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Home My WebLink AboutORD 05-18 Amendment For California Public Employees Retirement SystemORDINANCE NO. 05-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF ORANGE AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. THE CITY COUNCIL OF THE CITY OF ORANGE DOES ORDAIN AS FOLLOWS: SECTION I: That an amendment to the contract between the City Council of the City of Orange and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. SECTION II: The Mayor of the City of Orange is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. SECTION III: The summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the Office of the City Clerk at least five (5) days prior to the City Council meeting at which this Ordinance is adopted. A summary of this Ordinance shall also be published once within fifteen (15) days after this Ordinance's passage in a newspaper of general circulation, published, and circulated in the City of Orange. The City Clerk shall post in the Office of the City Clerk a certified copy of the full text of such adopted Ordinance along with the names of those City Council members voting for and against the Ordinance in accordance with Government Code Section 36933. This Ordinance shall take effect thirty (30) days from and after the date of its final passage. ADOPTED this 13th day of March 2018. Teresa E. Smith, Mayor, City of Orange ATTEST: Mary E. Mu ity Clerk, City o e STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF ORANGE I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that the foregoing Ordinance was introduced at the regular meeting of the City Council held on the 13th day of February 2018, and thereafter at the regular meeting of said City Council duly held on the 13th day of March 2018, was duly passed and adopted by the following vote, to wit: AYES: COUNCILMEMBERS: Alvarez, Whitaker, Smith, Murphy, Nichols NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None Mary E. rph , City Clerk, i ange Ordinance No. 05 -18 Ca1PERS EXHIBIT California Public Employees' Retirement System AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Orange 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, 1958, and witnessed May 13, 1958, and as amended effective October 1, 1966, October 7,1971, January 16,1977, August 26,1979, April 1, 1982, July 24,1983, March 31,1985, December 31, 1989, July 23, 1991, December 7, 1997, July 1, 2000, May 20, 2001, January 1, 2002, June 29, 2003 and June 22, 2012 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 June 22, 2012, and hereby replaced by the following paragraphs numbered 1 through 16 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 classic local miscellaneous members, age 62 for new local miscellaneous members, age 50 for classic local safety members and age 57 for new local safety members. PLEASE DO NOT SIGN "EXHIBIT ONLY" 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1958 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 Califomia Public Employees' Retirement System (CaIPERS) and its trustees, agents and employees, the CaIPERS Board of Administration, and the Califomia Public Employees' Retirement Fund from any claims, demands, actions, losses, liabilities, damages, judgments, expenses and costs, including but not limited to interest, penalties and attomey 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) Any dispute, disagreement, claim, or proceeding (including without limitation arbitration, administrative hearing, or litigation) between Public Agency and its employees (or their representatives) which relates to Public Agency's election to amend this Contract to provide retirement benefits, provisions or formulas that are different than such employees' 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 Califomia Public Employees' Retirement Law. 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. Employees other than local safety members (herein referred to as local miscellaneous members). LEASE DO NOT SIGN "EXHIBIT ONLY" 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. ELECTED OFFICIALS HIRED ON OR AFTER JUNE 22, 2012. 6. The percentage of final compensation to be provided for each year of credited prior and current service for classic local miscellaneous members in employment before and not on or after June 29, 2003 shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service prior to September 30, 1971, termination of Social Security, for members whose service has been included in Federal Social Security (2% at age 55 Full and Modified). 7. The percentage of final compensation to be provided for each year of credited prior and current service for classic local miscellaneous members in employment on or after June 29, 2003 shall be determined in accordance with Section 21354.5 of said Retirement Law, subject to the reduction provided therein for service prior to September 30, 1971, termination of Social Security, for members whose service has been included in Federal Social Security (2.7% at age 55 Full and Modified). 8. The percentage of final compensation to be provided for each year of credited prior and current service as a new local miscellaneous member shall be determined in accordance with Section 7522.20 of said Retirement Law (2% at age 62 Full). 9. The percentage of final compensation to be provided for each year of credited prior and current service as a classic local safety member 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 prior and current service as a new local safety member shall be determined in accordance with Section 7522.25(d) of said Retirement Law 2.7% at age 57 Full). 11. Public Agency elected and elects to be subject to the following optional provisions: a. Sections 21624 and 21626 (Post- Retirement Survivor Allowance). b. Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members only. C. Section 20042 (One -Year Final Compensation) for classic members only. d. Section 20903 (Two Years Additional Service Credit). PLEASE DO NOT SIGN "EXHIBIT ONLY" G. Section 20516 (Employees Sharing Cost of Additional Benefits): Section 21354 (2% @ 55 Full and Modified) for local miscellaneous members. From and after December 7, 1997 and until July 1, 2000 the miscellaneous employees of Public Agency shall be assessed an additional 4% of their compensation for a total contribution rate of 11 % pursuant to Government Code Section 20516. f. Section 21024 (Military Service Credit as Public Service). g. Section 21027 (Military Service Credit for Retired Persons). h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety members only. 12. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on January 16, 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. 13. 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. 14. 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. 15. 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. 16. 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 , BOARD OF ADMINISTRATION CITY COUNCIL PUBLIC EMPLOYEES' RETIREMENT SYSTEM CITY OF ORANGE BY J ARNITA PAIGE, CHIEF PENSION CONTRACTS `PREFUNDING PROGRAMS DIVISIO` PUBLIC EMPLOYE 'RETIREMENT SYSTEM O P Xk BY PRESIDING OFFICERO : ` - 4 Witness Da t — Attest: o A3 Qo AMENDMENT CaPERS 10 /2643484567 PERS- CON -702A