RES-9249 Intention to Approve Contract Amendment with Board of Administration CalPERSRESOLUTION NO. 9249
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 0%
EMPLOYEE COST SHARING FOR THE 2% @ 55
RETIREMENT PROGRAM FOR THE CITY'S FULL
TIME AND BENEFITED PART-TIME
NON-
SAFETY 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 summary of the change proposed in said
contract; and WHEREAS, the PERS actuary has indicated the cost to the City of
Orange will be approximately $798,000, which represents a reduction in the City's
PERS surplus from $23.8 million to $23.0
million; and WHEREAS, the following is a statement of the
proposed change:To Provide Section 20516 (0% Employee Sharing Cost
of Additional Benefits) Applicable to 2% @ 55 Full and Modified Formula
for Local
Miscellaneous
Members.NOW, THEREFORE, BE IT RESOLVEH 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 25th day of April
of Orange
ATTEST:
h-<~d
Cassandra 1. Ca art, CIty Clerk of the CIty of Orange
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 25th day
of April ,2000 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ
NONE
NONE
NONE
AA'-ZCity
Clerk of the City of Orange
A
CalPERS
California
Public Employees' Retirement System
EXHIBIT
A
AMENDMENT TO
CONTRACT Between
the Board of
Administration
California Public
Enlployees' Retirement System
and the City Council City
of Orange
The Board
of Administration, Ca~
ifornia
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 and December 7, 1997 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 December 7 I 1997. and hereby
replaced by the
following
paragraphs numbered 1 through 12 inclusive:1. All
words and terms used hen~
in 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.
I\~~ -:'Ifl "'";'~'. ,." .Ii.!l.n~t I,;t./ .,'-./. ..\~-!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 local miscellaneous members for
each year of credited prior and current service 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 of said Retirement Law (2%at age 50
Full).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 Service Credit).e.
Section 20516 (Public Agency and its employees have agreed to share
the cost of the following benefits):
LE' E no f'O'" ...,..... ,'
i'P,.
f' .I\S.IJ '" 2 ~~;.j;l ";:,iH.:;.::~.,
2% @ 55 Full formula and Modified for local miscellaneous
members.
From and after December 7, 1997 and until the effective date of the
amendment to contract the miscellaneous employees of Public
Agency were assessed an additional 4% of their compensation for
a total contribution rate of 1'1 % pursuant to Government Code
Section 20516.
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 c;ontributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
fl. 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 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.
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 __ day of
BOARD .oF ADMINISTRATION
PUBLIC EMPLOYEES' RETIRlSMENT SYSTEM
r'>
I'~"
CITY COUNCIL
CITY OF ORANGE
I' ,". .'
BY .~"..\
O'
BY ~,\...,,,,,
KENNETH W. ZION, CHIEF ' PRESIDING OFA~~#'"
ACTUAFU~I MPLOYER SERVICES DIVISION ,rJ\ ~~..
PUBLIC fiMPLOYEES' RETIREMENT SYSTEM v'0 ,\:.
V
VI/itness Date
Attest
Clerk
AMENDMENT
PERS-CON-702A IRev