RES-9527 Military Service Credit Program for City EmployeesRESOLUTION NO. 9527
A
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT
TO THE CONTRACT BETWEEN THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA
PUBLIC EMPLOYEES'RETIREMENT
SYSTEM AND THE CITY COUNCIL OF
THE CITY OF ORANGE TO PROVIDE THE MILITARY
SERVICE CREDIT PROGRAM FOR THE
CITY'S ACTIVE AND RETIRED EMPLOYEES.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 SUlllIDary of the change
proposed in said contract; and WHEREAS,
the following is a statement of the proposed change:To
Provide Section 21024 (Military Service Credit as Public Service) and Section
21027 (Military Service Credit for Retired Persons) for local miscellaneous
members and local safety members.NOW,
THEREFORE, BE IT RESOLVED that the City Council of the City of Orange
does hereby give notice of intention to approve an amendment to the contract between
the City of Orange and the Board of Administration of the Public Employees'Retirement
System, a copy of said amendment being attached hereto, as Exhibit" A" and by this
reference made a part hereof.ADOPTED
this 9th day of October, 2001.J!
1lf,,1J;'Of J
ATTEST:
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
City Council of the City of Orange at a regular meeting thereof held on the 9th day of
October, 2001 by the following vote:
AYES: COUNCILMEMBERS: SLATER, ALVAREZ, MURPHY, COONTZ, CAVECCHE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS:NONE
ABSTAIN: COUNCILMEMBERS: NONE
A
CaIPERS
AMENDMENT TO CONTRACT
EXHIBIT
t...
California
Public Employees' Retirement System
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
and May 20, 2001 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 May 20, 2001, 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.
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.
PLEASE DO NOT SIGN "EXHIBIT ONLY"
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. 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:
NO ADDITIONAL EXCLUSIONS
5. The percentage of final compensation to be provided for each year of
credited prior and current service for local miscellaneous members 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).
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 21362.2 of said Retirement Law
3% at age 50 Full). 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. Sections 21624 and 21626 (Post-Retirement Survivor
Allowance).b. Section 21573 (Third Level of 1959 Survivor
Benefits).c. Section 20042 (One-Year
Final Compensation).d. Section 20903 (Two Years Additional
PLEASE
DO NOT SIGN "EXHIBIT ONLY"e.
Section 20516 (Employees Sharing Cost of Additional Benefits):2%
@ 55 Full and Modified formula for local miscellaneous members.
From
and after December 7, 1997 and until July 1, 2000 the miscellaneous
employees of Public Agency were 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), Statutes of
1976.g.
Section 21027 (Military Service Credit for Retired Persons).8.
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 20834.9.
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:c.
a.
Contributions required per covered member on account of the 1959 Survivor
Benefrts 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 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.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 payrnents
between the emplo~e and the Board. -B. This
amendment shall be effeCti~ the day of BOARD OF
ADMINISTRATION ~# CITY COUNCIL -....PUBLIC EMPLOYEES' RETIR~~
SYSTEM CITY OF ORANGE ~@ #'BY ~ BY
ol-<:
t;KENNETH W. MARZI
HIEF PRESIDING OFFI~ACTUARIAL & EMPk~ R
SERVICES DIVISION ~ Cj PUBLIC EMPLOY~ RETIREMENT
SYSTEM ~J<0 Wit~<:
tateV
Attest:Clerk
AMENDMENT
PER5-
CON-
702A (
Rev. 8\96)