ORD 10-20 Contract Amendment California Public Employees' Retirement SystemORDINANCE NO. 10-20
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 of the 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 the City.
SECTION III:
The City Clerk is hereby directed to certify the adoption of this Ordinance and cause the
same to be published as required by law. This Ordinance shall take effect thirty (30) days from
and after the date of its final passage.
ADOPTED this 12th day of May 2020.
Mark A. Wurphy, Mayor, City o r ge
ATTEST:
Pamela Coleman, City Clerk, City of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ORANGE )
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify
that the foregoing Ordinance was introduced at the regular meeting of said City Council duly held
on the 12th day of May 2020, was duly passed and adopted by the following vote, to wit:
AYES: COUNCILMEMBERS: Alvarez, Murphy, Nichols, Monaco
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Pamela Coleman, City Clerk, City of Or ge
i
Ordinance No. 10-20 2
CaIPERS
California Public Employees' Retirement System
Financial Office I Pension Contracts and Prefunding Programs Division
P.O. Box 942703, Sacramento, CA 94229-2703
888 CalPERS (or 888-225-7377) 1 TTy: (877) 249-7442 1 w .calPers.cx.gov
CERTIFICATION
OF
FINAL ACTION OF GOVERNING BODY
I hereby certify that the
considered and adopted on
Citv Council
governing body)
City of Orange
public agency)
of the
12 2020 , by an affirmative vote of a
date)
majority of the members of said Governing Body, Ordinance Resolution No. 10-20
approving the attached contractual agreement between the Governing Body of said Agency and
the Board of Administration of the California Public Employees' Retirement System, a certified
copy of said rdinance / Resolution in the form furnished by said Board of Administration being
attached hereto.
Adoption of the retirement benefit increase/change was not placed on the consent calendar.
Clerk/Secretary
C+• Gies `-
Title
Date 5 1 a a O
PERS-CONS (Rev. 1131/19)
AGR-oaB: t8
CaIPERS
California
Public Employees' Retirement System
f\\Ill \III) \ll I \_ I _ I _\_I _I:' - \
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, 2062, June 29,.2003, June 22, 2012 and April 15, 2018 which provides for
participation of Public Agency,irrsaid-System, Board and Public -Agency hereby agree as
follows:
A. Paragraphs 1 through 16 are hereby stricken from said contract as executed
effective April 15, 2018, and hereby replaced by the following paragraphs
numbered 1 through 16 inclusive:
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.
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 California
Public Employees' Retirement System (CaIPERS) and its trustees, agents
and employees, the CaIPERS Board of Administration, and the California
Public Employees' Retirement Fund from any claims, demands, actions,
losses, liabilities, damages, judgments, expenses and costs, including but
not limited to interest, penalties and attorney 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 orformulas 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 underthis Contract and provided for underthe California
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).
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).
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).
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 20042 (One -Year Final Compensation) for classic members
only.
C. Section 20903 (Two Years Additional Service Credit).
d. 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.
e. Section 21024 (Military Service Credit as Public Service).
f. Section 21027 (Military Service Credit for Retired Persons)
g. Section 21574 (Fourth Level of 1959 Survivor Benefits).
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.