HomeMy WebLinkAboutAgenda Packet - January 29, 1996 - CC Iffignal 0 OF AZUSA /400
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Finance Dept. *213 E. Foothill Blvd *P.O. Box 1395 *Azusa, California 91702
Telephone : (818) 812-5203 *FAX(818) 334-6358
AGENDA ITEM
TO: HONORABLE MAYOR AM) MEMBERS OF THE CITY COUNCIL
FROM: GEOFF CRAIG, DIRECTOR OF FINANCE II
VIA: HENRY GARCIA, CITY ADMINISTRATOR
DATE: JANUARY 29, 1996
SUBJECT: AMENDMENT TO PUBLIC EMPLOYEES' RETIREMENT SYSTEM
CONTRACT TO RECOGNIZE MILITARY SERVICE AS CREDIT
FOR PUBLIC SERVICE
Background
As part of the negotiations which culminated in the five-year contracts with the various bargaining
units, Management agreed that the PERS Military Service Credit Purchase Plan shall be made
available to full time regular miscellaneous employees who have completed their initial probation
period with the City. After the completion of the contract amendment, eligible employees with
qualifying military service will be able to contact PERS to arrange to be billed for the service
credit. The City will pay the first 25% for ACEA employees and will offer payroll deduction.
Findings
A PERS member may elect to purchase up to four years of service credit for any continuous active
military or merchant marine service prior to employment. The member must contribute an
amount equal to the contribution for current and prior service that the employee and the employer
would have made with respect to that period of service.
The member's payment will be calculated by PERS based upon the employer's contribution rate
at the time of the member's election, and the member's compensation and contribution rate at the
first period of service with the employer after the military service. Interest on both employer and
employee contributions will be calculated from the date of membership with the current employer
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Honorable Mayor and Members of the City Council
January 29, 1996
Page 2
to date of the member's election, and included in the member cost. The member may pay for the
service in lump sum or by monthly payments not to exceed 96 months. This benefit applies only
to active members while in employment with an employer providing this benefit in its contract.
Employer Cost: No valuation required. Actual costs will emerge in future
valuations.
Member Cost: It is not uncommon for the cost to the member to exceed $5,000
for each year of military service. After the contract has been
amended, the member may obtain cost information by
contacting Member Services Division.
The City of Azusa estimates that it has approximately twenty (20) employees that might qualify
and that its cost will be approximately $25,000. Funds are budgeted in the current budget under
the allowance for collective bargaining contracts.
Recommendation
Staff recommends that Council
(a) Pass the attached Resolution of Intention to Approve an Amendment to the Contract
Between the Board of Administration of the Public Employees' Retirement System and the
City Council of the City of Azusa; and
(b) Introduce an Ordinance Authorizing an Amendment to the Contract Between the City
Council of the City of Azusa and the Board of Administration of the California Public
Employees' Retirement System; and
(c) Authorize the Mayor to sign the "Certification of Compliance with Government Code
Section 7507".
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