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Home My WebLink AboutORD-21-97 Amend Calpers Contract 2% @ 55ORDINANCE NO, 21.97 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING THE CONTRACT BETWEEN THE CITY OF ORANGE AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO PROVIDE LOCAL MISCELLANEOUS MEMBERS THE BENEFIT OF 2% @ 55 FULL OR SUPPLEMENTAL FORMULA (4%EMPLOYEE SHARING COST OF ADDITIONAL BENEFITS)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 (4%employee sharing cost of additional benefits); and WHEREAS, the PERS actuary has indicated the cost to the City of Oralnge will be approximately $1,28 million over 20 years, which is composed of a $ 4,026,788 unfunded liability less an approximate $2.747 million savings to the City since employees are paying 4% of their salary towards the cost;NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE HEREBY ORDAINS AS FOLLOWS:SECTION I:That an amendment to the contract between the City Council of the City of Orange and the Board of Administration of the 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.SECTION II: The Mayor of the City Council is hereby authorized, empowered and directed to execute said amendment for and on behalf of the City of Orange, 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. ATTEST: l City Clerk of th 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 23m day of September, 1997, and thel"eafter at the regular meeting of said City Council duly held on the 14th day of October, 1997, was duly passed and adopted by the following vote, to wit: AYES: COUNCIL MEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ NOES: COUNCIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE ABSTAIN: COUNCIL MEMBERS NONE t ~ ') wl.M~ 6/t4/4'/1r City Clerk of th ity of Orange EXHIBIT "A" AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OFTHE CITY OF ORANGE The Board of Administration. Public Employees' Retirement System. herelllafter referred [0 as Board. and the governing body of above public agency. hereinafter referred [0 as Public Agency. having enter,ed into a contract etTective July I. 1958. and witnessed May 13. 1958. and as amended em~ctive October I. 1966. October 7.1971. January 16. 1977. August 26.1979. April I. 1982. July 24, 1983. March 31. 1985. December 31. 1989 and July 23. 1991 which provides for participation of Public Agency in said System. Board lnd Public Agency hereby agree as follows: A, Paragraphs I through 12 are hereby stricken from said contract as executed effective July 23. 1991, and hereby replaced by the following paragraphs numbered 1 through 12 inclusive: I. 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 I. 1958 making its employees as hereinafter provided, members of said System subject to all provisions of th,: 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. 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: o 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 fmal compensation to be provided for each year of credited prior and current service as a local safety member shall be determined m 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, 21626 and 21628 (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 benefit):2% 0: 55 Full and Modified formula for local miscellaneous members.From and after the effective date of this amendment to contract 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 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 futurc 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. Per covered member, $1.50 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 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 19 BOARD OF ADMlNlSTRA, TlON PUBLIC EMPLOYEES' RETlRE:YlENTSYS1H\'1CITY COLNCIL OF THE CITY OF ORANGE BY PRESIDING OFFICER BY KENNETH W, MARZION. CHIEF ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Date Attest: Clerk AMENDMENT PERS- CON-702A (Rev. 8\ 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. 13. This amendment shall be effective on the 7 ~ day of /J.Jl ~ , 19_'17.. BOARD OF ADMINISTRATION PUBLIC EMPLOYEES' RETIREMENT SYSTEM l/ BY /:.~~ i.V 10 ('tV---KENNEtH W. MARZION, CHIEF ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM DAlE: BY: 1:::77)UER .2~ /'19'7 Witness Date Attest: U4~.J Clerk 'L)?~) NOTE: The original signatures are included in Agreement No.0281. 11 I}"',;> -; OS j, II AMENDMENT PERS- CON- 702A (Rev. 8\96)