City of Culver City, California
Agenda Item Report
Meeting Date: 02/13/12 Item Number: A-2
CITY COUNCIL AGENDA ITEM: (1) Adoption of a Resolution of Intention to Approve
a Contract Amendment between the Public Employees’ Retirement System (PERS)
and the City of Culver City to Implement 3% at 55 Formula and Three-Year Final
Compensation for New Local Police Safety Members in the Police Officers’
Association (POA) and Police Management Group (PMG); and (2) Introduction of an
Ordinance Authorizing said Contract Amendment.
Contact Person/Dept.: Serena Wright Phone Number: 310-253-5640
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Dates:
Public Notification: (E-Mail) Agenda and Meetings – City Council (02/08/12); Culver City
Police Officers’ Association and Police Management Group (02/08/12)
Department Approval:
Serena Wright (02/08/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (02/13/12)
Chief Financial Officer Approval:
Jeff Muir (02/08/12)
City Manager Approval:
John M. Nachbar (02/09/12)
RECOMMENDATION:
Staff recommends that the City Council: (1) adopt a Resolution of Intention to
Approve a Contract Amendment between the Public Employees’ Retirement System
(PERS) and the City of Culver City to Implement 3% at 55 Formula and Three-Year
Final Compensation for New Local Police Members in the Police Officers’ Association
and Police Management Group (PMG); and (2) introduce an Ordinance authorizing
said contract amendment.
BACKGROUND:
The City Council recently approved labor agreements with the POA and PMG. In
accordance with both labor agreements, the City will create a second tier retirement
formula for all new employees hired after approval of the PERS contract
amendment. These employees shall be required to pay the entire 9% PERS
employee contribution rate, and final pension compensation shall be based on the
3% at 55 formula and highest average full-time monthly pay rate for a 3-year period.
DISCUSSION:
Both labor agreements provide for implementation of PERS Section 20475 (Different
Level of Benefits), Section 21363.1 (3% @ 55 Full Formula) and Section 20037
(Three-Year Final Compensation). PERS does not make a distinction between the City of Culver City, California
Agenda Item Report
POA and PMG bargaining units and, instead, categorizes both groups as “Local
Police Safety Plan.” Upon adoption of the contract amendment, PERS will establish
a separate, second-tier coverage group in the Local Police Safety Plan that will
apply to all new hires represented by POA and PMG.
The City must comply with specific PERS contract amendment procedures and
timelines. Before you tonight is the first reading of the Ordinance, and adoption of
the Resolution of Intention declaring City Council’s intent to amend the PERS
contract to implement a second tier of benefits for Local Police Safety Plan
Members. Upon adoption of the Resolution of Intention, pursuant to Government
Code Section 20471, the City must wait at least twenty (20) days to adopt the final
Ordinance.
Assuming the Resolution of Intention is adopted this evening, consideration of
adoption of the Ordinance will be placed on the March 12, 2012 City Council
agenda. Should the City Council adopt the Ordinance, it would become effective on
April 10, 2012, and the contract amendment would become effective April 23, 2012,
in compliance with PERS requirements.
FISCAL ANALYSIS:
Employer Contribution Rate
There will be no immediate change in the Employer Contribution Rate as a result of
the second tier being implemented. CalPERS estimates that the long-term effect of
the second tier (when all active employees are second tier) will be a 2.0% reduction
in the Employer Contribution Rate. The rate for Fiscal Year 2011/2012 is 32.506%
for Safety Employees. Based on the current year rate, the long-term reduction in the
Employer Contribution Rate for POA and PMG employees is approximately 6%. It
will take many years to achieve this.
Employee Contribution Rate
Second tier employees will pay the full 9% employee contribution. There will be
limited immediate savings from this change until a significant level of turnover
occurs.
ATTACHMENTS:
1. Resolution of Intention including Exhibit Amendment to Contract
2. Actuarial Valuation in accordance with Government Code Section 7507
3. Proposed Ordinance
City of Culver City, California
Agenda Item Report
MOTION:
That the City Council:
1. Adopt a Resolution of Intention to Approve a Contract Amendment
between the Public Employees’ Retirement System (PERS) and the City
of Culver City to Implement Three-Year Final Compensation for New Local
Fire Safety Members in the Police Officers’ Association (POA) and Police
Management Group (PMG); and,
2. Introduce an Ordinance authorizing said Contract Amendment.
MEETING DATE: 02/13/12
AGENDA ITEM: (1) Adoption of a Resolution of Intention to Approve a
Contract Amendment between the Public Employees'
Retirement System (PERS) and the City of Culver City to
Implement 3% at 55 Formula and Three-Year Final
Compensation for New Local Police Safety Members in
the Police Officers' Association (POA) and Police
Management Group (PMG); and (2) Introduction of an
Ordinance Authorizing said Contract Amendment
ATTACHMENT
Pages
1. Resolution of Intention including Exhibit Amendment to 1 —8
Contract
2. Actuarial Valuation in accordance with Government Code 9
Section 7507
10 — 17 3. Proposed Ordinance 2
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ATTACHMENT NO. 1
RESOLUTION NO. 2012-R
A RESOLUTION OF INTENTION OF THE CITY COUNCIL
OF THE CITY OF CULVER CITY, CALIFORNIA TO
APPROVE A CONTRACT AMENDMENT BETWEEN THE
PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) AND
THE CITY OF CULVER CITY TO IMPLEMENT 3% at 65 AND
THREE-YEAR FINAL COMPENSATION FOR NEW HIRES
IN THE LOCAL POLICE SAFETY PLAN (POLICE
OFFICERS' ASSOCIATION AND POLICE MANAGEMENT
GROUP).
WHEREAS, the Public Employees' Retirement Law permits the
participation of public agencies and their employees in the Public Employees'
Retirement System (PERS) by the execution of a contract, and sets forth the procedure
by which public agencies may elect to subject themselves and their employees to
amendments to the Law; and
WHEREAS, one of the steps in the procedures to amend this contract is
the adoption of a resolution by the governing body of the public agency, 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 the
contract between the City of Culver City and the Board of Administration of PERS:
To provide Section 20475 (Different Level of Benefits).
Section 21363.1 (3% at 55) and Section 20037
(Three-Year Final Compensation) are applicable to
local police members entering membership for the first
time in the police classification after the effective date
of this amendment to contract.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City
of Culver City, California, does hereby give notice of intention to approve an
amendment to the contract between the City of Culver City and the Board of APP
AROL A. SCHWAB
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Administration of PIERS, a copy of said amendment being attached hereto, as Exhibit
"A" and incorporated herein by this reference.
APPROVED and ADOPTED this day of , 2012.
MICHEAL O'LEARY, Mayor
City of Culver City, California
ATTEST:
MARTIN R. COLE
City Clerk Li City Attorney CalPERS
EXHIBIT
California
Public Employees' Retirement System
<40.
AMENDMENT TO CONTRACT
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Culver City
*0-
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 August 1, 1945, and witnessed
August 9, 1945, and as amended effective October 1, 1947, November 1, 1951, June 1, 1954,
January 1, 1960, July 1, 1960, June 1, 1963, December 4, 1967, January 1, 1972, January 1,
1973, August 1, 1973, September 28, 1973, July 4, 1977, October 20, 1980, June 29, 1981,
October 14, 1992, July 14, 1994, August 12, 1997, July 6, 1998, November 5, 1999,
November 20, 2000, June 17, 2002, July 1, 2002, June 28, 2004, January 22, 2007 and
December 19, 2011 which provides for participation of Public Agency in said System, Board
and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed effective
December 19, 2011, and hereby replaced by the following paragraphs numbered 1
through 18 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 entering membership in the miscellaneous classification
on or prior to December 19, 2011, age 60 for local miscellaneous members
entering membership for the first time in the miscellaneous classification after
December 19, 2011, age 50 for local police members entering membership in the
police classification on or prior to the effective date of this amendment to
contract, age 55 for local fire members and for those local police members
entering membership for the first time in the police classification after the
effective date of this amendment to contract.
3 F
2. Public Agency shall participate in the Public Employees' Retirement System from
and after August 1, 1945 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 (CalPERS) and its trustees, agents and
employees, the CalPERS 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 attorneys 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 or formulas provided under the Public Agency's
prior non-CalPERS retirement program.
(b) Public Agency's election to amend this Contract to provide retirement
benefits, provisions or formulas that are different than existing
retirement benefits, provisions or formulas.
Public Agency's agreement with a third party other than CalPERS to
provide retirement benefits, provisions, or formulas that are different
than the retirement benefits, provisions or formulas provided under this
Contract and provided for under the California Public Employees'
Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to section
365, of Title ii, of the United States Bankruptcy Code or any similar
provision of law.
Public Agency's election to assign this Contract without the prior
written consent of the CalPERS' Board of Administration.
(f) The termination of this Contract either voluntarily by request of Public
Agency or involuntarily pursuant to the Public Employees' Retirement
Law.
(c)
(e)
(g) Changes sponsored by Public Agency in existing retirement benefits,
provisions or formulas made as a result of amendments, additions or
deletions to California statute or to the California Constitution.
LA r-
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:
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. AUDITORIUM HELPERS; CROSSING GUARDS; RECREATION
LEADERS; LIFEGUARDS; LOCKER ROOM ATTENDANTS; AND
CASHIERS HIRED ON OR AFTER AUGUST 2, 1973.
6. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 superseded
this contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January 1,
1975. Legislation repealed and replaced said Section with Government Code
Section 20305 effective July 1, 1994.
7. The percentage of final compensation to be provided for each year of credited
prior and current service for local miscellaneous members in employment before
and not on or after July 1, 2002 shall be determined in accordance with Section
21354 of said Retirement Law, subject to the reduction provided therein for
service on and after January 1, 1956, the effective date of Social Security
coverage, for members whose service has been included in Federal Social
Security (2% at age 55 Full and Modified).
8. The percentage of final compensation to be provided for each year of credited
prior and current service for local miscellaneous members in employment on or
after July 1, 2002 and not entering membership for the first time in the
miscellaneous classification after December 19, 2011 shall be determined in
accordance with Section 21354.4 of said Retirement Law, subject to the
reduction provided therein for service on and after January 1, 1956, the effective
date of Social Security coverage, for members whose service has been included
in Federal Social Security (2.5% at age 55 Full and Modified). r: n
9. The percentage of final compensation to be provided for each year of credited
current service as a local miscellaneous member entering membership for the
first time in the miscellaneous classification after December 19, 2011 shall be
determined in accordance with Section 21353 of said Retirement Law subject to
the reduction provided therein for Federal Social Security (2% at age 60
Modified).
10. The percentage of final compensation to be provided for each year of credited
prior and current service as a local police member entering membership in the
police classification on or prior to the effective date of this amendment to contract
shall be determined in accordance with Section 21362_2 of said Retirement Law
(3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of credited
current service as a local police member entering membership for the first time in
the police classification after the effective date of this amendment to contract
shall be determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
12. The percentage of final compensation to be provided for each year of credited
prior and current service as a local fire member shall be determined in
accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full).
13. Public Agency elected and elects to be subject to the following optional
provisions:
a. Section 21571 (Basic Level of 1959 Survivor Benefits) for local
miscellaneous members only.
b. Section 20425 ("Local Police Officer" shall include employees of a police
department who were employed to perform identification or
communication duties on August 4, 1972 and who elected to be local
safety members).
c. Sections 21624 and 21626 (Post-Retirement Survivor Allowance) for local
safety members only.
d. Section 21317 (One-Time 15% Increase for Certain Local Safety
Members Who Retired for Service Retirement). Legislation repealed said
Section effective January 1, 2002.
e. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971). Legislation repealed
said Section effective January 1, 2002.
f. Section 20903 (Two Years Additional Service Credit).
Section 21548 (Pre-Retirement Option 2W Death Benefit). g.
cc. TV F, 01-r „, t
11131
h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety
- members only.
Section 20042 (One-Year Final Compensation) for those local
miscellaneous members entering membership on or prior to December 19,
2011 and those local safety members entering membership on or prior to
the effective date of this amendment to contract.
Section 21024 (Military Service Credit as Public Service).
k. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60
Modified formula) and Section 20037 (Three-Year Final Compensation)
are applicable to local miscellaneous members entering membership for
the first time in the miscellaneous classification after December 19, 2011.
Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three-Year
Final Compensation) are applicable to local police members entering
membership for the first time in the police classification after the effective
date of this amendment to contract.
Section 20037 (Three-Year Final Compensation) is applicable to local fire
members entering membership for the first time in the fire classification
after the effective date of this amendment to contract.
14. Public Agency, in accordance with Government Code Section 20790, ceased to
be an "employer" for purposes of Section 20834 effective on October 20, 1980.
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.
15. 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.
16. 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 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.
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.
J. _ day of
Witness Date
1.:;)
Attest:
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.
17. 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,
18. 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
n s t,
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY
KAREN DE FRANK, CHIEF
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY COVJWItl
CITWOWCOLVER CITY
PRESIDING OFFICER
Clerk
AMENDMENT CalPERS ID #5061097655
PERS-CON-702A
3 ATTACHMENT NO. 2
CalPERS
California Public Employees' Retirement System
Actuarial Office
P.O. Box 942709
Sacramento, CA 95812-1494
TTY: (877) 249-7442
(888) 225-7377 phone • (916) 795-2744 fax
WWW.caipers.ca.gov
December 08, 2011
CALPERS ID: 5061097655
Employer Name: CITY OF CULVER CITY
Rate Plan: SAFETY PLAN
Re: New Second Tier for Safety Police Employees (Section 20475: Different Level of Benefits Provided for New
Employees, Section 21363.1: 3% @ 55 Full Formula and Section 20037: Three-Year Final Compensation)
Dear Requestor:
As requested, employer contribution rate information on your proposed second tier follows.
If you are aware of others interested in this information (i.e. payroll staff, county court employees,
port districts, etc.), please inform them.
The information is based on the most recent annual valuation and is good until the completion of the next annual
valuation, that is, the annual valuation as of June 30, 2011. If your agency has not taken action to amend its
contract and we have already completed the June 30, 2011 annual valuation report, you must contact the
Retirement Contract Services Unit for an updated cost analysis.
If the employee contribution rate changes, that change would take place immediately. There will be no
immediate employer contribution rate impact from this amendment. Ultimately, though, your employer normal cost
will decrease. If the mix of active member entry ages were the same for both the current continuing first tier
employees and the new second tier employees, the decrease in the employer rate would be 2.0%.
The employer rate reduction will occur gradually, beginning on July 1, 2014, if there are second tier employees hired
on or before June 30, 2012. For fiscal years 2014/2015 and beyond, the projected annual amount of rate reduction
you can expect from introducing a second tier is approximately equal to the ratio of your second tier annual payroll
to your total plan annual payroll two and a half years earlier. For example if 1/10 of your Safety Plan members were
in second tier on June 30, 2012 and the ultimate expected normal cost decrease was 2.0%, the cumulative rate
reduction you can expect by the 2014/2015 fiscal year would be 1/10 x 2.0% = 0.20%.
To initiate an amendment to the contract, please follow the Contract Amendment Request process on MyCalPERS
with our Retirement Contract Services Unit, indicating your wish to contract for Section 20475 (Different Level of
Benefits) and identifying the group(s) to which the benefit reduction applies.
In sections 20463 (b) and (c), the California Public Employees' Retirement Law requires the governing body of a
public agency within five days of receipt of the contract amendment cost analysis, to provide each employee
organization with a copy of the analysis. If this cost analysis was requested by an employee organization, the
employee organization is also required within five days of receipt of the analysis, to provide a copy of the anaiysis to
the public agency.
If you have questions, please call (888) CalPERS (225-7377).
14-1-16-1,
KUNG-PEI HWANG, ASA, MAAA
Senior Pension Actuary, CalPERS
California Public Employee's Retirement System
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ATTACHMENT NO. 3
ORDINANCE NO. 2012-
AN ORDINANCE OF THE CITY OF CULVER CITY,
CALIFORNIA, AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE CITY OF CULVER CITY AND THE
BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM (Local Police Safety Plan
Members)
NOW, THEREFORE, the City Council of the City of Culver City, California,
DOES HEREBY ORDAIN as follows:
SECTION 1. That an amendment to the contract between the City Council of
the City of Culver City and the Board of Administration of the California Public Employees'
Retirement System (PERS) is hereby authorized, effective April 23, 2012, a copy of said
amendment being attached hereto as Exhibit "A" and incorporated herein by this reference
as though set forth in full.
SECTION 2. The City Council of the City of Culver City is hereby authorized,
empowered, and directed to execute said amendment on behalf of the City of Culver City.
SECTION 3. Pursuant to Section 619 of the City Charter, this Ordinance
shall take effect thirty (30) days after the date of its adoption. Pursuant to Sections 616
and 621 of the City Charter, prior to the expiration of fifteen (15) days after the adoption,
the City Clerk shall cause this Ordinance, or a summary thereof, to be published in the
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Culver City News and shall post this Ordinance or a summary thereof in at least three
places within the City.
APPROVED and ADOPTED this day of , 2012.
MICHEAL O'LEARY, Mayor
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
MARTIN R. COLE, City Clerk CAROL A. SCHWAB, City Attorney
-2- k
GOERS
EXHIBIT
California
Public Employees' Retirement System
• IliiilifillINI0111111NOligg......S..211S._
AMENDMENT TO OCHNITRALV
Between the
Board of Administration
California Public Employees' Retirement System
and the
City Council
City of Culver City
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 August 1, 1945, and witnessed
August 9, 1945, and as amended effective October 1, 1947, November 1, 1951, June 1, 1954,
January 1, 1960, July 1, 1960, June 1, 1963, December 4, 1967, January 1, 1972, January 1,
1973, August 1, 1973, September 28, 1973, July 4, 1977, October 20, 1980, June 29, 1981,
October 14, 1992, July 14, 1994, August 12, 1997, July 6, 1998, November 5, 1999,
November 20, 2000, June 17, 2002, July 1, 2002, June 28, 2004, January 22, 2007 and
December 19, 2011 which provides for participation of Public Agency in said System, Board
and Public Agency hereby agree as follows:
A. Paragraphs 1 through 17 are hereby stricken from said contract as executed effective
December 19, 2011, and hereby replaced by the following paragraphs numbered 1
through 18 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 entering membership in the miscellaneous classification
on or prior to December 19, 2011, age 60 for local miscellaneous members
entering membership for the first time in the miscellaneous classification after
December 19, 2011, age 50 for local police members entering membership in the
police classification on or prior to the effective date of this amendment to
contract, age 55 for local fire members and for those local police members
entering membership for the first time in the police classification after the
effective date of this amendment to contract.
/.1 PLEASE., DO
2. Public Agency shall participate in the Public Employees' Retirement System from
and after August 1, 1945 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 (CalPERS) and its trustees, agents and
employees, the CalPERS 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 attorneys 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 or formulas provided under the Public Agency's
prior non-CalPERS retirement program.
(b) Public Agency's election to amend this Contract to provide retirement
benefits, provisions or formulas that are different than existing
retirement benefits, provisions or formulas.
(c) Public Agency's agreement with a third party other than CalPERS to
provide retirement benefits, provisions, or formulas that are different
than the retirement benefits, provisions or formulas provided under this
Contract and provided for under the California Public Employees'
Retirement Law.
(d) Public Agency's election to file for bankruptcy under Chapter 9
(commencing with section 901) of Title 11 of the United States
Bankruptcy Code and/or Public Agency's election to reject this
Contract with the CalPERS Board of Administration pursuant to section
365, of Title 11, of the United States Bankruptcy Code or any similar
provision of law.
(e) Public Agency's election to assign this Contract without the prior
written consent of the CalPERS' Board of Administration.
(1) The termination of this Contract either voluntarily by request of Public
Agency or involuntarily pursuant to the Public Employees' Retirement
Law.
(g) Changes sponsored by Public Agency in existing retirement benefits,
provisions or formulas made as a result of amendments, additions or
deletions to California statute or to the California Constitution.
/3 PLE4\SE DO NOT Si(
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:
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. AUDITORIUM HELPERS; CROSSING GUARDS; RECREATION
LEADERS; LIFEGUARDS; LOCKER ROOM ATTENDANTS; AND
CASHIERS HIRED ON OR AFTER AUGUST 2, 1973.
6. Prior to January 1, 1975, those members who were hired by Public Agency on a
temporary and/or seasonal basis not to exceed 6 months were excluded from
PERS membership by contract. Government Code Section 20336 superseded
this contract provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January 1,
1975. Legislation repealed and replaced said Section with Government Code
Section 20305 effective July 1, 1994.
7. The percentage of final compensation to be provided for each year of credited
prior and current service for local miscellaneous members in employment before
and not on or after July 1, 2002 shall be determined in accordance with Section
21354 of said Retirement Law, subject to the reduction provided therein for
service on and after January 1, 1956, the effective date of Social Security
coverage, for members whose service has been included in Federal Social
Security (2% at age 55 Full and Modified).
8. The percentage of final compensation to be provided for each year of credited
prior and current service for local miscellaneous members in employment on or
after July 1, 2002 and not entering membership for the first time in the
miscellaneous classification after December 19, 2011 shall be determined in
accordance with Section 21354.4 of said Retirement Law, subject to the
reduction provided therein for service on and after January 1, 1956, the effective
date of Social Security coverage, for members whose service has been included
in Federal Social Security (2.5% at age 55 Full and Modified). PLEASE DO NOT Si
9. The percentage of final compensation to be provided for each year of credited
current service as a local miscellaneous member entering membership for the
first time in the miscellaneous classification after December 19, 2011 shall be
determined in accordance with Section 21353 of said Retirement Law subject to
the reduction provided therein for Federal Social Security (2% at age 60
Modified).
10. The percentage of final compensation to be provided for each year of credited
prior and current service as a local police member entering membership in the
police classification on or prior to the effective date of this amendment to contract
shall be determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
11. The percentage of final compensation to be provided for each year of credited
current service as a local police member entering membership for the first time in
the police classification after the effective date of this amendment to contract
shall be determined in accordance with Section 21363.1 of said Retirement Law
(3% at age 55 Full).
12. The percentage of final compensation to be provided for each year of credited
prior and current service as a local fire member shall be determined in
accordance with Section 21363.1 of said Retirement Law (3% at age 55 Full).
13. Public Agency elected , and elects to be subject to the following optional
provisions:
a. Section 21 .571 (Basic Level of 1959 Survivor Benefits) for local
miscellaneous members only.
b. Section 20425 ("Local Police Officer" shall include employees of a police
department who were employed to perform identification or
communicafiOn . duties On August 4, 1972 and who elected to be local
safety members)_
c. Sections 21624 and 21626 (Post-Retirement Survivor Allowance) for local
safety members only.
d. Section 21317 (One-Time 15% Increase for Certain Local Safety
Members Who Retired for Service Retirement). Legislation repealed said
Section effective January 1, 2002.
e. Section 21319 (One-Time 15% Increase for Local Miscellaneous
Members Who Retired or Died Prior to July 1, 1971). Legislation repealed
said Section effective January 1, 2002.
f. Section 20903 (Two Years Additional Service Credit).
Section 21548 (Pre-Retirement Option 2W Death Benefit).
9.
/5 iE DO NOT SIGN "EXHIBIT ONLY"
h. Section 21574 (Fourth Level of 1959 Survivor Benefits) for local safety
members only.
Section 20042 (One-Year Final Compensation) for those local
miscellaneous members entering membership on or prior to December 19,
2011 and those local safety members entering membership on or prior to
the effective date of this amendment to contract.
Section 21024 (Military Service Credit as Public Service).
k. Section 20475 (Different Level of Benefits). Section 21353 (2% @ 60
Modified formula) and Section 20037 (Three-Year Final Compensation)
are applicable to local miscellaneous members entering membership for
the first time in the miscellaneous classification after December 19, 2011.
Section 21363.1 (3% @ 55 Full formula) and Section 20037 (Three-Year
Final Compensation) are applicable to local police members entering
membership for the first time in the police classification after the effective
date of this amendment to contract.
Section 20037 (Three-Year Final Compensation) is applicable to local fire
members entering membership for the first time in the fire classification
after the effective date of this amendment to contract.
14. Public Agency, in accordance with Government Code Section 20790, ceased to
be an "employer"' for purposes of Section 20834 effective on October 20, 1980.
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.
15.
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.
16. 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 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.
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.
I. B. This amendment shall be effective on the _ day of
Witness Date
Attest:
Clerk
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.
17. 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.
18. 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.
0,1 C;.S
4 10.0'
BOARD OF ADMINISTRATION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BY çA,. BY
KAREN DE FRANK, CHIEF PRESIDING OFFICER
CUSTOMER ACCOUNT SERVICES DIVISION
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CITY C
CITYJWCOLVER CITY
AMENDMENT Ca IPERS ID #5061097655
PERS-CON-702A
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