HomeMy WebLinkAboutORD-08-00 Amend Cal PERS Contract 0% Employee Cost Sharing for 2% @ 55 RetirementORDINANCE NO. 8-
00
I"""AN ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF ORANGE AMENDING THE
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION
OF THE CALIFORNIA PUBLIC
EMPLOYEES'RETIREMENT SYSTEM AND THE CITY
OF ORANGE TO PROVIDE 0% EMPLOYEE
COST SHARING FOR THE 2% @ SS
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, the City of Orange desires to amend its
contract pursuant to Government Code Section 20516, to provide local miscellaneous members
the benefit of 2% of pay at age 55 for each year of service credited with the City (
0% employee sharing cost of
additional benefits); 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;NOW, THEREFORE, THE CITY COUNCIL OF THE
CITY OF ORANGE HEREBY
ORDAINS AS
FOLLOWS:
SECTION I:t"'"That 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 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 II:The Mayor of the City Council is hereby authorized, empowered
and directed to execute said amendment for and on behalf ofthe
SECTION III:
A 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 to be adopted. A summary _
of this Ordinance shall also be published once within (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 23rd day of May ,2000.
ATTEST:
in Cassan a J. Cathcart, City Clerk of the City of Or . ge
STATE OF CALIFORNIA)
COUNTY OF ORANGE )
CITY OF ORANGE )
I, CASSANDRA J. CATHCART, 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 25th day of April , 2000, and thereafter at the
regular meeting of said City Council duly held on the ...2.3.I:d. day of May
2000, was duly passed and adopted by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS: NONE
l
1V'<< . (~
CikJ _cassan~
athc. City Clerk of the i~
A
CalPERS
California
Public Employees' Retirement System
EXHIBIT
A
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 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, 1997, 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,1'"'"
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,
l "!\"~ ':)r -"f'- ,."'.,I
t.
lI.;.flij&; 'I"'~ i ,'~I. ,.1....'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
F ulJ),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):
E 0 f'OT ,., I 1" "-' " "p,! ; , '. .
EAS '
0 II ~i\Jd ~,\L'i';:'"2% @
55 Full formula and Modified for local miscellaneous members.t""'"
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 11 % 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
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 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,
1 L:. 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' RETIReMENT SYSTEM i ~~
CITY
COUNCIL
CITY OF
ORANGE BY "~\ BY"~"':""
KENNETH
W.
ZION, CHIEF
PRESIDING OF~~Fr ACTUARI~ MPLOYER SERVICES DIVISION ....~\ ~
PUBLIC Q'MPLOYEES' RETIREMENT
SYSTEM -Vr::.;\':'V;.~\.Witness Date Attest:
Clerk
AMENDMENT PERS-
CON-
702A
iRev
8\
961