will be processed by May 15th.) (5) CaIPERS shall not be liable for amounts disbursed in error if it has acted upon the instruction of an individual authorized by Employer to request disbursements. In the event of any other erroneous disbursement, the extent of CalPERS' liability shall be the actual dollar amount of the disbursement, plus interest at the actual earnings rate but not less than zero. (6) No disbursement shall be made from the Prefunding Plan which exceeds the balance in Employer's Prefunding Account. G. Costs of Administration Employer shall pay its share of the costs of administration of the Prefunding Plan, as determined by the Board. H. Termination of Employer Participation in Prefunding Plan (1) The Board may terminate Employer's participation in the Prefunding Plan if: (a) Employer gives written notice to the Board of its election to terminate; (b) The Board finds that Employer fails to satisfy the terms and conditions of this Agreement or of the Board's rules or regulations. (2) If Employer's participation in the Prefunding Plan terminates for any of the foregoing reasons, all assets in Employer's Prefunding Account shall remain in the Prefunding Plan, except as otherwise provided below, and shall continue to be invested and accrue income as provided in Paragraph D. (3) After Employer's participation in the Prefunding Plan terminates, Employer may not make contributions to the Prefunding Plan. Rev 10/10/2007 5 (4) After Employer's participation in the Prefunding Plan terminates, disbursements from Employer's Prefunding Account may continue upon Employer's instruction or otherwise in accordance with the terms of this Agreement. (5) After thirty-six (36) months have elapsed from the effective date of this Agreement: (a) Employer may request a trustee to trustee transfer of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that the transfer will satisfy applicable requirements of the Internal Revenue Code and the Board's fiduciary duties, then the Board shall effect the transfer within one hundred twenty (120) days. The amount to be transferred shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment eamings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment eamings allocation date precede the transfer by more than 120 days. (b) Employer may request a disbursement of the assets in Employer's Prefunding Account. Upon satisfactory showing to the Board that all of Employer's obligations for payment of post employment health care benefits and other post employment benefits and reasonable administrative costs of the Board have been satisfied, then the Board shall effect the disbursement within one hundred twenty (120) days. The amount to be disbursed shall be the amount in the Employer's Prefunding Account as of the disbursement date and shall include investment earnings up to the investment earnings allocation date immediately preceding the disbursement date. In no event shall the investment earnings allocation date precede the disbursement by more than 120 days. (6) After Employer's participation in the Prefunding Plan terminates and at such time that no assets remain in Employer's Prefunding Account, this Agreement shall terminate. (7) If, for any reason, the Board terminates the Prefunding Plan, the assets in Employer's Prefunding Account shall be paid to Employer after retention of (i) amounts sufficient to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants, and (ii) amounts sufficient to pay reasonable administrative costs of the Board. (8) If Employer ceases to exist but Employer's Prefunding Plan continues to exist and if no provision has been made by Employer for ongoing payments to pay post employment health care benefits and other post employment benefits to annuitants for current and future annuitants, the Board is authorized to and shall appoint a third party administrator to carry out Employer's Prefunding Plan. Any and all costs associated Rev 10/10/2007 6 with such appointment shall be paid from the assets attributable to contributions by Employer. (9) If Employer should breach the representation and warranty set forth in Paragraph A., the Board shall take whatever action it deems necessary to preserve the tax-exempt status of the Prefunding Plan. I. General Provisions (1) Books and Records. Employer shall keep accurate books and records connected with the performance of this Agreement. Employer shall ensure that books and records of subcontractors, suppliers, and other providers shall also be accurately maintained. Such books and records shall be kept in a secure location at the Employer's office(s) and dial) be available for inspection and copying by CaIPERS and its representatives at any time. (2) Audit. (a) During and for three years after the term of this Agreement, Employer shall permit the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, at all reasonable times during normal business hours to inspect and copy, at the expense of CaIPERS, books and records of Employer relating to its performance of this Agreement. (b) Employer shall be subject to examination and audit by the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, during the term of this Agreement and for three years after final payment under this Agreement. Any examination or audit shall be confined to those matters connected with the performance of this Agreement, including, but not limited to, the costs of administering this Agreement. Employer shall cooperate fully with the Bureau of State Audits, CaIPERS, and its authorized representatives, and such consultants and specialists as needed, in connection with any examination or audit. All adjustments, payments, and/or reimbursements determined to be necessary by any examination or audit shall be made promptly by the appropriate party. (3) Notice. (a) Any notice, approval, or other communication required or permitted under this Agreement will be given in the English language and will be deemed received as follows: Rev 10/10/2007 7 1. Personal delivery. When personally delivered to the recipient. Notice is effective on delivery. 2. First Class Mail. When mailed first class to the last address of the recipient known to the party giving notice. Notice is effective three delivery days after deposit in a United States Postal Service office or mailbox. 3. Certified mail. When mailed certified mail, return receipt requested. Notice is effective on receipt, if delivery is confirmed by a return receipt. 4. Overnight Delivery. When delivered by an overnight delivery service, charges prepaid or charged to the sender's account, Notice is effective on delivery, if delivery is confirmed by the delivery service. 5. Telex or Facsimile Transmission. When sent by telex or fax to the last telex or fax number of the recipient known to the party giving notice. Notice is effective on receipt, provided that (i) a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery, or (ii) the receiving party delivers a written confirmation of receipt. Any notice given by telex or fax shall be deemed received on the next business day if it is received after 5:00 p.m. (recipient's time) or on a nonbusiness day. 6. E-mail transmission. When sent by e-mail using software that provides unmodifiable proof (i) that the message was sent, (ii) that the message was delivered to the recipient's information processing system, and (iii) of the time and date the message was delivered to the recipient along with a verifiable electronic record of the exact content of the message sent. Addresses for the purpose of giving notice are as shown in Paragraph B.(1) of this Agreement. (b) Any correctly addressed notice that is refused, unclaimed, or undeliverable because of an act or omission of the party to be notified shall be deemed effective as of the first date that said notice was refused, unclaimed, or deemed undeliverable by the postal authorities, messenger or overnight delivery service. (c) Any party may change its address, telex, fax number, or e-mail address by giving the other party notice of the change in any manner permitted by this Agreement. Rev 10/10/2007 8 (d) All notices, requests, demands, amendments, modifications or other communications under this Agreement shall be in writing. Notice shall be sufficient for all such purposes if personally delivered, sent by first class, registered or certified mail, return receipt requested, delivery by courier with receipt of delivery, facsimile transmission with written confirmation of receipt by recipient, or e-mail delivery with verifiable and unmodifiable proof of content and time and date of sending by sender and delivery to recipient. Notice is effective on confirmed receipt by recipient or 3 business days after sending, whichever is sooner. (4) Modification This Agreement may be supplemented, amended, or modified only by the mutual agreement of the parties. No supplement, amendment, or modification of this Agreement shall be binding unless it is in writing and signed by the party to be charged. (5) Survival All representations, warranties, and covenants contained in this Agreement, or in any instrument, certificate, exhibit, or other writing intended by the parties to be a part of their Agreement shall survive the termination of this Agreement until such time as all amounts in Employer's Prefunding Account have been disbursed. (6) Waiver No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. (7) Necessary Acts, Further Assurances The parties shall at their own cost and expense execute and deliver such further documents and instruments and shall take such other actions as may be reasonably required or appropriate to evidence or carry out the intent and purposes of this Agreement. Rev 10/10/2007 9 • • A majority vote of Employer's Governing Body at a public meeting held on the 25th day of the month of March e year A008 , authorized entering into this Agreement. Signature of the Presiding Officer: Printed Name of the Presiding Officer: Mayor Edward D. Selich Name of Governing Body: Newport Beach City Council Name of Employer. City of Newport Beach Date: BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY KENNETH W. MARZION ACTUARIAL AND EMPLOYER SERVICES BRANCH CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM To be completed by CaIPERS The effective date of this Agreement is: Rev 01 /09/2008 10 CALIFORNIA PUBLIC PLOYEES' RETIREMENT SYSTO Actuarial and Employer Services Branch Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (888) CaIPERS (225-7377) CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the City Council adopted on October 9 (date) (governing body) City of Newport Beach of the (public agency) , 2007 , by an affirmative vote of a majority of the members of said Governing Body, Ordinance (Ordinance or Resolution) No. 2007-13 approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the Califomia Public Employees' Retirement System, a certified copy of said Ordinance (Ordinance or Resolution) in the form furnished by said Board of Administration being attached hereto. ot:-167, Aziske4, Clerk/Secretary City Clerk Title Date 10-09-07 PERS-CONS (Rev. 1/96) Ca1PERS • • C-5103 California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach e The Board of Administration, Califomia Public Employees' Retirement System, hereinafter referred to as Board, and the goveming 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 and July 23, 2005 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective July 23, 2005, 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. 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 41. • 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 the effective date of this amendment to contract 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 the effective date of this amendment to contract 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). 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). 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 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 the employee and the Board. B. This amendment shall be effective on the 22nd day of December BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NEWPORT BEACH I BY W m ct� fi< 21/4— LORI Tr. G 1 RTLAND, CHIEF EMPLOY-' SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT ER#60 PERS-CON-702A (Rev. 10\05) 2007 BY PRESIDING 0 FICE �o - 9-07 Witness Date Attest: dflo-mq /2) a Clerk • • Ca1PERS California Public Employees' Retirement System AMENDMENT 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 and November 13, 2004 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective November 13, 2004, and hereby replaced by the following paragraphs numbered 1 through 13 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 local fire members and ocean beach lifeguards; and age 50 for local police members. 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. 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 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 fire members & ocean beach lifeguards shall be determined in accordance with Section 21363.1 of said Retirement Law (3% 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 police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). • • 8. 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 Optional Settlement 2 Death Benefit). 9. 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. 10. 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. 11. 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. 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. 12. 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. 13. 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. This amendment shall be effective on the 23rd day of July , 2005 . BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY 0 PORT B BY LORI ACTUA PUBLIC EM 44. /uixA_ BY ND, ACT CHIEF PRESID MPLOYER SERVICES DIVISION OYEES' RETIREMENT SYSTEM AMENDMENT ER# 60 PERS-CON-702A (Rev. 8\02) G OFFICER �i�,1a�oS Witness Date Attest: dc; deh,a‘4_ n7 /6/xceto Clerk Ca1PERS California Public Employees' Retirement System • AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach • The Board of Administration, Califomia 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 and November 30, 2002 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective November 30, 2002, and hereby replaced by the following paragraphs numbered 1 through 13 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 local fire members and ocean beach lifeguards; and age 50 for local police members. 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. 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 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 fire members & ocean beach lifeguards shall be determined in accordance with Section 21363.1 of said Retirement Law (3% 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 police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 8. 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). 9• Section 21548 (Pre -Retirement Optional Settlement 2 Death Benefit) for local miscellaneous members only. 9. 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 Govemment Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 10. 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. 11. 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. This amendment shall be effective on the BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM 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. 12. 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. 13. 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. tday of MOVP,.f(lrler CITY COUNCIL CITY OF NEWPORT BEACH BY MAa' a 2.-4....1 BY KE H . MAR ON, CHIEF PRESIDI ACT RI & EMPLOYER SERVI ES DIVISION PUBLIC MPLOYEES' RETIREMENT SYSTEM AMENDMENT ER# 0060 PERS-CON-702A (Rev. 8\02) to-« -t2L( Witness Date 4/1 901/ Attest:die-Amt. 1-0. ,(hdg Clerk • • C3 Ca1PERS Actuarial & Employer Services Division PO Box 942709 Sacramento, CA 94229-2709 Telecommunications Device for the Deaf - (916) 326-3240 (916) 326-3420 FAX (916) 326-3005 October 9, 2002 Employer Code #0060 Reply to Section 105 Ms. Sharon Z. Wood Assistant City Manager City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 Dear Ms. Wood: The contract amendment has been executed by CaIPERS. The effective date of the contract amendment is November 30, 2002. If you have any questions regarding your contract, please do not hesitate to contact, Eva Hwang at (916) 326-3683. Sincerely, aide& LeM2210/ Public Agency Contract Services PM:pm Enclosure C0308 (Rev. 9/99) California Public Employees' Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 • • Ln-��yK' r a, California Public Employees' Retirement System AMENDMENT 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 and June 15, 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 executed effective June 15, 2002, and hereby replaced by the following paragraphs numbered 1 through 13 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 local fire members and ocean beach lifeguards; and age 50 for local police members. 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. 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 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 local fire members and ocean beach lifeguards shall be determined in accordance with Section 21363.1 of said Retirement Law (3% 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 police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). 8. 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 Govemment Code Section 20421). b. Section 21574 (Fourth Level of 1959 Survivor Benefits). c. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. 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). 9. Public Agency, in accordance with Govemment 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. 10. 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. 11. 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. 12. 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. • • 13. 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 3 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM day of Pam- 300a-. CITY COUNCIL CITY OF NEWPORT BEACH BY fil fKEN E W. MARZIOCHIEF PRESIDING OFFIC ACTUARIAL EMPLOYER SERVICES DIVISION PUBLIC EM LOYEES' RETIREMENT SYSTEM AMENDMENT PERS-CON-702A (Rev. 8196) Witness Date Attest: Clerk &-5b3 Ca1PERS Califomia Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach The Board of Administration, Califomia 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 and August 26, 2000 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 August 26, 2000, 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 55 for local safety members. 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. 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 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 21363.1 of said Retirement Law (3% at age 55 Full). 7. 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), Statutes of 1976. 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. f. Section 20042 (One -Year Final Compensation). 8. 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. 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 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. 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 In day of J Lc b.2 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NEWPORT BEACH BY; ' /�jZr y,aJ/6.-1 BY .72".Qa K N TH . MARZ N, CHIEF PRESIDING OFFIC A ARI & EMPLOYER SER CES DIVISION `� PUBLIC MPLOYEES' RETIREMENT SYSTEM OT /,, c oona— Witne ate Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 8\95) 7 • • Ca1PERS California Public Employees' Retirement System AMENDMENT TO CNT 1\ Between the Board of Administration California Public Employees' Retirement System and the City Council City of Newport Beach e CT The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the goveming 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 and July 12, 2000 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 12, 2000, 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 55 for local safety members. 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. 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 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 21363.1 of said Retirement Law (3% at age 55). The required member contribution rate is 9% of reportable compensation. 7. 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 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. • • c. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. g. Section 20042 (One -Year Final Compensation). 8. 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. 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 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. b. 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 safety members. c. 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. a • 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 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 Tess 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 ir?‘.. day of BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NE,WPORT BEACH BY BY KENNETH W. MARZION, CHIEF PRE ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM 3 %e Witness Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 8\96) • • June 27, 2000 Agenda Item S36 CITY OF NEWPORT BEACH HUMAN RESOURCES DEPARTMENT TO: Mayor and City Council FROM: Sharon Wood, Assistant City Manager SUBJECT: Cost of 2% at 55 Retirement for Miscellaneous Employees Recommendation Receive and file. Background 0Y THE CITY COUNCIL CITY Of NEWPORT BEACH ,U127200 2e,z UCH(- ;lc The City Council approved a Resolution of Intention to amend the PERS to provide the 2% at 55 retirement benefit to miscellaneous employees on June 13, 2000. The staff report accompanying that resolution did not include a discussion of the cost to the City, which PERS requires be disclosed to the public two weeks prior to final approval of the contract amendment. The valuation prepared by PERS for this contract amendment shows that Newport Beach has excess assets in our PERS account for miscellaneous employees such that the employer contribution rate will not increase for 43 years, even with the amendment. Therefore, the City's retirement expenditures for miscellaneous employees will not increase. • • June 13, 2000 Agenda Item 3 CITY OF NEWPORT BEACH HUMAN RESOURCES DEPARTMENT f JUN 13 TO: Mayor and City Council n ` 1 L ...��,_ _m __I moo i FROM: Sharon Wood, Assistant City Manager t;Z SUBJECT: Implementation of Enhanced Retirement and Cafeteria Plan Benefits for Miscellaneous Employees and Marine Safety Officers RECOMMENDATION Adopt the following Resolutions: 1. A Resolution of the City Council of the City of Newport Beach only with Respect to Members of the Newport Beach City Employees Association, Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act 2. A Resolution of the City Council of the City of Newport Beach only with Respect to Members of the Newport Beach Employees League, Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act 3. A Resolution of the City Council of the City of Newport Beach only with Respect to Members of the Newport Beach Professional and Technical Employees Association, Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act 4. A Resolution of the City Council of the City of Newport Beach only with Respect to Members of the Newport Beach Key and Management Employees, Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act 5. A Resolution of the City Council of the City of Newport Beach only with Respect to Members of the Newport Beach Marine Safety Officers Association, Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act 6. A Resolution of the City Council of the City of Newport Beach only with Respect to Members of the Newport Beach City Council, Fixing the Employer's Contribution under the Public Employees' Medical and Hospital Care Act t • • 7. 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 DISCUSSION The City Council approved Supplemental Memoranda of Understanding with the three non -safety employee associations on April 25, 2000. These Supplemental MOUs establish a flexible benefits (cafeteria) plan, improve funding for the retiree medical insurance plan, and provide the 2% @ 55 retirement plan. City Council adoption of the resolutions attached to this report is required to implement the cafeteria plan and the new retirement plan. Funding of the retiree medical plan will be accomplished through increased payroll deductions and City contributions, concurrent with the effective date of the new retirement plan. A new MOU with the Marine Safety Officers Association is on this Council agenda. It includes the same agreements regarding the cafeteria plan and the retiree medical insurance program as the miscellaneous employees' Supplemental MOUs. The other public safety associations have requested that discussion of these items be included in their negotiations for an enhanced retirement program. The Califomia Public Employees' Retirement System (PERS) HealthCare program, which the City joined in 1993, requires local agencies to provide an equal monthly contribution for both active and retired members. Newport Beach's contribution for active employees has been higher than for retirees, and the City has an agreement with PERS to equalize these contributions over time. Introduction of the cafeteria plan allows the City to correct this situation by establishing the contribution for both active and retired employees at $16 per month, the minimum amount required by PERS. This contribution will be deducted from the amount available to active employees for their cafeteria plan, as provided in the Supplemental MOUs. Separate Resolutions are required for each employee association, as well as for the City Council and Key and Management employees, who also will be eligible for the cafeteria plan. An amendment to the City's contract with PERS is required to provide the 2% @ 55 retirement benefit. The first step in the amendment process is adoption of the attached Resolution of Intention, which notifies the public that the City Council is considering this action. No sooner than 20 days after adoption of the Resolution, the City Council may adopt an ordinance authorizing the amendment. Staff intends to place this ordinance on the agenda for July 11, 2000. 2 RESOLUTION NO. 2000- 52 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 21354 (2% @ 55 Full formula) for local 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 City 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 13`h day of June 2000. ATTEST: CITY CLERK Ca1PERS California Public Employees' Retirement System • AMENDMENT 0 CONT I9) EXHIBIT ACT 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 and June 12, 1996 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 June 12, 1996, 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. • (..EASE D0 NOT SI!"EXHIBIT ONLY' 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. 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 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 of said Retirement Law (2% at age 50 Full). 7. 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 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. "5 ?LEASE 00 NOT SIGN "EXHIBIT ONL', c. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. g. Section 20042 (One -Year Final Compensation). 8. 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. 9. Public Agency shall contribute td 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. b. 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 safety members. c. 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. • • 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 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. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIRE s<<„ ►.\CD BY B. This amendment shall be effective on the day of i. SYSTEM BY KENNETH W. MA' .,* ACTUARIAL & -q t PUBLIC EM <� CITY COUNCIL CITY OF NEWPORT BEACH N, CHIEF PRESIDING OFFICE. LOYER SERVICES DIVISION V`' ES' RETIREMENT SYSTEM a�•{��`�\ AMENDMENT PERS-CON-702A (Rev. 8196) +e�s`s�Date f'?\ttiv.) Attest:. Clerk STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH } } } ss. 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. 2000-52 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 13th day of June, 2000, and that the same was so passed and adopted by the following vote, to wit: Ayes: Thomson, Glover, Adams, Debay, Ridgeway, O'Neil, Mayor Noyes Noes: None Absent: None Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 14th day of June, 2000. City Clerk Newport Beach, California (Seal) • • RESOLUTION NO, 98-72 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO CORRECT AN ERROR IN THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, the City Council of the City of Newport Beach hereinafter referred to as Public Agency, and the Board of Administration of the Public Employees' Retirement System entered into a contract effective July 1, 1945, providing for the participation of Public Agency in the Public Employees' Retirement System; and WHEREAS, said contract was amended effective June 12, 1996, and due to an inadvertent error, "Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members" should have read "Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members"; and WHEREAS, said contract was amended effective December 2, 1989, and June 12, 1996, and due to an inadvertent omission "Section 20042 (One Year Final Compensation) for local rrdscellaneous members and local safety members" was not included in the contract amendment; and WHEREAS, Section 20472 of the Government Code provided that errors in any contract may be corrected through amendments approved by the adoption of suitable resolutions by the contracting parties; NOW, THEREFORE, BE IT RESOLVED that said governing body of Public Agency authorizes, and it does hereby authorize, a contract error amendment to said contract effective June 12, 1996, as follows: A. Paragraph 7.e. of the contract amendment effective June 12, 1996, shall be changed as follows: "Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979." B. •Paragraph 7 of the contract amendment effective December 2, 1989, and all subsequent amendments thereto shall be changed to include the following: "Section 20042 (One Year Final Compensation) ." BE IT FURTHER RESOLVED, that the presiding officer of the governing body of Public Agency is hereby authorized, empowered, and directed to execute said amendment for and on behalf of Public Agency. Adopted this 9th day of November 19 98 BOARD OF ADMINISTRATION CITY COUNCIL OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NEWPORT BEACH BY BY KENNETH W. MARZION, CHIEF MAYOR ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Attest: Clerk CALIFORNIA PUBLIC FSLOYEES' RETIREMENT SYST'll Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the (governing body) City of Newport Beach (public agency) on il/ 9/qqg (date) Clerk/Secretary art C/erK Title PERS-CON-12 (rev. 1/96) STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH } } } ss. 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. 98-72, 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 9th day of November, 1998, and that the same was so passed and adopted by the following vote, to wit: Ayes: Thomson, Debay, O'Neil, Glover, Noyes, Mayor Edwards Noes: None Absent: Hedges Abstain: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 10th day of November, 1998. City Clerk of the City of Newport Beach, California (Seal) . • November 9, 1998 C 563 Council Agenda (3$) Item No. 9 CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMENT Resource Management - Human Resources • Risk Management • Fiscal Services • M.I.S. • Revenue • Accounting TO: Honorable Mayor and Members of the City Council Dick Kurth, Administrative Services Director (Acting Amendment to Correct an Error in the PERS Con FROM: SUBJECT: rr COUNCIL __a -eACH RECOMMENDATION: NOV -9._.3 ADo b RES yf-13 Approve the resolution authorizing an amendment to correct an error in the contract between the Board of Administration of the Public Employees' Retirement System (PERS) and the City Council of the City of Newport Beach. BACKGROUND: The City of Newport Beach entered into a contract effective July 1,1945, providing for participation in the Public Employees' Retirement System (PERS). On October 1,1998, a representative of the Actuarial and Employer Services Division of PERS notified the City and provided the attached resolution to correct an error that was made on the contract when it was amended on December 2, 1989, and June 12, 1996. This resolution will correct the error made when the contract was amended effective June 12, 1996. At that time, paragraph 7.e. read, in error, "Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979." The correct section code for this benefit is 21389. Adoption of the resolution will correct the contract effective June 12, 1996, the date this error was made. In addition, when the contract was amended effective December 2, 1989, paragraph 7 did not include Section 20042 (One Year Final Compensation) for local miscellaneous members and local safety members. This error has been repeated in the subsequent contract amendment effective June 12, 1996. The attached resolution will also correct this error. • RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO CORRECT AN ERROR IN THE CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, the City Council of the City of Newport Beach hereinafter referred to as Public Agency, and the Board of Administration of the Public Employees' Retirement System entered into a contract effective July 1, 1945, providing for the participation of Public Agency in the Public Employees' Retirement System; and WHEREAS, said contract was amended effective June 12, 1996, and due to an inadvertent error, "Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members" should have read "Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members"; and WHEREAS, said contract was amended effective December 2, 1989, and June 12, 1996, and due to an inadvertent omission "Section 20042 (One Year Final Compensation) for local miscellaneous members and local safety members" was not included in the contract amendment; and WHEREAS, Section 20472 of the Government Code provided that errors in any contract may be corrected through amendments approved by the adoption of suitable resolutions by the contracting parties; NOW, THEREFORE, BE IT RESOLVED that said governing body of Public Agency authorizes, and it does hereby authorize, a contract error amendment to said contract effective June 12, 1996, as follows: A. Paragraph 7.e. of the contract amendment effective June 12, 1996, shall be changed as follows: "Section 21389 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979." • • • • • • • • B. Paragraph 7 of the contract amendment effective December 2, 1989, and all subsequent amendments thereto shall be changed to include the following: "Section 20042 (One Year Final Compensation) ." BE IT FURTHER RESOLVED, that the presiding officer of the governing body of Public Agency is hereby authorized, empowered, and directed to execute said amendment for and on behalf of Public Agency. Adopted this day of , 19 BOARD OF ADMINISTRATION CITY COUNCIL OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF NEWPORT BEACH BY BY KENNETH W. MARZION, CHIEF MAYOR ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Attest: Clerk qr ••• • • AGENDA ITEM 5 (E) • • • CITY OF NEWPORT BEACH Administrative Services Department Resource Management•Human Resources•Fiscal Services•M.I.S.•Revenue•Accounting May 16, 1997 C _5(p3 TO: KEVIN MURPHY, CITY MANAGER From: Dennis Danner, Administrative Services Director SUBJECT: EXTENDING THE PERS FUNDING HORIZON BACKGROUND: The City is a member of the Public Employees Retirement System (PERS), which provides retirement benefits for all employees, permanent and temporary alike, after they work over 1,000 hours in a fiscal year. Once a member of PERS, membership continues, even if a temporary worker works less than the 1,000 hour threshold in subsequent fiscal years. Funding contributions to the retirement system are made up of both an employer contribution and an employee contribution. The employer contribution rate fluctuates from year to year, based upon the funding status of the employer's plan, whereas the employee share is fixed at 9.0% or 7.0% for safety and miscellaneous employees respectively. DISCUSSION: The City has been officially notified that the employer PERS rates will go up substantially effective July 1st. The unusually large increase is due, in part, to the commencement of reporting the Employer Paid Member Contribution (EPMC) as compensation for retirement purposes, i.e., 9.0% for Safety and 7.0% for Miscellaneous employees as of July 1, 1995, in compliance with SB 53. This is an administrative change that should not, over the long run, change the actuarial costs of the funding the retirement plan; but it did cause a skewing of the actuarial calculations which will persist for an unknown period. Prior to the requirements of SB 53, the City permitted employees, in their final year of employment, to pay their own employee's retirement contribution of 9.0% or 7.0% while receiving an equivalent salary increase According to PERS, this practice caused an actuarial underfunding of the retirement system and was prohibited by SB 53. An even more significant aspect of the cost increase is that the City's current "funding horizon" for recovery of such adjustments is the year 2000; which has evolved into a very short duration from the present. By extending this funding horizon, we can spread out the magnitude of this change; and subsequent changes, over a longer period. The other two funding horizons available are the year 2011 or 2016. We have been informed by PERS actuary staff that in extending the funding horizon, the City should not experience these dramatic increases in the future. • e Following are the rates that would be in effect without an extension of the funding horizon, as well as the rates projected by extending the funding horizon to either the year 2011 or the year 2016: Employer PERS Rate 1997-98 1997-98 1996-97 1997-98 Rate Rate Rate Rate (2011) (2016) Miscellaneous 4.735% 7.172% 5.633% 5.524% Safety 10.746% 22.918% 14.606% 14.024% I recommend that the City Council extend the horizon to 2016, for two reasons. 1. The retirement plan is a long-term liability. It is seldom considered appropriate, from a purely financial management perspective, to fund such a liability over a relatively short period. Handling long-term changes and adjustments over too short a term causes unnecessary volatility in the City's short term budgeting and fiscal administration. 2. Because of the total compensation formula calculations in effect with some of our safety employee groups, the current funding horizon also results in volatility in actual salary each year. In this case, for example, if we do not extend the funding horizon, our public safety employees will experience an approximate 12% salary reduction on July 1st, all other things being equal. Although they may well recover this, and substantially more, in a year or two, it would be more fiscally prudent to "smooth out such peaks and valleys" by opting for a longer funding horizon. I should also point out that, unless contract amendments are negotiated with these various safety groups this action will not completely eliminate the resulting salary reductions resulting from the PERS rate increases for the next fiscal year. Even with the extension of the funding horizon, safety employees' salaries will be reduced by about 3.2% (from what they would have been as of July lst). (Miscellaneous employees are not similarly affected, since their salary is not a component of a total compensation formula. However, the City is impacted, for just that reason.) RECOMMENDATION: In light of the above, it is respectfully recommended that the City Council approve the attached Resolutions, which will extend the PERS funding horizon to the year 2016 for both the Miscellaneous and Safety Employer PERS contributions. • • • • • RESOLUTION REQUESTING THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM EXTEND THE FUNDING PERIOD FOR THE MISCELLANEOUS PLAN FOR CURRENT SERVICE ACTUARIAL LIABILITIES FOR THE CITY OF NEWPORT BEACH WHEREAS, the City of Newport Beach is a contracting agency of the California Public Employees' Retirement System; and WHEREAS, the current funding horizon does not provide an adequate period of time to absorb long-term changes in program cost without unacceptable volatility in the City's operating budget, and; WHEREAS, the City of Newport Beach has been advised by the Actuarial and Employer Services Division of the California Public Employees' Retirement System that the governing body may request an extension of the funding period for the miscellaneous plan for current service actuarial liabilities to June 30, 2016; BE IT THEREFORE RESOLVED, that the governing body of the City of Newport Beach does request an extension of the funding period for the miscellaneous plan for current service actuarial liabilities to June 30, 2016, and further resolves to direct the Administrative Services Director to forward a certified copy of this resolution to the California Public Employees' Retirement System. Adopted this ATTEST: CITY CLERK • day of , 19 MAYOR 1) • • RESOLUTION REQUESTING THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM EXTEND THE FUNDING PERIOD FOR THE SAFETY PLAN FOR CURRENT SERVICE ACTUARIAL LIABILIIZES FOR THE CITY OF NEWPORT BEACH WHEREAS, the City of Newport Beach is a contracting agency of the California Public Employees' Retirement System; and WHEREAS, the current funding horizon does not provide an adequate period of time to absorb long-term changes in program cost without unacceptable volatility in the City's operating budget, and; WHEREAS, the City of Newport Beach has been advised by the Actuarial and Employer Services Division of the California Public Employees' Retirement System that the governing body may request an extension of the funding period for the safety plan for current service actuarial liabilities to June 30, 2016; BE IT THEREFORE RESOLVED, that the governing body of the City of Newport Beach does request an extension of the funding period for the safety plan for current service actuarial liabilities to June 30, 2016, and further resolves to direct the Administrative Services Director to forward a certified copy of this resolution to the California Public Employees' Retirement System. Adopted this ATTEST: CITY CLERK day of ,19 MAYOR • RESOLUTION NO. 97-41 RESOLUTION REQUESTING THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM EXTEND THE FUNDING PERIOD FOR THE SAFETY PLAN FOR CURRENT SERVICE ACTUARIAL LIABILITIES FOR THE CITY OF NEWPORT BEACH WHEREAS, the City of Newport Beach is a contracting agency of the California Public Employees' Retirement System; and WHEREAS, the current funding horizon does not provide an adequate period of time to absorb long-term changes in program cost without unacceptable volatility in the City's operating budget, and; WHEREAS, the City of Newport Beach has been advised by the Actuarial and Employer Services Division of the California Public Employees' Retirement System that the governing body may request an extension of the funding period for the safety plan for current service actuarial liabilities to June 30, 2016; BE IT THEREFORE RESOLVED, that the governing body of the City of Newport Beach does request an extension of the funding period for the safety plan for current service actuarial liabilities to June 30, 2016, and further resolves to direct the Administrative Services Director to forward a certified copy of this resolution to the California Public Employees' Retirement System. Adopted this 27th day of may ,1997 MAYOR ATTEST: ofine, 7Y) CITY CLERK • • RESOLUTION NO. 97-40 RESOLUTION REQUESTING THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM EXTEND THE FUNDING PERIOD FOR THE MISCELLANEOUS PLAN FOR CURRENT SERVICE ACTUARIAL LIABILITIES FOR THE CITY OF NEWPORT BEACH WHEREAS, the City of Newport Beach is a contracting agency of the California Public Employees' Retirement System; and WHEREAS, the current funding horizon does not provide an adequate period of time to absorb long-term changes in program cost without unacceptable volatility in the City's operating budget, and; WHEREAS, the City of Newport Beach has been advised by the Actuarial and Employer Services Division of the California Public Employees' Retirement System that the governing body may request an extension of the funding period for the miscellaneous plan for current service actuarial liabilities to June 30, 2016; BE 1T THEREFORE RESOLVED, that the governing body of the City of Newport Beach does request an extension of the funding period for the miscellaneous plan for current service actuarial liabilities to June 30, 2016, and further resolves to direct the Administrative Services Director to forward a certified copy of this resolution to the California Public Employees' Retirement System. Adopted this 27th day of May ,19 97 ATTEST: u GIei,,, c /TT /✓, 7 CITY CLERK • i Board Of Administration P.O. Box 942701 Sacramento, CA 94229-2701 (916) 326-3932 c/o BART 800 Madison St. Oakland, CA 94607 510-464-6162 October 4, 1996 City Clerk City ofNewport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Sir or Madam: iee I O-I 4 Le KsE7a& OCT S ice CITY CLERK CITY Of NEWPORT BEACH I am writing to ask that you release to me, pursuant to the Public Records Act (Government Code Section 6250 et seq.), a copy of your city government's complete internal telephone directory, employee and departmental phone listings, or other similar documents. My purpose in requesting this document is to facilitate potential communications with your city government employees, whom I represent on the California PERS Board of Administration. As a PERS agency, the right of your covered employees to be represented on the PERS Board is expressly granted in Article XVI, Section 17 of the California Constitution. My desire to communicate with them is thus consistent with a constitutionally -enshrined public purpose. As a result, I hope that you will waive any copying or postage fees associated with sending me the requested document. If necessary, I will pay copying and postage costs if you would call me at the Oaldand phone number shown on the letterhead and inform me of the amount owed. I appreciate your cooperation. Please mail the requested items to the Oakland address shown above. Please do not hesitate to call if you have any questions. Silrcer erman PERS Board member Califomia Public Employees' Retirement System Lincoln Plaza-400 P Street -Sacramento, CA PERS Actuarial & Employer Services Division P.O. Box 942709 Sacramento, CA 94229-2709 Telecommunications Device for the Deaf - (916) 326-3240 (916) 326-3420 FAX (916) 658-1586 September 20, 1996 Employer Code #0060 Reply to Section 210 Ms. LaVonne Harkless City Clerk City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 Dear Ms. Harkless: The contract amendment and 1959 Survivor Agreement has been executed by Ca1PERS. The effective date of the contract amendment is June 12, 1996. If you have any questions, please do not hesitate to contact S. Dawn Evans, the Retirement Specialist who has been assisting your agency with its contract activity at the above address and or phone number. Sincerely, Darlene Eredia Public Agency Contract Services DE:br Enclosure C0308 (Rev. 1/96) topics Seat Re O Mayer ❑ Council Mem*er f4 e7/T) California Public Employees' Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21382.5. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY fe CHIEF UARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PEGS-CON-59 (Rev. I/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date 02-i3-9‘c AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21382.5. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY �ow�` BY JCO� CHIEF ACT ARY Y Presiding Offi ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1196) CITY COUNCIL OF THE CITY OF NEWPORT BEACH 9 Date 0?-43-9(0 AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21573 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21573, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21573. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACT(JARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Offic'r Date je' /3~no AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF TILE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and December 2, 1989 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 December 2, 1989, 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 60 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 I, 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. 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 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 shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60 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 of said Retirement Law (2% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. b. c. Section 20421 ("Local Safety Member" shall include ocean beach lifeguards of a city as described in Government Code Section 20421). Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. 8. 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. 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. Public Agency shall contribute $2.00 per member, per month on account of the liability for 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. b. Public Agency shall contribute $9.00 per member, per month on account of the liability for the 1959 Survivor Benefits provided under Section 21382.5 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 safety members. • • c. 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. 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 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 /01f'1) day of —J ci t- , 19 We BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY C IEF AC ' Y ACTU ' 'i AL OFFICE PUBLI EMPLOYEES' RETIREMENT SYSTEM AMENDMENT PERS-CON-702A (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Witness Date Attest: Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CALIFORNIA PUBLIC E LOYEES' RETIREMENT SYSTEO of to fa yGn/94 CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the City Council (governing body) City of Newport Beach (public agency) of the adopted on may 13, 1996 , by an affirmative vote of a majority of the members of said (date) Governing Body, Ordinance No. 96-17 approving the (Ordinance/Resolution) attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said Ordinance in the form fumished by said Board of Administration (Ordinance or Resolution) being attached hereto. (� Clerk/Se retary City Clerk Title Date Sept. 10, 1996 PERS-CON-5 (Rev. 1/96) • ORDINANCE NO. 96 - 17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO INCREASE THE LEVEL OF THE SURVIVOR BENEFIT PROGRAM. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: That the Contract between the Board of Administration of the Public Employees Retirement System and the City Council of the City of Newport Beach shall be amended to increase the Survivor Benefit from Level One to Level Three for miscellaneous employees and to Level Four for safety employees. Section 2: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22n1 day of April 1996, and adopted on the 13th day of rty ATTEST: CITY CLERK , 1996, by the following vote, to -wit: AYES, COUNCILMEMBERS HEDGES, DEBAY, GLOVER, EDWARDS, WATT, O'NEIL, COX NOES, COUNCILMEMBERS NONE ABSENT COUNCILMEMBERS NONE MAYOR AS AI?:Uc/AYNDCO RC7'O'.1'YtM ,7' f CC..C�� 1 y utr�ClEGK UFTHECfII OF NEWPORf @FAG1 DAM AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, hereinafter referred to as Public Agency, having entered into a contract effective July 1, 1945, and witnessed Apri127, 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 and December 2, 1989 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 December 2, 1989, 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 60 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, 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. 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 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 shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60 Full). 6 The percentage of fmal 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 of said Retirement Law (2% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. b. c. Section 20421 ("Local Safety Member" shall include ocean beach lifeguards of a city as described in Government Code Section 20421). Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. 8. 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. 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. Public Agency shall contribute $2.00 per member, per month on account of the liability for 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. b. Public Agency shall contribute $9.00 per member, per month on account of the liability for the 1959 Survivor Benefits provided under Section 21382.5 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 safety members. • • c. 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. 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 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 /ai`fl day of (MC— , 19 9t . BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT PERS-CON-702A (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Witness Date Attest: /L/,9-71.-..4— n. ��ava-9-D Clerk • tat Agenda Item # 2 • • • CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMENT BY THE an COUNCIL CRY OF NEWPORT BEA( APR 2 21996 April 22,1996 0A-42 y' -� TO: HONORABLE MAYOR AND MEMBERS OF THE CI L CRY OF NEWPORT BEACH FROM: Dennis Danner, Administrative Services Director ,447 14,I3 SUBJECT: PERS SURVIVOR BENEFIT PROGRAM C _ 5‘ accachi 0 t DISCUSSION: PERS has sent us the next set of documents needed to amend our contract regarding the level of the Survivor Benefit program for both the miscellaneous and safety employees. At the February 12, 1996 City Council Meeting, the Council adopted a Resolution of Intention to amend the contract to increase the level of benefit from Level One to Level Three for the miscellaneous group and to Level Four for safety. A copy of that report is attached for your reference. The attached report explains the reasons for amending the contract and how the enhanced benefit will be paid for by utilizing surplus funds in the 1959 Survivor Benefit account at no cost to the City. Also attached please find the forms necessary for the second step of the process, which is the introduction of the Ordinance. The final step in the process will be taken on May 13, 1996 when the Council will adopt the Ordinance. The contract amendment will be effective thirty (30) days following the date of adoption. RECOMMENDATION: That the Council approve the attached Contract Amendment with the Public Employees Retirement System to increase the Survivor Benefit from Level One to Level Three for miscellaneous employees and to Level Four for safety employees. • #4.4 February 12,.1996 -5(..3 •incil Agenda Item # 2 CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMENT TO: HONORABLE MAYOR AND MEMBERS OF THE CITY FROM Dennis Danner, Administrative Services Director SUBJpcT: j PERS SURVIVOR BENEFIT PROGRAM DISCUSSION: Attached please find the documents received from the Public Employees Retirement System (PERS) to amend our contract with them regarding the level of the Survivor Benefit program for both miscellaneous and safety employees. This benefit is paid to survivors, along with the other death benefits, whether or not the employee was eligible for retirement at the time of death. It is a benefit that is only available to agencies that do not contribute to Social Security because it replicates a similar Social Security benefit. Currently the City is at Level One for both groups, which provides a maximum benefit of $430 per month to the surviving spouse of a deceased employee with two or more eligible children. At the request of our safety employee associations, PERS supplied the City with the actuarial information regarding our reserve funds which could be used to offset the costs of increasing the benefit level for both employee categories. PERS offered the City the opportunity to use these funds to increase this benefit to a Level Three or Level Four. Level Two is no longer offered by PERS. After discussion in closed session Council concurred with staff's recommendation that, based on the current balance of the City's PERS' reserve accounts, we proceed to increase this benefit to Level Three for miscellaneous employees and Level Four for safety employees. The PERS report indicates that there will be no additional cost to employees or the City for miscellaneous employees for at least twenty-five years and safety for six years. By upgrading this benefit, using reserve money, survivors of employees with two or more children will receive a $2,280 monthly allowance at Level 4 and $840 at Level 3. Once the reserve account surplus is reduced to an amount which is less than two years of projected employer contributions, the City will pay $9 a month per employee or approximately $25,000 per year and the employee will continue to pay $2 a month. RECOMMENDATION: That the Council approve the amendment to the City's contract with the Public Employees Retirement System to increase the Survivor Benefit from Level One to Level Three for miscellaneous employees and from Level One to Level Four for safety employees. • • • ORDINANCE NO. 96 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO INCREASE THE LEVEL OF THE SURVIVOR BENEFIT PROGRAM. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: That the Contract between the Board of Administration of the Public Employees Retirement System and the City Council of the City of Newport Beach shall be amended to increase the Survivor Benefit from Level One to Level Three for miscellaneous employees and to Level Four for safety employees. Section 2: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of 1996, and adopted on the ATTEST: day of ,1996, by the following vote, to -wit: CITY CLERK AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYOR =PERS • • Actuarial and Employer Services Division P.O. Box 942709 Sacramento, CA 94229-2709 Telecommunications Device for the Deaf - (916) 326-3240 (916) 326-3420 FAX - (916) 658-1586 February 28, 1996 Employer Code t10060 Ms. Gail Olson Human Resources Manager City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 Dear Ms. Olson: We have received the Resolution of Intention to amend your CaIPERS contract to provide Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members; and Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. Enclosed are the following documents necessary to complete the proposed amendment: 1. Amendment to Contract. 2. Certification of Final Action of Governing Body (Form CON-5). Your agency adopted the Resolution of Intention on February 12, 1996, therefore, the earliest date the final Ordinance may be adopted is March 3, 1996, pursuant to Government Code Section 20460. THERE ARE NO EXCEPTIONS TO THIS LAW. The effective date of this amendment may be as early as the day following the effective date of the Ordinance. Please insert the amendment effective date on the last page of the Amendment to Contract. The following documents must be returned to this office. ORIGINAL SIGNATURES ARE REQUIRED ON ALL DOCUMENTS. 1. Amendment to Contract, two original executed sets. 2. Ordinance, original or certified copy. 3. Certification of Final Action of Governing Body (CON-5), original. This amendment requires an adjustment in the amount of monthly benefit payments and shall become operative the first of the month following a period of 30 days after receipt of the final documents in the Ca1PERS Sacramento office. Califomia Public Employees' Retirement System Lincoln Plaza - 400 P Street - Sacramento, CA 95814 page 2 City of Newport Beach , Please notify your personnel/payroll staff, as of the effective date of the amendment to the contract: (For assistance in payroll reporting, contact our Training and Assistance Unit at (916) 326-3635.) • Local miscellaneous members covered by the 1959 Survivor Benefits contribute $2.00 per month. • The employer;cost for the Third Level of 1959 Survivor Benefits is $2.00 per covered member, per month. Agencies are billed annually and payments may vary depending on the funding reserve level. • Local safety members covered by the 1959 Survivor Benefits contribute $2.00 per month. • The employer cost for the Fourth Level of 1959 Survivor Benefits is $9.00 per covered member, per month. Agencies are billed annually and payments may vary depending on the funding reserve level. A copy of the contract will be returned for your records after it has been executed by Ca1PERS. Please contact me at (916) 326-3614 if you have any questions. Sincerely, Ntcy S Retirement Program Specialist I Public Agency Contract Services NS:de Enclosures cc: Training and Assistance Unit Orange County Field Office • CALIFORNIA PUBLIC Ei LOYEES' RETIREMENT SYSTEl. Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF FINAL ACTION OF GOVERNING BODY I hereby certify that the of the (governing body) (public agency) adopted on , by an affirmative vote of a majority of the members of said (date) Goveming Body, No. approving the (Ordinance/Resolution) attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the California Public Employees' Retirement System, a certified copy of said in the form furnished by said Board of Administration (Ordinance or Resolution) being attached hereto. Clerk/Secretary Title • Date PERS-CON-5 (Rev. 1/96) • • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and December 2, 1989 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 December 2, 1989, 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 60 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, 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. 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 CADETS; AND b. RESERVE OFFICERS. • • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH • The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and December 2, 1989 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 December 2, 1989, 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 60 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, 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. 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 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 shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60 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 of said Retirement Law (2% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. b. c. Section 20421 ("Local Safety Member" shall include ocean beach lifeguards of a city as described in Government Code Section 20421). Section 21573 (Third Level of 1959 Survivor Benefits) members. for local miscellaneous Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. 8. 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. 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. Public Agency shall contribute $2.00 per member, per month on account of the liability for 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. b. Public Agency shall contribute $9.00 per member, per month on account of the liability for the 1959 Survivor Benefits provided under Section 21382.5 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 safety members. • • • • 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 21251.13 of said Retirement Law (2% at age 60 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 of said Retirement Law (2% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. b. c. Section 20421 ("Local Safety Member" shall include ocean beach lifeguards of a city as described in Government Code Section 20421). Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. 8. 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. 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. Public Agency shall contribute $2.00 per member, per month on account of the liability for 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. b. Public Agency shall contribute $9.00 per member, per month on account of the liability for the 1959 Survivor Benefits provided under Section 21382.5 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 safety members. • • c. 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. 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 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 day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE • CITY OF NEWPORT BEACH BY Presiding Officer Witness Date Attest: Clerk AMENDMENT PERS-CON-702A (Rev. 1/96) • • c. 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. 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 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 day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AMENDMENT PERS-CON-702A (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Witness Date Attest: Clerk • • ORDINANCE NO. 96 - 17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO INCREASE THE LEVEL OF THE SURVIVOR BENEFIT PROGRAM. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: That the Contract between the Board of Administration of the Public Employees Retirement System and the City Council of the City of Newport Beach shall be amended to increase the Survivor Benefit from Level One to Level Three for miscellaneous employees and to Level Four for safety employees. Section 2: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 22nd day of April 1996, and adopted on the 13th day of ItY 1996, by the following vote, to -wit: AYES, COUNCILMEMBERS HEDGES, DEBAY, GLOVER, EDWARDS, WATT, O'NEIL, COX NOES, COUNCILMEMBERS NONE ABSENT COUNCILMEMBERS NONE MAYOR ATTEST: 4dh . m.1d • C. 5(,-3 licit Agenda Item # 2 • February 12, TO: FROM: CITY OF NEWPORT BEACH ADMINISTRATIVE SERVICES DEPARTMENT 1996 HONORABLE MAYOR AND MEMBERS OF THE CITY Dennis Danner, Administrative Services Director SUBJECT: PERS SURVIVOR BENEFIT PROGRAM CITY�E !'At1te F3 12 IgQ6 `� 124,396-1 4 DISCUSSION: Attached please find the documents received from the Public Employees Retirement System (PERS) to amend our contract with them regarding the level of the Survivor Benefit program for both miscellaneous and safety employees. This benefit is paid to survivors, along with the other death benefits, whether or not the employee was eligible for retirement at the time of death. It is a benefit that is only available to agencies that do riot, contribute to Social Security because it replicates a similar Social Security benefit. Currently the City is at Level One for both groups, which provides a maximum benefit of $430 per month to the surviving spouse of a deceased employee with two or more eligible children. At the request of our safety employee associations, PERS supplied the City with the actuarial information regarding our reserve funds which could be used to offset the costs of increasing the benefit level for both employee categories. PERS offered the City the opportunity to use these funds to increase this benefit to a Level Three or Level Four. Level Two is no longer offered by PERS. After discussion in closed session Council concurred with staff's recommendation that, based on the current balance of the City's PERS' reserve accounts, we proceed to increase this benefit to Level Three for miscellaneous employees and Level Four for safety employees. The PERS report indicates that there will be no additional cost to employees or the City for miscellaneous employees for at least twenty-five years and safety for six years. By upgrading this benefit, using reserve money, survivors of employees with two or more children will receive a $2,280 monthly allowance at Level 4 and $840 at Level 3. Once the reserve account surplus is reduced to an amount which is less than two years of projected employer contributions, the City will pay $9 a month per employee or approximately $25,000 per year and the employee will continue to pay $2 a month. RECOMMENDATION: That the Council approve the amendment to the City's contract with the Public Employees Retirement System to increase the Survivor Benefit from Level One to Level Three for miscellaneous employees and from Level One to Level Four for safety employees. 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 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 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members; and Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members only. 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. Date adopted and approved (Amendment) CON-302 (Rev. 8/94) By Presiding Officer Title • • EXHIBIT AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and December 2, 1989 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 December 2, 1989, 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 60 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, 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. 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 CADETS; AND b. RESERVE OFFICERS. • • • ,S PIEA,SE DO NOT SIGN "EXHI• ONLY" 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 21251.13 of said Retirement Law (2% at age 60 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 of said Retirement Law (2% at age 50 Full). 7. Public Agency elected and elects to be subject to the following optional provisions: a. b. c. Section 20421 ("Local Safety Member" shall include ocean beach lifeguards of a city as described in Government Code Section 20421). Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27,1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. 8. 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. 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. Public Agency shall contribute $2.00 per member, per month on account of the liability for 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. b. Public Agency shall contribute $9.00 per member, per month on account of the liability for the 1959 Survivor Benefits provided under Section 21382.5 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 safety members. • c. 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. 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 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 BOARD OF ADMINISTRATION day of ,19 CITY COUNF PUBLIC EMQI,OYEES' RETIREMENT SYSTEM OF THE f4 CITY OF NET BEACH 4 BY O, . BY 1 CHIEF ACTUARYVA Presiding OfficerC3 ACTUARIAL OFFICE , PUBLIC EMPLOYEESI'W � TIREMENT SYSTEM Qv a l% AMENDMENT PERS-CON-702A (Rev. 1/961... Witness Date Attest: a Clerk CALIFORNIA PUBLIC EI OYEES' RETIREMENT SYSTEM • Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the of the (governing body) (public agency) on (date) Clerk/Secretary Title PERS-CON-12 (rev. 5/95) CALIFORNIA PUBLIC EJ OYEES' RETIREMENT SYSTEM Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 • CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting of the of the (governing body) public agency) on which is at least two weeks prior to the adoption of the (date) Resolution/Ordinance. Date Clerk/Secretary • PERS-CON-12A (rev. 5/95) • • AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21573 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21573, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21573. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21573 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21573, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21573. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date • • • AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21382.5. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date • • AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21382.5. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date 1 ESOLUfION NO. 96-12 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 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 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members; and Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members only. 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. By Presiding Officer Title /11QyOr February 12. 1996 Date adopted and approved (Amendment) CON-302 (Rev. 8/94) • • EXHIBIT AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and December 2, 1989 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 December 2, 1989, 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 60 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, 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. I oral Police Officers (herein referred to as local safety members); c. 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 CADETS; AND b. RESERVE OFFICERS. 41 PLEASE D0 NOT SIGN "EXHI•ONLY" 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 21251.13 of said Retirement Law (2% at age 60 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 of said Retirement Law (2% at age 50 Full). 7. 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 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members. c. Section 21382.5 (Fourth Level of 1959 Survivor Benefits) for local safety members. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976. e. Section 21583 (Second Opportunity to Elect 1959 Survivor Benefits) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. f. Section 20965 (Credit for Unused Sick Leave) for local miscellaneous members. 8. 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. 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. Public Agency shall contribute $2.00 per member, per month on account of the liability for 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. b. Public Agency shall contribute $9.00 per member, per month on account of the liability for the 1959 Survivor Benefits provided under Section 21382.5 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 safety members. • • c. 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. 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 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 BOARD OF ADMINISTRATION day of , 19 . CITY COUNVIL PUBLIC EM&OYEES' RETIREMENT SYSTEM OF THE (is CITY OF N BY CHIEF ACTUARY% ACTUARIAL OFFICE PUBLIC EMPLOYEESy ITIREMENT SYSTEM Fs. AMENDMENT PERS-CON-702A (Rev. 1/96) DO BY Presiding Officer SLei O witness Date 7`� tiyy Attest: O Clerk CALIFORNIA PUBLIC EMIPOYEES' RETIREMENT SYSTEM Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the (governing body) City of Newport Beach (public agency) on February 12, 1996 (date) Clerk/Secretary PERS-CON•12 (rev. 5/95) CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Actuarial Office Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 • CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting of the City Council (governing body) of the City of Newport Beach public agency) on February 12 , 19 9 6 which is at least two weeks prior to the adoption of the (date) Resolution/Ordinance. Date 4/ 3 %C! (i It -' Ala Clerk/Secretary Title PERS-CON-12A (rev. 5/95) • • AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21573 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21573, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21573. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Offickr Date a-13 4 (0 • • AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21573 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21573, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21573. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date d- r 3 416, AGREEMENT TO POOL 1959 SURVIVOR BENEFITS ASSETS AND LIABILITIES BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, Government Code Section 21382.5 provides for a single employer rate to be established to provide benefits under said Section on account of members employed by contracting agencies electing to include the provision of said Section in their contracts; and WHEREAS, Government Code Section 21382.5, requires pooling of all assets and liabilities of all contracting agencies subject to said Section; NOW, THEREFORE BE IT AGREED, that assets and liabilities of the City of Newport Beach and its covered employees shall be pooled pursuant to the provisions of Government Code Section 21382.5. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY CHIEF ACTUARY ACTUARIAL OFFICE PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-59 (Rev. 1/96) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Presiding Officer Date a ! 3 —9!0 • • • RESOLUTION NO. 93 - 83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH FJ .FCTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH POLICE EMPLOYEES' ASSOCIATION, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not Less than 5 percent of tthe monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to the as Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members the Newport Beach Police Employees' Association, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $170.00 of the monthly oremium: and be it further shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (1) That coverage under the Act be effective on January 1, 1994. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 22nd day of November, 1993. Signed • • RESOLUTION NO. 93 - 84 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH Ft FCTING TO BE SUBJECT TO THE PUBLIC EMPLOYEES MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH POLICE MANAGEMENT' ASSOCIATION, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to the as Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members of the Newport Beach Police Managment Employees' Association,who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of. his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $170.00 of the monthly premium: and be it further shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on January 1, 1994. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 22nd day of November, 1993. SigneA;_ ` zeae Mayor ATTEST: 444 e 9 CITY CLERK RESOLUTION NO. 93 - 85 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH FT FCTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH FIREFIGHTERS' ASSOCIATION, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFbRENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to the as Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members of the Newport Beach Firefighters' Association, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $170.00 of the monthly premium: and be it further • • shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on January 1, 1994. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 22nd day of November, 1993. Sign RESOLUTION NO. 93 - 86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH FIRE MANAGEMENT ASSOCIATION, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to the as Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members of the Newport Beach Fire Management Association, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $170.00 of the monthly premium; and be it further • • shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on January 1, 1994. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 22nd day of November, 1993. Sign RESOLUTION NO. 93 - 87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH OCEAN LIFEGUARD ASSOCIATION, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to the as Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members the Newport Beach Ocean Lifeguard Association, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $170.00 of the monthly oremium: and be it further r ., M • -1- RESOLVED, (d) That the employer's contribution for each annuitant shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on January 1, 1994. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 22nd day of November, 1993. Sign RESOLUTION NO. 93 - 88 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH KEY AND MANAGEMENT EMPLOYEES' ASSOCIATION, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to the as Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members of the Newport Beach Key and Management Employees Association, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That .the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $170.00 of the monthly premium: and be it further shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on 1994. ADOPTED at the regular meeting of the City at Newport Beach, California on this 22nd day of November, 1993. Sign -u-v Mayor January 1, Council • • RESOLUTION NO. 95 - 61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH CITY EMPLOYEES ASSOQATIQN AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to as the Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members the Newport Beach City Employees Association, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $210.00 of the monthly premium; and be it further RESOLVED, (d) That the employer's contribution for each annuitant shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on August 1, 1995. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 12th day of June 1995 Signed: %/�'� AT�TEST::A CITY CLERK • • RESOLUTION NO. 95 - 60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEE'S MEDICAL AND HOSPITAL CARE ACT ONLY WITH RESPECT TO MEMBERS OF THE NEWPORT BEACH EMPLOYEES LEAGUE, AND FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850.3 provides that a contracting agency may elect upon proper notifica- tion to participate under the Public Employees' Medical and Hospital Care Act with respect to a recognized employee organization only; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) The City of Newport Beach, hereinafter referred to as the Public Agency is a local agency contracting with the Public Employee's Retirement System; and, WHEREAS, (4) The Public Agency desires to obtain for the members the Newport Beach Employees League, who are employees and annuitants of the agency, benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it RESOLVED, (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further RESOLVED, (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of $400.00 per month; and be it further RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $210.00 of the monthly premium; and be it further • • RESOLVED, (d) That the employer's contribution for each annuitant shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on August 1, 1995. ADOPTED at the regular meeting of the City Council at Newport Beach, California on this 12th day of June 1995 Signed: Alk---) Mayor 41tie, rGR, h- :�-� AT)T,E_ST: CITY CLERK • • RESOLUTION NO. 95 - 40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ELECTING TO BE SUBJECT TO THE PUBLIC EMPLOYEES MEDICAL AND HOSPITAL CARE ACT FIXING THE EMPLOYER'S CONTRIBUTION FOR EMPLOYEES AND THE EMPLOYER'S CONTRIBUTION FOR ANNUITANTS AT DIFFERENT AMOUNTS. WHEREAS, (1) Government Code Section 22850 provides the benefits of the Public Employee's Medical and Hospital Care Act to employees of local agencies contracting with the Public Employees' Retirement System on proper application by a local agency; and WHEREAS, (2) Government Code Section 22857 provides that a contracting agency may fix the amount of the employer's contribution for employees and the employer's contribution for annuitants at different amounts provided that the monthly contribution for annuitants shall be annually increased by an amount not less than 5 percent of the monthly contribution for employees, until such time as the amounts are equal; and WHEREAS, (3) WHEREAS, (4) RESOLVED, RESOLVED, The City of Newport Beach, hereinafter referred to as the Public Agency is a local agency contracting with the Public Employees' Retirement System; and, The Public Agency desires to obtain for its member employees and annuitants the benefit of the Act and to accept the liabilities and obligations of an employer under the Act and Regulations; now, therefore, be it (a) That the Public Agency elect, and it does hereby elect, to be subject to the provisions of the Act; and be it further (b) That the employer's contribution for each employee shall be the amount necessary to pay the full cost of his/her enrollment, including the enrollment of his/her family members in a health benefits plan up to a maximum of: Code Bargaining Unit Contribution 001 Newport Beach Employees League 002 Newport Beach Pro- fessional/Technical Employees Assoc. 003 Newport Beach City Employees Assoc. And be it further Per Month $400.00 $400.00 $400.00 RESOLVED, (c) That the employer's contribution for each annuitant shall be the amount necessary to pay the cost of his/her enrollment, including the enrollment of his/her family members, in a health benefits plan up to a maximum of $190.00 of the monthly premium; and be it further (continued) 1 • • RESOLVED, (d) That the employer's contribution for each annuitant shall be increased annually by 5% of the monthly contribution for employees, until such time as the contributions are equal; and that the contributions for employees and annuitants shall be in addition to those amounts contributed by the Public Agency for administrative fees and to the Contingency Reserve Fund; and be it further RESOLVED, (e) That the executive body appoint and direct, and it does hereby appoint and direct Duane K. Munson, Personnel Director, to file with the Board of Administration of the Public Employees' Retirement System a verified copy of this Resolution, and to perform on behalf of said Public Agency all functions required of it under the Act and Regulations of the Board of Administration; and be it further RESOLVED, (f) That coverage under the Act be effective on July 1, 1995. ATTEST: Wanda Raggio, Clerk ADOPTED at the regular meeting of the Newport Beach City Council at Newport Beach, California on this 8th day of May1995. Signed: John Hedges, Mayor • r t.' • • w • a.. r in w• No (38) F-2(d) e. • • • • CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY MEMORANDUM January 8, 1992 TO: Mayor and Members of the City Council FROM: Robert H. Burnham SUBJ: c -513 BY TE CITY tccIL CRY OF NE PO TUBEACH JAN I 3 As you know, the City is entitled to apply credits towards PERS contributions as a result of AB 702. However, Santa Cruz County Employee Associations have challenged AB 702 and an adverse ruling would require the City to repay the credits tosOMMS. This resolution will establish an insurance reserve fund, the balance of which will be at least equal to the credits the City has used to offset PERS contributions. The fund balance can be increased to deal with unfunded liability resulting from accumulated sick leave, paid leave, workers' compensation claims or liability claims. RHB:kmc Robert H. Burnham City Attorney • • RESOLUTION NO. 92- 13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING AN INSURANCE RESERVE FUND AND AUTHORISING THE TRANSFER OF AB 702 PERS CREDITS TO THE FUND. WHEREAS, the City Council has the authority to establish those funds necessary for the fiscal operation of the City; and WHEREAS, the City has not established a fund for the accumulation of assets to meet the unfunded liability poritions of public liability, vacation, sick leave, and flexible leave, and workers' compensation; and WHEREAS, State Assembly Bill 702 allows cities to pay the employer porition of Public Employees Retirement System contributions with PERS credits; and WHEREAS, a legal challenge to AB 702 has been filed by various employee groups. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newport Beach as follows: 1. That an Insurance Reserve Fund is hereby established pending a final decision on the legal challenge to AB 702; 2. The Insurance Reserve Fund shall maintain a balance at least equal to the credits PERS has applied to offset City contributions as a result of AB 702; 3. The Insurance Reserve Fund balance may exceed the minimum specified in Subparagraph 2. as necessary or appropriate to satisfy unfunded liability arising from accumulated paid leave, sick leave, 1 • • compensatory time off, workers' compensation claims, and liability claims or lawsuits. ADOPTED, this 13th day of ATTEST: 2 Jannary YOR 1 1992. 1 PERS COUNCIL AGENDA" WO..± -2 (7) Contract Services Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) November 6, 1989 Mr. George Pappas Finance Director City of Newport Beach 3300 Newport Blvd. Newport, CA 92663 Dear Mr. Pappas: Reply to Section 220 Public Agency Contract Services Contract Services Division c'- 3-:3 Employer Code #0060 f E' ITY COUNCIL 0.1 2FJ\Ci NOV 2 7 1989 Enclosed are copies of a Resolution authorizing an amendment to correct an error in your contract. Adoption of this Resolution by your City Council will correct the error made when your contract was last amended to include Section 20024.2 (One -Year Final Compensation) for local miscellaneous and local safety members. The effective date of this corrective action will be that of the amendment effective date, of December 2, 1989, providing for Section 20024.2 (One -Year Final Compensation). Also enclosed is form CON-12, Certification of Governing Body's Action which must be completed and returned to this office (original or certified copy) along with two executed copies of the enclosed Resolution after its adoption by your governing body. A copy of the Resolution will be returned for your records after it has been signed by our Division Chief. If you have any questions, pleasce contact me at (916) 326-3614. Sincerely, ,may. Nancy Segmiller, Retirement Specialist Public Agency Contract Services Contract Agency Division NS:de Enclosures California ', „' •iptoye,!s' getirornent Syrt'm Lincoln ! ; aza -f tti) P Street -Sac.: w•nento, CA RESOLUTION NO. 89-134 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO CORRECT AN ERROR IN THE CONTRACT BETWEEN THE CITY OF NEWPORT BEACH AND THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM. WHEREAS, the City Council of the City of Newport Beach hereinafter referred to as Public Agency, and the Board of Administration of the Public Employees' Retirement System entered into a contract effective July 1, 1945 providing for the participation of Public Agency in the Public Employees' Retirement System; and WHEREAS, said contract, due to an error did not include Section 20024.2 (One -Year Final Compensation) for local miscellaneous and local safety members; and WHEREAS, Section 20461 of the Government Code provides that errors in a contract may be corrected through contract error amendments executed by the adoption of suitable resolutions by the contracting parties; NOW THEREFORE, BE IT RESOLVED, that a contract error amendment to said contract effective December 2, 1989 as follows: A. The paragraph number 7 of said contract shall be changed to include item "f." and shall read as follows: f. Section 20024.2 (One -Year Final Compensation) for local miscellaneous and local safety members. 1 • BE IT FURTHER RESOLVED, that the presiding office of the governing body of Public Agency be and is hereby authorized, empowered, and directed to execute said amendment for and on behalf of Public Agency. ADOPTED this 27th day of November , 1989 CITY COUNCIL CITY OF NEWPORT BEACH ATTEST: • RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO CORRECT AN ERROR IN THE CONTRACT BETWEEN THE CITY OF NEWPORT BEACH AND THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM • WHEREAS, the City Council of the City of Newport Beach hereinafter referred to as Public Agency, and the Board of Administration of the Public Employees' Retirement System entered into a contract effective July 1, 1945 providing for the participation of Public Agency in the Public Employees' Retirement System; and WHEREAS, said contract, due to an error did not include Section 20024.2 (One - Year Final Compensation) for local miscellaneous and local safety members; and WHEREAS, Section 20461 of the Government Code provides that errors in a contract may be corrected through contract error amendments executed by the adoption of suitable resolutions by the contracting parties; NOW, THEREFORE, BE IT RESOLVED that a contract error amendment to said contract effective December 2, 1989 as follows: A. The paragraph number 7 of said contract shall be changed to include item "f." and shall read as follows: f. Section 20024.2 (One -Year Final Compensation) for local miscellaneous and local safety members. BE IT FURTHER RESOLVED, that the presiding officer of the governing body of Public Agency be and is hereby authorized, empowered, and directed to execute said amendment for and on behalf of Public Agency. Adopted this 27rh day of November 1989 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BYI6.a ir C EF, CO TRACT SERVICES DIVXSION PUBLIC EMPLOYEES' RETIREMENT SYSTEM c' P ‘ CITY COUNCIL OF THE CITY OF NEWPORT BEACH BYa.MAIYVI.K.0" Presiding fficer Attest: c '* PERS Contact Services Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) * • Reply to Section 220 Public Agency Contract Services Contract Services Division December 20, 1989 Employer Code (k0060 Mr. George Pappas Finance Director City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mr. Pappas: * COPY Enclosed is the copy of the error amendment executed by our office. The Resolution corrects the error made when your contract was amended to include Section 20024.2 (One -Year Final Compensation) for both local miscellaneous and local safety members. The effective date of the contract amendment is December 2, 1989. Darlene Eredia Public Agency Contract Services Contract Services Division Attachment C0308 (Rev. 11/88) If you have any questions, please do not hesitate to contact the Retirement Specialist who has been assisting your agency with its contract_actiuit+,-a 7 pp the above address or telephone number. Sincerely, ` 2h Ctt%f A: • 6° it)(1 01 gad ,�I o� �' (117 u Yita It t.. California Public Employees Lincoln Plaza-400 P Strer • • Public Employees' Retirement System Public Agency Contract Services Contract Services Division - Section 220 Post Office Box 942709 Sacramento, CA 94229-2709 Telephone (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the City of Newport Beach on November 27, 1989 (Date) FCSD-CON-12 C0600 (Rev. 11/88) (Governing Body) (Name of Public Agency) CITY CLERK or Secretary of the Boar AGENDA ITEM # H -3 CIITY OIF NIEWPORT IiIEACIIII IPIEII8S5ONN1EIL IIIEIP'AIIgTMIENT JULY 27,1989 :;Y 7 F' - •ITY LOUNCIL CITY `)f :r20VPO3T 3EACI' AUG 14 1989 ei- /j TO: Honorable Mayor Strauss and Members of the City Council FROM: The Personnel Director REGARDING: The attached ordinance amends the City's contract for retirement benefits with the Public Employees Retirement System (P.E.R.S.) RECOMMENDATION: If desired, adopt ordinance number BACKGROUND: This year the City Council has approved the modification of the City employees retirement contract with P.E.R.S. to allow for the highest/best year calculation to determine the new retirees base retirement income. The attached ordinance for adoption is the final step of the three steps required by P.E.R.S. in the process of modifying their service contract with the City. STEP 1. Resolution of intention July 10, 1989 STEP 2. Ordinance for introduction July 24,1989 STEP 3. Ordinance to approve an amendment to contract between P.E.R.S. and the City of Newport Beach August 14, 1989 DISCUSSION: Government Code Section 7507 requires that the cost implications of the proposed contract amendment be made public at least two weeks prior to authorization and finalization of the amendment. The attachment shows the projected annual additional cost that this amendment would eventually produce in the funding of the employee retirement system. There are two major factors that should be realized when these projected cost implications are considered. 1.) The implementation date of this amendment is December 2, 1989, leaving 15 pay periods between implementation and the end of fiscal year 1989-90. This factor reduces the actual first year cost to a projected $392,725. 2.) The funding of the retirement system has traditionally been considered to be part of the total compensation paid to the employees. The City has advised the various employee associations the it intends to phase the cost of this benefit into the City's J-1 policy systematically over the next 5 years. Duane K. Munson Director of Personnel 9- COMPARISON OF CURRENT PUBLIC EMPLOYEES RETIREMENT (PERS) CONTRIBUTION COST TO COST OF HIGHEST ONE YEAR AMENDMENT MISCELLANEOUS MEMBERS General Fund Library Fund Park and Recreation Fund Tide and Submerged Lands Fund Water Fund Marinapark Fund Total Miscellaneous Members SAFETY MEMBERS General Fund Total Safety Members 1989-90 Current Amended Budgeted Cost @ Cost @ Salaries 5.435% 7.245% 11,018,820.00 598,872.89 798,313.04 1,194,995.00 64,947.98 86,577.39 1,671,260.00 90,832.98 121,082.79 30,440.00 1,654.41 2,205.38 1,019,680.00 55,419.61 73,875.82 15,120.00 821.77 1,095.44 14,950,315.00 1989-90 Budgeted Salaries 12,647,510.00 12 647.510.00 Additional Annual Cost 199,440.15 21,629.41 30,249.81 550.97 18,456.21 273.67 812.549.64 1,083,149.86 270,600.22 Current Amended Cost @ Cost @ 11.487% 14.729% 1,452,819.47 1,862,851.75 1,452,819.47 1,862,851.75 Additional Annual Cost 410,632.50 410,632.50 3 ORDINANCE NO. 89- 18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO PROVIDE ONE YEAR FINAL COMPENSATION FOR MISCELLANEOUS AND SAFETY MEMBERS. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: That the Contract between the Board of Administration of the Public Employees Retirement System and the City Council of the City of Newport Beach shall be amended to provide Section 20024.2 Status (one year final compensation) for local miscellaneous members and local safety members. Section 2: This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 24th day of July , 1989, and adopted on the Augyist , 1989, by the following vote, to -wit: 14th day AYES, COUNCILMEMBERS Strauss, Plummer, Hart, Turner, Watt, Sansone, Cox of NOES, COUNCILMEMBERS None ABSENT COUNCILMEMBERS None MAYOR i (a) AGENDA ITEM# F-1-(b) Ct IITY OIF NIEWPOET r,IEAC1 II PERSONNEL IDIEJPAII8TMIENT JULY 18,1989 TO: Honorable Mayor Strauss and Members of the City Council FROM: The Personnel Director 6Y TP- . •ITY LOUMM CITY 01 ;4cWPORT BEACI`. JUL 2 4 1989 z 'te( neaZ fence-/c/ REGARDING: The attached ordinance for introduction proposes to amend the City's contract for retirement benefits with the Public Employees Retirement System (P.E.R.S.) RECOMMENDATION: If desired, introduce proposed ordinance and pass to second reading on August 14, 1989. BACKGROUND: This year the City Council has approved the modification of the City employees retirement contract with P.E.R.S. to allow for the highest/best year calculation to determine the new retirees base retirement income. The attached ordinance for introduction is the second of three steps required by P.E.R.S. in the process of modifying their service contract with the City. STEP 1. Resolution of intention July 10, 1989 STEP 2. Ordinance for introduction July 24, 1989 STEP 3. Ordinance to approve an amendment to contract between P.E.R.S. and the City of Newport Beach August 14, 1989 DISCUSSION: Government Code Section 7507 requires that the cost implications of the proposed contract amendment be made public at least two • • weeks prior to authorization and finalization of the amendment. The attachment shows the projected annual additional cost that this amendment would eventually produce in the funding of the employee retirement system. There are two major factors that should be realized when these projected cost implications are considered. 1.) The implementation date of this amendment is December 2, 1989, leaving 15 pay periods between implementation and the end of fiscal year 1989-90. This factor reduces the actual first year cost to a projected $392,725. 2.) The funding of the retirement system has traditionally been considered to be part of the total compensation paid to the employees. The City has advised the various employee associations the it intends to phase the cost of this benefit into the City's J-1 policy systematically over the next 5 years. Duane K. Munson Director of Personnel AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF TEE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and January 12, 1988, 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 January 12, 1988, and hereby replaced by the following paragraphs numbered 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 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, 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 contract- ing 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. 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. CADETS; AND b. RESERVE OFFICERS. 5. The fraction 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 21251.13 of said Retirement Law (2% at age 60 Full). 6. The fraction 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 21252.01 of said Retirement Law (2% at age 50 Full). 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. Section 20019.3 ("Local Safety Member" shall include city lifeguards as described in Government Code Section 20019.3). b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 (Third Level of 1959 Survivor Benefits). c. Section 20930.3 (Military Service Credit). Statutes of 1976. d. Section 21389 (Second Opportunity to Elect 1959 Survivor Coverage) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. e. Section 20862.8 (Credit for Unused Sick Leave) for local miscellaneous members. 8. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 20759 effective on September 24, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 7.245 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) • • b. With respect to local safety members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 14.729 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) c. A reasonable amount, as fixed by the Board, payable in one in- stallment 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. d. A reasonable amount, as fixed by the Board, payable in one in- stallment 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. 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 periodic investigation and valuation required by said Retirement Law. 11. 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 2nd December , 19 89 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY tau f SI CHIEF, CONTRACT SERVICES DIVI ON PUBLIC EMPLOYEES' RETIREMENT SYSTEM PERS-CON-702 (AMENDMENT) (Rev. 6/88) CITY COUNCIL OF THE CITY OF NEWPORT BEA BY Presiding Officer 876-gy Witness Date day of HERS Contract Set Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) Reply to Section 220 Public Agency Contract Services Contract Services Division October 12, 1989 Employer Code #0060 Mr. George Pappas Finance Director City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mr. Pappas: The contract amendment has been executed by our office. The effective date of the contract amendment is December 2, 1989. If you have any questions, please do not hesitate to contact the Retirement Specialist who has been assisting your agency with its contract activity at the above address or telephone number. Sincerely, Darlene Eredia Public Agency Contract Services Contract Services Division Attachment CO308 (Rev. 11/88) PERS Contract Set Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) July 27, 1989 Mr. George Pappas Finance Director City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mr. Pappas: Reply to Section 220 Public Agency Contract Services Contract Services Division Employer Code #0060 We have received the Resolution of Intention to amend your PERS contract to provide Section 20024.2 (One -Year Final Compensation) for local miscellaneous members and local safety members. The following documents are necessary to complete the proposed amendment: 1. Amendment to Contract, Form 702. Please sign and return both copies to this System. ORIGINAL SIGNATURES ARE REQUIRED. 2. Certification of Final Action by the Governing Body (Form CON-5). Complete and return one copy to this System. Your agency adopted the Resolution of Intention on July 10, 1989. Therefore, the earliest date your agency can have the final reading of the Ordinance is July 30, 1989, pursuant to Government Code Section 20460. THERE CAN BE NO EXCEPTIONS TO THIS LAW. The effective date of the amendment cannot be earlier than the first day of a payroll period following the effective date of the Ordinance. Please insert the effective date of the amendment on the last page of the Amendment to Contract. Please be sure to notify your accounting division regarding any rate change because of the amendment. California Public Employees' Retirement System Lincoln Plaza-400 P Street -Sacramento, CA The following documents with original signatures must be returned to this office. ORIGINAL SIGNATURES ARE REQUIRED ON ALL DOCUMENTS. 1. Amendment to contract (Form 702) - two complete sets - 1 original and 1 copy. 2. Ordinance - original or certified copy. 3. Certification of Final Action (Form CON-5) - original or certified copy. A copy of the contract will be returned for your records after it has been signed by our Executive Office. Please contact me at (916) 326-3614 if you have any questions. Yours truly, 7%y764( rx 1,14- Nancy Seegmiller, Retirement Specialist Public Agency Contract Services Contract Services Division NS:de Enclosures cc: Santa Ana Field Office FCSD-CON-31 (AMENDMENT) C0407 (Rev. 1/88) _.PERS • Contract Services Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) I hereby certify: That the the on (Date) CERTIFICATION OF FINAL ACTION OF GOVERNING BODY 4 (Governing Body) G /1 (Public ) Agency) members of said Governing Body, DATE: of adopted by an affirmative vote of a majority of the b !—/O No. (Ordinance or Resolution) approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the Public Employees' Retirement System, a certified copy of said g9— ;. in the form (Ordinance or Resolution) furnished by said Board of Administration being attached hereto. tee (Clerk or Secretary) (Public Agency) PERS-CON-5 C0614 (Rev. 4/89) CITPOF NEWPORT !PEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (714) 644-3005 August 17, 1989 Nancy Seegmiller, Retirement Specialist Public Employees' Retirement System Contract Services Division - Section 220 Post Offixe Box 942709 Sacramento, Ca. 94229-2709 Dear Nis. Seegmiller: Enclosed is a certified copy of Ordinance No. 89-18 authorizing an amendment to the contract with the Public Employees' Retirement System to provide one year final compensation for miscellaneous and safety members, and two original signed agreements. When the agreement is executed by the Board of Administration, please forward a copy to this office for our files. Sincerely, Wanda E. Raggio City Clerk Encs. (3) 3300 Newport Boulevard, Newport Beach • i ORDINANCE NO. 89- 18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO PROVIDE ONE YEAR FINAL COMPENSATION FOR MISCELLANEOUS AND SAFETY MEMBERS. The City Council of the City of Newport Beach does hereby ordain as follows: Section 1: That the Contract between the Board of Administration of the Public Employees Retirement System and the City Council of the City of Newport Beach shall be amended to provide Section 20024.2 Status (one year final compensation) for local miscellaneous members and local safety members. Section 2: This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 24th day of July , 1989, and adopted on the 14th day of August , 1989, by the following vote, to -wit: AYES, COUNCILMEMBERS Strauss, Plummer, Hart, Turner, Watt, Sansone, Cox NOES, COUNCILMEMBERS None ABSENT COUNCILMEMBERS None MAYOR ATTEST, CITY CLERK 1 CJJATE7AS CITY CLERK OF THE CITY Of NEWPORT B DATE, AGENDA ITEM # F - 2 - (g) CM CIF NIEWIPORT I IEACIHI FERSONNIEL. D EPAII87I' 1IIENT CY Tf r ' �ITY COUNCIL CITY Ot ;4EWPORT OEACI /J U L 10 1989 JULY 3,1989 do 79- f'(.i ,f/- 7C TO: Honorable Mayor Strauss and Members of the City Council FROM: The Personnel Director REGARDING: The attached resolution of intention to amend the City's contract for retirement benefits with the Public Employees Retirement System (P.E.R.S.) RECOMMENDATION: Approve the attached resolution. BACKGROUND: This year the City Council has approved the modification of the City employees retirement contract with P.E.R.S. to allow for the highest/best year calculation to determine the new retirees base retirement income. The attached resolution is the first of three steps required by P.E.R.S. in the process of modifying their service contract with the City. STEP 1. Resolution of intention July 10, 1989 STEP 2. Ordinance for introduction July 24, 1989 STEP 3. Ordinance to approve an amendment to contract between P.E.R.S. and the City of Newport Beach August 14, 1989 Duane K. Munson Director of Personnel • • 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 COUNCIL AGENDA No F-2(g) 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 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 20024.2 (One -Year Final Compensation) for local miscellaneous members and local safety members. 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 the said governing body 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. BY (NAME) (TITLE) (Date adopted and approved) Ret. Form 122 C0302 • • RESOLUTION NO. 89- 76 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING 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. 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 governingbody 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 20024.2 (One -Year Final Compensation) forlocal miscellaneous members and local safety members. 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 the said governing body 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. ADOPTED this 10th day of July, 1989. P MAYOR PRO TEM 1 :,. ti • III* * COPY 41 Ci ;��`�.S `\" AMENDMENT TO CONTRACT BETWEEN THE S`� BOARD OF ADMINISTRATION �O� OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM ASf. OO AND THE Y` 6 CITY COUNCIL \� Q ' OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and January 12, 1988, 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 January 12, 1988, and hereby replaced by the following paragraphs numbered 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 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, 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 contract- ing 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. Lifeguards (included as local safety members); d. Employees other than local safety members (herein referred to as local miscellaneous members). •* * COPY • f0 7. The following additional provisions of the Public Employees' t 6, Retirement Law, which apply only upon election of a contracting agency, shall apply to the Public Agency and its employees: 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: CADETS; AND tD.�b. RESERVE OFFICERS. The fraction 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 21251.13 of said Retirement Law (2% at age 60 Full). Z 6. The fraction of final compensation to be provided for each year of ,t` credited prior and current service as a local safety member shall be .9 determined in accordance with Section 21252.01 of said Retirement Law -` (2% at age 50 Full). a. Section 20019.3 ("Local Safety Member" shall include city lifeguards as described in Government Code Section 20019.3). b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section 21382.2 (Increased 1959 Survivor Benefits). and Section 21382.4 (Third Level of 1959 Survivor Benefits). c. Section 20930.3 (Military Service Credit). Statutes of 1976. d. Section 21389 (Second Opportunity to Elect 1959 Survivor Coverage) for local miscellaneous members. Legislation repealed said Section effective September 27, 1979. e. Section 20862.8 (Credit for Unused Sick Leave) for local miscellaneous members. 8. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 20759 effective on September 24, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 7.245 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) r 4 •* * COPY • b. With respect to local safety members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 14.729 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) c. A reasonable amount, as fixed by the -Board, payable in one in- stallment 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. d. A reasonable amount, as fixed by the Board, payable in one in- stallment 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. 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 periodic investigation and valuation required by said Retirement Law. 11. 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 effect_i'be on the DNCe+nPeg. t,, ?. BOARD OF ADMINISTRATION #� 1 CITY COUNCIL PUBLIC EMPLOYEES' RETIR\EI�L4' SYSTEM OF THE 7:\ CP �""''''CCCCCCrrrrrr", CITY OF NEWPORT BEACH �~�`�� BY �� BY L. CHIEF, Cs•N�.: ACT SERVICES DIVISION Presiding Officer A.,' PUBLIcem OYEES' RETIREMENT SYSTEM *\ P — V?1 PERS-CON-702 (AMENDMENT) (Rev. 6/88) e)-101 Witness Date,'1 Attest: - day of Clerk t CITIPOF NEWPORT BEACH OFFICE OF THE CITY CLERK P.O. BOX 1768, NEWPORT BEACH, CA 92658-8915 (714) 644-3005 July 14, 1989 Nancy Seegmiller, Retirement Specialist Public Employees' Retirement System Contract Services Division - Section 220 Post Office Box 942709 Sacramento, Ca. 94229-2709 Dear Ms. Seegmiller: Enclosed is a certified copy of Resolution No. 89-76 approving 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 which was adopted July 10, 1989. The subject amendment proposes the following change: "To provide Section 20024.2 (One -Year Final Compensation) for local miscellaneous members and local safety members." As an aside, would you also check on a previous amendment which was approved back in December, 1988 relative to exempting the positions of Police Cadet and Police Reserve Officer from the minimum hour requirement. We did not receive an executed copy of the amendment from your office, nor can it be located in any of the other city offices. We would appreciate receiving a copy for our files. If you have any questions, please give me a call. Very truly yours, Wanda E. Raggio City Clerk Enclosures 3300 Newport Boulevard, Newport Beach ,ti Public Employees' Retirement System Public Agency Contract Services Contract Services Division - Section 220 Post Office Box 942709 Sacramento, CA 94229-2709 Telephone (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary and/or the increase in retirement benefit(s) have been made public at a public meeting by the City Council of City of Newport Beach (governing body) (public agency) at least two weeks prior to the adoption of the final Ordinance/Resolution. Date: //l /989 GUI a. original signatu PERS-CON-12A (Rev. 11/88) C0601 official Public Employees' Retirement System Public Agency Contract Services Contract Services Division - Section 220 Post Office Box 942709 Sacramento, CA 94229-2709 Telephone (916) 326-3420 326-3000 (Telecommunications Device for the Deaf) CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the of the on City Council (Governing Body) City of Newport Beach (Name of Public Agency) July 10, 1989 (Date) CITY CLERK Secretary of the Board FCSD-CON-12 C0600 (Rev. 11/88) • • The effective date of this amendment cannot be earlier than the beginning of a payroll period following the effective date of.the final action of your governing body. If you have any questions regarding this letter or the enclosed material, please do not hesitate to contact me at (916) 326-3614. Yours truly, Nancy Seegmiller, Retirement Specialist Public Agency Contract Services Contract Services Division NS:de Enclosures cc: Santa Ana Field Office FCSD-CON-32 (AMENDMENT) C0402A (Rev. 3/87) �., . ;;OUNCIL BEACI CITY OF NEWPORT BEACH NOV 2 8 1988 PERSONNEL OFFICE NOVEMBER 28, 1988 WIC _-(.id..-671_de !"7r /J -/ 2 -n'� TO: HONORABLE MAYOR AND MEMBERS TNr ,,In couAGENDA ITEM P. /r?A) HJI OF THE CITY COUNCIL CM"); NEWPORT BEACW' FROM: DUANE K. MUNSON, PERSONNEL DIRECTOR D E CI )12 1988 SUBJ: FIRST READING OF THE ORDINANCE IN THE MATTER OF THE CITY OF NEWPORT BEACH'S INTENTION TO AMEND THE CONTRACT BETWEEN THE CITY AND THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (P.E.R.S.) RECOMMENDATION: Approve the Ordinance to amend the contract between the City and P.E.R.S. BACKGROUND: The Contract, as it exists, between the City and P.E.R.S. re- quires that all employees who work in excess of 1,000 hours in a year, be included in our retirement system. Consequently, the City Departments which use part-time or seasonal employees have maintained their schedules at less than 1,000 hours. This practice has been a hardship for the Police Department in the positions of: 1. Police Cadet 2. Police Reserve Officer This hardship comes from the difficulties in recruiting and specialized training of these individuals. This Contract Amendment exempts these positions from the minimum hour requirement. P.E.R.S. requires that this change be accomplished in the following manner: 1.) Resolution of Intention (November 14, 1988) 2.) An Ordinance of Adoption of this change...First Reading (this Agenda). 3.) Adoption of Ordinance ...Second Reading (scheduled for December 12, 1988) ORDINANCE NO. 88-45 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT WITH THE ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) AND THE CITY OF NEWPORT BEACH. The City Council of the City of Newport Beach does ordain as follows: Section 1. That an amendment to the Contract between the City Council of 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 A", and by such reference made a part hereof as though herein set out in full. This amendment excludes the position of "Police Cadet" and "Police Reserve Officer" hired on or after the effective date of this amendment to the Contract. Section a. The Mayor of the City of Newport Beach is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within fifteen (15) days after its adoption. Section 4. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 28th day of November , 1988, and adopted on the 12th day of December , 1988, by the following vote, to -wit: AYES, COUNCILMEMBERS TURNER. SANSONE. PLUMMER, STRAUSS, HART. COX. WATT NOES, COUNCILMEMBERS NONE ABSENT COUNCILMEMBERS NONE MAYOR •* * * COPY * * * • 22 \Y ED TO CONTRACT '� S4bt u ��� BOARDBBEE F ADMINISTRATION ION \G� OF THE .,FU �\\\ PUBLIC EMPLOYEES'ESD THE SYSTEM '�` CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and June 30, 1979, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective June 30, 1979, and hereby replaced by the following paragraphs numbered 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 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, 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 contract- ing 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); 3 • * * copy * * * • b. Local Police Officers (herein referred to as local safety members); c. Lifeguards (included as local safety members); d. Employees other than local safety members (herein referred to as local miscellaneous members). 44 44 7. The following additional provisions of the Public Employees' tip Retirement Law, which apply only upon election of a contracting -Tr agency, shall apply to the Public Agency and its employees: 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: 1, a. CADETS; AND 0 b. RESERVE OFFICERS. I The fraction of final compensation to be provided for each year of ys credited prior and current service as a local miscellaneous member W shall be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60 Full). 0 4.5- 6. The fraction 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 21252.01 of said Retirement Law (2% at age 50 Full). a. Section 20019.3 ("Local Safety Member" shall include city lifeguards as described in Government Code Section 20019.3). b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 (Third Level of 1959 Survivor Benefits). c. Section 20930.3 (Military Service Credit), as defined in Chapter 830, Statutes of 1976. d. Section 21389 (Second Opportunity to Elect 1959 Survivor Coverage). Legislation repealed said Section effective September 27, 1979 for local miscellaneous members. e. Section 20862.8 (Unused Sick Leave Credit) for local miscellaneous members. COPY * * * 8. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 20759 effective on September 24, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 5.556 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) 4t7 b. With respect to local safety members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: Sel h (1) 11.602 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) Oc. A reasonable amount, as fixed by the Board, payable in one in- stallment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of �L Public Agency, not including the costs of special valuations or t of the periodic investigation and valuations required by law. d. A reasonable amount, as fixed by the Board, payable in one in- stallment 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. 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 periodic investigation and valuation required by said Retirement Law. S COPY * * * 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 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 day of , 19 BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE O'C� CITY OF NEWPORT BEACH BYC `�\ BY `� ASSISTANT EXECUTIVE OFFJkt Presiding Officer PUBLIC EMPLOYEES' REETSEMENT SYSTEM NJ Oi PERS-CON-702 (AMENDMENT) (Rev. 6/88) Witness Date ,. Attest: C) Clerk RS Contract w a Services Division P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 COPY . * * 326-3000 (Telecommunications Public Agency Contract Services Device for the Deaf) March 27, 1989 Mr. Duane M. Munson Personnel Director City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mr. Munson: Contract Services Division Employer Code 4006fr- ..'.-,. The contract amendment has been executed by our office. The effective date of the contract amendment is January 12, 1989. If you have any questions, please do not hesitate to contact the Retirement Specialist who has been assisting your agency with its contract activity at the above address or telephone number. Sincerely, Darlene Eredia Public Agency Contract Services Contract Services Division Attachment C0308 (Rev. 11/88) Calitomia Public Employees' Retirement System Lincoln Plaza-400 P Street -Sacramento, CA AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and June 30, 1979, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective June 30, 1979, and hereby replaced by the following paragraphs numbered 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 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, 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 contract- ing 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. 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. CADETS; AND b. RESERVE OFFICERS. 5. The fraction 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 21251.13 of said Retirement Law (2% at age 60 Full). 6. The fraction 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 21252.01 of said Retirement Law (2% at age 50 Full). 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. Section 20019.3 ("Local Safety Member" shall include city lifeguards as described in Government Code Section 20019.3). b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 (Third Level of 1959 Survivor Benefits). c. Section 20930.3 (Military Service Credit), as defined in Chapter 830, Statutes of 1976. d. Section 21389 (Second Opportunity to Elect 1959 Survivor Coverage). Legislation repealed said Section effective September 27, 1979 for local miscellaneous members. e. Section 20862.8 (Unused Sick Leave Credit) for local miscellaneous members. 8. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 20759 effective on September 24, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 5.556 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change.) b. With respect to local safety members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 11.602 percent until June 30, 2000 on account of the liability for current service benefits. (Subject to annual change ) c. A reasonable amount, as fixed by the Board, payable in one in- stallment 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. d. A reasonable amount, as fixed by the Board, payable in one in- stallment 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. 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 periodic investigation and valuation required 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 remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. ent shall be effective on the / day of , 19 SR. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY C W/ 47 ASSISTANT EXECUTIVEOFFICER PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: PERS-CON-702 (AMENDMENT) (Rev. 6/88) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY ® r Presiding Offic r D,ae v,nbea l�) � S� TH: LITY COUNCIL -CITY OF NEWPORT BEAM NOV 141988 CITY OF NEWPORT BEA...H PERSONNEL OFFICE NOVEMBER 14, 1988 T0: HONORABLE MAYOR AND MEMBERS AGENDA ITEM F •2 (c OF THE CITY COUNCIL FROM: DUANE K. MUNSON, PERSONNEL DIRECTOR SUBJ: INTENTION TO AMEND THE CONTRACT BETWEEN THE CITY OF NEWPORT BEACH AND THE PUBLIC EMPLOYEES RETIREMENT SYSTEM - P.E.R.S. RECOMMENDATION: Approve the Resolution of Intention to approve an amendment to the contract between the City and P.E.R.S. BACKGROUND: The Contract, as it exists, between the City and P.E.R.S. requires that all employees who work in excess of 1,000 hours in a year, be included in our retirement system. Consequently, the City Departments which use part-time or seasonal employees have maintained their schedules at less than 1,000 hours. This practice has been a hardship for the Police Department in the positions of: 1. Police Cadet 2. Police Reserve Officer This hardship comes from the difficulties in recruiting and specialized training of these individuals. This Contract Amendment exempts these positions from the minimum hour requirement. P.E.R.S. requires that this change be accomplished in the following manner: 1.) Resolution of Intention (this Agenda) 2.) An Ordinance of Adoption of this change...First Reading (scheduled for November 28, 1988). 3.) Adoption of Ordinance ...Second Reading (scheduled for December 12, 1988) RESOLUTION NO. 88- 110 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH 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. 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 the procedure by which said public agencies may elect Law; and WHEREAS, one of the steps in the procedure 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 exclude the positions of "POLICE CADET" "POLICE RESERVE OFFICER" hired on or after the effective date of this amendment to contract. WHEREAS, 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 the said governing body 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. ADOPTED this 14th day of November ATTEST: CITY CLERK • • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH - The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of 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 and June 30, 1979, which provides, for participation of Public Agency in said System, Board of Public Agency hereby agree as follows:' A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective June 30, 1979, and hereby replaced by the following paragraphs numbered 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 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, 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); 1 EXHIBIT • • c. d. (herein referred 4. In membership by employees shall a. b. Lifeguards (included as local safety members); Employees other than local safety members to as local miscellaneous members). addition to the classes of employees excluded from said Retirement Law, the following classes of not become members of said Retirement System: POLICE CADETS; and POLICE RESERVE OFFICERS. 5. The fraction 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 21251.13 of said Retirement Law (2% at age 60 Full). 6. The fraction 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 21252.01 of said Retirement Law (2% at age 50 Full). 7. The following Employees' Retirement Law, contracting agency, shall employees: additional provisions of the Public which apply only upon election of a apply to the Public Agency and its a. Section 20019.3 ("Local Safety Member" shall include city lifeguards as described in Government Code Section 20019.3). b. Sections 21380 - 21387 (1959 Survivor Benefits) excluding Section 21382.2 (Increased 1959 Survivor Benefits) and Section 21382.4 (Third Level of 1959 Survivor Benefits). c. Section 20930.3 (Military Service Credit), as defined in Chapter 830, Statutes of 1976. d. Section 21389 (Second Opportunity to Elect 1959 Survivor Coverage). Legislation repealed said Section effective September 27, 1979 for local miscellaneous members. e. Section 20862.8 (Unused Sick Leave Credit) local miscellaneous members. for 8. Public Agency, in accordance with Government Code Section 20740, ceased to be an "employer" for purposes of Section 2 20759 effective on September 24, 1977. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20759, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20759. 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to local miscellaneous members, the agency shall contribute the following percentages of salaries earned a members of said Retirement System: (1) 5.556 account of the liability for to annual change.) percent until June 30, 2000 on current service benefits. (Subject b. With respect to local safety members, the agency shall contribute the following percentages of salaries earned as members of said Retirement System: (1) 11.602 percent until June 30, account of the liability for current service benefits. to annual change.) c. A reasonable amount, as fixed by payable in one installment within 60 days of date of cover the costs of administering said System as it employees of Public Agency, not including the costs valuations or of the periodic investigation and required by law. 2000 on (Subject the Board, contract to affects the of special valuations 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 periodic 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 periodic investigation and valuation required by said Retirement Law. 11. Contributions required by Public Agency and its employees shall be paid by Public Agency to the Retirement System within 30 days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. 3 5- 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 day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY BY ASSISTANT EXECUTIVE OFFICER PUBLIC EMPLOYEES' RETIREMENT SYSTEM 4 MAYOR APPROVED AS TO FORM: CITY ATTORNEY ATTEST: CLERK TO: ROBERT L. WYNN CITY MANAGER FROM: Lorenzo Mota h1T"•R 8 1582 Personnel Director CITY OF NEWPORT BEACH. PERSONNEL OFFICE Feb. 26, 1982 Crain AGENDA -T� - 'Q 2 Pon ga31 cy u::: COUNCIL CaaY, or F "Z!'OaT HATCH SUBJECT: RESOLUTION OF SUPPORT: CITY OF ANAHEIM BACKGROUND: The Mayor of the City of Anaheim has forwarded corres- pondence to all Mayors of cities in Orange County who are members of the Public Employees Retirement System (P.E.R.S.) requesting support from each of the respective City Councils for the City of Anaheim's claim for reimbursement of costs as a result of State mandated legislation. In 1979, A.B. 2674 was enacted and it created Section 21231 of the Public Employees Retirement Law. The legislation established a quarterly ten (10) percent cost -of -living increase for all P.E.R.S. retirees who were eligible to receive any allowance as of Dec. 31, 1979. The quarterly increases began on October 1, 1980, and terminates September 30, 1982. The legislation authorized the transfer of monies from the P.E.R.S. Contingency Reserve Account to pay for the quarterly increases. It is the contention of the City of Anaheim, in addition to City Staff, that the reserve account was intended to offset employer obligation for benefit payments created because of losses in investment earnings and fluctuation in actuarial assumptions of the system, and not as a source of increased benefits. Furthermore, the City of Anaheim believes, and City Staff concurs, that the use of the monies for this purpose results in a higher employer contribution rate to P.E.R.S. The City of Anaheim has estimated that quarterly increases for all eligible Anaheim retirees will cost approximately $154,000. There- fore in accordance with S.S. 90 they have submitted a test claim for reimbursement of that amount. S.B. 90, among other things, requires the State of California to provide a subvention of monies to reim- burse local government for costs of any new program or any increased level of service caused by legislation or State agency action. The City of Anaheim is soliciting support in obtaining classification of this kind of benefit adjustment as a State -mandated cost which is reimbursable to cities. The City of Anaheim has requested that the resolution be forwarded to them no later than March 15, 1982. RECOMMENDATION: It is recommended that the City Council adopt the attached resolution in support of the City of Anaheim's effort for reimbursement for costs incurred for complying with State -mandated legislation. • • i February 11, 1982 Mayor Jacqueline E. Heather City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Dear Mayor Heather: The City of Anaheim has filed a test SB-90 Claim with the State Board of Control for reimbursement of costs resulting from the passage of AB 2674 (Boatwright). The bill, chaptered as Section 21231 of the Public Employees' Retirement Law, establishes a quarterly ten percent cost -of -living increase for PERS retirees over a two-year period. Funds for payment are taken from the PERS contingency reserve account without authorization by local agencies. The reserve account is intended to offset employer obligations for benefit payments created because of losses in investment earnings and fluctuations in actuarial assumptions of the system. It is not intended as a funding source for increased benefits. The PERS Board of Administration's practice of underestimating the Retirement Fund earnings has resulted in surplus earnings being credited to the contingency reserve account. In 1975 the contingency reserve was $100 million; by June, 1981, the contingency reserve account had grown to $540 million. The understatement of interest earnings of the Retirement Fund artificially creates a short -fall that requires a higher employer contribution to fund retirement plans. Financing of each member agency's retirement plan is derived from three sources; (1) Employee contributions at a fixed rate established by State statute; (2) Interest earnings from invested funds; and (3) Employer contributions based upon a specific agency's long-term funding needs, including income from employee contributions and interest earnings as determined by the system actuaries. When the system actuaries underestimate interest earnings from Retirement Fund investments, the employer's contribution, which is the balancing variable, goes up. The City of Anaheim believes that use of interest earnings to fund the cost - of -living bonus payment approved through the Boatwright bill effectively deflects the use of the monies from retirement plan payment and results in a higher contribution from the employer. We estimate that the City of Anaheim • • 2 has effectively borne the full cost of the benefit increase at approximately $153,615. We have therefore submitted a claim for SB 90 reimbursement of this amount. I am writing to you to enlist your Council's support in obtaining classifica- tion of this kind of benefit adjustment as a State mandated -cost which is reimbursable to cities. Attached is a sample resolution which we suggest be adopted and forwarded to Garry McRae, Human Resources Director of the City of Anaheim. We are preparing a very precise and detailed case to take before the State Board of Control. Your help will benefit all California cities which are members of the PERS system. Sincerely, JdHN SPY Mayor l JS/CC:bh Attachment 11, RESOLUTION NO. 8 2 - 3 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH SUPPORTING THE CLAIM OF THE CITY OF ANAHEIM FOR STATE -MANDATED COSTS ASSOCIATED WITH CHAPTER 1244, STATUTES OF 1980 WHEREAS; the City of Anaheim has filed a claim for reimbursement from the State of California for costs incurred in complying with Chapter 1244, Statutes of 1980, dealing with cost - of -living increases for retirees of a local agency contract with the Public Employees' Retirement System (PERS); and WHEREAS, said legislation was passed after the effective date of Article XIIIB of the California State Constitution also known as Proposition 4 which required, among other things, that the State must provide a subvention of funds to reimburse local government for costs of any new program or any increased level of service caused by legislation or State agency action; and WHEREAS, the City of Newport Beach has, or shortly will, incur costs to comply with the increased benefit requirements of Chapter 1244, Statutes of 1980; and WHEREAS, an option previously available to the City of Newport Beach has, in fact, been removed by Chapter 1244, Statutes of 1980; NOW, THEREFORE, BE IT RESOLVED that the Newport Beach City Council hereby declares its unanimous support for the claim of the City of Anaheim for reimbursement for costs associated with Chapter 1244, Statutes of 1980. ADOPTED this 8th day of March, 1982. Mayor Pro Tem ATTEST: City Clerk xiLt I hereby certify that the above and foregoing resolution was duly passed and adopted by the Newport Beach City Council at its regular meeting held on the 8th day of March, 1982, by the following vote, to wit: AYES: Hart, Plummer, Cox, Maurer Hummel NOES: None ABSENT: Heather, Strauss 2 t '44 City Clerk CITY OF NEWPORT BEACH CERTIFICATION OP. ELECTION 2% AT AGE 50 RETIREMENT PLAN 'We Kendall Jacobsen (Board Member) • Laurance Gibson (Board Member) • Acting as members of the Election Board having been duly appointed by the City Manager pursuant to Resolution No: 7„ 4L 7 adopted by the City Council on January 9, 1978, do hereby certify that we have tabulated all ballots submitted to vote at the close of the election on , •Q./q7q (Date)`/ at /Q: 30 •41'l , having taken place.at 7400 /iskwnzn PA2 (Time) ,t'au2r Bath; CBUF" (Location) and find the number of votes given for and ' against the election issue as follows: Shall the contributions of the local safety members of the City of Newport Beach be increased to provide 2% @ 50 benefits? YES: Regular Election Absentee Ballots Vote Total /7 / /a NO (Signature) Absentee ballots were tabulated in the Office of the City clerk on, RG V /G /5-7at /O So At.„..._andthe results entered in the (Date) (Tine) / totals above. • Dated: ® • / i0 5,ru407 zay sa2y MAY 14 1979 By it* CITY COUNCIL CITY OP siw'Or MAY u y 1979 By the 14111 COUNCIL art as AI r t.. CIq: OF NEWPORT BEACH .. OFFICE OF THE CITY MANAGER May 7, 1979 Agenda Item H - la TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT/MARINE SAFETY DEPARTMENT RECOMMENDATION: Introduce for first reading an ordinance to amend the contract between the City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System to include Section 21252.01 (2% AT AGE 50 RETIREMENT PLAN). DISCUSSION: Attached is Resolution No. 9548, dated April 23, 1979, by which the City Council notified the Board of Administration of the Public Employees' Retirement System of its intent to amend the retire- ment contract as specified above. The action recommended above is the next step required in the procedure prescribed by P.E.R.S. to amend the existing contract. The final step requiring City Council action, the second reading of the ordinance, will be placed on the agenda for the next Council meeting. Robert L. Wynn RLW/mf Attachments • Personnel RESOLUTION NO. 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 (CHP 2% AT 50 - OCEAN LIFEGUARDS) 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 submit 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 con- tract; and WHEREAS, the following is a statement of the proposed change: TO PROVIDE 2% AT AGE 50 RETIREMENT PLAN, PURSUANT TO SECTION 21252.01 OF THE RETIREMENT CODE, FOR OCEAN LIFEGUARDS 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 City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System, a copy of said amend- ment 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 23rd day of April , 1979. Mayor ATTEST: City Clerk DDO/kb 4/13/79 UENDiCNT TO CONTRACT BETWEEN THE BOARD OF AD1'INISTRATION PUBLIC E:0'LOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public after referred to as "Board", and the gov hereinafter referred to as "Public Agency under date of April 27, 1945, effective Ju /Spec$ "c.Retirememe ystem, herein- ' '10A' y Ba move public agency, i# entered into a contract 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, June 17, 1978, :March 24, 1979, 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 March 24, 1979, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. 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: a. b. c. d. Local Firemen (herein referred to as local safety members); Local Policemen (herein referred to as local safety members); Lifeguards on ocean beaches (included as local safety members); 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 PERS-CON-702-1 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 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. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). c. 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). d. 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). e. Section 20862.8 (providing service credit at retirement for unused sick leave), for miscellaneous members. 7. 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 alit provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. 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. (2) 0.282 percent on account of the liability for the 1959 Survivor Program. PERS-CON-702e) • • 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) 19.538 percent on account of the liability for current service benefits. (2) .004percent on account of the liability for the 1959 Survivor Program. 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. 9. 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 required by said Retirement Law. 10. 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 remittances, 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 shall be effective on the day of , 19 PERS-CON-7026) Witness our hands this day of BOARD OF ADMINISTRATION PUBLIC CIPLOYEES' RETIRE:ft:NT SYSTal OF THE e:t‘: 19 ' \ (-\;iy ‘4% BY u BY Carl J. 8lechinger, Executipel, f er'i.or4 V't Approved as to form: -k Presiding Officer Attest: Legal Office, PERS Clerk PERS -CON -70(±) • CITY OF NEWPORT BEACH Increased costs to the City of Newport Beach amending the Public Employees' Retirement System contract to provide 2% @ 50 Retirement Formula for Lifeguards. Safety Members Estimated annual P.E.R. expense before amendments $48,482.00 Estimated increase P.E.R.S. expense for: (Note 1) 2% @ 50 Retirement Formula for Lifeguards $ 2,205.00 Estimated annual P.E.R.S. expense providing 2% @50 Retirement Formual for Lifeguards $50,687.00 NOTE 1: The above estimate is based on the annual budgeted wages of Lifeguards for Fiscal Year 1979/80. 0_igoS N.irta/ . s2.5. MAY 14 1979 Sy the CM CWnt:1. CM OF lan- 4111, //YoS' mg 4 1979 By the Lola vVvan.:11- GITY OP! qerrs rho-, ORDINANCE NO. /for AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CHP 2% AT 50 - OCEAN LIFEGUARDS) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (CHP 2% at 50 - Ocean Lifeguards), is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A," and by out in Newport execute Beach. such reference made a part hereof as though herein set full. SECTION 2. The Mayor and City Clerk of the City of Beach are hereby authorized, empowered and directed to said amendment for and on behalf of the City of Newport (30) days SECTION 3. This ordinance shall be effective thirty after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the official newspaper of the City, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 14th on the day of May , 1979, and was adopted day of , 1979, by the following vote, to wit: AYES, COUNCILMEN 0.04O TII3 Adi y4 NOES, COUNCILMEN ABSENT COUNCILMEN Mayor ATTEST: City Clerk DDO/kb 4/30/79 -2- es Al.ENDLUNT TO CONTRACT BETWEZN THE BOARD OF ADIMINISTRATION PUBLIC EIPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH n r 4.P. T 1' :4°, The Board of Administration, Public ppl'oyees'i.Jetiremaii9'System, herein- after referred to as "Board", and the gove7rn 14.0j p,B*above public agency, hereinafter referred to as "Public Agency" • % irentered into a contract under date of April 27, 1945, effective Juji , 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, 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 March 24, 1979, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. 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: 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 PERS-CON-702-1 EXHIBIT q 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 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. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). c. Section 20930.3 (allowing public service credit under the provisions of Chapter 830, State. 1976, for up to four years of continuous military or merchant marine service). d. Section 21389 (providing that miscellaneous members not . covered by.Pederal 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). e. Section 20862.8 (providing service credit at retirement for unused sick leave), for miscellaneous members. 7. 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 a% provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. 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. (2) 0.282 percent on account of the liability for the 1959 Survivor Program. PERS-CON-70 EXHIBIT A 4. • 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) 19.538 percent on account of the liability for current service benefits. (2) .004percent on account of the liability for the 1959 Survivor Program. 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. 9. 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 required by said Retirement Law. 10. 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 remittances, 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 shall be effective on the day of , 19 PERS-CON-702(i) EXHIBIT A Witness our hands this day of , 19 BOARD OF ADMINISTRATION PUBLIC EIPLOYEES RETIRE:TENT SYSTVI OF THE " . A • iv‘ BY BY Carl J. Blechinger, Executiv6W4Icer' :C4Presiding Officer Approved as to form: Attest: Legal Office, PERS Clerk PERS-CON-70 EXHIBIT A .. ` it• • CITY OF NEWPORT BEACH Increased costs to the City of Newport Beach amending the Public Employees' Retirement System contract to provide 2% @ 50 Retirement Formula for Lifeguards. Safety Members Estimated annual P.E.R. expense before amendments $48,482.00 Estimated increase P.E.R.S. expense for: (Note 1) 2% @ 50 Retirement Formula for Lifeguards Estimated annual P.E.R.S. expense providing 2% @50 Retirement Formual for Lifeguards $ 2,205.00 $50,687.00 NOTE 1: The above estimate is based on the annual budgeted wages of Lifeguards for Fiscal Year 1979/80. Else 1 A • MAY I4 1979 SILVER, WELLS & KREISLER STEPHEN H. pips CITY COUi1.;1. SAMUEL J. W B A PROFESSIONAL LAW CORPORATION 11661 SAN VICENTE BOULEVARD, SUITE 1000 RICHARD IO CHARLES A. GOLDWASSER GEORGE W. SHAEFFER, JR. TELEPHONE (2131 626-3s67 DAVID M. AISO LOS ANGELES, CALIFORNIA 90049 April 16, 1979 Honorable Mayor and City Council City of Newport Beach 3300 Newport Boulevard Newport Beach, California 92660 Re: City's Consideration of Change from Social Security and its Effect Upon Beach Police Employees Association Honorable Mayor and City Councilmen: NORMAN S. SILVER SPECIAL COUNSEL OF COUNSEL HAROLD L. GREENE PERS to the Newport This office represents the Newport Beach Police Employees Association, a recognized employee organization. On April 16, 1979, we were advised by representatives of the Association that the City was considering a change in the current Public Employees Retirement System, with a possible conversion to the Social Security System. The Association further advises that the above consider- ation is in a preliminary stage without the Council having decided one way or the other, whether the conversion will be appropriate. At this time, and on behalf of the Newport Beach Police Employees Association, this office advises that should any such change in the retirement system be detrimental to the effected employees, then such change violates a constitutional prohibition against impairment of the obligations of contract. As indicated in the case of Stork v. State of California (1976) 62 Ca1.App.3rd 465, 468, "A change of retirement law which diminishes earned pension rights of public employees violates con- stitutional prohibitions against impairment of the obligations of contracts;the prohibition does not im- munize employees against all changes; modifications may be made in the earned pension rights of active employees if they are reasonable and related to the theory of a sound pension system and if changes detrimental to the individual are offset by comparable new advantages. The employee is entitled to no more and no less than preservation of the 'reasonable expectations' generated by the pension system." ❑ rx:var g ra.. O.Fog O Councl:men SILVER, WELLS & K REISLOP A PROFESSIONAL LAW CORPORATION • Honorable Mayor and City Council City of Newport Beach April 16, 1979 Page Two Therefore, the Newport Beach Police Employees Associ- ation advises that any changes in the retirement system must follow the guidelines set forth in Stork, supra. Furthermore, the City does have an obligation to engage in the meet and con- fer process before proposing any changes in the retirement system, even should such proposed changes be legally permissible. Therefore, should the Council ultimately decide that a change in the retirement system would be appropriate, the Council must submit a proposal to the Newport Beach Police Employees Association, in a timely manner, in order to have the matter fully explored during the meet and confer process. Should the Council or any other designated representative of the City desire to discuss this matter with this office or with other representatives of the Association, please feel free to con- tact either myself or other Association members. RMK:c cc: Sincerely, SILVER, Ric and M. Krei er Dennis O'Neil. City Attorney Doug Thomas, Pres. Newport Beach Police Employees Assoc. City Manager City of Newport Beach CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER COUNCIL AGENDA NO. II-2(c) TQ: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RESOLUTION OF INTENTION TO AMEND THE PUBLIC EMPLOYEES RETIREMENT SYSTEM (P.E.R.S.) CONTRACT - CITY RETIREMENT PLAN The Memorandum of Understanding between the City of Newport Beach and the Newport Beach Ocean Lifeguard Association, which was executed on July 1, 1977, and approved by Council provided that "Newport Beach agrees to amend its contract with the Public Employee Retirement System to provide for the inclusion of Section 21252.01 (of the Retirement Code) referred to as the 2% @ 50 retirement formula. The effective date of this Amendement will be June 30, 1979. . ." The Lifeguards are currently enrolled in the ONE-HALF PAY AT AGE 55 retirement plan, that is, a retiree with 20 years of service is entitled to a monthly unmodified retirement allowance of 50% of final compensation at the normal retirement age of 55. Mandatory retirement age is 65. The amended retirement plan, reduces normal retirement age to 50 and mandatory retirement to age 60. At age 50 a Lifeguard retiree is entitled to 2% per year of service. Thus, a Lifeguard who has twenty-five years of service at normal retirement age is entitled to a monthly unmodified retirement allowance of 50% of final compensation. The City's employer -contribution -rate for Safety Personnel will increase 0.850% s a consequence of this amendment. Robert L. Wynn RLW/bb;mf e z'3 1979 By the Cis( COUNCIL r.yry OR N4WPOR1 r - . ». RESOLUTION NO. 93 4 8 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 (CHP 2% AT 50 - OCEAN LIFEGUARDS) 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 submit 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 con- tract; and WHEREAS, the following is a statement of the proposed change: TO PROVIDE 2% AT AGE 50 RETIREMENT PLAN, PURSUANT TO SECTION 21252.01 OF THE RETIREMENT CODE, FOR OCEAN LIFEGUARDS 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 City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System, a copy of said amend- ment 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 23rd day of April , 1979. Mayor ATTEST: City Clerk DDO/kb 4/13/79 ANEEDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EtPLOYEES' RETIREIENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH • The Board of Administration,Public 8 e�'�; etitrem�`'.,�- '�� y_e eta yatem, herein- after referred to as "Board", and the gov �`` ' �if+bove public agency, hereinafter referred to as "Public Agency 04 entered into a contract under date of April 27, 1945, effective Ju 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, June 17, 1978, March 24, 1979, 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 starch 24, 1979, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. 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: 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 PERS-CON-702-1 u of Witness our hands this +vide day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETLREIENT SYSTEM OF THE BY ea% ckts BY Carl J. Blechinger, Execut erta Presiding Officer Approved as to form: .Attest: Legal Office, PE8S Clerk PERS-CON-702e) 5• op e CITY OF NEWPORT BEACH Increased costs to the City of Newport Beach amending the Public Employees' Retirement System contract to provide 2% @ 50 Retirement Formula for Lifeguards. Safety Members Estimated annual P.E.R. expense before amendments $48,482.00 Estimated increase P.E.R.S. expense for: (Note 1) 2% @ 50 Retirement Formula for Lifeguards $ 2,205.00 Estimated annual P.E.R.S. expense providing 2% @50 Retirement Formual for Lifeguards $50,687.00 NOTE 1: The above estimate is based on the annual budgeted wages of Lifeguards for Fiscal Year 1979/80. ‚/7 CITY OF NEWPORT BEACH April 18, 1979 STUDY SESSION NO. TO: CITY MANAGER FROM: PERSONNEL OFFICE SUBJECT: COUNCIL REQUEST FOR COST COMPARISON; PUBLIC EMPLOYEES' RETIREMENT SYSTEM VS. SOCIAL SECURITY SYSTEM The ten year period from fiscal year 1975/76 through fiscal year 1984/85 has been utilized in this survey(see attached cost comparison sheets). Relative to the Public Employees' Retirement System (PERS), all wages, rates and costs in the inital four years (through fiscal year 1978/79) are factual and provide the basis for the cost projections of the remaining six years. A 7;; yearly wage increase (Gross Pay) has been assumed, consistent with past experience. For purposes of this report no additional amendments of the PERS contract have been anticipated. Thus, rate increases from this source have not been incorporated. Projected PERS employer, contribution rate (City Rate) increases, which normally are based on retirement experience have been arbitrarily estimated, based soley on the rate change history of past years. It is possible that these increases will not occur. Contribution information is shown separately for Safety Personnel and Miscellaneous Personnel in the PERS data sheet, due to the different rates for each. A single rate is applicable to all employees under the Social Security System and thus the same format was not deemed necessary. Gross Pay for seasonal employees is included in the Social Security compari- son sheet and omitted from the PERS sheet since they are not enrolled in PERS. The decrease in the City Rate under PERS in 1977/78 to 8.131% is attributable to the City becoming "unpooled" and taking advantage of it's own better -than - other -pooled -members experience. The substantial rise in the Safety Personnel rate to 18.692% in fiscal year 1978/79 occurred as a result of the City amend- ing it's PERS contract to include the 2% at age 50 Retirement Plan for Policemen and Firemen. The City's total contribution for Miscellaneous Personnel (not shown separately) for the ten year period is $7,482,395. while the total contribution for Safety Personnel is $10,295,733. 2. • • Under the Social Security System contribution rates are applied to specified earnings in arriving at employer/employee contributions, e.g., 6.13% is the specified rate for 1979 and is to be applied against the first $22,900. of an employee's wages. Foreseeably, greater and more frequent rises in both the earnings level and contribution rates will occur, than was the case in the beginning years of this survey. To the extent that this occurs, costs under Social Secruity may give an understated impression relative to the immediate future. In researching codes pertaining to retirement systems the opinion of the Social Security Division of P.E.R.S. was sought regarding the possibility of the City entering into an agreement exclusively with the Social Security System. The attached response indicates such an agreement may be prohibited by Federal Law. The City Attorney has been asked to review the applicability of this law. A� . (CJd* a c?� �S't. r,.t C?. Wayne Schwammel Assistant to the.City Manager WS/mf PUBLIC EMPLOYEES' RETIREMENT SYSTEM Fiscal Gross City City Employee Employee Year Pay Rate % Contribution Total Rate % Contribution Total Grand Total.- 1975/76 Safety $4,181,334.. 9.527 $398,356. 6.5 $271,787. Misc. 5,466,868. 8.62 471,244. 869,600. 7.0 382,680. $654,467. $1,524,067. 1976/77 Safety 4,578,219. 11.027 504,840. 6.5 297,584. Misc. 5,923,922. 9.75 577,582. 1,082,422. 7.0 577,582. 875,166. 1,957,588. 1977/78 Safety 4,710,651. 11.635 548,084. 6.5 Misc. 6,309,328. 8.131 513,011. 1,061,095. 7.0 306,192. 441,652. 747,844. 1,808,930 1978/79 Safety 5,070,292. 18.692. 947,738. 9.0 456,326. Misc. 6,721,084. 9.177 616,793. 1,564,531. 7.0 470,475. 926,801. 2,491,332. 1979/80 Safety 5,424,212. 19.542 1,060,000. 9.0 488,179. Misc. 7,191,560. 9.427 677,948. 1,738,143. 7.0 503,409. 991,558. 2,729,701. 1980/81 Safety 5,804,977. 19.842 1,151,823. 9.0 522,448. Misc. 7,694,969. 9.727 748,490. 1,900,313. 7.0 538,647. 1,061,095. 2,961,408. 1981/82 Safety 6,211,325. 20.142 1,.2,51,085. 9.0 559,019. Misc. 8,233,618. 10.027 825,584. 2,076,669. 7.0 576,353. 1,135,554. 3,212,223. 410 1982/83 Safety 6,656,118. 20.442 1,360,644. 9.0 599,050. Misc. 8,809,970. 10.327 909,805. 2,270,449. 7.0 616,698. 1,215,748. 3,486,147. 1983/84 Safety 7,111,346. 20.742 1,475,035. 9.0 640.021. Misc. 9,426,668. 10.627 1,001,772. 2,476,807. 7.0 659,867. 1,299,888. 3,776,695. 1984/85 Safety 7,609,141. 21.042 1,601,115. 9.0 684,822. Misc. 10,086,535. 10.927 1,102,155. 2,703,270. 7.0 706,057. 1,390,879. 4,094,149. 17,743,299. 10,299,000. 28,042.229. SOCIAL SECURITY SYSTEM Fiscal Contribution Employer Employee Year Gross Pay Rate % Contribution Contribution Grand Total • 1975/76 $10,013,849. 5.85 $585,810. $585,810. 51,171,620. 1976/77 10,940,235. 5.85 640,004. 640,004. 1,280,008. 1977/78 11,434,975. 6.05 691,816. 691,816. 1,383,632. 1978/79 12,272,947. 6.13 752,332. 752,332. 1,504,664. 1979/80 13,132,054. 6.13 804,995. 804,995. 1,609,990. 1980/81 14,051,298. 6.30 885,232. 885,232. 1,770,464. 1981/82 15,326,084. 6.35 973,206. 973,206. 1,946,412. • 1982/83 16,398,910. 6.40 1,049,530. 1,049,530. 2,099,060. 1983/84 17,546,833. 6.42 1,126,507. 1,126,507. 2,253,014. 1984/85 18,775,112. 6.45 1,210,995. 1,210,995. 2,421,990. 8,720,427. 8,720,427. 17,410,854. 5 STATE OF CALIFORNIA—BOARD OF ADMINISTRATION EOMUND O. BROWN 112., Governor PUBLIC PLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 ToI.phone (916) 445-6987 Reply to Section SS-090 April 3, 1979 City of Newport Beach c,C.� Bill Brown, Personnel Officer 7.6, `; ;\-'•. \; 3300 Newport Boulevard ? .,.c ''1' '9 Newport Beach, CA 92663 1t2,t- ' re, CJ 9 4' Dear Mr. Brown: \ s' This is to confirm our telephone converse 146ch 27, 1979 regarding procedures for extending Social Security coverage to employees of the City of Newport Beach. Federal law prohibits a public agency from entering an agreement for Social Security after it has terminated Retirement System coverage. Social Security coverage for the City must be completed before any action is taken regarding the Retirement System. There are two methods by which coverage may be extended to City employees: 1) Coverage can be on an "all or none basis. All eligible members of the Retirement System would vote in a refer- endum. If a majority voted in favor of Social Security coverage, all employees occupying positions covered under the Retirement System would be covered under Social Secur- ity, including those who voted against doverage. Under these procedures, Social Security coverage is usually sup- plemental to the agency's present Retirement System. 2) Coverage can be on a "divided" basis. Under this procedure, each employee who is eligible for membership in the Retire- ment System on the division date would be offered an in- dividual choice as to whether he or she personally wishes to be covered under Social Security. All new employees would be covered under Social Security On the date they become eligible for membership in the Retirement System. This is the procedure usually followed by public agencies in the Public Employees' Retirement System. City of Newport Peach _y. April 3, 1979 Enclosed are procedures and the sections of Administrative Code which relate to both the referendum and the division procedures. Should you have additional questions regarding these procedures, please do not hesitate to contact our office. Very truly yours, ELLEN PATTERSON PROGRAM ANALYST SOCIAL SECURITY DIVISION EP:cr Encls. 7 • CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April 9, 1979 STUDY SESSION NO. 7 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: SOCIAL SECURITY VS. P.E.R.S. CONTRIBUTION RATES AND BENEFITS Several weeks ago, a member of the City Council requested a comparison between contribution rates and benefits of Social Security and the City's retirement system (P.E.R.S.). The Personnel Office has prepared the attached report, which gives the requested information. ►� weROBERT L. WYNN Attachment , 8 PERSONNEL OFFICE CITY OF NEWPORT BEACH March 30, 1979 TO: CITY MANAGER FROM: Insurance and Risk Manager SUBJECT: SOCIAL SECURITY VS. P.E.R.S. COMPARISON OF CONTRIBUTION RATES P.E.R.S. SOCIAL SECURITY EMPLOYEE EMPLOYER EMPLOYEE EMPLOYER Misc. 7% 9.427% *6.13% 6.13% of first $22,900 of gross pay (1979) Safety 9% 18.692% BASIC BENEFITS: P.E.R.S. Misc. (assume 25 years of service at age 60--unmodified benefit of representative manual labor position)= Unmodified benefit: $574.70/mo. Safety: .(assume 25 years of Service at age 50 representative police position)= Unmodified benefit: $790.00/mo. *Increase from 6.05% of first $17,700 wages in'1978 SOCIAL SECURITY (assume single person & maximum contribution to date)= $472.00/mo. add $236.00 if qualifying spouse at age 65, or approx. 20% less at age 62. The wife need not have also contributed to Social Security. CONVERSION TO SOCIAL SECURITY: (a) There will be a delay, after a municipal election affirms the conver- sion and Council acts to revoke the P.E.R.S. contract. (b) Retirement liabilities will be assessed by P.E.R.S. All enrollees who have retired, and all presently enrolled employees (after they elect to either withdraw their contributions or to remain as members) will be assessed in order to determine the amounts of funds needed, if any, to support present and eventual retirements. IMPACT: Employees who have not achieved 40 quarters (10 years) under the Social Security System will not qualify for retirement benefits under the Social Security System. CITY MANAGER Subj: Social Security Vs. P.E.R.S. Page 2 - 3/39/79 IMPACT: (Continued) There is no provision to transfer credits from P.E.R.S. to Social Security. Thus, these employees will be starting anew to accrue retirement credit. Employees with prior Social Security System credit, but who by virture of age would not be able to accrue 40 quarters by retirement age,would not be able to maximize benefits. BILL BROWN Insurance and Risk Manager CPPY OF NEWPORT "ACE 6/7 MEMORANDUM: From PERSONNEL 1,O City Clerk Feb. 14 79 , 19 SUBJECT: ORDINANCE 1794, ADOPTED BY COUNCIL 2-12-79 ENCLOSURES: (A) Amendment to Contract, Form 702 (in duplicate) (B) Ordinance, approving amendment Form PERS - CON-11 (in duplicate) with attached exhibit A. (C) Certification of Final Action by the Governing Body, Form PERS-CON-5. Please execute Enclosure (A). Note: Section B., Amendment effective date should be March 24, 1979, the first day commencing a bi-weekly pay period following the 30 days wait following adoption. Return the two originals, and one copy to this office. Please execute Enclosure (B). Note: Section 1, regarding Exhibit A attached. Mark enclosed exhibits accordingly. Please schedule the publishing of Ordinance per Section 3. Return one original and two certified copies to this office. Execute Enclosure (C). Return original and one copy to this office. Thank you. Safety & Insurance Admin. Attachments &..2_ 0-/72 `' Reply wanted ❑ Reply not necessary ❑ By Na-» CERTIFICATION OF FINAL ACTION OF GOVERNING BODY PUBLIC EMPLOYEES RETIREMENT SYSTEM P. 0. Box 1953 Sacramento, California 95809 I hereby certify: That the DATE: February 14, 1979 City Council of the City of Newport Beach (Governing Body) (Public Agency) adopted on February 12, 1979 , by an affirmative (Date) vote of a majority of the members of said Governing Body, Ordinance (Ordinance or Resolution) No. 1794 approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the Public Employees' System, a certified copyOrdinance - Retirement S y of said in the form (Ordinance or Resolution) furnished by said Board of Administration being attached hereto. 4 ,6 -A: C1er4f or Secretar City of Newport Beach Name of Agency PERS-CON-5 (Rev. 3/78) • • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OP THE CITY OF 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: 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 CON-702-1 4. The fractifl final compensation to be p ed for each year of credited prior and current service as a misce laneous 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 of credited prior and current service as be determined in accordance with Section Retirement Law (22 at age 50). 6. The fraction of final compensation to be Of credited prior and current service as be determined in accordance with Section Retirement Law (One-half pay at age 55), beaches. provided for each year a safety member shall 21252.01 of said provided for each year a safety member shall 21252.1 of said for lifeguards on ocean 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 commencing prior to age 55 subject to actuarial discount). c. Sections 21380-21383 (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- mentioned 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 accornt of the liability for the 195 i.vor 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) 18.692 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 lacy. d. A reasonable'amount as fixed by the Board, payable in one installuent 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. 13. 'Contributions required of Public Agency and its employees shall be subject to adjustment hy'Board on account of amendments to the Public:&aployeas' Retirement _Ica, and on account of the experience under the Retirement System as determined by the periodical investigation and valuation required by said Retirement Law. 11. Contributions required of Public Agency and its enployees.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 mount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or adjustments on account of errors in contributions required of any enployee nay he made by direct cash payments between to employee and the Board. Payments by Public Agency to Board nay be nada in the form of warrants, bank checks, hank drafts, certified checks, money orders, or cash. 2. This amendment shall be attached to said contract and shall be effective on the 24th day of March , 19 79 itaes.•i our hands tiis day of LjARD 07 A➢:iI_IISTRATIoN ,:_TLOYPLS' 11111-1, `T SYST : 'v Carl J. 21 c.; \ +,.roved as to form: CITY COTTCIL OP TH.: CITY 02 .?2 JPORT BEAC I , 19 BY4& :;:cecu iv Officer Presiding Off cer Attest: 1.•• 11. Cff'c=, '_3EP.S 1-14(0—Z l Clem CO4._702-3 Y �/7 p& o t 176 a rk¢C iuka 0--$4 4Ia179 JAN 22 1979 CITY OF NEWPORT BEACH FEB I2 1Q7Q OFFICE OF THE CITY MANAGE%%y the CITY COUNCIL By the CITY COUNCIL CITY OP M1MPORT BEACH CITY NEINPORT REACH January 22, 1979 TO: MAYOR AND CITY COUNCIL FROM: CITY MANAGER SUBJECT: RETIREMENT CONTRACT AMENDMENT Agenda Item 11-1 (a) RECOMMENDATION: Introduce for first reading an ordinance to amend the contract between the City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System to include Section 20930.3 (Military Service Credit) and Section 20862.8 (Sick Leave Credit.) DISCUSSION: Attached is Resolution No. 9494, dated January 9, 1979, by which the City Council notified the Board of Administration of the Public Employees' Retirement System of its intent to amend the retire- ment contract as specified above. The action recommended above is the next step required in the procedure prescribed by PERS to amend the existing contract. The final step requiring City Council action, the second reading of the ordinance, will be placed on the agenda for the next Council meeting. Robert L. Wynn RLW/ms Attachments JAN 22 1979 By the CITY coUiWCll CITY. OP wtto0RT BEACH FEB 12 197q caDewAgetC JNcm -� Q { cm OF NET• BEAU 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (MILITARY SERVICE CREDIT AND SICK LEAVE CREDIT) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (Military Service Credit and Sick Leave Credit), is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A" and by such reference made a part hereof as though fully set forth herein. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the official newspaper, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. 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 , 1979, and was adopted on the day of , 1979, by the following vote, to wit: • A` We ; O ISILMEN : NOES, COUNCILMEN: ABSENT COUNCILMEN Mayor ATTEST: City Clerk DDO/kb 1/15/79 -2- • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, 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 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 numbers 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 specifi- cally 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: 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); "A" 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. 4. The fraction of final compensation to be provided for each year of credited prior and current service as a miscella- neous 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 commencing 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). -2- 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 aforementioned 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. (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) 18.692 percent on account of the liability for current service benefits. c. The 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 required by said Retirement Law. -3- r • 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 remittances, or adjustments on accounts 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 shall be effective on the day of , 19 WITNESS OUR HANDS this day of BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH By By , 19 Carl J. Blechinger Presiding Officer Executive Officer APPROVED AS TO FORM: ATTEST: Legal Office, PERS City Clerk -4- JAM 81979 By the CITY COUNCIL cmnn0111 IMMOWN MACH CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER January 3, 1979 COUNCIL AGENDA NO. H-2(a) TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RESOLUTION OF INTENTION TO AMEND PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) CONTRACT - CITY RETIREMENT PLAN In October and November of 1978, the City council concurred in the wage/ benefit agreements with employee associations providing, in part, for amendments to the City's contract with PERS which will include the Sick Leave Credit provision for Miscellaneous Employees, and the Military Service Credit provision for Safety Personnel. The Sick leave amendment will permit additional service credit to an employee on retirement. Some benefit may be derived from a greater incen- tive toward sick leave accumulation. The Military Service amendment also permits additional service credit of up to four (4) years -toward retirement. Due to extreme costs to the employee who must 'pay back' both employee and employer contributions, few participants are anticipated. It is to be noted that this amendment was implemented last year for Miscellaneous Employees, without initial costs to the City due to the lack of an experience base. PERS has seen fit to assess a 2% rate, in the present case, in anticipation of experience that may not develop. Should minimum participation result, as expected,. the initial 2% rate will be reduced accordingly. Both contracts are consistent with Memorandums of Understanding with the employee groups. OBERT L. WYNN RLW:WB;jn RESOLUTION 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; 4 and WHEREAS, the following is a statement of the proposed change: l 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 City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System, a copy of saidamendment 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. 1979. ADOPTED this day of Januar ATTEST:' DDO/cr 12/29/78 6.1 CITY OF NEWPORT BEACH December 28, 1978 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. Safety Miscellaneous ,Members Members Total Estimated annual P.E.R.S. expense before amendments $ 851,500 $ 523,900 $1,375,400 Estimated increase P.E.R.S. expense for: (Note 1) Military service credit for Safety Members (Note 2) -0- -0- Unused sick leave credit for Miscellaneous Members -0- 14,300 14,300 Total Estimated Increased Expense -0- 14,300 14,300 Estimated annual P.E.R.S. expense providing Military service and unused sick leave credit $ 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. EXHIBIT r CITY OF NEWPORT BEACH MEMORANDUM: From Bill Brown Insurance Administrator TO....Dennis..0."Neil - City Attorney DECEMBER 27, 1978 SUBJECT: RESOLUTION OF INTENTION. . TO AMEND PERS CONTRACT; SECTION 20862.8 (SICK LEAVE CREDIT) FOR MISCELLANEOUS MEMBERS AND SECTION 20930..3 (MILITARY' SERVICE CREDIT) for SAFETY MEMBERS. Please prepare the subject Resolution for presentation to the City Council on January 8, 1979. Please forward copies of all documents generated, by your office, We will prepare a letter of explanation to the Mayor and City Council for the City Manager's signature. . The Finance Department by a copy of this memo will be asked to compute the costs associated with these amendments and to prepare a Statement of Increased Costs, to be attached as an exhibit to the Resolution.s.. Please note the en6losed Pntictpated Schedule of Agency Actions. Our interest is to shorten processing time.. This will depend in part, on how -rapidly PERS can respond. If the steps, commencing with the First Reading of Ordinance can be compressed in terms of time, please advise. Thanks. Attachments: PERS letter,chdtd., 12-21-78. Anticipated schedule of Agency Actions Sample Resolution with. attached statement of Costs Government Code Section 7507, Public Awareness of Amendment Costs ' Reply wanted p Reply not necessary d By N!- . ,Board of Administration Public Employees' Retirement System Sacramento, California The City of Newport Beach hereby requests the documents necessary (Name of Agency) • . to amend its contract with the Public Employees' Retirement System as shown in "A" below, A. Amendments desired: Section of Retirement Law SAFETY MEMBER - LIFEGUARDS Section 21252.01 !SAFETY MEMBERS - POLICEMEN, FIREMEN, LIFEGUARDS ;Section 20930.3 I �• B. Anticipated schedule' of 1, 12,:11-78 -74 2, 12\14/78 ;Vi Description of Benefit 2% @ 50 Fu11 Military Service Credit agency acti...... Adoption of Resolution of Intention to amend contract with the Public Employees' Retirement System. Employee Election.- 3. 2-, -79 /-22- 7' First reading of ordinance to adopt amendment to PERS contract, 4. 479 2 - (Z 77 Final reading of ordinance. (Must be at least 21 days �b after Resolution of Intention,) 3.y 5. 4-29 �--d'= 9 Effective date of ordinance_ 30 days after adoption. 6. 6-30-76 3 - - %y Effective date of PERS amendment. (Must be the first day of a payroll period subsequent to the effective date of the ordinance.) BY)( / /1 a n e1 L-! -r_ i ' . TITLE Assistant to the City Manager N., Date October 17, 1978 ococ_Art_? fni711 • STATE OF CALIFORNIA—BOARD OF ADMINISTRATION • EDMUND G. -BROWN JR., Governer PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Telephone (916) 445-6570 December 21, 1978 Mr. Bill Brown Safety & Insurance Administrator City of Newport Beach ' 3300 Newport Boulevard Newport Beach CA 92663 Dear Mr. Brown: Reply to Contracts Division We are enclosing two copies of Resolution of Intention (Form 122) to amend your agency's contract as follows: To provide Section 20862.8 (Credit for unused sick leave), for miscellaneous members and Section 20930.3 (Military Service Credit), for local safety members. Form CON -12,' Certification of Governing Body's Action and Form CON-12A, Certification of Compliance With Government Code Section 7507, are also enclosed. Chapter 941, Statutes of 1977 (Section 7507, Government Code), requires your governing body to make public the cost implications of the proposed contract amendment at least two weeks prior to the authorization of in- creased retirement benefits. When forwarding the executed Resolution of Intention documents, please include the enclosed Form CON-12A, Certifica- tion of Compliance With Government Code Section 7507. This must be com- pleted to verify that the requirements for publication of costs have been met. The facts that you must make public are: for miscellaneous members The rate for your agency without this (these) optional benefit(s) would be 9.177Z. Thus the change in cost of the optional benefit(s) is 0.250%, (9.427Z - 9.177%, see attached actuarial report). Apply these percentages • to the most current payroll figures for the next 12 months to compute the dollar amount. This percentage increase will apply to all member payrolls covered by this benefit (these benefits), until the year 2000. These are the cost figures which can be made public at the time the Resolution of Intention is adopted. Please note that the figures are subject to change in the future with any change in actuarial data. . The facts that you must make public are: for local safety members The rate for your agency without this (these) optional benefit(s) would be 18.692%. Thus the change in cost of the optional benefit(s) is 2.0007., (20.692% - 18.692%, see attached actuarial report). Apply these percentages to the most current payroll figures for the next 12 months to compute the dollar amount. This percentage increase will apply to all member payrolls covered by this benefit (these benefits), until the year 2000. These are the cost figures which can be made public at the time the Resolution of Intention is adopted. Please note that the figures are subject to change in the future with any change in actuarial data. City of Newport Beacn -2- December 21, 1178 As soon as we receive one executed copy of the Resolution of Intention (with attached exhibits), Certification of Governing Body's Action (Form CON-12), Certification of Compliance With Government Code Section 7507 (Form CON-12A), and any other required forms, we will forward additional copies of the amendment and the documents necessary to complete your governing body's final action. That final action will require an affirm- ative vote of the majority of your governing body and must be deferred for at least twenty days after the adoption of the Resolution of Intention. In summary, base documents must be returned to the office before we can forward final documents to you: (original signatures are required on all of these documents) 1. One executed copy of the Resolution of Intention (with attached Exhibits). 2. Certification of Governing Body's Action (Form CON-12). 3. Certification of Compliance With Government Cade Section 7507 (Form CON-12A). Effective date of the amendment cannot be earlier than the beginning of a payroll period following the effective date of the final action of your governing body. If you have any questions regarding this letter or the enclosed material, please do not hesitate to contact us. Yours truly, ?4ZL. Ellen H. Baltezore, D1 isiorl Chief Contracts Division EBB/land enclosures cc: San Diego Area Office 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 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 them- selves 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 resolu- tion 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 continuous military or merchant marine service), for local safety members, and Section 20862.8 (providing service credit at re- tirement for unused sick leave), for miscellaneous members. NOW, THEREFORE, BE IT RESOLVED, that the governing body of the above agency gives, and it does hereby give notice of intention to approve an amendment to the contract between the said governing body 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. BY (Name) (Title) (Date adopted and approved) Ret. Form 122 1 • CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the (Governing Body) of the (Name of Public Agency) on $ appearing at Page (Date) Volume of the (Minutes) (Official Records) of the (Governing Body) CITY CLERK or Secretary of the Board PERS-CON-12 (11/77) tWJJJC ..ule iuyaaa aeLL totem uysLem Post.Cf£ice Box 1953 Sacramento CA 95809 • • i CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary have been made public at a public meeting at least two weeks prior to the adoption of the increase in public retirement plan benefits as provided by the (optional benefit) which was adopted by the (legislative body) the on the Date: (public agency) (date) original signature official title PERS-CON-12A (9-78) AMENDMENT TO CONTRACT BETWEEN TH BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF 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: 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 CON-702-1 .4. The fractilkof final compensation to be divided for each year of • • credited. or and current service as a m ellaneous nember.shall be determined in'accordance with Section 21251.13 of said £.eMrement Law (2% at age 6U). 5. The fraction of final compensation to be of credited prior and current service as be determined in accordance with Section Retirement Law (22 at age 50). 6. The fraction of final compensation to be of credited prior and current service as be determined in accordance with Section Retirement Law (One-half pay at age 55), beaches. provided for each year a safety member shall 21252.01 of said provided for each year a safety member shall 21252.1 of said for lifeguards on ocean 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 commencing 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 m ember's death before retirement). d. Section 20930.3 (allowing public service credit under the provisions of Chapter 83U, Stets. 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- mentioned 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) 9 2 percent on account of the l bility for the 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) 20.692 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 required by said Retirement Law. 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 remittances, 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. 11, B. This amendment shall be attached to said contract and shall be effective oa the day of , 19 Witness our hands this BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT BY day of , 19 CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY Carl J. Blechinger, Executive Officer 4' L .fjPresiding Officer Approved as to form: *jest: Legal Office, PERS t Clerk CON-702-3 • t r s • 4XT Oigkdtvirn RESOLUTION NO. 9 44 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AGREEING TO PAY ONE-HALF OF MANAGEMENT EMPLOYEES' CONTRIBUTION TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM WHEREAS, management employees and key personnel contribute seven percent (7%) of their salary to the Public Employees Retirement System (PERS); and WHEREAS, the City Manager is recommending that the City pay one-half of the management employees' contribution to PERS for Fiscal Year 1978-79 and provide for an additional "floating" holiday; and WHEREAS, the City Council has reviewed the City Manager's recommendation and finds it to be appropriate, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby agrees as follows: 1. City shall pay one-half of the management employees' contribution (three and one-half percent [3-1/2%]) to PERS. Said management employees are designated on the attached list which shall also include the City Manager, City Attorney, and City Clerk and is made a part of this Resolution by this reference. 2. Said increased contribution shall be paid retro- actively to July 1, 1978, and shall continue for the remainder of Fiscal Year 1978-79. 3. City shall provide each management employee one "floating holiday" to fall on the employee's date of birth or • to be added to the employee's accumulatedvacation days, whichever is more convenient. ADOPTED this loth day of October , 1978. ATTEST: City Clerk May' o4r6- - 2- DDO/k 10/10/78 CITY OF NEWPORT BEACH PERSONNEL OFFICE DESIGNATION OF POSITIONS TO MANAGEMENT CATEGORIES Administrative Asst. Administrative Assistant to the City Manager Assistant City Attorney Assistant Community Development Director - Building Assistant Community Development Director - Planning Assistant to the City Manager Assistant to the Finance Director City Librarian Community Development Director Data Processing Manager Finance Director Fire Chief Fire Marshal General Services Director License Supervisor Library Services Coordinator Marine Director Marine Safety Chief P.B.R. Director Parks Supervisor • DESIGNATION OF POSITIONS TO MANAGEMENT CATEGORIES - CONTINUED Personnel Assistant Personnel Technician Police Chief Public Works Director Purchasing Agent Safety & Insurance Administrator Secretary to City Manager Tidelands Administrator Traffic Engineer Utilities Superintendent Utilities Director Budgeted Positions 32 , iliN72g1;C:7 4,701404a- 41, lir (1% /76 n Apt' / MAR 1.3 1978 FEB 1978 ��� w" CITY COUNCI . GP NI apt 1111ACH CITY OF NEWPORT BEACH By 1h. CatI CUUNCfi GTx fil! Wain Mail OFFICE OF THE CITY MANAGER February 27, 1978 Council Agenda y'�'� Item "tJ ILI f+• TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: 2% AT 50 RETIREMENT CONTRACT AMENDMENT RECOMMENDATION: Introduce for first reading an ordinance to amend the contract between the City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System to include Section 21252.01 (2% at age 50 benefits) for Policemen and Firemen. DISCUSSION: Attached is Resolution No. 9253 dated December 19, 1977, by which the City Council notified the Board of Admin- istration of the Public Employees' Retirement System of its intent to amend the retirement contract as specified above. The action recommended above is the next step required in the procedure prescribed by PERS to amend the existing contract. The final step requiring City Council action, the second reading of the ordinance, will be placed on the agenda for the next Council meeting. ROBERT L. WYNN City Manager RLW/bc Attachment • CITY ATTORNEY COPY 1 RESOLUTION NO. D 25 3 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 (CHP 2% AT 50) 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: Provides 2% at 50 benefits for safety 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 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 19th day of December , 1977. ATTEST: City Clerk Mayor DDO/bc 12/19/7" 0 4cto- ,.Z`. FEB 27 1978 By the CITY COUP4CB. CITY, OP IONOSIO WON MAR 13 1978 CITYOP CITY P COUNCIL ORDINANCE NO. /76,0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CHP 2% AT 50) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (CHP 2% at 50), is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 27th day of February , 1978, and was adopted on Witness our hands this day of , 19 • BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH sr BY Carl J. Blechinger, Executive Officer Presiding Officer Approved as to fora: Attests Legal Office, P Clerk Con. Fora 702-4 EXHIBIT "A" AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADiIINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF 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, and December 18, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective September 24, 1977, 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 fire and police 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: 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: AO ADDITIONAL EXCLUSIONS CON-702-1 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. Section 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 commencing 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, Stets. 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). 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- mentioned 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) 7.926 percent on account of the liability for current service benefits. CON-702-2 3 . (2) 0.205 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) 18.417 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 required 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 remittances, 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. fhis amendment shall be attached to said contract and shall be effective on the day of , 19 CON-702-3 4,` Witness our hands this day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES° RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH sr BY Carl J. Blechinger, Executive Officer Presiding Officer Approved as to form: Attest: Legal Office, P$IL5 �1-11-i7 Clerk Con. Form 702-4 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of Orange, } 55. I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above -entitled matter. I am the principal clerk of the printer of the Newport Harbor Ensign newspaper of general circulation, printed and pub- lished weekly in the city of Newport Beach, County of Or- ange, and which newspaper has been adjudged a news- paper of general circulation by the Superior Court of the County of Orange, State of California, under the date of May 14, 1951, CASE NUMBER A-20178 that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil). has been published in each regular and en- tire issue of said newspaper and not in any supplement thereof on the following dates to -wit: March 16, 23,1978 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at Newport Beach, California, this 24 day of Mar 19 78 Signature <\ . . a); •T . ,; 2721 E. Coast Hwy., Corona del Mar, California 92625. PROOF OF PL A PUBLIC NOTICE Proof of Publication of ORDINANCE NO, 1760 The Newport Ensign Thurs., March 23,1978 Page 27 PUBLIC NOTICE ORDINANCE NO. 1760 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE CITY COUN- CIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EM. PLOYEES' RETIREMENT SYSTEM (CHP 2% AT 50). The City Council of the City of Newport Beach DOES OR- DAIN as follows: SECTION 1. That an amend- ment to the Contract between the City Council of the City of Newpc,4t Beach and the Board of Administration, California Public Employees' Retirement System (CHP 2% at 50), is hereby authorized, a copy of said amendment being at- tached hereto, marked "Exhibit A", and such referen- ce made a part hereof as though herein set out in hill. SECTION 2. The Mayor and City Clerk of the City of of Newport Beach are hereby authorized, empowered and directed to execute said am- endment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adop- tion, and prior to the ex- piration of fifteen (15) days from the passage thereof shall be published at least once in the Newporet Harbor Ensign, a newspaper of general cir- culation, published and cir- culated in the City of Newport Beach, and thenceforth and thereafter the same shall be in hill force and effect. This Ordinance was in- troduced at a regular meeting of the City Council of the City of Newport Beach held on the 27th day of February, 1978, and was adopted on the 13th day of March, 1978 by the following vote, to wit': AYES COUNCILMEN: All NOES COUNCILMEN: None ABSENT COUNCILMEN: None EXHIBIT "A" AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH be determined in accordance with Section 21251.13 of said Retirement Law (2% at age 60). 5. The fraction of final com- pensation 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 com- pensation 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 Em- ployees' Retirement Law which apply only upon elec- tion of a contracting agency shall apply to the Public Agency and its employees: a. Section 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 com- mencing prior to age 55 sub- ject to acturial 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 Chap- ter 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 Sur- vivor Benefit when Public Agency added said benefit to its contract shall be given another opportunity to elect to be covered under the program). 8. Public Agency, in ac- cordance with Section 20740, Government Code, ceased to be an "employer" for purposes of Chapter 6 of the Public Em- ployees' Retirement Law ef- fective on September 24, 1977. Accumulated con- tributions of Public Agency as of the aforementioned date shall be fixed and determined as provided in Section 20759, Government Code, and ac- cumulated contributions as of the aforementioned date and The Board of Ad- ministration, Public Em- ployees' Retirement System, hereinafter referred to as "Board," and the governing body of above public agency, hereinafter referred to as "Public Agency," having en- tered into a contract under - date of April 27, 1945, ef- fective July 1, 1945, and as amended effective Marchy 1, - 1948, November 1, 1951, '' April 1, 1956, October 31, f4 1970, September 18. 1971, 3' December 11, 1971 Sep- ' tember 24, 1977, and Decem- x ber 18, 1977, which provides for participation of Public I: Agency in said System, Board and Public Agency hereby - agree as follows: A. Paragraph 1 through 10 are hereby stricken from said contract as executed effective September 24, 1977, and hereby replaced by the follow- ing paragraphs number 1 through 11 inclusive: 1. Al] 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 Iage 50 for local fire and police members, and age 55 for local lifeguards on ocean beaches. 2. Public Agency shall par- ticipate in the Public Em- ployees' Retirement System from and after July 1, 1945, making its employees as hereinafter provided, mem Laid System subject to all provisions of the Public Em- ployees' Retirement Law ex- cept such as apply only on election of a contracting agen- cy 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 mem- bers of said Retirement System except such in each such class as are excluded by law or this agreement: 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 4. The fraction of final com- pensation to be provided for each year of credited prior and current service as a miscellaneous member shall contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 9. Public Agency shall con- tribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall contribute the following percentages of mon- thly salaries earned as misceallaneous members of said Retirement System: (1) 7.926 percent on ac- count of the liability for current service benefits. (2) 0.205 percent on ac- count 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) 18.417 percent on ac- count of the liability for current service benefits. c. A reasonable amount per annum, as fixed by the Board to cover the costs of ad- ministering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodical in- vestigation and valuations required by law. d. A reasonable amount as fixed by the Board, payable in one installment as the oc- casions 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 em- ployees shall be subject to ad- justment by Board on account of the experience under the Retirement System as deter- mined by the periodical in- vestigation and valuation required by said Retirement Law. 11. Contributions required of Public Agency and its em- ployees shall be paid by Public Agency to the Retirement System within thir- ty days after the end of the period to which said con- tributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of con- tributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, or adjustments on account of errors in contributions required of any empolyee may be made by direct cash payments between the em- ployee 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 shall be effective on the 17th day of June, 1978. Publish: March 16, 23, 1978 in the Newport Harbor Ensign. 7 3ar, • JAN9 1978 GYAs CITY Cowie% OP SST MOH CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER January 9, 1978 Council Agenda Item H-2 (c) TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: ELECTION PROCEDURES FOR THE 2% at 50 RETIREMENT PLAN The City Council, at their meeting of December 19, 1977 approved a Resolution of Intention to amend the City Contract with PERS to accept the 2% at 50 retirement plan with regard to safety perwpnnO,t. Government Code Section 20457, relative to amending the contract, specifies that "The contract shall not be approved unless an election has been held to permit the employee's proposed to be included in the system to express by secret ballot their approval or disapproval of the retirement proposal." Section 20457 further specifies that "The election shall be conducted in the manner prescribed by the governing body..." It is recommended that the attached election procedure be approved by the Council through the adoption of Resolution No. Following the acceptance of these procedures and the approval of the amendment through the election process, the first reading of the ordinance to adopt the amendment will be scheduled. 'p/ Manager tur RLW:kb • • ELECTION PROCEDURES 2% AT AGE 50 RETIREMENT PLAN AMENDMENT TO CONTRACTN na:31 s't•' 4,"}t In the interest of affording employees the right to express approval or disapproval of this Retirement Amendment by secret ballot, and to promote confidence in the election results, the following procedures are set forth: ELECTION SCHEDULE Department Marine Department Police Department Fire Department Sta. ELECTION BOARD Place Personnel Office City Hall Auditorium, Police Station #2 Lido #1 Peninsula #6 Mariner's #5 Corona del Mar #4 Balboa Island #3 Newport Center Time 8:30 a.m. - 8:00 a.m. - 3:00 p.m. - 9:00 a.m. - 9:30 a.m. - 10:00 a.m.- 10:30 a.m.- 11:00 a.m. 11:30 a.m. Date 11:00 a,m. 1-17.78 12:00 a.m. 5:00 p.m. 9:20 a.m. 9:50 a.m. 10:20 a.m. 10:50 a.m. - 11:20 a.m. - 12:00 a.m. The Election Board will be constituted as follows: 1-17-78 1-17-78 (1-18-78 (1-19-78 (1-20-78 All 3 days at each Station. Election Representative: An Election Representative will be designated by the City Manager to oversee the balloting process. The Election Representative will act as custodian of the Ballot Box, and will be responsible for maintaining the security of executed ballots for each of the three separate elections as scheduled herein, and: (1) direct the activities of members assigned to assist in the conduct of the election; (2) set up a system of accountability that confirms each Safety Member's awareness of the election and ensures their opportunity to vote; (3) take steps to close the voting in the event of irregu- larities (in which case all records will then be returned to the Office of the City Manager for action as deemed appropriate); and (4) certify the outcome of the election to the Office of the City Clerk. Election Assistant: The President of the appropriate Employees' Association(s) or his designee will be called upon to assist the Election Representative in conducting the election, and these individuals will constitute the Election Board for their respective departments. Election Assistants will be asked to witness the balloting process, to identify each person who votes and to account for their ballot. They will be called upon to tabulate ballots and to certify the election results; witness the disposition of voting records at the conclusion of the balloting; and perform other tasks as may be assigned by the Election Representative. ELECTION OBSERVERS To the extent that differing interests in the election issue exist, Department Directors shall permit, on request, observers to witness the balloting process, but will limit them to representative numbers. Observers may lodge protests upon witnessing irregularities, but may not intercede in the balloting procedures. • • -2- NOTICE OF ELECTION Such notice shall be promulgated in sufficient time to ensure notifi- cation to all members entitled to vote, of the time, date and location that balloting is to take place. The notification will include a summary of major provisions of the 2% at Age 50 Retirement Plan, contribution rates, amounts now contributed by the individual member, and voting instructions. ABSENTEE BALLOTING Absentee balloting shall be provided members who are on authorized leaves of absence (vacation, sick leave, etc.). Ballots shall be mailed or delivered in properly addressed and sealed envelopes, containing: (1) a self-addressed envelope for return mailing; (2) a numbered ballot and Notice of Election; (3) a ballot envelope with the members name only, type- written in the upper left corner, which may be mailed or delivered by the voting member to the City Clerk in accordance with the appropriate election schedule. The City Clerk will release Absentee Ballots to the Board at the close of voting upon request. BALLOTING Ballots will be issued by the Election Board, to the voting member during the hours scheduled for balloting at the place of election. Ballots will be numbered, but not otherwise identified, and each ballot will be placed in double envelopes. The outer envelope will be addressed with the name of the voting member and include instructions to execute and seal the enclosed ballot in the inner, unmarked envelope for depositing in the Ballot Box. ELECTION BOARD PROCEDURES The Election Board will display an open and empty Ballot Box, in the presence of observers, immediately prior to the commencement of balloting. The Ballot Box will then be padlocked and the custody of the key given over to the Election Assistant until the close of voting. The Ballot Box will not be left unattended by the Election Representative at any time. In the case of an election schedule which requires Balloting on separate days, the Ballot Box shall be escorted by the Board to the City Clerk and placed in the care and custody of that office. The City Clerk will release the Ballot Box to the Board, all members being present at the time of release. Each member entitled to vote will be required to place their signature after their name on the Voter's Roster upon receiving their ballot. A notation or check mark by a member of the Board on the Voter's Roster will verify that the voting member has placed a ballot in the Ballot Box. The Board will tabulate ballots immediately upon the close of voting, in the presence of authorized observers, and will record the election results on a Certificate Of Election Form provided by the City Manager's Office. The Board will thereafter tabulate Absentee Ballots in the Office of the City Clerk and certify the results to the City Clerk, who will then post the official outcome of the election. A vote of 50% or greater by members expressing approval, will carry the election in favor of the Retirement Amendment. DISPOSITION OF RECORDS In the interest of preserving the integrity of voting records, should a recount subsequently be required, all ballots and related documents will be placed in sealed and marked envelopes or containers, in the presence of members of the Board, at the close of voting. The sealed envelopes will be transmitted along with the covering Certificate of Election Form to the City Clerk, who will store these documents until the effective date of the proposed Retirement Admend- ment, or until the resolution of any valid vote protest, whichever is later, after which, these documents having served their purpose, will be destroyed. • JAN 9 1978 By the CITY COUNCIL COY OPWONT RESOLUTION NO. 9 2 R 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ADOPTING CERTAIN PROCEDURES FOR CONDUCTING AN ELECTION TO DETERMINE IF THE CITY SHOULD AMEND ITS CONTRACT WITH THE PUBLIC EMPLOYEES RETIREMENT SYSTEM TO PROVIDE FOR THE 2% AT 50 RETIREMENT PLAN FOR PUBLIC SAFETY MEMBERS WHEREAS, the City of Newport Beach has entered into a Memorandum of Understanding with the Newport Beach Police Employees Association, the Newport Beach Fire Fighters Association, and the Newport Beach Ocean Lifeguard Association respectively; and WHEREAS, said Memoranda provide in part for an amendment of the contract with the Public Employees Retirement System (PERS) to provide for the inclusion of Section 21252.01 of the California Government Code, referred to as the 2% at 50 retirement formula; and WHEREAS, on December 19, 1977, the City Council adopted Resolution 9253 expressing its intent to amend the City's contract with PERS to include the 2% at 50 Retirement Plan for safety members; and WHEREAS, Section 20457 of the California Government Code provides that such a contract amendment shall not be approved unless an election has been held to permit the employees affected by said amendment to express by secret ballot their approval or disapproval of the retirement proposal; and WHEREAS, procedures for conducting said election have been prepared and attached to and made a part of this Resolution by this reference; and WHEREAS, the City Council has reviewed said election procedures and found them to be fair and equitable; 1 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newport Beach hereby adopts the attached procedures for conducting an election in compliance with California Government Code Section 20457. ADOPTED this 9th day of ATTEST: City Clerk sky vh January , 1978. Mayor DDO/bc 1/3/78 3, i • ELECTION PROCEDURES 2% AT AGE 50 RETIREMENT PLAN AMENDMENT TO CONTRACT In the interest of affording employees the right to express approval or disapproval of this Retirement Amendment by secret ballot, and to promote confidence in the election results, the following procedures are set forth: ELECTION SCHEDULE Department Marine Department Police Department Fire Department Sta. Place Time Personnel Office City Hall Auditorium, Police Station #2 Lido #1 Peninsula #6 Mariner's #5 Corona del Mar #4 Balboa Island #3 Newport Center 8:30 a.m. - 11:00 a.m. 8:00 a.m. - 3:00 p.m. - 9:00 a.m. - 9:30 a.m. - 10:00 a.m.- 10:30 a.m.- 11:00 a.m. 11:30 a.m. 12:00 a.m. 5:00 p.m. 9:20 a.m. 9:50 a.m. 10:20 a.m. 10:50 a.m. - 11:20 a.m. - 12:00 a.m. ELECTION BOARD The Election Board will be constituted as follows: Date 1-17,78 1-17-78 1-17-78 (1-18-78 (1-19-78 (1-20-78 All 3 days at each Station. Election Representative: An Election Representative will be designated by the City Manager to oversee the balloting process. The Election Representative will act as custodian of the Ballot Box, and will be responsible for maintaining the security of executed ballots for each of the three separate elections as scheduled herein, and: (1) direct the activities of members assigned to assist in the conduct of the election; (2) set up a system of accountability that confirms each Safety Member's awareness of the election and ensures their opportunity to vote; (3) take steps to close the voting in the event of irregu- larities (in which case all records will then be returned to the Office of the City Manager for action as deemed appropriate); and (4) certify the outcome of the election to the Office of the City Clerk. Election Assistant: The President of the appropriate Employees' Association(s) or his designee will be called upon to assist the Election Representative in conducting the election, and these individuals will constitute the Election Board for their respective departments. Election Assistants will be asked to witness the balloting process, to identify each person who votes and to account for their ballot. They will be called upon to tabulate ballots and to certify the election results; witness the disposition of voting records at the conclusion of the balloting; and perform other tasks as may be assigned by the Election Representative. ELECTION OBSERVERS To the extent that differing interests in the election issue exist, Department Directors shall permit, on request, observers to witness the balloting process, but will limit them to representative numbers. Observers may lodge protests upon witnessing irregularities, but may not intercede in the balloting procedures. 4. -2- NOTICE OF ELECTION Such notice shall be promulgated in sufficient time to ensure notifi- cation to all members entitled to vote, of the time, date and location that balloting is to take place. The notification will include a summary of major provisions of the 2% at Age 50 Retirement Plan, contribution rates, amounts now contributed by the individual member, and voting instructions. ABSENTEE BALLOTING Absentee balloting shall be provided members who are on authorized leaves of absence (vacation, sick leave, etc.). Ballots shall be mailed or delivered in properly addressed and sealed envelopes, containing: (1) a self-addressed envelope for return mailing; (2) a numbered ballot and Notice of Election; (3) a ballot envelope with the members name only, type- written in the upper left corner, which may be mailed or delivered by the voting member to the City Clerk in accordance with the appropriate election schedule. The City Clerk will release Absentee Ballots to the Board at the close of voting upon request. BALLOTING Ballots will be issued by the Election Board, to the voting member during the hours scheduled for balloting at the place of election. Ballots will be numbered, but not otherwise identified, and each ballot will be placed in double envelopes. The outer envelope will be addressed with the name of the voting member and include instructions to execute and seal the enclosed ballot in the inner, unmarked envelope for depositing in the Ballot Box. ELECTION BOARD PROCEDURES The Election Board will display an open and empty Ballot Box, in the presence of observers, immediately prior to the commencement of balloting. The Ballot Box will then be padlocked and the custody of the key given over to the Election Assistant until the close of voting. The Ballot Box will not be left unattended by the Election Representative at any time. In the case of an election schedule which requires Balloting on separate days, the Ballot Box shall be escorted by the Board to the City Clerk and placed in the care and custody of that office. The City Clerk will release the Ballot Box to the Board, all members being present at the time of release. Each member entitled to vote will be required to place their signature after their name on the Voter's Roster upon receiving their ballot. A notation or check mark by a member of the Board on the Voter's Roster will verify that the voting member has placed a ballot in the Ballot Box. The Board will tabulate ballots immediately upon the close of voting, in the presence of authorized observers, and will record the election results on a Certificate Of Election Form provided by the City Manager's Office. The Board will thereafter tabulate Absentee Ballots in the Office of the City Clerk and certify the results to the City Clerk, who will then post the official outcome of the election. A vote of 50% or greater by members expressing approval, will carry the election in favor of the Retirement Amendment. DISPOSITION OF RECORDS In the interest of preserving the integrity of voting records, should a recount subsequently be required, all ballots and related documents will be placed in sealed and marked envelopes or containers, in the presence of members of the Board, at the close of voting. The sealed envelopes will be transmitted along with the covering Certificate of Election Form to the City Clerk, who will store these documents until the effective date of the proposed Retirement Admend- ment, or until the resolution of any valid vote protest, whichever is later, after which, these documents having served their purpose, will be destroyed. DEC I9 1977 CITY OF NEWPORT BEACH By the city y COUNC1I CITY Ol NIVIPORT MACH OFFICE OF THE CITY MANAGER December 19, 1977 CITY COUNCIL No. H-2(f) TO: MAYOR AND CITY COUNCIL FROM: City Manager RESOLUTION OF INTENTION TO AMEND PUBLIC SUBJECT: EMPLOYEES RETIREMENT SYSTEM (PERS) CONTRACT The City Council, on August 22, 1977, approved the implementation of the 2% at 50, or California Highway Patrol Retirement Plan for the members of the Safety Classifications. This Classification includes Police, Fire and Lifeguards. The adoption of Resolution No. , which is a Resolution of Intention to Amend the City's PERS Contract would initiate the implementation of that plan. (44 ROBERT L WYNN RLW:GJB:ib eta- asesteee.p. • • DEC 19 1977 By As CITY COUNCIL CITY OF NIWOORT YBACH RESOLUTION NO.. 9253 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 (CHP 2% AT 50) 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: Provides 2% at 50 benefits for safety members. y) 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 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, and by this reference made a part hereof. ADOPTED this 19th day of December , 1977. Mayor ATTEST: City Clerk DDO/bc 12/16/77 AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF 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 and December 18, 1977, which provides for participation of Public Agency: in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective September 24, 1977, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. b Co 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945, making its employeesas 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: 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 • Con. Form 702-1 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 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. Section 20019.3 (providing for inclusion of'lifeguards on ocean beaches as local safety members). b, roviding for age 50 as the mini' retirement age for iota .:v-- .• st*" th benefit payments or to age 55 subject to actuarial • sco c. Section 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, Stets. 1976, for up to four years of continuous military or merchant marine service). e. Section 21298 (providing increased non -industrial disability retirement allowances of up to fifty -percent of final compensation to members retiring after the effective date of the amendment). 7. 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- mentioned date and contribution thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. 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 nemoers of said Retirement System: (1) 7.926 percent on account of the liability for current service benefits. (2) 0.205 percent on account of the liability for the 1959 Survivor Program. Con. Form 702-2 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) 18.417 percent on account of the liability for current service benefits. (2) 0.000 percent on account of the liability for the 1959 Survivor Program. 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 coats 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. 9. 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 required by said Retirement Law. 10. 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 negotiation. If more or leas than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, 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 shall be effective on the day of , 19 Con. Form 702-3 • • Witness our hands this day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES} RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH .BY BY Carl J. Blechinger, Executive Officer Presiding Officer Approved as to form: Attest: Legal Office, PERS Clerk Con. Form 702-4 • • INCREASED COSTS TO THE CITY ATTENDANT TO AN AMENDED CONTRACT WITH PUBLIC EMPLOYEES' RETIREMENT SYSTEM PROVIDING THE 2% AT ACE 50 FORMULA FOR SAFETY PERSONNEL POLICE FIRE MARINE TOTAL Estimated 1977-78 P.E.R.S. Safety Members Expense (Current Fiscal Year) $307,901 227,304 24,012 559,217 1978-79 Increased Cost Due To Rate Increase, *63.52% $195,578 144,383 15,252 355,213 Estimated 1978-79 P.E.R.S. Safety Members Expense Based on 1977-78 Salaries $503,479 371,687 39,264 914,430 NOTE: THE ABOVE ESTIMATE DOES NOT INCLUDE ANY PROVISION FOR POSSIBLE SALARY ADJUSTMENTS WHICH MAY BE NEGOTIATED AT MID -YEAR. AS A GUIDE, A ONE PERCENT SALARY ADJUSTMENT WILL INCREASE THE P.E.R.S. SAFETY MEMBERS EXPENSE BY $9,144. *The rate increase at 7.39% represents a 63.52% increase in expenses over the Fiscal Year 1977/78 figure. -/7 .-4 /f a —7 "4y OCT 25 1977 M sh. CITY COUNCIL COY OP 111101147 MOH NOV 141977 bah, WYMW1011 BEACH CITY. MACH Office of CITY MANAGER October 25, 1977 TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL E-3 Council Agenda Item FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT ORDINANCE RECOMMENDATION: Adopt an Ordinance authorizing an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System (PERS) to implement the provisions of Section 21389 of the Government Code (1959 Survivors Benefit). DISCUSSION: The City contracted with the Public Employees Retirement System (PERS) for the 1959 Survivors Benefit provision on December 11, 1971, under a compelling Act of the State Leigslature. During initial enrollment, employees were given the option of accepting or rejecting this provision. Thereafter, all new employees were to be enrolled automatically. Certain employees, such as have derived no advantage, will provide an additional obtain this protection for RLW/bc unmarried persons, who would initially elected not to enroll. The Amendment opportunity for these employees to their families. B RT L. WYNN City Manager OCT 2. 1977 h sh. CITY COUNCIL CITY OF ISOM, WAN • NOV 14 1977 CM OP L ORDINANCE NO.�RO� 7- �v AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (ADDITIONAL CHOICE TO ELECT THE 1959 SURVIVORS BENEFIT) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (Additional Choice To Elect The 1959 Survivors Benefit), is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , 1977, and was adopted on 4 6 the day of , 1977, by the following vote, to wit: ATTEST: City Clerk AYES, COUNCILMEN: NOES, COUNCILMEN: ABSENT, COUNCILMEN: Mayor DDO/bc 10/19/77 AFFIDAVIT OF PUBLICATION NEWPORT HARBOR ENSIGN STATE OF CALIFORNIA County of Orange S SS. I, ARVO E. HAAPA , being first duly sworn, and on oath depose and say that I am the printer and publisher of the Newport Harbor Ensign, a weekly newspaper printed and published in the City of Newport Beach, County of Orange, State of California, and that the ORDINANCE NO. 174!. of which copy attached hereto is a true and complete copy, was printed and published in the regular issue(s) of said newspaper, and not in a supplement, 1 consecu- tive times: to -wit the issue(s) of Nov. 24., 1977 (Signed) Subscribed and sworn to before me this 21.1-thday of November Notary ublic in and for the County of Orange, State of California. ntinulmmmmmmitum ilmwo mmmum imiummunnnnmminumnnamamy OFFICIAL SEAL MARY A. HAAPA NOTARY PUBLIC CALIFORNIA PRINCIPAL OFFICE IN , ORANGE COUNTY My Commission Expires Dec. 20, 1979 s immmw1ouuunuuunm uu uuannuumum,unu,munnu,uuuuuuumonnnunun mr PUBLIC NOTICE ORDINANCE NO, 1756 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIRE- MENT SYSTEM (ADDI- TIONAL CHOICE TO ELECT THE 1959 SURVIVORS BENEFIT) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Admin- istration, California Public Employees' RetirementSys- tem (Additional Choice To Elect The 1959 Survivors Benefit), is hereby author- ized, a copy of said amend- ment being attached hereto, marked '`Exhibit A", and by such reference made a part hereof as though here- in set out in full. SECTION 2. The mayor and City Clerk of the City of Newport Beach are here- by authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordi- nance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen(15).days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of gen- eral circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was intro- duced at a regular meeting of the City Council of the City of Newport Beach held on the 25th clay of October, 1977, and was adopted on the 14th day of November, 1977, by the following vote, to wit: AYES, COUNCILMEN: Dos- tal, Barret, Kuehn, McInnis, Rogers, Ryckoff, Williams, NOES, COUNCILMEN: None. ABSENT COUNCILMEN: None. Milan Dostal Mayor ATTEST: Doris George City Clerk Publish: Nov. 24, 1977, in the Newport Harbor Ensign. CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER October 11, 1977 • Council Agenda Item H-2 (a) TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT RESOLUTION RECOMMENDATION: Adopt a Resolution of Intention to approve an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System (PERS) to implement the provisions of Section 21389 of the Government Code (1959 Survivors Benefit). DISCUSSION: The City contracted with the Public Employees Retirement System (PERS) for the 1959 Survivors Benefit provision on December 11, 1971, under a compelling Act of the State Legislature. During initial enrollment, employees were given the option of accepting or rejecting this provision. Thereafter, all new employees were to be enrolled automatically. Certain employees, such as unmarried persons, who would initially have derived no advantage, elected not to enroll. The Amendment will provide an additional opportunity for these employees to obtain this protection for their families. Upon receipt of this Resolution of Intention and following certain ruutine procedures and time limits prescribed by law, the second document, an ordinance, will be prepared by PERS and forwarded for first and second readings at subsequent Council meetings. ROBERT L. WYNN City Manager RLW: rnm Co / 7 2-92.o2 404, • /7 RESOLUTION NO. 9202 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 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: Provides 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. 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 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, and by this reference made a part hereof. ADOPTED this llth day of October , 1977. ATTEST: City Clerk Mayor DDO/bc 9/28/77 9/ S a ate.." a l_ 11 1977 By the CITY COUNCIL CITY OF NEWPORT BEACH CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER -/eSp P , July 11, 1977 ivide d '.9i7 By : a i'.+ CoU. I L CITY c.)F T B:.A,CH ; + TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL • Council Agenda Item 404400 FROM: City Manager By ' --SMUT: RETIREMENT CONTRACT AMENDMENT RESOLUTION RECOMMENDATION: Adopt a Resolution of Intention to approve an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System (PERS) to include Section 20930.3 of the Government Code (military service credit) for miscellaneous members. DISCUSSION: Chapter 830 of Statutes of 1976 amended Section 20930.3 of the Government Code to permit miscellaneous members of PERS to receive a credit as "public Service" for up to 4 years of continuous military or merchant marine service upon payment of employer and employee contributions and interest by the employee. The proposed amendment of the PERS contract extends this retirement benefit to miscellaneous employees. Upon receipt of this Resolution of Intention and following certain routine procedures and time limits prescribed by law, the second document, an ordinance, will be prepared by PERS and forwarded for first and second readings at subsequent Council meetings. The Council will recall that this Amendment was agreed to during the negotiation process with the Professional & Technical Employees Association. ROBERT L. NN City Manager RLW:kb tAxh C�� • • 4 RESOLUTION NO. 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 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 change: WHEREAS, the following is a statement of the proposed Provides service credit under the provisions of Chapter 830, Statutes 1976, for up to four years of continuous military or merchant marine service for persons who are members because of employment by Public Agency 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 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, and by this reference made a part hereof. ADOPTED this llth day of July , 1977. ATTEST: Mayor City Clerk DDO/bc 7/6/77 1977. By The C T? COUNCIL co of gUiWPQRT S AQH By ORiSYNAtfCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of 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 A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , 1977, and was adopted on the day of , 1977, by the following vote, to wit: AYES, COUNCILMEN: NOES, COUNCILMEN: ABSENT, COUNCILMEN: Mayor ATTEST: City Clerk DDO/bc 7/26/77 AMEND ENT TO CONTRACT BETWEEN THE BOARD Cr ADMINISTRATION PUBLIC EEPLO' a r' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT B A.CH The Board of Administration, Public Employees' Retirement System, hereinafter eferred to as Board and the.City Council of the City of Newport Beach, hereinafter eferred to as Public Agency having entered into a contract under date of April 27, 945, effective July 1, 1945, and as amended effective Narch 1, 1948, November 1, 951, April 1, 1956, October 31, 1970, September 18, 1971, and December 11, 1971, rhich provides for participation of Public Agency in said System, Board and Public lgency hereby agree as follows: A. Paragraphs 1 through 11 are hereby stricken from said contract as executed effective October 1, 1970, and are hereby replaced by the following para- graphs numbered 1 through 10 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 55 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945, making its employees as herein— after provided, members of said system subject to all provisions of the Public Employees' Retirement Taw 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 provision thereof apply only on the election of contract— ing 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: 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 (herein referred to as local safety members). d. Employees other than local firemen and local policemen (herein referred to as miscellaneous members). The following classes shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS Exhibit "A" ..en.....waw....�. .. .sv ....a�.r a_.•.>.w.=v...ya .a. r. a......:.s..ss A.+� n..sL➢tiAn.YA�..au.�uvu'1� • • ..c .v.:tuci• <sr.• S. 4. The fraction of final compensation to be provided for each year of credited prior and current service as a miscellaneous member upon retirement at normal retirement age shall be as provided in Section 21251.13 of said Retirement Law. 5. The fraction 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 21252.1 of said Retirement Law. 6. Public Agency, in accordance with Section 20740, Government Code, shall cease to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective as of the effective date of this amendment to this contract. Accumulated contributions of the Public Agency as of the date of such amendment shall be fixed and determined as provided in Section 20759, Government Code, and such accumulated contributions and contributions hereafter made shall be held by the Board as provided in Section 20759, Government Code. 7. The following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 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 commencing prior to age 55 subject to actuarial discount). e. Section 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 (providing service credit under the provisions of Chapter 830, Stats. 1976, for up to four years of continuous military or merchant marine service for persons who are members because of employment by Public Agency) for miscellaneous members. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 0 percent until June 30, 2000 on account of the liability for prior service benefits. (2) 7.926 percent on account of the liability for current service benefits. (3) 0.205 percent on account of the liability for the 1959 survivors program. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned as local safety members of said System: (1) 0 percent •il June 30, on account ogle liability for prior service benefits. (2) 11.635 percent on account of the liability for current service benefits. (3) 0 percent on account of the liability for the 1959 survivors program. c. A reasonable amount per annum, as fixed by Board to cover the costs of administering said Syutea as it affects the employees of Public Agency, not including the costs of special valuations or the periodical investigations and valuation required by law, provided that said amount shall be determined on the basis of the number of employees of Public Agency who are reported as members of a payroll designated by the System covering one month of each year, or with respect to the first year of participation, on the effective date of said participation. d. A reasonable mount as fixed by the Board, payable in one install- ment as the occasions arise, to cover costs of special valuations on account of employees of Public Agency, and costs of the period- ical investigation and valuation required by law. 9. 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 experience under the Retirement System, as determined by the periodical investigation and valuation required by said Retirement Law. 10. 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. if more or less than the correct amount of contribution is paid for arty period, proper adjustment shall be made in connection with subsequent remittances or adjustment on account of errors in contributions required of any employee rgay be made by direct cash payments between the employee and Board, ayments by Public Agency to Board m y 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 cent act and Ashall be effec- tive on the o silot., day of rL/ 4-t- J /7 7 7 fitness our hands this , z s G day of G _ u k i, / BOARD OF AO.LiidISTRA`PION CITY COUNCIL ' PURT.TC EMPLOYEES' RETIRE r NT SYSTEM OF CITY"OF REWPORT BE • ut jS/ Carl J. Blechinger, Executive Officer Approved as to form: Legal Office, PEES BY 'siding Officer Ret. Form 702-3 A a Cc • • UL.111977 By tho Ci Pe COUNCIL CITY OF WhYPQ*T BEACH RESOLUTION NO. &it' 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 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 change: WHEREAS, the following is a statement of the proposed Provides service credit under the provisions of Chapter 830, Statutes 1976, for up to four years of continuous military or merchant marine service for persons who are members because of employment by Public Agency 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 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, and by this reference made a part hereof. ADOPTED this llth day of July , 1977. ATTEST: Mayor City Clerk DDO/bc 7/6/77 6/7 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER December 13, 1976 STUDY SESSION NO. ,' T0: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: REPORT CONCERNING CALIFORNIA'S PUBLIC RETIREMENT SYSTEM Periodically, individual members of the City Council have submitted queries about the financial condition of the California State Retirement System which provides coverage for the City's em- ployees. Approximately two months ago the Council commissioned a study relative to this City's participation in the State Retirement System and the possibility of either modifying this system or join- ing another system for the City's employees. Recently much has been printed in the newspapers concerning the costs of various re- tirement and pension plans. Last week I received a report from the California Taxpayers Association analyzing and auditing the California State Retirement System. I have duplicated eight pages of this report which contains the basic findings and conclusions. The entire report is available in my office if any member of the Council would wish to review it. The consultant, currently doing the report on the City's Retirement System, is approximately ninety percent through with his report. He should submit the report within thirty days for review and action by the City Council. In the meantime, I thought the at- tached material would be interesting background material preparatory to receiving the City report. The attached is intended for information only. RLW:mm Attachment ROBERT L. WYNN THE CALIFORNIA PUBLIC PENSION SYSTEM California's system of public employee retire- ment is actually several independent systems which administer benefits. 1. The Public Employees' Retirement System has about 550,000 active members and over 100,000 retired members. In fiscal 1974-75 the system col- lected $1.164 billion in income and paid out nearly $357 million in benefits. Coverage in PERS is mandatory for all full-time state employees except legislative employees whose. participation is optional. In addition, 35 counties, 324 cities, and 542 school and special districts contract with PERS for coverage. There are two broad categories of membership: public safety employees (police, fire, and related classes) and miscellaneous employees (all others). School mem- bers of PERS are so-called classified employees, which basically means those who do not have a teaching certificate. At the state level, the employer's contribution rate ranges from 11.67% of salary for miscellaneous employees to 17.04% for safety and 30.17% for patrol members (an enriched form of safety member- ship). The employees' share ranges from 5% to 8% of salary. At the local level contributions are varied, but are generally similar to comparable state job classes. 2. The State Teachers' Retirement System has over 250,000 active members and about 65,000 re- tired members. In fiscal 1974-75 the system collected $630 million in income and paid out $305 million in benefits. All certificated teachers belong to the sy- tem, whose benefits are set by the Legislature and whose employer costs are paid from both state and school district funds. Teachers contribute 8% of salary while local school districts are on a schedule which also requires 8% by 1977-78. The state's sup- port has been a flat $135 million per year since 1972 but this will increase by $57.6 million in 1976-77, $79.5 million in 1977-78, and $101 million in 1978- 79, due to AB 2009 of the 1976 session. 3. The 1937 Act County System includes the following 20 counties: Alameda Contra Costa Fresno Imperial Kem Los Angeles Marin Mendocino Merced Orange Sacramento San Bernardino San Diego San Joaquin San Mateo Santa Barbara Sonoma Stanislaus Tulare Ventura A rule of thumb in analyzing this system is that Los Angeles County accounts for about half the total membership and costs. The Los Angeles system has 85,000 active members and 17,000 retired mem- bers. In calendar 1974 the system collected $182 million and paid out $97 million in benefits. An approximate doubling of these figures would give a total for the entire 20 county membership. Like PERS, the 1937 Act County System includes both safety and miscellaneous members, and employer -employee contributions vary by job class and by jurisdiction. 4. Independent Local Systems include the following: COUNTIES with Self-administered Systems or Private Insurance Contracts 3 Counties Trinity County City and County of San Francisco San Luis Obispo County CITIES with Systems 12 Cities Ceres Emeryville Fresno Los Angeles (City Employ- ees, Fire and Police, Water and Power) Self-administered Retirement Mill Valley Oakland (Fire and Pico Rivera Piedmont Sacramento San Diego San Jose Sunnyvale CITIES with Private Retirement Systems 38 Cities Anderson Avalon Belvedere Chowchilla Coalinga Concord Corcoran Corning Costa Mesa Delano Exeter Filimore Fowler Garden Grove Guadalupe King City Kingsburg Las Puente Los Gatos Insurance or Police) Trust Madera Manteca Maywood Mendota Monterey Park Needles Ojai Parlier Paso Robles Pismo Beach Placerville Porterville Salinas San Clemente San Juan Capistrano Taft Turlock Walnut Creek Yreka Fund We have not compiled data for membership, income, and benefits paid for these fifty-three sys- tems. They range from some of the most generous, generally in the largest cities, to those with the lowest benefits, generally in the smallest cities, of any public agencies in the state. The state has two special systems whose mem- bership is limited to legislators and judges. The legis- lators' system covers members of the Senate and Assembly and other elective officers whose offices are provided for in the Constitution (except for judges), and the Chief Clerk of the Assembly, Sec- retary of the Senate, and the Sergeants -at -Arms of the Asserribly and Senate. Legislators and constitutional officers contribute 4% of salary it elected prior to March 4, 1975 and 8% of salary if elected after that date. Legislative statutory officers contribute 6%% of salary if elected prior to the above date and 8% if elected after that date. In June 1975 the system had 193 active and inactive members and 139 retired members. It collected $1.5 million and paid out $1.07 million in 1974-75. The Judges' Retirement System covers all judges of municipal and superior courts, district courts of appeal and the Supreme Court of California. Partici- pation is mandatory upon becoming a judge in any of the above named courts. The Judges' Retirement Fund receives income from four sources: 1. Active member contributions equal to 8% of their gross salary. 2. State (employer) contributions equal to 8% of gross salary. 3. The proceeds from a fee of $3.00 for filing of first papers of plaintiffs and defendants in superior courts and $2.00 for similar filings in municipal courts. 4. If the State Controller determines there are insufficient funds to pay retirement allowances and other obligations of the fund in the ensuing year, he reports to the Legislature an amount needed by the system to meet its current liabilities. The Legislature is obligated by law to appropriate that amount. The system had 937 active and inactive mem- bers and 486 retired members in June 1975. It col- lected $10.3 million and paid out $9.5 million in 1974-75. The University of California has a separate re- tirement system which has not been examined in this report. Perhaps more revealing than the absolute num- bers is trend data showing growth over a number of years. Over the last decade, the two biggest systems shape up like this: The Public Employees' Retirement System has increased its active membership by 60% and its re- tired membership by about 275%. Contributions to the fund (excluding interest earnings) ten years ago came 53.8% from employers (taxpayers) and 46.2% from employees. Today, employers provide 63.2% and employees, 36.8%, a relative shift onto taxpayers of about $80 million in 1974-75. Together, em- ployers and employees in that year put in $791 mil- lion, almost three times the $273 million they contri- buted a decade earlier. The State Teachers Retirement System has grown more slowly in membership, reflecting the lack of growth in school attendance. The number of sys- tem retirees doubled, over the 1965-75 decade. Fund support comes from the state, from local school dis- tricts, and from teachers. The state share has bounced around due to a peculiar funding history which relied on annual appropriations that were quite consistent as a percentage of fund income until the 1972 fiscal year. Reform legislation caused the state to cap its contribution in 1972 rather than pay the huge costs projected under the existing method. Overall, the state's share in a decade had decline from 26.3% to 21.4% of the total, a relative shift of about $32 mil- lion in 1974-75. The local share was hiked from 21.1% to 30.0%, or a shift of about $60 million onto school districts. Teachers, who had long carried an abnormally large part of the cost, put in 48.6% in 1974-75 vs. 52.6% a decade earlier. This equals relief to them of $25 million. Total contributions from all three sources rose from $202 million to $630 million over the ten year period, while benefits also tripled from $96.6 million to $304.7 million. California's public employee retirement funds show the following broad trends: 1. The number of retired members is increasing faster than the number of active members. 2. Benefits paid are increasing at least as fast, and sometimes faster, than fund income. Both are growing at rates far in excess of increases in the num- ber of public employees. 3. The share paid by employers is increasing while the share paid by employees is declining. 4. Inflation is boosting interest on the funds' in- vested assets, but it is also boosting salaries on which future pensions will be computed. Inflation's impact on current pension is less because many public em- ployees are limited to a maximum 2% or 3% annual cost -of -living adjustment. PUBLIC EMPLOYEES RETIREMENT SYSTEM Selected Data Total Total % of % of Total Total Active Retired Employer Total Employee Total Total Benefits Contracting Members Members Contributions Contributions Contributions Contributions Contributions Paid Agencies • 1965-66 350,283 38,230 $146.8 53.8 $126.0 46.2 $272.8 $ 79.5 503 1966-67 366,560 42,130 163.0 53.4 142.3 46.6 305.3 89.8 553 1967-68 385,061 46,355 187.1 54.8 154.3 45.2 341.4 99.3 604 1968-69 409,350 51,438 218.6 56.0 171.9 44.0 390.5 117.8 640 1969-70 425,668 57,986 248.9 56.5 191.8 43.5 440.7 133.7 670 1970-71 433,426 62,623 273.7 56.7 209.2 43.3 482.9 144.6 715 1971-72 463,326 72,571 298.8 57.5 221.0 42.5 519.8 182.9 743 1972-73 481,250 82,870 347.1 56.8 263.8 43.2 610.9 220.4 804 . 1973-74 500,209 91,618 389.8 58.3 278.5 '41.7 668.3 262.0 850 1974-75 535,786 100,321 500.1 63.2 291.0 36.8 791.1 311.2 901 Source: Legislative Analyst Figures in millions of dollars. l STATE TEACHERS RETIREMENT SYSTEM Selected Data Total % of School % of % of Total Retired State Total District Total Employee Total Total Benefill Members Contributions Contributions Contributions Contributions Contributions Contributions Contributions Paid 1965-66 30,802 $53.2 26.3 $42.7 21.1 $106.2 52.6 S202.1 1966-67 32,424 56.2 25.6 46.4 21.2 116.7 53.2 219.3 1967-68 35,493 69.3 27.5 51.1 20.3 131.2 52.2 251.6 $124.6 1968-69 37,599 74.3 26.8 55.3 20.0 147.4 53.2 277.0 138.5 1969-70 40,159 81.8 27.0 58.6 19.4 162.1 53.6 302.5 150.0 1970-71 42,930 87.1 26.6 64.0 19.5 177.0 53.9 328.1 162.0 1971-72 46,172 21.2 7.7 69.0 24.9 186.5 67.4 276.7 177.. 1972-73 53,371 135.0 28.0 99.6 20.6 248.4 51.4 483.0 246.5 1973-74 56,161 135.0 24.5 140.9 25.6 275.5 49.9 551.4 279.7 1974-75 61,701 135.0 21.4 189.0 30.0 306.3 48.6 630.3 304.7 Source: STRS 61st and 62nd Annual Report to The Governor and Legislature Figures in millions of dollars. SUMMARY OF FINDINGS AND RECOMMENDATIONS In past years, pension enrichments have seemed. to be an attractive altemative to granting salary hikes demanded in public employee bargaining. The attraction lies in the delayed fiscal impact of retirement benefits. Typically, it is the next generation of politicians and taxpayers who must footthe bill for commitments made in the past. Today we in California have become the "next generation." In a recent four year period, current pension costs rose 38096 in medium-sized cities and 348% in large cities. Cal -Tax estimates that at least two-thirds of the $22 billion state -local budget total goes to employee salaries and benefits. Public employee retirement now absorbs more than one out of five state and local tax dollars. Full Disclosure To protect the soundness of public retirement sys- tems in the face of cost increases we recommend full disclosure of financial conditions annually. We also recommend that "actuarial assumptions" —projections of inflation, life expectancy, and other factors influ- encing pension costs and revenues — be clearly defined and regularly updated to insure sound projections. Cost Evaluations A major cause of today's massive unfunded liabilities has been adoption of benefit hikes in the past without projecting costs or specifying sources of financing. We recommend that these data be required before enrichments are adopted by a governing body. Cost data should be on a multi -year basis showing the climb until the proposed benefit is in full operation. The Legislature should have data on costs, revenue sources, and employer -employee shares of contribution when it adopts enrichments affecting state employees or teachers, whose pensions benefits are financed from the general fund. City and county governing bodies should have estimates available for the cost of "local option" provisions authorized by the Legislature which are activated by vote of a city council or board of supervisors. In addition, "local option" bills whose provisions are clearly excessive should be refused passage by the Legislature, in line with the practice of the last two Governors, who have vetoed many such measures. Sound Funding Most of Califomia's major public pension sys- tems are short of income in comparison to the commit- ments made to pay pension benefits. These unfunded liabilities (actuarial deficits} are increasing without proper controls in all too many cases. The State Teach- ers Retirement System is about $6 billion in deficit, the Public Employees Retirement System is more than $5 billion in deficit, and the small systems for Legis- lators and Judges are $15 million and $110 million short. Large local systems are similarly underfunded — by $1.7 billion in the case of Los Angeles City's police and fire pension fund. In 1974 a State Senate subcom- mittee estimated that of our $31 billion projected li- ability to public employees, only $11 billion is covered by current assets while $20 billion represents an un- met obligation. -vi- Failure to fund benefits leads to the granting of excessive enrichments and shifts the cost burden to future generations. Furthermore, lack of early income means that retirement funds lose interest eamings. this loss leads to a crushing level of current outlays when a system is fully "mature" and is paying out maximum benefits. Immediate payoff of the $20 billion deficit would involve a destructive tax burden. The con- sensus view of pension experts is that each fund should be on a schedule which would enable it to pay its liabilities within 30 years. This is the stand- ard applied to private funds through the Federal Employees Retirement Income Security Act of 1974. We believe the same requirement should cover California's state and local public pension plans. Uniform Benefits We recognize that the "local option" process is an ingrained part of local collective bargaining and we prefer "local option" to state mandating of enrich- ments. For these reasons we have addressed the issue of reforming rather than abolishing "local option." However, there must be a recognition that the maze of varying provisions conflicts with the goal of stand- ardizing benefits which both PERS and STRS has • • urged. The ultimate goal is a basic and uniform set of provisions which are changed only by an annual cost - of -living adjustment. Such a system would end the process of "leapfrogging." As a first step toward rational uniformity, we urge that annual inflation ad- justments be standardized for all public employees within each system, rather than having a few job classes receive a full cost -of -living hike while others are limited to as little as 296 annually. Total Compensation Retirement benefits are only one form of emplo- yee compensation. In the bargaining process, both employer and employee representatives treat pension hikes and other enrichments in a "tradeoff" situation. We endorse the "Total Equivalent Compensation" (TEC) approach used by the state, and recommend its adoption by local governments. TEC takes into ac- count the combined value of all salary and benefit income in making public -private sector comparisons. We urge that the integrity of the TEC process not be undermined by "end run" bills introduced in the Legislature containing uncoordinated benefits for state workers, or by failure to make and utilize accurate comparisons. Public pensions are designed to let govemment workers retire on an adequate income. We believe there is no justification for excluding the value of a pension from any tax -supported source in computing the amount due from other public sources. The goal is income adequacy, not double payment. We also believe a pension equal to 75% of the highest three years' consecutive compensation should be a ceiling. Pension income is partly tax-free and retirement saves certain costs related to work. The practical effect of a 75% pension is to provide purchasing power which can exceed that derived from working income. Safety Retirement We believe special attention must be given to the cost of safety retirement. In order to encourage a young average age among police and firemen, en- riched pension plans have been created which en- courage early retirement. These plans appear to have gone beyond necessity. Safety personnel receive high average salaries. They also receive pensions which are a higher percentage of salary than other employees retiring at the same age. A state patrol member or 7937 Act safety member can receive 75% of salary retiring at age 55 with 30 years service, while a teach- er or general worker age 60 with the same period of service will get only 60%. A PERS state or local safety member can retire at age 55 or later with 70% of salary after 35 years, and some 50 PERS contract- ing local agencies have adopted the 2% at age 50 formula. In large Califomia cities, safety retirees pen- sions are double — roughly $700 per month — those for other public workers. Safety retirement costs are escalating at an ex- plosive rate, We believe four steps must be taken to prevent these costs from becoming a fiscal drain which could short-circuit property tax relief as well as deny adequate funding for other public pension plans. First, expansions of new job classes in the safety member category should be capped and the 2% at age 50 formula should be abolished for new employ- ees. Second, the safety retirement formula should not be liberalized beyond providing 2% at age 55 with 30 years service. Such a benefit at a younger age, or with less service, is prohibitively costly. Third, local gov- emments should pursue development of "career ern- ployment" plans enabling some safety personnel to leave hazardous work in their fifties and finish their career with the city or county in a non -strenuous post.This would reduce the rate of artifically early re- tirements. Finally, public retirement plans should not provide a guaranteed income for persons who want two careers. Safety members who retire to a second job should have an offset, of 50 cents to 75 cents per dollar earned, applied against their safety pen- sions at least until the age of 60. Disability Retirement Disability retirement is also growing explosively, and police and firemen seem to be the main cause. Utilization of this enriched form of retirement grew by 110% in a recent five-year period even when ad- justed for benefit increases, inflation, and growth in the labor force. Safety disability costs have risen at more than twice the overall rate. Increasingly, the cause of retirement has been "cumulative trauma" complaints such as back injuries. Generous benefit formulas encourage both malingering and "second • • career" abuse. The time has come to tighten up eli- gibility determination and benefit formulas for dis- ability retirement. Benefit Rollbacks Public reaction against excessive pension plans for government workers has risen especially when generous benefits contribute to a local fiscal crisis. Voters are beginning to approve rollbacks in retire- ment programs. But the courts have held these roll- backs can apply only to future employees. In Oak- land, for example, a policeman or firefighter hired on June 30, 1976 can look forward to a pension worth 30% more than someone hired by the city to the same position on July 1, 1976, because of the effec- tive date on a city ballot proposition. The freeze of existing benefits neither creates equity within the public labor force nor is it fair to taxpayers seeking relief from past over -commitments. We recommend a constitutional amendment to per- mit a phased rollback in pension rights of current employees of up to 1% per year remaining in their working life, where such a rollback is needed to equalize their benefits with those adopted for future employees. The 1% limit would mean that persons about to retire would not be affected while others would have a chance to plan ahead. Further, the re- duction could only occur to the extent needed to create equity among employees with respect to pen- sion rights. Employee Contributions Public pension plans are funded by contribu- tions from employer and employees, and from inter- est earnings. In an inflationary economy, interest earnings have soared. But the benefit of this income has been realized almost entirely by employees in the form of a steadily dwindling percentage of support to pension funds from worker contributions, and a high- er fund payout of inflated benefit dollars. The em- ployer has hardly been relieved by the massive rise in investment income. This benefit should be more evenly shared between taxpayers (employers) and future fund recipients (employees). We also believe the reduction or abolition of employee contributions to their own retirement plan is likely to encourage excessive and irresponsible demands for enrichment. Retirement Formula The service retirement formula determines the dollar value of a pension. It is based on final salary multiplied by a percentage based on years of service. This formula must be protected in three ways. First, pensions based on full-time work should not be ex- tended to part-time employees. Second, extensive credits should not be given for work with other em- ployers, particularly when the work was unrelated. Third and most important, "final compensation" should be computed over at least the highest three- year period. Using a single high years' pay creates the potential for abuses. Retirement Boards In some local jurisdictions, it is not the elected goveming body but a retirement board which makes key decisions on extension of benefits. We believe the city council or board of supervisors should make the binding commitment. If a retirement board has substantive power, we urge that in order to prevent a conflict of interest by beneficiaries, no more than one-third of its membership be composed of active or retired members of the pension plan. Fund Assets Finally, numerous cases exist where pension fund assets have been used by public agencies as a source of low -interest loans for capital financing and other purposes. At times high risk has also been in- volved, as in New York where pension funds have been used to stave off default. We believe low interest and high risk constitute "raiding" of the public's and the retirees' stake in these funds. We urge that by legal provision pension fund assets be managed to earn the highest rate of retum consistent with safety. SACRAMENTO ADDRESS STATE CAPITOL 93814 TELEPHONE( (918) 445.5931 • CHAIRMAN SENATE REPUBLICAN CAUCUS DISTRICT ADDRESS P.O. Box CC IRVINE. CA 02716 (7I4) 557.3200 DENNIS E. CARPENTER ORANGE AND SAN DIEGO COUNTIES CALIFORNIA LEGISLATURE V o4 May 12, 1976 JUN 141976 By the CITY COUNCIL CITY OF !+!1T REACH Mr. Robert Wynn City Manager, City of Newport Beach Newport Beach, CA 92660 Bob, COMMITTEES ELECTIONS AND REAPPORTIONMENT FINANCE INSURANCE AND FINANCIAL INSTITUTIONS JUDICIARY JOINT COMMITTEES REVISION OF THE ELECTIONS CODE COMMISSIONS COMMISSION OF THU CALIFORNIAS BOARDS WILDLIFE CONSERVATION BOARD Thank you for your recent telegram in which you comment on Senate Bill 1644 by Senator Robbins, re- lating to Public Safety Officers. For your information, this bill passed the Senate Committee on Public Employment and Retirement on May 4th. Inasmuch as I am not a member of that committee I have not had occasion to hear the arguments on the bill. On first reading, however, I do note that it states that the provisions are advisory only and are not mandatory on any of the entities involved. In any case, Bob, when the bill comes before us on the Senate floor I shall keep your comments of opposition in mind during the debate and prior to casting my vote. Thank you again, Bob, for your interest in this legislation on behalf of the City of Newport Beach. DES E. CARPENTER Senator, 36th District DEC:M1 fi-veki 6/7 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 10, 1976 STUDY SESSION NO. er TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The attached correspondonce from the California State Public Employees' Retirement System was received by the City on April 30, 1976. The attached explains that the actuarial survey recently concluded by the Retirement System will result in an automatic 1% increase in the employer contribution rate for Miscel- laneous members of the City and a 1 1/2% increase for Safety members. This means that an additional $118,260 in the Retirement Fund and $3,780 in the Water Fund will be required in the 1976-77 fiscal year budget. The budget submitted to you during April does not con- tain this automatic increase. RLW:nm ROBERT L. WYNN k_ Attachment • • STATE OF CALIFORNIA—BOARD OF ADMINI RATION • EDMUND G. BROWN JR„ Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 T.lephene (916) 445-5147 April 19, 1976 Reply to Section 020 TO: CONTRACTING PUBLIC AGENCIES SUBJECT: EMPLOYER CONTRIBUTION RATE FOR SAFETY )(EMBERS EFFECTIVE JULY 1, 1976 Employer Contribution Rate Effective July 1, 1976 the employer contribution rate for your safety members will be that underlined on the attached report. That rate is the result of the recent periodic actuarial valuation conducted as of June 30, 1975 and based on the benefits currently being provided by your contract with this System. Valuation Fee In the past the policy of the System ha's been to bill the agencies for the costs involved in the periodic valuations. However, for this particular valuation the System will waive the fee. The System will continue to bill the agencies for any. future additional valuations which you may request based on the current fee schedule of $100 flat plus $1.00 per each active and inactive employee for each report. Information and Background The Board of Administration Of the Public Employees' Retirement System at its April 1975 meeting in San Diego adopted new actuarial assumptions to be used in connection with the actuarial valuations conducted by the System: The actuarial interest rate was changed to 6% (from 5 3/4%). New salary scales assuming a 9% increase in salaries per year for the first 5 years of employment and a 4% per year increase thereafter were adopted. Other changes were made in assumptions affecting retirement costs, such as withdrawal rates, rates of retirement at various ages of both service and disability, death rates, etc. You will recall that our May 12, 1975 letter advised you that in order to maintain the integrity of the Public Employees' Retirement Fund, the Board of Administration approved the Staff's recommendation that employer rate increases resulting from the June 30, 1975 valuation should be implemented in steps at the rate of 10 per year for safety members for three years commencing July 1, 1976, subject to future valuations. We anticipate conducting a valuation as of June 30, 1976 to review the rates. Under the Public Employees' Retirement Law member contribution rates do not change because of the changes in assumptions and experiences. The result of the attached valuation indicates that the total increase in your agency's safety contribution rate requires more than i%%. This means that there will be an additional adjustment in 1977. However, if your agency wishes to pay the ultimate rate on July 1, 1976 so that there will be no further adjustment because of the change in actuarial assumptions, please use the rate directly above the underlined rate on the report. In the event we do not hear from you, we will assume that the effective rate on July 1, 1976 will be the underlined rate. KISUK YANG CHIVY ACTUARY Attchment: EDMUND C•. C.r.!OWN IP., Cov rr.or STATL OF CALIFORNIA- nom) OF An:MINIS PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. 60X 1953 SACRAMENTO, CALIFORNIA 95609 Telephone (916) 445-5,L4.7— April 19, 1976 Reply to Sec. 020 Agency Name: City of Newport Beach Agency No.; 60 SUBJECT: EMPLOYER CONTRIBUTION RATE FOR MISCELLANEOUS 1U1BERS EFFECTIVE JULY 1, 1976 Effective July 1, 1976, the employer contribution rate for your miscellaneous member group will be as follows: Present Pate (current & prior service) 8.67%, New Rate Effective July 1, 1976 9.67% Valuation Fee In the past the policy of the System has been to bill the agencies for the costs involved in the periodic valuations. however, for this particular valuation the System will waive the fee. The System will continue to bill the agencies for any future :additional valuation, which you may request based on the current fee schedule of $100 flat plus $1.00 per each active and inactive employee for each report. Information and Backr.round The Board of Administration of the Public Employees' Retirement System at its April 1975 meeting in San Diego adopted new actuarial assumptions to be used in connection with the actuarial valuations conducted by the System. The actuarial interest rate was changed to G% (from 5-3/4%). New salary scales assuming a 9% increase in salaries per year for the first 5 years of employment and a 42 per year increase thereafter were adopted. Other changes were made in assumptions affecting retirement costs, such as crithdretr_i rates, rates of retirement at various ages for both service and disability, death rates, etc. You will recall that our May 12, 1975 letter advised you th.,t in order to maintain the integrity of. the Public Employees' Retirement Fund, the £card of Administration approved the Staff's r&cou';aendation that employer rate incrc ryes resulting from the June 30, 1975 valuation :should be imps(;n ntcd in steps at the rate of 1Z per year for misce.11aneou, rerbcer groups for three years cohreecing July 1, 1976 subject to future valuations. We ant:icipcte conducting a valuation as :of .lunc 30, 1976 to review the rates. Under the Public Employees' Retirement Lr.•.., member contribution rates do not change because of the changes in assumptions and experiences. 1. SUt YANG CHIEF ACTUkY 1 i PUdL1C E;SPLOYEES RETIREMENT SYSTL4 ACTU4P.IA $ALUAIIGN F+R SAFETY MtBt OF NEWPORT BEACH CITY ER. 60 AS OF 7/ 1/1975 CURRENT SERVICE NORMAL COST $ 323262. UNFUNDED LIAB $ 2866664. PRIOR SERVICE UNFUNDED LIAB $—50241. DEATH 1ENEFITS NORMAL COST $ 23C2 0 UNFUNDED LIAB $ —23:60 1959 SURVIVt:R [ENO NORMAL COST $ —15160 UNFUNDED LIAB t—314740 TOTAL TOTAL TOTAL TOTAL TOTAL EMPLOYER RATE EFFECTIVE 7/ 1/1.970 EMPLOYER RATE EFFECTIVE• 7/ PRESENT EMPLOYER RATE ANNUAL PAYROLL AS OF VALUATION MEMBERSIHIP LATA AS OF VALUATION ACTIVE 239. INACTIVE 31e RETIRED 36 f'o2252 2.918.E 0.0 $ 0.059% 060 ft 0.0 Z OoO % 11 o143R 0.0 :7. 0.059; O.0 n 11 202Z 1/1976 MINIMUM 1.1.027% 9.527g $ 393O283c a ANNUAL COST $ 44027% • gl� s STATE OF CALIFORNIA—BOARD OF ADMINISTRATION EDMUND G. BROWN JR., Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Telephone (916) 445-6570 City et Newport Bush, City Bali.). 3300 Newport BooSenra Newport Beach* CIA 9E663 The amendment to the contract between your agency and the Public Employees' Retirement System has been executed by our office. A copy of the contract as amended is enclosed for your file. Ellen H. Baltezore Chief Contracts Division Enclosures RECEIVED PERSONNEL \- e MAR. 2 6 1979i- 0.177 of /Q i NEWFIil BEACH, 0111F. / iy .l.N • 4•, AMEBEININT TO CONTRACT BETWEEN THE BOARD 0P ADMINISTRATION PUBLIC IMPLORERS' RETIES= SYSTEM AND THE CITY COUNCIL OP TEE CITY OP NEWPORT BRACE The Board of Aeminiatratisu, Public Employees' Retirement system, herein- after referred to as "Board", and the governing body of above public agency, hereinafter referred to is "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 Jena 17., 1978, and hereby replaced by the following paragraphs comber 1 through 11 inclusive; 1. A11 words and terms used herein which are defined in the Public Employees' Retirement Leas shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 60 for miscellaneous mashers 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 es by express provisions thereof apply only on the election of contracting agencies. 9. Employees of Public Agency in the following cleans shall become members of said Retirement System except such is each each class as are excluded by law or this agreement; a. Local Firemen (herein referred to as local safety members); b. Local Policemen (herein referred to as local safety numbers); 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 of employees excluded from membership by said Rbteremeett , following classes of employees shell not becalm members of said Retirement Systeme NO ADDITIONAL EXCLUSIONS CON-702-1 • < • • RECEIVED- ‘.24cfRi.r•L- !API • ; • • RE rIPEMP, Ifs 5 ii32A1itti5 • (2) 0.2 cent on account of the 'Sabi* for the 1959 Ivor Program. b. With respect to local safety members, the ageney shall contribute the following percentages of monthly salaries earned as local safety members of said Retirement Systems (1) 18.692 percent on account of the liability for current service benefits. a. 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 spacial valuations or of the periodical investigation and valuations required by law. 4. A reasonable amount as fixed by the Board.. payable in one installment as the occasions arise, to cover the costs of special valuation on *taunt of esployess of Public Agency, and costa of the periodical investigation and valuations required by law. 10. Contributions required of Public Agency and its aiplayees shall be subject to adjustment by Board on account of ascents to the Public Employees' Retirement Law, and on aacoamt of the experience under the Retirement System as determined by the periodical investigation and valuation required by said Retirement Law. 11. Contributions rewired 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 say be prescribed by Board regulation. If more or lass than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances* or adjustments on account of errors in contributions required of any employee say be made by direct cash imamate between the employee and the Board. Payments by Public Agency to Board say be ends in the form of aansnts, lank checks, bask drafts, certified checks* coney ordera..or cash. Be This awed sent shell be attached to said contract and shall be effective on the 24th day of Marcn y 19 79 . Witness our hands this BOARD OF AD)QIISTRATION PUBLIC EMPLOYERS' WILUO WiT SYBTBK Approved es to lazuli 1414 r s ZC; 4. 'legal Office. PBRS , _Kr -tick day of ,February , 19 79 CITY COUNCIL 08 IRE CITY or norotT BRACn Presiding AttSatI L .4 Clerk CON-702-3 ' • RECErvc U-c. i{:ltc •rC 4'ri. PIJB _ 1.11:1 RC�1l�i.'a 1 Nu 5 II 32 AH'79 Qir,,..rd 7� 4. The fraction final compensation to be pioAlki for each year of credited prior and current service as * miscellaneous member shall be determined in accordance with Section 21251.13 of geld Retirement Law (22 at age 60). 5. The fraction of final compensation to be of credited prior and current service as be determined is accordance with Section Retirement Law (22 at age 50). 6. The fraction of final compensation to be of credited prier and current service as be determined in accordance with Section Retirement Law (One-half pay at age 55). beaches. provided for each year a safety member shall 21252.01 of said provided for each year a safety member shall 21252.1 of said for lifeguards on ocean 7. The following additional provisions of the Public Rsployees' 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). Section 20952,5 (providing for age 50 as the minimum voluntary retirement ago for local safety members, with benefit payments commencing prier to age 55 subject to actuarial discount). Sections 2138041388 (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 (alloying public service credit under the provisions of Chapter 830, State. 1976, for up to four years of continuous military or merchant marine service). a. Section 21389 (providing that niecs»sneoua mashers not covered by Federal Social Security who did net elect to be covered by the 1959 Survivor benefit whim Public Agency added said benefit to its contract shall be given anether'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, @eased to be an 'employer" for purposes of Chapter 6' of the Public Employees' Retirement Law affective on September 24, 1977. Accumulated contributions of Public Agency as of the aforementioned data shall be fixed and determined as provided in Section 20759, Goverment Codes and accumulated contributions as of the afore - Mentioned data 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 follow: a. Nth respect ?to Saellansous members, the agency shall contribute the fallowing percentages of monthly salaries earned as miscellaneous members of said Retirement Systems a. (1) 9.145 percent on account of the liability for current envies benefits. COS-702-2 • • -t # • • • . ti RECEIVED- LIO:4 . " Not 5 ii 32 AM '19 • • AMENDMENT TO CONTRACT BENNER TEE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' SYSTEM All THE CITY COUNCIL OF THE CITY OF N'EWPORRT SIACH The Board of Administration, Public Employees* Retirement flyatem, herein- after referred to as "Board", and the governing body of above public agency hereinafter referred to as "Public Agency". having entered into a ccutraat ender 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, June 17, 1978, March 24, 1979, which provides for participation of Public Agency in s said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 11 are hereby stricken from said connect as executed affective March 24, 1979,. and hereby replaced by the following paragraphs member 1 through 10 inclusive 1. Ail cards and texas used herein which are defined in the Public Employees* Retirement Law shall have the meaning ea defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 60 for miscellaneous members and age 50 for local safety members. 2. Public Agency eball participate in the Public Employees* Retirement System from and after July 1, 1945, milking its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees* Retirement Law except such as apply only as election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except such es by express provisions thereof apply only on the election of ceatreating agencies. 3. Employees of Public Agency in the following classes shall become members of said Retirement System exempt such in each such class as are excluded by law or this agreements a. Local Firemen (herein referred to as local safety members); U. Local Policemen (herein referred to as local safety members); c. Lifeguards on oeean beaches (included as local safety metes); d. Employees other than local safety members (heroin referred to am miscellaneous members). In addition to IIse' ;:lasses of employees excluded from ambership by said Retirement law, the following classes of employees shall not become msabers of said Retirement System: NO ADDITIONAL SRCLHSIGIS PERS-+CCN-702-1 A 4. The fraction 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 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 local safety member shall be determined: in accordance with Section 21252.01 of said Retirement Law (2% at age 50). 6. The .following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and .tts employees: a. 20019.3 (providing for inclusion of lifeguards on ocean beaches as local safety members). b. Sections 21380-21388 (1959 Survivors Program). c. Section 20930.3 (Military service credit) as defined in Chapter 830, Statutes of 1976. O. Section 21389 (Second opportunity to elect 1959 coverage), for local miscellaneous members. e. section 20862.8 (Unused sick leave credit), for local miscellaneous members. 7. 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 aforementioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. a. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall con- tribute 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. (2) 0.282 percent on account of the liability for the 1959 Survivor Program. Si, lid 41 I 91 inr • • b. With respect to local safety members. the agency shall contribute the following percentages of monthly salaries earned as laeal'safety members of said Retirement Systems (2) 19.538 percent on account of the liability for current service benefits. (2) .004percent on account of the liability for the 1959 Survivor Program. 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 lnveatigatiou and valuations required by law. d. A reasonable amount as fined by the Board, payable in one installnent 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. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board en 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 required by said Retirement Law. 10. 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 nor* or leas than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, 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 Publics Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. R. This amendment shall be attached to said contract and shall be effective on the }pub, day of June . 1979 . P -C H-702-3 • • Witness our hands this ROARS or Auxzli2STRATIoh PUBLIC EMPLOYEES' BET/REMEDY SYSTEM Approved as to forma day of tSr2r Attests .............. ORDINANCE NO. 1805 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CHP 2% AT 50 - OCEAN LIFEGUARDS) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (CHP 2% at 50 - Ocean Lifeguards), is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit "A," and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This ordinance shall be effective thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the official newspaper of the City, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 14th day of May , 1979, and was adopted on the 29 4) day of '1.2, 1979, by the following vote, to wit: AYES, COUNCILMEN NOES, COUNCILMEN ABSENT COUNCILMEN Mayor ATTEST: City Clerk DDO/kb 4/30/79 -2- • • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADIiINISTRATIO,N PUBLIC EMPLOYEES' RETIRITIENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH • The Board of Administration, Public ?pLoyees•:RetirememrSystem, herein- after referred to as "Board", and the gov rn g``,.bod3i.:9t. a''kove public agency, hereinafter referred to as "Public Agency"+. vy entered into a contract under date of April 27, 1945, effective July'1, 1945,and as amended effective March 1, 1948, Novenber 1, 1951, April 111956, October 31, 1970 September 18, 1971, December 11, 1971, September 24, 1977, December 18, 1977, June 17, 1978, March 24, 1979, 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 March 24, 1979, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. 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: 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 PERS-CON-702-1 EXHIBIT q y way 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 (2Z 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 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. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). c. 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). d. 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). e. Section 20862.8 (providing service credit at retirement for unused sick leave), for miscellaneous members. 7. 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 a's provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. 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. (2) 0.282 percent on account of the liability for the 1959 Survivor Program. PIERS-CON-70 EXHIBIT A • 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) 19.538 percent on account of the liability for current service benefits. (2) .004percent on account of the liability for the 1959 Survivor Program. 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. 9. 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 required by said Retirement Law. 10. 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 remittances, 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 shall be effective on the day of , 19 PERS-CON-702 EXHIBIT A Witness our hands this day of , 19 BOARD OF ADMINISTRATION PUBLIC ELPLOYEESI RETIRE:TENT SYSTF24 OF THE • o 1 : A BY BY Carl J. Blechinger, Executiveg/cer %,:;1 Presiding Officer Approved as to form: .). t..v. • Attest: Legal Office, PERS Clerk PERS-CON-702e) UMW A 7 tfr CITY OF NEWPORT BEACH Increased costs to the City of Newport Beach amending the Public Employees' Retirement System contract to provide 2% @ 50 Retirement Formula for Lifeguards. Safety Members Estimated annual P.E.R. expense before amendments $48,482.00 Estimated increase P.E.R.S. expense for: (Note 1) 2% @ 50 Retirement Formula for Lifeguards $ 2,205.00 Estimated annual P.E.R.S. expense providing 2% @50 Retirement Formual for Lifeguards $50,687.00 NOTE 1: The above estimate is based on the annual budgeted wages of Lifeguards for Fiscal Year 1979/80. • • CERTIFICATION OF FINAL ACPION OF GOVERNING BODY PUBLIC EMPLOYEES RETIREMENT SYSTEM P. O. Box 1953 Sacramento, California 95809 I hereby certify: That the elty C'.nune•11 (Governing Body) adopted on DATE: June Z8. 1979 of the May(DaOtej979 ) City oftin/port Saar Public Agency) , by an affirmative vote of a majority of the members of said Governing Body, Ordinance (Ordinance or Resolution) No. 'Aug approving the attached contractual agreement between the Governing Body of said Agency and the Board of Administration of the Public Employees' Retirement System, a certified copy of said 0r&inanco. in the form (Ordinance or Resolution) furnished by said Board of Administration being attached hereto. Clerk orfecretary- City of NAwport Beach Name of Agency PERS-CON-5 (Rev. 3/78) CERTIFICATION' OF EMPLOYEE ELECTION PERS ACT-15 (3/72) Board of Administration Public Employees' Retirement System 1416 - 9th Street P. 0. Box 1953 Sacramento, California 95814 I hereby certify: • May 10, 1979 (Date) That the following employees of the 'City of Newport Beach have expressed their. approval ow-44sappreve - of said Agency's participation in the Public Employees' Retirement System on the basis described in the Resolution. of Intention passed by said Agency's ' City Council on April -23 , 1974, in such manner as to permit each employee to separately and secretly express his choice and that the outcome of such election . was as follows: . . Local Firemen as defined in Gov't Code Section 20b21 b. Local Policemen as defined in Gov't Code Section 20020 c. County Peace Officers as defined in Gov't Code Section 20021.5 Number of Number of votes Number of votes employees eligible approving said disapproving said 'to vote participation participation d. Ocean Lifeguards as defined in Gov't Code Section 20019.3 :,12 12 City Clerk'. r Secret -0- Y Contract CERTIFICATION OF FINAL ACTION OF GOVERNING BODY DATE: Board of Administration Public Employees' Retirement System P.O. Box 1953 Sacramento, California 95809 March 14, 1978 I hereby certify: That the City Council of the City of Newport Beach adopted on March 13, 1978 , by an affirmative vote of a majority of the members of said governing body, Ordinance No 1760 approving the attached Amendment to contract between the governing body of said Agency and the Board of Administration of the Public. Employees' Retirement System, a certified copy of said Ordinance No. 1760 in the form furnished by said Board of Administration being attached hereto. d�()• LTnl&�e�`�`� C; byClerk er-Secretairy City of Newport Beach Name of Agency PERS-ACT-5 (1/74) • • ORDINANCE NO. 1760 AN ORDINANCE OF THE City Council (Name of Governing Body) City of Newport Beach (Name of Public Agency) AMENDMENT TO THE CONTRACT BETWEEN THE City Council of the City of Newport Beach . of the authorizing an. (Governing Body) AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. The City Council of the City of Newport Beach (Name of Governing Body) (Name of Public Agency) does ordain as follows: SECTION 1. That an amendment to the Contract between of the City of Newport Beach the City Council (Name of and the Board of Governing Body) (Name of Public Agency) Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by such refer- ence made a part hereof as though herein set out in full. SECTION $ The Mayor of the City of Newport Beach of the (Title of Presiding Officer) City Council is hereby authorized, empowered, and directed to (Name of Governing Body) execute said amendment for and on behalf of said Agency. SECTION) This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least one time in the Newport -Harbor Ensign (Name of Newspaper) a newspaper of general circulation, published and circulated in the City of Newport Beach Public Agency) shall be in full force and effect. Adopted and approved this Attest: (N` Cle (Name of and thenceforth and thereafter the same . PERS-ACT-II (Amendment) (9/71) • EXFIIBIT "A" • AAENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EI4PLOYEES' .tETLLEMENT SYSTEM AND THE • CITY COUNCIL OF THE CTTY OF NEWPORT BEACtf The Board of Administration, Public ;smployees' 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, and December 18, 1977, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective September 24, 1977, 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 fire and police 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: 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 CON-702-1 4. The fraction final compensation to be provAlik 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 (2Z 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 determiaed 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. Section 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 commencing 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 marineservice). 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 auother opportunity to elect to be covered under the program). 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- mentioned 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) 7.926 percent on account of the liability for current service benefits. CON-702 2 (2) 0.205 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: t9.o (1) li3 7 percent on account of the liability for current ervice 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 required 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 remittances, 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 shall be effective on the 17th day.of June , 1978 CON-702-3 • • '1. Witness our hands this BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Tx >h/cat/al'.y/eG1i, ems' Carl J. Blechinger, Executive Officer Approved as to form: Legal OfficePERS t7.-17-Y7 day of , 19 7 r CITY COUNCIL OF THE CITY OF NEWPORT BEACH Attest: 40,1itt-41../ e Crk Con. Form 702-4 ORDINANCE NO. 176 0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CHP 2% .AT 5b): The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (CHP 2% at 50), is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3.. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 27th day of February , 1978, and was adopted on the /0' -4' day of , 1978, by the following vote, to wit: AYES, COUNCILMEN: /4 // NOES, COUNCILMEN: Ala C ABSENT COUNCILMEN: 1006 e_ Mayor ATTEST: City Clerk DDO/bc 2/15/78 CITY OF NEWPORT BEACH dFFICE OF THE CITY MANAGER May 7, 1979 Agenda Item H - la TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT/MARINE SAFETY DEPARTMENT RECOMMENDATION: Introduce for first reading an ordinance to amend the contract between the City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System to include Section 21252.01 (2% AT AGE 50 RETIREMENT PLAN). DISCUSSION: Attached is Resolution No. 9548, dated April 23, 1979, by which the City Council notified the Board of Administration of the Public Employees' Retirement System of its intent to amend the retire- ment contract as specified above. The action recommended above is the next step required in the procedure prescribed by P.E.R.S. to amend the existing contract. The final step requiring City Council action, the second reading of the ordinance, will be placed on the agenda for the next Council meeting. Robert L.Wynn RLW/mf Attachments STATE OF CALIFORNIA—BOARD OF ADMINISTRATIII • EDMUND G. BROWN it, Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Telephone (916)45-6570 May 2, 1979 Mr. Wayne Schwammel Assistant to the City Manager City Hall City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 Dear Mr. Schwamnel: Reply to Contracts Division This will acknowledge receipt of your governing body's Resolution of Intention to amend your contract with this System as follows: To provide 2% at 50 for lifeguards. We are sending to you the following documents in order to canplete the proposed amendment: 1. Amendment to Contract, Form 702, in duplicate. Please sign and return two copies to this System. 2. Ordinance, Form CON-11, in duplicate, approving amendment to contract. This Ordinance must be adopted by affirmative vote of a majority of the members of the governing body no earlier than twenty days after the adoption of the Resolution of Intention. The number of days and publications are to be inserted in Section 3 of the form to comply with local requirements. We want to direct your attention to the fact that the Ordinance will not become effective until 30 days after adoption. One copy is to be completed and returned to this System. 3. Certification of Final Action by the Governing Body, Form CON-5. One copy is to be completed and returned to this System. 4. _Certification of Employee Election, Form CON-15. Election to be held and the results are to be returned with the executed contract. (Sample ballot is also enclosed). Effective date of the amendment cannot be earlier than the first day of a payroll period following the effective date of final action of your governing body. Please be sure to notify your accounting division regarding any rate change because of the amendment. Please let us know if you have any questions. Yours truly, et t t aailcvr �14j, Ellen H. Baltezore Div'3hion Chief Contracts Division EHB:jf enclosure cc: San Diego Area Office oard of Administration ubiic Employees' Retirement System iSacramento, California the G3tr of Newnor'b'Beach (Name of Agency). to amend its contract with the Public Employees' A. Ame^'ants desired: • Section of Retirement Law •. B. Anticipated schedule of agency actions 1. N-Z.-7? 2, el- z 4--79 3. 4--/e%-- 79 4. s —2 79 • 5. 6-Ze-71 o. e4— o-- 7'7 Date hereby requests the documents necessary-" Retirement -System as shown in "A" below. Des'cri*tion of Benefit nmeaos .1:.ere.4c..�nPS• Adoption of Resolution of -Intention to.amend contract with•the Public Employees' Retirement System. Employee Election.• First reading of ordinance to adopt amendment to PERS contract, Final reading of ordinance. (Must be et least 21 days after Resolution of Intention.) Effective date ofordinance. Effective date of PERS amendment." day of a payroll period subsequent to the effective date of the ordinance.) BY TITLE (Must be the first. AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC E;IPLOYEES' RETIRMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH q N FI pP 'L.' Z Y� The Board of Administration, Public 1&ieeAMiAdtiremet� ystem, herein- after referred to as "Board", and the goo ';rtip' .as aaove public agency, hereinafter referred to as "Public Agency' q; entered into a contract under date of April 27, 1945, effective Ju , 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, 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 March 24, 1979, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. 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: 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 became members of said Retirement System: NO ADDITIONAL. EXCLUSIONS PERS-CON-702-1 • 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 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. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). c. Section 20930.3 (allowing public service credit under the provisions of Chapter 830, State. 1976, for up to four years of continuous military or merchant marine service). d. 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). e. Section 20862.8 (providing service credit at retirement for unused sick leave), for miscellaneous members. 7. 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 ati provided in Section 20759, Government Code, and accumulated contributions as of the afore- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. 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. (2) 0.282 percent on account of the liability for the 1959 Survivor Program. PERS-CON-702(2) Personnel • • RESOLUTION NO.S4 $ 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 (CHP 2% AT 50 - OCEAN LIFEGUARDS) 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 submit 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 con- tract; and WHEREAS, the following is a statement of the proposed change: TO PROVIDE 2% AT AGE 50 RETIREMENT PLAN, PURSUANT TO SECTION 21252.01 OF THE RETIREMENT CODE, FOR OCEAN LIFEGUARDS 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 City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System, a copy of said amend- ment 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 23rd day of April , 1979. Mayor ATTEST: City Clerk DDO/kb 4/13/79 7 CITY OF NEWPORT BEACH Increased costs to the City of Newport Beach amending the Public Employees' Retirement System contract to provide 2% @ 50 Retirement Formula for Lifeguards. Safety Members Estimated annual P.E.R. expense before amendments $48,482.00 Estimated increase P.E.R.S. expense for: (Note 1) 2% @ 50 Retirement Formula for Lifeguards $ 2,205.00 Estimated annual P.E.R.S. expense providing 2% @50 Retirement Formual for Lifeguards $50,687.00 NOTE 1: The above estimate is based on the annual budgeted wages of Lifeguards for Fiscal Year 1979/80. • • 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; (I) 19.538 percent on account of the liability for current service benefits. (2) .004percent on account of the liability for the 1959 Survivor Program. 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. 9. 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 required by said Retirement Law. 10. 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 leas than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, 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 shall be effective on the day of , 19 PERS-CON-7026) Witness our hands this day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETMENENT SYSTEM OF THE BY Carl J. Blechinger, Execut ) Approved as to form: Attest: el• 111, -; BY err Presiding Officer Legal Office, PERS Clerk • PULS -CON -702(4) 1 ThIsmeisermSmineas CITY OF NEWPORT BEACH elLiPORT4 August 30, 1977 Mr. Thomas R. French Staff Services Analyst Actuarial and Contract Section 020 Public Employees Retirement System 1416 Ninth St. P. O. Box 1953 Sacramento, Calif. 95809 Dear Mr. French: CALIFORNIA 92660 City Hall 3300 Newport Bird (714) 640-2101 Returned herewith are the documents which complete final action toward incorporating military service credit for miscellaneous employees in our PERS contract as directed in your letter of July 21, 1977. September 24, 1977, the effective date of this amendment, is the first day of a bi-weekly payroll period following a lapse of 30 days (minimum) of the ordinance adoption. The City's Finance Department will effect a rate change, commencing that date, to 8.131% as specified in your valuation report of May 17, 1977. Thank you for your assistance in this matter. Frank Ivens Assistant to the City Manager FI:kb cc: Finance Director AN ORDINANCE OF THE ORDINANCE NO. 1747 CITY CCONCIL of the (Name of Governing Body) CITY OP NEWPORT BEACH (Name of Public Agency) AMENDMENT TO THE CONTRACT BETWEEN,THE City Council of the City of Newport Beach authorizing an (Governing Body) AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. City Council The of the City of Newport Beach (Name of Governing Body) (Name of Public Agency) does ordain as follows: SECTION 1. That an amendment to the Contract between the City Council ,(Name of of the City of Newport Beach and the Board of Governing Body) (Name of Public Agency) Administration, California Public Employees' Retirement System is hereby authorized, e copy of said amendment being attached hereto, marked "Exhibit A", and by such refer- ence made a part hereof as though herein set out in full. SECTION $. The City Council Mayor of the City of Newport Beach (Name of Governing Body) execute said amendment for and on behalf of said Agency. SECTION 3 This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least one-time in the Newport Harbor Ensign (Name of Newspaper) a newspaper of general circulation, published and circulated in the (Name of City of Newport,Beach and thenceforth and thereafter the same Public Agency) shall be in full force and effect. of the '(Title of Presiding Officer) is hereby authorized, empowered, and directed to Adopted and approved this 22nd day of August Attest: derkC ., T977 (Presiding facer PERS-ACT-11 (Amendment) (9/71) • STATE OF CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Telephone (916) 445-5147 September 29, 1977 City Clerk City of Newport Beach 3300 Newport Boulevard Newport Beach, CA. 92663 Reply to Section 020 The amendment to the contract between your agency and the Public Employees' Retirement System has been executed by our office. A copy of the contract as amended is enclosed for your file. KISUK YANG CHIEF ACTUARY Encl. PERS-ACT-16 (2/74) - PLEASE RETURN TO CITY CLERK CITY OF NEWPORT BEACH 3300 NEWPORT BOULEVARD NEWPORT BEACH, CALIF. 92663 •. • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE c11x COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the City Council of the City of Newport Beach, 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, and December il, 1971, 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 October 1, 1970, and are hereby replaced by the following para- graphs numbered 1 through 10 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 55 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945, making its employees as herein- after 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 provision thereof apply only on the election of contract- ing 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: 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 (herein referred to as local safety members). d. Employees other than local firemen and local policemen (herein referred to as miscellaneous members). The following classes shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS Ret. Forma 702-1 • 4: The fractiof final compensation to be Aided for each year of credited prior and current service as a miscellaneous member upon retirement at normal retirement age shall be as provided in Section 21251.13 of said Retirement Law. 5. The fraction 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 21252 1 of said Retirement Law. 6. Public Agency, in shad cease to be Public Employees' of this amendment the Public Agency and determined as accordance with Section 20740, Government Code, an "employer" for purposes of Chapter 6 of the Retirement Law effective as of the effective date to this contract. Accumulated contributions of as of the date of such amendment shall be fixed provided in Section 20759, Government Code, and such accumulated contributions and contributions hereafter made shall be held by the Board as provided in Section 20759, Government, Code. 7. The following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 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 commencing prior to age 55 subject to actuarial discount). c. Section 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 (providing service credit under the provisions of Chapter 830, Stets. 1976, for up to four years of continuous military or merchant marine service for persons who are members because of employment by Public Agency) for miscellaneous members. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 0 percent until June 30, 2000 on account of the liability for prior service benefits. (2) 7.926 percent on account of the liability for current service benefits. (3) 0.205 percent on account of the liability for the 1959 survivors program. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned as local safety members of said System: (1) arcent until June 30, 2000 on aunt of the liability for prior service benefits. (2) 11.635.percent on account of the liability for current service benefits. 0 percent on account of the liability for the 1959 survivors program. (3) c. A reasonable amount per annum, as fixed by 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 the periodical investigations and valuation required by law, provided that said amount shall be determined on the basis of the number of employees of Public Agency who are reported as members of a payroll designated by the System covering one month of each year, or with respect to the first year of participation, on the effective date of said participation. d. A reasonable amount as fixed by the Board, payable in one install— ment as the occasions arise, to cover costs of special valuations on account of employees of Public Agency, and costa of the period— ical investigation and valuation required by law. 9. 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 experience under the Retirement System, as determined by the periodical investigation and valuation required by said Retirement Law. 10. 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. If more or less than the correct amount of contribution is paid for any period, proper adjustment shall be made in connection with subsequent remittances or adjustment on account of errors in contributions required of any employee may be made by direct cash payments between the employee and Board. rayments 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 tive on the _.2,1 Witness our hands this to said contract and shall be effec— day o BOARD OF ADMINISTRATION PUBLIC EMPLOY -MS/ RETIREMENT SYSTEM Carl echinger, Exey! ive Officer Approved as to form: Legal Office, day of CITY COUNCIL OF THE C NEWPORT BE BY' / esiding Officer Attest: Jerk Ret. Form 702-3 • • CERTIFICATION OF FINAL ACTION OF GOVERNING BODY DATE: August 23. 1977 Board of Administration Public Employees' Retirement System P.O. Box 1953 Sacramento, California 95809 I hereby certify: That the City Cpuneti of the City of Newport Reach adopted oh August 22. 1977 , by an affirmative vote of a majority of the members of said governing body, Ordina ce No 1747 approving the attached Arnammant to Contract between the governing body of said Agency and the Board of Administration of the Public Employees' Retirement System, a certified copy of said nrdtnanca jo. 1747 in the form furnished by said Board of Administration being attached hereto. Clerk or Secretar Name o Ag PERS-ACT-5 (1/74) • • ORDINANCE NO. 174 7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of 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 A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the t( day of , 1977, and was adopted on the 07 iadL day of A teuo s following vote, to wit: ATTEST: City Clerk CF.2T IED AS A TRU c AND CORRECT COPY i7 CLERK OF rife car or wrwr.f BEACH , 1977, by the AYES, COUNCILMEN: NOES, COUNCILMEN: ABSENT, COUNCILMEN: Mayor DDO/bc • . 7/26/77 AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF 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, June 17, 1978, March 24, 1979, 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 March 24, 1979, and hereby replaced by the following paragraphs number 1 through 10 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 safety members. 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: ' 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 PERS-CON-702-1 • • 4. The fraction 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 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 local safety member shall be determined in accordance with Section 21252.01 of said Retirement Law (2% at age 50). 6. The following additional provisions of the Public Employees' Retire- ment 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. Sections 21380-21388 (1959 Survivors Program). c. Section 20930.3 (Military service credit) as defined in Chapter 830, Statutes of 1976. d. Section 21389 (Second opportunity to elect 1959 coverage), for local miscellaneous members. e. Section 20862.8 (Unused sick leave credit), for local miscellaneous members. 7. 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 aforementioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the agency shall con- tribute 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. (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) 19.538 percent on account of the liability for current service benefits. (2) .004percent on account of the liability for the 1959 Survivor Program. 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. 9. 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 required by said Retirement Law. 10. 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 remittances, 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 shall be effective on the 30th day of Jun, , 19 79 PERS-CON-702-3 Witness our hands this day of BOARD OF AIMIINISTRATION PUBLIC EMPLOYEES' RETIREIIENT SYSTEM BY Carl J. Blechinger, Executive Officer Approved as to form: Legal Office, PERS 19 OF THE Presiding Officer. Mayor PERS-CON-702-4 • • City Clerk June 28, 1979 Personnel (Bill Brawn) Providing 2% at 50 for Lifeguards. Enclosed is a ropy of the contract and Ordinance. No. 1805 regarding provisions for 2% at 50 for Lifeguards, which was adopted by the Newport Beach City Obuncil on the 29th of May, 1979. Please transmit to the Public Fkuployyees Retirement Systems office. thank you DG:ar Encl. CITY OF NEWPORT BEACH CALIFORNIA City Hall 3300 W. Newport Blvd. Area Code 714 TO: FINANCE DIRECTOR FROM: City Cleric SUBJECT: Contract No. 563 Amendment Description of Contract Authorized by Resolution No. 9494 Effective date of Contract Contract with • Address DATE April 3, 1979 Plthlir Employees' Retirement System , adopted on January 8,1979 March 24, 1979 Public Employees R etirement System P. O. Box 1953 Sacramento, CA 95809 Mount of Contract See Amendment to Contract • Lr r RESOLUTION 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 • s 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 8th day of January , 1979. Mayor ATTEST: City Clerk DDO/cr 12/29/78 • CITY OF NEWPORT BEACH December 28, 1978 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. Safety Miscellaneous .Members Members Total Estimated annual P.E.R.S. expense before amendments $ 851,500 $ 523,900 $1,375,400 Estimated increase P.E.R.S. expense for: (Note 1) Military service credit for Safety Members (Note 2) -0- Unused sick leave credit for Miscellaneous Members -0- 14,300 14,300 Total Estimated Increased Expense -0- 14,300 14,300 Estimated annual P.E.R.S. expense providing Military service and unused sick leave credit $ 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. • Ci7 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council of the City of Newport Beach on January B, 1979 (Date) (Governing Body) (Name of Public Agency) appearing at Page • • • Volume 33 of the (Minutes) (Gffitiai-RectIrJ,) of the Newport Beach City Council (Governing Body) CITY CLERK or Secretary of the Board PER:.-CON-i2 (11/77) Post Cffice Box 1953 Sacramento CA 95809 • CERTIFICATION OF COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 I hereby certify that in accordance with Section 7507 of the Government Code the future annual costs as determined by the System Actuary have been made public at a public meeting at least two weeks prior to the adoption of the increase in public retirement plan benefits as provided by the Mil Sery Cr (Safety) & Sick Lv Cr (Misc) presented to (optional benefit) which was/wdxZt the City Council of (legislative body) the City of Newport Beach on the January 8, 1979. (public agency) (date) Date: January 9, 1979 / original signatur CITY CLERK official title PERS-CON-12A (9-78) • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION• ' PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE • . CITY COUNCIL OF THE CITY OF 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. din 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 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 CON-7O2-1 4. The fraction of final compensation to be provided for each year of credited prighand current service as a mis neous member shall be deterninn accordance with Section 21.13 of said Retirement Law (2% at age 60). 5. The fraction of final compensation to be of credited prior and current service as be determined in accordance with Section Retirement Law (2% at age 50). 6. The fraction of final compensation to be of credited prior and current service as be determined in accordance with Section Retirement Law (One-half pay at age 55), beaches. provided for each year a safety member shall 21252.01 of said provided for each year a safety member shall 21252.1 of said for lifeguards on ocean 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 commencing prior to age 55 subject to actuarial discount). c. Sections 21380-21388 (providing for allowances for survivors of members covered under the 1959 Survivors 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 continuods 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•Tublic 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- mentioned date and contributions thereafter made shall beheld 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: e (1) 9.145 percent on account of the liability for current service benefits. COW-702-2 (2) .0.282 percent on account of the liability for the 19S11purvivor 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) •29.692 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 required' 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 bemade in connection with subsequent reiaittances, or adjustments on account of errors in contributions required of any employee nay be made by - direct cash payments between the employee and the Board. Payments by Public Agency to Board may be madd 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 shall be effective on the day of , 19 • Witness our hands this day of , 19 BOARD OF ADMX:IISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM OF THE • CITY OF NEWPORT BEACH BY �1,�.�'Pd. p� BY Carl J. Blechinger, Executive Officdte•A�r, �y Presiding Officer Approvedas to form: Legal Office, PERS 1 Clerk CON-702-3 - § 7504 GOVERNMENT CODE Act of 1074_ The actuary shall perform a valuation of the system utilizing actuarial assumptions and techniques established by the agency which are, in the aggregate, reasonably related to the experience and the actuaries' best estimate of anticipated experience under the system. (b) All state and local public retirement systems shall secure the services of a qualified public accountant to perform an attest audit of the system's financial state- ments. A qualified public accountant means: (I) A person who is licensed to practice as a certified public accountant in this state by Ole State Board of Accountancy, or- (3) A person who is registered and entitled to practice as a public accountant in this state by the State Board of Accountancy, or (3) A county auditor in any county subject to the County Employees Retirement Law of 1937. (c) All state and local public retirement systems shall submit audited financial statements to the State Controller within six months of the close of each fiscal year. The financial statements shall he prepared In accordance with generally ac- cepted accounting principles in the form and manner prescribed by the State Con- troller. The penalty prescribed in Section 53695 shall be invoked for failure to comply.with this section. • (d) The State Controller shall compile and publish a report annually on the financial condition of all state and local public retirement systems containing. but not limited to, the data required in Section 7502. (Added by Stats.lp77, c. 928. p. —, § 4, urgency, eff. Sept. 20, 1977, operative Jan. 1, 107S.) Operative Jalmnry 1, 1978. § 7507. Actuarial evaluations of future annual costs prior to authorizing Increases In benefits; use of enrolled actuary The Legislature and local legislative bodies shall secure the services of an en- rolled actuary to provide actuarial evaluations of future annual costs before au- thorizing increases in public retirement plan benefits. An "enrolled actuary" means an actuary enrolled under subtitle C of Title III of the federal Employee Retire- ment Income Security Act of 1974 i and "future annual costs" shall Include, but not be limited to, annual dollar increases or the total dollar increases involved when available. The future annual costs as determined by the actuary shall be monde public at a public meeting at least two weeks prior to the adoption of any increases in public retirement plan benefits. (Added by Stats.1977, c. 941, p. t 29 1i.S.C.A. § 1241 et seq. Library References Officers i=94 C.J.S. Officer. § 83 et seq. CHAPTER * * * 22. LETTERS AND CORRESPONDENCE * o 0 Sec. 7525. Telephone number; inclusion on official stationery [New]. 7526. Address and telephone number; subject matter of specific communication [New]. Chapter 20 teas added by Stats.1976, c. 1079, p. —, § 30. Chapter 20, Letters and Correspondence, added by Stats.1976, c. 1079, p. —, § 30, teas renumbered Chapter 22 and amended by Stats.1977, c. 579, p. —, § 6.3. Underline indicates changes or additions by amendment 108 t GOVj § 7525. Telephone number; uncle The letterhead or other 5 r1 prom agency; and county, school district, municipal cbrpo cooimisslon, and. agency thereo communication with the public. The telephone number. may he prominent location. 1070, a (Added by SCtts1476. c.i . - bypStatat975, Former la 17 rD section 1 1. § 7526. Address and telephone In addition to the re4 location on official stationery but not limited to, a chartered t district, political subdivv loused other local public agency,numM addition to the telephone if different from the telephone thereon, to which inquiry retrace may be made. The address an the letterhead or other by e St(Formerly g. Renumbered § 7526 and anent Section 2 of Stats.1976, C. 51 provided: The Legislature hereby find Blares that the necessity for • this state to avail themselves j ed toocchartered cities. including. tel dentt of of particular er the citizen is matter legislat on requlrl • CHAPTER 23• LETT Sec. 7600. Repealed. 7801. Renumbered Chapter 23, fetters a 191,1 f was repealed by §'7800. Repealed by Stats.l The repeated 19 U 4 ne 1975, e. ta7, p• agencies and political subdly g 7801. Renumbered 9 752 Subordination of anemia' to other legisl during the 197? portion of the tar Session and Jan. 1, 1978,.see note under § 1202. Asterisks • o * indicate 1r CITY OF NEWPORT BEACH CALIFORNIA DATE April 10, 1078 TO: FINANCE DIRECTOR FROM: City Clerk SUBJECT: Contract No. C_46t Description of Contract Amenae,.,,t to l 0rdinance Authorized by -Rased No. 1760 Effective date of Contract June 17. 1978 City Hall 3300 W. Newport Blvd. Area Code 714 ,,adopted on March 19. 1978 Contract with Public Employees Retirement System Address P.O. lex 1951 Sacramento, CA 95809 Amount of Contract 5n Contract • • STATE OF CALIFORNIA— BOARD OF ADMINISTRATION EDMUND G. BROWN JR., Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Telephone (916) 445-657o April 7, 1978 City Clerk City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92663 Repl.;; to Section 021 The amendment to the contract between your agency and the Put.11e Employees' Retirement System has been executed by our office. A copy of the contract as amended is enclosed for your file [AnJ—/C /k THOMAS R. FRENCH CONTRACTS DIVISION Enclosure lmm FILED WITH ORIGINAL ORDINANCE NO. 1760 PERS-CON-32 (Rev. 2/78) • • CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council (Governing Body) of the City of Newport Beach (Name of Public Agency) on December 19, 1977 , appearing at Page 323 Volume (Date) 31 of the (Minutes) (Bf€iekal Records) of the City of Newport Beach (Governing Body) CITY CLERK or Secretary of the Bo rd PERS-CON-12 (11/77) • • ORDINANCE NO. 1 75 6 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (ADDITIONAL CHOICE TO ELECT THE 1959 SURVIVORS BENEFIT) The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System (Additional Choice To Elect The 1959 Survivors Benefit), is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Newport Beach. SECTION 3. This Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the agfk day of October , 1977, and was adopted on the f '-% day of /1%p l/Ca-n bey following vote, to wit: ATTEST: City Clerk AYES, COUNCILMEN: 1977, by the NOES, COUNCILMEN: ABSENT, COUNCILMEN: Mayor DDO/bc 10/19/77 • RESOLUTION NO. 9 25 3 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 (CHP 2% AT; 50) 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: Provides 2% at 50 benefits for safety 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 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 19th day of December , 1977. ATTEST: City Clerk Mayor DDO/bc 12/19/7 AMENDMENT TO CONTRACT BETWEEN THE BOARD OF AI*IINISTRATION PUBLIC EMPLOYEES' RETIRkI`IENT SYSTEM AND THE CITY COUNCIL OF THE • CITY OF 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 and December 18, 1977, which provides for participation of Public Agency: in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 10 are hereby stricken from said contract as executed effective September 24, 1977, and hereby replaced by the following paragraphs number 1.through 10 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 5Q for local safety members. Dote b ca 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: 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 Con. Form 702-1 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 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. Section 20019.3 (providing for inclusion of lifeguards on ocean beaches as local safety members). b. .roviding for age 50 as the minim,.. • retirement age for locth benefit payments4 frseh • - or to age 55 subject to actuarial . sc'PS 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, Stets. 1976, for up to four years of continuous military or merchant marine service). e. Section 21298 (providing increased non -industrial disability retirement allowances of up to fifty -percent of final compensation to members retiring after the effective date of the amendment). 7. 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- mentioned date and contributions thereafter made shall be held by the Board as provided in Section 20759, Government Code. 8. 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) 7.926 percent on account of the liability for current. service benefits. (2) 0.205 percent on account of the liability for the 1959 Survivor Program. Con. Form 702-2 b. With respect to local safety members, the agency shall contribute the following percentages of monthly salaries earned as local safety membera of said Retirement' System: (1) 18.417 percent on account of the liability for current service benefits. (2) 0.000 percent on account of the liability for the 1959 Survivor Program. 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 valuationa on account of employees of Public Agency, and costs of the periodical investigation and valuations required by law. 9. 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 required by said Retirement Law. 10. 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 negotiation. If more or leas than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances, 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 shall be effective on the day of , 19 Con. Form 702-3 Witness our hands this day of , 19 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY BY Carl J. Blechinger, Executive Officer Presiding Officer Approved as to form: Attest: Legal Office, PERS Clerk Con. Form 702-4 r • INCREASED COSTS TO THE CITY ATTENDANT TO AN AMENDED CONTRACT WITH PUBLIC EMPLOYEES' RETIREMENT SYSTEM PROVIDING THE 2% AT AGE 50 FORMULA FOR SAFETY PERSONNEL Estimated 1977-78 P.E.R.S. Safety Members Expense (Current Fiscal Year) POLICE FIRE MARINE TOTAL $307,901 227,304 24,012 559,217 1978-79 Increased Cost Due To Rate Increase, *63.520 $195,578 144,383 15,252 355,213 Estimated 1978-79 P.E.R.S. Safety Members Expense Based on 1977-78 Salaries $503,479 371,687 39,264 914,430 NOTE: THE ABOVE ESTIMATE DOES NOT INCLUDE ANY PROVISION FOR POSSIBLE SALARY ADJUSTMENTS WHICH MAY BE NEGOTIATED AT MID -YEAR. AS A GUIDE, A ONE PERCENT SALARY ADJUSTMENT WILL INCREASE THE P.E.R.S. SAFETY MEMBERS EXPENSE BY $9,144. *The rate increase at 7.39% represents a 63.52% increase in expenses over the Fiscal Year 1977/78 figure. RESOLUTION NO. 9 2 0 2 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 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: Provides 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. 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 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, and by this reference made a part hereof. ADOPTED this llth day of October , 1977. ATTEST: Mayor City Clerk DDO/bc 9/28/77 • I / AFFIDAVIT OF PUBLICATION NEWPORT HARBOR ENSIGN STATE OF CALIFORNIA) ss County of Orange ARVO E. HAAPA , being first dilly sworn, and on oath depose and say that I am the printer and publisher of the Newport Harbor Ensign, a weekly newspaper printed and published in the City of Newport Beach, County of Orange, State of California, and that the ORDINANCE NO. 171}7, with "EXHIBIT A" - A??ENDM;_;NT TO CON- TRACT of which copy attached hereto is a true and complete copy, was printed and published in the regular issue(s) of said newspaper, and not in a supplement, 1 consecu- tive times: to -wit the issue(s) of Sent. 1, 1977 (Signed) Subscribed and sworn to before me this 1st day of September, 19 77 NotaryPublic in and fore County of Orange, State of California. OFFICIAL SEAL MARY A. HAAPA NOTARY PUBLIC CALIFORNIA PRINCIPAL OFFICE IN ORANGE COUNTY Commission Expires Dec. 20, 1979 I 109fMYYYIIWNW W Y11111umnnlmnmNMn PUBLIC NOTICE PUBLIC NOTICE PUBLIC NOTICE PUBLIC NOTICE ORDINANCE NO. 1747 AN ORDINANCE OF THE CITY COUNCIL OF THE CI- TY OF NEWPORT BEACH AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIRE- MENT SYSTEM The City Council of the City of Newport Beach DOES ORDAIN as follows: SECTION 1. That an amendment to the Contract between the City Council of the City of Newport Beach and the Board of Admini- stration, California Public Employees' RetirementSys- tem, is hereby authorized, a copy of said amendment be- ing attached hereto, marked "Exhibit A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor and City Clerk of the City of Newport Beach are here- by authorized, empowered and directed to execute said amendment for and on be- half of the City of Newport Beach. SECTION 3, This Ordin- ance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of fifteen (15) days from the passage there- of shall be published at least once in the Newport Harbor Ensign, a newspaper of ge- neral circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was intro- . duced at a regular meeting of the City Council of the City of Newport Beach held on the 8th day of August, 1977, and was adopted on the 22nd day of August,1977, by the following vote, to wit: AYES, COUNCILMEN: Dos- tal, Barrett, Kuehn, McInnis, Rogers, Ryckoff, Williams. NOES, COUNCILMEN: None. ABSENT, COUNCILMEN: None. Milan Dostal Mayor ATTEST: Doris George City Clerk "EXHIBIT A" AMENDMENT TO CON- TRACT BETWEEN THE BOARD OF ADMINISTRA- TION PUBLIC EMPLOY- EES' RETIREMENT SYS- TEM AND THE CITY COUN- CIL OF THE CITYOF NEW - PORT BEACH The Board of Administra- tion, Public Employees' Re- tirement System, hereinaf- ter referred to as Board and the City Council of the City of Newport Beach, here- inafter referred to as Pub- lic Agency having entered into a contract under date of April 27, 1945, effective July 1, 1945, and as amen- ded effective March 1, 1948, November 1, 1951, April 1, 1956, October 31, 1970, Sep- tember 18, 1971, and De- cember 11, 1971, whichpro- vides for participation of Public Agency in said Sys- tem, Board and Public Agen- cy hereby agree as follows: A. Paragraphs 1 through 11 are hereby stricken from said contract as executed effective October 1, 1970, and are hereby replaced by the following paragraphs numbered 1 through 10 in- clusive: 1. All words and terms used herein which are de- fined in the Public Employ- ees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Nor- mal retirement age" shall mean age 60 for miscella- neous members and age 55 for local safety members. 2. Public Agency shall participate in the Public Em- ployees' Retirement System from and after July 1, 1945, making its employees as hereinafter provided, mem- bers of said system sub- ject to all provisions of the Public Employees' Retire- ment 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 ex- cept such as by express provision thereof apply on- ly on the election of con- tracting agencies. 3. Employees of Public Agency in the following clas- ses shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local firemen (herein referred to as local safety members); b. Local policemen (here- in referred to as local safe- ty members); c. Lifeguards on ocean beaches (herein referred to as local safety members). d. Employees other than local firemen and local po- licemen (herein referred to as miscellaneous members). The following classes shall be excluded from mem- bership in said Retirement System: NO ADDITIONAL EXC LUSIONS 4. The fraction of final compensation to be provi- ded for each year of cre- dited prior and current ser- vice as a miscellaneous member upon retirement at normal retirement age shall be as provided in Section 21251.13 of said Retirement Law. 5. The fraction of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in ac- cordance with Section 21252.1 of said Retirement Law, 6, Public Agency, in ac- cordance with Section20740, Government Code, shall cease to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective as of the effective date of this amendment to this contract. Accumulated contributions of the Public Agency as of the date of such amendment shall be fixed and determined as provided inSection20759, Government Code, and such accumulated contributions and contributions hereafter made shall be held by the Board as provided inSection 20759, Government Code. 7. The following additional provisions of the Public Em- ployees' Retirement Law whicn apply only upon elec- tion of a contracting agency shall apply to the Public Agency and its employees: a. Section 20019.3 (pro- viding for inclusion of life- guards on ocean beaches as local safety members). b. Section 20952.5 (pro- viding for age 50 as the minimum voluntary retire- ment age for local safety members with benefit pay- ments commencing prior to age 55 subject to actuarial discount). c. Section 21380-21388 (providing for allowances for survivors of members cov- ered under the 1959 Survi- vor's Program upon the member's death before re- tirement). d. Section 20930.3 (provi- ding service credit under the provisions of Chapter 830, Stats. 1976, for up to four years of continuous mi- litary or merchant marine service for persons who are members because of em- ployment by Public Agency) for miscellaneous mem- bers. 8. Public Agency shall contribute to said Retire- ment System as follows: a. With respect to mis- cellaneous members, the public agency shall contri- bute the following percen- tages of monthly salaries earned as miscellaneous members of said System: (1) 0 percent until June 30, 2000 on account of the liability for prior service benefits. (2) 7.926 percent on ac- count of the liability for cur- rent service benefits. (3) 0.205 percent on ac- count of the liability for the 1959 survivors program. b. With respect to local safety members, the pub- lic agency shall contribute the following percentages of monthly salaries earned as local safety members of said System: (1) 0 percent until June 30, on account of the liability for prior service benefits. (2) 11.635 percent on ac- count of the liability for cur- rent service benefits. (3) 0 percent on account of the liability for the 1959 survivors program. c. A reasonable amount per annum, as fixed by Board to cover the costs of ad- ministering said System as it affects the employees of Public Agency, not including the costs of special valua- tions or the periodical in- vestigations and valuation required by law, provi- ded that said amount shall be determined on the ba- sis of the number of em- ployees of Public Agency who are reported as mem- bers of a payroll designa- ted by the System covering one month of each year, or with respect to the first year of participation, on the effective date of said parti- cipation. d. A reasonable amount , as fixed by the Board, pay- able in one installment as the occasions arise, to co- ver costs of special valua- tions on account of employ- ees of Public Agency, and costs of the periodical in- vestigation and valuation re- quired by law. 9. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Re- tirement Law, and on ac- count of experience under the Retirement System, as determined by the periodi- cal investigation and valua- tion required bysaidRetire- ment Law. 10. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Re- tirement System withinthir- ty days after the end of the period to which said contributions refer. If more or less than the correct am- ount of contribution is paid for any period, proper ad- justment shall be made in connection with subsequent remittances or adjust- ment on account of errors in contributions required of any employee may be made by direct cash payments be- tween the employee and Board. Payments by Pub- lic Agency to Board may be made in the form of war- rants, bank checks, bank drafts, certified checks, mo- ney orders, or cash. B. This amendment shall be attached to said contract and shall be effective on the 24th day of September, 1977. Witness our hands this 25th day of August, 1977. BOARD OF ADMINISTRA- TION PUBLIC EMPLOY- EES' RETIREMENT SYS- TEM CITY COUNCIL OF THE CITY OF NEWPORT BEACH, BY Milan Dostal, Presiding Officer. Attest: Doris George, Ci- ty Clerk. Publish: Sept. 1, 1977, in the Newport Harbor Ensign. RESOLUTION NO. 9 15 0 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 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 change: WHEREAS, the following is a statement of the proposed Provides service credit under the provisions of Chapter 830, Statutes 1976, for up to four years of continuous military or merchant marine service for persons who are members because of employment by Public Agency 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 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, and by this reference made a part hereof. ADOPTED this llth day of July , 1977. ATTEST: Mayor City Clerk DDO/bc 7/6/77 • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF AD:IIIISTRATICN PUBLIC MIMES' EE IRENENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employeest Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NEWPORT BEACH, 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, and December 11, 1971, 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 October 1, 1970, and are hereby replaced by the following para- graphs numbered 1 through 10 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Iaw shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 60 for miscellaneous members and age 55 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945, making its employees as herein- after 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 provision thereof apply only on the election of contract- ing 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: a. Local firemen (herein referred to as local safety members);. b. Local policemen (herein referred to as local safety members); c. Employees other than local firemen and local policemen (herein referred to as miscellaneous members). The following classes shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS 4.: The fractiillh of final compensation to be aided for each year of . - credited gillbr and current service as a mllaneous member upon retirement at normal retirement age shall be as provided in Section 21251.13 of said Retirement Law. 5. The fraction 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 21252.1 of said Retirement Law. 6. Public Agency, in accordance with Section 20740, Government Code, shall cease to be an "employer" for purposes of Chapter 6 of the Public Employees' Retirement Law effective as of the effective date of this amendment to this contract. Accumulated contributions of the Public Agency as of the date of such amendment shall be fixed and determined as provided in Section 20759, Government Code, and such accumulated contributions and contributions hereafter made shall be held by the Board as provided in Section 20759,.Government Code. • 7. The following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 20952.5 (providing for age 50 as the minimum voluntary retirement age for local safety members with benefit payments commencing prior to age 55 subject to actuarial discount). • b. Section 21380-21368 (providing for allowances for survivors of members covered under the 1959 Survivor's Program upon the member's death before retirement). c. Section 20930.3 (providing service credit under the provisions of Chapter 830, Stets. 1976, for up to four years of continuous milita_Yy or merchant marine service for persons who are members because of employment by Public Agency) for miscellaneous members. 8. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 0 percent until June 30; 2000 on account of the liability for prior service benefits. (2) 7.926 percent on account of the liability for current service benefits. (3) 0.205 percent on account of the liability for the 1959 survivors program. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned as local safety members of said System: • Ret. Form 702-2 } leercent until June 30, on amipunt of the ili,ty for prior service bendier 11.635 percent on account of the liability for current service benefits. . 0 percent on account of the liability for the 1959 survivors program. c. A reasonable amount per annum, as fixed by 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 the periodical investigations and valuation required by law, provided that said amount shall be determined on the basis of the number of employees of Public Agency who are reported as members of a payroll designated by the System covering one month of each year, or with respect to the first year of participation, on the effective date of said participation. d. A reasonable amount as fixed by the Board, payable in one install- ment as the occasions arise, to cover costs of special valuations on account of employees of Public Agency, and costs of the period- ical investigation and valuation required by law. 9. 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 experience under the Retirement System, as determined by the periodical investigation and valuation required by said Retirement Law. 2A. Contributions required of Public Agency and'its employees shall be paid by Public Agency to the Retireaent System within thirty days after the end of the period to which said contributions refer. If more or less than the correct amount of contribution is paid for any period, proper adjustment shall be rude in connection with subsequent remittances or adjustment on account of errors in contributions required of any employee �ay be made by direct cash payments between . the employee and Board. ayments by Public Agency to Board may be made in the fora of warrants, bank checks, bank drafts, certified checks,' money orders, or cash. B. This amendment shall be attached to said contract and shall be effec- . tive on the day of Witness our hands this BOARD OF AD1INISTRATION PUBLIC EtiPLOYEES' RETIREENT SYSTFM BY Carl J. Blechinger, Executive Officer Approved as to form: Legal Office, PERS day of CITY COUNCIL OF THE CITY OF N 1POP.T MACH BY Presiding Officer,R Attest: Clerk Ret. Form 702-3 CERTIFICATION OF GOVERNING BODY°S ACTCON 1 hereby certify that the foregoin, is a true and correct copy of a Resolution adopted by the (Governing Bo ;) of the (Name of Public Agency) on appearing at Page (Date) Volume of the (Minutes) (Official Records) of the (Governing Body) CITY CLERK or Secretary of the Board PEES-ACT-12 (11/71) b4 EXHIBITS Benefits to Employees Under PERS SURVIVOR BENEFITS (Benefits provided by Sections 21380-21387 of the Retirement Law) BENEFITS Survivors of members who elect coverage under the PERS survivor program and whose death occurs before retirement will receive a monthly life income as follows: Widow and two or more dependent children or Three or more dependent children, alone Widow and one dependent child or Two dependent children, alone Widow, alone, age 62 (widower age 65) or One dependent child, alone If there is no widow or dependent child, then to each dependent parent (mother 62, father 65) Conditions: $250 $180 $ 90 $ 90 1. A dependent child is one under the age of 18 and unmarried, or a disabled child of any age who has been continuously disabled since age 18. (For purposes of the 1959. Survivor allowance, a person shall be considered under the age of 18 if he is an unmarried, full-time student between the ages of 18 and 22.) 2. A widow ceases to be eligible for a benefit upon her remarriage. 3. A widower will be eligible for a benefit the same as a widow -provided he was dependent upon the deceased member for at least one-half of his support. h. The basic death benefit currently included in your retirement program pro- vides that should a member die prior to his retirement, his beneficiary would be paid the member's accumulated contributions plus an additional amount equal to one-monthts salary for each year of service, up to a max- imum of six months, The above survivor benefits will be payable in addition to ally basic death benefit the survivor may be entitled to receive. 5. If a member is covered under both the PERS 1959 Survivor Benefit described above and the survivor benefits as provided in Section 21365.5 (1957 Survivors Benefit) of the Retirement Law, the survivor will be paid both benefits. 6. Section 21383 - If survivor is entitled to special death benefit and at the same time is entitled to receive a survivor allowance, the survivor allowance payable in any month shall be reduced by the amount of the special death benefit allowance. Rat. Form 1171-1 (Rev.1/70) COST TO THE EMPLOYEE Each employee will contribute $2.00 a month in addition to his normal retire- ment contributions. He will continue to pay this additional amount until either termination of employment or retirement and under no circumstances will these contributions be refundable. EFFECTIVE DATE These survivor benefits will become effective on (Date). All present members of the System will be given the opportunity by written ballot to select this survivor coverage. Persons who choose coverage will remain covered until they terminate their employment or retire. IT IS NOT NOW PROVIDED that persons, who do not choose coverage will be allowed to choose coverage at a later date. For agencies not covered under QASDI all future employees would be mandatorily covered under this program. For agencies who are covered under OASDI all future employees are mandatorily covered under OASDI and, therefore, are not eligible for the PERS survivor benefits. Under the PERS survivor program, if a member passes away before retirement leaving a widow and four children, the widow would receive a monthly income of $250 until such time as the three oldest children have passed age 18 (so that she now only has one child under the age of 18) at which time her benefit would be reduced to $180. The $180 would continue to be paid until the last child passes the age of 18 at which time the payment would cease until the widow reaches the age of 62. She would then receive $90 a month for the remainder of her lifetime. The widow ceases to be eligible for her benefit when she remarries although benefits would continue to any remaining children under the age of 18. For purposes of the 1959 Survivor allowance, a person shall be considered under the age of 18 1f he is an unmarried, full-time student between the ages of 18 and 22. Bet. Form 1171-2 (Rev. 10/69) 6ESOLUTION NO. 7533 41 RESOLUTION OF INTENTION TO APPROVE AN AME-NDNENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC E PLOYr S' RETIRE ENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WB&REAS, 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 required 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 changes proposed in said contract; and WHEREAS, the following is a statement of the proposed changes: 1. Employees who have at least 5 years of service and who are at least age 55 have further death protection under the 1957 Survivor Program. Should such an employee die before retirement, his surviving widow may elect to receive either the basic death benefit or a monthly in- come equal to one-half the unmodified retirement allowance the em- ployee was eligible for on the date of his death. The monthly income is payable until the widow's death or remarriage with a guarantee that she will receive at least as much as she would have received ender the basic death benefit. 2. A monthly allowance shall be paid to certain survivors of a member who dies before retirement. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NEWPORT BEACH gives, and it does hereby give notice of intention to approve an aMend- ment to contract between said CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment and a summary of the major changes of the proposed amendment being attached hereto, marked Exhibits "A" and "B" and by this reference made a part hereof. ATTEST: �/ yr: -)..+- City Clerk September 20, 1971 (Date adopted and approved) 121. CITY COUNCIL OFF THE CITY OF NEWPORT BEACH BY e Name) itla) 7 Ret. Form 122 • # AMENDICRIT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES* RETIMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NET BEACH The Board of Administration, Public Eapleyses+ Retirement System, hereinafter referred to as Board, and the CITY COUNCIL of the CITY OF I4BWP0fT BEACH, hereinafter referred to as Public Agsney, having entered into a contrast under date of April 27, 194, effective July 1, 1945, which provides for the participation of Public Agency in said System, Board and Public' Agency hereby agree as tollones A. Paragraph 3 (d) shall be added to said contrasts 3 (d) Lifeguards on ocean beaches (herein referred to as least safety members)* 1. The following subparagraph shall be added to said oontract. 8 (c) Section 20019.3 (providing for inclusion of lifsgunrde sn mato beaches as local safety members). C. Paragraphs 9 (*) and 9 (b) shall be stricken from said sentree% and the following paragraphs substituted therefor, 9 (a) With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as aiscel meabsre of said System, de (1) percent on aeoount of the liability for current service benefits. 9 (b) With respect to local safety members, the pnblie agency shall coo- tribute the following percentages of monthly salaries earned as local safety members of said System, (1) 8.893 percent on account of the liability for current ssrria benefits. D. This amendment shall be attached to said **entreat and shell bosons effoss tivs on the 18th day of September, 1971 • Witness our hande this 20th day of August, 1971 • BOARD OF ADMINISTRATION PUBLIC EMPLOYEES* RETIREMENT SYSTEM CITT COUNCIL 01 THE CITE I! NEWPORT BEATS de ?residing floor Attests ealc Rot. yat l 702 i • ORDINANCE NO.1 4 0 1 r AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amendment to the Contract between the City Council of 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 A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of Newport Beach is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. This Ordinance shall take effect 30 days after, the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting rof the City Council of the City Newport Beach held on the 2U r» day of ,,/ u4.1 , 1971, and was adopted on the9r1' day of fiu&-u51- , 1971, by the following vote to wit: ` w w ATTEST: City Clerk } AYES,,nCOUNCILMEN: I+ t t2Tµ) Kos-kI,eS1 2 I ynoNS, kh ttNN"S, K../YNLN. (Jo&T4! NOES, COUNCILMEN: Nu Ala ABSENT, COUNCILMEN: Cleats L Mayor -2- D0'N:mh 7/16/71 G/1 AFFIDAVIT OF PUBLICATION NEWPORT HARBOR ENSIGN STATE OF CALIFORNIA) SS. County of Orange s r RVO r . ITI P r9 being first duly sworn, and on oath depose and say that I am the printer and publisher of the Newport Harbor Ensign, a weekly newspaper printed and published in the City of Newport Beach, County of Orange, State of California, and that the OR n7 NT ^ TTO *TO . 14;12 of which copy attached hereto is a true and complete copy, was printed and published in the regular issue(s) of said newspaper, and not in a supplement, ........1 consecu- tive times: to -wit the issue(s) of NI . 1 r'., 1971 (Signed) 62"--14Y-t, Subscribed and sworn to before me this Novo -.,'her , 19 71 Notar / - ublic in and for th Count of Orange, State of California. OFFICIAL SEAL MARY A. HAAPA Notary Public - California PRINCIPAL OFFICE IN OMY COMMISSION EXP RESN EGE CEMB ER 13 1971 LEGAL NOTICE ORDINANCE NO.1412 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTIHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN TIIE CITY COUN- CIL, AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EM- PLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amend- ment to the Contract between the City Council of 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 "Ex- hibit A," and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of Newport Beach is hereby authorized, empowered, and di- rected to execute said amend- ment for and on behalf of said Agency. SECTION 3. This Ordinance LEGAL NOTICE shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circula- tion, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was intro- duced at a regular meeting of the City Council of the City of Newport Beach held on the 26th day of October, 1971, and was adopted on the 8th day of No- vember, 1971, by the following vote to wit: AYES, COUNCILMEN: Kymla, Rogers, Hirth, Croul, Dostal, Par sons. NOES, COUNCILMEN: None. ABSENT COUNCILMEN: McIn- nis. ATTEST: E. F. Hirth Mayor ATTEST: Laura Lagios City Clerk Publish: Nov. 18, 1971, in The Newport Harbor Ensign. • �O /7 City Clerk Personnel Analyst City Clerk Resolution of Intention No. 7533. September 23. 1971 Enclosed is a signedipopy of subject resolution with attached certification for transmittal to the Board of Administration. Laura Legion LL:dg Encl. • STATE OF CALIFORNIA RONALD REAGAN, Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 Please Direct Your Reply to Section 23 Refer fa Member Account Number September 20, 1971 0- /fie / Mr. Frank Ivens Personnel Analyst City of Newport Beach City Hall 3300 Newport Blvd. Newport Beach, California 92660 The amendment to the contract between your agency and the Public Employees' Retirement System has been executed by our office. A dopy of the contract as amended is enclosed for your files. Encl. K • 11 K• ACTUARY Ret. Form 512 (Rev. 10/69) f 'i r 47 7s33 2'1 1971 ry O3U> C 71 c; iJ •:a n: CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER September 13, 1971 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT AGENDA ITEM g 3 RECOMMENDATION: Adopt a Resolution of Intention to approve an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System (PERS) to include Section 21365.5 (1957 Survivors Benefit) and Sections 21380-7 (1959 Survivors Benefit). DISCUSSION: Part of the agreement negotiated for Fiscal Year 1971-72 with the employees' associations included amending the existing contract with PERS to provide the 1957 and 1959 Survivors Benefits. Before the passage of Senate Bill 249, the only survivor protection man- dated by the Retirement System was the Basic Death Benefit which provided to the surviving widow the return of employee's contributions with in- terest, plus an employer furnished benefit equal to one month's salary for each year of service credited, to a maximum of six years of service. Senate Bill 249, passed by the Legislature and signed into law by Governor Reagan, extended, among other changes, the 1957 Survivors Benefit to all miscellaneous meMbers of the Retirement System effective July 1, 1971. This Benefit gives the option to the surviving widow of selecting either the Basic Death Benefit or one-half of the unmodified allowance computed as though the employee had retired on the date of his death, the only requirement being that the employee must have five or more years service within the System and be 55 years of age. The amendment to the contract proposed here extends this option to safety personnel. One other death benefit, on an optional basis, is available to employers: the 1959 Survivors Benefit. Employees working as of the effective date of the exercise of the option by the employer (City of Newport Beach) will be given the choice of being covered by this Benefit; those hired after that date will automatically be covered. The Benefit is available only to those employees not covered by Social Security as is the case in the City of Newport Beach. A premium of $2.00 per month is charged directly to the employee. Benefits payable under this option are payable only for death while in an employment status before retiring and are in addition to the 1957 Survivor Benefit or the Basic Death Benefit, as the case may be. Current benefits are: • To an eligible surviving widow (or dependent widower) until remarriage with two or more eligible children, or three eligible children only . . . $250 monthly. To an eligible surviving widow (or dependent widower) with one eligible child; or two eligible children only $180 monthly. To a surviving widow at age 62 (or dependent widower at age 65) until remarriage; or one eligible child only $ 90 monthly. Attached for further information are Exhibits A (Ret. Form 122) and B (Ret. Form 1171-1). Upon receipt of this. Resolution of Intention and following the routine procedures and time limits prescribed by law, the second document, an ordinance, will be prepared by PERS and forwarded for first and second readings in the next few weeks. Funding of these proposed amendments was accomplished during preparation of the Budget for Fiscal Period 1971-72. CE'' 3.[A)?w, ROBERT L. WYNN FI:bb Attachments AFFIDAVIT OF PUBLICATION NEWPORT HARBOR ENSIGN STATE OF CALIFORNIA SS. County of Orange j ARVO E. HAAPA , being first duly sworn, and on oath depose and say that I am the printer and publisher of the Newport Harbor Ensign, a weekly newspaper printed and published in the City of Newport Beach, County of Orange, State of California, and that the ORDINANCE NO. 1401 of which copy attached hereto is a true and complete copy, was printed and published in the regular issue(s) of said newspaper, and not in a supplement, 1 consecu- tive times: to -wit the issue(s) of Auk:. 19.t 1971 (Signed) c 1-4-- 4, Subscribed and sworn to before me this 20thday of August ,1971 Notfy Public in and for y3ie Co ty of Orange, State of California. OFFICIAL seAL MARY A. HAAPA Notary Public -California x1�► PRINCIPAL OFFICE IN ORANGE MY COMMISSION EXPIRES ECEMB RCOUNT13 1911 LEGAL NOTICE ORDINANCE NO. 1401 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE CITY COUN- CIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EM- PLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amend- ment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment be- ing attached hereto, marked "Exhibit A", and by such ref- erence made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of Newport Beach is hereby authorized, empowered, anddi- rected to execute said amend- ment for and on behalf of said Agency. SECTION 3. This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circu- lation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was intro- duced at a regular meeting of the City Council of the City of Newport Beach held on the 26th day of July, 1971, and was adopted on the 9th day of August, 1971, by the following vote to wit: AYES, COUNCILMEN: McInnis, Kymla, Rogers, Hirth, Dostal, Parsons. NOES, COUNCILMEN: None. ABSENT COUNCILMEN:Croul. E. F. Hirth Mayor ATTEST: Laura Lagios City Clerk Publish: Aug. 19, 1971, inthe Newport Harbor Ensign. TO: [J MAYOR L J COUNCILMAN ri ri Li ED L] Li Date 10-15-70 MANAGER ATTORNEY BUILDING CITY CLERK FINANCE FIRE GEN. SERVICES LIBRARY n ❑ I MARINA PARK MARINE SAFETY P ARKS & REC. PERSONNEL PLANNING POLICE PUBLIC WORKS PURCHASING TRAFFIC FOR: x1 ACTION & DISPOSITION 1 5111 FILE 1 INFORMATION ri REVIEW & COMMENT [] RETURN Remarks- Attached are a copy of resolution for your files cud a certified ..opy for :ha Public El: ployees Retirmt Systorn. imlf:asa send the Amendment to the Contract to my otuce for execution. CITY CI:: From • a •r• /410 / ;44,7 afr¢— /q77 r .; 1971 • 1971 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER July 26, 1971 TO: MAYOR AND CITY COUNCIL FROM: Acting City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT AGENDA ITEM: D- 4 Recommendation: Introduce for first reading an ordinance to amend the contract between the City Council of the City of Newport Beach and the Board of Adminis- tration of the Public Employees' Retirement System to reclassify lifeguards on ocean beaches to the safety category (instead of miscellaneous) with one-half pay at age 55 benefits. Discussion: Attached is Resolution No. 7295, dated October 12, 1970, by which the City Council notified the Board of Administration of the Public Employees' Retirement System (PERS) of its intent to amend the retirement -contract as specified above. This action was a result of the 1970-71 salary and employee benefit package approved by the City Council. The action recommended above is the next step required in the procedure prescribed by PERS to amend the existing contract. The final step requiring City Council action, the second reading of the ordinance, will be placed on the agenda for the next Council Meeting. eadiSlAgtatUS HIL BETTENCOURT Acting City Manager Enclosures: 3 • • Omit RESOLUTION NO. 7 2 9 5 • RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTi ACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC E'MPLOYEIS' Ri:TIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WHEREAS, the Public Employees' Retirement Law permits the participation of public agencios 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 required in the procedure to amend this contract is the adootion by the legislative body of the publio agency of a rosolution 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; and WHEREAS, .attached is a summary of the major provisions of the proposed plan which include lifeguards on ocean beaches as local safety members; NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NEWPORT BEACH gives, and it'does hereby give, notice of intention to approve an amend- ment to contract between said CITY COUNCIL and the Board of Administra- tion of tho Public Employees' Retirement System, a copy of said amendment and a summary of the major provisions of the proposed changes being attached hereto, marked Exhibits "A" and "B" and by this reference made a part.hereot. October 12, 1970 (Date adopted and approved) CITY COUNCIL OF THE CITY OF NEWPORT BEACH CE;T ED},E E, 7:iUE AND Co EC7 COPY CITY CLERK OF THE CI; Y OF ;..lVF0,2T BEACH DAM _....._:. Rot. Form 122 • EXHIBIT A 617 kg.E'rii"r TO COrl °'ACT FY;Ta:' :?:'i THE BOARD OP AnAINI. rTrATID'. PUBLIC :;flP oYn7,0 ii:T+.0 M}}'NT S? CITY CoU:c:t 0? THE CITY 07 :+c7ii'O1t.T EACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the CITY Cfi 'ACIL of the CI: Y OF 21 :, UftT BEACH, hereinafter referred to as Public Agency, having, entered into a contract under date of April 27, 1945„ effective July 1, 1945, which provides for the participation of Publte Agency in said System, Locrrd and Public Agency hereby agree as follows A. Paragraph 3 (d) shall be added to said contract: 3 (d) Lifeguards on ocean beachos (herein referred to as local nttety members). B. The following sub•paragrnph shall be added to said contract. 8 (g) Section 20019.3 (proviring for inclusion of lifeguards on ocean beaches es local safety members). C. Paragraphs 9 (a) and 9 (b) shall be stricken from said contract and the following paragr t; a substituted therefore 9 (a) with respect to miscellaneous members, the pablio agency shall contribute tho following percentages of monthly salaries earned as miscellaneous mecbera of said System: (1) 6.292 percent on account of the liability for current service benefits. 9 (b) Cith respect to local safety members, the public agency shall con- tribute the following percentages of monthly salaries earned as local safety mexbsre of said Systems (1) 8.393 percent on account of the liability for current service benefits. D. This amendment shall be attached to said contract and tine on the day of Witness our hands this 0? h^.•,I ISTRATIO a Iii,011; "S e fTIEUMENT SYSTZR 9Y William a. Payne, Executive Officer shall become eftec- • day of CITY COUNCIL 02 T & CITY O8 N.:WPORT MACH BY ?residing Officer\ ( Attests N1 P Clerk �i . • • 617 EXHIBIT B SUMMARY OF MAJOR PROVISIONS LOCAL SAFETY 1EMSMel - o]:E-KALF PAY AT 55 RETIRE: : T PROGRAM xis e.Iir eSe;I" Membership is compulsory for all employees, other than elected officials, mho are employed one-half time or more, except those excluded under the contract. • SSRVIcr RETIEMT The earliest retirement age is 50, discounted basis; the normal retirement age is 55; and the compulsory retirement age is 65. An employee may retire any time between there ages, 53 and 65, provided he meets the minimum requirements that he either have t500 of accumulated coetributiors, or 20 years of service, or have attained the compulsory retirement ago of 65. At normal retirement at see 55 tho unmodified life allowance mill be 50% of "final compensation" for those mho have coeeletod 23 or more years of ac:rvice contin::ously to that age. Those who have completed less than 20 years of service after 55 will receive an euneodificd life allowance of two and one-half (21%) per- cent of final compensation for each year cf service so rendered. "Final compensation" is average monthly salary (full time rate) earned during that period of three consecutive years of highest earnings, excluding overtime ccmpereatioa. A minim= service retirement allowance of $60 per month Is guaranteed upon compulsory retirement with credit for prior service, or upon retirement at age 55 with at least tt;a..:.p years of service. D7"n'IL?Tv RF rIRE'MT An employee becoming disabled to the extent that he is incapable of performing his duties stall be retired for disability. His disability mill be either employ- ment connected (industrial disability) or otherwise (nonindustrial disability). An employee who becomes disabled while a nester of this System for reasons arising out of his employment, will be eligible for a life income of fifty (50%) percent of his final compensation. • An employee becoming disabled for reasons not connected with his employment shall bo elieible for disability retirement provided he has at leant o500 of accumzuleted contributions or at least 10 years of service; such disability allow- ance in equal to 1.5 of final conpo•sation for each year of service, with a euarentee of ono -third of such final compensation fcr most employees who have ronder•ed at leant 10 years of service. The "ordinary" disability retirement allowance shall under no circumstances exceed the service retirement allowance which would become payable at ago 55 if employment could be continued to that age. MATH Y7eTcFIT3 !loath Before Retirement Basic '.oath Benefit This benefit is a refund of the neraberrs accumulated contributions plus six months' salary provided he has been a member for six years or tore. For those who die before completing six years of c:emberahip, the benefit is one morth's salary for each year of membership plus refund of contributions. The salary referred to is that earned during the year preceding death. Prior service does not count toward this benefit. Telustriel I?er_th if death is cervico-connected in the judgment of the In:A:atrial Accident Comeission, a monthly lemma is paid to the widow for life (or until remarriage) instead of the above basic death benefit. However, if she is also eligible for survivor benefits from Social Security because of the member's death, the State system benefit will bo reduced by the amount of such Social Security so long as Social Security benefits are payable (uscalty until the youngest child reaches 13 and after the widow reaches age 6?). The total, including Social Security, would be 50% of "final ccmoensation". If death was caused by external violence or physical force, the total benefit (including Social Security) would be increased to the following percentages of "final com- pensation" so long as the widow lives and does not remarry: Widow with 3 or more children under 18 75% Widow with 2 children under 18 7o% Widow with 1 child under 18 621% `oath Miter Retirement Tho death benefit is $500 if death occurs after retirement. This amount will be in addition to any payments which might be made under an optional retirement benefit chosen by the member at his retirement. T''F 'iit:n IO3 G ..irL Y''E;T Upon termination of employment, an employee w_'y either leave his contributions with the System and receive, upon attaining retirement age, the retirement benefit be he.s earned, cr he may withdraw his c ntribetions (plus interest), thus, terminat- ing hie membership in the System and receiving no rctira.:ent benefits. Sxccat, (1) a member with $500 or less in accumulated contributions and with lose than 20 years of service shell not have the privilege of leaving his contributions with the. • • 617 System, but shall autoncticelly have his contributions, plus interest, refunded upon termination of employment and (2) a me.-.i.;er into is trancferrinc to employment with another a;.:oncy which is covered under the system shall not have the right of withdrawing; his accumulated contributions. -^.r,• n- ,...i,. rh"TT +.v rr..�ti :.iJ._ :..o Each member makes monthly contributions to the System which are deducted from his salary. The rate of c.ntribution (percentage of pay) depends upon a momber's sex and are at entry into safety service. Such contributions, for cacio esaployees, with no nr:or service, currently range from a minimum of 5.6L% of salary to a maxi- mum of 12.55% of salary. The employer oleo contributes toward the cost of the benefits. The amount contributed by the employer for current service retirement benefits, will, on the ' average, exceed the cost to the employee. In addition, the employer bears the entire cost of prior service benefits, the industrial death end disability benefits. Ail contribution rates are subject to revision by the Board of Administration. t r- 7 STATE OF CALIFORNIA RONALD REAGAN, Governor PUBLIC EMPLOYEES' RETIREMENT SYSTEM 1416 NINTH STREET, P.O. BOX 1953 SACRAMENTO, CALIFORNIA 95809 December 15, 1971 Please Direct Your Reply to Section �3 Refer to Member Account Number Mr. Frank Ivens Personnel Analyst City of Newport Beach City Hall 3300 Newport Blvd. Newport Beach, California 92660 The amendment to the contract between your agency and the Public Employees' Retirement System has been executed by our office. A copy of the contract as amended is enclosed for your files. Encl. KS �At" J IUKY ACTUARY Ret. Form 512 (Rev. 10/69) ' J 410 AMENDMENT TO CONTRACT BETWEEN TBS BOARD CW ADMNISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NNWPORT SKM2R The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NEWPORT BEACH, hereinafter referred to es Publio Agency having entered into a contract under date of April 27, 1945, effective July 1, 1945, and as amended effective March 1, 19h8, November 1, 1951, April 1, 1956, and October 31, 1970, which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. The following paragraphs Shall be added to said contracts 8 (h) Section 2,365.5 (providing a monthly allowance in lieu of the basis death benefit for certain survivors of a member who dies in employ- ment after qualifying for voluntary service retirement). 8 (i) Section 21380-7 (providing for allowances for survivors of members covered under the program upon death before retirement). B. Paragraphs 9 (a) and 9 (b) shall be stricken from said contrast and the following paragraphs substituted therefore 9. Public Agency shall contribute to said Rstire*snt System as relieves a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said Systems (1) 8.15 percent on account of the lithility for current service benefits. b. With respect to local safety members, the public agency shall contribute the following pereentagss of monthly salaries earned as local safety members of said System: (1) 9.393 percent on account of the liability for current service benefits. C. This amendment shall be attached to said contract and shall became ease - tivs on the llth day of December, 1971 BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT swum At CITY COUNCIL OF THE CITY OF NNEWPORT BEACH BY e Prosiding baiter` Rots Farm 701 • • ORDINANCE NO. 1 4 1 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amendment to the Contract between the City Council of 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 A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of Newport Beach is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. This Ordinance shall.takeeffect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage thereof shall be published at.least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach, and thenceforth and thereafter the same shall be in full force and effect. This Ordinance was introduced at a regular meeting of the City Councilof the City Newport Beach held on the a474. day of Och to , 1971, and was adopted on the ('J. day of(yovemDcn 1971, by the following vote to wit: ATTEST: AYES, COUNCILMEN: NOES, COUNCILMEN: ABSENT', COUNCILMEN: Mayor City Clerk • C7_44d All I I /8/ OCT 261971 By The CITY COUNCIL CITY of NleePSM BEACH TO: • CITY OF NEWPORT BEACH OFFICE OF T�MANAGER October 26, 2971 • NOV 8 1971 Agenda Item D-4 By the CITY COUNCIL CITY C. N*WPd111T BEACH MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT RECOMMENDATION: Introduce for first reading an ordinance to amend the contract between the City Council of the City of Newport Beach and the Board of Administration of the Public Employees' Retirement System to include Section 21365.5 (1957 Survivors Benefit) and Sections 21380-7 (1959 Survivors Benefit). DISCUSSION: Attached is Resolution No. 7533, dated September 20, 1971, by which the City Council notified the Board of Administration of the Public Employees' Retirement System of its intent to amend the retirement.contract as specified above. The action recommended above is the next step required in the procedure prescribed by PERS to amend the existing contract. The final step requiring City Council action, the second reading of the ordinance, will be placed on the agenda for the next Council meeting. ROBERT L. WYNN FI:bb Attachments j-. • PERSONNEL COPY •'ESODUTION NO. 7 5 3 3 RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETNE N THE BOARD OF ADMINISTRATION OF DIE PUBLIC EMPLOYEES' R TIREM N'f SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH WREREAS, 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 ..WHERvEAS, one of the steps required 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 changes proposed in said contract; and WHER:,AS, the following is a statement of the proposed changes: 1. Employees who have at least 5 years of service and who are at least age 55 have further death protection under the 1957 Survivor Program, Should such an employee die before retirement, his surviving widow may elect to receive either the basic death benefit or a monthly in- come equal to one-half the unmodified retirement allowance the em- ployee was eligible for on the date of his death. The monthly income is payable until the widow's death or remarriage with a guarantee that she will receive at least as much as she would have received under the basic death benefit. A monthly allowance shall be paid to certain survivors of a member who dies before retirement. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NEWPORT BEAM gives, and it does hereby give notice of intention to approve an amend- ment to contract between said CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment and a summary of the major changes of the proposed amendment being attached hereto, marked Exhibits "A" and "B" and by this reference made a part hereof. ATTEST: Clerk ,J - Septenl;,-r 20, 1971 (Date acted and approved) CITY COUNCIL OF THE CITY pP NEWPORT BEACH • BY e itle) Ret. Form 122 AMEND= TO CONTRACT BET'.sfsN THE BOARD OF ADiOENISMATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE "'CITY 'CITY OF NEt'PORT BEACH EXHIBIT A The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NE'JPORT BEACH, hereinafter referred to as Public Agency having entered into a contract under date of April 27, 1945, effective Jul,- 1, 1945, and as amended effective March 1, 1948, November 1, 1951, April 1, 1956, and October 31, 1970, which provides for Participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. The following paragraphs shall be added to said contract: 8 (h) Section 21365.5 (providing a monthly allowance in lieu of the basic death benefit for certain survivors of a member who dies in employ- ment after qualifying for voluntary service retirement). 8 (i) Section 21380-7 (providing for allowances for survivors of members covered under the program upon death before retirement). B. Paragraphs 9 (a) and 9 (b) shall be stricken from said contract and the following paragraphs substituted therefor: 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous .members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 8.15 percent on account of the liability for current service benefits. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned as local safety members of said System: (1) 9.393 percent on account of the liability for current service benefits. C. This amendment shall be attached to said contract and shall become effec- tive on the day of BOARD OF ADMSINISTlATION PUBLIC E PLOYEESRETM4 NT SYSTEM BY William E. Payne, Executive Officer Attest: CITY COUNCIL OF THE CITY OF NE:WPORT BE j BY , 4114, i Pres dibi' Officer ... 0.71/4-74 • .v` Ret. Form 702 • • 617 OCT 12191U By The CITY COUNCIL CITY of mcwwotaT REACH CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER October 12, 1970 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENT Recommendation: Adopt a Resolution of Intention to approve an amendment to the contract between the City Council and the Board of Administration of the Public Employees' Retirement System to reclassify permanent employees of the Marine Safety Department, excluding clerical, from the miscellaneous category to the safety category with one-half pay at age 55 benefits. Discussion: As you will recall as a part of the 1970-71 salary and employee benefit package, the City Council approved in concept an amendment to the City's contract with the Public Employees' Retirement System to reclassify lifeguards to the "1-pay @ 55" formula. Based on that approval the Retirement System has prepared and forwarded to the City a Resolution of Intention to Approve an Amendment.to the Contract, the first formal document for execution by the Council. A copy of the Resolution (Form 122), a copy of the proposed contract amendment (Form 702), and a copy of a summary of the major provisions of the " '-pay @ 55 " formula are attached for your review. Following the routine procedures and time limits prescribed by law, the second document, an ordinance, will be prepared by the System and directed to you for first and second readings in the next few weeks. HARVEY L. HURLBURT CITY MANAGER HLH:DB:BL Enclosures: 3 • • _CERTIRICATIGN.CF. vain AXON OF GOVERNIA'G, BODY Board of Administration Public Employees' Retirement System Sacramento, California I hereby certify: That the Beach City Council 6-/317 November 6, 1970 Date adopted on July 27, 1970 of the City of Newport , by an affirmative vote of at least two-thirds of the members of said governing body, Amsn4ment to Ordinance No. 1347 approving the attached Contract between the governing body of said Agency and the Board of Administration of the Public Employees` Ordinance Retirement System, a certified copy of said approved form farriished by said Board of Administration being attached hereto. 1/_ 4,- 7o 7 9,�s1 CC�s...f" tgie- City Of Newport Beach in the Name of' Agency Ret. Form 130 (rev. 8/68) 300 ORDINANCE NO. 1347 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT. TO THE CONTRACT BETWEEN THE CITY COUNCIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amendment to the Contract between the City Council of 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 A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of'Newport Beach is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION 3. This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the. passage thereof shall be published at least once in the Newport Harbor Ensign, a newspaper of general circulation, published and circulated in the City of Newport Beach and thenceforth and thereafter the same shall be in full force and effect. Adopted and approved this 27th day of July. 1970, by the following vote, to wit: AYES, COUNCILMEN: McInnis, Kyn la, Rogers, Hirth, Croul, Dostal,'Parsons • NOES, COUNCILMEN: None ATTEST: ABSENT COUNCILMEN: None City Clerk Mayor THS:adw -2- 7/29/70 • eir� C_ / 3 y 7 • AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NEWPORT BEACH, hereinafter referred to as Public Agency having entered into a contract under date of April 27, 1915, effective July 1, 1945, and as amended effective March 1, 1948, November 1, 1951, and April 1, 1956, 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 July 1, 1945, and are hereby replaced by the following paragraphs numbered 1 through 11 inclusive: 1. A11 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 55 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945, making its employees as herein- after 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 provision 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: a. Local firemen (herein referred to as local safety members); b. Local policemen (herein referred to as local safety members); c. Employees other than local firemen and local policemen•(herein referred to as miscellaneous members). The following employees shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS k. The fraction of final compensation to be provided for'each year of credited current service as a miscellaneous member upon retirement at normal retirement age shall be 1/60 and shall be applied as pro- vided in Section 21251.1 of said Retirement Law. Ret. Form 702-1 • • • 5. The fraction of final compensation to be provided for each year of credited current service as a local safety member shall be determined in accordance with Section 21252.1 of said Retirement Law. 6. Benefits on account of prior service shall be 100% of the fraction of final compensation specified for miscellaneous members in Para- graph 4 above, but computed in accordance with Section 21253 of said Retirement Law, and for local safety members shall be 100% of the fraction established in accordance with Paragraph 5. 7. Contributions for miscellaneous and local safety members shall be subject to Sections 20601 and 20602 respectively of said Retirement Law. 8. The following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 20024.01 (defining "final compensation" on the basis of a period of three consecutive years). b. Section 21258 (b) (providing a minimum retirement allowance of $720.00 per year under certain conditions). c. Section 21367.51 (providing a $500.00 death benefit upon death after retirement). d. Section 20025 (providing for inclusion of compensation without limit in computations where compensation is a factor). e. Section 20952.5 (providing for age 50 as the minimum voluntary retirement age for local safety members with benefit payments commencing prior to age 55 subject to actuarial discount). f. Section 21251.75 (providing for increases in allowances payable for time commencing on the first day of the calendar month coinciding with or next following the effective date of this amendment to persons retired prior to January 1, 1967). 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly salaries earned as miscellaneous members of said System: (1) 6.292 percent on account of the liability for current service benefits. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned as local safety members of said Systems (1) 8.689 percent on account of the liability for current service benefits. Ret. Form 702-2 c. A reasonable amount per annum, as fixed by 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 the periodical investigations and valuation required by law, provided that said amount shall be determined on the basis of the number of employees of Public Agency who are reported as members on a payroll designated by the System covering one month of each year, or with respect to the first year of participation, on the effective date of said participation. d. A reasonable amount as fixed by the Board, payable in one install- ment as the occasions arise, to cover costs of special valuations on account of employees of Public Agency, and costs of the period- ical investigation and valuation 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 experience under the Retirement System, as determined by the periodical investigation and valuation required 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. If more or less than the correct amount of contribution is paid for any period, proper adjustment shall be made in connection with sub- sequent remittances or adjustment on account of errors in contribu- tions required of any employee may be made by direct cash payments between the employee and Board. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certi- fied checks, money orders, or cash. B. C This��ent shall be effective on the itttdr. . /at day of Witness our hands this TH BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM day of ,vn ✓k -4Y Bk 4 it 7 D . CITY COUNCIL OF THE CITY OF NEWPORT BEACH / BY c . V � J � BY i liam E. Payne, Execu ive • 4 cer Presiding Officer Attest: Clerk eta Ret. Form 702-3 • 317 tat i`'/U JUL 271970 By the CITY COUNCIL CITY OF NEWPORT BEACH By the Crni COUi•1 CIL CITY OF NEWPORT BEACH CITY Cr- N:, VPOtzi BEACH 1 OFFICE OF THE CITY MANAGER July 13, 1970 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENTS D-3 Recommendation: Introduce for first reading an ordinance to amend the contract between the City Council of.the.City of Newport.Beach and.the.Board of Administra— tion of the Public Employees' Retirement System to add Section 21251.75 of the Retirement Law. Discussion: As you will recall,.on.June.8, 1970, the City Council approved a Resolution of Intention to.amend the.contract'.between the City and the Public Employees' Retirement System to increase retirement benefits for certain retired employees. The action recommended above is the next steprequired in the procedures prescribed by the Public Employees' Retirement System to amend the Retirement Contract. The final step requiring City Councilaction, the second reading of the ordinance, will be placed on the July 27, 1970, Council Agenda. HARVEY L. HURLBURT HLH:DB:BL ATTACHMENT r' �. 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 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 changes proposed in said con- tract; and WHEREAS, the following is a statement of the proposed change: 1. Retirement allowances payable for time commencing on the first day of the calendar month coinciding with or next following the effec- tive date of this amendment to or on account of any person whose retirement became effective on or prior to December 31, 1966 are hereby increased according to a sliding scale ranging from two percent for those whose retirement became effective during the twelve months ending December 31, 1966, to a maximum of twelve percent for those whose retirement became effective prior to January 1, 1962. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NEWPORT BEACH gives, and it hereby gives notice of intention to approve an amendment to the contract between the CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, marked "Exhibit A" and by this reference made a part hereof. D AS THE QRIG CRY CLERK OF THE CITY OF NEWPOf4�BEACH /ate i97v pA114 ATTEST: i%1ci'. City Clerk 7 ..-etl-„ % 9 /97d e adopted a7&Ld approved) CITY COUNCIL OF THE CITY OF NEWPORT BEACH Mayor (Title) EXHIBIT A • 1 • �, •.. •' fir r;.nrd+ AMENDM NT TO CONTRACT BETWEEN THE r4, BOARD OP AmMINISTRRATION e 4' PUBLIC( EMPLOYE Z' RETIREMENT SYSTEM AND THE -� � e CITY COUNCIL 0P THE CITY OF NE°WPORT MACH The Board of Administration, Public Employeee Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NL'WPORT BEACH, hereinafter referred to as Publio Agency having entered into a contract under date of April 27, 1945, effective July 12 1945, and as amended effective March 1, 1948, November 1, 1951, and April 1, 1956, 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 July 1, 1945, and are hereby replaced by the. following paragraphs numbered 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 55 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1945, making its employees as herein- after provided, menbere 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 es by express provision thereof apply only on the election of contracting agencies. 3. Employees of Public Agenoy in the following classes shall become members of said Retirement System exoept such in *soh such class as are excluded by law or this agreement: a. Local firemen (herein referred to as local safety members); b. Local policemen (herein referred to es local safety members); e. Employees other than local firemen and local policemen (herein referred to ae miscellaneous members). The following employees shall be excluded from membership in said Retirement System: NO ADDITIONAL EXCLUSIONS 4. The fraction of final compensation to be provided for each year of credited current service as a miecellaneous member upon retirement at normal retirement age shall be 1/60 and shall be applied as pro- vided in Section 21251.1 of said Retirement Law.. The fraction of Final compensation to be provided for each year of credited current service as a local safety -member Shall be determined in accordance with Section 21252.1 of said Retirement Law. 6. Benefits on account of prior service shall be 100% of the fraction of final compensation specified for miscellaneous members in Para- graph !t above, but computed in accordance with Section 21253 of maid Retirement Law, and for local safety members stall be 100% of the fraction establinhed in accordance with Paragraph 5. 7. Contributions for miscellaneous and local safety members shall be subject to Sections 20601 and 20602 respectively of said Retirement Law. 8. The following additional provisions of the Public Employees' Retire- ment Law which apply only upon election of a contracting agency shall apply to the Public Agency and its emaloyeess a. Section 20024.01 (defining "final compensation" on the basis of a period of three consecutive years). b. Section 21258 (b) (providing a minimum retirement allowance of 4720.00 per year under certain conditions). c. Section 21367.51 (providing a 4500.00 death benefit upon death after retirement). d. Section 20025 (providing for inclusion of compensation without limit in computations where compensation is a factor). e. Section 20952.5 (providing for age 50 as the minimum voluntary retirement age for local safety members with benefit payments commencing prior to age 55 eubjeot to actuarial discount). f. Section 21251.75 (providing for increases in allowances payable for time commencing on the first day of the calendar month coinciding with or next following the effective date of this amendment to persona retired prior to January 1, 1967). 9. Public Agency shall contribute to said Retirement System as follows; a. With respect to miscellaneous members, the public agency shall contribute the following percentages of monthly Salaries earned as miscellaneous members of paid Systems (1) 6.292 percent on account of the liability for current service benefits. b. With respect to local safety members, the public agency shall contribute the following percentages of monthly salaries earned ae local safety members of said Systems (1) 8.689 percent on account of the liability for current service benefits. Ret. Torn 702-2 o. A reasonable amount per annum, as fixed by Hoard to cover the costs of administering said System au it affeote the employees of Public Agency, not including the posts of special valuations or the periodical investigations and valuation required ty law, provided that said amount shall bo determined on the basis of the number of employees of Public Agency who are reported as members on a payroll doeirnated by the System covering one month of each year, or with respect to the first year of participation, on the etfeotiva date of said participation. d. A reasonable amount as fixed by the hoard, payable in one 'natall- went as tho occasions arise, to cover costs of special valuations on account of employees of Public Agency, and costs of the period. seal investigation and valuation 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 experience under the Retirement System, as determined by the periodical investigation and valuation required 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. If more or lees than the aorreot amount of contribution is paid for any period, proper adjuntront shall be made in connection with sub- sequent remittances or adjustment an account of errors in contribu- tions required of any employee may be made by direct cash paymvnta between the employee and Hoard. Payments by Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certi- fied checks, money orders, or cash. H. This amendment shall be effective on the day of Witness our hand, this day of . MART) OP APHI)IBTRATION PUBLIC ID1PL0TZES' RETIREMENT SYST&i BY William U. Payne, 2xecutive officer CITY COUNCIL OF THE CITY or RILWPORT RUCH iesIding,dr 'dr G. Att Clerk Ret. Vorm 702-3 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the CITY COUNCIL (Governing Body) of the CITY OF NEWPORT BEACH (Name of Public Agency) on J� �, 9 70 , appearing at Page / 3 3 (Date) Volume of the (Minutes) (Official Records) of the CITY COUNCIL (Governing Body) • I actml It or Secretary of the Board get: Porn 94 (Rev. 5/69) 2C0 AFFIDAVIT OF PUBLICATION NEWPORT HARBOR ENSIGN STATE OF CALIFORNIA ss. County of Orange s I, AR Q.... • HAAPA , being first duly sworn, and on oath depose and say that I am the printer and publisher of the Newport Harbor Ensign, a weekly newspaper printed and published in the City of Newport Beach, County of Orange, State of California, and that the ORDINANCE NO. 1347 of which copy attached hereto is a true and complete copy, was printed and published in the regular issue(s) of said newspaper, and not in a supplement, ......1 consecu- tive times: to -wit the issue(s) of Aug. 6, 1970 (Signed) Subscribed and sworn to before me this 14th day of AuQvst , 19 70 Notary ublic in and for th County of Orange, State o California. (71 OFFICIAL SEAL MARY A. HAAPA Nr" +tv Public - Cr:Hornio PSINC,. AL OFFICE IN NY C; p.q ORANGE COUNTY _ : i j -t,- EY FCEM , 13� 1971 LEGAL NOTICE ORDINANCE NO. 1347 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMEND- MENT TO THE CONTRACT BETWEEN THE CITY COUN- CIL AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EM- PLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amend- ment to the Contract between the City Council of the City of Newport Beach and the Board of Administration, California Public Employees' Retirement System, is hereby authorized, a copy of said amendmentbeing attached hereto, marked "Ex- hibit A", and by such reference made a part hereof as though herein set out in full. SECTION 2. The Mayor of the City of Newport Beach is hereby authorized, empowered, and directed to execute said amendment for and on be- half of said Agency. SECTION 3. This Ordinance shall take effect 30 days after the date of its adoption, and prior to the expiration of 15 days from the passage there- of shall be published at least once in the Newport Harbor Ensign, a newspaper of gen- eral circulation, published and circulated in the City of New- port Beach and thenceforth and thereafter the same shall be in full force and effect. Adopted and approved this 27th day of July, 1970, by the following vote, to wit: AYES, COUNCILMEN: Mc- Innis, Kymla, Rogers, Hirth, Crou1, Dostal, Parsons. NOES, COUNCILMEN: None. ABSENT COUNCILMEN: None. E.F. Hirth Mayor ATTEST: Laura Lagios City Clerk Publish: Aug 6, 1970, in the Newport Harbor Ensign. ORDINANCE NO, 1 3 4 7 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL,AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Newport Beach does ordain as follows: SECTION 1. That an amendment o the Contract between the City Council of the City of Newpor• Beach and the Board of Administration, California Public Em. oyees' Retirement System, is hereby authorized, a copy of sa amendment being attached hereto, marked "Exhibi A", and , such reference made a part hereof as though herein =et ou in full. SECTION 2. The =y.r of the City of Newport Beach is hereby authorized, empowere,', and directed to execute said amendment for and on behal said Agency. SECTION 3. Th': Ord nance shall take effect 30 days after the date of its a.option, nd prior to the expiration of 15 days from the passa:e thereof .hall be published at least once in the Newport arbor Ensign, a newspaper of general cir- culation, published = d circulated i the City of Newport' Beach and thenceforth and thereafter the s and effect. e shall be in full force Adopted and approved this 13th day of July, 1970. Mayor ATTEST: City Clerk THS:adw 7/8/70 D3 • o -146--) n-c.) y a- /9- J y BOAPD pP AORINI3TRATION DONALO GALLAGHER. PR[Olp[NT WALTER C. KEHNEDY, VICE PRESIDENT JOHN R. CORNWELL RALPH K. COWING JAMES S. DEAN THEODORE H. JENNER ROT C. FLOSS HAROLD H. ROBINSON STATE OF CALIFORNIA BOARD OF ADMINISTRATION *ate uliptarees' !Id-jum.S **stem 1320 K STREET SACRAMENTO 14 November 19, 1951 City of Newport Beach City Hall Newport Beach, California Attention: Mr. J. A. Gant Gentlemen: EARL W. CHAPMAN EXECUTIVE OFFICER RALPH R. NELSON ACTUARY EDWARD K. COOMBS ASSISTANT EXECUTIVE OFFICER LAUREN C. HAIGHT ASSISTANT ACTUARY PLEASE DIRECT YOUR REPLY TO SECTION REFER TO MEMBER ACCOUNT NUMBER The Board of Administration has approved the Amend- ment to the Contract between the City of Newport Beach and the State Empioyeest Retirement System. The Contract, already executed by the officials of said Agency, has now been executed by the officials of the Board of Administration on November 16, 1951. A copy of the amended contract is enclosed for your files. me Encl. v EIVEID AI. NII.YENT TO CONTRACT BETWEEN T} L r n 1 1051 BOARD 0F ADMINISTRATION ..- STATE EMPLOYEES' RETI s;1• T AND CITY COUNCIL (Governing Body) OF THE CITY OF NEWPORT BEACH (Name of Public Agency) The Board of Administration, State Employees' Retirement System, and the CITY COUNCIL of the CITY OF NEWPORT BEACH , (Governing Body) (Name of Public Agency) hereinafter referred to as Agency, having entered into a contract under date of April 27 , 19 47 , effective July 1 , 19 1,7 , which provides for the participation of said Agency in said Retirement System, and said Contract being based on the Retirement Law exclusive of amendments thereto which changed benefits and ages of retirement, said Board of Administration and said CITY COUNCIL hereby agree as follows: (Governing Body) 1. Paragraphs3a, lF, 5 and 6 shall be and are hereby stricken from said Contract. 2. The following paragraphs shall be and are hereby added to said Contract: h. Age 60 shall be the normal age for retirement for service, of persons who are miscellaneous members because of employment by Public Agency, that is, members other than Local Firemen, Local Policemen or County Peace Officers, and one -sixtieth shall be the fraction of final compensa- tion, as defined in said Retirement Law, to be provided for each year of service as a member upon retirement at age 60, and the provisions of Section 21251.1 of said Retirement Law, providing for a guaranteed percent- age of said final compensation, shall apply. Prior service benefits to miscellaneous members employed by Public Agency, that is, members other than Local Firemen, Local Policemen, or County Peace Officers, upon retirement for service, shall be allowed only as a percentage of the average salary specified in Section 21253 of said Retirement Law, for each year of such service, and said percentage shall be 100 per cent of the percentage determined under said Section for the age at retirement. Age 55 shall be the minimum age for retirement for service, of persons who are members because of employment by Public Agency as Local Firemen, Local Policemen or County Peace Officers and the provisions of Section 21252.14 of the State Employees' Retirement Law, providing for a guaran- teed percentage of final compensation for each year of current service as a member, shall apply to such members. 7. Benefits on account of prior service, that is, service credited hereunder as rendered to Public Agency prior to the effective date of participation, to respective persons who are members because of employment by Public Agency as Local Firemen, Local Policemen or County Peace Officers, shall be allowed only as a percentage of the average salary specified in said Retirement Law, for each year of such service, and said percentage shall be 100 per cent of the fraction of final compensation, as defined in the F703-1 (47-119 514) 6/51 450 0 � • State Employees' Retirement Law, for each year of service rendered after said date, as determined for said respective members under said law, for retirement for service at age 55, or upon qualification for service retirement at a higher age. if a member retires for service before attaining age 55, his prior service pension shall be reduced to that amount which the value of the pension as deferred to age 55 will purchase at the actual age of retirement. The provisions of Section 21258b of the State Employees' Retirement Law, guaranteeing a minimum ret r�reemeennt allowance under certain conditions shall apply to persons who are members because of employment by Public Agency. L/0. The provisions of Section 21367.5 of the State Employees' Retirement Law, providing a $300 death benefit after retirement shall apply to persons who are members because of employment by Public Agency. J10. The provisions of Section 20025 of the State Employees' Retirement Law, providing that there shall he no maximum limitation in the compensation which shall be included in computations under the Retirement Law, shall apply to employees of Public Agency who become members of said Retirement System. 111.Public Agency shall contribute to said Retirement System as follows: a. The sum of 3 14,616.00 per annum, or more frequent installments as Board shall require, for the period of years stated in said Contract, less the time elapsed from the date of participation to the effective date hereof. b. 5.617 per cent of total salaries paid by Public Agency each month to its employees who are members of said Retirement System, provided that only salary earned as members of said System shall be included in said total salaries, and the employees who are members of said System shall include employees who are members upon the effective date hereof and employees ;vho become members thereafter. c. A reasonable amount per annum, as fixed by 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 peri- odical investigation and valuation required by law, provided that said amount shall be determined on the basis of the number of employees of Public Agency who are members on July 1st of the respective fiscal years. d. A reasonable amount as fixed by the Board, payable in one installment from time to time as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and the .."1"t e's-4l iCEa LY F703-2 (47-49 SR) 6/51 450 costs of the periodical investigation into the experience under said Retirement System, as it affects said employees, and the valuation of the assets and liabilities of said System on account of said employees. Contributions required of Public Agency and its employees shall be subject to adjustment by the Board of Administration on account of amendments to the State Employees' Retirement Law, and on account of experience under the Retirement System, as determined by the periodical investigation, valuation and determination provided for by said Retirement Law. 12. Contributions required of Public Agency under the paragraph immediately preceding, and contributions required of Public Agency's employees who are members of said System, shall be paid by Public Agency to the State Employees' Retirement System within thirty days after the end of the month or longer period to which said contributions refer. If more or less than the correct a'nount of contributions required of Public Agency or its employees is paid for any period, proper adjustment shall be made in connec— tion with subsequent remittances of Public Agency to the Board, to rectify the errors; or such adjustments on account of errors made in contributions required of employees, may be made by direct cash payments between the employee in connection with whom the error was made, and Board. Payments of Public Agency to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. 3. Benefits, including retirement allowances, prior to the effective date of this amendment, shall not be affected by this amendment, unless otherwise provided herein. 4. This amendment shall be attached to said Contract and shall be effective as of November 1 , 1951 . Witness ++itness our hand this /02 fT day of (/ eAt Attest: Clerk , 19-%. CITY COUNCIL of Name of Legislative Body CITY OF NB T BEACH Name of Public Agency VC fficer BOARD OF ADMINISTRATION STATE EMPLOYEES' RETIREMENT SYSTEM BY Fresicent, Board of Administration Nov 1 '31951 F7o3-3 (47-49 SZ!) 6/51 45o •41/ STATE OF CALIFORNIA • BOARD OF ADMINISTRATION • State Empiaged ief rement $gttem 1320 K STREET SACRAMENTO14 April 23, 1956 City of Newport Beach City Hall Newport Beach, California Attention: Nh'. Gordon L. Sickler Gentlemen: PLEASE DIRECT YOUR REPLY TO SECTION 23 REFER TO MEMBER ACCOUNT NUMBER The Board of Administration has approved the amendment to the contract between your Agency and tbe State Employees' Retirement System. The contract, already executed by the of- ficials of said Agency, bas now been executed by tbe officials of tbe Board of Administration at the last meeting. A copy of tbe amended contract is enclosed for your files. we Encl. ._._m re-4- J CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER June 8, 1970 TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENTS F-4 Recommendation: Adopt and approve a Resolution of Intention to amend the contract between the.CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System. Discussion: As you will recall, on May 11, 1970, the City Council approved in concept an amendment'.to.increase retirement benefits for certain retired employees. Following the procedures prescribed by the Public Employees' Retirement System, the Council authorized the staff to notify the System of the City's intent to amend the Retirement System.contract to add Section 21251.75 of the Retirement Law to the City's contract and to request the System to prepare the necessary documents to be executed by_the City Council. The first document for execution by the Council, a Resolution of Intention, has been prepared by the System for your approval. A copy is attached for your review. Following the routine procedures and time limits prescribed by law, the second document, an. ordinance, will be prepared by the System and directed to you for first reading on June 22 and second reading on July 13. The ordinance will be- come effective August 12, and the amendment will become effective August 22, 1970. HARVEY L. HURLBURT HLH:DB:BL Enclosures 2 • • RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PU➢LIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF NSW?CRT 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 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 changes proposed in said con- tract; and WHEREAS, the following is a statement of the proposed change: 1. Retirement allowances payable for time commencing on the first day of the calendar month coinciding with or next following the effec- tive date of this amendment to or on account of any person whose retirement became effective on or prior to December 31, 1966 are hereby increased according to a sliding scale ranging from two percent for those whose retirement became effective during the twelve months ending December 31, 1966, to a maximum of twelve percent for those whose retirement became effective prior to January 1, 1962. NOW, THEREFORE, BE IT RESOLVED, that the CITY COUNCIL of the CITY OF NEWPORT BEACH gives, and it hereby gives notice of intention to approve an amendment to the contract between the CITY COUNCIL and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, marked "Exhibit A" and by this reference made a part hereof. (Date adopted and approved) CITY COUNCIL OF THE CITY OF NEWPORT BEACH BY (Name) r (Title) • • EXIiIBIT A A IENPMSNT TO COTMACT BETil':sEN THE PUBLIC OF Ert`::'i?:]::'flATION PUBLIC EMPLOYE 'S+ fe..TIN. M:eNT SYSTEM AND THE CI77 Cr).;' CIL OF TIE CITY OF N'JwmT BEACH The Board of Administration, PublicEmployees' Retirement System, hereinafter referred to as Board and the CITY COUNCIL of the CITY OF NONeORT MACH, hereinafter referred to as Public Agency having entered into a contract under date of April 27, 1945, effective July 1 1945, and as eeonded effective March 1, 1948, November 1, 1951, and April 1, 1956, 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 July 1, 191:5, and are hereby replaced by the following paragraphs numbered 1 through 11 inclusive: 1. All weirdo and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Noreal retirement age" shall mean age 60 for miscellaneous members and age 55 for local eafety members. 2. Public Agency shall participate in the Public Employees' fletironent System from and after July 1, 1945, making its a p1oyces an herein- after provided, rembers of raid system subject to all provishens of the Public Employees' Zetirement 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 provision thereof apply only an 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: a. Local firemen (herein referred to ae local safety meehers); b. Local policemen (herein referred to as local safety members); o. Eeployees other than local firemen and local policemen (herein referred to as miscellaneous members). The following employees shall be excluded from r:embership in said Retirement System: ,i0 ADDITICttAL EXCLUSIONS 4. The fraction or final coTLpc,rsa.tion to be provided for each year of credited current service as a misce lar.::oan member upon retirement at normal retirement age shall bo 1/GO and shall be ay,plicd as pro- vided in Section 21251.1 of said Retirement Law. :et..Form 702-1 a2 The fraction of final compensation to be provided for each year of credited current service an a local safety member shall bo determined in accordance with Section 21252.1 of said Rotirenont Law. 6. Benefits on account of prior service a:all bo 100% of tho fraction of final ccrpcncation specified for miscellaneous mc..:bers in Pc:ra- rra;eh la rbove,, but computed in rccordance with Section 21253 of &aid Retirement Law. and for local safety members stall be 100 of the fraction establinhed in accordance with Paragraph 5. 7. Contributions for miscellaneous and local safety members stall be subject to Sections 20601 and 20602 respectively of said Retirement Law. 8. The following additional provisions of the Public Employees' Retire- ment Law which apply only neon election of a contracting agency shall apply to the Public Agency and its employees: a. Section 20024.01 (defining "final connpenaation" on the basis of a period of three consecutive years). b. Section 21258 (b) (providing a minimums retirement allowance of $720.00 per year under certain conditions). o. Section 21367.51 (providing a t500.00 death benefit upon death after retirement). d. Section 20025 (providing for inclusion of comaensation without limit in computations where compensation is a factor). o. Section 20952.5 (providing for age 50 as the minimum voluntary retirement awe for local safety members with benefit paynonts commencing prior to age 55 subject to actuarial discount). f. Section 21251.75 (providing for increases in allowances payable for time commencing on tho first day of the calendar month coinciding with or next following the effective date of this amendment to persona retired prior to January 1, 1967). 9. Public Agency shall contribute to said Retirement System as follows: a. With respect to miscellaneous members. the public twenty shall contribute the following percentanes of monthly salaries earned as miscellaneous members of said Systems (1) 6.292 percent on account of the liability for current service benefits. b. With respect to local aafoty members. the publio agency shall contribute the following percentages of monthly salaries earned as local safety members of said Systeme (1) 8.659 percent on account of the liability for current service bo .:fits. Rot. Form 702-2 • • C. A reasonable amount per annum, as dj.X(d by Bard to cover the cots of adrttnistori.n:; :eld 3y tee 3s it affects the en.1o„Cos of Public Aeency, net tecludi ng the costa of spcc:al velurt'_ors or the periodical invoctieet:ions and valuation required ky law, provided that said amount ehall co deL :aired on the breis of the number of employees of Public Leency who are roeorted as members on a payroll desieeated by the 8ynten covering ono month of each year, or with reepcct to the first year of participation, an the effective date of said participation. d. A reasonable craount as fixed cy the Board, payable in one Instell- nent as tho occaeiena arise, to cover costs of special valuations on account of employees of Public Agency, and coats of the period- ical investiiation and valuation required by law. 10. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of aeend;ents to the Public is oioyeeal Retirement Law, and on seccunt of experience under the Retirement :yste;a, as determined by the eeriodical investigation and valuation required by said Retirement Law. 11. Contributions required of 'Public Agency and its employees obeli be paid by Public Agency to the Retirement System within thirty days after the c e of the period to which said contributions refer. If more or leas than the correct amount of contribution is paid for any period, proper ndjuntnent 'hall be made in connection with sub- sequent remittances or adjustment on account of errors in contribu- tions required of any employee may be made by direct cash payments between the employee and Board. Payments by Public Agency to Board may be grade in the form of warrants, bank checks, bank drafts, certi- fied checks, money orders, or cash. B. This amendment shall be effective on the day of Witness our hands this . BOARD OP AT IHISTcRAT1OU PUBLIC EMPLOIEW BBTIRE!'V NT STSTE:i BY William h. Payne, ixeoutive Officer day of . CITY COUUCIL OF THE CITY OF eFAMO T C f.CH re. 3Y ,Preeidingeeff ecir T Att€.9t• ti•6' a t Clerk • • CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 7, 1970 fly the 'T( COUNCIL CITY TO: MAYOR AND CITY COUNCIL FROM: City Manager SUBJECT: RETIREMENT CONTRACT AMENDMENTS Recommendation: By motion, authorize the staff to notify the PublicEmployees' Retirement System of the City's intent to amend the Retirement System -contract to add Section 21251.75 of the Retirement Law, and to request the System to prepare the necessary documents to be executed by the City Council under the time limits as prescribed by law as follows: 1. June 8 Adoption of Resolution of Intention.to.amend contract with the Public Employees' Retirement System. 2. (unnecessary) Employee election. 3. June 22 First reading of ordinance to adopt amendment to P.E.R.S. contract. 4. July 13 Final reading of ordinance. (Must be at least 21 days after Resolution of Intention.) 5. July 13 Effective date of ordinance. 6. July 25 Effective date of P.E.R.S. amendment. (Must be the first day of a payroll period subsequent to the effective date of the ordinance.) Discussion: In July, 1969, the City Council authorized the staff.. torequest actuarial valuations and additional information from the Public Employees: Retirement System to determine the exact costs and benefits of seven amend- ments to enable further study of the possibility of increasing retirement benefits for retired employees and for employees who are now working. Follow- ing are brief descriptions of those seven amendments. Contract amendments which would affect those employees who are now retired: 1. Section 21251.75 of the Retirement Law, Assembly Bi11.13,_which provides a one-time cost of living increase in retirement allowances and other benefits. 2. Section 21251.35 of the Retirement Law which allows an increase in retirement allowances of retired members who retired prior to November 1, 1951. 4 MAYOR AND CITY COUNCIL • Page 2 • Contract amendments which would affect those employees who are -now retired and those who are now working: 3. Section 21264 of the Retirement Law known as the One-half.Continuance Benefit which provides that one-half of a retired safety member's retirement allowance would continue to the member's surviving widow or minor children at the time of his death after retirement. Contract amendments which would affect those employees who are now working: 4. Section 21365.5 of the Retirement Law known as the '57 Survivor provision which gives the option to the survivingwidow-of an employee who dies in employment after qualifying for voluntary service retirement to elect a life income in lieu of a cash refund. 5. Section 21380.7 of the Retirement Law known as the '59 Survivor provision which provides a.benefit.of $90 per month for.each eligible survivor of an employee who dies before retirement. 6. A provision which would bring Marine Safety Department employees into the Safety Series. 7. A provision known as the Highway Patrol Formula which.lowers.the retirement age of members of the Safety Series (Police,.Fire.and Marine Safety personnel if No. 6 above were adopted) from_55:years to 50 years and pays a retirement benefit of 2 percent per year of service. The actuarial valuations and additional information which were.requested.July 30, 1969, were received last month and have now been reviewed by the staff. Analyses of the valuation data and information that applies to amendment -Nos. 1 and 2 listed above follow for your. consideration. It is anticipated that -analyses and recommendations on amendment Nos. 3 through 7 will be made as 'a part•of the salary and benefit package which you will be receiving later thismonth.. inasmuch as those amendments are essentially changes in the benefit program for:employees. who are now working. (Amendment No. 3, if adopted, would also affect 19 retired safety employees. A discussion of this will be included in the subsequest recommen- dation). Amendment No. 1 -- Assembly Bill 13, passed by the legislature in 1968 and contained in Section 21251.75 of the Retirement Law .enables a P.E.R.S. Contractamendment to pro- vide a one-time cost of living increase in retirement allowances,special death benefits and certain allowances for survivors where retirement or death occurred prior to December 31, 1966, in percentages determined by year of retirement.or-death increas- ing in yearly increments of 2 percent. If adopted, this amendment would apply to retired City of Newport Beach employees as follows: Period during Which Retirement Percent of Became Effective Increase 0n or before 12-31-61 12 months ended 12-31-62 12 months ended 12-31-63 12 months ended 12-31-64 12 months ended 12-31-65 11. man):hphn.nd 19...11-AA 12% 10 8 6 4 Number.of.Retired Employees Affected 27 1 3 9 4 11-____ MAYOR AND CITY COUNCIL • Page 3 • These 55 employees will realize an annual increase in retirement benefits totaling $8,750, for an average annual increase per retired employee of $159. Increased annual cost to the City based on current payroll to adopt this contract amendment is as follows: Approximate Increased Percent of Payroll Annual Cost Miscellaneous 0.153% $4,790 Safety (Fire and Police) 0.247% 4,430 TOTAL $9,220 The cost to the City will, or course, increase as total payroll increases. Amendment No. 2 -- In response to the staff's request, the Retirement System researched its records and determined there are no employees who retired.prior to November 1, 1951, receiving retirement benefits. Hence this amendment need not be considered further. This item is included on the May 11 Council Agenda for discussion. If you have questions prior to that, I will be happy to discuss them with you. ��-0 > ,-t -- HARVEY L. HURLBURT HLH:DB:BL ' ♦ 4 V/c d. Exhibit "A" TO CONTRACT BOARD OF a STATE , q IE ARUMnWic �ccc'}tl or CIT! OF NEWPCOT £WI ?be Board of hieiadstaatiaai State fieleyeest htetdreenat Spasms and the CITE COUNCIL of the CITY ar SUPoT MON, lr2olauttI v referred to as Apays having entered into a conteect under date of April 27i 190t offenttve July 1! ]9h7e shut provides fen• the participation of said Ageny in said Aetirnment System and said Contrast being band on the Retirement Laay a oluadve of aue9aaats thereto which changed benefits and ogee of retirements sold Board of Avhdedstras tisa and said CITY COUNCIL ben agree as fellows' 1. Paragraph 9 shallbe end is horsy striatum fen said Qsatraet. 2. The following paragraphs shall be and are hereby added to end Connote 4. The provisisme of nation 21367.51 of the State ltepleyeese Retirement Les, providing s 600 death basntit after sent SMALL APPLE to persona who ere sewers bass of amtplaraet !Iy ratio Aguas 13. The provisions of Amman 20024.01 of the State hmployees' Retirement Lees whist provide that eflaal eampaneettinu shell seam the highest avenge anneal eamposseation ea nablse hi a ember during ey parted of three oonnentive years wring his awaabenhlp la the System. SHALL APPLY to *apleyeme of Mlle Agent bacon ambers of said Retirement Systems The prewrsdens of Sectlo 20952.5 of the stetshhsplepeea+ Retirement Lair which provide ap 50 as the mina voluntary retirement for Leval Firemen aoi Moat Felleemen Mat APPLY to at Pettis Ageny S become ranters of the Retirement Systee so Loral Firemen or basal Ptellsamen. 3. The net of 'sob sppliaatioy except paragraph 9s not landing itself to ready deburalnatian isshall be determined by the nerd of Administration et the proper and is the same weer as other eant33bnffion thereafter required of Agonyunder said Contracts and sy S3tetmnt detonsadaed by the Beard as necessary *ball be included in the aoatrlbutlens thereafter required of Agemy under said Castara*t. h. The amount sheen in paragraph lla shall read $23,87348. 5. The person stated in personaelib shall be ended to reed 6.0ff. 6. This rind ant shall be attached to amid Contrast and shell be effestin as of April 1, 1956 • Witness our head this \ � day ads M v..� $ 4% . lb. WARD CS AIMINISTRAUCti STATE IIIPLOUSS1 ISTIRVIONT SMIRK Alegi i]meostiie Mime Apr 13 1956 CIA! CCONCIL UP T8 cx° !r OF ABACN Ei Officer - Mayor Meets City 5c � STATE 1L r1TW tEEaSaf IRE,T'J IE^fu1,EN SACWARTENjI iLCALilIRORdN'IA o nwrraEN G 1T, Ca UNCIL _._. NrA+ne uti 4I':nc siriva 111,iur -0E CJTT'r On i% NO:eT' !BEACf FVn" 1? di7 l ift tiMitdQuldl<¢nmio'` ANpi E' B.®AWRwD ,£.DMI=N"'ISTRVA' TIU I Or THE t9 Y2S1T!E M e CALIFORNIA STATE, EMPLOY* RETIREMENT S'TiS'T M g3 griMment I�� f. naudc thls _ _ dayiYof--' 1L94' a` „byrandrbetwccj the' Le'slazivei+BS>iirrof_ 02.3 v aQ'e," 1'x l here1 affiter IrcfCrred,'�]tas rfh fan I�ltyfj" dlcl.Boar{d foff-Admoustratibn 4Ca li'foonfai SStaie EingloyeesPlR&tirchlentS};Stem, ihereaf er cfcr^rtdy o as .Bast L,.. W TEN E,55EiTiHt: In��onsi�atuv,nro 1 ,cicii cnangns,ta`i,rcmcnes+htrunafitcr.lcontal"n^cduand�.ronaehe�part .rofil6othparfies�tbAtei�kepe C b .tnd performedL Gi » andl Boacd,ihcreb a rce as followg_ lr C s,:g4i s6igiparn paCe tirtfc Stlu Employiggs' Riti.,tlrcrn Rb ireement=.Ser+"Y Rreeir`emettt«P:e re etaehed�h:,iefTr+merleed". [his`Fagr menras»[} oug wh }re_remJseS;outun..ull� after ,System ysub/c t thoprovlsior 4iitig3tatcSEmployee f, mbitsvil aondgby suelurefereneehs herebrrnadeaupartaof 21 City sh`�elll 1parii pate try rsairdl Retir`crncrit Sys crn lmaking ;its ii.mploycesj lmwnbcrs7!of% Ivildl Systcin, fironu - nd 3.1a17' 1 _ 1594'S.v 11mplcryhccsfof'''C-05151Chhetf l>wtnlxclaysesishlllllhc.onig9mcmbcps/of saichgtg_iliremenrSy/renxmulcconsiancciAsinh,; the prf;uisibri f rsa d17Rcu men't %sct l o ran ngjC ncn Gcrshipl 1? liJircetrc`mcnt S"ys[cm; andlsublcc[(t tIthcafurnhcr exc-is, fironn mcnibcl ipanh?thcinext fo1lc)4mgtrsc iecnce: Ill ASSI }• Wit .1fMI itafifIIS• r uMRiig,il!111RMI61141:en MIMkiMkA'GP laorI IzIa I iRRUMI MRPRSIFIIP I I>RI LN Ilyl/N 17‘'rl',r sl PoYlrpl 1Ri„)j/aI;Af I!N+I' N: 1I1 11 ;1 . r1941 A. a r 4Y, 1 irf i dvfiilc illtil iUu ifitra(6ftel',e, 15 SI ,iyf p roytc syaRrefi5cmcnt net ID . V •9 A TAii; G;I cme!npsT.`I`fienJn�tS 11 to(.itn A ty 7Lc t'a ci mployceFsi reiisvA ii ,a t7 - 12 __. _ PA i/TO_b_kbehfoihet; ihan C Firnmc-nilafil Ciyy p I /I c. mcn1 I,.;g , a 1. .1 tI. Z t'J > _ - '- Asjpr,vidcllfin(uligRcdremoit rA'n In adThrtii niecoi(thc empl'oycesufox c`lull'edS(flrom4=rntmbensliip)_byasaidliRetircmcnts ct; itihe• lowingCcmpl`oyes ishalknot bcconibarienbcrsiitliheRc ece`me t S`ystemi '' FrS 126 nxxo4oar lamp [ienm •moiorQPh • AMEND 23NT) ,,ONT-RALT SEMEN T3 E IX RD OF fINOSTRATION; STATni fitIFLOYE 1, AgurailEiW iSYSTEd' �4�TlJ k`T 1WYz a.n'ihi(' fit./ PdGoverit Body,) of ;the NEMIPPIGRT 131.4ACTI, CITY' 0M'r (Name, of PabE1-ird, , gencyY The ;Board of',Adma fla s`ftr-,at on, State; EmployeesM Retirement) 'System9, arid, the CITI ic®IINCIL of the /NEWPOR , BEACH, (Governing Boa) ('Name o£ Punl-„Cd Agency) thereina'tter +referrzeds ,'tn, as Agency , !having s ' r" *' b r ' , Yes , entered into, a contract sunder dater ,of AkPRIL 27. 19 , eifectave, ,ttudm7,a 19]x wh rd.ti iprfouides_d`%or thTe Bart Tc tpation f saT1 ckgenc nT sad IRetarAemensty Syist a ,and Tsai' contract havidgl =stated', 60 years ast (the mininum 'age}'f<o`r Valtli etasy service retirement i'.or $614- emen9 said Board bit Adminietrating tan`d, said CST.Y. 'COL'+NC-IL. ,, hereby agree ;as fol`lsowsk: (Governing Body) sa4ya44) contract lat tkfpi;mlTitunm,'sge ftor, sty `P„oTlliicemen rshaII be amendred` 't'b7 read! Irv,. 10 n60 appe"armrgy yin aparagrtap] voldi to , aser,eloce; rats ement of . 2,0 Paxagraphr 5 +`shall, be amended tot read: ao, The +sum, tof, $ 71,I 0R21./.28 ;per canna m, ,paya'ble in, equal monthly tor• less frequent insatallments:.as+ Barra shaGll regeuzre t�orr ,the peri od off years+ stated tair rsait contrast `les 'aid 'tilme elapsed item the date tot' +particitpatiron toi the 'effective; ate hereof 0 bo 7,qa30, %per cent of tot „salaries Ind ZPubhc ,Agency each wont ,To, kts, 7empl+oys, eewho) acre} rmemberxss of the radd.d JR'etir'ement adtatutp provided that} ,only rsaSlraryf earned asrmemberS of isaid System shall, fa included in ,said, ,total, saalaries i and;then iemps� who loy'eeare rmembersj to€' said Systems shall includes remploytiees who; tiecomementhenni upon the et$fectitve idate, hereof' land ,employees ,who, become 'member., thereaftera c,0 A,;r_,easona'ble' camonnt per annum, Iasi fixed +by, Boa.rd,7 payable, An, genadl uto-r , of Mesas frequent nst'a+l!lments, as, Boa?rd:4shaw the 'require, to cover ,the (costs Cod',a*dni ninsttering� �ssaad xtem asa2fsect' slat' s, employeesi Hof Public �AWgency, `'not ncludiSysnlg 1101 costs of "specia;l, valuatirons or tdf' the ,perr oditel- invesstigation and `valualtiCni required. by, =law, ,pro ritded that; sand amount ,sha114 tie rdeterna3nedont'the basis PS the ,numbers of iemployeesi ref Public Agency who,'are imeaerti on July 1 of 'tad respactiee� fia`scal, years, ,or with res ,th ct7 t'aedf�irst year (of spartic:tpaction,, on1 the,ef-'feet ve Aate' of Isla ,partic-ipayt on. F32'8•,`-1 e.nnloyees o Jr t :dent rAct SMALL NOT apply- to Thep -or of �eotio,.�.lr;� of the Stake etmpaoyees-' Re+ f City who iecome members of said Retirement System. 35, continued from page 1 NO ADDITIONA-L EXCLUSIONS 3e Lon- Boar' xutl Qiey agree drab, e &ept is prox4dcd no paragraph I5 iw adlustment'sndl be ,madedra the: arnuuntrof rc on triburois titiued„ iprus}ided' in paragraph ]on account o8rprioPsersyie7 tie mrrvlieZlperuntag p osidcd]dn pamg ipl 'flfa bu us Cfrht:ration} i'rr]tbe �:numbers�of�mploycusw�hollbeeometmernhersldf said; ]Rctifginent Syeicfnaon-chr:Ke.ffCyetai,e ttiri rclht rto f4 itoinmrthc'inuvbt.is� listed abostrdue csr,Sttrminatio rof rser,s,icc]MS'sucli ctiusesris] dead, Warg mirroh voiodiseliftikel ion ehc'.rcmployn entrcifli,idit luail.sr nociincl'udcd inrsaiel numlic=s. 3a. ee--above _ T 4 ]ienentsgnraccouncofprior scrvtce that as seryicexcredttedihereunder:as:renderedIto]Cttyprier?:tottheeffecttyu date'hLZof shalll]be alloyed to; city firemen and ci%y policemen:Fnd, rtoi[othectemplo}ees;) only:as rperecnt u,es of the respccuote aa1 age salaries] Up-edii ea' ire :Said / Retucnient ec rfor each year of sucks rseras ice and :Said percentages sha ll be tOqual to per ices t of the analogous, percentages rnowr]used undersaid R'etiremcnt S} stcmt mxcalutd uin1, benefits, on u,cotnitto'f Prior :sers ice, allowed' to,memlicrs tof the [Califovr r'a,'Scate, Highway Patrol and Rororliec employees of the State of Cal fi omia, respcctivclyt :City' shall ccontribute,,tosaid; Rrefirrement ,System as follows: to The sum Tit sil , ao° ailper Lan num payable 'in equal monthly; or less.frequent;insrallmenrs,:s Board Shill rcgune Mona' ppenod or_ �� years;.rout account of'the `..Irab lity, for benefits rased' on .servile renderer to CtY1pii tothe3,effcctivcrdatehcre-A G f a 41 Q_,p r [ent o£ total' salar:esl paid By/ reach :monde ter:) its] employees: iwho) are members rof "slid Retirement [gray, re:atria ]as+mtmberseo'_fi said kSytein shall he] included! in (said total salaries,, (cmployee4L .;%vjjoi rmeliTheys.taf rsa}d isirrtep.mrshalil l cIu_<der employees illecThnie, mernteTs] upon Lereff'eecivardatc 11 ereof rani _mployccsi•7whio becomea nienibyrsr itKcrcarft r.. aeasommtt,rramount ris -fixed byr'B'oard, payable(il cggal,nionthle:ofilessjrfiequent msrallmentst as' ]Board stiff rfcciti„tr o` rthc]rcosisfadmnrstuing:Isar]ilrS}stemrrsitiaffcctsIthcfcrnployeeso'fticyi, c'tncluin'g the lc ostsYof spLual viluatirons)[orio'f "t]hc perrodicall'ms,estiga�emn arid valuation refit rr .di'byTatvw providedulat said amount, shift nourtced r�l pea fiscarl year per memos ion' the basisi,of. the number Hof cniployiu of ;City: .whb}.arurmcmbcrs on July, trst rof'rthe supcctiye?Tfiscal years;. or with, respect to the first }dear :of pai,titipati`on;: rm thel'erffecttvc'datc;t f sardI pa-r,,ticipatidn: d / ,reasonable amount as fixed by the Board ]payable) m onemstallment from :time ro thine as the occasions arise„ totovet the cuscsdof special Au: lnations'on'acwufig gf ttnployeessiof Gtty and ,=tht. costs:of tlielpcnodic I itivesngatrnnJintoerhe'expcaencc uriderasaid ItetiirementSystem rrc,affccts saidl;employces;and the wart - Lion of:tie assets aril ll abdirics of said Systeni. on raccount]of said employees: Cunariba7rumsrriquutcd of try and fits ]employed sl$rEl'be) subfcit,'to, adfus[ment 15Y/ thc Board of ABiiamrsti'uiufr_on agent: n traf amendments o rife StaterLmployeesr Retirement Act,,a nd cumiacco„unt, oof,' eexp rrence under the Retirement System; as determmetl by fie puvodreal % estgac on„ valuation randl,dcturmmaeITt eprovtded foryby Kara' ]Retirement thes, 6. Contributiemsrrcqurredli f'ty Cunder, ab arraph tf m ! mred ar1`3i e pre :ding;: and Can ibuuuns req;ur ed of (City's niployecs a}s,hu ]arc members} of said System shall' be p'anl`by �City1 rto the State P41oyees Retirement S}lsicmtiswnhrn� �lirre]}4 d-rys[fter thcrzndrd tit'stow&?in Iongtr purod4[tr,w)liiehsid!,contrilaretons)'rcfca Ifrmorclorflcssi Ann, lc, ciorrwt ai.._. oft eorfrnbutlnu u,eluacd off piinysgs htssj mnployecs1ts patil]cfog iny:pertod p per n }ustment rshi l;33011,1;10 nt cbnc,mon ne_ subsequentmn retafices 7rfi tl i :icy, [tor t1 . Buar,dl, t:We-uify theleaorStliOr.rsueli rad}uStTrients)ton] 1CloU nt of rcirun, Mace contrrbuuons requigedref eml�lo},ees7may,be made Byrd rr eqteash paymentslbetw enthe reenploxeel n [Con need( n,ittli S ss in the error was macrle;;iand Boarda 'Payments of City, e:liotrdniayrbe iiiidlc` n'fthe forma wairancs, bank checks huilnkdi es, ccrIniedcheeks, ,imonegrordcrs,for cash. W.rrNess [OUR HANDS the day, and year first above, written. Ar rfssir: ll 0 . rriar.Y Ora BOARD110T ADE:11018117R SvTI,ON ST*As'CE ritiPL-t ri EES 110fW it M&'NET' SYSntl 1 Board of Advil n±s'trati rrr„:rent C;iTY COUNCIL Nam jai Leg/slat tveillOy, ITI—S?k= TlEAPORT BE-IIGH N c o airy P.`ccsiJing, Officer ' do., A reasonable amount as by the. B6aTdi Payablein, ehe installment frOtHtithe td title ao tao occasions ariaeri tU OdVer, the dostt, of 'SP-eclat Vt.lnatioria, on ac-dguntj of employees of Public 'Agency* Ahd, the aeata of the PetigdicAL investigation into the, expeteiente, under axid Aeefrementi 'System as ft agge,et-0, said' Amployeeskt and the valnation of thaYaseeta and liabilitleS O-T: said SY:Stem :off ateduht af' adreMploYearev Gentriblitions regnazed ,of PUbliO Ageney and its employees shall be subject to- ardlusltment by the, Board Ldf AdMin5Istratinn on account or amendments to: the ,State l Employees& 7Peetfreten't La y and on account bf 03cperienCe under the Retirement SyStefai as detert*Oed by the pOrincitnal investlgatinni], valuation and dat'ettination Provided for by said Wet thratent law° a. This amendment shall be attached to satd, contract, and shall be' effective as of ,Febrebary-154-19,148— / 04114,6 4irf4f- INESSI onr han . this 7. day ,of 19. Attest: Clerk 3IT.T.17 QICTIUNSHI OF EY BY Nate gr-regislativei BOdy C OF N ElIF OR 91 ta Pk. Cg Name] istS. FublAci Agenty ) - ( -15 Presfdang Offatir 13(a) OF ADMINISMALSTON STATE, EMFELOYEESI trifiEr,LREMENT, SYSTEM Preso_denti Boaxrd of Adminfe-tration WIT4 II S lir TOGONM . • — ?BET.1. 13u 'ME' It i r B@A`R16 ,0 A ttlIC TRACTION (31FATE 1EP,aP.L®Yal I S�' RETIaREn N.T. rSY rT) I i. OF 'THE CITY_ COUhiCTL (iCoverning 7 0477)' CITY OF NEWPORT BEACH (uVame� rIrtb'nlsirc? ,Atency) The PoaTEI ro,f' 'i"dmi-fitiistratiorirt utat"i rE.l 1gyieeet }Relrenforyt iSys�tem, rand, ith'e CITY COUNCIL off the CITY ei NEV•IFORT B1 CH �(g 15 ernan�P nI3od )I (Slam £? IV:1.11Q ,kgency)J hererzinalfi T tre'fprreoy toi Cars :4'gengy�t; shaly ng; ;;entered ;into? fa {contract, iunde�r. eaite rof,° April 27 „f la la r, efkectilve July, 1_ „ 94 tli;7 ,r, wh'lirh pr nv ere-tl tfb,it, suit pa�mfr"cispa�tzioni' �fi f. a''d, Awgenc» T.inn isasd ,Retirement' =Sy4s em; anrd. rsasid, C'o4ract ,being? based; en' the `rietiirlement La r, !axcllusrne, tuft amendments thcret'oo� hi}c'h than'gedi crigi hts; fandi g es' iof" r t rerrenit,} jsaifi, iBoargil rot nis raition 'and fsari"d. CITY COUNCIL _ _ lher�ebyr G rer' tars; Ifbltlo sYr, (GGoveitnin g iP9140 I. Fa-rargraiphs 3,4,0 9 .r and'6 shabll,lbe tandi satire thereby, rstritc'<en, tfreromti.satiid Contract?. Th1m, n2 ,pa'rwargraphsf a S] . `bed iand a_ret rkiereby! 'added ttgi fsaidt Son4traTaft U. Atrade' 40` fsharll, }be t)'e }norrna�l Paget tfor iretiremenit; t£or� rsery ¢ee, ,of spersons nd tare m tsc0111(ane'ousl eritberdi because) ipt emn�lro Rnent tb_t IPub'he Aq ency;. that s,nemb'er�a totter' ladat F remen , /Vaal, ,Ballcement tor' [G tyt Pse`aC raTict rove s rxt 4etl ditAca11 sbti they fjractirodi o£ 'offal idompen'sa- tioni, ail id'efinedl eit (Sand' IRAtire+neres 1La thr , ito' Sbepro,ittil for, a�ch tyear, off iseruiidei ria's r3 inionvo, upon reetaT,ement, at raiger Elk rand, the pr7,oavtsionsj f ae•ctironi 01w2521t l r£7 gala, etirernent5 `LM174 ,Firrorvtird RR `£gor iguaraniteed percent- ate) o'i Baird, laTi� thl ici mpensaaen,} ishall_ caPgttyi' 5, Prior ,servpircey beffed'as tot miascellaneearsl memLers enplroped. by ,PLib�lrirc 4=gency, thha}t, s; ;..= emb r +other +than'. sI�oca � rF ne aPn, L'o_ca1 S oscirpemen„ or? @ounty "ewac,±L§, cersr� pon sre�trir`ementr tOr servLtce?, stia lbe ia�l�lorredf 4n"ly raTsT a: perscenta re of st'tte avefrI gej salary {speci�fa?ed inl Secfd 186, f2� ?er Lo_f,2 s i�d e-txir� eienf Lativ Sfior earth zc4ear to£, (such ,servtice,7 and' _crra. percentage rshobhl he 71001 ,per' (cue Co_rf the ,per cents e creterm rnedl Wider? is d Sec�tio er 3tilie a} e7 rat, rreatiii ement. tt, *ge y9r>i sliat ibe' the1 ainunvm, fargel ,stor sretrirre_ment Ta servfie,e4, taof ';persons lino„ ire ramberp5'because tot, remtboyirrient 1byf t ubb-kc {a°pency (arse Locaa~Tht remem, Lroeal i otl1ic_W enl f---J (Gounity tsar- i©fgfrrce v end, (the, pr �,uo �irs'irons tosf ae-eat ton 1-02,},il rot thel `O,tatei }Fh pioyike#s. aiq riementt. la") Lprovdati � sf r Ca RilaYall - 2 s ;iiteg; e i "` OPOPfz 'at c ompaita-o'ion fo.r eachy treat?? rot?urrent .5—Mir rce reed' t percent oe' Lha9-1 apply toi sueh members;: 7k Pt n, ns onn arc; ount of prior spruirce, ithat o-irs, tag... p eeV tcredritedt Hereunder a l rcni1 reds to ztjlic, ;pr, o,r-, tg `ti e cefAiectfitue d te! tot; pairLtiri ai .on, to, sresue iue] tperzsonsl'i ht, acre' er,be si becai sel;pa rem*r"lroir'ren,t sir'naife; "raency (as{,L'ocalt, i iKremenr t cLocalti ,P.oltern-e7 o x tCounty Beare} etregu (sh"'at1Th be,* M11;1o:aed Lan*" '7LN ra 00e104ree (Pff` the ruLera!i s larcr tspecirf tdt irn isa yd'1 11etii7,eneagt, La r, for, reach 1 eadr-; Pe'rsuc rsernce„ ndi isaid rpercnta�ge rh'a1b1,. ,m , a - , , . be. 1Oj,per scent, of� {the £:station ,o £ina41 ,co�nflmSati onr,, ra', de£rined, ' the Fa7�o3=1 Ci t7`4119) ,SW 6/g1 Utfc • State Employees' Retirement Law, for each year of service rendered after said date, as determined for said respective members under said law, for retirement for service at age 55, or upon qualification for service retirement at a higher age. If a member retires for service before attaining age 55, his prior service pension shall be reduced to that amount 7hich the value of the pension as deferred to age 55 will purchase at the actual age of retirement. 8. The provisions of Section 21258b of the State Employees' Retirement Law, guaranteeing a minimum retirement allowance under certain conditions shall apply to persons who are members because of employment by Public A ;envy. 9. The provisions of Section 213b7.5 of the State Employees' Retirement Law, providin a $300 death benefit after retirement shall apply to persons who are members because of employment by Public Agency. 10. The provisions of Section 20025 of the State Employees' Retirement Law, providing that there shall be no maximum limitation in the compensation which shall be included in computations under the Retirement Law, shall apply to employees of Public Agency who become members of said Retirement System. ]10 Public A7ency shall contribute to said Retirement System as follows: a. The sum of w ia616•00 per annum, or more frequent installments as board shall require, for the period of years stated in said Contract, less the time elapsed from the date of participation to the effective date hereof. b. 4.617 per cent of total salaries paid by Public Agency each month to its employees who are members of said Retirement System, provided that only salary earned as members of said ':ysten shall be included in said total salaries, and the employes who are members of said System shall include employees who are members upon the effective date hereof and. employees :rho become members thereafter. c. A reasonable _amount per annum, as fixed by 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 peri- odical investigation and valuation required by law, provided that said amount shall be detere ined on the basis of the number of employees of Public `eency ~rho are members on July 1st of the respective fiscal years. d. A reasonable amount as fixed by the Board, payable in one installment from time to time as the occasions arise, to cover the costs of special valuations on account of employees of Public P'.g ency, and the • F703-2 (47-49 3tq) 6/51 450 costsi [of' the periodical, inuesifigativrx rota, the eexper- ence) under rsald Retrement' System, ars: ;t aftectei said a rploye`e' , and 'the waluktion roof the assets ant, `liabiliidesl Loin ,Saud ;; Stan on account ref said eraplo- ees,. Contrittutionsr required of P,uhthic ke ency vend its renplogeesi bsha`i1 be subject to ray? justment by the ,Pearrii +Adm_ifnitstrat 'on on rarccount +of rabenftents, to them, [State 1htployees'J' Retri6rerfent Lis y and, on [account of ,experi"enee under the 3ettrement; nirshte,at rsi rdetermirnedi ,�,, thei Period'i¢ca�l rouestiga�t'iron va`l�uatii+on' and...detenalnatiron 15rovide3; for by tseid `Beth ement5 LAWI 12© irequ 'ned of 1'ulilic Atency,' under the) paragraph ihnmeddfactely pr;eceding+1 :and' econtr tinittranis, redo krecl cot P,ubwleirc) 4rgencyy's' ,empioy,Eesi ,vahoi (are neriler, •i of s3`id System, sl alil'oe paid, by Pubtlic !Agency, to; the S,tz+te Empingtees' Retirenent rSys.tefii thirrty' cdoss rafter the, rend of the month or longer ,perriod to; STchl said bc_ontrributions fatten Ifs more `orb `loess thane the idorrect; ,amount Of' ,conjticibutlongl reouitrded ?gency ,or-' its. employee its paid ftor. zany )period, tnroper addustment shall bee ima'dtt ion, connec- tiori zt,ht !subsequeri,t frem ttances, ,qf Pubh c Agency to the `,Board,,, -trOL rectify n _ the)-�r�,ors�;� ;or, ,such! ad�jiu"s�,tTnents) prig raTccount oft berrprl� made: irfi contributionTs required of re'mprloyeese, may `bp math' by frirrect) casnte)`eetVreen the employees in connection T rick ; horn the e,r.ror' as nnfirtl and ',Board., Payment`s 4 r '� o£ 12u1514c1 -: l encyr to; Board, may Ibe made in the frown of rrar-rtants, bank checks, tidbit:, dria+ftail Icert Lf edi rchec es}, money, cord'ers;, for {taint. 3,. Benefits, including retirement') al ovrancesi, prior to) the, fe` ffcecatiue [dtakke of 'th rs emeridmentr, shall not; to ateectedt by ,this' amendment, unless! oitherviise provided h�er..en, 4,e This iamendment sha311 be ,attached, to• igaltd [Contract. and shall, tie e+f‘fectiue, as November 1 -- _--- , 19i.1_ ldrtness ,our hand thisri days of Atte-st: Clerk s_/ • CITY _COUNG Name litirslati ,faddy C"TY DIL VairOnT E AGl1 flame` of Rohl* lrgency +;res dztr ' ,afYi¢er EOM QF ,AOMINTSiTRATION STATC, E!1PL'OYEES', RETIREMENT SYSTEM Piaesident, e altd' of Y`dm ni"stra,t;ion AfaG , 7�5 Fgal3 GU-1,.91 'art ; :041 40 EARL W. CHAPMAN EXECUTIVE OFFICER EOWARO K. COOMBS ASSISTANT EXECUTIVE OFFICER • STATE OF CALIFORNIA • BOARD OF ADMINISTRATION ate gntpingeez' Retirrmextt $gztem 1920 K STREET ' SACRAMENTO 14 October 19, 1955 LAUREN C. NAIGHT ACTUARY PLEASE DIRECT YOUR REPLY TO SECTION REFER TO MEMBER ACCOUNT NUMBER TO: ALL STATE DEPARTMENTS ALL PUBLIC AGENCIES CONTRACTING FOR RETIREMENT COVERAGE SUBJECT: 1955 AMENDMENT TO SECTION 20330, RETIREMENT LAW -- EXCLUSIONS'FROM MEMBERSHIP During the 1955 Session of the Legislature, Section 20330 0f the Government Code, excluding certain employees from System membership, was amended. The amendment was the deletion of subsection 20330 (b) as it existed subsequent to the 1953 Session of the Legislature. Effective October 1, 1955, the only employees excluded from System membership, other than those specifically excluded by the contract be- tween a public agency and the System, are: 1. Inmates of State or public agency institutions who are allowed compensation for such service as they are able to perform. (Section 20330 (a) 2. Independent contractors who are not employees. (Section 20330 (b) -- from October 1, 1955, on) 3. Employees serving on less than a one-half time basis unless they are members at the time they commence to serve on a part-time basis. (Section 20334) Any person who was employed on October 1, 1955, in a status other than that described in either 1, 2 or 3 preceding, rendering service of one-half time or more and who, prior to October 1, 1955, had completed six months of qualifying employment, is a member of this System effective October 1, 1955. Those persons who have not as yet completed six months of qualifying employ- ment will, of course, become a member of the System on the first of the month following completion of six months (uninterrupted by a break of more then one month) of qualifying employment. 2_,(_.7-c EARL W. CHAPMAN, EXECUTIVE OFFICER Ret. Form 909 10/55 900 a, CAW RL .CNAPMAN EXECUTIVE OFFICER EDWARD K. COOMBS ASSISTANT EXECUTIVE OFFICER • STATE OF CALIFORNIA • BOARD OF ADMINISTRATION $taf mpingees' ietirement gatem 1320 K STREET SACRAMENTO 14 August 3, 1955 TO: ALL CONTRACTING PUBLIC AGENCIES LAUREN C. HAIGHT ACTUARY PLEASE DIRECT YOUR REPLY TO SECTION REFER TO MEMBER ACCOUNT NUMBER SUBJECT: AM.ENDMMTS TO STATE EMPLOYEES' RETIREMENT LAW MADE BY 1955 LEGISLATURE AMENDMENTS APPLYING TO MEMBERS FROM CONTRACTING PUBLIC AGENCIES -- NO AMENDMENTTOCONTRACTREQUIRED 1. ASSEMBLY BILL 575, CHAPTER 1353 Provides that one of the employee members of the Board shall be elected by and from State employee members, one shall be elected by and from Contracting Agency employee members, and the third employee member of the Board shall be elected at large by all of the members. 2. ASSEMBLY BILL 580, CHAPTER 1629 Provides that retired members may authorize deductions from their retire- ment allowances in accordance with regulations established by the Board for the payment of group insurance premiums. 3. ASSEMBLY BILL 583, CHAPTER 1631 Provides that in elections of members of the Board of Administration, ballots shall be returned to the Secretary of State without cost to the member. 4. ASSEMBLY BILL 586, CHAPTER 1632 Provides that any member who is or has been absent from State service because of injury or illness, determined by the Industrial Accident Commission, within one year after the end of such absence to have arisen out of and in the course of his employment, and who did not receive full salary during the period of absence, may contribute to the Retirement System for the entire period of absence and, thereby, receive current service credit for the period of t4rne for which contributions were made. 5. ASSEMBLY BILL 768, CHAPTER 570 Permits employees who have additional contributions on depdsit, to apply such contributions to pay any amounts due because of "local service", redeposit, age change payments, etc. Bet. Form 829-1 8/55 500 6. ASSEMBLY BILL 1115, CHAPTER 1412 Provides that a member retired for ordinary disability or a beneficiary entitled to a basic death benefit cannot change to an industrial disability or industrial death benefit unless an application is filed within two years after the member's retirement or death. 7. ASSEMBLY BILL 1116, CHAPTER 1817 Gives the Board the right to cancel an election made by a member to pay for "local service" when the member requests the Board to so cancel. 8. ASSEMBLY BILL 1117, CHAPTER 1818 Permits a member to redeposit at any time, contributions previously with- drawn. Previously the Law had provided that the member had to make his affirmative decision within thirty days after notice. 9. ASSEMBLY BILL 2370, CHAPTER 1506 Provides that retirement allowances, return of contributions, or other benefits are exempt from taxation by the State, including inheritance tax. 10. ASSEMBLY BILL 2895, CHAPTER 973 Provides that the Metropolitan Water District may employ a person receiving a retirement allowance under this system who has special knowledge, experience and qualifications with reference to litigation involving the District, and may pay such person for services. The retirement allowance would be reduced by the amount so paid monthly. 11. SENATE BILL 678, CHAPTER 253 Provides that the Governor may appoint any person who has been retired to any non -salaried board or commission, without re -instatement from retire- ment or loss or interruption of retirement benefits. 12. SENATE BILL 711, CHAPTER 1766 Provides that the special death benefit shall be calculated on the basis of the average compensation for the three highest consecutive years rather than the five highest, as previously. 13. SENATE BILL 1200, CHAPTER 213 Provides that the funds of the State Employees' Retirement System, the Legislators' Retirement System, and the State Teachers' Retirement System, maybe invested according to the "prudent man rule" previously in effect for savings banks. Bet. Form $29-2 8/55 500 ITS APPLYING ONLY IF CONTRACT IS AMENDED 14. ASSEMBLY BILL 570, CHAPTER 1704 Increases the minimum retirement allowance to $100 per month, or "final compensation" if less, and changes the qualification for such minimum to retirement after attaining age 60 with credit for at least twenty years of continuous service or upon compulsory retirement at age 70 with credit for prior service. Increases the retirement allowances for those already retired to what it would have been had the provisions of the above been in effect on the date of retirement, the increase to be effective October 1, 1955. Increases the retirement allowances, and widow's "death in line of duty" allowances, beginning October 1, 1955, of persons who retired prior to October 1, 1953. The increase is as follows if the person had credit for twenty, or more, years of service, or is proportionate if the person had less than twenty years of credited service: Period during which Monthly Increase in Retirement Allowance Retirement Became Where Credited Service For Each Year of Credited Effective Was 20 or more Years Service, if Less Than 20 Prior to 7/1/51 $25.00 $1.25 7/1/51 to 6/30/52 20.00 1.00 7/1/52 to 9/30/53 15.00 .75 (A retired person may qualify for an increase in allowance under both provisions; he will receive, however, only the greater increase and not both.) 15. ASSEMBLY B/LL 578, CHAPTER 1355 Permits an employee to have credit for all of his State employment ren- dered prior to becoming a member, providing he pays for that time based on the salary and rate of contribution in effect when he first became a member. 16. ASSEMBLY BILL 2368, CHAPTER 1441 This Bill provides that the Board of Administration shall administer the Old -Age and Survivors Insurance plan for all public employees in the State, including the employees of cities, counties, and various types of districts. 17. ASSEMBLY BILL 2590, CHAPS 1666 Provides a 1/70 formula on a fixed formula basis with benefit determined on the final compensation, rather than on a combination of money value for current service and a prior service allowance based on the average salary for the three years prior to the date of the contract as at pre- sent. Also permits payment of allowances to members under the State Employees' Retirement Law and under the Old -Age and Survivors insurance Act for the same service. Bet. Form 829-3 8/55 500 t • • . • • 18. SENATE BILL 537, CHAPTER 1025 Provides that if a member who is a local fireman or a local policeman dies before retirement, but after qualifying for retirement by age and length of service, his beneficiary, if such beneficiary is a wife or is a child under 18, shall have the right to accept either the basic death benefit (return of contributions plus up to 6 months pay) or in lieu thereof, one-half of the allowance to which the member would have been entitled if he had retired on the same date as that of his death. If the surviving wife is the beneficiary, the allowance shall be paid as long as she lives or until her remarriage, in which event, it would continue until the youngest child reaches 18, and if the beneficiary 1s a child or children, the benefit is payable until the youngest becomes age 18. 19. SENATE BILL 1268, CHAPTER 1440 Provides that State members may have coverage in the Old -Age and Survivors Insurance Law, under the "full off -set" plan, providing a majority of State members of the Retirement System vote in favor of such a change. The Bill also provides that contracting agencies may have OASI coverage for their employees by making amendment to the con- tract. Provides a reduction in the State rate of contribution if a majority of State employee members vote for the OASI plan. Most of the Bills above enumerated, go into effect on October 1, 1955; a few will go into effect ninety days after the adjournment of the Legislature. EARL W. CHAPMAN, EXECUTIVE OFFICER STATE EMPLOYEES' RETIREMENT SYSTEM Ret. Forn*'829-4 8/55 500 SUMMARY OF AMENDMENTS TO THE CALIFORNIA STATE EMPLOYEES' RETIREMENT LAW (which may be elected by a Contracting Public Agency) A. The amendments to the Retirement Law made in 1945 and 1947 reduced the ages at which members may be retired and increased the benefits members will receive. The principal amendments were as follows: (1) Normal service retirement age for Miscellaneous Members reduced from 65 to 60 and the factor in the service retirement benefit formula in- creased from 1/70 to 1/60 with a guaranteed percentage of final compen- sation for each year of service as a member; The minimum guaranteed monthly retirement allowance increased from $40 to $60 to apply at age 65, or over, with credit for 20 years of service or at age 70 with prior service credit; A death benefit of $300 provided for retired persons; The removal of the maximum of $5,000 per annum of compensation to be included in computations under the Retirement Law; Normal service retirement age for Local Safety members reduced from 60 to 55 and basis of benefits increased. B. The amendments to the Retirement Law made in 1949, which a Public Agency may elect to apply to its contract, are: Prior service benefits of Miscellaneous Members equal to one -sixtieth of final compensation upon service retirement at age 60 or its actuarial equivalent upon service retirement at ages 55 to 65, and over; A guaranteed percentage of final compensation for each year of service as a Local Safety Member. C. The amendments to the Retirement Law made in 1953, which a Public Agency may elect to apply to its contract, are in part: I (8) _Minimum service retirement age for Local Safety Members reduced from 55 to 501 the allowance to be discounted for ages at retirement under 55; I N a. (9) Retirement Benefits based on highest average monthly compensation earn- , able during three consecutive years of membership; re ,^1 (10) Death Benefit for retired persons increased from $300 to $400. Ret. Form 559-1 (Rev.9/54) 1500 • Summary of Amendments (Continued) D. Other amendments to the Retirement Law made in 1953, which elect to apply to its contract are: t 4 (11) Normal and minimum service retirement age for Local 1 (1) from 55 to 50 (the allowance not to be discounted); a Public Agency may Firemen reduced Continuation of one—half of the Service or Industrial Disability retirement allowance to certain dependents upon death of a retired Safety Member. (This benefit would automatically apply to Safety Members already retired.) E. Agency may elect to increase the retirement allowances payable to retired by applying to such persons the provisions of its contract: (13) As that contract existed on June 30, 1954, (14) As that contract would exist if amended as outlined under paragraph "A" above, or; (15) As that contract would exist if amended as outlined under paragraphs "A" and "B" above. persons or; Pitt ct%) mC1/2 -4/14- ? • Ret. Form 559-2 (Rev. 9/54) 1500 EARL W.CHAPMAN EXECUTIVE OFFICER EOWARO K. COOMBS ASSISTANT EXECUTIVE OFFICER • STATE OF CALIFORNIA BOARD OF ADMINISTRATION State mplogers' T0: ALL CONTRACTING AGENCIES • e#irement rim 1320 K STREET SACRAMENTO 14 August 10, 1953 SUBJECT: AMENDFVNTS MADE BY THE 1953 LEGISLATURE RALPH R. NELSON ACTUARY LAUREN C. NAIGHT ASSISTANT ACTUARY PLEASE DIRECT YOUR REPLY TO SECTION REFER TO MEMBER ACCOUNT NUMBER Amendments made by the 1953 Legislature to the State Employees' Retirement Law which are of general interest are reported as follows: Amendments applying to members of contracting agencies - no contract amendment required. - 1. Section 20393 was amended to permit the refund of contributions upon re- quest of those who have previously left State service but left their contri- butions on depomit. Previously the law provided that if a member, having more than $500 on deposit, left his contributions here no refund would be possible. 2. If a policeman or a fireman is eligible for a leave of absence with compen- sation, under Section 4850 of the Labor Code, his retirement shall not be- come effective prior to the expiration of the leave of absence, with compen- sation, unless the member applies for or consents to his retirement at an earlier date, 3. The permission to retain members beyond the compulsory retirement age will go out of the law effective September 9, 1953. Those who have been retained in the past must not serve nor be shown on the payrolls after September 8, 1953. Thereafter the compulsory retirement ages as stated in the Law will be in effect. 4. Retired persons are prohibited from receiving compensation for service rendered to the State or to a contracting agency after the date of retire- ment. An amendment was made permitting service as a juror, or as an officer of an election board. 5. If a retired member is elected or appointed to a public office which is requisite to membership in the System, his allowance shall be cancelled and he shall have the right to continue membership and make contributions; or he shall have the right to refund of contributions or to leave the con- tributions on deposit until such time as his service as an elected officer is discontinued. Ret. Form 829-1 8/53 400 • • 6. Payments to the beneficiaries of the deceased retired members who selected Option No. 1, under the new amendment, may be made in monthly installments fixed in number and amount and not involving life contingency, or in equal monthly installments for the life of the beneficiary with 120 installments certain, provided the member chooses one of these plans at the time of re- tirement. In theevent the member dies without having made such an election, then the beneficiary is permitted to choose monthly installments fixed in number and amount, but is not permitted to choose the equal monthly install- ments for the life of the beneficiary,. with 120 months certain. Previously, Option No. 1 payments were only permitted in a lump sum. Amendments applying only if contract is amended; A new Section 20952.5 was added to the law providing that local safety mem- bers may be retired at age 50, providing they have 20 years of continuous service, but the allowance payable would be on a discounted basis. The nor- mal retirement remains at 55 with half pay as the goal. As the normal re- tirement basis is unchanged, no valuation is necessary to adopt this amend- ment and the rates of contribution by the member and by the employer will not be changed. 8. A new Section 21264 was added to the law to provide that upon the death of a local safety member after retirement for service or industrial disability, including members heretofore retired, one-half of his retirement allowance as it was at his death shall be continued throughout the life or until re- marriage, to his surviving wife, or in the event that there was no surviving wife, it could be continued until all children of the deceased member at- tained the age of 18. Should there be no surviving wife and no children under the age of 18, but there was parent or parents depending upon the de- ceased retired member for support, the parents so dependent would be en- titled collectively to receive a monthly allowance equal to one-half of that which the surviving wife otherwise would have received during such dependency. An amendment to the contract would be necessary before this section could be adopted and an actuarial valuation would be required in order to determine the additional cost. A new Section 20024.01 is added to the Retirement Law providing that in calculating the average compensation to be used for the calculation of allowances, the average of the highest Three consecutive years shall be used instead of the average of five years as Ty. An amendment to the contract will be required before a public agency can accept this pro- vision. An actuarial valuation will not be required, for the additional cost of the amendment is not readily determinable and only in future peri- odical valuations could the increase in liability, if any, be determined. If an agency amends the contract to adopt this section, it would agree to abide by the results of future valuations and accept any additional lia- bility therefrom. Ret. Form 829-2 8/53 400 A new Section 21367.51 was added to the Retirement Law providing an increase in the death benefit payable to the beneficiary or beneficiaries of members who die after retirement. The former amount was Ula and that is increased to 00. The contract would have to be amended before this provision could be adop ed and an actuarial valuation would be required to determine the additional liability to the employer. 11. A new Section 20493 was added to the Retirement Law affecting only School Districts which have separate contracts with the System. It does not af- fect School Districts which are under the automatic contract with the County Superintendents of Schools. The Section provides that a School District may amend its contract so that it agrees to subject itself to all amendments to the Retirement Law whether effective prior or subsequent to the effective date of the contract and that the parties to the contract shall be subject to such amended legislation without further action by the Board of Administration or by the contracting agency. An amendment to the contract would be reeuired before this Section could be adopted. An actu- arial valuation would not be reeuired if the contract already provides all of the benefits available, but if the adoption of the Section increases the benefits so that the cost to the employer is increased, then an actuarial valuation would be necessary. If, by the adoption of this amendment, the cost to the employees is increased, then an election among employees is re- quired. A new Section 20607.6 is added to the Government Code providing that the normal age for the retirement of Firemen shall be 50 providing there has been twenty years of service. The present law provides the normal retire- ment age for all safety members at 55 with twenty years of service required, but this amendment reduces the age to 50 for Firemen, only. The benefit provided would be 50% of the final compensation. An amendment to the con- tract would be necessary and an actuarial valuation would be required to determine the additional cost to the employer. The rates of contributions to be paid by the Firemen would also be increased and an election among Firemen would be required before the amendment could be valid. 13. A new Section 20021.6 was added to the Retirement Law providing that the definition of County Peace Officers should include the Constables and Deputy Constables who at the present time are considered as miscellaneous members. An amendment to the contract would be required. %whther or not an actuarial valuation would be required for this amendment would depend on whether or not there were any Constables or Deputy Constables in the membership whose benefits would be changed. If so, a valuation would be required and an election among the employees affected would be required. 14. A new Section 20839 was added to the Retirement Law providing for the granting of prior service credit to employees who were under the direction and supervision of the Public Agency, but whose compensation was received from some other source. The Section also permits increase in the retirement Ret. Form 829-3 8/53 400 • • allowances of persons already retired who would receive the additional prior service credit. An amendment to the contract would be required. A valua- tion may be required. Amendments discussed in items 2, 3, 7, 8, 11, and 12 become effective September 9, 1953. Amendments discussed in items 1, 4, 5, 6, 9, 10, 13, and lb become effec- tive October 1, 1953. EARL Uf. CHAPMAN, EXECUTIVE OFFICER Ret. Form 829-4 8/53 400 Board of Administration State Employees! Retirement System Sacramento, California Gentlemen: I hereby certify to the following facts: 1. That the following employees of the CITY Or NIEeti`PORT BEAC14 (Name of Public Agency) hereinafter referred to as aAgency", have expressed their approval or disapproval of an amendment to the contract of said Agency with the Board of Administration of the State Employees! Retirement System, by the following vote, on ballots F124B, furnished by the Board of Administration, and in an election conducted on January 13. , 191i8 , in such manner prescribed by the governing body of the Agency as to permit -the policemen proposed to be included in the System, separately to express their approval or disapproval thereof: Nnmbar of votes Number of votes approving said disapproving said amendment amendment a. Local policemen as defined in Section 20020 of the Retire- ment Law 15 1 City Council_of 2. That tht1TY OF NEWPORT RE :H of said Agency adopted on (Name of Governing Body) 1 2 194% , 194 , a resolution with a copy of the amendment attached, giving notice of intention to approve an amendment to the contract providing for the participation of said Agency in the State Employees' Retirement System, making its employees members of said system, a certified copy of said resolution, in the form furnished by said Board of Administration, being attached hereto. City Council of 3. That theClTY OF NEWPORT BEACH of said Agency adopted on the 9th day (Name of Governing Body) of February , 1948 , and by the affirmative vote of two -third of the members of said governing body, an prcj.nanoe , approving said amend - (Resolution or ordinance) went, a certified copy of said Olinance _ , in the form furnished (Resolution or Ordinance) by said Board of Administration, being attached hereto. Yours truly, CITY (Name of Agency) er or Secretary F13Ab maims TO COMO DAMN t flUdSi At® City Council Ot City of Newport Beach !hs Ind of Adehdatattia. Male neplayeest ad bete City Council d the City of N art Beach (PuS ur +erg f hsrsisaftsr antasa+ed is as ACID% haviad ettarad Antis . stter dais at April 27, sentetet horsing stated sold heard of Adakdotraddso sad 1t5 1 St eswt Span *id anis ededasea see s'evalardmay service Petitvs * tar 1. adir appearingitsweerpk ealsntaq serline trstivement d Cap thi ielmn City Co r bore* ass as Mast the ideas age fat bs aeosdsd to reed'59'. b. 7,:369 Matt of tst$ act the soda astireamb of Olt Sena erstr.e oho sae aadhaw of said ante " iaclaahto o is andbase upon the ir stihrtin S$ bared sad mielegoos the become man t ereptter. c . s. A rsss molds eetomlat pee see . as eta lbatidr y !u e l wale" as loss t Send iestslimete� as led read ropil s. ts ewer the oasts of sesddt. artns said lyrfl so It offsets the et Public Agway eot imploding the sorts of special ties or of the petSiu s inventiptien and volnstscn tow by loco provided that said at mall be dpresdnsd m the et the endow of employees s! Attie Aping who ms aseh rs as Jay 1 of the respective basal poser or with raspiest to the fiat jeer of pirissiyatiay en the sf sotime date d Wd portisipatten. • i • 4. A eansisoble emeent s find by the IlkINgto yaorditat do eta lartallmiti Iran tine to time se the COOMMicill arias. te weer tbe Seto et epeeist saltohlate a aeocont of =pion of Maio Aye% end the sate et Ono seatleitioal Into the aperient* made salt Mastlisrat fgt. :111#1= odd employees, and the valaniall OR the genets and ItebnAttee et WA ikrataa an moocont of maid amodopmee. Contrihatlene nosbett PahlAs Vane eat Ito eopleseee Eton to e ithjeet to aeolnant by the gond of Adminatintlen ott seen* at annadaente to the State Maitireeity Retivanant IS» nd an SAM alif • aria under the Ilettromodi Boloes IniSS tr the periedleal Jorestiption. eakation and delmontnetten prodded tar 'by ottat 'btu's* Is. 3. Inge enendoett doll be etteehot to said contract end shall be arsatival es of Febovert Iat • MOM Se hond thin day ot 241 • Attest. mottare CMOS et IMOD Or AtIOXEMS*111111 ann inr14333111* Ulf= • freeldestio 4 0 Board of Administration State Employees' Retirement System Sacramento, California Gentlemen: I hereby certify to the following facts: CITY C)F Nr:WFfR'r BEACH 1. That the following employees of the Newport Beach, Calif, - ' 12ame o�-Sub vision hereinafter referred to as "Subdivisiol," have expressed their approval or disapproval of the participation of sdjd Subdivision in the State employees' Retirement System, by the following vote, on ballots F123, P1221 and P125, furnished by the 2oard of Administration, and in an election conducted on February 19 , 1915 , in such manner prescribed by the legislative bod`y� oT he 'Subdivision as to- permit the firemen, the policemen, and the other employees, proposed to be included in the System, separately to ex- press their approval or disapproval thereof; a. City firemen as defined in Section 8(b) of the State Employees' :etirement Act. b. City policemen as defined iri Section e(b) of the State Employees' P,etireuent Act. Nurber of votes Dumber of votes approving said disapproving said participation participation 12 Mona None o. Employees other than city firemen and. city policemen 53 w 1 CITY COUNCIL, 2. That theCITY OF NEWPORT BEA (I sNic oi' „ielst 1Ve `b 5 February 3, , 191 , a resolution with a copy of the contract attached, givin` notice of iuteETion to approve a contract providing for the partici- pation of said Subdivisions in the State Employees' Retirement System, marring its employees members of said System, a certified copy of said resolution, in the form furnished by said "Board of Administration, being attached hereto. CITY COUNCIL 3. That the CITY OF NEWPORT BE4 1 of said Subdivision adopted on (vane br egisiative 3o4 {j,.]�� , 19 , and by the affirmative vote of two-thirds of the memuort3f sa33. 'era's ative body, r31 ordinance , approving tResciution or Ordinance) said contract providing for participation of said Subdivision in the State Employees' Retirement System, making its employees members of said System, a certified copy of said eso , in the form furnished by u•ion or Ordinance) said Board of Administration, being attached hereto. Yours . uly, Newport Leach, Calif Name of tuhdIvi ion of said Subdivision Adopted on C. er F130 7-14° 75 4", 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 BALLOT ON THE QUESTION OF PARTICIPATING UNDER THE CALIFORNIA STATE EMPLOYEES' RETIREMENT ACT. 000 INSTRUCTIONS TO VOTERS ENTITLED TO VOTE on the question of participating under the California State Employees' Retire- ment Aet. To vote on the measure submitted herewith, stamp a Cross (X) in the voting square after the word "YES" or after the word "NO". To vote in the square after the word "YES" shall be considered as approval of participating under the California State Employeed Retirement Act, and a vote in the square after the word "NO" shall be considered as disapproval of participating under the California State Employees' Retirement Act. SUMMARY of the Retirement System, as set forth in the Resolution of Intention to approve contract providing for participation in State Employees' Retirement System, duly passed by the City Council of the City of Newport Beach at an adjourned regular meeting of the City Council held on Monday, January 15, 1945, all as required by Section 38c, subdivision 1, of the California State Employees' Retirement Act: 1. The System is administered by a board of eight members, composed of three members of the System, an official of a bank, an official of an insurance company, the Director of Finance, a member of the State Personnel Board, and an official of the Uniwersity _of California. __ _ _.. 2. Retirement for service is optional upon attainment of an age which shall be not less than 55 .,years or more than 60 years, as provided in said contract; by city firemen, and age 60 by city policemen and bg other employees, and completion of twenty years of service for the municipal corporation, and is com- pulsory at age 65 for city firemen and city policemen, and at age 70 for other employees. 3. The monthly retirement allowance payable upon retire- ment for service is dependent upon such factors as age, sex, salary and years of service. For city policemen and city firemen, retiring at the optional age in paragraph 2, or at a higher age with twenty years of service, the monthly allowance is approximately one- half the average monthly salary during the five years immediately preceding retirement.A For other city employees, the monthly allowance, upon retirement at age 65, is approximately 1/70th of the average monthly salary during the five years immediately preceding retirement, for each year of service after the effective date of participation, plus approximately 1/70th, or less as may be provided in said contract by the municipal corporation for its employees, of the average monthly salary during the three years immediately preceding the effective date of participation, for each year of service prior to the date. LAW OFFICES OF ROLAND THOMPSON 210 SPURGEON BLDG. SANTA ANA. CALIF. -1- • • L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 4. Retirement for disability except in the case of city firemen and city policemen disabled from injury arising out of and in the course of employment, is permitted only after ten years of service and upon proof of in- capacity for the performance of duty. 5. The monthly retirement allowance payable upon disability retirement, described in preceding item 4, is dependent upon such factors as age, salary and years of service, but generally is equal to 90% of 1/70th of the average monthly salary during the five years immediately pre- ceding retirement, for each year of servioe, with a guarantee of 25% of said salary, subject to pertain restrictions and modifications. 6. Disability retirement of city policemen and city firemen, in the event of disability arising out of and in the course of employment, is permitted regardless of age and service, the monthly retirement allowance being one-half the average monthly salary during the five years immediately preceding retirement. 7. The benefit payable at death, except in the case of city policemen. and city firemen dying from injury arising out of and in the course of employment, consists of the contributions of the member plus interest, and plus 1/l2th of the member's annual salary during the year immediately preceding death, for each year, not exceeding six years, of service as a member of the system: 8. The monthly allowance payable to the widow and children, at the death of city policemen and city firemen arising out of and in the course of employment, is one-half the average monthly salary during the five years immediately preceding death. 9. The benefit upon separation from service by other cause than death or retirement, is the refund of the member's contributions, with interest. 10. Contributions required of city policemen and city fire- men, without credit for prior service, depend upon salary and upon age of entry into the retirement system, the contributions per $100 of salary varying from $5.40 at entry age 21, to $9.32 at entry age 35, for example, if the minimum service retirement age is 60, or $7.63 and $14.35, if the minimum age is 55. Contributions of policemen and firemen having credit for prior ser- vice depend on salary, entry age, and amount of prior servioe, the amount of contribution per $100 being $13.79 for example, at entry age 59, with 19 years of prior service, if the minimum service retirement age is 60, and $16.33 at age 54, with 19 years of prior service, if the minimum service retirement age is 55. 11. For other city employees, the contributions depend upon salary, sex, and age of entry into the retire- ment system, the contributions per $100 of salary varying from $4.83 at age 20, to $7.45 at age 64, for men, and from $5.83 at age 20, to $8.50 at age 64, for women. LAW OFFICES OF ROLAND THOMPSON 210 SPURGEON SLOG. SANTA ANA. CALIF. -2- • • 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 12. The city is required to contribute the balance of the funds necessary to meet the cost of the benefits provided under the retirement system for the cityts employees. The city also is required to pay its proportionate share of the administrative costs of the system. 13. Ability of the Retirement System to pay benefits is safeguarded by a provision authorizing the Board of Administration to revise contributions of both employees and the city, in the light of experience under the system. PROPOSITION: Do you approve of participating in the State Employees' Retirement System, making you a member of said System by contract entered into by the City Council of the City of Newport Beach and the Board of Administration of said Retire- ment System, subject to the pro- visions of the California State Employees' Retirement Act, passed under authority conferred on Legislature by constitutional amendment adopted by people at election of November 4, 1930 (Art. IV, Sec. 22a), which Act was approved by the Governor June 9, 1931 (State. 1931, Ch. 700 and amendments thereto). YES NO LAW OFFICES OF ROLAND THOMPSON 210 SPURGEON SLOG. SANTA ANA. CALIF. -3- • '• Vas= maisAina So - 20Tean • , '''.44$004**M**MenteCi • SOmitlyet60,;;•MazieumA420,140mrs t• : • •,.?„:,„; . . • 41.olgAlot • .• • .• ••• „ . . •• . . . . „ Pill ice &. !ire:- about 1. of...average :Mon difritac$: years preasdiltm.. MiS. retirement age 65iabentti I/66th of average montitlY salary t.' linee41141. for. each year of service after *frail:it:date of partioiration. ikiisinatt " • • kttoellaaeoue:meolbere. „only' • after 10 yearl : Of employment aS preof . of • incapacity of duty.. • • ; • . rire: & Police - Injured in line ef. (intr. retirement at laittaa•.: . . • • . • • " . • • ' DISLOIiiiTtRingSKI;T:iii4Wiligili • mists. 1. 'Alent 90% et 1/70 averageimenthly.saleryi years prtseding :retirement .tor each year of service guarantee Of 25, of esS• .:.; SafitY 2. 4.atOitiete :monthly salary durine5'•yeari :preceding retirement. : • • • • . . ••• " .• , . . . . . )taxmum mcinxt 1)ATABLE;.AT .Mise. 1. Members cantributions plus iriterest plus:1/120kof :members amnia' gala* during year inesediately preceding. death for each year got exceeding 6 years of 'terries. . • , Safety 2. *average Monthly salary during 5 YeartCprineding teeth. SIPARATIOM • ' • .• „ • • All Members - Any amuse other than death or retirement e;reflimi of calibers contribition plus interest. • ; All Membere lio:Maxiiroa limitation in aerepeneations A.11 Members - ifinumusi eomperilation at retirement $720.00 per year. All Members as-Atte* retlS'ement 4,04 benefit t $30940 additional.' Ail Meiberil credit for. petsont who were *embers of Smienoy before agency* contracted with. State for Retirement. 20024.01 Average earnings based on 3 consecutive yrs.' 20952.5 A local safety member shall be retired fot service upon his written &Dedication to the board if he has attained age 50 and is entitled to be credited with 20 yrs of cintinuoua service 21264 Upon death orsafety nrnher after disability retirement inci including such'membe-e heretofore and herafter retired, i of his retirement allowance as it was at hie death, excluding the portion of said allownace derived UM from additional con— tributions of the shall be continued thoughout life or until remarriage to his,anrvuving wife. If she should die or semarly before every child of etch member attains the ale of 18 yrs. If no wife or children then dependent parent4 21367,51 Upon death and after retirement and while receiving retirement allowance $400.00 payable to estate r.r such beneficiaryEMI nominated. November 25, 1957 TO; ALL DEPARTMENT READS FROM; A. N. BROUSSARD, FINANCE DIRECTOR SUBJECT; ELECTION OF TWO MEMBERS OF TEE LARD OF ADMINISTRATION OF THE STATE EMPLOYEES' RETIREMENT SYSTEM. Please see that each member of the State Employee& Retirement System receives his or her ballot for the election of two members of the Board of Administration of the System. The receipt is to be signed by the member, detached and retained by you at the time you give him or her the ballot. All receipte for your department are to be returned to the Finance Department by you. 1, 2, 3. 4, The member then must: Vote for one in each of the two sections "%" in the appropriate apace provided, Fold the marked ballot, place the ballot with the "%" and seal, on the ballot by marking in the envelope marked Place the envelope marked with the "X" in the envelope addressed to the Secretary of State. Seal and sign (on the reverse side) the envelope addressed to the Secretary of State and place in any mail box, These procedures should be completed by December 15, 1957. Please see that all signed receipts are returned to the Finance Deparment by that date. r\--st. -k �OARD OF DVINISTRATION JOHN R. CORNWELL. PRGCIOENT H. N. BENEDICT RALPH N. COWING JAMES DEAN DONALD GALLAGHER THEODORE H. JENNER WALTER C. KENNEDY HAROLO H. ROBINSON a STATE OF CALIFORNIA BOARD OF ADMINISTRATION (State f mplageesetirtntnrt System /920 K STREET 'SACRAMENTO14 Mr. J. A. Gant, Auditor City of Newport Beach Newport Beach, California Dear Mr. Gant: ERR1. w •XECDTIve OPTICS RALPH R. NELSON ACTUARY EDWARD K. COOLERS ASSISTANT EXECUTIVE OPPICRR LAUREN C. HAIGHT ASSISTANT ACTUARY November 14, 1950 PLEASE DIRECT YOUR REPLY TO SECTION REFER TO MENDER ACCOUNT NUMORR The next to the last paragraph in Form Letter F529, sent to you last May, referred to a contract form to be executed between the legislative body and the Consulting Actuary, with reference to the investigations and valuations explained in the letter. Approximate costs of the valuations vrere quoted to be used by public agencies in making the necessary budget provisions for 1950-51. The contract form has been prepared, and is enclosed in quadruplicate. Thr_ee conies of the contract, properly executed, should be returned to reach us by December 1, 1950. I believe the contract will be self-explanatory. The items under para- graph 2 in the contract, agree with the statement of your desires in our F530, completed by you and returned to the Retirement Office some time ago. If you did not return F530, it has been assumed the agency desires no supplemental valuations as explained in paragraph 5 of F529. The fee stated in item 6 of the contract is based on the number of members given in item 3, and is explained in items 2(b) and,5 of F529. The Actuaries do not receive an extra fee for the military calculations. No remittance is to be sent by you until you receive a statement from the Actuaries, following completion of the work. Later you rill receive a statement from us, of the cost of work done here, in connection with the valuation, as explained in items 2(a) and 5 of F529. Tf you want further information before executing the contract and re- turning three copies of it to the Retirement Office for execution by the Consulting Actuary, and approal by the Board of Administration, I shall be glad to hear from you. A copy of the contract will be returned to you after approval by the Board. Yours truly, LAUR%9LC. HAIG: ASSISTANT ACTUARY F562 11-50 600 I am absent from State service by reason of duty with the armed forces of the United States and hereby elect: CROSS OUT THE PARA- GRAPHS YOU DO NOT tiTUR TO APPLY 1. To contribute to the State Employees' Retirement System, amounts equal to the contributions which would have been made to the System by me as provided in said Section 20891, had I not been absent from State service, said contribu- tions to be remitted to said Retirement System in one sum equal to the'amount accumulated from the beginning of said absence, and thereafter monthly during my absence in the armed forces of the United States. 2, To contribute to the State Employees' Retirement System, amounts equal to the contributions which would have been made to the System by me as provided in said Section 20891, had.•1 not been absent from State service, said contribu- tions to be remitted to said Retirement System after my return to State service following the expiration of my absence in the armed forces of the United States. 3. To defer my decision on the election as to whether I shall contribute the amounts set.forth in Items 1 and.2 immedi- ately preceding, until I return to State service after the expiration of my absence in the armed forces of the United States.. .. I request that this notice.be fij.ed by the•Board of Administration, State Employees' Retirement System ab my action under Sections 20890 - 20894 of the State Employees' Retirement Lave.' Employees'. Signature Effective Date Permanent of Absence Home Address . Entered Active Salary at Duty Beginning of Absence Branch of Military Service •. Monthly Contribution. F 142-2 8-50 Rev. 2500 ..... Employer Board of Administration State Employees' Retirement System 1320 K Street Sacramento ilt, California Gentlemen: Attention: Section 2 I understand that Sections 20890, 20891, 20892, 20893, and 20894 provide for monthly contributions to the State Employees' Retirement System during a period of military service and are as follows: "20890. A member is absent on military service when he is absent from State service by reason of service with the armed forces or the Merchant Marine of the United States, or on ships operated by or for the United States Government, either during a war involving the United States as a belligerent or in any other national emergency or in time of peace if he is drafted for such service by the United States Government, and for six months thereafter. "20891. Any member so absent may contribute to this system, either during his absence on military service or upon his return to State service, at times and in the manner prescribed by the board, amounts equal to the contributions which would have been made by him to the system on the basis of his com- pensation earnable at the commencement of his absence if he had remained in State service. '.then made, such contribu- tions are normal contributions. "20892. If he does so contribute, he shall receive credit for• the absence as State service in the same manner as if he had not been absent from State service. If he does not contribute he shall receive credit for the absence as State service solely for the purpose of qualification for retirement and death benefits. "20893. Any member absent on military service or absent from State service by reason of having been ordered by an auth- orized official of this State or the United States to duties outside State service shall be paid his accumulated contribu- tions upon his request. Such payment terminates any election by such member to contribute. "20394. Whenever a member elects to continue and continues such contributions, the same contributions shall be made by the State or contracting agency in respect to such absence that would have been made if the member had not been absent on military service." F 142-1 8-50 Rev. 2500 Honorable City Council City of Newport Beach Newport Beach, California Sept. 20, 1950 CITV ) P'resonicie to Council `/-.24—---Co a Wet Gentlemen: The City Employees Association requests the City Council to amend the contract between the City of Newport Beach and the State Employees Retirement System in order to enable the City of Newport Beach to pay an employees con— tribution to said Retirement System if and when said employee may be absent on military service, as allowed under section 20894.5 of the California State Employees Retirement Law. Yours very truly, Newport Beach City Emp]3syeee As ociation� By Preset FL BOARD OF AORINWRTRATION JOHN R. CORNWELL, Png.IDtNT H. H. BENEDICT RALPH H. COWING JAMEO DEAN DONALD GALLAGHER THEODOR/I H. JENNER WALTER C. KENNEDY HAROLD H. ROBINSON STATE OF CALIFORNIA BOARD OF ADMINISTRATION *rig ` np1tig es' iefitment System 1320 K STREET SACRAMENTO14 EARL W. CMAPMAN tntcoTrvs OITICOt RALPH R. NELSON ACTUARY EDWARD K. COOMSS AKIDTANT 63C6CUT,Vn OPFICE* LAUREN C. HAIGHT AaMSTANT ACTUAWT PLEASE DIRECT YOUR REPLY TO SECTION REFER TO MENDER ACCOUNT NUMBER RETIRECENT STATUS OF Ln:PLOYEES OF CONTRACTING PUBLIC AGENCIES ON MILITARY LE1VE. The office of the Retirement System is receiving many inquiries about the status of persons who go on military leave, or as stated in the Retirement Law are "absent from state service by reason of service with the armed forces or the Merchant Marine of the United States, or on ships operated by or for the United States Government". The following statements will not answer all of the questions that arise in every case, but they will answer many of the questions, and possibly will clear com- pletely cases that are regular: 1. Members absent on military service within the phrase quoted above, have the right to contribute to the Retirement System while they are so absent on the basis of the compensation which they were receiving at the beginning of the absence. If an absent member does contribute, he will receive credit for the time he is absent, in exactly the same manner as if he had remained in his position. 2. Members desiring to contribute while in the armed forces should complete Form 142 and return it to the Retirement office. 3. Contributions will be made by the member directly to the Retirement office. Very likely the armed forces will permit allotments to be made. L. Employers should report the separation on the regular Form 167, giving "military leave of absence" as the reason. 5. Members on military leave have the right to request refund of contributions. Such action would not affect their rights under leave of absence, but would terminate membership in the Retirement System with loss of death benefit coverage and loss of service credit for previous time in State service. Members who do accept a refund, have the right to redeposit amounts with- drawn, plus interest, upon their return to State service, thus restoring credit for service represented by the redeposit. If members want further information before deciding the course they want to follow, this office will be glad to hear from them. BOARD OF ADMINISTRATION STATE EMPLOYEES, RETIREM:IENT SYSTEM F 547 8-50 1000 STATEQIULOYEES' RETIREMEI (STEM SACRAMENTO, CALIFORNIA Contract BETWEEN c I;L COUNC IL NAME OF LEGISLATIVE BOOT OF CITY OF NEWPORT BEACH NAME OP MUNICIPAL CORPORATION AND THE BOARD OF ADMINISTRATION OP THE CALIFORNIA STATE EMPLOYEES' RETIREMENT SYSTEM this 2greement made this /day kf—_.---- 194.5.., by and between the Legislative Body of CITY OF Nr:.IFORT BEACH Now d Maidpal Corponti.n herafter referred to as "City," and the Board of Administration, California State Employees Retirement System, hereafter referred to as "Board." WITNESSETH: In consideration of the covenants and agreements hereinafter contained and on the pan of both parties to be kept and performed, City and Board hereby agree as follows: 1. Gty is to participate in the State Employees' Retirement System, subject to the provisions of the State Employees' Retirement Act. elarnsettsmegrivelehtureersserrerialt 2. City shall participate in said Retirement System, making its employees members of said System, from and after July 1 , 1945 . 3. Employees of City in the following classes shall become members of said Retirement System in accordance with the provisions of said Retirement Act, governing membership in said Retirement System, and subject to the further exclusions from membership in the next following sentence: n Al'F'S OF EMPLOYEES NUMBER OP EMPLOYEES ELIGIBLE FOR MEMBERSHIP ON..___July .._1___—, 1n5_. a. City Firemen, as defined in Section Se of the State Employees' Retirement Act . . _. b. City Policemen, as defined in Section sib of the State Employees' Retirement Act 12 c. Employaa other than Gty Firemen and City Policemen 61 MINIMUM AGE FOR VOLUNTARY SERVICE RETIREMENT 55 60 As pmrided in the Retirement Act In addition to the employees excluded from membership by said Retirement Act, the following employees shall not become members of the Retirement System: F. 126. nue .-.o /oo RA[ II0aT1144 0//Kt 3a. The provisioade of Sec' -Tr QIm of the State Employees' I is ant Act SHALL NOT app;y to employees of City, whs ot. .me members of said Retirement 1-j4tem. 3. Continued from page 1 Cayce inued NO ADDITIONAL EXCLUSIONS Board and City agree that, except as provided in paragraph 5, no adjustment shall be made in the amount of contributions provided in paragraph fa, on account of prior service, or in the percentage provided in paragraph Ib, because of variations in the numbers of employees who become members of said Retirement System on the effective date hereof, from the numbers listed above, due to termination of service by such causes as death, resignation or discharge, or the employment of individuals not includedinand numbers. 3a. See4R ZSee2nu on account of prior service, that is, service credited hereunder as rendered to City prior to the effective date hereof, shall be allowed to city firemen and city policemen and to other employees, only as percentages of the respective average salaries specified in said Retirement Act, for each year of such service, and said percentages shall be equal to 1QQ- __per cent of the analogous percentages now used under said Retirement System in calculating benefits on account of prior service, allowed to members of the California State Highway Patrol and to other employees of the State of California, respectively. I. City shall contribute. r-tQo said Res/cement System as follows: a. The sum of Si. a-c3.69...t.Uper annum, payable in equal monthly or Tess frequent installments as Board shall require, for a period of 25 _years, on account of the liability for benefits based on service rendered to City Friesen) the effective date hereof. b. L -V.Q per cent of total salaries.paid by City each month to its employees who are members of said Retirement System, provided that only salary earned as members of said System shall be included in said total salaries, and that employees who are members of said System shall include employees who become members upon the effective date hereof and employees who become members thereafter. e. A reasonable amount as fixed by Board, payable in equal monthly or Tess frequent installments, as Board shall require, to cover the costs of administering said System as it affects the employees of City, not including the costs of special valuations orpfuthe periodical investigation and valuation required by law, provided that said amount shall not exceed caper fiscal year per member, on the basis of the number of employees of City who are members on July 1st of the respective fiscal years, or with respect to the first year of participation, on the effective date of said participation. d. A reasonable amount as fixed by the Board, payable in one installment from time to time as the occasions arise, to cover the costs of special valuations on account of employees of City and the costs of the periodical investigation into the experience under said Retirement System, as it affects said employees, and the valua- tion of the assets and liabilities of said System on account of said employees. Contributions required of City and its employees shall be subject to adjustment by the Board of Administration on account of amendments to the State Employee? Retirement Act, and on account of experience under the Retirement System, as determined by the periodical investigation, valuation and determination provided for by said Retirement Act. 6. Contributions required of -City under paragraph 5 immediately preceding, and contributions required of Gty's employees who are members of said System, shall be paid by City to the State Employees' Retirement System within thirty days after the end of the month or longer period to which said contributions refer. If more or less than the correct amount of contribution required of City or its employees is paid for any period, proper adjustment shall be made in connection with subsequent remittances of the Oily to the Board, to rectify the errors; or such adjustments on account of errors made in contributions required of employees, nay be made by direct cash payments between the employee in connection with whom the error was made, and Board. Payments of City to Board may be made in the form of warrants, bank checks, bank drafts, certified checks, money orders, or cash. WrrNEss OUR Harros the day and year first above written. BOARD OF ADMINISTRATION STATE EMPLOYEES' $,>L'TIREMENT SYSTEM Clerk By ,/71..4-7 • t - _ Board of Administration BITY COUNCIL .... —_____..of New of tgideun Body By Prnldrnr CITY OF J3. !vp9RT BEAACTL..-_.__ NweelGry Residing otisa ,4 Information for CONTRACTING PUBLIC AGENCY EMPLOYEES Under a "1/60" Contract With 1949 Amendments (1951 and 1953 AmendmeMs Summarized) About the .. . STATE EMPLOYEES' RETIREMENT SYSTEM OF THE STATE OF CALIFORNIA JUNE 1, 1954 Distributed by STATE EMPLOYEES' RETIREMENT SYSTEM 1320 K Street SACRAMENTO 14, CAUFORNIA rein 744-A 1 INDEX notion Pan Administration of System 18 9 Additional Contributions 6 6 Age, Compulsory Retirement_ 7 6 Age, Voluntary Retirement 8 6 Amount of Service Retirement Allowance 9 6 Amount of Disability Retirement Allowance 11 6 Benefits: Additional Contributions __ 14 Death 14-16 8 Disability 11 e Retirement 9 6 Board of Administration 8 Compulsory Retirement Age 7 6 Contributions: Additional 6 6 Members' 4 6 Refund of 16 8 Employers 6 6 Death Benefits 14-15 8 Disabllity Retirement 11 6 Employment, Termination of 16 8 Funds of System 17 8 How Membership Begins 8 6 Dow to Retire — 4 Members' Contributions 4 6 Membership 1-8 4-5 Minimum Retirement Age 8 6 Optional Settlements Upon Retirement_ 18 7 Optional Settlements, Tables of 12-18 Refund of Contributions 16 8 Retirement Age: Compulsory 7 6 Voluntary 8 6 Retirement Benefits 9 6 Retirement for Disability 11 6 Retirement, Options Upon 13 7 Tables 9-14 Additional Contributions, Benefits Purchased by 14 Optional Settlements, Examples of _ 12-18 Voluntary Retirement Age 8 6 FOREWORD The purpose of this booklet is to provide the employees of contracting public agencies with a concise analysis of the Retirement System. It is not intended that all the provisions of the law be fully discussed or included herein. This booklet deals basically with the 1949 Amendments to the Retirement Law affecting employees of contracting public agen- cies. The 1951 and 1953 Amendments, affecting employees of contract- ing public agencies, have also been included and have been so noted throughout the text. If more detail is desired, the contract with the ageney and the Law should be consulted. TM. BOARD Or ADMINISTRATION STAYS SMPLOYUY RmRM IMT SYSTEM DONALD GALLAGHER, President WALTsa C. KENNEDY, Vice President JOHN R. CORNWELL STANLEY B. FOWLER EMERY E. OLsow JonM.PEmes RoY C. Pima HAROLD H. ROBINSON EAaL W. CHAPMAN Executive Officer EDWARD B. Coo3as Assistant Executive Officer RALPH R. NEON Actuary LAUREN C. HAIOHT Assistant Actuary (2) (8) 4 STATE EMPLOYEES' RETIREMENT SYSTEM . HOW TO RETIRE 1. Write to the Retirement System office about 60 days in advance of the date of your retirement, making application. 2. A formal application will be prepared by the system and mailed to you. The amount of your allowance will be stated on the application. 3. If you choose to accept the unmodified allowance, complete the application before a notary public and return it to the Retirement Sys- tem office. 4. If you are interested in one of the options which provide pay- ments after.your death, fill in the name and birthdate of your benefi- ciary and return the application: The options will be calculated and the amounts stated on the application which will be mailed tack to you. You will then make your 'choice of option and complete the application before a notary public. Then mail it to the Retirement System office. • HOW TO FILE CLAIM FOR DEATH BENEFIT 1. Notice of the death of the member will come to the Retirement System from the employer, or may come in a letter from relatives of the deceased member. 2. The Retirement System will furnish an affidavit for the bene- ficiary to sign and will request that a certified copy of the death cer- tificate be furnished, together with a newspaper clipping announcing the death. 3. After the above documents are received, and are accepted as meeting legal requirements, a claim will be sent to the Controller for payment, and the warrant in payment will be mailed to the beneficiary. HOW TO OBTAIN REFUNDS OF CONTRIBUTIONS 1. A notice of separation will come from the employer. 2. The employee will complete Form 238 (secured from employer) on which he.will give instructions and mailing address. 3. Form 238 should then be returned to the agency's payroll officer who is to complete the financial information on Part II. and return the form to the office of the system. 4. The refund will -be processed and will be available 15 days from receipt of the properly completed Form 238. - MEMBERSHIP 1. Wherever the term "employee" is used in this booklet it refers to the employees of Public Agencies who are under a contract with this system providing the benefits described. Who Qualifies 2. All full-time employees, except as noted below, become members •of the system after completing six months of service which is uninter- rupted by a break of more than one month. Part-time employees regu- larly and continuously employed likewise become members if they are working at least on a half-time basis. Membership of eligible employees is compulsory. STATE EMPLOYEES' RETIREMENT SYSTEM 5 How Membership Begins 3. Eligible employees will be furnished witha membership form by their employer during the fifth month of employment. The employee should supply the information requested, including the designation of a beneficiary. In -order to avoid making up past due contributions, you should ask your supervisor for a membership form if you do not redeive one during the sixth mouth of employment. . CONTRIBUTIONS By Member 4. Each member makes monthly contributions to the system. These are deducted from his salary -throughout the period of his membership and are credited to his personal account in -the office of the system. The rate of contribution (percentage of pay) depends upon a member's age on entrance into the system, sex; and the class of his employment. The scale of contributions is not the same for all classes of employment since the benefits are different. (See page 9.) • By Employer ' 5. Your employer also contributes monthly towards the cost of the member's•benefits. The amount contributed by your employer will, on the average, equal or exceed the cost to the member and in addition, your employer bears the entire cost of prior service benefits and the cost of administration. Additional Contributions 6'. Employees may make, by pay roll deductions only, contributions to the system in excess of the normal contributions. Such additional contributions may be changed or discontinued at any time but may not be withdrawn except upon termination of membership, and then only in event the employee withdraws all of his normal and additional ac- cumulated contributions. Any additional contributions to the credit of any employee will be used to increase his retirement allowance. Your employer does not add to the annuitypurchasedby additional contri- butions. (See page 14.) SERVICE RETIREMENT Compulsory Retiremen► Age' 7. Upon attaining the compulsory retirement age of 70 the -miscel- laneous employee must retire from service. The payment of the em- ploYee's-.service retirement allowance will then begin. Local policemen, firemen and county peace officers must retire upon attaining age 65. Voluntary Retirement Age - 8. A member,,after completing 20 years of service or with over $500 to -his credit in the Retirement Fund, may voluntarily. retire. if he has attained at least age 55.,The payment of the employee's service retire- menf allowarice.will then begin. . 6 v. STATE EMPLOYEES' RETIREMENT SYSTEM If a member leaves service before attaining the minimum retirement age, he may elect to leave his accumulated contributions in the Retire- ment Fund if he has completed 20 years of service or has over $500 to his credit. In such event the member may elect to have the payment of his retirement allowance begin at any time after attaining the minimum retirement age. If he does not so elect, the payments will begin when he attains the compulsory retirement age. Monthly Allowance Upon Service Retirement 9. The service retirement allowance at age 60 will be equal to the product of: (a) number of years of service credited to the member and (b) 1/60th (1* percent) of the highest average compensation ea,rnable during any five consecutive years of membership. (The compensation •earnable will be computed during the three highest -paid consecutive years if your employer has amended the contract to include this provi- sion of the 1953 amendments.) If retirement is at an age under age 60, the percentage per year will be something less than the 1* percent; and if retirement is at an age greater than age 60, the percentage per year will be more. (See pages 10 and 11 for examples.) For Safety Member benefits -See special Booklet. Form 745. REINSTATEMENT FROM SERVICE RETIREMENT 10. A retired member may not be employed in any capacity by the State or a contracting public agency except as follows: (1) He must request the board for reinstatement and the cancella- tion of his retirement allowance. (2) He must be physically capable of performing the duties proposed to be assigned to him is determined by a medical examination arranged by the board. He must have been retired for at least one year. He must be at least six months below the compulsory retirement age for the member classification in which he desires reinstate- ment. .After having been reinstated from retirement, the member will re- ceive credit for service rendered thereafter and the allowance payable upon subsequent retirement will include such credit. (3) (4) DISABILITY RETIREMENT 11. A member who has over $500 on deposit in accumulated contribu- tions, or who has credit of 10 years or more of service, is eligible for disability retirement if he is physically or mentally incapacitated. A person receiving such disability benefit is subject to periodic medical examination; and if it is determined that he has recovered from the I disability, the disability allowance will cease. ig member retired for dis- k, ability may be reinstated at his own request-ITrequest-1T he meets the following \ conditionsV \ (1) He must request the board for reinstatement and the cancellation of his retirement allowance. (2) He must be at Ieast.six months below the compulsory retirement age for the member classification in which he desires reinstate- ment. .� STATE EMPLOYEES' RETIREMENT SYSTEM 'y (3) He must be •physically capable of performing the duties pro posed to be assigned to him. This will be determined from th( medical examination given him at the direction of the board If the member is age 60 or over, the amount of the disability retire ment allowance will be 100 percent of the service retirement allowance earned to date of disability retirement. If the employee has credit foe at least 10 years of service, the law provides for a minimum disability retirement allowance which, with some exceptions, will be equal to about 25 percent of this average compensation. For Safety Member benefits —See special Booklet. Form 745. Effect of Employment on Disability Benefits 12. If the retired member receiving a disability allowance is re- employed in service which qualifies him for membership in the system, then such allowance will be canceled. In such an event, the member 's accumulated contributions account will be credited with an amount dependent on his attained age and he will receive credit for all current and prior service rendered. The member, however, will begin to con- tribute at the rate for his age upon re-employment. If the retired mem- ber, prior to attaining his minimum retirement age, enters any other type of employment his allowance will be subject to a reduction, if his earnings, plus that portion of his allowance not provided by his own contributions, exceed the salary of the employee in his former position. OPTIONAL SETTLEMENT UPON RETIREMENT 13. The retirement allowance of a member, if he does not elect other- wise, will be paid throughout his lifetime and at his death there will be no further payment other than the benefit mentioned in Section 15, below. A member, however, may elect upon retirement one of the other settlement options. These options permit the employee to accept a reduced income during his lifetime and to provide for the payment of certain amounts to his beneficiary after his death. The following options are available. (See the tables on pages 12 and 13.) Option No. 1—If the retired member dies before he receives in an- nuity payments (provided by his contributions) the amount of his accumulated contributions at retirement, the balance will be paid his beneficiary in one of the following ways: :(a) In a lump sum; (b) In monthly installments fixed in number and • amount. Option No. 2—The amount of a reduced retirement allowance will be continued throughout the remaining lifetime of his beneficiary. Option No. 3—Fifty percent of a reduced retirement allowance will be continued throughout the remaining lifetime of his beneficiary. The allowance payable to the retired member under this option will be larger than that payable under Option No. 2. 8 STATE EMPLOYEES' RETIREMENT SYSTEM ' Option No. 4--The retired member may elect, with the approval of the Board of Administration, such other joint annuity benefits as are the actuarial equivalent of his retire- ment allowance. - ORDINARY DEATH BENEFIT- Before Retirement /14. If the member dies before his retirement, his beneficiary will receive in a lump sum the amount of the member's accumulated con- tributions, plus an amount, provided by the employer's contributions, equal to one -twelfth of the average annual compensation earnable by the member during the 12 months immediately preceding his death, for each completed year of membership, not to exceed six. The member may elect, or the beneficiary may elect after his' death, to have this bene- fit paid in equivalent monthly installments. The beneficiary may be changed by filing a change of beneficiary form with the Retirement ?System. This form can be secured from your employer. For Safety Member benefits —See special Booklet. Form 745. After Retirement i 15: Upon the death of a retired member, and provided the contract with the employer so provides, a $300 lump sum payment will be made j to his beneficiary, or $400 if made available under an amended contract incorporating this feature of the 1953 amendments. Any amount due \ the beneficiary under the settlement option set out in paragraph 13 -will be paid in addition to this lump sum benefit. . TERMINATION OF EMPLOYMENT • 16. If membership in the system is terminated other than by service or disability retirement or by death, the employee may withdraw the contributions which he has made, plus compound interest. A member may leave all of his accumulated contributions (including any .addi- tional contributions) with the system if they amount to more than $500, or if he has credit for more than 20 years of service; in this event, the member will be entitled to service retirement benefits, when he has met the age requirement, based on his service and salary prior to the termi- nation of his employment. Such an election may be reversed under the 1953 amendments. FUNDS OF THE RETIREMENT SYSTEM 17. All contributions made by members and employers are deposited in the "State Employees' Retirement Fund." The State Treasurer in the custodian of the fluid. The Board. of Administration has exclusive control over the administration and investment of the fund. The board, however, is restricted by law in the type of securities it can purchase for the fund, such restrictions being those imposed by law upon savings banks in the making of investments. All investments must also be ap- proved by the State Director .of Finance and three other members of the Board of Administration. STATE EMPLOYEES' RETIREMENT SYSTEM — 9 ADMINISTRATION OF THE SYSTEM 18. The system is administered by the Board of Administration. This board is made up of eight members, three of whom are elected by the active members of the system. The Governor appoints two members of the board, one of whom must be an official of bank and the other an official of a life 'insurance company. The other 'three members are as follows: •' The Director of Finance; ' A Member of the State Personnel 'Board, who is chosen by that board; An Official of the University of California, who is chosen by the University Regents. ' Employees should direct any questions with reference to the Retire- ment system to: State Employees' Retirement System 1320 K Street Sacramento 14, California CONTRIBUTIONS OF MISCELLANEOUS MEMBERS Expressed as a Percentage of Compensation Age upon becominga member* Male . employees " Female employees Age upon. becoming a . member* Male employees Female employees 25 30' - 35 ' - 40 7.45% 7.69 8.06 • 8.53 . 8.67% : 9.08 9.57 ' .10.15 45 50 55 59 and over 9.10% 9.70 10.35 . . 10.88 10.80% 11.50 12.21 12.81 • There is a rate for each age The above rates are given as examples. - • CONTRIBUTIONS OF LOCAL SAFETY MEMBERS WHO- ENTERED SUCH SERVICE AFTER CONTRACT DATE t (Males Age upon becoming a member* Percentage of compensation Age upon becoming a member* Percentage of compensation 25 30 35 8.93% 11.10 14.35 40 45 50 12.05% 9.72 10.09 • There Is a rate for each age. The above rates are given as examples. } Contribution rate for members entering service prior to this date may be determined by writing the Board al Administration. 10 0 STATE EMPLOYEES' RETIREMENT SYSTEM `- STATE EMPLOYEES' RETIREMENT SYSTEM 11 EXAMPLES -SERVICE RETIREMENT ALLOWANCES The following table shows (based on a monthly compensation of $100) the amount of the monthly service retirement allowance payable for each year of service if retirement is at the age shown. The allowance is based on the highest average monthly compensation earnable during any five consecutive years of membership. The amounts shown in the table under "Prior Service" are used in connection with the credit for years of service rendered before your employer came under contract with the system, and those under "Current Service" are used with respect to service rendered after that date. MONTHLY RETIREMENT ALLOWANCE FOR EACH YEAR OF SERVICE (Based on an Average Monthly Compensation of $100)• Age at retirement Male Female For each year of - For each year of - Prior service Current service Prior service Current service 55 56 57 58 59 60 61 62 63 64 65 and over $1.1696 81.2303 81.2326 $1.2678 1.2509 1.3037 1.3055 1.3358 1.3402 1.3833 1.3846 1.4091 1.4384 1.4697 1.4706 1.4882 1.6467 1.6638 1.5643 1.5739 1.6666 1.6666 1.6666 1.6666 1.7588 1.7574 1.7562 1.7549 1.8675 1.8522 1.8528 1.8475 1.9639 1.9520 1.9572 1.9454 2.0782 2.0573 2.0703 2.0494 2.2018 2.1691 2.1924 2.1699 • The fraction "1/60th" equals .01666 and $100.00 times I/60th equals $1 6686. Example If a member retires at age 55 with credit for 25 years of service, 10 years of such service being prior service, and his highest average monthly compensation earnable during five consecutive years of mem- bership was $250, then the employee 's monthly retirement allowance would be: MALE: Prior service $250 X .011696 X 10 years = $29.24 Current service $250 X .012303 X 15 years = 46.14 Total monthly allowance = $75.38 $250 X .012326 X 10 years = $30.82 $250 X .012678 X 15 years = 47.54 FIFA{ AT • PrioI service Current service Total monthly allowance = $78.36 If the employee did not retire at age 55 but continued in service to age 60, he would have credit for five more years of service. If we assume his highest average compensation earnable remained at $250 per month, the monthly allowance for either a male or a female employee would be: Man OE FEMALE: Prior service $250 X .016666 X 10 years = $41.67 Current service$250 X .016666 X 20 years = 83.33 Total monthly allowance = $125.00 (The factor for age 60 is 1/60th (or .016666) for prior or current service for both males and females.) - Similarly, if retirement is at age 65 the allowance would be as fol- lows, if we make the same assumptions: MALE: Prior service $250 X .022018 X 10 years = $55.05 Current service $250 X .021691 X 25 years = 135.57 Total monthly allowance = $190.62 FEMALE: Prior service $250 X .021924 X 10 years = $54.81 Current service $250 x .021599 X 25 years = 134.99 Total monthly allowance = $189.80 32 STATE EMPLOYEES' RETIREbTENT SYSTEM AMOUNT OF REDUCTION IN THE UNMODIFIED MONTHLY RETIREMENT ALLOWANCE IF OPTION NO. 1 1S ELECTED FOR EACH $1,000 OF ACCUMULATED EMPLOYEE CONTRIBUTIONS AT RETIREMENT.- - • • • , Miscellaneous members Local Firemen, Policemen, . or County Peace Officers Service - - Disability Age. at Retirement retirement retirement • Service .Disability Male. Female Male Female retirement retirement • 50 ____ ____ S2.90 8.68 81.49 51 52 ____ ____ 3.04 .,70• ` 53 ____ ____ 3.11 ".70 `" 1:61 64 • ____ 3.17 :73 . - .. 1.66. 65 " 8.89 8.51 3.23 .74 81.03 ' 1.72 56 .95 .53 3.28 .76 1.11 57 - 1.00' ' .57 . 3.34 .79 ' 1:19. 1.86' 58 1.05 . .60 3.38 •.81 .-.1.29 . 1.93 59 - 1.12 .64 3.45 .85 1.39 2.02 60 1.19 .68 '____1.50 61 - 1:27 ' -.73 ____ _:__'' 0 1.63 -- ' 62 1.34 .78 ____ 1.76 63 • 1.44 .84 __ ____ 1.92 64 . • 1.53 .- .90 -____ ____ 2.03 65 , 1.63 .98 ____ ____ 2.26 66 1.74 '1.06. ____ ________ 67 '1.88 1.15 ' ____ ____ ____ ____ 68 _.- 2.01, 1.25 _ __ ____ ____ 69 1.37 , ____ ____ ____ ____ 70 2.31 1-.50 See Section IS, pag 7..for explanation of ptions. PERCENTAGE OF UNMODIFIED RETIREMENT ALLOWANCE * WHICH I5 PAYABLE IF OPTION NO. 2 15 ELECTED Miscellaneous Members - Age of male member upon retirement Percentage to be applied to total retirement allowance Age of female beneficiary 45 50 55 G0 65 70 55 60 65 70 66.1% 59.0 51.3 70.3% 63.2 55.2 46.8 74.8% 67.9 59.9 51.1 79.6% 73.3 65.4 56.5 79.0%p 71.8 63.0 78.5% 70.4 STATE. EMPLOYEES'. •RETI8EMENT- -SYSTEM OPTION NO. 2-Continued - Local. Firemen, Policemen Or County Peace Officers - Age of male member upon - retirement • • -Percentage to be applied to total retirement allowance - ago of female beneficiary .45 • 50 55 60 55 • 60 65 60:3% 51.7 64.6% 55.7 46.3 69.4% 60.4 -50.6 74:8% 66.0 56.0 ' 72.5% 62.5 - • Based on current interest and mortality assumption which are su ject to change by the Board of Administra- tion Percentages are not appucabl to Disability Retirement. • PERCENTAGE OF UNMODIFIED RETIREMENT ALLOWANCE * WHICH 1S PAYABLE IF OPTION NO. 3 IS ELECTED Miscellaneous Members Age of male" . • member upon retirement Percentage to be applied to total retirement allowance Age of female beneficiary 55 60 ' 65 70 46: 79.6% 74.2 67.8 50 55 , 60 65 70 82.5% 77.4 71.2 63.8 85.5% 80.9 74.9 67.7 88.6% 84.6 79.1 72.2 88.2% 83.6 77.3 87.0% 82.6 Local Firemen, Policemen or County Peace Officers Age of male member upon ' retirement Percentage to be applied to total retirement allowance - Age of female beneficiary 45 50 55 60 65 55 60 65! 75.3% 68.1 78.4% 71.5 •'63.3 • 82.0% 75.3 .67.2. 85.6% 79.6 71.8 • 84.0% ' 77:0 • Based on current interest and mortal Or assumption which are subject to change by the; Boaf6 of Adminiatm. tidn. Percentages are not applieabl to Disability Retirement. . • Option No. 2 provides for the payment of a lesser retirement allowance during the life of the retired employee, and at his death, such payments will be con- - tinned during the -remaining lifetime 'of the beneficiary. Option. No. 3'provides for the payment of a lesser retirement allowance during the lie of the retired employee and, at his death, one-half of such lesser amount - • will continue to be paid during the remainipg lifetime of the beneficiary. 14 L STATE EMPLOYEES' RETIREMENT SYSTEM '` STATE EMPLOYEES' RETIREMENT SYSTEM 15 APPROXIMATE AMOUNT OF ADDITIONAL MONTHLY RETIREMENT ALLOWANCE PROVIDED BY ADDITIONAL EMPLOYEE CONTRIBUTIONS OF $10 MADE MONTHLY Male Miscellaneous Member Age when additional contribution began Amount of additional monthly allowance* upon retirement at age 55 60 65 70 20 25 30 35 40 45 50 55 836.87 29.47 22.92 17.14 12.03 7.52 3.52 851.62 42.07 33.62 26.16 19.56 13.73 8.58 4.02 672.90 60.28 49.12 39.26 30.54 22.84 16.03 10.01 $104.48 87.36 72.23 58.86 47.05 36.60 27.37 19.21 Female Miscellaneous Member 20 $31.56 $43.79 $61.58 $88.56 25 25.23 35.68 50.91 74.05 30 19.63 28.52 41.49 61.23 35 14.68 22.19 33:16 49.90 40 10.30 16.59 25.80 39.88 45 6.43 11.65 19.29 31.03 50 3.02 7.27 13.54 23.20 55 3.41 8.46 16.29 Local Policemen, Firemen or County Peace Officers 20 $41.15 $59.90 $88.63 $134.00 25 32.89 48.81 73.29 112.05 30 25.59 39.02 59.72 92.65. 35 19.14 30.36 47.74 75.50 40 13.43 22.70 37.14 60.35 45 -8.39 15.94 27.77 46.95 50 3.94 9.96 19.50 35.11 _ 55 4.67 12.18 24.65 • Based on current Interest and mortality assumptions which are subject to change by the Board of Administra- tion. RECENT CHANGES IN THE RETIREMENT LAW Certain amendments to the Retirement Law were adopted by the Legislature in 1951 and 1953. Some apply automatically to all contracts with public agencies. Others apply only if the contracting agency amends its contract to include the new provisions. I. 1951 and 1953 Amendments Applying Automatically Work for Agencies -Retired members may engage inlimited em- ployment for a contracting agency when needed in preparation ofa lawsuit or for testifying at a trial involving the interests of the agency in matters with which the members were directly concerned. They may also serve as jurors or election board members. Computing of Service -Effective July 1, 1951,'credit for one year's service is given members rendering 215 days' service- on a per diem basis during the year. Not more than one year will be so credited in any fiscal year. Nomination of Beneficiary -The requirement that a beneficiary must be a person holding an insurable interest in the life of a member is removed. Payment Under Option No. 1-The amount payable as a lump sum under this option may also be paid in equal monthly installments for the life of the beneficiary, with 120 installments guaranteed, provided the member has chosen this plan at the time of- retirement. Refund of Contributions -Members who leave their contributions on deposit with the system when terminating agency employment may withdraw the contributions at any time provided they are not employed by the State or a contracting public agency. • Elective Officers -A retired member elected or appointed to an elective office which offers voluntary membership in the retirement system is automatically reinstated in the system. He may then elect whether (1) to become a contributing member again, (2) to withdraw his contributions and terminate membership, or (3) decline contrib- uting membership but leave his existing contributions on deposit for a future retirement income. Service With Noncontracting Agency -In case a public agency not under contract with the retirement system has its functions assumed by a contracting agency, its employees may receive credit for their agency service up to that date under these conditions: (1) They must be transferred to the contracting agency without change in occupa- tion or position, and (2) they must contribute the difference in contri- butions which would have been made had they been working for the contracting agency. - Court Service -If a court created by the Municipal and Justice Court .Act of 1949 is in a county which is a contracting agency, officers and attaches of the predecessor court may receive credit for their service in that court provided they contribute the appropriate differ- ence in contributions. 11. 1951 and 1953 Amendments Applicable Only If the Contracting Agency Amends Its Contract to Include Them Qualifying Service Credit -By paying the required contributions for the period, members may receive credit for the first six months of employment, or portion thereof, which they served in qualifying service before becoming members. Prior Service Credit -Members who lost credit for prior service because there was more than a three-year break between prior and current service receive full credit for prior 'service after they have accumulated at least 10 years of current service. Military Service -The contracting agency makes retirement con- tributions for members entering the armed services after January 1, 1950. 16 --- s'.ters: EMPLOYEES' liETIUEMENT SYSTEM •-) Base of Compensation —The average compensation on which retire- ment allowances are based is determined .by. the highest -paid three consecutive years of membership, instead of by tbe five highest -paid, as previously provided. Death Benefit —The benefit payable to the beneficiary upon death of a retired member is $400, instead. of $300 as previously provided. School Districts —Any school district may amend its present eon - tract with the system to provide that.all amendtnents to the Retirement Law, whether effective before or after the date of contract, will auto- matically amend the contract and thus be applicable to its members without further action. Separate Pay Boll —Employees who were under direction of a pub- lic agency prior to that agency's contract, but were paid from some other source, receive credit for such service the same as if it were regu- lar prior service with the agency under the name terms as employees on the agency's regular pay roll. Safety Members —A local safety member may retire, on a dis- counted allowance basis, at age 50 if he has 20 years of service. Piremen—A local fireman may retire on 50 percent of his final com- pensation at age 50 if he has 20 or more years of service credit. This provision materially increases the contribution rates of both employer and employee. Widow and Children —Upon the death of a local safety member retired for service or industrial disability, one-half of his allowance is continued to his widow until she dies or remarries. She must have been married to the member at least one year before his retirement. If there is no widow who is eligible, or if the widow dies or remarries, one-half the allowance will go to children of the deceased until they reach the age of 18. Should there be neither widow nor children who are eligible, one-half of the allowance is payable to a parent or parents if they were dependent upon the deceased. Nora --Only tbe seven changes given under Section I apply automatically. The ten changes given under Section II are not effective unless the public agency amends its contract to include them. Distributed by STATE EMPLOYEES' RETIREMENT SYSTEM 1320 K Street SACRAMENTO 14, CALIFORNIA gillli iA CALIPOINIA ITATI 1A111TIVC comes 834 8-54 toe