RES-9399 Amendment to Contract for Safety EmployeesRESOLUTION NO. 9399
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 Tm: 3%
@ 50 RETIREMENT PROGRAM FOR THE CITY'S
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 following is a statement of the proposed change:
To Provide Section 21362.2 (3% @ 50 Full formula) for 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 13th day of February, 2001.
1/1!. t ~
Mark 'A Murphy,
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 OIl the 13th day of
February, 2001 by the following vote:
AYES: COUNCILMEMBERS: SLATER, ALVAREZ, MAYOR MURPHY, COONTZ
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
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, December 7, 11997 and July 1,2000 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 July 1, 2000,
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 rwr SjC; .,'
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.
1 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 (Employees Sharing Cost of
Additional Benefits):2% @ 55 Full and Modified formula for
local
PLEASE DO W(}'J t.,,""~,~-"-'-"'; ~ ~_~'h_.,1 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 20516.8. 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.
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 effec~e on the day of
J BOARD
OF ADMINISTRATION./ CITY COUNCIL PUBLIC
EMPLOYEES' RETIR,~ENT SYSTEM CITY OF ORANGE . . .)'j'*
d ~_,.BY
e:
a' BY _ f~r'KENNETH W.
MARZI~CHIEF PRESIDING OF~R ACTUARIAL & EM!~
s)tER SERVICES DIVISION .~ ":I"PUBLIC EMPLOYW
RETIREMENT SYSTEM ~<;j \~t' ~~Wit~
sDate
Attest:Clerk
AMENDMENl
PERS-
CON.
702A (Rev. 8\96)